Bloomin' Brands (NASDAQ:BLMN) Reports Q3 Revenue Beat, Strategic Restructuring with Dividend Suspension and Restaurant Closures

Bloomin’ Brands Inc (NASDAQ:BLMN) reported financial results for the third quarter of 2025 that presented a complex picture for investors, marked by a slight revenue beat but a deeper-than-expected adjusted loss per share. The company concurrently unveiled a significant strategic turnaround plan, headlined by a suspended dividend and a wave of restaurant closures, signaling a decisive shift in corporate strategy aimed at long-term revitalization.

Third Quarter Financial Performance

The casual dining operator reported total revenues of $928.8 million for Q3 2025, a 2.1% increase compared to the $910.0 million reported in the same period last year. This figure narrowly surpassed analyst estimates of $925.1 million. However, the bottom line told a different story.

• Reported Q3 2025 Revenue: $928.8 million
• Analyst Estimated Q3 2025 Revenue: $925.1 million
• Reported Q3 2025 Adjusted Diluted EPS: -$0.03
• Analyst Estimated Q3 2025 Adjusted Diluted EPS: -$0.12

While the company's adjusted loss per share of $0.03 was an improvement on the estimated loss of $0.12, it still represents a significant decline from the adjusted profit of $0.11 per share earned in the third quarter of 2024. On a GAAP basis, the company reported a diluted loss per share of $0.54, driven largely by substantial impairment and closure costs.

Market Reaction and Strategic Pivot

The market's initial reaction appeared to balance the slight revenue beat against the broader strategic uncertainties. The stock has experienced volatility in recent weeks, with a notable decline of over 6% in the past two weeks leading up to the earnings release. This negative momentum suggests investor apprehension about the company's direction and the costs associated with its new plan.

The earnings report was dominated by the announcement of a comprehensive turnaround strategy focused primarily on the flagship Outback Steakhouse brand. Key elements of this plan include:

• A suspension of the quarterly dividend to reallocate cash flow toward strategic investments and debt reduction.
• The closure of 21 U.S. restaurants, with an additional 22 leases not being renewed, resulting in $33.2 million in impairment and closure charges during the quarter.
• A four-pillar approach to revitalize Outback, centered on improving the dine-in experience, driving brand relevancy, reinvesting in company culture, and updating restaurant assets.

Updated Financial Outlook

Management provided updated guidance for the remainder of the fiscal year, which offers a mixed view when held against analyst expectations.

For the full year 2025, Bloomin' Brands expects:

• U.S. Comparable Restaurant Sales: 0% to 0.5%
• Adjusted Diluted EPS: $1.10 to $1.15

For the fourth quarter of 2025, the company forecasts:

• U.S. Comparable Restaurant Sales: 0.5% to 1.5%
• Adjusted Diluted EPS: $0.23 to $0.28

This full-year EPS outlook of $1.10 to $1.15 falls short of the analyst consensus estimate of $1.26, potentially tempering optimism from the Q3 earnings beat. The Q4 EPS guidance range also brackets the analyst estimate of $0.26, indicating expectations for a performance in line with current projections.

Conclusion

Bloomin' Brands finds itself at a critical juncture. The Q3 results demonstrate the challenges of inflationary pressures on restaurant-level margins, but also a modest top-line resilience. The company's aggressive new strategy, while costly in the short term, represents a clear-eyed effort to streamline operations and refocus on its core brand strengths. Investors are left to weigh the immediate financial pain of restructuring against the potential for a sustainable recovery. The suspension of the dividend, while a negative for income-seeking shareholders, underscores management's commitment to freeing up capital for what it deems essential investments.

For a detailed breakdown of future earnings estimates and historical performance, review the earnings and estimates data for BLMN.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. The information presented is based on publicly available data and should not be relied upon as the sole basis for investment decisions.