Outback Steakhouse (OSI) Really Going Back to Basics

Implications: OSI came under fire from Pirate Capital LLC to force the company to sell some of fast growing chains owned by the company.  The company fought off that company. 

OSI announces it is now going private.

The three originals founders are part of the buyout team.

Analysis: In the past couple of years,  chain restaurants have been pursued by various private funding sources with the strategy to spin-off subsidiaries, sell real estate, etc.

Other public chains have decided to take their companies private due to the pressures of public reporting and the market. 

The buyout group including two large funding sources that have experience in this food industry have joined with the three original founders of Outback Steakhouse. 

This is a very positive move for the company. The return of the original founders coupled with a war chest provides a real "back to basics for the company".   This buyout group is sending a signal to the industry that it will be in control of its own future by maintaining growth in the faster growing sector while re-focus is placed on the core brand. 
It is obvious that the focus is long-term by design and the fact that the major players have the largest stakes in the success.