In OSI's case, Pirate is asking for three things.

First, Pirate is encouraging OSI to establish a special committee of the board of directors to devise a plan for shareholder value initiatives. In the response to this, the board said one of its primary goals for OSI is for its shareholders to see greater returns. So in this respect, OSI is open to any constructive ideas Pirate might have in mind.

Second, Pirate proposed spinning off some of OSI's most profitable restaurant chains, such as Carrabba's, Bonefish Grill and Fleming's, that have strong growth potential.

Finally, Pirate urges OSI to cease domestic new-unit growth of Outback and other fledgling concepts. The Outback Steakhouse chains' low earnings have caused OSI to "deteriorate to approximately 11%, or an estimated 300 basis points below the casual dining sector average."

At the end of this filing, Pirate Capital LLC requested a meeting with OSI Chairman Chris Sullivan to find ways to unlock the value in its shares. OSI CEO Bill Allen announced that the company may begin selling some of its real estate. It did not describe what it would do with this potential capital gain, but OSI could possibly use this to buy back some of the company stock.

I like the restaurant space, Pirate has a great track record, and Buffett is a believer in the company as well. The fact that I do not like their steak has no bearing on the fact that I believe the stock is heading back to $45 or higher by year-end.

Here's some additional information:

• Income Statement of quarterly period ended March 31, 2006.
• Reports on the four-week period ended May 27, 2006.
• Reports on the four-week period ended April 29, 2006.