The CEO of Bloomin & # 39; Brands, the parent company of restaurant chains like Outback Steakhouse and Bonefish Grill, told CNBC on Friday that the cost of food did not increase, but that the cost of beef and seafood during the pandemic had been "an opportunity" be.
"There were some concerns about the supply chain. It didn't come out as we expected," said Dave Deno to "Closing Bell." "We find that beef costs, seafood costs, and something we can take advantage of."
The corona virus pandemic has caused significant economic disruptions, particularly for the food industry, as many restaurants and bars have had to stop eating and parts of the supply chain have been broken. Some chains, like Wendy's, had temporary beef shortages in certain stores. Others, like Shake Shack, said profits would be weighed down by rising beef costs.
Chipotle also said that rising costs of some ingredients have contributed to higher food costs in the last quarter. But CFO John Hartung said on Chipotle's earnings call Wednesday that the rise in beef prices has improved since its peak in mid-May.
Bloomin & # 39; s shares closed 7.43% on Friday at $ 11.56 each. The company reported sales of $ 578.5 million in the second quarter ahead of the bell on Friday, a decrease of approximately 43% from the same period last year. Comparable sales in the same business across the portfolio decreased 39.4% in the quarter.
However, a loss of 74 cents per share was better than the $ 1.12 loss expected by Wall Street. In addition, the Tampa-based company said the recent spikes in Covid 19 cases in Florida and Texas have had limited impact on sales. "So that was very encouraging," said Deno.
Consumer spending in restaurants that reopened was high. The average bill is "about the same as normal," he said.
"It's a little less in our delivery and handling business because we don't sell the alcohol in the format we deliver," he said. "In our restaurants, the guest check has remained the same. In fact, we can see that consumers choose more forgiving, higher-cut steaks when ordering."