Bloomin' Brands (BLMN) stock plunged 6.15% in early trading on Wednesday following the release of its second-quarter 2025 financial results and a disappointing outlook for the third quarter. While the company reported mixed Q2 performance, investors seemed more concerned about projected losses and declining margins.

For Q2 2025, Bloomin' Brands reported total revenues of $1.0024 billion, slightly above the $999.4 million in the same quarter last year. The company's adjusted earnings per share came in at $0.32, surpassing analysts' expectations of $0.28. However, profitability metrics showed signs of pressure, with the Q2 operating income margin decreasing to 3.0% from 4.4% year-over-year, and the adjusted operating income margin dropping from 6.0% to 3.5%.

The primary driver behind the stock's sharp decline appears to be Bloomin' Brands' weak Q3 2025 outlook. The company projects 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). Furthermore, U.S. comparable restaurant sales are anticipated to range from a 1% decline to flat. Adding to investor concerns, Bloomin' Brands revised its full-year 2025 adjusted EPS guidance down to between $1.00 and $1.10, compared to the previous outlook of $1.20 to $1.40. These projections suggest ongoing challenges in the company's near-term performance, prompting investors to reassess their positions and contributing to the significant stock decline.