Quarter-to-date, off-premises is at 25 percent, and that's mostly been a trade between curbside pickup and in-restaurant dining. However, the third-party delivery business, which accounted for $100 million in Q2, stayed flat on a percentage basis.
Deno said restaurants will continue with self-delivery to provide flexibility, but the partnership with third parties remains strong.
“That's clearly the incremental business for us,” the CEO said.
Total revenues in Q2 were $1.08 billion, up 5 percent from 2019. In the U.S. specifically, revenues lifted 10 percent versus two years ago. That growth was fueled by more in-restaurant volume, off-premises retention, and an increase in average check. That rise in average check relative to 2019 was driven by a 21 percent reduction in discounts, increased menu mix, and a nominal amount of pricing.
Food and beverage sales were below 30 percent of sales for the second consecutive quarter as opposed to the usual 31 to 32 percent range. Deno explained that product simplification and the new Outback menu have supported those favorable numbers.
“People have traded up [with] higher cuts of steak and also added on to the appetizers and things,” Deno said. “Waste management in the restaurants, because we're more simple in how we do things, waste has come way down in the restaurants. So all of these things are contributing to what we are seeing in the restaurants. And we think that's sustainable.”
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In Q3, Bloomin’ expects total revenues of at least $1.015 billion, an increase from $967 million in Q3 2019. The projection assumes a weekly average sales volume of roughly $69,000, which is a slight decrease from the current pace as the company predicts historical seasonality will resume. Bloomin’ also expects EBITDA of at least $115 million and EPS of at least $0.45. Both would represent company records for the third quarter.
The company’s guidance for labor inflation stayed at 3 to 3.5 percent, but its projected commodity inflation rose from flat to roughly 1 percent. Although Bloomin’ is locked into its largest commodities for the year, heavy sales volumes have forced the company to secure additional chicken and seafood outside of contracted terms, said CFO Chris Meyer. Most of the inflation will impact the back half of the year.
“Our supply chain team has done a great job navigating commodities over the years,” Deno said. “You saw our performance this year. You've seen performance in the past, and I'm very confident that we will do a good job going forward on managing commodity costs.”