It's "check, please" time at OSI Restaurant Partners
It's sad to see OSI go private so quickly after rival Lone Star Steakhouse did likewise. Both companies made restaurant stocks exciting in the early 1990s, blazing a trail with their attractively priced chophouse concepts. But growth-stock investors moved away years ago, as the chains approached maturity. So it's fitting that our vulture-happy Inside Value newsletter service ultimately recommended OSI.
As a credit to the value investing team, several steakhouse chains such as Lone Star, Roadhouse Grill, and Smith & Wollensky
But OSI didn't surrender quietly. When your flagship menu items have names like Thunder Down Under and the Bloomin' Onion, you don't exactly go out without a fight. The consortium of investors taking the company public had to sweeten its original $40 a share deal to get the acquisition approved.
OSI's exit leaves few steakhouses publicly traded. RARE Hospitality
I'd be surprised if another buyout or two didn't happen before the end of the year. When private equity is hungry, it begs to be fed.
Longtime Fool contributor Rick Munarriz is fan of a good steakhouse. Or a bad steakhouse, for that matter. He does not own shares in any of the companies in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.