Bloomin’ Brands CEO says beef and seafood costs are falling, an ‘opportunity’ for its restaurant chains

Bloomin’ Brands CEO says beef and seafood costs are falling, an ‘opportunity’ for its restaurant chains

The CEO of Bloomin' Brands, the parent company of restaurant chains such as Outback Steakhouse and Bonefish Grill, told CNBC on Friday that it is not experiencing rising food costs, rather that beef and seafood costs have "been an opportunity" during the pandemic. 

"There was some concern about the supply chain. That did not materialize like we expected," Dave Deno said on "Closing Bell." "We're finding that beef costs, seafood costs are actually coming down and something that we can take advantage of." 

The coronavirus pandemic has caused significant economic disruption, particularly for the food industry, as many restaurants and bars had to stop in-person dining and pieces of the supply chain were fractured. Some chains, such as Wendy's, temporarily experienced beef shortages at certain stores. Others, such as Shake Shack, said profits were being dented by rising beef costs. 

Chipotle also said rising costs of some ingredients contributed to higher food expenses in its most recent quarter. But Chief Financial Officer John Hartung said on Chipotle's earnings call Wednesday that the spike in beef prices it experienced has improved since its apex in mid-May. 

Shares of Bloomin' Brands closed higher by 7.43% on Friday to $11.56 each. The company reported second-quarter revenues of $578.5 million before Friday's bell, down about 43% from the same