Shares of Bloomin' Brands (BLMN) plummeted 5.04% in intraday trading after the company provided softer-than-expected guidance for the second quarter, overshadowing its better-than-anticipated first-quarter results. The Outback Steakhouse owner is navigating through a challenging consumer environment, which has led to cautious spending patterns among its customers.

For the first quarter, Bloomin' Brands reported adjusted earnings of $0.59 per share, surpassing analyst estimates by $0.02. Revenue ticked down slightly to $1.05 billion but still beat projections of $1.03 billion. However, comparable sales were down 0.5% overall, with Outback Steakhouse seeing a 1.3% decline and Bonefish Grill experiencing a 4% drop. The company noted that households with incomes of $100,000 and less reduced their spending, including purchases of alcoholic beverages.

Despite the first-quarter beat, investors were more focused on the company's outlook for the second quarter. Bloomin' Brands expects comparable sales to fall 1.5% to 2.5% in Q2, with adjusted earnings projected at $0.22 to $0.27 per share. This guidance falls short of analyst expectations, which had forecasted a less than 1% decline in comparable sales and adjusted earnings of $0.37 per share. The company attributed this softer outlook to a "choppy macroeconomic environment" and cautious consumer spending. Despite these near-term challenges, Bloomin' Brands reaffirmed its full-year guidance, suggesting management's confidence in a potential recovery in the latter half of the year.