Bloomin’ Brands Stock Soars as Activist Investor Steps In

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Bursting onto the scene in an explosive fashion, Bloomin’ Brands, the hospitality titan behind cherished chains such as Outback Steakhouse, Carrabba’s Italian Grill, and Bonefish Grill, has seen its stock leap by an impressive 11% this week. The surge arrived on the heels of the news that activist investor Starboard Value has snapped up a 10% stake in the company, a move that has clearly piqued the interest of investors. Starboard’s proven track record, boasting successful overhauls of Papa Johns and Darden Restaurants, has sent ripples of optimism through the market, signaling a potentially prosperous future for Bloomin’ Brands.

In stark contrast, the embattled coworking giant WeWork is teetering on the brink of bankruptcy, its stock closing the week down by a staggering 38%. The company has announced a drastic 1-for-40 reverse stock split in response to the New York Stock Exchange’s notice on its low trading, a desperate bid to salvage a stock that has languished below the one dollar mark for an extended 30-day stretch. The precarious situation represents another blow to WeWork, which continues to grapple with a series of financial setbacks.

The Market Roundup: Bloomin’ Brands, WeWork, PayPal, Auto Workers, and Coinbase

Bloomin’ Brands Surges on Starboard’s Investment

Stock of Bloomin’ Brands, the parent company of popular restaurant chains like Outback Steakhouse, Carrabba’s Italian Grill, and Bonefish Grill, saw a significant rise last Friday. The spur? Activist investor Starboard Value acquired a 10 percent stake in the company. This move has sparked keen interest from investors, given Starboard’s successful track record of overhauling Papa Johns and Darden Restaurants. With Bloomin’ Brands posting a profit in Q2, the week ended on a high note with the company’s stock up by 11 percent.

WeWork Announces Reverse Stock Split

If you’ve been following WeWork’s story, you’ll know the company is teetering on the brink of bankruptcy. In a recent development, WeWork announced a 1-for-40 reverse stock split following a notice from the New York Stock Exchange about the company’s low trading volume. This move comes after the stock’s average closing price fell below a dollar over a 30-day stretch. The week closed with WeWork’s stock down by a staggering 38 percent.

PayPal’s Leadership Transition

In a major corporate reshuffle, PayPal announced the appointment of Alex Chriss, formerly of Intuit, as its new president and CEO. Chriss will join the board in September and will assume his new role at the helm of the digital payments behemoth at the end of the year, following the retirement of CEO Dan Schuman. This news, however, didn’t seem to please investors much, with PayPal’s stock ending the week down by 4 percent.

Auto Workers’ Potential Strike Vote

In labor news, nearly 150,000 auto workers are set to vote next week on whether to authorize a strike. The United Auto Workers union is pushing to negotiate a new contract with automakers, but negotiations have been slow, with less than a month remaining before the current deals with key players like GM, Ford, and Stellanis expire.

Coinbase Gets Green Light for Crypto Futures

Despite being sued by the SEC earlier this summer for operating like an unregistered securities exchange, Coinbase announced that it has obtained approval from the National Futures Association to trade crypto futures. This announcement sent the stock of the largest crypto exchange in the U.S. soaring, however, it still ended the week down by 8 percent.


This week’s market stories underscore the dynamic nature of business. From significant investments in Bloomin’ Brands to leadership changes at PayPal, the market is always in flux. The potential strike by auto workers could disrupt the auto industry, while Coinbase’s entry into crypto futures trading may shape the future of crypto exchanges. Meanwhile, WeWork’s struggle for survival serves as a reminder of the harsh realities of business failure.

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