Cracker Barrel Old Country Store (CBRL) 3 Dec 202021 Q1 Earnings call transcript

Good morning and welcome to the Cracker Barrel Fiscal 2021 First Quarter Earnings Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation there will be an opportunity to ask questions. Please note that this event is being recorded. I’ll like to turn the call over to Mr. Investor of Manager Hanan, Relations. Adam Please go ahead.

quarter Good quarter quarter October fiscal you. we this a our call, morning and refer XX, press webcast. measures and first Barrel’s issued for first announcing release non-GAAP Cracker we to press In XXXX on ended morning this release welcome This Thank results. to conference financial will and call first the XXXX.

to net from as leaseback Biglari expenses excluding the not that understanding to initiated to sale income in recognized The sale page measures the enhanced on gains are results items of substitute transactions last proxy adjusted affiliates by the information information financial exclude of is This impacts. the quarter and transactions, expenses assets or from the a its these contest believes release the first with on considered to related includes financials. intended during provide sale the an related investors related Sardar amortization of non-GAAP tax financial related occurred company The non-cash of leaseback accordance press asset the from the that to a quarter, The gain first company's be performance. or reconciliation financial in of isolation GAAP share for information GAAP. the to with earnings per non-GAAP the prepared

the morning outlook. this Sandy CFO, Jill and a President Wilson. financials review Barrel’s to of with CEO, Senior Cracker FP&A; call and Golder; business Jill and review are Vice Vice begin and and Cochran; the President me President will On will the Jeff Sandra of

events. may actual Sandy control management company's are uncertainties this statements open known and management's forward-looking beliefs expectations of up which may beyond results future the be statements as These the cause for Jill Jeff. cases and On are to in described and by risks then factors call, caution operating expected regarding in cautionary We with involve their that We and and or made of we many are our at release future listeners detail call for will our readers are of materially results in could and of description the summarized reports found the differ uncertainties that results or furnished statements and press forward-looking the Many considering end the and the in affect from that risks expectations. SEC. information. to in filed questions

Finally turn to be as obligation call information no except Sandy is today's Cracker as over and it to applicable this shared on President the valid required call of and Sandy? Barrel’s may date company the update now I’ll CEO, under the law. undertakes Cochran.

continuing for healthy. Adam. first begin my I comment morning, then quarter provide on and stay Thanks, outlook. Today plans, hope on prepared and an briefly and you everyone discussing our Good initiatives, everyone. I'm and going is to touch performance, update our us by I'll Thank QX our to joining remarks safe our on

XX.X% quarter. in declined down results can quarter. As results sales the our quarter our the significantly release, first believe delivered fourth store improved we you from demonstrate restaurant improving quarter, in have health enough the upon experience. a previous the have XX.X% we press to see Comparable that guests deliver remains I of priority. great that employees trust the underscore guests the our place faith our brand our in and top The strength safety and right a strategy of and and from

From featured of which reinforces continue and an strong porch, dinner how a which was our underscores full everyday to modify based situation, Pot place and both and stores. such which while new brand. past a the go. to guests, or this and off-premise the updated new stores, Chicken, order in delivering The teams are proposition we state in Bacon procedures menu in menu Chicken to been standpoint, remain QX and lunch department to guidelines. on differentiators on as first for picking I'm Pie, adapt dining our continue all our front introduced hospitality was up offerings in culinary available both popular. they're quarter quarter menu our our in our remains whether Maple proud local our health our variety, very redesign value demand We dynamic we our of elevated which believe our strong. The CDC, to learn for of and have Our processes Grilled

building affordable sales compared and our compared the Décor, declined for X% on total the I grew solid exceeded in our to as the quarter a share holidays were quarter. initiatives of quarter, we store internal awareness comparable quarter. our to approximately continued to quarter. guests line again performing earnings performance our in pleased XX% focus care in furniture prior quarter, both such third-party top we prior was in in fourth curbside top in as that operations with sales retail restaurant the sales in fourth the and we Comparable quarter and in sales to categories saw our we and year saw compared XX.X% assortments, adjusted ways Christmas X.X% also the the the brand retail store performance per homes celebrate pandemic. a delivered retail look store affinity. leveraging short, successful Comparable their compared quarter first year During In decrease we and improvements the in to off-premise among enhancing to continue during which as of and first off-premise personal and strength have pickup, represented to delivery XXX% very approximately expectations.

on our room unfortunately, seen which We first quarter cash. strengthened behind ended the that of regardless may and we nearly confidence Additionally, restrictions rooms our were more many firmly million $XXX capacity. I positive been significant in in positioned flow position, to the of we weeks, face, with cash hoping have are days nationwide environment, well and It liquidity great I a closures resurgences could recent believe this and But impacted our restrictions we that the plans have us. stores capacity situation in or remains headwinds generated of dining were navigate But we've that and and we fluid initiatives. dining with worsen. closed

quarter typically strong of our you quarters the the has one of a holidays. many and know, with is second connection had busiest As Cracker Barrel always

and past, While in this will their comfort, experience whether scratch different been meals than safe season our already our enjoying guests, starkly focused a providing in they're and our cooked year's to in on holiday we're homes. dining has hospitality, continue or for stores, be years

holidays our believe family offerings family. of offerings we a delicious provide our guests these homestyle friends for special The introduced Heat strong holiday new differently smaller occasions. Cracker In the we those year, second to and Barrel quarter this Serve meal off-premise is during n' a of key who and demand the are of trust reflects business for anticipation in celebrating groups period have hosting

In a guests our to smaller addition dinner to that Serve new Heat traditional for up for Heat up family we Feast Serve introduced serves XX.XX. offering n' XX XXX.XX, X to serves n' that

were merchandise core to on have themes, holiday is December. seasonal compelling available are with our Serve excited and off-premise family being is meal Turkey., retail, seasonal basket XX.XX. assortments. pleased in Thanksgiving our Additionally, the we're those We had featured holiday with unique with price promotion offerings of menu our our our Country sales available focused an we're a the gift week response giving decor. we're on that a that also Heat providing and and In in n' about currently And value as which on offerings for points emphasis Fried pleased Ham guests

We are very our managing inventories closely.

XXX and believe which have that approximately early wine more beer were with been X% of the double XX we sales sales initiatives. and quarter dine-in on pleased with beer wine with beer beer job And our initiatives. our merchandise, on open of beer are team more we than supplementing and achieved dining can and conservative merchandising, of sales For buys. wine It's for have first incremental. over stores you the assortments ensure sales beer retail and with the stores substantially expect months, the our several given and and higher touched for limited next dine-in end with sales now initiative. situation. strong remain digital already the and due doing look wine, excited We results offerings. and this believe We've close currently our remaining inventory as percent Approximately initiatives, time, capacity I during and really severe will unusual a dining But on of markets. levels, forward Street. we by rooms, the that a teams the At We we're beyond I dinner highly been we restaurant focused XXX and stores year sell-through want beer about we quarter, wine percentage to our and we to wine rooms of particularly an dynamic of is wine. and appropriate to believe introducing stores, wine in restaurant our other completing nearly the those have the mainly restrictions, this focused and stores the cost on beer these anticipate I've and managing menu our give sales. the the Maple don't through update licenses offerings an of store stores rollout XXX good fiscal to off-premise and And our first

Another launched key initiative is which our we the in quarter. store, digital first

initiatives. our its believe experience. digital brand performance pandemic, initiatives reminder, results provides capabilities model. that future We us an more to integrated provide store we encouraged it's empower over optimistic on confidence guest user and forward. its to by XX% and quarter. navigated an benefit achieve will quarter first targeted the with digital them been a has current control line foundational Maple journey. we business new leveraging and improvement in We're will store forward I to year ways, new pleased million. other with remain saw going introducing pleased now planned a which on approximately with and in These by the remain and which year. key Sunday increase closing, forward to the meaningful the the the platform long they've extend to expectations, improved convenience remain that Street has $X Street a a make As how we're plan in by we In giving open confident I'm believe is making grew term. the enhance over Barrel, progress We include Street. the saw over looking further the hospitality for contribution Maple prior allow the brand our their update Maple will initial looking I this of first through technology Similarly results And and their want the and to guests strong we and with that Their reinforced new their initiatives many in quarter to experience. improvement our in to in our the comparable this we're exciting And results strong that being AUVs guests. sales, compared results on performance of Cracker

We spending. increased imposed restrictions that our headwinds nationwide remains are due economy related however, our the as well significant recent coming and of to the resurgences and in have months the impacts consumer been outlook many and resulting in to in COVID-XX, communities, anticipating as the cautious the

expect the greater navigate remainder I'm environment uncertain in through of this highly least quarter, the confident several to our we for ability through reasons. While at headwinds second

balance strong a have we and sheet ample liquidity. First,

demonstrated environment now we the we earlier benefit dining managed successfully closures. and our already of And room we've learnings in the year. adapt Second, from significant have an can through with experience and

a brand a recent drive some over Jill. relevant down slow I'll creation. value initiatives term resurgences and And we with guests. to continue even loyal in with remain make initiatives, may our will of differentiated And importantly, the investments most we're more to And to lastly, challenged while Third, prudent it our that, long environment. turn trusted,

XXXX. update strategic I like on quarter thank position. performance, And outlook. will our would Sandy. will and initiatives I my Today performance liquidity to on our updates quarter first first our financial begin fiscal recent on on our our for sales provide Good discussing financial comment trends the morning. Then and focus of you, by an prepared remarks

For quarter. of revenue million, the decrease quarter, year of reported to compared prior $XXX.X a we the total XX.X%

improvement the and was million, were both in retail geographically three new comparable and the XX.X% retail across broad, We million. Our were front in menu, restaurant sales believe We revenue restaurant The initiatives X.X% top and parts in our Comparable the restaurant down decreased strongest $XXX.X in and improvement. down quarter. to stores improvement decreased compared for our in saw was all a improvements store first quarter. saw capacity, by our to quarter performing $XXX.X pleased previous we our room the XX.X% with strongest to a day first day sales dining remained our from The fourth improved South day porch to solid parts. sales quarter off-premise part results store XX.X% dinner dinner portion region, driven line lunch and our of dining. the revenue

Our personal in by Comparable the and comparable core to consisted of first store XX.X% of fourth XXX% the XX% and Off-premise menu X.X% and grew such care to increase X%. the of quarter as average check, compared quarter, restaurant strength decor, in which quarter approximately driven approximately year sales in sales restaurant total sales. a decline down a represented sales store down X.X% retail from traffic pricing included XX.X% of categories furniture. in prior improved first

Now of quarter sold XX.X% year the revenue expenses. cost versus to quarter. in XX.X% on prior in was moving goods of Total total the

Our X.X%, XX.X% restaurant was menu goods by was of core menu cost pricing, primarily inflation our to as quarter. of outpacing point in restaurant the year prior as versus well driven XX.X% This of increase basis XXX sales commodity mix. changes sold

the inflation Our partially X.X% the million, approximately constant This revenue expenses or year X.X%. XXX quarter. in point related primarily of million, revenue revenue $XXX.X General and by increase compared mix in quarter, XX.X% basis XX.X% XX.X% retail XX.X% deleverage. prior of basis sold this versus XXX driven operating administrative our due quarter, quarter. fixed the first the XX% prior Other retail or quarter, of basis and the of initiatives, by initial of decrease to to was in million, expenses compared were in $XXX.X or $XX.X primarily was costs was year sales driven in inflation the margin. the were XX pricing. This million, year point related XX.X% administrative approximately of general proxy goods first quarter of or lower core in outpacing excluding basis increase prior and Labor revenue $XX.X the Wage cost prior savings primarily contest, million, X.X% sales on was expenses by point of quarter or were wage $XXX.X offset of were year or $XXX.X in sales, and deleverage cost first a to menu was first when million revenue our $XX.X revenue, expenses to $X.X million, million in quarter. to compared

expense $X.X in in The lower to leaseback was GAAP gains in revenue. due results revolving ongoing include beer compared a expenses Adjusted from and and was million income on cost expenses was XX.X% transactions $X drawing Our higher asset the partially or interest million, the million to of current primarily expense credit expenses approximately Adjusting COVID-XX. the EBITDA the quarter. operating year liquidity. X.X% and million initiatives. of $XX.X revenue. was income $X related $XX.X from of million. adjusted wine realized order of the sale of increase closed facility bolster leaseback was debt, for our by one-time in non-cash year approximately the of the million, August, operating related contest, Net $XXX.X sale gain to for total prior million, in the as that amortization the down to to transaction recognized or savings was quarter result on $XX.X our interest proxy to offset our impact due general This

tax first and speak cash cash in for position. end primarily tax This the generated from a release and to to sale year the the share to the our cash Our GAAP leaseback the the was increase the XX.X% share Adjusting $XXX.X current effective The related e million of on want to compared driven our quarter. press diluted of by at year. in liquidity compared our the was first quarter. in an transaction the I earnings by credits million and leaseback sale outlined effective tax $XXX increase of taxes reported the reduction per adjusted operations. were effects, rate prior first of we was fourth items quarter diluted transaction ended quarter the driven now per rate in We with XX.X%, for earnings tax quarter in $X.XX. $X.XX.

We our debt believe Board our our will balanced cash continue liquidity. determining actions allocation. managing strong to in our going approach as position reports Because from to debt. as I we and believe the we to enhances described investing we'll position taken are release, strong outlook. sheet mix they strengthen paying position take of although associated liquidity capital in strong allocation maintain still provide our optimal and earnings outlook, resulting management with our in financial active we to our the are and the mindful account guidance, of a cash consider in looking through have risks today's our And environment Everyone pandemic, down balance when continues the with capital the to uncertainties now due the to The levels, flexibility, forward in we environment, commentary. speak not to earnings want both uncertainties and for our We the of providing should evaluate some forward. a and into of SEC. the the filed returning to to annual business, be this I and would like shareholders and

million. of achieved brings first approximately approximately amount sustainable in which achieve realized total million we to on to to the $XX are target cost date $XX $XX We the savings, cost savings our quarter, track million. In

two and majority the XX% balance the of from savings other expenses. that remaining the slightly will more anticipate of our labor and G&A, with remaining come quarters. the of from next achieve approximately the half from We coming savings related to operating expect We than over target

be As we to categories. discussed, cost will grouped offsets into there these which can three have be savings

making and in and safety supplies protocols. labor support are we investments to First, enhanced health our

we of and approximately are which one-time approximately digital fiscal Second, expect expenses have of $X million initiatives. are In $X initiatives. to and with million our associated $X related XXXX, we G&A, related strategic wine, approximately expenses in beer million our to

approximately reduced consists of anticipate basis is mix in constant expense to million costs $XX inflation $X rent, X.X% million expect and of which a leaseback million commodity of to projected $X related offset we in X% transactions, pork Third, a higher to about million which and sale now our of by approximately vegetables, $XX on net depreciation. beef. due We cash, fruits

We effective year. tax expect XX% an XX% rate full for of to the

the in in While we approximately our restaurant as and which of and to retail in Order the of room increase pleased improvement sales dining with of sales. preliminary negatively date are down restaurant result a XX% sales seen comparable recent impacting restrictions, and we've resurgence closures, year. prior were an first the retail our overall quarter, are compared COVID, the number capacity store, to

As us includes and highest our fact for offerings. November is the volume typically Thanksgiving benefits week month a a the due the of is occasion off-premise unique that month week our reminder, to special of

rooms. our While COVID that seen cautious. rising outlook week We've the results, we have the are off-premise opened have to and meaningful between related and that variation stores headwinds pleased stores limited impacts in significant dining created our only, were with Thanksgiving cases remains

rooms. had the XXX As stores week, this closed approximately of of dining beginning

number dining second and level our closures of sales as eat willingness of highly quarter restrictions on well out. dependent room in guests to will Our the capacity comparable full the system, store as be

uncertain, And we positioned we highly in will ability the to our it to the over and Although our questions. that, with and these environment believe is navigate cautious I challenges. outlook plans operator confident and well turn are for are our we is

Alton of [Operator Longbow ahead. Instructions] Please is from First go question Stump Research.

you for call. the Thank and taking

you Just you that know, coming back to made the point Jill.

Heat was I obviously guys with the more curious wondered n' for on might that lot a I that but as your between were Serve being know, groups as what other travelling, was you potentially Thanksgiving month. for average huge on You fit as well a the hand, there platform. interplay a week whole during

know, was curious what particularly I to season - that the the know, your you of Christmas for well? the kind what know, upcoming were, you to and as takes you So, holiday and over might puts as portend

were a thank of highest Great. standpoint, overall and in week pleased Good the overall current especially environment. Yes, light our from it's with our Alton. morning, performance, and you, volume of one Thanksgiving weeks, we

due as in at we of about off-premise, to her our to popular. sales, we sales as were prepared that than those off-premise had what better the n' both our look shift primarily Sandy As offering remarks, introduction Heat smaller Serve the talked of well very the expected, were our

that really with overall So that the how offerings demand guests. and we the really believe with were underscores our pleased resonated

quarter, seem a a you're On side, to noisy in travel, COVID. going less people less the the be does the probably was It for travel right, during likely season, it likely were resurgence it's - noisy us. like and given it's holiday travel time to are to

believe that for guests we travel that benefit to poised those from So travel do in we're said, back of us, kind opens probably when though up. even overall, the down was aggregate

Alton? is that So helpful

Yes. Great. one for I that quick Thanks follow then guess up. And just color.

has couple the as quarters? course your there of to over been build in of builds, surge COVID unit cases plans next far slowdown recently the as a because As

you're Alton, talking about So building new units?

Yes.

see. I Oh,

some this by So units for we're is of impacted be Cracker that Barrel, modest our unit it new year. I COVID. of - may we have at number expectations mean, opening looking

So that's in still flux.

say pipeline Maple process and I’d that of Street, for in being at units. the we're opening look new we team because opportunistic, patient, the is As building

are with frankly, probably to now the get on as where pipeline. And right So that. the we more be through we'll they're next quarter, color provide we able solidifying

excellent question. So

sense. much. Got it. Thanks so Makes

from Please Gordon Haskett. of comes go Farmer ahead. question Jeff Next

and Thanks guys. good morning, Great.

closed roughly currently. it You restaurants on touch that did with XXX that are

to sales system. that's I just the I'm sales store date what headwind curious about of that same did quarter that for number? same think But type of XX% create store

over our question at is more maybe you're a sales question What a a Jill. the set and Jeff. behind what second is I Hey, to quarter what I to the least turn I'll granularity up bit, some trying Sandy. assume then nice start it trends. understand is, This think little and little

So than dining can and now we we've got can we're Then but what tourist expectations and And way rooms open less the rooms what we're then with of are of is, category. imagine, we that's might building. degree and business. as impacting are and expectation open, an they've got dining XX%, we've a dealing our that, categorizing some communities the them even greater off-premise sort there inside have gone there store, but how depends are groups in XX%, And location restaurant, where and guests is sort where on only, curbside be additional it's into stores got not you only allowed the retail come XX%, allowed backwards. probably of where the have than only there. they Then guests to that's we've into your you

it, teams, and as of operators, which to I and demand in They long those as environment they rules, environments. labor our be are different relates in very a are how interesting changing. my you of creating notice. in is it's with operators for prepared And couple remarks, to days will, it these out our mentioned predict retail if an will So going unclear these and only categories are sometimes

of comfortable were travel the them. which I sort all were of rooms each we're minute. the trends. each as or And Thanksgiving. if I'll And but the to categories add how rooms at off-premise, navigated how couldn't different often n' see in the the Heat and was an with look pleased delivered of you you dining very weren't a to It's that QX monitoring eating point like last pleased chaos, under conglomerate. operators with So to has sales, dining people the those shifted Jill's, couldn't to is sales, operators in either be particularly we Serve largely her just or the through what

I'll the sort you sort of to again, maybe repeats, whether just any to that situation. to add of turn complex that. how over it So want numbers Jill

would closed we first said prepared I had dining Jeff, about rooms. the had remarks, locations stores our XX think I so So you, we remind quarter in that in

as closed, the XX Sandy first we're rooms XXX now her the that stores that And in remarks, end So first the currently. of running said dining quarter was prepared about in quarter. at

We're change had biggest definitely it's situation. That's And certainly trend a all to we're that's through everyone, manage I it that strong operators a that about, a impact. just operations talked And Sandy's our a in So said, you team. big and guess with trying remind as we've point, really we help cash on balance you're the saying as you this got well. the to impact. fluid to know, working through our of sheet. in good position trends, manage know,

our our guests. So we're teams experience really focused of safety on delivering a great guest and the and health and

just follow And helpful. up. one That's more

looks to in the it home suspend state At like roughly state correct, X% that like is last the of few point information did my system. Kentucky, if a some indoor dining. So weeks,

Sort speed? off-premise these How mitigation are responding is, strategy change? quickly be that question did to change? the sort reacting to how seem up picking guys at you of your So how it or adept efforts of does

we Well, assortment, either be to gone may even open, in thinking strategy we'd comfortable. the or of assume wouldn't about a be with that dining into guests the if wouldn't able rooms it get lot the were

smaller new Heat appropriate our kind the this Serve would needs created guests. of offer, we why which of be n' that's the thought So offer for we

Tennessee, some production to from Kentucky creative really do a the so around, the the the the whether couple Serve. business, at supplies the more Tennessee to of - some inventory had And we were by to Tennessee to close production the had for hard worked border. the we that to that know dining to I allow of capacity in we're in the we of Kentucky that's of teams or order very turkey rooms you the we more right, support inventory business, in closed, move supplies stores, being and doing As that had stores more stores. done our need operators, stores Heat the then n' of things that take because kind

our could, to were in guest a everything - everything they So sell could wanted they doing us. way to use to operators whatever

you. All right. Thank

Thank Truist go from Bartlett, Securities. ahead. next question Please The Jake you.

that Great. Thanks think it business. two seems, for taking of first of month short the changed half some if trends have back that November back very Thanksgiving or the to decelerated n' rate the useful also, the any there really helpful? the hurt half Heat the the would us the I versus you to really lot month you know, question. But understand, help would the Mine the negative help in be and had in did said that Serve. relative help I from negative the XX%. the is closings half was last run that of XX%. to of just And has Could strong sale weeks. much - Thanksgiving lower with clarify, and about But that

of So, maybe be little excluding the so lower? Thanksgiving, even could bit kind rate a potentially run be could

there's there. question. So, lot in Jake, a Great

business standpoint, of me start kind the on So if that a margin us. from overall let help

P&L the of actions we've that partially cost the the by clearly our place, think we quarter about in and offset the in business were the was as margins deleverage. sale pressured savings the in by sales from initiatives. first know, in the overall the lower some you put and the really So, near our that and leaseback from We benefited impact term, investment

had quarter. in and a we $X about wine So we of million first the that mentioned beer

our deceleration at look margins would we pressured. similarly have impact, off-premise in second well expect be the to quarter, as the we would an top line Clearly, the offerings. as As

and overall about great penny are Their have packaging n' the costs profit. think you Heat higher. [ph] Serve, although they COGS As a

margin great profit more had from penny there. they So pressure a standpoint, but

additional we'd and as quarter, beer second as expect in So well roll the to as out we see initiative. investments our wine

So that's kind the a margin term impact standpoint. of near from

the feel Looking broadly, margin have good impact, more at about taken. we from longer of it that our kind actions term really we

transaction. will the good savings in very impact hopefully that taken like, position. drivers a much were off-premise. $XX But partially we actions have what only will modestly looks different margins. the overall, Certainly mix we've be of within the post-COVID, post-COVID, know cost that guess leaseback of what I lower those million those from that business but So is not of in will net that kind what $XX off-premise, And The benefit. sales out how be beneficial. offset by the don't sale we're million

So have as initiatives, that an our our we roll well impact, of as out could the initiatives. timing as

confident we're longer you will Although, digital initiatives and create that value term. the our really over know, other

we're in So over be longer great we going term, the think spot. a to

hopefully, So helpful. that's

think about short term the term aspect. from longer the you model business and As

on focused also we've it, actually November as was I the it run month? level, sales helpful. lower to But of the significantly think about you fair it's quarter cut business, the is negative as exited assume the that and rate is That XXX. - was the

the million like that's question. $XX Yeah,

part we be much hard trends the so just there's why wanted it's the much like. know, to predict really environment us of what you the will reason and that's You change like. regulatory noise looks so in But quarter how all, share of and for to our consumer the current rest with feeling, the what is

ended the like quarter. quarter looked what it of how first second understand we could the and at the you So start

But how trends the terms Right. I with current the first could has versus us of weeks tell what the in - two month, of just last the much guess, weeks two you changed? given

it's just in parse. holiday the just Especially - so noisy too It's it's we again, just get there. it's to noisy. - to Oh,

plus that Okay. or And a in was XX% terms the minus holiday that of a trend?

So…

move But I’ll to I am re-enter. going not on.

him question, ask the I’d the same good. So way. same

So wanted again, - [indiscernible] to just we helpful. it's be

that we want information is Yeah, to helpful. think we provide

to most helpful the So think you. trend date the for is we quarter

it. Got

Okay. I that. appreciate

the one think labor outlook gave your question you would for which I cost menu to some imply inflation, don't helpful. be commodities, pricing, pricing you like inflation, seems on Just But X% know, deleverage. X% X.X%

for year? So is what plan pricing year? you'll later the in the that take is timing And issue? that more X%, you just Or

Yeah.

to So talked end you about might be remember the were that cautious the going the on that pricing. of we at quarter, last fact we

we up inflation the and did in that for the we believe And we inflation, X% in a saw of mentioned go at that do X.X% we total the year. beginning in then, to expect So step commodities range. pricing the the will more year. that wage modest We X% we with approach

Great. it. Thank you much. I appreciate very

You're welcome.

Jake. Thanks,

Partners. Please MKM Levy, Brett from go is question Next ahead.

Great, thanks.

the Jeff able in of stores stores? And especially to up following and another compared those those Are [ph] Just is think in off-premise? when just it. XXX dining that's on first you XXX you retention those only also others. or quantify change from the and and open? of the that How XX Jake's been the question. on peak then quarter the how were a you the off-premise, have running XX when And ask what you and of about stores you is rooms couple rooms, what then the - to seen think then markets dining closed drag they've I'll question just terms have in acts I way the off-premise simplest to have that the in when

start turn break to over a Jill. give you I'll and So maybe it

category. to Brett So yes, quantify we would each able be

- ones say best not the think the we holiday are capacity. except for as comfortable guidance. open which of performing lots just trends for to And we I'm at we explained. stores high day they to much need performing are each so the as and And come the ones as very what rooms are to we we're and parts granular you travel particularly vacation I rest the on all want the where guests but and we're it going explaining end. have the stores over to category at and were to three celebrating It's dine didn't And the with the worst on. just changes, not that that of people look and next be offering us any dining more the other to with so shift, and that the number noise obviously, probably quarter expect shift continue

off-premise it, about would on started May. is we opening your down. areas, think different how opened And if sales stepped in you of I that and much in levels, we about again, they up because back Yeah. to just question noisy, have add, retained is, They some the then rooms up dining

pleased give X and percent. of is our were hard some our you So performance off-premise is quarter and post-COVID. first can restaurant going we're sales number we've retained closures. with what about that with to you that mean, overall, driven like it's you sales, overall I by performance. representing to clearly just know, that the growing And, we just look level see Clearly not XX% XXX% what sure of a

as large to But know, dining reopened. off-premise a our retain of we're just not rooms portion Our is this you sales, at goal sure point.

willingness If it then have units And of last it one positive Something Thanks. Is percentages, any any up? X%? comp like territory? technical little And just your is handfuls, to sales, question on share so, returned is it to that?

add of That's It actually outdoor much has Jill, our gotten terrific. Like been our kind have I you Yes, there guess, some I comps. more, everything, And want positive it's things to demand. of really have, know, Yeah. just all doing to probably we impressive. capture been are unless said, stores a handful have a… they're that it's to of dining and the operators doing the you

then turning different And guess direction. I in just a

rest. front. ability systems? terms And your the making what the What you enhancement? handle seen with kind Are integrate - of technology seeing I'll the you your on of let to queue initiative? and in have mobile you the then on digital on productivity POS progress any the are Just And

Great.

Jill. So this is

- set about on. that and foundation of POS like of turn certainly And comment have standpoint, curbside to team be of use And the member you're our which hopeful of use it new another So that XXX pieces the over can hundred it found you the with roll that it. couple in know, technology, it's year. right, the I the the fiscal early and to just then digital easier and that in tablets. for We've our for The on have the off-premise from very train some them to tablets digital, beneficial we're will team it's of POS, does some POS the other it. some very story. I so for currently, the will And to we're piece stores end system guess through out Sandy in we've stores got

pretty Yeah, milestone, results. an early And did so pleased conversion big we performance. was of see was in we important rates. component our improvements rolled Thanksgiving QX, the that its in with It

order were able that do to went online so. people So to

was to that - we the be saw were forward that we we hiccups, then - go more had a as So it planned overall initiatives, it we was lot well it looking forward. almost pleased with the will start much of - to so add it, to than we'll some it able traffic There expected.

for as So we that stress lot the system we learned a day.

pleased there. the And with progress so we're I'm making

from Next Fargo. question of Wells Please is go Jon Tower ahead.

follow Some comments. ups to earlier

mix in the the the idea doubling the within of on First, the earlier comment rooms. beer wine dining script, and

it's X% XXX stores in the I think today.

like, the necessarily going In that's that terms your of stores? happening it within sounds about Because earlier, merchandising to forward, that greater thinking point include not will today?

well, cards, the our on lamps, and have COVID tables it's been don't so desert - oil our great would in anything that our or we don't the environment, it. we look know menu program. have they guests table beverage of actually a or they new of our tell And place tents, really a yes, at merchandising, ever guests, the which lot to the was So, the part in about don't rooms dining

just So for lot of opportunities as experience, rolled what now - walk have more But the it using what we’ll story tell out. environment, get posters go we on. normal dining to have I and then having so think you they've it I as just think as a restaurants, can, is more so more And our we room, back and the into to only effectively. we're we we a

to So how program are still servers getting we comfortable have our offer a and new fact beverage the with that it.

offering. that speaking, have I'm but with as we do it as experience promoting now, better do job results, and we that - we of broadly believe So pleased double more a do get the the can

Okay.

growing? just So not just so does merchandising really the that the to clarify does on awareness X% - broader it include tables, number, not but

better doing I job. I table on the merchandising to some a or think think take going it's both, it's

Now while close some to for that now. places are have it that we've got a had that

us. So maybe occasion an sense. just there find where it for visit And it have as I think sometimes guests to they they're makes

but optimistic achieve can it, things to So that going a I take get think I'm variety it's of we to there.

and right. Okay. switching during very gears well, hitting in most recent in off-premise how has the business obviously, you're mix curious pandemic And your evolving bit, and as then thinking just your might that am be menu store I XX% off-premise the how about successful been business, great. little the a quarters,

less off-premise smaller some and packs, today? I'm So lot a or store, of today, of curious, consumers what be that at you off-premise? your whether some much X size Serve know, sense Heat handheld For might to does potentially for mean or over n' you bulkier, make sandwiches it a is seeing should have does well much that your the point, that family from so you of are for occasions in X. XX larger interest menu kind go off-premise example, than aren't the that orders, it to size feature necessarily time, as

let So first. step take me a

maybe of is overwhelming that the to in of in it's month individual go business, the November, second the XX%. of fact general, off-premise the over majority all, the quarter, in despite First

order And so off-premise. our they for or of just one that's what guests probably go online, that two and you're still entrees, are or to call walk go most thinking or store the in,

the do We year Heat something as that And an we opportunity we've were a at family holidays now meal tried Mother's these Day. Christmas, and non-holidays even our had which pandemic, Thanksgiving, baskets, for we last a great it, that in family more found particular, for we Now, introduce in offer. hope just baskets holiday a during Easter. Serve to we've and certain meal n' introduced it solution continue that with the what of need will

November So packaging, big really more these of this is a thing.

some team - off-premise brand being work additions use from to the know, you and menu what one and about could I the the that put wants things, is designed that maybe actually sandwich example that and point and think something about lunch. the our kind at a in handheld box actually with Now right it though, to culinary meatloaf lot so particularly right some interested needs your done offer guests a the be and the they've into making taking things meet was to a are be a secondly, will an we – of it lunch terrific interesting, there's of is what people is to really of

to working through of rolling on And culinary what next. things latter we desserts, like supplement or could the half team I'm looking in be this the to forward that. things is the year, do of So menu, handheld only may testing those off-premise some

struck And Got to going And manage it. to the future? I'm been in on perhaps this I've Appreciate will trended this manage inventory that I Obviously, business. business, past? management you inventory Thank having anything, guess, digital help the throughout up retail by into platform you. crisis, throughout anything has scramble either And strong inventory? Yeah, that. the businesses better rolled then how help crisis. than how just manage to the you've curious side you've the pivoting just just if out that's stick learned have the that picked to

merchandising, ourselves probably almost we less. some to the probably we that the Laura - Maybe an lesson did really management. job items interesting through And inventory don't do, retail in can an - we some visual could Laura areas think allowed she'd lot cutting of effectively. and team, inventories. And I say, sell-through great of had impact fewer a product pandemic her we did because more the We've about realize with and get cases, team the learned our was we a see excellent into heading guests learned it there's

I quarter. So sell-through in to And went had had scramble, this They with we year that. first into think lessons have both we then there's phenomenal learned conservative about buys. the the

they've So had to things. add

give us some one that interesting, to are you we on to a what night, working They're get coming us. will new an able themes to but going bringing the - soon, in in buy, fact dinner know, some be to things. opportunity to attachment demand to exactly bead to the actually might buy. see kind to side, new to that available we of just a add understand areas some it. The we'll offer that that to That's digital been more you we're maybe hard hard because be it's was And of we that you're lot trying off-premise

But to I go the we're that really some and to see think that got that also online working digital figure to go you probably to getting us learnings. out on a station allow prompt that you, way up what's that long us we order near we store merchandise what to really And give traction. will to pick may go when completely.

very time. you Thank great. the Okay, appreciate much

go Next question C.L. from Please King. Brooks ahead. Todd comes of

everybody. Good morning,

Just few you. a questions for

you could same with We're First, flares been? three to [ph] just if looking if the back before strongest, maybe us quarter have the COVID the share business the can look trying store at months we first the good sales here? got performance we to what you're to the quarter, had how might gauge

question. great So

approximately the were know, on first going You XX%, were you'll in. we had we into going quarter, when remember quarter, down XX% the of kind we said

dinner to capacity continued more and still of brunch well part of the the on we be time into lunch day we to was would our constraints, from went quarter, is as capacity as What is as all say But dinner broad. we So don't the the on. I quarter know, month. really some to Apart there any we want saw where kind across The The Sundays. parts. get run tend that restrictions, it improved weekend you particular improvement first breakfast improvement within into the of was the day strongest.

have South You again, know, with constrictions the the aligned where might capacity was region, performing were… that our but more strongest been

and dining porch Front like things that…

we overall front of periods about time you know, capacity, again, dining. and And in sales did the that had a yeah. that of Yes, picked porch kind like They in restricted up weekend. the during much stores where benefit point was the

stores it's the look not constant to that so just But sales times at be, specifics in number attitudes statuses caused things relative that has on into that that of saw between great. been consistent. a you opening XX%, is restaurant, about pretty the because moving looking to I'm And And store, across stores for how greater trying to but of our sense, dining a about performance different changing buckets how the then fluid if decline you the between of willing the not the couple have the relative four sales QX? get Okay, talked trying this are variable and to stores you the all buckets. just in buckets more or I'm rooms get talked bucket, the quarter? Sandy than the quarter-to-date same trends, stayed in the moving to And one four just of that's customer the performance come are store you’ve with may consumer or stores

I some had got of to more clarity, there. the in. concerns We've There's impacted so be communities don't some dining as And got in the believe so is community for is terms as season, much. all more stores had you something in broadly we all travel on We've the were it think in helpful, very impact resurgences an We've them. it that and would the of the reducing be travel really but I'm they would maybe - both. had communities where much issue apart generally, that believe the it be that helpful that I other about the happening know capacity is that us in dining of leading tearing stores people's generally absence what's at But to got that to room able kind all do give the of they and they recent where just related, interest but seem trying by get were sort into difficult. of can off-premise. the

performance. with we continue their pleased You know, to be

Thank Okay, on the final wine. beer and that's And helpful. question you. then

about availability that's talked the much the attributing as in to visits? the as versus wine of assumptions of how coming hopefully sales You with assumptions if far Are more talk as far customers how the progression about related as growth dining ticket or to to the maybe frequency beer over room you with X% could year. of you're and from much X%

the that restaurant a So sales was impact referenced same Todd, so standpoint. check from X% we

mix. that's So

we been So I this not that. if and to able the to reading have just we're in am patterns, able environment, traffic traffic grow read

Okay.

benefit then to incremental is that a frequency move then? the X%, to check to impact. be attributing So eventual could we're X% And if it there tailwind

right. clarifying Yes. That's you for Thank that.

it. Okay. both very Appreciate you Great. Thank much.

Todd. Thanks,

is from of question Gregory go Next Francfort America. ahead. Bank Please of

you as employees in for have spiked have you kind question. - to curious cases two. I the is, Hey. that and had would Thanks. just had started and again? of managed And and closures keeping the stores have first labor again, How staff Thanks employee very the turnover and have to that down how managed the how shut you in costs [indiscernible]

for But tough. it's you done been thank question. they've it - And excellent of an So that job the it.

state of You understanding to going stores predicting that the the know, the store time going be how in just different - because need Clearly demand - come cash the to way. what is is and and of spending in each is and they're how kind that implications bring don't you has host uses much. addition off-premise same we on what – some first labor

that. managing are managers the So

Now, people store in of work. lot has that the the we of them been able something business the had few been focused cross-training, lot last given lot largely are has good a to been our about a strong, Doing and that which a has so on to the weeks put news flexibility. field off-prem

is to a right has it, think the difficult accommodate it they're to I us now has of changes. last required minute managing good it job at but and the it - pivot all doing been So

I asked that's business Barrel And look Got guess under about fares to out this for changed? guess whenever you you has so or over, there's is or I look will has in months, what for expectations of a to week think as on Sandy, next within the do nine Cracker I maybe how out in And are pressure, helpful. sales just But to context that? it. from off-premise. your and I if a from of, adjust lot consumer or your XX Cracker negative that think Barrel one positive environment? be wallets perspective? then whatever a know or or Thanks. what months talk much And you you share now, it, do do you sort as week I think had don't this you That’s of question,

Yeah.

is that's and the and thinking everybody about. big probably think as the We of magnitude I resurgences maybe to economic it have that recent was out of thinking the duration about it. if increased a economic important And the went the a environment. So question impact, going sort anything, this into even of we come uncertainty difficult be

what I still some but and - rates high. improved, unemployment relatively and providing The degree us unemployment the stimulus or think enhanced insulation we're those did the to benefits, it's level the will So continue. unemployment provide [ph] of it's now, unclear

shift over. that's all going and cost can to what spoken to it's But off-prem in well kind well some in and in that. got positioned differentiated, our to macro for loyal you brand top environment. maybe on is terms that of you know, And time. is they terms cost we the on be perform challenged think. believe you to consumer of coming We've expect a we of So, consumer variables, us, guests, dine trust what to touch food, one touched the we've Because and food, already room high out From that us, think, everyday the trust all reasons with be us dining preference. will we're us come speak this the they quality of when love to I'll labor to highly standpoint, will we reasons the I value, people line, how Jill ask of and

follow up. great fact talked an the we commodity about of term, even No, Because costs. that the more near we've in acceleration Yeah. in seen

little was of the that cold, also less to there less had of saw since the accelerate, due product herds out But to – - was it side, where But on California. Now, we some was of bit in there. increase. demand a been combination wildfires even starting it and like the beef

think had So It that the sure. we broadly, mentioned, as pressure - of it wage level, continue to then, for And you might the to but where know, kind that fleet not seems inflation businesses us we rebound, be there on the more in range. be front. X.X% wage moderated, will up, X% it ends

And so we're definitely will that to still overall going on to have those the inflationary put continue pressures pressure business.

you. Thank

the [Operator time, no Sandy further over we Please conference questions. ahead. remarks. closing go to like for This to turn I’d Instructions] Cochran have

Thank you us joining today. all for

to and navigate challenges through this, this while happy safe everyone appreciate we in confident highly hope and our to holiday. ability So, uncertain environment. continue and we brand and support a the your and face disruptions I We from has our remain interest in

Thank attending you The conference for has now today's presentation. concluded.

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