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Bloomin' Brands Inc. plans to sell its 28-unit upscale concept Roy's Restaurant, the company said Tuesday, after deciding the brand would get more attention under new owners.
"The brand is a small part of our portfolio," CEO Elizabeth Smith said during a call Tuesday discussing third-quarter earnings. "It's not a priority for investment. Roy's deserves to be in a situation where it can get the time, attention and resources it needs to grow. We're confident that it can thrive under new ownership."
Bloomin' Brands' decision to sell Roy's comes amid mounting pressure on restaurant companies to spin off assets, such as additional restaurant brands, food companies or real estate.
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Roy's, founded in Hawaii in 1988 by James Beard Award winner Roy Yamaguchi, was easily the smallest of the concepts in Bloomin's portfolio. The company has long talked about its "Core Four" brands, leaving Roy's out of the loop.
"Roy's is not too much of a surprise that it would do better outside the portfolio," Smith said.
Smith defended the company's decision to keep its other four concepts. While she said each of its brands must "earn...