Outback Steakhouse parent company Bloomin’ Brands Inc. (BLMN) experienced a significant drop in its stock price, tumbling 6.7% premarket on Friday. The company revised its full-year guidance to reflect the challenges posed by a soft casual dining environment.

Adjusted EPS Outlook and Same-Store Sales Expectations

Bloomin’ Brands now expects its full-year adjusted earnings per share to fall within the range of $2.80 to $2.90, compared to its previous guidance of $2.91 to $3.00. Additionally, the company anticipates same-store sales growth between 1.5% and 2%, as opposed to the previously stated range of 2% to 4%.

Strong Third Quarter Performance

Despite the revised guidance, Bloomin’ Brands reported an increase in net income for the third quarter. The company generated $44.5 million, or 45 cents per share, compared to $31.9 million, or 34 cents per share, in the same period last year. Adjusted earnings per share came in at 44 cents, surpassing the FactSet consensus of 41 cents.

Revenue and Same-Store Sales Decline

Although revenue rose to $1.079 billion from $1.056 billion, it fell just below the FactSet consensus of $1.082 billion. Meanwhile, combined U.S. same-store sales experienced a decline of 0.5%.

CEO's Statement

CEO David Deno emphasized the company's commitment to driving traffic and preserving margins amidst the current sales environment. Deno stated, "We remain focused on driving traffic and maintaining margins as we navigate the near-term sales environment."

Stock Performance

While Bloomin’ Brands' stock has gained 17% year-to-date, it still faces the challenges brought on by the soft casual dining environment. In comparison, the S&P 500 has gained 12%.

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