Shares of Bloomin' Brands (BLMN) plummeted 5.12% in pre-market trading on Thursday following the company's announcement of a comprehensive turnaround strategy and the suspension of its dividend. The restaurant chain operator, known for brands such as Outback Steakhouse, Carrabba's Italian Grill, and Bonefish Grill, revealed these significant changes alongside its third-quarter financial results.

The company reported a swing to a loss in Q3, posting a loss of $45.9 million, or $0.54 per share, compared to a profit of $6.91 million, or $0.08 per share, in the same quarter last year. On an adjusted basis, Bloomin' Brands recorded a loss of $0.03 per share, which was better than analysts' expectations of a $0.12 loss. Despite the challenges, revenue increased by 2.1% to $928.8 million, surpassing Wall Street estimates of $906.4 million.

As part of its turnaround strategy, Bloomin' Brands announced it would focus on enhancing the guest experience, expanding brand reach to grow traffic, and refreshing its existing restaurant portfolio. To fund these initiatives, the company plans to implement non-guest-facing productivity savings and close some underperforming stores. Most notably, the board of directors has suspended the company's dividend, a move that has likely contributed significantly to the stock's sharp decline. This decision, made in October, aims to reallocate available free cash flow into strategic investments, signaling a shift in the company's capital allocation strategy that has evidently unsettled investors.