Texas Roadhouse (TXRH) 27 Jul 232023 Q2 Earnings call transcript

Good evening and welcome to the Texas Roadhouse Second Quarter Earnings Conference Call. Today’s call is being recorded. All participants are now in a listen-only mode. After the speakers’ remarks, there will be a question-and-answer session. [Operator instructions]

to Roadhouse. Bailen, like Relations of now Texas for would introduce Head Michael Investor I

begin. may You

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

and should I to remind not discussion be forward-looking include will statements them. would all everyone are our We reliance and the like of our statements. of recent guarantees therefore, placed upon performance, you SEC. future today with filings not earnings that part undue our These refer of release to

forward-looking a cause statements. factors more provide of discussion that documents actual the differ could to relevant those These results detailed from materially

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

appointed Texas On Officer Chris Monroe, the is Chief Morgan, newly call Financial me with of and Roadhouse; Jerry Chief Officer. Executive today our

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

over Now, the like turn Jerry. call to I'd to

Thanks, Michael good evening, everyone. and

faster to formal forward our working Before we and the closely stronger. join Monroe thrilled him welcome and to to Chris look Texas Chris with I make begin remarks, Roadhouse. want to have am family, bigger, us I Texas I to Roadhouse

not amazing last beat our for a leadership the thank I six up to am financial our I also is Chris and our we over months. ensuring to that stepping Humpich to confident that company. team and did and Keith team, value miss going finance department add our want

quarterly results. Moving on to our

sales and We are the second growth profit quarter. with our in pleased strong

first commitment serving continue up that scratch we comparable made support the our food in is as Our nearly X%. weekly and in with to friendly over to from doubt our quarter averaged guests sales sales a fun $XXX,XXX carried There over sales momentum no from atmosphere.

largely performed line driver and of remains On beef the the our expectations, in with have side, cost primary commodities inflation.

the are properly On legendary ensuring front, staffed experience to to a every committed for guest. remain labor provide we we

by continue the expect for remainder strong of are margin to the encouraged run which we to is how as dollar year outlook our growth, We our business. we central

the will We menu determine pricing normal the our take to level in to soon with operators begin process October. of

is our the increases. wage typical our wage to state-mandated maintaining while us, any offset value including As also decisions impact for will pricing looking on focus of proposition inflation,

two one development Texas the front, and opened company-owned Roadhouses we On

Bubba's the XX quarter. during second

franchise our addition, In partners including opened two international restaurants, three locations.

For Jaggers. we and XX open the year, as Roadhouse Bubba's as Texas restaurants as well full XX company-owned many as to expect three

remaining all construction. XXXX restaurants the are in time, this under class At of

many XX including open franchise Lastly, to we as X and expect restaurants, our domestic as Jaggers. partners international

Last attended for how passion forward opening It Carolina. our foundation. was Jaggers has week, brand. look great the partner upon the in they first North to our see build our I franchise of that we will Jacksonville, seeing franchise And to the restaurant

the and us in to of for shareholders contribute growth expectation sustainable long-term, sheet store of operating restaurant will pipeline, We our a returns existing our which total our our With technology generate improved on business reinvest continue Finally, continued cash growth, healthy results. balance and future continue and to base capital we focus history. an throughout enabled to in flow, through consistent growth our to has we enable will believe new investments initiatives. maintenance

what you on have been for have a thoughts you our in training month, Chris, share the your initial team mostly restaurants, you experienced? So can on

some team the about and excited leadership well for and us. impressed by Texas company aware the more opportunities quite joining of and the be of been Roadhouse couldn't ahead I time. the I Jerry. brand Thanks, have

As of operations. has time my far Jerry spent most a learning in mentioned, our about been so restaurant

it appreciation and have several commitment an of deliver fellow firsthand even takes witnessing to bringing forward promise food now alongside working and upon the to for and the roadies passion people. my brand After on and to company of the legendary I'm I legendary the success to the for our greater its and to discipline my service. of come. looking many experience years helping build

the And now Michael update. will financial provide

Chris. Thanks,

week X.X% second For grew to margin dollars by driven per an an diluted while and revenue share. X.X% to the increased of unit per earnings increase grew million, X.X% XX.X%, $X.XX $XXX.X store quarter volume growth. average share XX.X% XXXX, Restaurant

nearly averaged on to-go our the encouraging, a quarter total dining of in average basis. dollars especially stores to-go were weekly given sales year-over-year since this the to-go of second sales sales first $XX,XXX the As The or Jerry reopening $XXX,XXX our the increased XX.X% in and quarter was weekly weekly that rooms mentioned, approximately represented sales.

weekly $XXX,XXX of that holiday. will in first Comparable with four sales X.X%, the July comp week periods approximately sales grew the and third X.X% for by X.X% the April, sales X.X% and of over out increased the month, quarter, X.X% May sales point By X.X% quarter, a increase benefited average growth June check. number from four And of for the our in X second X.X% averaged timing I comparable the driven comparable weeks by respectively. and traffic XX.X%.

Restaurant dollars margin week. decreased quarter, store nearly second points percentage sales the basis XX.X%. increased per to restaurant as a margin total to XX $XX,XXX For of

which were by points in moment. detail from approximately most quarter onetime XX of a basis negatively adjustments, Second impacted I will margins

commodity points our expectations of the was second Food X% costs in and for total sales commodity XX inflation. half quarter. line with as beverage costs for the driven of This XXXX percentage Overall, were a by first the of year. basis higher than XX.X% were

locked approximately now expect end approximately With our range inflation the of guidance X% to full on for be full locked to the XX% overall basket QX, of for we year XX% and of year X%. commodity QX higher

increased points XX basis sales, to of XX.X% to total compared percentage a as as Labor

increased quarter impact impacted X% XX.X% insurance the experience was million second workers' store of and other $X.X the unfavorable Labor due and group related comp. wage claims to of growth inflation of per X.X%. of hours growth labor net by in of primarily XXXX. to and also week dollars Labor negatively

impact additional of level $X.X adjustment $X.X million year the year. labor million inflation the a claims moderate of we net we of favorable this Similar expense in includes the year. prior and overlapping as the This commodities, expect to move through to

year marginally originally more pressure we the we first of than That wage half contemplated. the said, have seen in

year and other towards pointing with we that wage As our updated X% current X% midpoint of such, range. and trends guidance have of XXXX full between inflation to for labor the

which impact to the points lower basis our of XXXX. to of compared a quarter million adjustment The offset of for was liability XX.X% benefit as were costs leverage was by operating quarterly sales, reserve $X.X negative of sales XX the insurance. partially second Other year-over-year general

in The below dollars by of X.X% Moving the came driver and at margin, expense. revenue. increase X.X% year-over-year grew $X.X compensation of million year-over-year primary G&A restaurant with higher

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

Lastly, $XX expenditures, million $XX from and than of payments cash. we by is more of cash repurchases. This $XX the was million. of million capital $XXX quarter second with ended is offset with was operations share Cash of flow flow, million regards dividend to

This expectation cost and currently factors driven of originally including our year increasing at increase reinvestment construction by existing is restaurants. full a under the expenditures $XXX than XXXX are We locations new million. for several approximately forecasted capital higher to

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

year. times is Michael. each tour, of we fall will a which few Thanks, one my In months, start favorite annual our

hear During is tour, and what for partner the six-week our them. top managing feedback leadership mind of visits team to with senior every to gather

value. This that managing I ideas our for us serve operators to is no a doubt our continue strong forward listen generating enable opportunity we and better us learn, will have great can support and drive have business to to our and partners. how some shareholder

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

instructions] you. [Operator Thank

Your first comes the question Oppenheimer. with line of Brian Bittner from

is line open. is Bittner, line Mr. Your open. your

Sorry, me? can you hear

Yes. Hello.

your ask I Sorry wanted trends. to a guys. question about sales that, about

third off fabulous Your is a obviously quarter to start.

a points. year, your more and in comparisons XX%, July got XXX back same-store headline when look we sales September up difficult to around Your over lot basis by last versus August

if fact the that weekly the carry the that want of get, the we on which the rest focus quarter? to that the when should should And Or into of you're we page? is, average forward, that very modeling on same suggests in a question continuation just range, of we of quarter. that kind account sales comps $XXX,XXX all is I take are for the headline rest strong

trending this -- thing Michael. plays look is are correct that Thanks and -- -- I out normal year-over-year Brian how to up pick think for -- year-over-year. question. but Yes. we're did the do I at where I currently do is think important our you trends mean so seasonality more year the

for others to of is I So -- might continued and strong I we growth, determine those back think copper do will up think cents but we I our what with in and sales are seasonality all business. leave be, lined you but

stick Thanks. Okay, question. I'll one to

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

Your open. line is

the sales afternoon. question My relates good the outlook. margin strength. Hi, Congratulations on to

thoughts think on I to about when thinking up margin a percentage? next set you are shared. you're But outlook quarters? what's percentage As how grow you you the guess per ability week. inflation restaurant the the your basis I guess, dollars margin think about you just I mentioned year, on the second of you given half few your grow the the to about year-over-year know

the our have guidance changed I Yes, at don't think its looking -- there. we're the out much David that way Michael with we is it

commodity QX. the get cost in pricing range say. the is most X% and of that the then for in fourth our should be QX, leverage of the at QX cost sales On end And fairly the of would low inflation to the that sales imply be probably and of would what end below able would in with that range That's in would have, the it side, some flat math imply to lower X% part, we quarter. we the that our

I then again, what the remains the QX able maybe fourth to And certainly, Rent that and in of -- some see -- more is on still that that labor and would of purposes. quarter you all being we in saw headwind quarter. to for leverage headwind probably a that and of current as under the But that us. leave trends expect you, could get QX we out that line. and operating, flattening one see other modeling a third same for would We'll

the that's So potential of leaves expansion lot really, QX, for that guidance would restaurant our a imply. margin what

Got to a I revisit follow-up. then, guess, wanted as it. I And

like to updated your what's XX% be thoughts of You've talked to go your are some looks to about to the you're Or XX% XX%? this get Is it you how I of initiatives to on needing is well or Clearly, long-term of get you guess, year, have that. target. XX% the there way? going that going it cycle? a below just the matter commodity you to regardless cycle commodity strategy there

I will is focus to in grow Well, the mean, little commodity accomplish time for we top-line do do. the the try going We're margin And continue be get our to We we going need and to continue challenge. It on what to was restaurant us there. to dollars. attacking to to a continue then sales back to cycle that. going see to to take

is or the really we for we a But the to just to -- a up. do knowing things labor slow that one believe are down little our we But day catch and to spot to give start beef way that that the turn we and few will commodity to We're that, adjust waiting can bit us help chance a a as achieve. to and us expecting

there.

Great. much. Thank you very

out, shout too. the appreciate I you. Thank

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

open. line Your is

Your open. line is

wanted on congrats, Great. Chris Thanks, I overall. just new And to role. the consumer on the ask

were tick trade up I seeing in you there maybe the maybe mix on seeing trade is of menu? give continue What on seeing a a or into behavior what or are -- brand up down. the you little on quarter We in any your think were us you today, value is Can thoughts change past, even any be bit two. helpful. of to some the about would that talking there you're entrée color

rest the Texas come demand of trends we're The we Yes, we've have it's seeing from a I seen. strong to category. continued, negative of to is of see mix mean, Michael. say, I'd consumer what some the lot it's really mix Roadhouse. the alcohol to coming been kind where continue entree and same

be side certainly who are us about we're doing Roadhouse, of with very the see menu, could are the our people appear value counts good proposition and feel to value strong our seeing, offering and that it trends strong there some within we some And guest we're would trading that to menu, check the management are trading continue the we but into that people down seeing as very well restaurants. Texas but

then the year. are side. you prior it's on know, labor seeing And a field the increase for versus tick that Can of up just What bit need slightly? to on you a you in what made Great. elaborate the changed inflation outlook guidance? little feel in your I just on just modest like it your terms you

that hours, and Yes, the our it stronger wage wage direct delivered the didn't just come itself seen second maybe overall taxes the adds strong and have in that wages and and and combination but inflation, throughout quarter, higher which a the bit. bit other, payroll little first that inflation, are a other the component tick us growing that the pressure. of then year has to up bit other is which component with then And top we've hours more a a wage certainly compounds line of of a that is the seen wage that the we the little being on little

combined did things where need two of enough updated. we guidance the those is just So felt be

Thank much. very you

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

Your open. line is

for remained above this to And this Thanks. growth historically Patrick is growth. of bit Chris. that. on looks company XX% traffic that's roughly I believe guys, it the a targeted Hey hour quarter labor like quite Jerry has XX%

you're if improve actions so, can to you take curious you what that productivity? ways flow sales I'm the growth? can labor at believe just improve if your looking And So on do through

give front top on and I Patrick. Michael Yes. some back little of sales, of Thanks, the uptick a life. that purposely doing believe some an reviewing, is focus our we in house, hours is and of obviously, quality I house. be might the our the the believe hours side in seeing definitely that, probably in as our there the to employee line And in I we key of were managers

investment to try So labor of pool life, I to have our identify ways think in quality is side maybe some to there too. the on

an with line. top attack feel able on we're But right is investment. us to that to overall highest escalated believe few going. at volume to be So to comfortable execution I level execute where hours able our that's now, costing the real there the a I be with the extra But

think get and ways I can to we continue we'll improve, at look to better at that.

think would maybe I do to again, historical on add are still last Yes. Patrick, play just that, understaffed that from being at year. is I we rebuilding not algorithm that that

than or about right probably bit that labor even hours growth what And were not have hours growth staffing a hours we are feel very little growing the now been our see lower as to so growing seeing if correlated higher good exactly those we and those now are and seeing traffic just our we're traffic is reported.

Thanks. helpful. That's you. Got

Thank you.

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

open. is line Your

Roadhouse is like a going concept the bit help on with Bubba's same-store lower that it little Texas pretty spread that pricing put comp understand relates driving Bubba's But mix? you in us concept up to you. healthy What's X.X% can sales? X.X%. Roadhouse between what's traffic, core a the Thank at as Looks menu there,

the the growth comp seeing company. that very the because and feel Roadhouse mean, we mean, are a be Bubba's seeing on the I what well, simply opening pricing bit each our different their be -- size of a very of and good sales at I feeling we traffic But certainly, performance. leading charge menu about with are little can as good overall Bubba's little the is again, bit the and trends new we the Yes. are well. we're at at overall, different can Yes. different concept

Okay. be that's pricing going you one Roadhouse just of thinking just in menu The to -- And the quick effect then are on of now? follow-up. what QX, right core

will be our pricing. Yes. quarter X.X% third

Okay. Thank you.

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

is line open. Your

run question Great. then overall rate much quarter. the quarter correct I'm me think Thanks was you Street wrong, of than the costs the second the of And is to the expecting maybe next that But for couple question. for in the any maybe it, I were and was expensive. third and of had -- G&A conference I understand but correct conference the taking of the run the kind would My with believe you trying that was how rate just conference fourth lower G&A. have -- we quarters. on detail about for expecting, and was the much right less

quarter to mean expected that numbers of we conference a to I on G&A coming one going maybe may little I when can second those would components probably important. on the It what we exact is Yes. sure the than a managing something was the last and not certainly be, best costs doing the expense. we the than we're on less into what of and better say dollars, little the and -- is that have bit we're we're get discussed helped G&A bit it in our call the for spending making

the about And this $X.X this if fourth may look was and year, quarters through of year, is question you million, $XX $XX.X the just the starting you to is million. That's that we of under had QX G&A talked third where starting looking of which way a at give the I think point onetime about million. can best to year. to probably about gets in we remainder the about with charge you your maybe back that out And be

can of the the But the some take looking upon starting more QX continues G&A. see this year depending how year There to point for with little on expense. number bit your be through the I think compensation at that remainder top that of is to year a need progress. and adjusted of your always we Maybe starting growth of

Thank you.

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

Your line is open.

much locations was capital Yes. How then, units? And related what Good was focused also if is technology about XXXX to the that just I don't the from budget of new perhaps initiatives. budget? part that that's Could you curious of evening. it. actually. Thanks. talked I just know that on of elaborate about capital on? you've that some know I is reinvestment And some more

maybe for Yes. I forecasted of cost building those, around. of will some of factor buildings later we'll the we're cost higher we're that this our those some of we the seeing of mean, that this -- and is slightly expense new a some that. that mixture things year, originally It's commented we as openings, you all building is in XXXX class into year, start from see what

a is also small component. Jon that opening to we can out that CapEx digital So the of The there, will that seeing look technology been elevated. has to it. up, get projects component a at to the we're ability supply more maintenance that be conditions as that And better initiatives continue chain kitchens our But really be. goes probably

great kitchen return We're projects my standpoint. to in and additions we these more some restaurants, great our targeting high years for for to volumes, out, XX capacity some remodels getting which building shareholder giving done -- some able quite been a bump do this these all handle year, outs and restaurants cooler total doing haven't few

and invest So going money more keep these fresh and excited restaurants to this to serve that able to ready we are be guests. we are

you. Thank

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

open. is line Your

Thank you.

so, I'm amount of to price had sort is the… quarter, think it Just through second a housekeeping trying just the is a just then thought please, to X.X%. confirm, the you question, terms of of in on and quick

correct. That's

Negative.

Thank Okay. you.

less second now. of while you is a little there we negative mix quarter, with about seen which And on just is curious, for haven't the I something you we So was -- attached? had Or what in value the there? haven't seen that else going and bit is the talked a

that haven't seen while. negative for actually mix we little a Well,

from first in that I mix, XXX And of points is of It the negative that did second mix step-up quarter. to little in had a the about bit of quarter basis think is coming negative here we us. basis alcohol. of behind XX the points majority

of value part seeing remainder think us, that in are given we why that of that yes, menu. it's is It traffic category, because the it of people our trading necessarily bit the little a taken does some is to So seem guest of is new the menu which of not up the we've entree side mix. is alcohol coming pricing of negative we from but hitting and

question labor. then Thank to was up it. the And on follow Got you. the

expect you said out XQ. labor You flatten in

staffed. about But I comment. the of up, the sort rate think that's you restaurants of what needing to point idea staff as look a talk wage at do fully

off-premise been mix fairly think like stable. I has

on-premise So is consistent from last in that of perspective, of couple the your quarters. dining more

fully that do when could you such that So point the staffed where a historical to are get you restaurants algorithm? back to get

Yes.

year. So good levels think last year, And understaffing our about now, better we lapping about very sequentially last staffing levels. a right each we those matter we about from of I throughout and staffing quarter, felt better and talked do it's the feel

through down that year, to as the a So down feeling move months. the theoretically, have hours saw inflation and year growth should we lap year through lot move about should of we're wage is last pressure again, of as increases you because from level for the talked the that XX full we we you come wage come the a

level that get not as because growth -- require many hours the -- us to So be the see is now. year hours the to to of level we're that continue move expectation you at should we that right through moderate as it

kind of to approaching of it? fully had is of about end last So been think you how sort staffed of the there by being year,

good bit But starting have of than of year. pretty year late this yes, December were this exiting last our last about a December. bit did other were little in of end levels early as -- entering a weather we year, last and in we the to with step Yes, year, staffing year, that, a feel late we little back

Very very you Thank Right. much. helpful.

Your next Barish the of comes question from Jefferies. Andy with line

is open. Your line

Is little to higher contingency be Hi, you've if plan, guys. there longer. thought of wondering, for view if Good go the beef kind that more, is? -- the seems is may case, to we you as kind menu that of be be is you to evening. the a else bit Jerry should of XXXX, a thinking something do I'm there growing do breast price about we use size XXX start about

hear I going Thanks, those it Good lot Yes. beef, obviously, tell very Andy. of in it would from you, we to of a happen -- but we what's Obviously, there. you, don't we'll to out consider want chatter continues. be is things. to some as still There know

it. deliver big careful now. the we It's then We will to menu. is It value make need monitor on doing pricing the are sure to We the experience. right and drive very to do to on be business continue our cost continuing part component our and of cautious of a that

the taking But in great will we do we run our long-term of run, going will we always of focus to we do. with question several continue of The what and But could look think to strategy. I on will the care that. And guests win our is – that business. factors long are we still at

Got you. Makes Thank you. sense.

you. Thank

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

line open. Your is

is in still cost Xs, XX% up but Hi, evening. line. the cost It I to looks just per thanks asked, other was the still but which a in operating an ask improvement week Xs. the Is have is the running up is good quarter, in first like and versus to closer of on going

that highlighting some And relief expect been are days? cost is these fixed I is remind variable the any could inflation guess, of half categories level there as there of worth recently you the you've would second on Or seeing? similar you versus what And in pretty of basket us horizon? where percentage a

Hey happen, away. I variable I my is most I'll saw just fingertips can But we you Brian, dollars happen And that Yes, from go a tell it versus did fixed I'm have expectation that what could -- that expected things per rate there. that continued operating I Michael. slowdown we you of what could level it’s XX% you, to within over week you argue think not think little as a said, that is the increase, to And around see of you on year-over-year of would probably slow, X%. basis. sure store

not from coming we that a growth at lot these you're year, pricing And dramatically They've now. items the of provided some were higher traffic from of of the you're the them. a pressure but of out and levels, lot to that have, services flattened up last lot upward really that it's menu -- of being volumes additional right able on just and which now is that get the a seeing leverage basket went the

remainder some other line So move operating a as year. see hopefully to equal, is the the all through we else of being leverage on that we should continue

much. Thanks right. very pass I'll All along.

line Guggenheim. comes Gregory of Your from question with next Francfort the

is Your line open.

the mix. to for Maybe the alcohol Thanks back question. Hey. just going

you sense a was where have lot I is mix were couple a that just alcohol is Do it your think your last peers maybe of of or this in peers that down X-point that maybe you guys versus before and lost back some above of was actually mix. year, over it COVID X you're giving and of of why years the some instead? last

their have stimulus money back some there not who front I of extra had be have would pocket, happy spend was or that -- who to that right whether I consumer been over the in just don't what it. call me, last year, you do having from but of of out Yes. numbers I last mean, exact the in other to think have places

they that maybe as you're to a ordering getting And now, people drink little more were or that bit as were alcohol normalcy standpoint. what of second a or they historically seeing drink. getting a return And not a maybe far from getting

about obviously, are dining lapping of again, we our in we that where before consumer a being the to year. be are But you bit good we are sales rooms, the feel component I with versus to-go last lower. little bigger from think And sales yes, business very now. But right, a probably overall or going are alcohol pre-pandemic

Appreciate Jerry. Thanks, it.

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

Your line is open.

the you Thank little a beef inflation bit year? you. perhaps? and between bit the breakdown, food non-beef about updates for inflation on expected more Could the Any breakout

then gave Thank anything on cetera, kind XXXX? of seeing there think of looking -- et there of ahead, else is out is of consideration of kind comments And is about how is to been softness you beef at is you. already, in Jerry mentioned any retail, on impact share kind demand that some might

Hey I'll if Jerry anything, start Dennis. add This is can. wants and Michael. to he

I again, back to go to the said if year that our this prepared we think the from we inflation remarks expect and majority, all beef. of coming is not I'll -- feel

So items. that basket, we expect other be deflationary pressure a in to items would and the that the full overall some in items some year grocery on are maybe have basis pork, chicken we produce some of offsetting still

of basket that next again have year, means. too is the But has full that of the I But that point Yes, half that year, our to beef hold. potentially we conversation pressure the soon -- what it's that could goes a future offset overall the of some might be know for potential another going is to about to pressure. think driving inflation. what And

continued might what might that's beef So, to -- offset why have supply don't aren't the of but any at overreact some a full picture going constraints. XXXX that we we we yet bring until of point,

Michael. Thanks, Appreciate it.

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

is line open. Your

to Texas I for Anisha some this they to Datt at recent of Bernstein. you Roadhouse to provide better do on you in more Bubba’s move of on Hi, the wanted on in ultimate relative Jeffrey new selling Bubba’s trends brand, color give is macro? a showing tandem? unit positioned Texas update Roadhouse? openings if perhaps ask the an your slowdown could confidence is And Or in one

You start.

Yes. our getting opening the closer next with Bubba's of maybe that I probably be see this five for years, Thanks about Bubba's openings. we XX to Bubba's some we've next And in open think to good again, five to question. standpoint I the seven openings, -- very feel couple goal after from in opportunity year, get is want this a openings. that year, of to talked mean a about

year power of our our excitement has any Again, the getting our site issue anything out concepts. of is and the are timing of restaurant in permanent to work side of that our It more do a from an of openings our number of done. of to on control, things nothing this for slowdown for getting

excited concepts So at our this we are about from of all -- restaurants point. all open getting getting

focus And great different Roadhouse on set strong. up certainly, are is in very we across stakes that our also inflation less all And are of We not for the brands. of is. overall the with Bubba’s concepts a level a trends success feeling think the

So everyone has different things going on that

feel makes us for good about very the holds future each concept. what

you. Awesome. Thank

of Your with Jon comes Citigroup. line Tower the next from question

is open. line Your

Great. Thanks.

is the happening elaborate can back circling guess, the comes beef can in to I expectation expectation store their therefore, into what's us pricing. come partners to if thinking on market up and it curious pricing sort Like labor help Are considering overall through what doing, at the about obviously, also then, have and set of what an build you pricing in a to Just, the of just terms competitive of -- tools at just grocery the again. inflation managing I'm but thoughts they year how you on then stores for the they decision in prices labor distinct general. walk market? their how that they weave when

Yes.

area And picture from process going of with on pricing from their local bigger a going that managing what is -- multi-units a similar. they partners talk share of inputs kind their competition their our be on might on share markets. to obviously grocery the for in then We the So in standpoint, what's us. a we and that very ask retail in

by state some mandates. we all we side, lot Obviously, state, more -- our on of on overall the details a know

it's process through for try So region every store, get go also we company. and right that to but market to an extensive it by by and

for it's And formula a complicated so sure.

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comes next the line Your Jon Wells question from Park with of Fargo.

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Jon. Hey,

evening, Good Hey. guys.

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demand our the other thing that the to is serve continued ability would there. levels is only the in and improvement I out staffing our say

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guys. it. a Thanks lot, Got

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

Thank of the for wish you finish and the you your to your much we all best thank very weeks and coming you. today, time summer,

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