Bloomin’ Brands Inc. shares fell Thursday after the company reported its third-quarter results.

The company operates a portfolio of more than 1,450 restaurants across 46 U.S. states, Guam and 12 countries, including Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar.

The company reported an adjusted loss of 3 cents per share, narrower than the analysts’  estimate of a 12-cent loss, compared with earnings of 21 cents per share in the same quarter a year earlier.

Also Read: Bloomin’ Brands Restaurant Margin Squeeze & Guidance Cut Lowers Stock By 22%

Total revenue rose 2.1% from a year earlier to $928.81 million, topping analysts’ average estimate of $906.93 million.

The increase in total revenues was primarily due to the net impact of restaurant openings and closures, as well as higher U.S. comparable restaurant sales. Lower franchise revenues partially offset these increases.

Adjusted operating income margin fell to 0.8% from 2.3% in the year-ago quarter. Adjusted restaurant-level operating margin declined to 9.5% from 11.1% in the same period last year.

The decline in restaurant-level operating margin from the third quarter of 2024 was primarily driven by higher commodity, labor and operating costs due to inflation, increased insurance expenses, and an unfavorable product cost mix.

The company ended the quarter with cash and cash equivalents of $66.48 million.

Turnaround Strategy

In October 2025, the company’s Board of Directors suspended its dividend as part of its turnaround strategy.

As part of its turnaround strategy, Bloomin’ Brands closed 21 U.S. restaurants and opted not to renew leases for another 22 locations, most of which will expire over the next four years. The company recorded $33.2 million in asset impairment and closure charges related to these actions in the third quarter of 2025.

The restaurant closures were completed in October, with an additional $5 million to $7 million in severance and closure costs expected to be recognized in the fourth quarter.

Segment Performance

Bloomin’s U.S. segment revenues rose to $912.3 million from $887.3 million a year earlier, reflecting higher restaurant sales of $902.5 million compared with $877.1 million in the prior-year period, partially offset by lower franchise and other revenues of $9.7 million versus $10.3 million last year.

In the international franchise segment, revenues declined to $7.1 million from $9.9 million.

Outlook

Bloomin’ expects fourth-quarter adjusted earnings per share between 23 cents and 28 cents, compared with analysts’ estimate of 26 cents. U.S. comparable restaurant sales are expected to increase between 0.5% and 1.5%.

The company raised its full-year 2025 adjusted EPS guidance to a range of $1.10 to $1.15, up from its prior outlook of $1.00 to $1.10 and above the Street consensus of $1.04. U.S. comparable restaurant sales are expected to be flat to up 0.5%.

CEO Commentary

Mike Spanos, CEO, stated, “We have great momentum in our business as demonstrated by our third quarter results. All four brands drove positive comparable store sales growth for the first time since Q1 2023. Our teams continue to focus on consistency of execution in food quality and the guest experience, the foundation for our turnaround.”

Price Action: BLMN shares were trading lower by 7.40% to $6.695 at last check Thursday.

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