US restaurant holding company Bloomin’ Brands, the parent company of Outback Steakhouse and other restaurant brands, has announced the closure of 41 stores in the upcoming quarter.

The decision was made in the fourth quarter of 2023 and targets predominantly older, underperforming restaurants.

The move will see the closure of five Aussie Grill locations, three in the US and two in overseas markets.

Bloomin’ Brands has recognised asset impairments and net closure charges amounting to $32.3m during the fourth quarter of 2023.

The closures are expected to incur additional charges of between $8m and $11m.

Despite the closures, Bloomin’ Brands has a target to open 40 to 45 new system-wide restaurants in 2024.

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The company reported a net income of $43.27m for the fourth quarter ended 31 December 2023, a decrease from $58.04m reported in the same period of 2022.

Its revenue rose 9% to $1.19bn from $1.09bn in the previous year.

However, its generally accepted accounting principles operating income margin declined to 4.8% from 7.7%.

The company’s US comparable restaurant sales showed a marginal increase of 0.2%. This included contributions from Outback Steakhouse at 0.3%, Carrabba’s Italian Grill at 2.5%, Bonefish Grill at 3.0% and Fleming’s Prime Steakhouse & Wine Bar at 0.3%.

Bloomin’ Brands CEO David Deno said: “The fourth quarter was a good finish to 2023, especially the holiday season. As we head into 2024, we remain focused on elevating the guest experience that in turn will drive sales and profit growth at Outback Steakhouse and all of our brands.”