Bloomin' Brands Restaurant Margin Squeeze & Guidance Cut Lowers Stock By 22%

Bloomin’ Brands, Inc. BLMN shares are trading lower on Wednesday.

The company reported second-quarter adjusted earnings per share of $0.33, beating the analyst consensus estimate of $0.27. Quarterly sales of $1.002 billion (+0.3% year over year) outpaced the Street view of $975.04 million.

Restaurant sales in the quarter under review increased to $984.771 million, compared with $977.779 million a year ago.

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Franchise and other revenues decreased to $17.595 million from $21.590 million.

Adjusted operating income margin in the quarter under review contracted to 3.5% from 6% in the year-ago period. Adjusted restaurant-level operating margin contracted to 12% from 14% in the year-ago period.

The restaurant-level operating margin declined from the year-ago period mainly because labor, commodity, and operating costs rose sharply due to inflation.

Insurance expenses also increased, further pressuring margins. Additionally, an unfavorable product cost mix weighed on overall profitability.

The company exited the quarter with cash and equivalents worth $50.308 million, lower than $70.056 million as of December 2024.

The total number of company-owned restaurants system-wide at the end of the quarter was $985 million, up from $980 million as of March 30, 2025.

Dividend: On July 23, the firm declared a quarterly cash dividend of 15 cents per share, payable on September 3, to stockholders of record at the close of business on August 19.

Outlook: Bloomin Brands lowered its FY25 adjusted EPS guidance to $1.00–$1.10 from a prior range of $1.20–$1.40. This updated outlook trails the analyst consensus of $1.21.

Bloomin Brands forecasts third-quarter adjusted EPS of $(0.15) to $(0.10), falling short of the $0.06 consensus estimate.

Price Action: BLMN shares were trading lower by 21.8% to $7.050 at last check on Tuesday.

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