BloominBrands 2025 Q2 Earnings EPS Falls 9.1% Despite Revenue Beat

Generated by AI AgentAinvest Earnings Report Digest
Friday, Aug 8, 2025 8:00 pm ET2min read
Aime RobotAime Summary

- Bloomin' Brands reported a 0.3% revenue increase to $1.0B in Q2 2025 but EPS fell 9.1% to $0.30, missing profit expectations.

- Restaurant sales drove revenue growth, but net income dropped 10% to $26.67M due to cost pressures and mixed segment performance.

- Shares fell 32% month-to-date despite beating revenue estimates by $11.3M, highlighting operational challenges like declining same-store sales.

- CEO David Deno emphasized digital transformation and operational efficiency to address inflationary pressures and boost long-term growth.

Bloomin' Brands Inc. (BLMN) reported its fiscal second-quarter earnings for 2025, delivering a slight revenue increase but falling short on earnings per share. The restaurant operator's total revenue edged up 0.3% year-over-year to $1.0 billion, exceeding the Zacks Consensus Estimate of $988.7 million. However, its net income and EPS declined, reflecting ongoing cost pressures and mixed performance across its restaurant segments.

Bloomin' Brands reported total revenue of $1.0 billion for the second quarter of 2025, a 0.3% increase compared to $999.37 million in the same period of 2024. This growth was primarily driven by Restaurant sales, which amounted to $984.77 million, while Franchise and other revenues contributed $17.59 million. Despite the modest revenue gain, the company’s net income decreased by 10.0% to $26.67 million, and its EPS dropped to $0.30 from $0.33 a year ago.

Bloomin’ Brands reported a decline in both earnings per share (EPS) and net income in its fiscal 2025 Q2 results, with the EPS falling 9.1% to $0.30 from $0.33 in the same quarter of the previous year, and net income declining 10.0% to $26.67 million compared to $29.63 million in 2024.

Following the earnings release, shares of experienced a volatile start. The stock edged down 1.19% in the latest trading day, plummeted 24.05% during the most recent full trading week, and dropped 32.07% month-to-date. Despite the weak near-term performance, a backtested strategy of buying after revenue beats has historically shown favorable returns over a 30-day holding period. The most recent report exceeded revenue expectations by $11.3 million and surpassed adjusted EPS estimates by $0.01, both of which contributed to a positive market reaction. However, the company faces operational headwinds, including flat or negative same-store sales and declining traffic at most of its brands, particularly at Outback Steakhouse. Investors should monitor these trends closely, as they may affect long-term growth prospects. Additionally, while management has provided optimism about full-year adjusted diluted EPS guidance of $1.00 to $1.10, the success of this outlook depends on continued operational improvements and the effectiveness of digital transformation initiatives.

CEO David Deno highlighted the company’s strong second-quarter performance, with revenue reaching $1,002,366,000 and EPS at $0.30, driven by continued recovery in dining demand and improved guest engagement across key brands like Outback Steakhouse and Bonefish Grill. He acknowledged ongoing challenges, including inflationary pressures on labor and supply chain costs, but expressed confidence in the team’s ability to adapt and maintain a focus on operational efficiency. Looking ahead, Deno emphasized strategic investments in technology to enhance customer experience and expand digital ordering capabilities, while reinforcing the company’s commitment to strengthening its global brand portfolio. His tone remained cautiously optimistic, balancing recognition of current hurdles with a clear focus on long-term value creation and brand differentiation.

For the full year, expects to maintain a disciplined approach to capital allocation, with CAPEX prioritized toward digital transformation and restaurant modernization initiatives. While specific revenue and EPS guidance figures were not provided, the CEO indicated that the company will continue to monitor market conditions closely and adjust expectations as needed to reflect evolving economic and consumer trends.

Additional News

Nigeria’s foreign direct investment (FDI) dropped by 70% over the past three months, signaling a deepening economic challenge for the country. In a significant development, the Sterling HoldCo directors recently invested N341.6 million in company shares, reflecting confidence in the firm’s long-term potential. Meanwhile, Dangote Cement was recognized as the country’s cement company of the year, underscoring its continued dominance in the domestic market. Political dynamics also saw movement, with an African Democratic Congress (ADC) faction denouncing David Mark as the party’s chair, adding to the ongoing internal political debates. These developments highlight the complex economic and political landscape currently unfolding in Nigeria.

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