Texas Roadhouse (TXRH) 4 May 232023 Q1 Earnings call transcript

Good evening and welcome to the Texas Roadhouse First Quarter Earnings Conference Call. Today’s call is being recorded. [Operator Instructions] I would now like to introduce Michael Bailen, Head of Investor Relations for Texas Roadhouse.

You may begin your conference.

Thank you, Brianna and good evening. have ended our March should the release you quarter first XX, now, access earnings to for By XXXX. It our may section. website on at texasroadhouse.com also in the be found Investors

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

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

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

be prepared to question. to order that accommodate remarks, everyone we the we Following ask to question, will In questions. to answer one to limit yourself a kindly like your would available ask please analysts

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

evening everyone. Thanks, good to and Michael

As we many anniversary our know, of our from with celebrated operators. XX-year partner conference, just our returned managing you where we

our our shaped and time legendary conference continue will mission we food legendary to our our of staying While focused our on service. took true to be honor future, by messaging some past, which was to values and

in was quarter, during weekly in $XXX,XXX operator’s than by was both commitment first And our and during guest which sales. sales in earnings. to-go more quarter, including the restaurants highlighted Our counts to mission $XX,XXX double-digit same-store our record sales, the first and averaged increases evident

also levels and Increased in to focus levels, and improvement on thanks high continue quality and legendary our top our standards staffing experience. delivering staffing hiring, to retention training food guest We us our momentum a to are maintaining line still seeing efforts. allow year-over-year

commodities projections are side experiencing we remains areas competitive The side, expected. it are as performing has line environment. keeping mostly on tightening persistent the some with inflationary is as the cattle while and other are business, inflation in On elevated, the basket. been pressure pressures hiring supply wage we overall a moderating of cost our prices And labor beef our of in

development, As Texas X for Jaggers, the first opened company-owned the international opened Philippines. and addition, X franchise company-owned quarter X we in Roadhouses in restaurant

We franchise restaurants completed located Maryland of also quarter. of beginning first acquisition X at Delaware and the in the the

X open XX as At Texas this year time, to we restaurants Roadhouse this expect well to company-owned as company-owned XX to Bubba’s Jaggers. XX continue and

approximately are franchise on domestic to Our including track Jaggers. open partners restaurants, XX X international and

We the also guest to technology at wide. Pay, the been continue which table rolled to now our out and operations company both improve is our pay Roadhouse has experience. in system, invest

Roadhouse during convenience also and sign-ups to guests the VIP allows and change to for addition period, gift cards and us sell In Pay loyalty promote check the club. redeem our cards,

kitchen digital restaurants Additionally, of a other we success and times, this digital The convert and remainder and the majority allocation, continuing having and capital continue the cook during kitchen some accuracy our further our order grow the we dividend to flow repurchasing to digital our allowed openings us position will of system year quarter debt. by are format. our operational our capital strong of existing On cash repaying by our to with improving great efficiencies. generation XX%, shares, strengthen include

shareholder allocation strong capital our us over balance acquisitions. long-term advantage, with create in taken allow capital the will sheet franchise disciplined actions our million the we Importantly, strategy believe we ability to which to restaurant as a business, and and on these expenditures $XXX our business were reinvestment reinvest generate in all competitive Overall, together spent our returns.

to out Brad I the Finally, shout want from XXXX Station, Apgar, a Managing Partner Year Texas. of our give College to huge

XXXX. the named I Colorado want We congratulate XX to for from Covington, of Rob Support of being first Springs, Rob both ever also Daniel want the Meat of Partner Managing named Bubba’s the as of accomplishments Zero their XXXX Champion for Hall concepts Louisiana, our named to Steve Roadie Rivera our I for Center as congratulate And finalists in well and Year. Colorado, our all Cutter being also Year. Brad and

the that and future time a week XXXX. have we fun. conference our as the our celebrate importantly, energized performers, our focus returned to a all already is recognize with for have operators, can some ready home tell After and Our of you top spending successes, just on I remainder

Now, Michael our walk financial you through update. will

Thanks, Jerry.

increase XX.X% the XX.X% grew diluted sales to $X.XX comparable grew for per share. and a increase revenue check. quarter, and and March in Comparable X.X% sales volume share by month, margin increased in the XX.X% week dollars XX.X%, growth. February XX.X% XX.X% million, growth per By XXXX, to X.X% a in X% driven For first average while $XXX.X our X.X% increased January, unit quarter store grew average traffic respectively. by earnings and driven Restaurant first periods of XX.X%,

the first weeks weekly that we the the up X.X% at menu beginning second quarter. of the second sales X comparable the sales X.X%. This the quarter, with includes $XXX,XXX benefit took price for averaged And over of of increase

to percentage For of quarter, XX a total decreased as points basis sales the XX.X%. margin restaurant first

However, were believe high $XX,XXX. restaurant per hit margin store all-time over relevant and is week, an a up metric X.X% of us, dollars for we more which

commodity driven of cost than beverage XX.X% by was sales the This a X.X% and points higher Food as total basis quarter. first were percentage inflation. for XXXX XX

As expectations our locked approximately the locked line and QX X%. of X% unchanged the With Jerry to for so with XX% in in approximately for have overall year. at commodities commodity our half back guidance XX% this basket full of been year remains far the costs mentioned, year,

that guidance. basis be to inflation as labor due second we a and decline expect Therefore, XX sales expect reminder, a percentage as wage unchanged, total that to between increased the would level of was inflation range. of we dollars due through first At Other year-over-year as from of the compared current of store quarter of points move of inflation but year-over-year of rate put and labor which lower hours XX.X% to year time, year. other year X% to compared to as other per quarter us Labor As X% should wage sales still to basis Similar commodities, increased moderate of benefit XX.X%, full unit continue we comes the the growth of X.X%. full Most of our leverage closer moved to we high-end and and guidance higher Labor XX through sequentially, the average trends the to as year. costs operating our moderate of inflation to labor sales XX% first this remains primarily quarter points XXXX. were the to but week in volumes. XXXX. inflation X% the XXXX above

grew Moving and expense, of below revenue. million restaurant of approximately the year-over-year G&A X.X% in million one-time The $X.X cost. compensation G&A driven $X.X including of by at XX.X% by increase majority came expense year-over-year higher margin, was in

year XX.X% Our XXXX effective continue and we full the for tax a expect was XX%. quarter of income approximately rate tax rate to

by was restaurants. to the X million of capital we more regards debt repayment, cash. share $XXX than quarter of This million franchise payments, offset cash million $XXX expenditures, was $XX $XX the with from ended million. million $XX and of first $XX acquisition Cash million million flow, dividend of Lastly, operations with flow of $XX repurchases of

$XXX remains expenditures for Our full approximately year XXXX million. capital expectation

Now, I will to turn for the call comments. final back over Jerry

provide key the plus loyal legendary and in call want success. service. Michael. Thanks, allow close I been roadies, as thank every them with XX,XXX our legendary us who alive and I who thanking our also our vendors to want to mission well have keep and restaurants who food support by continue our the as to our guests, shift partners each to

our Given value flexibility in to future. sheet, performance strong balance our lot disposal create at operational the have leading shareholder we of industry a and

was future, will riding and always feel history, the could while are recent our our honor theme promise the future. celebrate that we like of getting on started started. getting Speaking of you I just conference our we just we

line please prepared the That questions. open concludes remarks. our Operator, for

[Operator Morgan. Stephens. Long from Joshua with Instructions] question first Mr. you, Thank comes Your

line open. Your is

Great. you some forward? focus are have to the if broaden strong drive I or some maybe curious points that and Thank about starts was as the allowed well talk your you a that legendary that guests you questions. quarter. broader during But overall experiential set reach can menu with to resonate of component well-known balancing value of for my level curious the going your for of you. Thank initiatives could the other helped if store traffic with Obviously, taking initiatives service you guests. at resonates legendary the food,

experience house. hire and executing just and in, ability them believe of night is will whether Yes. as on have and you, they the staffed train focus retention always be that more Thank more as able up believe shift get our running I more people on to shifts experienced and about reps great and and it get our Joshua. be get and real back that our that them of are we of our and down it for people a I to and thank the truly the execute that coming front the to or get house the really for business looking joining they comes to focus. been

a is Thank component much We our target success. key line continued that. staff to Getting you. are on top very for

next Your Palmer with question Evercore from comes David ISI.

open. is line Your

for I you are that above get couple long-term years. we the we stake XX% cycle inflation there. to but next range, margins Good think probably you being a and the I am are to how in committed might with are know evening. through be of XX% trying to Jerry, beef dealing in to average of Thanks. going framework Obviously,

the other be that could to I little and are Thank offsets range that while wondering, we you there that, a think internally with or stuck happen fine. case, I bit or we you that like if wondering that’s that’s for environment maybe could you. am even happening a you make am get inflationary likely there might is see? just below Given an think But

David. thanks, Yes,

looking get back We how point. are to to that always at

We think to from QX. made have progress some QX I

a that of area, still little we have year. when our little kitchen. enhancement the some the going we the a to us food of inflation, teaching bit the kind labor and be can higher, and holding bit Although even looking the to is is maybe another little definitely talk our that Pay we a what through Roadhouse level digital in expedite but of turn. like to table a do, is speeding of faster service it’s that’s inflation, hope technology the into rest we that Beef up a improvements Michael little to know

we guests we get So, can which building that many have day, are continue the us get allow to settle us elevate doing to several obviously that. given back help any as inflationary things through to pressures the will how to in

about our our well restaurant extremely and to We continues do are line top really dollars excited for margin us.

are forward. what continue we the to and efficiencies we learn look can So going business the going to focus to on have of in

you. Thank

you. Thank

Brian next question Your from Morgan comes Stanley. Towsen with

Your line is open.

you of like of example, have observed initiatives there. you of in fact throughput elaborate Jerry? about technology the place? these am there seen as Good you you that, And about hi on turns? Roadhouse some stores you that some measured with specific the faster say kind just things the Is kitchens, for digital table evening. there? you Have Yes, could faster in curious have I then Could put anything Pay?

Yes.

the On guests convenience. Pay, in there can doubt the our is at Roadhouse pay their no that opinion

they the if on is hurry, on not they check table. It do to are are change. available. anyone and a is So their waiting readily It in come

from not from but feedback guest, only great gotten have our the We operators.

definitely So, their execute absolutely the to that own. want out get to ability guests and that that have they the we believe in on

now, two store running more had conversions. we On we or then to Brian, should in kitchen, that And store time. the converted openings and all we will even really turn indicators new to should some which to. it the openings food XX up do XX do we timely have year, looks restaurant like of we that might going see the are another window it the approximately and a us hours the are we that, digital And X right this of time currently. And that new like and us whole said all our if help save and hitting very the indications can us then And the power right our save time, a can half manner, minutes. now. all it’s We early

the about side some house but of we is of seeing efficient So, overall as on that’s we the we digital when help very what efficiencies what do more be seeing. is kitchen to more from the production it seats from are getting encouraging right us of how the how the that, to comes now will our kitchen. technology it The a back are and business food

Thank you.

Thank you.

question Saleh Your with comes from BTIG. next Peter

Your line is open.

Great. ask about the question on and I general. just behavior in the want quarter. consumer Thanks congrats the for taking to just

be or negative your you all? maybe any in up, up menu? Has think over would all spending mix quarter Thank helpful? at are numbers, guys there you. how I that down. behavior the down the was past they trading soft in consumer change Are and using or were at any seeing Just alcohol been details there some two drinks they trading around

Peter. Michael. for It’s the Hi, Thanks question.

March that I There previous and the side management. have really a But during negative, Texas guests seeing that are going trends and steadily at guests mix which the starting the have some a negative entrée new a in I think I change see in that also we who seen February the check not certainly we Roadhouse value little is can am of time we and menu. continued we remained doing alcohol as maybe bit mentioned starting some on few were of think that seeing maybe into lot coming be things. mix the lower in that, category, call, seeing I are on negative has April. not but period, still again certainly – to into a of further

But So, it period. certainly, it menu that our increases our steady. do menu during is pricing has to with or because we’ve have we price I held think no don’t anything change And the very that taken, us seen tell positive pre bit But comment extremely a to volumes down. want with a maybe our I’ll still of we’ve that relative trade seen end guest’s people little be pandemic still levels. mixing at to Roadhouse.

now just watching more. that bit little a giving a back their bit might So, be little we pocketbook people are

Thank you.

Your next Barclays. question with comes from Bernstein Jeffrey

is open. line Your

the Great, locked on potential and on we bit related give beef, wondering little pricing, thank a you. the what look The color rest question just you’re beef in to as you of can on specifically more if and reserved inflation. type in past more price keen was price know year. and offset management really maybe structural, take I was like feel cycles, beef we mitigate to more not because to to goes up labor down the

that’s we won’t should a if the of you to sense take if it for as margins maybe that is wondering a the rest of traffic, beef year? in that price can assume I’m earlier, the So kind specifically that you. what was and sentiment just unchanged, hit let get short-term offset still necessarily around raised your is the and thesis you the so to whether this industry leading outlook Thank the for maintain just trying fully

percent specifics of your inflation our Hey, thesis other what somewhat our items point, I with And will tell Jeff, majority of beef be not get in-line has to think is, is inflation being for the beef It’s to our our with what changed, our basket you of down. XXXX. outlook into think is locked the it’s their the all, to that do last fair or commodity the moderate thanks Michael, not overall it assume see I’ll bring for is beef But time going the our we you, of has not half locked. our we basket will drive inflation since spoke that to really overall in we’re to on lock for question. pretty beef

menu I assume will we other we tends later for brought guest into commodities And on something the price component restaurant. focus which price in driving will But cyclical structural menu like we way inflation, the areas. of people for a deflation the And October have the I in do inflationary On offsetting more be year. we we inflation. think done point in period feeling period still be of about like again said, it, to we in and And is like probably foremost at pricing, for that wage don’t the look would first some about the that we this will and beef will pricing we’re But you to past. the time. up last tend items overreact

you. Thank

Your comes next question Baird. from Tarantino David with

open. Your line is

to it’s traffic labor. Hi, good I afternoon. My trends, look trends overall I step is come sales and get And increases, tends guess bit guess leverage a the when I what back labor question not questions it on related appreciate little seeing to that need Given to leverage would in So, line? the it the on execution? guess your on margin leverage you your when lean have that surprising performance. strength hours line? to take on fruition traffic I inflation. to that And we’re I add and see what we But the do and at and

thanks question, David. for It’s Michael. Yes, the

inflation some will that would on wage other to if we’re we high X% and probably if of to moderate. mean, we we’re I guiding that. need to going – the the say think to see said have wage inflation X% labor I of be math end and we

need for have traffic comes if below pricing traffic – helps and that for you the overall some number, which to menu So, staffing. need then us year you the our see extent is more we some certainly X% need would with

seeing labor what or why hours grow happens – the that that what happen we at there. first back will we’re not learning So or XX% be in something of else see on labor set to And your year, of kind half would expect traffic of still do of do the call will year last leverage that be line. that’s half weird the our on algorithm

there might get, So would you kind leverage able things certainly that wage seeing we to to a of moderate be be what determine but component learn to need pressure see. big that so again, to would

you. Thank

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

line Your open. is

Thank so much. you

guess Just a housekeeping I and then question follow-up. a

on as know, was sure I menu that the to of of compression in relative year-over-year year-over-year tried X% just pricing, terms X.X range understanding price, in increases. sort that housekeeping. margin of think make First inflation points I through mentioned that you I wanted to of terms price the meant in what I to is

of to talking in demand, caveat terms cohorts whether versus be not the trying seem the again, guess, that’s change anymore. comparison, And traffic candidly accelerated comparisons that components being But housekeeping. we you underlying about of just I And are pretty this environment sort with value any So know, might different of seeing on to number in I then in stack the Thanks. stronger, the understand it’s multi-year know, very pre-COVID of strong traffic meaningfully. relative any have to vary. the context sort I the just proposition are

Michael. Thanks, Yes. Sara.

we weeks the First pricing taken will it, will of And I one X.X% quarter October, one, what have think when and pricing had the take gets else by But will the your mention in question timing last same we weeks in pricing the fourth And X.X% on would second about year, to you then before like year, a for sales full QX, pricing given X.X% XXXX. you and the of about was quarter, given store we taken quarter when in quarter. that five have X.X% anything X.X% then we what number pricing menu. is, of was last have look have about only will pricing. the quarter, the that I X.X% asking X it the the this have that pricing, you’re will for and

pricing of the cadence for the that’s year. So

out that making the have us, basis. we are to is on very, I to are are negative of As way staff I into when to traffic us in we and on on trends seeing not which look far And continue coming guests our some are think And those are you goes bit And that traffic been serve year-over-year we there. in And regular mix look very value trading I at some that sure prices. in believe strong very we were basis demand at before entree the maybe items. the menu who little is operate them basis casual category, multi-year a our showing as healthy. business think or and careful of again, guests dining a the a

the gain So we traffic to I cost benefit that. and think feeling guests new continuing in environment are high our this trends of are

much. very you Thank

Your with Dennis next question Geiger comes UBS. from

Your line open. is

Thank you. you which could ask full percentage you see year to said margins, quarter, restaurant about think last I I for the I improvement, margin expectations year-over-year. think, want

update range. sort Just internally, the also the any then Any to have if there’s that. curious, it’s range level. assumptions changed you’re touch you. hours. that that of change you’ve if any those got of that components labor, And with Thank anything at The update maybe on just though, of high upper on to maybe end to is may able

hey, the And probably I Yes, where last are this you of And – see the continue Den, some assumptions most much since we to depend I has most on we I But spoke. in opportunity on about, the we top saw don’t will leverage, for decisions is your the other some in might like what said as biggest the upon I opportunity I we we think percent we and the as personal depend just year, see some just on on of back benefit line traffic. call, through to improvement, margin opportunity some fourth just And But in about it from QX. sales has ranges some for do talked to that pricing, half should last benefit and put line some math of have the move see with cost though, your we those talked start and the see see to percents sales of to the that. the there look see some growth. the do again, on moderating the guidance performance that that inflation those your for will mix year, levels year-over-year we margin is that will that that back that leverage think of of top Michael. think line. quarter like. year again, line say operating going up a cost changed that do you’re pure would think having against of to half the of opportunity think on the really

helpful. Michael. Very Thanks,

comes Your Haskett. Jeff from next with farmer Gordon question

Your open. is line

Thank you.

with You guys, in recent promotions, quarters your peers across more of have reported seeing but little promotional But rational gotten if I little seen not any A continued dining you what broader perspective, uptick casual it or with activity know relevant your do sort you head-to-head behavior relates aggressive as couple TV see? have is most in segment. your a that of competitors. any type exactly promotions? from discounting to of And steakhouse. advertising, bit Have some the

that that, We of do store there. obviously, we give those to dine But we folks of mean, technically within really out local get early a Wednesday aggressive little I pretty on bit that into our our early and of the communication being on communication. in do we that focus focused break they’re two are communities community. a on one lot West those is their side, kind of don’t that we a things promotions dine local allowed on Yes, And Wednesday. our

of there And consistent from some a Wild that And serve that bit are little them but from be are with trend to it’s seem present. a do. we things the that just that communities, and work according seasonal over all very that standpoint. pretty menu our that out side and discounting we’re early dine available to and the Wednesday, then marketers early in And items we’re our normal XX messaging know them. have for our here’s local us discounted and years been really to what We West for going letting about store

Okay. you. Thank

you. Thank

Tower Your next comes question Citi. from with Jon

Your line is open.

or that of seeing the of yet business. the certainly we’re guess, ask the that the some sort environment of real I some side the Curious and is lending thanks. the supply you’re any seeing, banks, estate backdrop translating can sites on of if I’ll other given might at changes regional is, environment, And in of Great, coming perhaps in. into noise any weren’t was discussions landlords. G&A in what with of quarter? follow-up million looked $X.X previously charge us because you your that in availability you that they’re question and just tell unavailable others I now the Thanks. opening And have the up then in have

of that we’re at for this all problem. at real The we deal, definitely way on deep of, no our real hasn’t Yes, happening if somebody processes X.X was stuff all. on in working with think, where a goes, comes pipeline a to to I system. estate $X.X one-time a levels on different affected us real changed with any depending executive pipeline, all we’re estate us – will going The got entertain usual. all recently or through but as that business at million any We’ve got time the years picking it But payout. estate we’ve where

Got Thank you. it.

Jon. you, Thank

[indiscernible]. next Your comes question from

line open. Your is

the a just if future had investment. inflation of a then wanted ask I to say about Roadhouse why clarification. I like of newer below Bubba’s, Michael, missed Bubba’s then volumes question I looks but point Thanks. company I the apologize growth. ease? well and locations you did It And a at Great. the expects are And to wage it, Jerry,

I think at higher million $X.X least a been Roadhouse. than it’s

development. to would it the the capital allocate to seem all better surface, So, on Roadhouse

love assessing hear how potential how and So thinking you’re you’re I’d Bubba’s about us? to future capital above allocation

moderate. XX expect that have through wages and that do then I pressure hand Yes, has we year question to Yes. flow wage first or to wage Hey, this of on will the to that it from the Jerry. giving months. lot a Lee. Again, Chris answer inflation over last last raises for year hiring people are that system feeling with year do we to

the there of the So rate of are year is we wage but increases pertains that what a of state from slowed took we as the wage big seeing just we inflation. There is mandated beginning this that component has – were that last seeing, at obviously average increase it rates. certainly is year, to

are lap expect year, of wage just further last we as So we pressure into moving that abate. the to

very And some the of the then that have to strategy we new year and of first year. last you foremost think that opening and Bubba’s people excited about store weeks. openings. first Avon we we But here to been put in have we have there. I the the really of and XX know so the has changes in And are place the as fruits we in for what Chris focus XX how one we seeing we labor that. Obviously, on a adjustments do XX will the are got and leadership our tell – in our months we a be made will Roadhouse We right in I couple growth,

that’s a had exciting. success, have performance XX very lot of very for consistent and We years over

We in are all on Bubba’s.

We food great have got there.

We what trying have that to and does energy are with fit really accomplish. environment got a great ambiance we and

cost got out building. the of have some We

things But bring on of that come are Bubba’s take we us some another holding to very growing good get, – think XX flow construction may end investment to responsibility plus feel costs would like to the eventually that down. but XX the get eventually we our XX there. months, some the we will we will it at to about and through I have as done down and

Thanks.

you. Thank

question Your comes Suisse. from Silberman Credit Lauren next with

open. Your line is

Thank you.

quarter. So monthly comps, decelerated they about the wanted to ask through I just

Can or might else? you compares as in us said you. driver January think you throughout it X.X% just help and have I down the unpack the anything of to what this Thank just what step quarter saw been you in XX.X% March.

Lauren, of grew volumes is sales quarter do think Michael. because I it we compares, it’s into through and our Yes, again the a even really Yes, lot as move April.

So lapping there. a see increase. obviously, don’t early has also you it noise when But in in outsized that the January at January Omicron of multiyear cause it, which in a I basis, really look on percentage slowdown

it’s come do number seeing are So Roadhouse. we Texas slowdown are again, not guests wanting the to like I we think certainly, comparisons to a and of feeling in the

Great. Thank you.

Brian with from Raymond Vaccaro comes question Your James. next

is line Your open.

good Thanks guys. Two and me. evening, ones quick for

you quite higher there quarter? much Just than could the for in the bit expectations conference were we put on guardrails in some on how GM G&A us second pencil annual thinking we your should help and in came a

talk we as that revenue the grows. bit we see bit Obviously, I a We of faster expected first little we G&A of back grow rate may maybe about in how quarter, percentage than if have described is cost and what therefore, end G&A in have revenue we that on where at we where not And Yes, what Hi, G&A. G&A may can would the kind little the a seen the at Brian. year, was the last saw a quarter. performing dollars there. giving this a a of again, the didn’t one-time

– the exclude will a back conference think we I to come here second. in

to of it remainder bit elevated a the we regards we is last as through move potentially at to we that I it in ballpark be G&A going – think will the conference, with right charges of quarter the took into a but could to as level as are of not first what year. you the year. see little compared second may seeing the the to in specific the in probably of quarter conference, will number And are have the get you

to bit I a higher be than So little would QX. expect QX

then math almost that. XX% cost like Thanks right, backs [ph] I circle just And other is week year-on-year. up quickly could if on if line, it the for looks back my per Alright.

of any one-timers might worth rate if an you you line? be highlighting end we what elaborate and the seeing lab Is new And that moderate? to or any start terms the tunnel could of pressure might update on and Just there areas you. there not, R&M? seeing any on could utilities are of at that in in you some light of those Thank are inflation

of category. we step operating point, items growth Michael see Again, quarter a last of a have And what doing Brian, potential Omicron kind in year. the expect you in believe unusual volumes were I QX not the versus it’s we what to to dollar storage, for to slowdown. so as top we with the in in Not line, this happen. those continued were there compared illness the prior of – that see that it again. Operating was, on lapping And may a some the would larger but I year Yes. year, think we slowdown ton did items. saw this other that last growth some on up from see at seeing big was to relief many the on seeing that of first expecting

utilities traffic we happen move of that Maybe leverage as other were the And see started and relief favor through the been I think So, that in some generate our overall areas. But maybe now, able that does volumes is to in that to coming – got have as yet. have. AUVs other the again, year. on that operating we we move the because we of right we some haven’t the

you Thank Alright. very much.

Strelzik with Andrew from comes of question next Montreal. Bank Your

Your line open. is

you think Thanks. but on are weekly are just Thanks that then the maybe an seeing Hey. taking driving really earlier Is into some where could you you hoping you Good dine-in the stands are strong little in growth know have back out for you questions. back bit declines folks understand spoke basis. I thought kind that the afternoon. or were small distinct of And relatedly, trend you maybe think those off-premise you there sales or a of you was going the Do that dine-in? that us week about I growth? seen anything within better some curious if seeing that and indications. average the help customers, into those

of first sorry, you I the I question, repeat Andrew, for can Yes. apologize. part real the quick me. am

You are still there?

absolutely. Yes, sure. Yes,

you really it are growth? during or peak it it seeing weekend Is week? Yes. So, earlier? where Is is in the the

It’s that. Michael. appreciate Right,

look I week. seeing As at a it, we seven are days growth,

day. are We in seeing early it, the

seeing night. We at it late are

during hours. are it We our power seeing

it’s that see strong coming think of but across it’s and into really days there a stronger on Texas to schedules to week, growth basis, very opportunity I is a bit throughout a learning pleased Roadhouse where guests percentage there. the maybe managing little weekends, So, on all their get which that’s the board,

down go, over into dining percentage dining into due would that. those $XX,XXX QX, be surprise some the increase in a week to me coming in seeing was hundred us. far the which that few dining and visits dollars only yes, sales. year. of the and is are our It And basis, room decline room to a guests per with sales room to and versus go largely on our but As not did QX probably dining We still store as of last now

question next from comes Your Jefferies. Andy with Barish

line is open. Your

guys. Hey

would additional G&A on you Just and just are an a annualized I be guide including on obviously mean G&A? maybe question, couple million an to the that the or so of there, housekeeping an X.XXx, be operational Michael $XX basis,

and use comparable you But move be think will where you to would more then you take I it’s line. that Again, the – in. as the through comes see in to could G&A number more assume the actual think probably that out, I typically, make it, then we that out what strip if year. fair be

Yes.

sure markets how May the then June? XXX have average we others, breaks have spring your make the and volatility seasonality in April from progress April from, of around some that calendar weekly to wanted sales Just to and heard usually and does of some in did

some Yes. overall strength, the we strength throughout saw week-to-week have seasonal I mean there may from in those movements still But been April numbers. month.

and or things not were that off, we early it’s vice so versa. fell And on, then strong

in, seasonality we a So, begin the winter your in like I you would Mother’s volumes in obviously if be than now be a for month can what there lower well, September, then strength our April tends see back as to maybe And were summer us. those early even throughout, into felt strong strong to still August, are year. you mismatches, fall a month bit climb into July, and but typically June, May there moving, little then up And months, Day, we come very they the the saw with see months. were

the are the helpful. that increases, kind of KDS, Very you you the assuming look well? at some both, back then there house, in anything front, that’s or And changes Jerry, know and terms things as looking I back are am wise, labor that hour equipment help at I at that in on of may can

Andy, how doing? Yes. you

really to you And our so on increases. that being I every fully a thing to think maybe that at a as looking of component and The or keeping prep number on become one staffed and component people efficient. more productivity can to holding because we less are efficiency. is their how really tenure, use their

have our to look staffing. as back continue we So, up will that, ramped we at really

Our heavy component staffing. is a

And to last the and business mentality couple we able high that level they we from of we have side should for portion pay our can in conduct that have the a at level more to line a way really and that of as executing lot have made to and years We scratch obviously, we always. business. us it, want get, be large time have we that from of commitment see legendary of efficient experienced they food, over to service to legendary as top homemade, heavily that be. food the And been to our is for get invested a more the dividends and obviously that productive driving the continue

much. you Thank very

Thank you.

next with from Jim Research. Your question Sanderson comes Northcoast

line Your is open.

rate to that to to to than labor, little go for be or make Thanks you in I hours going typically last understand labor the the X%? a in a it’s as the a higher quarter, just relative sure year will continue, you growth COVID to the disruptions, phase back see bit recovery get would the is question. that first wanted to I in reported incremental

in would say quarter. Omicron Jim. and is lapping again, year, Hey, our the QX lowest early is I of last one Yes. the anomaly in QX through with of the went staffing in This Michael, XX levels specifically

biggest I along X.X% labor – your I X.X% would QX. hour But out traffic in point with am you – hours guests think that goes I with X.X% sorry, hour So, aren’t, was also traffic along labor growth goes growth. that growth

a happens the have what line, you that growth, ratio but we piece some top rate. the I labor with remains grow. healthy, the to traffic not continue through is there expect will at So, to do get on will past. year, of see hour But continue try move as it necessarily far to we that to would of what we the in off to not would if

the about If calls, XXXX, away hey, staffing are think has business later pockets pockets our of say smaller. still there a on would quarter we we over of become about the some course how have talked say we better, would but And you those the opportunity. gotten

this lap in to result growth, with again, have still that some we levels. move QX right But comparisons strong year. in staffing are some labor highest the the hour the the business year assuming direction. to continues But point So, be will very getting the what should be think to year-over-year we absolutely for

And follow-up gap just casual – competitors or up pricing against single you it in the competitors think your would Just fourth does how Thank look quarter. me that digits similar? stack as How a pricing, for quick until that? Is you or Is stake compare the you at segment outlined how with dining? mid narrowing? question Alright. on if to pretty it have that. looks much will I be

will on we in would at that will look expect would we make in fourth information what say X.X would maybe, see Yes. And that look we more quarter, potentially October pricing what do is I which that I something with pricing, we quarters, you done. those that again. our period, our pricing purchase think others line at but do. below think have be if we other I NAP

data structural felt say some like would coming making the getting guests Texas sure a are below keeping We taking some that inflation focusing value that. we but into they our our pricing NAP mind have would are we been and Well, I of what for feeling. pricing they when feel have our competitors on confirm actions of of done is Roadhouse. And to the the at top and still business that they think are offset right

Alright. Thank very you much.

no Morgan. turn the at over are questions Jerry time. to I back further call There now will this

out Appreciate you and and roadie I nation with much. of to us very just want you thanking close being there. Thank all all

legendary it’s to you XX food that we and our every celebrated had, your time. evening we you success one tremendous of Everyone, year committed As anniversary and thank each service. because great legendary for a have of and have and the

This concludes today’s conference call.

disconnect. may You now