Texas Roadhouse (TXRH) 28 Oct 222022 Q3 Earnings call transcript

Good evening and welcome to the Texas Roadhouse Third Quarter Earnings Conference Call. [Operator Instructions] After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] I would now like to introduce Tonya Robinson, the Chief Financial Officer of Texas Roadhouse.

You may begin your conference.

Thank you, Josh. everyone. evening, good And the should quarter to it ended on texasroadhouse.com be you for may earnings the found in at website third September our section. have now, our access release also Investors By XX, XXXX,

and relevant our you not need future These Before that results of remind undue performance, to will could those forward-looking and part release from remarks, are the statements should today everyone statements. discussion therefore, more our to all These forward-looking cause materially filings refer SEC. recent earnings we be documents detailed We our with not discussion factors actual a formal them. provide differ begin include our statements. placed of I upon of to the guarantees reliance of that

may measures. found can information reconciliations In If the measures to be non-GAAP addition, non-GAAP release. applicable, to earnings we the of GAAP in our refer

Jerry me the Officer is call of with Morgan, On Chief Roadhouse. Executive today Texas

we call open remarks, Following the for our will questions.

would Now like to Jerry. call over I turn the to

And evening. Tonya. good Thanks,

proud continued momentum for of These our growth. results restaurant line line to were full top sales pleased of strong to the the were quarter. growth pressures earnings This month-to-month, spite cost are business. per share driven were accelerate the helped in in an We sales nearly of results, strong generate impact top throughout resulting margin comparable in growth XX% dollars the quarter growth by operators. leading by achieved work performance highlighted hard see which especially X.X% of third our We

and in healthy to increased benefited volumes from periods compared guest quarter XXXX. quarterly XXXX over throughout at per the Weekly traffic dine-in remained $XX,XXX restaurant. To-Go and resulting demand also both August September Our strong

we an decision for Roadhouse both During the with for is operators, never price menu pricing our Bubba's our Based on of easy third review and our implemented increase. Texas Taking recently a pricing XX. we completed menu semi-annual X.X% discussions quarter, us.

with confident which continue are have our for to proposition done we our guests, our that commitment years. protecting value relationships we XX will However, long-term build to nearly

to our significant on newest the confirms we to Moving Roadhouse restaurants, towns. belief still performance we development, encouraged of opportunities openings performance come. that our in for This many have including by growth smaller years Texas remain

As believe we from today, sit as has XXX to we restaurants many the Texas the to here its concept just of Roadhouse current as potential size XXX. domestic over grow

open opened international XX one far XX locations We year and six Texas have with more so XXXX, are expected in Roadhouse franchise open partners restaurants Texas to end. our by and year, on track two with Bubba's Roadhouse this or

also fifth opened are pleased that in October. location Jaggers We our

XX For XXXX as strong, our Roadhouse and are three openings targeting Texas remains as and we development Jaggers. pipeline approximately well Bubba's

eight of with our of at one tentative the Additionally, we franchisees a to have year. next beginning restaurants agreement acquire domestic

We also in domestic locations XXXX, international including expect our franchise partners Jaggers. and to open three XX

people infrastructure we our invest next the support As excellence. operational our to us position allows and restaurants, financial to provide to strong our focus on needed look year, development, in

true and to consistent shareholder approach, of which builder tried be We this value. has will continue with proven a

and us successes greater month past meet annual our had our Their to operating our It push along was principles partners. see forward as take the over Finally, to even passion, to in opportunity feedback the great future. the will part fall better continue with commitment their action their their restaurants. to on support tour, face to to I managing face learn, of to and listen,

a provide will Tonya financial Now update.

Jerry. Thanks,

store increase to growth repurchases, year in a by versus by benefit a primarily and from XXXX, increased was of earnings third week income which X.X%. of XX.X% quarter Revenue $X.XX. driven the last volume For million. of growth increased XX.X% per share, to X.X% diluted net $XX.X And share average includes unit XX.X%

For point Guest a room growth. a with traffic sales quarter, up traffic half dining was restaurant driven the by check X.X%, overall average increased X.X% up by comparable X.X%.

choosing We dining continue improvement to to higher see guests positive as guests percentage to of in price continuing as well in dine by driven mix order year-over-year to the entrée.

averaged over of a and Our August, total sales were the the in quarter And sales periods respectively. month XXX,XXX the X.X%, weekly comparable sales To-go continued for restaurants sales. third half our slightly quarter. increasing weekly and the into grew By have in XX,XXX our approximately the of consistent or momentum July, throughout quarter. in XX.X% third and X.X%, represented percentage to-go volumes XX.X% quarter, these with sales fourth back September

with first weekly the period the as up XXXX. same X.X% in of to four comparable quarter, For XXX,XXX weeks sales compared sales the averaged

in dollars margin as assumption. and restaurant card our from quarter, compared third million a a the sales, were XX.X% basis grew million to change points year. to XX breakage total a gift other sales as last down $XXX percentage related to For historical $X.X of Restaurant benefited to margin adjustment XX.X%

benefit percentage in reminder, other a $X.X basis costs had a were third points to compared benefit quarter, in the XXXX, as This As sales of total for nine beverage up XX.X% increase of and XXXX. of our a with of of third due quarter lowered With inflation similar commodity sales Food million. we expectation we the pricing. quarter commodity fixed XX% to year fourth approximately in of full secured prices, by baskets have primarily was commodity the to quarter, menu mostly our XX.X%. inflation X.X% offset roughly the

X%. as currently of will are next of the X% We will comparisons commodity year. ahead we impacted Looking XXXX of lapped and move quarter be by we moderate remainder year, higher we the inflation as the inflation projecting through first expect easier to to

reserve week of store per increased beef assumes total the will basis elevated, remain XX.X% year as the basket guidance to labor of sales third inflation items our higher labor store These while per X% our labor of of many points a in X.X%. on XX group X.X%. next growth for by Labor compared million in to trends, year. comp that and in of and will quarterly most the the for insurance. to other X.X% driven increased cost other and inflation of $X.X of our of by workers' wage and lapping be we by approximately hours offset were wage partially expect current our dollars quarter Based full increase adjustment as week This increases continue driven While inflation percentage commodity costs. XXXX, was health to dollars a

the representing sales benefit other was leverage of the increase. XXXX. of compared For X% third of XXXX, a were continuation of forecasting upcoming sales, to and X% flat to the of by are wage increases Other X% as mandated operating state quarter offset XX.X% we costs was with which nearly of The year-over-year to inflation from $X.X this credit higher and to Other areas repair impact card we million and such reserve also benefited are year. costs quarterly in our that for expense. compared include adjustments liability of benefit million operating the seeing last general benefit a year a insurance. as adjustments maintenance utilities, $X.X These charges

below increase that third the million equity by in in primary restaurant came in revenue. travel meeting Moving grew and $X for and compensation million at cash and $X.X increased spend The increase of quarter G&A margin $X a were our drivers X.X% offset abbreviated last the X.X% year-over-year held partially of the a were year-over-year the and These we G&A of expense managing the million conference held cost partner of second third to expense. million the in a and for by effective quarter adjustment conference the year. a in approximately increases quarter $X.X lapping

XX%. rate effective will third XXXX year for Our be that rate approximately the to tax was expect we continue XX.X% tax and quarter, full our

regards operations million of flow the was tax to cash, expenditures changes payments. by and XXXX. ended With expect income $X up code, quarter. approximately from $XX the $XX capital no is Assuming the million of second tax we an we with third million $XX was end and which cash quarter to of of flow million rate the million XX% $XXX for would offset of dividend Cash from

We expect to million full XXXX approximately $XXX capital continue increasing $XXX for expenditures will approximately be XXXX. million to year

final over the turn I'll to call Jerry for comments. Now back

Tonya. Thanks,

everyone to were program to with to of be Outreach, want proud providing am of the by for much employee questions. our Ian. a sincere quickly the Before native, please of minimal financial our a for impacted our the over Operator, and our Roadies, line need. for reopen want we needed devastation its in funded assistance service the people times of values I aid as communities. to communities turn restaurants thank so also I serve head my that such Roadies. open of and because I truly Hurricane and call condolences Andy's our offer coach heart to provides company impacted to the questions, damage our I able to resilience suffered Florida Thankfully, first employees

[Operator Bittner from the Instructions] Your Brian Oppenheimer. comes line with of question first

open. is line Your

the can the have Tanya, question. to the taking are you basket food of visibility relates XXXX, currently that understand have that's I have type just about to assumptions maybe better follow-up. commodity for X% underpinning it Thanks of talk we so the commodity outlook able what you to Great. any And outlook X% as you percent then the have next you other a that or year? for into locked

And things really tell haven't locked Sure, changed pre-COVID. to what than bit been whole we February give prices what this I'll it be talking fact year, tougher lock discussions Brian. we we'll update where it's a up lot to still is though, so perspective. we suppliers you point. and we've on those type we little on in have beef. that any wait just a with I'll disclose tend you from around have we've about and of don't the in early, tell that vendors, We don't to because shorter at from all what maybe are just of are particularly want data seen to until an contracts those kind

changed. beef. driven of information most And guiding could in other give to to that still saw the said any hasn't the section, But The in as X% I scripted that in rest really the inflation basket is that we're really working overall, that on the inflation decent some So X% I of by end of just you, that we're pretty basket. XXXX.

will still costs items those the of just better think of beef up that as beef go much one was the it's basket in us we XXXX. what performing on for driver while is. not in so as a items, And And

kind affecting like some that of read and maybe with that back looks So, of far the has as just we see And and XXXX calling to drought herds those softness we're coming like impacts. that things as going everyone beef just QX we supply some that. situations with saw in what think in costs as of on along

things So things and constraints that like we just to some to X% of make to a and little that. supply expecting have supply difficult X% into degree built that more

pricing, to you. think, XXXX from in I relates I just Well, And thank look off think, you X.X% appreciate price as the in I just took falls November. first October, that the in the X.X% replaces you. that it that

April. pricing So I think until have you X% in will about place

is, So next should X% to better year? response commodity full that Just And you how understand year think could. about about think analysts to can of the this just if strategy the all your kind for confirm the we to X% question COGS XXXX in margin as inflation? for so pricing of how we trends

Sure.

yes, year, that November. bit that So it this X.X% a the that along X.X% of we took come have you be at you will in off X.X% rolls are little that this are looking will will in QX at April in just you did. And from at with going that just about – in year, to be we right, that point, then impact X.X%. pricing of just And

upon ability March what's falling there that of in on come that QX, then April to the a I'll XXXX. from pricing to to down just throughout conversation goes starting having environment. And kind do for probably that out you no off kind there, of gives and one. pricing And feel more do again going one We Brian, we're visibility start So continue just pricing. react continue do it we looks in We'll to at later puts X.X%. about at kind tell then of of two really you and additional like going year us that as

offset feels, that proposition inflation. that So what of we again, usually to tell sure want thinking we do. But you we're do. the to really, I'll of kind make goal as necessarily to value like We that want isn't

the So than to margins a of more trying increase that's focus be to on for really basis. the our us short-term going

you. thank Okay,

of line the from comes question next KeyBanc. Your Gonzalez with Eric

open. line Your is

Just the in full improved maybe earlier a of the which light to seems inflation the where big year. margins, year picture question in to outlook, we on were relative have

margin forces the what between you restaurant XX% to obviously food there you be that about some the There thinking assumptions year, if are and cost, and you sale Thanks. might next opposing get think maybe sales get plus and margin you on how is wondering that Just next potential. can would inflation back but year?

tough be XX to could feels this we of far we're baskets. we the Eric, have as in Especially get guidance as out far where year. in it commodities on we to had to what labor, Yes, get depends year the with we'll there. scenario XXXX, pricing I a as what XX on gave ending about and all uncertainty really when and that this where But started back It take feels lot like you we year in commodity next we amount April think on good. the with under the the as lift think that especially of menu,

to of really see next things we is put important margin which store up feel good we pleased restaurant percent then like way. that week think ending year us. But year growth, dollar margin growth I so and a outside So can of we’re for

So from of point view we about it. pretty good feel that

Thanks for that.

quick you wondering delays talk out, better it I'm could last are four permitting, calling or in about real inflation and if on over year-over-year? your maybe you has the or much seeing construction just maybe the peers gotten how worse on costs, side, three Just And some months? are building of construction,

it's tight getting say little now, some of would a done. holding but delays. still I on Yes, that right we're definitely overall getting it things, We're some timelines bit

cost and this holding, we’re we good labor bigger I see it been probably material it the IRR even feel out with for continues partners getting done the as our we’re baking time, it’s it. at that still for far in be forward. as think to the there. I but the challenge But really moving don’t numbers escalating about

just just side than a little longer we’re just Right bit going. it equipment, but typical, right very staying on a delay get focused done. the being So now, to now, on on really able little

Sounds good. Thanks.

Your Jared Sachs. next question from line of the Goldman comes with Garber

open. is line Your

for encouraging continue the certainly the and traffic, time to talk is bit? Thanks about you trends a Tonya demand strong quarter, Great. little we see, consumer You positive help today. which noted Jerry, could throughout but of sort items. priced to on to like consumers. commentary hear the pressures trading a around the up guys trend you seems with are incremental and see consumers bucking the It bit of some higher little

help for just us what could basis on be really you Thanks. would consumer you’re if maybe seeing So, that helpful. frame a

Yes.

felt I in basis think to with mix XXXX. of the number, XX check up points mean, they we the the that that’s that that we those traded items see in continue had I that into staying up good really to saw consumer

anything Obviously, through. see back. soon right You good flow don’t little about the and too really always pricing coming now. a seems think It to it’s

We raises aren’t that seeing red flags. anything any

So that’s definitely positive. a

good. really a knows that. there’s say overall, what significant. feels could And it drives who alcohol, really You little but It’s nothing too on bit

consumer the for be strong our brands. good. of Demand the health think feels to I continues

the days dayparts good seeing growth and all traffic week. of across We’re

perspective. standpoint, our that good from all So from

I mean into September, July, fourth us, to it’s look very positive for exciting which you August is trend quarter. if a going the extremely at

Great. how I And about curve bending you year? that, into not just then, that next are guess, following thinking or demand

The so. I to lot top-line like think forward, those holding feeling dining a still it’s very sticky sales of opportunity up. focused sales like stays with have To-Go do it’s it’s and looks moving we room and driving for going on along us, transaction

about normal we to back talked have play that So come in in July. seems seasonality that

perspective, the which high great very in always from a are card new quarter season fourth of the heading a redemptions things. expecting year, into heading we’re that lot great into holiday gift So, sales and

ability say overall, continue to feel So, very drive I sales our confident we would we think a in way. to in positive

you. Great. Thank

Stanley. Your next line the Brian comes from of Morgan question with Harbour

is line Your open.

there Yes. was the Or sounds issue fourth XXXX? quarter, in – where delayed. getting like a on some it’s about one what timing for Maybe is question that you’ve of sounds there wouldn’t beef another Thank expected has guess the materialize those why the of but you’re some commodities. like you. pressure of pressure that any is, just what more expectations? I in It changed just kind timing just some talking reason is

or Brian, overall specifically the talking beef are basket? about just you

like is the but basket, within that overall of of driver The basket, main it beef kind sounds the right?

Right.

So, some I would some you, tell saw we did softening beef QX softening. see in QX, We those costs. on

that of I kind lot think reasons of for out. a different played

and that’s beef for it. on we’re There’s now. the right there that isn’t now, across the There not year the inflation quarter that cadence driving assuming anything pretty much right is really think consistent. volatility I

timing So didn’t of that. XXXX? like on like the How some really lapping mix, the did of basket, items, just we’re of in that? some grocery rest that prices until those into particularly see QX oils, those tick The of QX what we is up you bread things

so on call, said And And a moderates little why we that’s as the just inflation it then number as the there. in it that. from lap down in heavier we QX is

that’s So it at kind we’re the looking right of now. way

steady what cows a now, to trying change that things that. and another, demand have an there’s one estimate then But kind of demand of just from on that could we of a changes like up impact. that. would in we kind supply we’re could faster. assuming slaughter see Obviously, going a perspective supply way lot Any Now for right think does and change course based or things

to then, percent kind Tonya, to will kind similar it Anything you there do about think similar just be in what a been That maybe we’ve of G&A. on XQ you Are were as And makes of look to unique seeing? Okay. you. sales? if would Thank expect sense. of think And – I there? XXXX, any

less percentage on basis now. revenue dollar from keeping G&A right as growth, on and a revenue. growth We pretty it That’s of our in line a then keeping than focus – expectation

to focus that Nothing line. be So that’s I that would on to QX. call going continue our in either out

heading Managing Now This XXXX, Conference we into celebration. QX. comp – year our will is in be Partner in – our having XXth

is biggie. a So it

that. about excited really We’re

was So on what continue as cost bit compared into we to a rhythm conferences, back elevated XXXX. the be the it that to will get those of in

I of be bigger those things outside out. call the really that, So though, would would

you. Thank great. Okay,

comes line Your next with Securities. Jake the from Bartlett question of Truist

open. is line Your

question. Great. Thanks for taking the

but and then follow-up, start I again. I to beef to First, start the I have a want with want

– beef down on see currently. Just that. year-over-year In toys one box other we question

that would take little time I So, have through it for thought that, and flow of system. kind would to a you the age

I beginning would the So, even have now you deflation have thought of seen beef would maybe the year. starting or actually

So in nuances stuff quarter at missing inflation, the how a or the really function is beef XXXX just follow-up. non-beef for have to market? then I expectation looking your And is a higher of items any overall commodity the there that you of other I’m purchase by here first

both you, some Sure. The because you bit. I’ll see see a overall overall QX saw were that. of tell a basket, and beef kind did non-beef bit deflation we commodity those other little escalate helps with QX. of beef We that in deflation items continuing to

was really that so And positive.

and buying. based We’re we’re if that kind any on you will, we’re not of of lapping heading into softness, assuming QX the way what

for in kind goes. market change little to that see continue you a to going of supply that to just anything be, kind the Now we and is demand, we’ll see again, play lock that – as the play what up bit could the how and of continue and for

will of to the So It we days, get is again, first just as kind early continuing tweak is numbers glance. these and a into year. be we this

X% other to question then inflation my was the And on the labor X%. Great. guidance,

X% minimum about a moderate talked of to increases. talked that being from [ph] wage that kind about, about in X% U.S. trying in You think morning mile we this it from just other a But labor concept the inflation actuation environment. for of kind of the when about recession X% And to I’m think or

estimate? kind don’t But – you’re kind I high XXXX productivity So was to there in have of that get and expecting there’s could training. even seems And training cost new part high was if all one, a of such XXXX, inflation the wage wage Turnover there’s was that in how how exit, inflation confident just then abnormal the of it but to XXXX? or people. is, the do visibility, low, what like offsets other know are you in there of and because and some very that – you

part kind tell of think state that So in there said, of I’ll that that’s to we X%, you, the when X% just to mandated. is start about that we X% first question. as with

by of CPI Some on is CPI states. increases. are based higher these that that just states driven There are

pretty other that states. significant rate Michigan, making And you states we’ve pretty their CPI, driving to so high structure. like some with increase those increases seen changes it’s some the in wage wage who have are in Then

normally in that X%, the all be so up. would builds kind And number of That X.X%.

So remainder, that is it’s more be. it than and wages a just not it’s usually other what would The for bit inflation. wages us,

benefits come play. into So

look to attract we for continue and ways talent. to as retain So,

running And the us. We’re that those. staffing different and that we we also, for such little how continue retain the is a and about critical. as volumes improving we Because makes are are bit great volumes, just large expanding it maybe to benefits thinking at it running we’re talent then

we or So, continue some of there just would of were to that we’re of and to feel like the value positioned be staffed. type because to if that our We drive need demand very We we’re for expectation products. challenge. kind well meet – proposition to slowdown, we sales our even recession continue our see would then

Thank very much. you

from comes question line next BTIG. of the Saleh Peter with Your

open. Your line is

I think but here. been going Thank on a Great. that’s I you. ask question was to addressed beef,

the ask that you quarters? that’s the progressed you labor turnover just has year? how about past So, staff a feel let among the on couple here. give how And Tonya, can sense been do How us through over labor today? on the of me availability,

better, It summer. and you. throughout guess, applicants and I the flow easier Yes, has to continued more be answer that I’ll for

We the have with feel add really and and to a So gotten And get of chance. exciting. staffing. comfortable other the it? to to that point what we we where continue part our And very again, we’re that going pad is was superstars some

Just turnover improved. has turnover, on

it and definitely through the Yes, it management we’ve really hourly, and actually settled seen On reduced. has. summer,

I of the So, company and and painting where to is that to picture really connecting all are of they’re a into the going. think fall, I job better the in we’ve in. think settling And routine people settle the going back-to-school, of done starting

So, being a a I definitely the staffed good that, completely, having the but feel management, us see maybe out the running of little there still experienced shift. overall of we and in a bit little the solid. turnover, workforce more there challenge are reduction of very house, Hourlies very with about bit an back of

for positive there a sign So sure.

the forward? How hour traffic? How – should hear. about seeing in to hour given now rate labor you guys right going we’re Good to we the Okay. expect that growth grow what

– this see to that it growth, bit elevated right as like we and this fully volumes to we or continue get we’re seeing. traffic above staffed based year the on just you think quarter, a saw now, I continue

the call right staff sure have, they that. operators sales make for on that I a little just we’re think you kind to always XXXX, just would to making of expect see our know more back kind be the I normal the staff of bit. potentially bit So, sure expectation. they would for a and making that But want they’re getting sales for start little our in it and

out. how see plays that So, we’ll

Thank much. you very

Tarantino Your next from question line David comes with Baird. the of

Your line open. is

strong maybe… good Hi, on performance. sales Congratulations I afternoon. couple have of a such

you. Thank

G&A You have are third Tonya, a the on quarter. welcome. I question, a for your clarification

the think Conference credit I a Manager you mentioned there. got that for you in

– underlying G&A quarter? what the what’s going that around forward is So, I in you think to right is guess And fourth the that was million? $XX it expect

that David. bit. would That million have a $X.X brought little right, number down credit You’re

what So, is as you adjust for thinking have going like, to to look QX that yes. about you’re

seen Okay. also environment. restaurant in you. you’ve week cost been think per And dollars the current is Thank but about know returns in unit question real then some in level some I increases model, there’s increases. your I Great. profit my

if return margin just have or So, how metric? that on maybe relative Bubba’s? and Roadhouse your profile the is level wondering you was us I set close And and of to could maybe where you much on kind targets how on Texas

Sure.

from take current on seeing mid-teen the rest targeting the both returns consideration environment a do area in And for as sales the – into the happening restaurant as we’re look of cost We far where a So on we from at little that concepts. what we’re IRRs, perspective. around is a and guidelines then And a from do what sales for do. we they they going of really restaurant, as to can kind market understand be think get that lot we of because for what input area can sales we the a partner perspective. know that

those all So play. things kind of go into

at income – we area, look TCI But around the controllable call too. level. We We total for at at margins. the it the stores store also TCI look that restaurant

bigger labor, stay located, more really, get rent, percentages. on just And is And country. we like the a that like. really things similar their make running. look feel Commodities Roadhouse on pretty That’s So, being wages variable run. David, store it It’s labor our been can really returns can move we TCIs what across it really overall, that, has it the they’re number, look it. the where kind reasonable But there’s that good. for set expectation because of of depends no the here, depends,

that that well profitability above business. on return be XX on Roadhouse side the they’re have after to number, a perspective. a of Bubba’s continues XX% solid back a lot months look restaurants on working You of but are on a

so good. returns still we And are – are the

we’re but sites profitability more those restaurants. open, hoping to improvement approve little to see at able We’re to a

Thank helpful. very That’s you.

Your comes of from with next line Chris O’Cull Stifel. question the

is line open. Your

to guidance follow for break help on to quickly versus Thanks. XXXX are on spending. And I maintenance I engineer to just you new the Great. up prototype what Patrick And returns said. Tonya, talked value there any was just just improve much this you development then to about? curious CapEx could if is be Roadhouse the have you point This allocated how will opportunities units at Chris. wanted out the of

Sure. you the on CapEx that to numbers $XXX,XXX Patrick, store It’s that to at And a there and bump to bump from Because do I’m stores, includes right kind expect of have of hit. outs Then kind we per outs breakdown. typically, and year. try cooler crunching $XXX,XXX to we now, are give of estimating for anywhere we all the for CapEx restaurants. And relocations. and number number existing that in doing maintenance,

number are right, from have opening even of $XXX opening about part. do that a will And you new last also next in the allocated year that $XXX one it in you’re to XXXX. we based year expected million million, fair in relocations how and on approximately $XX opening Overall, kind of for carryover million XXXX then is is have play relo what a in XX what So, versus stores of you’re that from about looks.

So that million or restaurants. leaves at for what about maintenance existing normal $XX CapEx just so

And in traffic Thank looks that a Can us wanted from too math little you’re was you help levels? about XXXX. much of relative of is right, XQ pre-COVID It looks understand ask traffic. shy improvement how you. to to XX% really quarter-over-quarter? to relative sequentially That’s like, to then in XXXX my XQ sequentially helpful. I if that about And up how

that and can on if QX one number. have me front to don’t in right get see second, me now, of let I I hold

XX%, So sales came in – and On a is on stack XX same-store XX% traffic, then QX all-in sales about number in and XXXX XXXX came XX% for about XXXX three-year respectively, XX% was about at QX, sales. – QX, versus we QX obviously QX. for for from at that a on this all-in perspective,

I Thank Partner of Managing the that it. That's just Jerry, efficiency you curious help about and that you. then operational you mentioned if helpful. that Got on noteworthy was efficiencies lastly, that? there. know guys And would in the anything end thinking gleaned implementing Conference are you was uncovered stores the potential I you just back

to are timely at our operating thing very job. weeks. help biggest the they behind so out so big product really work got I you're our a with their be just And to of they just that We're tour equipment thing can think on last them the and need we We've happy – that all the food, I their The we're businesses. matter supplies partnership they did. getting our can our manner, and the of in to vendor and fall the Well, is scenes, open them with talking a well. manner, operators learned and a on And the about we the biggest equipment our continue community that we It's do a it's food visiting partnerships. facilities. getting think them our service it how and timely volume and operate matter with five over maintenance of probably whether the is our

managing to we partner and thing then So clear meet with what fall really we discuss we're heard loud The to every there to we're is exciting an foundationally help us. a that, can need more how them. all is is we trying what out opportunity and what accomplish for of and great that to which me tour

old. Our very years excited about We're company that. turning XX is

the We think we're are because having we're tremendous is and And I that what be, sound it's the industry. in trying to in best results. operators fundamentally

continue to do. of be So and challenge and best we what at the they've what the group I'm very us accomplished proud will to all

guys. Thanks Great.

Thank you.

the comes David question Palmer next of Your Evercore with from ISI. line

Your line is open.

the seems A third congrats. back in half. were time. question you the that Last I inflation And and think thinking in close more quarter, cost Thanks it you quarter. to the on one were X%

be would inflation to of is it or that things? coming to what a And those down are is I'm wondering, down beef range like that's XQ. guess the starting perhaps things that in would I right, be more mixture X% if XQ? easing X% in come So or

Part of of beef. yes, it, easing be would

some seeing big of proteins, basket are a You're which the part other on too.

wasn't see interesting all really a to in item basket. the It X on that of – You're starting was And particular occurring. XXXX the it's in inflation highlighted basket. some over just because the such

again a of softening see kind you're of of across bit the So board some help as seeing little of kind that you occurring.

and about a the items you about on And That's other the some I of the for XX.X% can saw about there. we expect, to we Obviously, are going – of be in what be and QX thinking number a this you're might it's as year. for So basket, beef, where kind on that other David, items some lot you too. into than would would protein some lower non-protein back but what quarter.

Is these to Yes. have in, like of could year it you do that them and It you buy-in at – very the is on more up ask in I where this? was for guess and if these coming right the see also right I'm share all them the this the these? accretive? if the completely timing I you of other might predetermined giving you've And years. units curious random, you able a can to this mean, of to feels And what from gift been the coming wondering have going pay second of you buy buy it. thing see the prices. coming to you was benefit I sort keeps you prices due franchisees, I'm about Thanks. the be

do Sure. have perspective, historically, are use a just There predetermined really But have franchise we in stores to included sales those really based – from agreements. that. do our EBITDA on an We negotiated don't isn't formula. perspective. a deal where we It's

into things just from shape stores. assets valuing come and teams of the as Looking a we're at the them how different those management the lot the of and building and play

than because partners, and do of to how a just them they having on clean consider timing the anything we from So of then owners the a the up year been at catching cutoff. probably their And start always to else. with things right need path talking always for we've and talking And like the buyback. the We're time really, that about are us. more honestly. just some it's down driver going of what that if conversation it's with beginning – our we them That's of franchise we're nice

the of a been to like but some think and of two it been that, year negotiation continue partners, lucky get So really be we've beginning And that those years deals. good do opportunity great great franchise is the to each couple to we at our we do have A a pace. feels deal next for to they've partners. continue of partners continued done

bottom – week it's to definitely so very a And is And add, want restaurants. about overall, X% it X.X perspective deal to a be win-win it accretive what X growth to store – from will we this is very so And situation. from X.X% then line. the accretive. It adds

really deal don't I both for talk or too I do multiples parties. feel, much to really we want some like as So about to purchase prices But continue again, negotiations. it's a good

you. Thank

comes question of Your with from next the Bernstein Jeffrey Barclays. line

Your open. line is

are numbers. seems XX%. whether on through First guys the of sequential any least wondering at October third the guess, the from I'm I I range seeing macro and think like just question in you there. quarter, the slowing was the that based the you masking the It improvement just trends. within know eased, there's comp on a X% absolute comp September

to quarter or implement compares And into to or get you initiatives think Just maybe might all? seasonal think going trying any to a were you a at return is that some what you if this slow, if whether wondering trends there of softness Just underlying whether it's XXXX? sense patterns?

Yes.

just I was would hair to a for think tick but that September, maybe it comparable down August. it

same trending season, so sales, will and card continue, really as that head very, we far, from into and holidays going of the as card on it there. creates holding holidays get which So X% sales and momentum there. now, will to and it XX% close big in looks we'll the looks we right I like we we be a to gift have push put that into the but lot our we're November running going from like how we're probably of very into fun as things expect But see well go – and think to that gift

they'll could for right doing wants now it. we're So and prepared change, but I to consumer it think what the keep us and executing reward

you lot October little reason. I back you same cadence, to too can't you tends softer. August, is And and for tend think Jeff, into much look weeks, it's of I'll and little looked there you, a tell four we at go September soft, it's and then far to the tell it. too, kind go October pattern higher, as to as – anything just be really be But July you, the XXXX you I'll when back a Like at whole see a when that read there? number

feel of seasonality, holiday just said, along performance softening, like that just heading with Jerry So into it's we gave confidence. and things some I mix about And like really to say, and feel that doesn't season. overall hey, as the me the think good,

meet approach you there's of about specific implement what's coming you you Got bit might to a trying don't stick or know would more the how take? it. see customer, Or And were to is if softening a months were whether go or in there true? as would initiatives if different any quarters, addressing little you pinched? driving you who's feeling kind I that with you

time a little there we components or a continue that really early we Wild harder out that early on. to on or needed West with on bit harder West dine could needed couple dine our to do a get that Wednesday Wednesday. we'll we things our could press our – think, that be if more our I be if line We got and Wild Well, value press little even the key we would screens two aggressive of

stick think or point, driving impact keep and then that it what and some we we what if know softening through had at that. that was it we if just I overall would want definitely take Yes, were to a was we it. do, what doing we work we doing look to know And and an was something just at

you as to out pricing the inflation I see a inclined into in whether were clarify I just in again, lastly, wanted third into XXXX, the as take maintain thought, Thank clarify, we in what price April to, value no you And it going if fourth real to just think played X.X% you was if quarter. to inflation it. be can that in were you April to slowdown? increase Got we would you expect you. trying if And play early said quarter? expect Just out incremental not that would window. you confirm message

look and said, what's our continue February looks operators you Yes. environment see right to talk in I we'll the to March, business. what and at the mean, like for like and

I think the for those at to consumer the see been for opportunities right business. thing thing look what's always right inclined the and we've the and two pricing

start really decision little now process. that on that to – February the time. a at based in follow investigating our working we'll for be April right we'll We'll make So early environment to in us March that and

QX – about and it's at pricing, QX that Jeff, obviously, X.X%. was on And X.X% about Yes.

I too. the numbers think for you're asking were

you. Thank Great.

Thank you.

of Your with next Farmer question Jeff comes from Haskett. the line Gordon

Your line is open.

rational Thanks. McDonald inflation segment, promotion today remain a, do backdrop? has discounting you peers touched guess, the the food but on dining your from to fast elevated for I or expect casual perspective this given

discounting. fall it We on discounting folks you just don't trying they shoes I follow saying easy want truly see I over to be back far think if This as that speculation. away what don't my their from I as in hear know. really to others that you mean is wide stay I kind where sales. were to would perspective. drive doing of can from are it

things and Jeff, discounting like You that from us, know, we away from stay that.

it's follow even standpoint from not we So something too much. competitive a really

to XXXX was not came XXXX on then but on another harp XXXX. versus their interesting up question earlier which the business, call much, McDonalds sort And and Okay. juxtaposing today, too of XXXX,

mean, outperformed. were You XXXX, through in recession, go to someone the lens but year? think the guys performance of recession business go guys a to XXXX, what I fairly you next into in happened the had a about a well. the if time we Roadhouse should did how dining hard got in we casual recession we If into that U.S., theoretically

came I traffic. to of would the longer. with little is, were hold XXXX, XXXX, traffic we in had able on in, we we we think later to bit point, We little it I think in the that way a that. think Remembering back a negative came

really for is little the fact that there. XX positive that speaking menu maybe I the focus a traffic the think, out And value that, the again, benefit came years is we of following we us the And that bit earlier. we thing to in generated on big have out coming growth. then

important. So so is that what's know consistency we that,

guests really, about the maybe far more experience. or matters. do to off we're a the know as great that's the wouldn't we cheapening things it's floor We labor so And experience, going the give as taking continue what to

XXXX, the market I look think back today. you because when little really of different aren't just viewpoint, it's same to XXXX is. and from labor my where And seeing labor a the market we

what the it and that's as So guest just how demand and it. would works interesting costs of be kind be we come we that the little will see that a experience, is. bit. if down of would great control enter you into does the even impact But play coming I can a think what and Maybe out, – is the we give kind overall, we way down

Yes.

and deliver still to And experience That's operators the us or adjustments, on our the volume, we focus company. same for be. rewarded food on we a from in our component change if whatever you ten the happen, have on the the to what ten-year the that didn't that we from expect the you where And would make were promise. portion has great experience. delivery after, prepared focus key sizes, we years service the got or commitment is and run. didn't the our consumer the led are the if lose that we door times same to adjust were is coming think And tough ready, through into that's I us for to but is for your but we

Helpful. Thank you both.

you. Thank

Your line the Credit Silberman of with next question Lauren comes from Suisse.

open. is line Your

Just proposition the your on driven are comp to some and underlying wanted I you. what's quarter much gains? through value and getting is relative Thank trade down industry cost one any of sense to share restaurants? of the benefit how ask the I improvement into another October. acceleration by sense given guess, you the from higher

at but look that certainly we I is there way, have of wouldn't could opportunity. we it kind Lauren, mean, don't that – I be, in

is of strong. some think to-go continues I be it to

room we're with seeing on coming a guests a frequent still more dining even basis, back So in in the week. holding above XX,XXX to-go

think So, lot. means that a I

guests think a I us we and who think so XXXX in then, And lot we're guests. XXXX up holding until and know didn't of I picked those onto

there share. kind also could speaks to of that of down, the what I check. out it's some a those I but, to Maybe seeing in on higher speaks or consistency prove offer know the higher in door. we think, continue think that trade that I hold So in how to that, guest trade be again that we and necessarily items the XXXX. XXXX from you But it don't see of into do the some coming guests are guests some overall keeping and and up just would

might Roadhouses potential, Thank you mentioned Great, that. over have see you for for And you time. I Jerry, the potential think, guys now XXX the

I seeing so, think from XXX if confirm, just can to increase this incremental closer the about those an is XXX you you past, And just growth of want some are talk to where you've historically talked to what in historically? communicated opportunities? I so you've

some would see communities And we probably we're to the that allowed us able to exciting that to that then see really really Yes, of we that go do the and because because having upside we tremendous the number. absolutely. in we've in the communities of changed believe success success. typically, do is it smaller smaller number and of the up areas We been that some

spot all which the means If at that us, So continue right we good to that we it number. and find the landscape, with works us, to continue can we that for world get opportunity. to do that when we're look a the think going we we have to

you Thank very much.

you. Thank

comes of line from the it, with Dennis next Geiger UBS. Your question

line Your is open.

if is curious Great, another state the have work a or across share of demand. strength as as one view of category category but you just Tonya before, thank it seemingly seeing Jerry, know sort it sort you going a to presumably sense the if you if part far And to if date success, category? the for on category done of you've the have sort of you, clearly or the this demand ask I how consumer? wanted is to and on has brand from spoken broader equation within the stake the that think surprised tremendous you. broader I that there about you category, but you've taking about the thinking the forward

also. having Well, I competitors that mean, the other are know They are some not success doing we're I maybe volume the doing.

value that works better to me So we're from a standpoint. me a whatever tells doing little maybe

effort staying it, really offerings, focused food of I consistency, plays And I we out help So consumers. and of drive that put and our that. think will piece the taste it. time lot mean, the disciplines routines our experience, our a made to of it into from think, our the our is on all in scratch buds of I

But we fight dip for it. that's as win and the that you protein it potato love by the way, potato winning people And we're will battle. think we So game. continue and a of a low way [ph] I to salad, the steak win

the the days biggest more capacity just maybe week, maybe days across opportunities and maybe it's of Tonya, I of increase across hours to traffic, spoke think, to it's strength of you on One kind hours. the Absolutely. of levels an the week, day.

opportunities, all couple the the have traffic biggest on kind those of bump outs, just could last opportunities. maybe perhaps we of I'm think it's the if strength touch it's of that Thank years. curious you you plenty sort about maybe curious of about capacity as Just across But you. seen over

that the sales the that to continues of same stronger Sure, the yes. the to It be story drive strong ones traffic. are stores have continue

things And how that have know would in they’re traffic through of or think they continue and ways know KDS ability capacity of doing out And and the to to great mention, to guest things thinking they company. continuing and on as who different think to anyone bump And have stores. But on they’re overall, yes, avenues, I ability that lot whether potentially helps systems whether about. its has the outs, management we traffic. side find the to mentioned ability. seating a from would back adding them don’t is every seats, I weekends. a across kitchen. house anyone I would standpoint. I you the tell that a so in of say have it’s to the drive you roll go. to you The way all And see overall, that I the managing we’re way technology of strength I That go those obviously, we doesn’t – continue operator hit the think,

you – still think can in continue to always think I can mentioned that’s you part. And the opportunity, I time. see Jerry earlier day busiest as our

You have a bit in there’s opening because stores some little the cases out lines door. earlier

ways continue I still out. there’s to to our confident going a to continue to I and very operators lot figure feel So are traffic, of that think drive

Wednesday, exciting. – would is room we Monday, which And I Yes. know grow, to that Tuesday, we have

are hours X help as segment mentioned get But business, focus very early come to which We the X.XX continue X.XX. to XX are X.XX to Saturday in from like Tonya X.XX a awesome. our a get focus maintain are can opportunities on little And even later. know us legendary those well great little busy, or in That’s was we also is think as and very, the a earlier. I lunch. to on bit part for that to that we folks can folks and of

think, are But to run outs, the invest in other an hours there There business of can on more Our we it’s And in to work seats are but nine segments area – too. we definitely the can lunches, and we the that the all is that the help capacity that. I of available things or Saturday really we’re that there side, bump shifts. do, continue continuing strong. us, XX

at bigger higher a which the level. relocations are serving restaurants, really Our are community

grow continue When we’re with that So at the build sales us a level we store seating opportunity to relocations. to shows the we’re an about get at. bigger can excited we that more the

color. Great guys. Thanks

Thank you.

with Your line comes Stephens. question from next Joshua Long the of

Your line is open.

my Great. question. Thank for taking you

just on what points but if was different price value part protecting of coming back touched that I culture, of to how call, the you keeps huge of outside service. overall the could guests curious a think about That’s legendary in a your you couple that. menu talk about proposition You’ve

labor just and of that about. so And inflation the members you’re some your experience are curious for culture, above if that in there or aspects that where beyond areas talked we team investing

I create think and about what mean mentality people a we’re focusing have that being a wear people for really how to I and an environment really it. our a people-first it’s we’re means that our believe got trying – uniform doing employees, create Well, to we to company we and our that And want doing in on and to or mindset logo. that that

food making our from scratch. We’re

tour, every around region committed And going high-level us culture. a aware a That’s business of hospitality We’re of at running the and can one partnership. bought our and them – our the to of to traveling state, out MPs and very talking hearing. community, every are fall and high Every are of of into doing business. that us I we think and their accomplish how It’s being level. listening and their what partners part our help a what part needs level

execute be. Our folks our role help always think and take That’s How I do center a culture we here So everybody? it level our the how management and each will how employee, hourly of of part successful, knowing to helping an a be big partners. part care we of about at the support is a whether culture, we or our partner. committed being be

one follow-up. quick helpful. And very That’s

offered very In terms out that CapEx helpful. was split the earlier, of

of and Or deployments piece across being those some about how pipelines just of and environment efficient of terms just some nimble CapEx bump cost of dollar just go-forward units? the opening unit current the some about those industry. how on new an perhaps be outside the outs? basis the lean you heard of or construction are you we’ve a or thinking can is opportunity about maintenance that think of you into Is As that and the where delays some to inflation in

working Well, need. up, more facility we managers done we’re through to with that making we are projects really that a is to go process pretty our it and and market regional extensive sure budget, coming they about the know and partners get what our

maintaining to to as is one sales, assets, that a do So sure what that’s certain know focus. more goal take the amount need make when much money Because our assets, we we spend. we’re to not a really help have care lot. the number those does drive It’s It’s it spend. only of can about about we we of we

that about CapEx. what on really when think focused that’s we we’re So

cost a jump things, few to in living try inflation, if certainly to in we’re don’t that. right times even push environment. We care inflationary slow little of think do think a from taking I I an see everything. we want opportunity continue now, want to to we’re sure And we some necessarily on we’ll a of make But to and more perspective of down. bit that

things in to down, just with year. somewhat but what to environment were we’re it’s this similar to while, put living We costs inflationary I think going that for to be yes. XXXX they a so, going not be little And expect

much. so you Thank Great.

you. Thank

line next the with comes Your from of Research. Sanderson Northcoast Jim question

Your line open. is

great pricing. wanted and on I Hey, question thanks a on just the congratulations menu up quarter. the to for follow

correctly, you’ve price of through with the up I a areas Does throughout menu to I your come trade peers? think Did taking How that does up? houses or that with process respect and you October. late competitors? bit to of country you to game price gone that the position a how process lagging ahead talked your other were steak little go keep reviewing relative for through increase understand your if X.X% partners and to you

Yes.

I think of component want where a it’s we to clear be positioned.

our competitors? as that we look plate component we where value as well or So stack how important stand And and drives presentation. the food, pricing we do things know we Absolutely. our structure at do against it’s an when how we our and the

very and yes, know process. offering. we So an gap we making where sure feel is have through we that And our about of process go we good what our in extensive

in of maybe And positioning. back is Just of you’re your sense bit? or holding trending get the think that step that, trying a competitors a way to little with to

at. I and where don’t taking very they’re just know we’re what I that know we’re doing. with exactly comfortable

And thinking Probably the off see our keep focus. is like gap, our that about don’t we we menu, menu. certain on think I that items, that’s because discounting on value menu where Jerry said especially really

process. So that’s that is to something definitely important our

that follow-up forward? average exceptional Understood. eight unusually store to of quick franchise weekly sales And a corporate or the going regarding the call on purchase anything margin, Is anything might averages just there the strong impact maybe out units.

from they of it’s of cost group into insurance, just savings always being just just come large company from bit restaurants, sales average from what little the a like And like a a But bit savings to are to have perspective, perspective. get Whether a on able little again company little see sheer always from there’s we as expect volume. that a with bit overall, pretty good, And perspective. different company strong it’s a that. we from we’re a from going that we of a things perspective

much. Alright, understood. very Thank you

Your with line America. Bank Senatore next from of the of Sara question comes

is open. line Your

staying Thanks. have different, casual and dining you a if others. a whether type Texas them for relative on versus know late the compare two across you former with sample models, are that around Jaggers you But if to three than for just have lens and this. acknowledging as was a point fast frequency, customer Hi, are bigger about different different you and the basis. concept price customer given big question I it’s not for wanted or I of much the you or for the the thanks of ask wondering do kind I you casual, just the Texas. seeing across thank you bases. a anything Bubba’s, that just will,

customer. Roadhouse dinner a has has concept, Texas Well, that

I Bubba’s that. probably some shares of think

pizzas. and dinner and burgers lunch a We’re and

a roll of energy theme versus energy. bit are The in country theme and very both the little a rock and well. concepts So a

got running. it’s think we’re ago, months most X.X so sales what pleased both and we’ve opened one only seeing success stores We up we’re and Jaggers, doing. Jaggers. and I in with just profits and our five in very And recent Bubba’s

all the three it’s the we’re we’re food trying of and we’re very QSR fast experience. but – the that pleased side, So and serving concepts food that a in hospitality to create

a different. got all But all that that different. little It’s the exciting – pizzas, different fun. It’s concept. makes wings, it’s offerings very a it’s of an burgers, – just vibe. energetic, bit is it So we and have three Bubba’s are

pretty it’s fun. just it’s absolutely So Jaggers, fun, man, good. And

three as noted. then across day the service? current depending you That’s parts and on But like you. or different just sort strength said, sounds it opposed all environment, of addressing, kind to Thank consumption of Okay. the seeing casual that patterns, the fast in kind of versus – you’re terms of just QSRs, again, like segment full

Roadhouse mean, Yes. I both Bubba’s the generating growth. traffic and

So in that’s little really good does. the menu than less pricing to see. Bubba’s has a Roadhouse

are little early really it’s lower looks comps Jaggers, really days. a of traffic from because perspective, So But that. a good.

and good four have we seeing restaurants. are success We

them. concept success consumers good from I a that said, the seeing lot some good some Jerry really lower that. and but different, the seeing with a as learning on and So uptake uptake we’re is it’s food drive-through, think it’s in consumer – And phenomenal. makes on check, that resonating bit It’s a obviously, it really average

of That is very good working. food, good Got much. it. prices Right, sense. makes Thank lot you a

Thank you.

from comes Markets. question the BMO Andrew Strelzik next Your Capital with of line

Your line is open.

and thanks I’ll squeezing two questions here. lump you Thank for in. me together

we partners. about that the rounds question that tenor environment all? Thanks. do it? more several were this with, maybe environment, the food given into you a maybe are those your in less you Did of environment time the that value which of those how prior go or as question. on then And had you very home trends the around conversations excuse at me, the pricing dialogue foot lot think inflation strong. the to is conversations? That’s kind first The change would the any is the consumer the you see much value-oriented. of got that preserving note if with at Was the versus more But about a Would equation? facing you value proposition, you’re Or the guess pricing that conversations go variance obviously deflation second an risk just first change way in and I kind there the maybe of very you’re comfortable where on And we the feedback? of away, saw

want last from experience, don’t elevates has see out I’ll for. – out think. that X steakhouse, a you, great you haven’t that that’s don’t the seen have lot we’re and which home people’s coming have to And second they’re historically. the Food necessarily maybe of Andrew, and on all necessarily I that. the what They the other that, varied or away question, over that expectations way steak of come kind we years, and a because from and

I So play at much value them it. some as for doesn’t see part that don’t know could it they home. be a when food of sure, in for but

that I’d I took perspective. then tell your kind talking see were of way from the and rolling we part you pricing question, off. you, of I say first So about it the pricing. what’s And would would less that’s

inflation being things. go I continuing things the the with pretty on we all up a some speaks are and to think labor of how those standpoint, from year uncertainty commodity to that ago and when big operators and facing particularly the versus comfortable were looking side,

top their very feel good the do They they do to overall, good. think was I drive ability about feel So tone traffic. line

Great.

comes question Raymond next from the of Your James. Brian line Vaccaro with

line Your is open.

Hey, thank you.

me. to just ones back sales. two Just want on for quick I circle

You obviously saw last months. a three nice trend three over acceleration the in year the

cetera, think our et be to fourth that As shifts, Or or you anything assumptions? reasonable Tonya, which unusual calendar about working we is run a quarter rate is of? think about there QX through should mindful

isn’t really a shift. calendar There from anything

think Sunday. for shifts Saturday, Christmas I a to Saturday Friday, from

that So it’s still event. kind weekend of

because there positive could be So thinking. some a bit we’re you Friday, lose benefit, little not really but maybe

lot positive, not whole Halloween in going perspective. be a really Monday could a from to that but a building from Sunday we’re slightly So

So I anything. don’t think there’s

the impact lapping Omicron are kind of We year. from last

into this That’s a head So February. mention, so really we of the I rest Brian. all positive January, be quarter, as we that can think think for to could

are OpEx on in turned could starting are line, you that line inflation line in And that recent given that digested I’m year certain you if other to Great. they’ve years? And inflation the that some been unusually high see you deflationary, if think not Okay. in very how line potentially last. and about costs this curious high as flatten plateau? out, XXXX, there in

I mean, always I think that’s possible.

to just items pretty some big they in the utilities, – volatility. to tend be you’re seeing of tend of waves think I their ride they

So we’ll plays see how out. kind of that

that benefit operating Some mean line of bit the the GL say. had. on masking other a is of the is to The from because is that positive reserve masked that performance we benefit of some inflation what insurance I

on So we a as easier just utilities, equipment. are little to of some there still we see is of credit side, types a see. usage supplies getting processed, seeing continued on inflation the R&M cards, card payments repairs we’ll that That’s credit Maybe on less charges. little easier. Maybe more hold bit a and are get opportunity It’s get maintenance. the

So early but I I to think say. to too so, be might like it would hope

Okay, alright. Thank you.

Thank you.

Tonya turn questions. remarks. are I’ll the no to Ms. further closing call for back Robinson There

being Thanks, tonight. Josh. on the everybody, Thanks, for right. call All

out. everybody, have not a And good hesitate do you to Thank If have evening. questions, any other reach you.

you. Thank

today’s call. conference concludes This

may You now disconnect.