Bloomin' Brands (BLMN) stock tumbled 5.02% in pre-market trading on Wednesday following the release of its second-quarter 2025 financial results and disappointing outlook for the third quarter. Despite reporting a slight increase in revenue and earnings per share, investors seemed concerned about the company's declining margins and projected losses for Q3.

The restaurant company reported Q2 2025 total revenues of $1.0024 billion, a marginal increase from $999.4 million in the same quarter last year. Earnings per share from continuing operations rose slightly to $0.29 from $0.28 year-over-year. However, the operating income margin decreased to 3.0% from 4.4% in the previous year, while the adjusted operating income margin dropped from 6.0% to 3.5%. The restaurant-level operating margin also declined from 14.0% to 12.0% compared to the same period last year.

Adding to investor concerns, Bloomin' Brands projected a loss per share for the third quarter of 2025. The company anticipates a diluted loss per share between ($0.22) and ($0.17), with an adjusted diluted loss per share expected to be between ($0.15) and ($0.10). Additionally, U.S. comparable restaurant sales are forecasted to range from a 1% decline to flat in Q3. CEO Mike Spanos emphasized the company's focus on building a high-capability team and improving consistency of execution, particularly in turning around the Outback brand for sustainable growth. However, the market's reaction suggests that investors may need more convincing about the company's near-term prospects.