(Bloomberg) -- Bloomin' Brands Inc. shares tumbled the most in more than a year after the company posted third-quarter sales that missed Wall Street's estimates, blaming higher costs and less marketing because of the volatile environment spurred by the pandemic.
The company chose to pare back promotions and marketing for Outback Steakhouse, its largest chain, which had boosted sales in 2019. It also said the coronavirus delta variant caused sales growth to decelerate starting in August. Same-store sales gained 26% in the third quarter, missing analysts' projections of 30%, the average estimate as compiled by Bloomberg.
Bloomin', which also owns Carrabba's Italian Grill, forecast higher full-year costs for commodities such as chicken and seafood, along with increased labor costs due to wage pressures, training and retention efforts.
The stock slumped as much as 11% in New York trading, the most since October 2020. Bloomin' was down 3.5% this year through Monday's close, well behind the 23% rise of the S&P 500 index.
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