BLMN Stock: 8.26%-Yielder Presenting Great Opportunity for Income Investors?
September 2, 2025
Why BLMN Stock Could Be an Underrated Income Pick
Restaurant stocks might be in a sweet spot right now.
Here’s why: investors are getting increasingly worried that the U.S. economy might be rolling over. Fear is creeping in. When this happens, Wall Street often misprices consumer-facing businesses—especially ones that depend on discretionary spending, like restaurants.
But sometimes fear creates opportunity. Consumers don’t completely stop dining out during downturns. In fact, recognizable brands with loyal customer bases tend to hold up better than investors expect.
With this in mind, take a look at Bloomin’ Brands Inc (NASDAQ:BLMN).
This is not a new name for the Income Investors publication. I first wrote about BLMN stock back in March. It’s now trading below the price at that time, but this decline could be a blessing in disguise for those who are patient and seeking high dividend yields.
What Does Bloomin’ Brands Do?
Tampa-Florida-based Bloomin’ Brands owns and operates a portfolio of well-known casual dining restaurants, both here in the U.S. and internationally. It operates through two business segments: U.S. and International Franchise.
Bloomin’ Brands has four concept restaurants:
- Outback Steakhouse, a casual steakhouse
- Carrabba’s Italian Grill, authentic Italian cuisine
- Bonefish Grill, specializing in market-fresh fish from around the world hand-cut in-house daily
- Fleming’s Prime Steakhouse & Wine Bar, a classic American steakhouse
The company has more than 1,450 restaurants in 46 states, as well as in Guam and 12 countries. (Source: “Our Brands,” Bloomin’ Brands Inc, last accessed August 27, 2025.)
Financials Make a Bullish Case for BLMN Stock
On August 6, Bloomin’ Brands reported its second-quarter financial results for this year.
The company’s revenue came in at $1.0 billion, slightly higher than the same period a year ago.
Its earnings were mixed, to say the least. Adjusted diluted earnings per share (EPS) came in at $0.32, compared to $0.45 per share in the same period a year ago. On a generally accepted accounting principles (GAAP) basis, EPS were $0.30 per share compared to $0.32 per share in the second quarter of 2024.
EPS in the first half of 2025 reached $0.79. In the first half of 2024, Bloomin Brands had a net loss per share of $0.64.
Bloomin’ Brands’ management also revised its outlook for the full year. It now expects adjusted EPS of $1.00 to $1.10. This is down from the $1.08 to $1.28 per share it projected earlier. (Source: “Bloomin’ Brands Announces 2024 Q4 Financial Results,” Bloomin’ Brands Inc, August 6, 2025.)
On the surface, these revisions may look disappointing, but here’s the thing: BLMN stock already trades as if Bloomin’ Brands were in serious trouble. However, this is far from the reality; the company remains profitable.
BLMN Stockholders Keep Receiving Decent Dividends
Now to the part that income investors really care about: dividends.
Bloomin’ Brands has been returning cash to shareholders through both dividends and buybacks. As the stock price has dropped, the yield on BLMN stock has climbed into the high single digits. Yes, there was a dividend cut in late 2024, but that doesn’t mean the payout disappeared altogether. Income is still on the table.
Margins are getting thinner, and the company’s management has issued a cautious earnings outlook. But here’s what investors shouldn’t overlook: the company is still profitable and committed to rewarding shareholders.
That combination alone makes BLMN stock a solid contender for income investors.
At the current price, BLMN stock has a dividend yield of 8.26%, paying $0.60 per share on an annual basis.
BLMN Stock Forming a Support Level?
Now let’s look at the BLMN stock chart…
At the time of writing, BLMN stock is trading around $7.26 per share. That’s far below its 52-week high of about $17.89. The stock price has been cut by more than half.
But pay close attention to what’s been happening around the $6.50 price level. This level has been tested twice this year—and each time it was defended, buyers came in.
For contrarian investors, this is exactly the kind of setup that can turn into opportunity. If Bloomin’ Brands can improve earnings and show even modest improvement in traffic or margins, BLMN stock could move higher from here.
It’s also worth noting that, as per the most recent data, close to 13% of the BLMN stock float (shares available for trading) was short. (Source: “Statistics,” Yahoo! Finance, last accessed August 28, 2025.)
If there’s good news out of the company, this massive number of short shares could make the upside on BLMN stock sweeter.
Chart Courtesy of StockCharts.com
The Lowdown on BLMN Stock
Restaurant stocks might be mispriced right now because of all the recession fears hanging over the market. But that’s when opportunities in these stocks can present themselves—when investors start pricing in too much downside.
Bloomin’ Brands could be worth a look for income investors. It runs a portfolio of well-known restaurants with broad appeal. In its latest quarter, the company reported modest revenue growth and generated profits.
For income investors, the key point is that BLMN stock still pays a dividend.
The stock price is certainly down significantly from its highs. That may not look great on the surface, but it does suggest that value investors could be seeing a potential support level forming here. The BLMN stock chart does suggest that some support is building up.
Lastly, BLMN stock is heavily owned by institutional investors. BlackRock Inc, The Vanguard Group, and Starboard Value LP, the three biggest holders, colletively own 28.85 million shares. (Source: “Holders,” Yahoo! Finance, last accessed August 27, 2025.)
