The CEO of Bloomin’ Brands, the mother or father firm of restaurant chains similar to Outback Steakhouse and Bonefish Grill, advised CNBC on Friday that it’s not experiencing rising meals prices, reasonably that beef and seafood prices have “been a possibility” throughout the pandemic.
“There was some concern in regards to the provide chain. That didn’t materialize like we anticipated,” Dave Deno mentioned on “Closing Bell.” “We’re discovering that beef prices, seafood prices are literally coming down and one thing that we are able to reap the benefits of.”
The coronavirus pandemic has triggered important financial disruption, significantly for the meals trade, as many eating places and bars needed to cease in-person eating and pieces of the supply chain have been fractured. Some chains, similar to Wendy’s, briefly skilled beef shortages at sure shops. Others, similar to Shake Shack, mentioned profits were being dented by rising beef prices.
Chipotle additionally mentioned rising costs of some ingredients contributed to increased meals bills in its most up-to-date quarter. But Chief Financial Officer John Hartung said on Chipotle’s earnings call Wednesday that the spike in beef costs it skilled has improved since its apex in mid-May.
Shares of Bloomin’ Brands closed increased by 7.43% on Friday to $11.56 every. The firm reported second-quarter revenues of $578.5 million earlier than Friday’s bell, down about 43% from the identical interval a 12 months in the past. Comparable same-store gross sales throughout its portfolio have been down 39.4% within the quarter.
However, a lack of 74 cents per share was higher than the lack of $1.12 that Wall Street had anticipated. Additionally, the Tampa-based firm mentioned latest spikes in Covid-19 circumstances in Florida and Texas have thus far had restricted impression on gross sales developments. “So that is been very heartening,” Deno mentioned.
Consumer spending at eating places as they’ve reopened has been robust, with the common invoice being “about the identical as regular,” he mentioned.
“In our supply and carryout enterprise it is a little bit bit much less, since we do not promote alcohol in delivered format,” he mentioned. “In our eating places, the visitor test has stayed the identical. … In reality, what we’re seeing is shoppers selecting extra indulgent, higher-cut steaks after they order.”