Why Bloomin' Brands (BLMN) Shares Are Getting Obliterated Today

Core Insights - Bloomin' Brands reported mixed third-quarter results, with a significant decline in profitability overshadowing revenue and earnings beats [1][2] - The company surpassed Wall Street expectations for revenue and adjusted EPS, while raising its full-year profit guidance [2] - Despite positive headline figures, underlying fundamentals showed deterioration, leading to a 7.4% drop in shares [1][2] Financial Performance - Revenue decreased by 10.6% year over year, indicating a decline in sales [2] - Adjusted EBITDA missed analyst estimates by 82%, highlighting severe operational profit weakness [2] - Operating margin fell to negative 3.9% from a positive 1.7% in the previous year, reflecting rising costs eroding profits [2] Market Reaction - The stock has been extremely volatile, with 48 moves greater than 5% in the past year, suggesting the market views this news as significant but not fundamentally altering its perception of the business [4] - Bloomin' Brands' shares have decreased by 43.9% since the beginning of the year, trading at $6.71, which is 60.5% below its 52-week high of $16.99 [6]