Shares of Bloomin' Brands (BLMN), the owner of Outback Steakhouse and other restaurant chains, plummeted 5.05% in Tuesday's trading session. The sharp decline comes as the restaurant industry grapples with rising costs and softening consumer demand, putting pressure on companies' bottom lines.

According to recent data from the Bureau of Labor Statistics, the cost of dining out continues to rise at a rapid pace, with "food away from home" prices increasing by 0.4% in April for the third consecutive month. This persistent inflation in restaurant prices, coupled with cooling grocery inflation, is making consumers increasingly sensitive to value when deciding where and how often to eat out.

Bloomin' Brands has not been immune to these industry-wide challenges. In its first quarter results, the company reported a 0.5% decline in same-store sales in the U.S. compared to the previous year. Moreover, Bloomin' projects a further decline of 1.5% to 2.5% in same-store sales for the second quarter, signaling ongoing difficulties in attracting and retaining customers in the current economic environment.

As restaurants face renewed urgency to manage costs and maintain margins, investors appear to be reevaluating their positions in restaurant stocks. The plunge in Bloomin' shares reflects growing concerns about the company's ability to navigate these challenging market conditions and maintain profitability in the face of rising costs and declining sales.