Texas Roadhouse (TXRH) 2 May 242024 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, Breanna, and good evening. website have ended our it March be on should the release may you the found quarter in first XX, our now, access earnings to for also Investors By section. texasroadhouse.com at XXXX, and part to include today that statements. our discussion I would everyone of like remind will forward-looking future are upon them. of therefore, reliance performance, statements These guarantees should undue and not not placed be

detailed recent discussion to from filings of the to We you our provide earnings a and results documents refer that more the with those factors our of SEC. relevant actual could These all release forward-looking cause statements. materially differ

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

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

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

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

is to experience of the first business guest and for provide hospitality . The on dollars in and Thanks, of continue operators' There to approach billion prioritizing and they doubt our sales, the same-store margin the off long-term the growth and XXXX is over strong the income our start is a the our quarter benefit our food, our and everyone. Michael, great good that to $X.X with the quarter. quality sales no everyday to of net value. always first and reflect record results focus X.X%, evident evening, revenue consistency commitment

future to this Bovis $XXX,XXX operators weekly for remain Jaggers. average to for averaged While XX first I the at $XXX,XXX progress first the our weekly with over confident years, the Bubba's coming we in brand the quarter, a highlight open X locations XX during of Texas pipeline sales and in and also in year Bubba's quarter, Roadhouse over the scheduled are making the sales XX. generated want growing

Jaggers, $XX,XXX sales. our also brand momentum experiencing weekly average delivered nearly service is quick and in

of is We daggers open franchises Korea to coming company year. later and continue international years a in this expect the and the scheduled South first to over mix franchise

Our new investment and commitment the successful. second at an to X been Texas quarter, more Roadhouses. pace restaurants the company-owned has to additional We we expect restaurants a first currently opening company-owned even In X opened open quarter. during

For on XX open we the restaurants remain to track approximately X the company-owned year, brands. full across

Texas Jaggers international and quarter. during domestic first X opened locations Roadhouse partners a franchise the Our

many continue this to as year, Jaggers. including We as expect openings XX franchise X

technology with the XX% digital to so approximate far. operators On XXX The remains our our conversions highly planned as positive. is kitchens scheduled going completed the from of conversion feedback front,

less also operators execution hours. efficiencies, to our during Kitchen calmer addition kitchen and power In stressful the appreciate

records. with Also The go access system, second during our the the and employee should platform provide quarter recruiting their management on employees with will technology. we RodyFirst system and user-friendly people also front, for the technology to new It our we live call are which a managers. easier preparing data for a more processes to improve

to The the industry. to experience in which people first training commitment Rody at RodyFirst best our continue technology the all allow the reflects retaining -- enhancing will the levels, and us name hiring,

a fun. Managing a Finally, future, Conference talent, recognizing little celebrating Partner for It Austin, week XXXX. Planning home our having operator's we returned Annual our great and success was in just Texas. the top in from our

for and for ahead. inspire which first purpose will We also unveiled purpose our them our our serving across clarity our we America communities is and world, believe statement, journey the roadies builds

I the also Roadhouse Partner XX being Speaking New named from Jersey, of from named Texas the congratulate she Bubba's Blanker for as to our Managing Turnersville, Cohen Casey Managing want was Year. congratulate our Year. Vanessa Mexico I of inspiration, Albuquerque Partner want Tosato to New of

Fernandes to Center meat-cutting like of lastly, want named recognize Frank national I our for congratulate being being to award of Benito and Additionally, And for Rody thank Galindo accomplishments. named the Covington, Year. Louisiana, Support our finalist I and their champion contributions for would and our

Chris Now thoughts. provide will some

be Jerry. fantastic impactful in of the doing celebrating comments a shared best. for your best of job, I great dividends managing Thanks, the financial an and pay are the Having to continues we our an partners guest experience us. want it what a on focus mentality They to regarding echo Austin. time was with to operator and part

been X.X% we've seen a trends traffic While we so X the mix increase, price encouraged implemented it's only menu and weeks are far. since by we

as In into the moved trends and through second improved mix first fact, our of beginning the quarter. the we quarter

choosing We've to often. more growth. always traffic come believe restaurants to sustainable taken our to with goal pricing by We approach to a reward this guests long-term the driving of us for approach our continue

have benefiting better beef, we'd expected. from particularly more through beef have of small the performed purchases made only been contracts. this fixed-price We're as environment cost year's Commodities, improved portion than a

While the above as we approximately inflation we forecast full Currently, to expect year. will we still half full expect inflation expect we the XXXX year beef the the X%. year, now of be in be back move inflation through commodity to increase year

efforts employee managers as is roadies. improved on tenured the experience. restaurants have Labor their our and focus hiring staff longer efficiently benefiting to more well-staffed in restaurants with allowing resulted productivity is This from our

So out inflation far and wage anticipated. labor other as this has year, played

continue we such, for to X% As X% inflation year. expect to the full

store and investments balanced allocation. business, generating continues operations new including digital bump outs, cash returns kitchen from with ongoing are we capital openings, in to to our expansions approach conversions. Our the our pleased We're the flow kitchen support from

over operating to fund share During the of $XXX repurchases. dividend expenditures, generated over flow payments capital quarter, first we was which used $XXX cash of million million and

now projects. will us done we've first results. growth return continue to through history, our walk invest And As Michael throughout and shareholders the to in will we capital quarter

Chris. Thanks,

XX.X%, we X.X% of in growth XXXX, store unit a increase quarter week reported driven and revenue first volume growth. average by X.X% the For of

million of share a We a reported margin earnings increase also and diluted $XXX $X.XX. of restaurant dollar per to to XX.X% XX% increase

weekly in quarter of in to-go quarter, X.X% first $XXX,XXX total sales. by first check. XX.X% traffic these sales growth average approximately with in Average weekly the X.X% over sales a increased increase driven were or $XX,XXX Comparable the X.X% and representing

the month, sales sales our and comparable were our during weeks By for period. X.X%, quarter of first X.X%, periods, per with March second X sales for restaurants and that week XX.X% February respectively, grew XX.X% averaging January, of $XXX,XXX comparable up approximately and the

Restaurant of total sales to a per XXX percentage margin In XX.X%. margin as restaurant basis the increased quarter, first $XX,XXX. dollars XX.X% year-over-year increased to store points week over

Food year-over-year for of and the total sales was The quarter. beverage the basis a point inflation costs were of XX.X% for benefit X.X% as by commodity increase quarter. driven XXX improvement first offsetting check X.X% a percentage the the

by basis per to percentage decreased sales to store compared XX X.X% the labor of inflation week dollars a increased as growth and driven million as remaining total of X.X% insurance to reserve. per adjustment labor wage net hours of unfavorable and Labor other due Labor quarter points first quarterly was XX.X% X.X% The dollars XXXX. in increase to primarily our of week $X.X store a X%, in

increased in our as also the approximately XX basis which operator level basis impact profitability resulting to points liability from change XX.X% is a drove were of from higher XX of year-over-year increase, points for reserve included point an XX general an negative the adjustments quarterly insurance. restaurant first of of year-over-year sales, XXXX. the than basis percentage quarter was sales costs operating bonuses Other Higher

$X.X adjustments These expense year include million million this year. $X.X and last of a additional credit

X.X% dollars to for benefited an cost came at growth $X.X executive G&A the quarter. Moving of X% grew million below from in year-over-year retirement. G&A related margin, restaurant approximately and an first dollar onetime lapping revenue

was at Our income rate expectation quarter rate for year the effective XX.X%, XX%. full tax for approximately unchanged the tax remains our XXXX

a is Finally, as for us. a XX-week year reminder, XXXX

quarter such, growth weeks full versus our XX approximately per that the X%. by share will the normal fourth We estimate could benefit additional XX. XXXX earnings As week year have

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

serving fitting to down Up. our our theme with prepare . as us year ahead. of conference, up It certainly of is our double Michael. a core buckle America Casey journey Thanks, not across conference we partner on our the call have was and At of our mission, Last, the honored encouraged I partners communities but we and managing values are world. Congratulations purpose operators the Buckle and to of message managing for The least, again you. our for and both our today. Vanessa, our to

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

Instructions] [Operator

from ISI. with Palmer first David today Our . question comes Evercore

I'll try just ones. quick in squeeze X to

you'd you're be order to can great uptake. table me look of was and what's growth business? X% a comments then quantification bit line to little other give First, that on in item? the rate it per ahead, more? similar slow able could just obviously growth you seeing, digital help line has that the reasonable about 'XX, you initiative. details accuracy, might any as the up remind all store you in Any or the a And growth in It's is of could that And kitchen about rate leverage type that expenses, quarter. driving That assume benefits anything turns, that, operating that

general on line question did I'll other David, that the adjustment thanks we million. operating. of mentioned, It's Michael. Yes, for the start by the we with a $X.X question. as have liability

mentioned increase. that of as there compensation is doing also sales, volumes, are was leading Obviously, as dollars in correlated directly items higher some that we the there with also per driving we're is profitability that are to restaurants week driving more store of So sales expense. those and higher the that

week that any So little adjustments I'll high kitchen remainder and for comments, expect with come don't start store of it so that that seeing. early encouraged obviously, level we far operating the probably to qualitative increase we should But actual we over, I information numerical year. quantitative down. possible A may to off on on of the it, And and what a we're other the that but certainly can any or turn throughout probably give per are getting us will feedback Jerry. what for at is throughput have by make it we're know those all of then the happy other kind to not very dollar and digital growth

little we and cook feedback think are Yes. the kitchen really excited operators, the the in David, early see food it, very getting bit, and about into house. still of back positive the track we able digital kitchen, we're from to the the calmness to our organization that timing digital of being our we I our are on times our a the brings are as

just us job that move the there on experience I is benefit quality So that forward. a will of we life or believe of as

year the feedback. through definitely excited feedback. getting are really, and more done we as move really So getting . far, good so some about more we But

Your from next with question Tarantino comes David Baird.

year. Congrats on margin to is question the start a outlook. the My good on

talked the target you be but you've to in I this a back related about in much to the easing long-term long-term productivity towards get question is think margins that potential to restaurant light know I past progress environment, inflation how target, XX%, that's of make to gains year making. the XX%. might able my the you're

could up you towards the if long-term context year wondering frame that just of progress target. in this . So

QX Sure, question. Well, Chris, expansion had in XX.X%. and the and thanks is reaching here solid clearly, for David. This margin we've

opportunity our goal an the to And to in where we a to and it in basis QX. we XX%, similarly like feel XX% of in be. that's zone expand we're honestly, like have we'd So year-over-year of

that But expecting. half, second in pressure the we're commodity there's the

some so all more modestly added you've then -- and higher But that. be XXXX. was a than still modest that were the up, get when of And do year full consistently and will between in XX%. XX% we to to long-term see goal difficult should after delivering And it it we you

ask could I if then And Great. follow-up. a

productivity labor mention did gains. You

other you stable could just that making And environment? there? on doing in you're any elaborate you in Or what of maybe just kind So ways? progress So actually of a are matter is help staffing there? more current the

again. Yes, is Chris this David,

staffing just stable It remarks. Roadies, that having just a talked I my think prepared our team together, difficult we get and it they're as that's pandemic efficient, to during just longer we're have in were we come away was staffing. from to the and situations difficulty in far more tenured together, our about in and operators is having together a the it reps in gets and to reflection allows that's were of where more people I working that

the our some we that line. of and now it have in certainly benefit and much is that's driving place staff lower -- we was our before, So that -- on turnover than lower

Harbour Brian from Morgan Your . next question with comes Stanley.

Yes.

you I of as any talk sequentially. drove think that? mix the of shift that just you you commented on customer some what improvement kind behavior some through kind like you Or in quarter? -- about went Could observed

can on more our been Yes. has anything behavior, less back not several bit alcohol, negative Sure, over a mean, I mix something really that seeing trending to months. little we're I the talk have Brian. This say is consumers' Michael. that. changing neutral been last I'd we seeing Yes, was in than and seeing that we are

negative running still We're appetizers, on overly have out. those -- add-ons, little a were flattened negative never But items bit alcohol. which all entree, have really really

encouraged everyday that there. shows And to seeing is seeing offering. still that the very by the what it So we're consumer me, value we're

Jeffrey from Bernstein Barclays. Your . with question next comes

Great. Two questions.

mean, Texas bubbas I on are the Redhouse Texas XX% them and compare to first each brand the just stack made But the when are the the are brand. the you low versus of your The between very AUVs and both Bubba's is comps their the X-year to like on relative $X.X The Xs. one, stacks million. industry. you is strong them clearly, other, to -- Roadhouse, XX% reference AUV

passage X wondering of driver and narrow more And X? the the the being the terms as you and between what of discrepancy AUV of both make Just had indifferent And say of that similar would I would the you comp brand terms gap view in you in time, which greatest brands open? follow-up. then the do with

the for Thanks Michael. It's Yes. question.

be a had. hard a Some quite has has than me to going while will little It around into Bob get that's Roadhouse Obviously, to brand answer. for speculation. Texas the been of longer

XX numbers what stores. for So us. those It's it's we was skewed with brands bubbas you can less And always very at been has are are both way few to by Bob to when have Roadhouse hard than very be But happy or with number what XXX,XXX, another easier is Texas X -- doing. strong you compete doing. a for anybody only for a it

generate we future. what we are we both see So very similar encouraged what are excited in see returns and we we're the and from . by there, to seeing concepts,

issue your is, big Roadhouse. unit is I My just follow-up question the Texas to guess that's openings. the brother when on clarify

coming year-end? things XX pretty mentioned confident some XX Or construction. come think I start you you Maybe under 'XX and operated know before company the construction modeling open But units the to year-to-date quickly. this just full I in might still still purposes? being year. in that for XX these and you mentioned open can months in closer XX number year

We them Yes. now get construction and get year. can this into under them

So is for still obviously, too. worked X brands. the And the between approximately 'XX hard, XX being pipeline we're

believe hit I that we'll So number. that

for in We it is confidence now. kind right have a well Everything working of of us. lot

the moment. So we'll for here stay . right

Your next Saleh with question comes from BTIG. Peter

Great.

me. Just maybe for X quick ones

given which the from table Ziosk, assuming turns, turns, of going I'm remind on percentage what about of collect? the else that the able the you sales what And are On much are customer? through well. that can follow-up have you aside a maybe platform? going And learning benefiting to us learning other so you're Any you I table now platform? are data about then the maybe the that as through that what And sales . just customer that's are

the I at table. it's pay Yes. mean the

they the to other we just there's don't use So with I way. their it and lot it, ready of we're the can call swipe pay-of-the-table on go, a there as feature. I our Roadhouse cards helps when guests learn if XX% than approximately their believe pay they're to be as know

to very when convenience leave And been ready. transaction a obviously a within from liked utilized that think I it's importantly, them factor, that, and and guests. they're allows it's our So well more it's .

in much Great. number? locked guys then -- of a X% is that second on commodity that getting we half sense higher that if And the, full for give . variability basket and mentioned half have how I the much us year. you inflation expecting just how the second Can the of I your around think the for you're you year, to guess, be to full

Michael. haven't of seeing -- both side, seen been price. our from upon a At it's in lot locked this not into beef we're -- time, the detail a in Peter, going for agree we're like is put give certainly hard and have contract to quarters, point lot going to not of reasons. we packers the on so volatility, what similar fixed fixed-price Yes, a volatility competitive the to a

We contracts using certainly supply remainder of have we'll the of year. that for over into the most entered the beef be

the as there or is expect. behave lower number So to we inflation market differently for both in volatility were the through move we the that year, higher if than yes, potential

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

X said the on I how just I spoke you questions. and much us last price Could price. was remind we comp. you pricing mix guess One, had? just X% like the you think time

calculate to trying headwind it the a less this than it's at sounds just point So percentage point. like mix,

have we as In had our of that correct, about you of X.X% but down a first weeks in about only X the quarter Michael. the we XX it's Sarah, had third quarter quarter, pricing. in come and And points quite of bit the for did basis points to second mix, the negative first XX both continue menu negative X.X% second the mix about we pricing to quarter. basis are

but to trying the the helpful. are I'm else relative way. everybody that at is again, contrary That's attach from them you getting do just are driving of more. think very have sort to know of, so that? question in what's value concepts the have industry everybody to understand it management, Texas sense very a speculation, your dynamics, where I again, still you like else, is that running the business as good, Okay. it's people good who about, versus you check of good seeing seem in related And be . to Great. somewhat who which other just encourages is the to a rest trading maybe I

happening. offerings that much to do you when our menu is tell into is see wherever. our thank value and kindness. different that our doing, the I believe service doing very we focus provide really in people And into have from great mix they menu our keep the that and businesses. on anything keep guests . than what what very service Well, me food in happy see sure legendary else really be allowing making our the really food, to where We that's and legendary we for that built all anything is experience we're of our built with trade don't value the the our experiences in and

question with Dennis next comes UBS. Your from Geiger

know cost to wondering talk it. just inflation and thinking are given that Jerry, spoke it of you recent more thinking year, earlier, year looking over next that you're a is later years. high share can today about about . I in about the pricing? level but anything the look philosophically traffic little there that you and it as to to kind is how competitors or could a underpriced if you operators you've in given the just you've given But there, how any high you level at seen pricing increase thinking ahead where

feedback same we weeks just August, of market this X in what -- X the partners our talk in gather We'll wouldn't October. Well, and we're our do We've from about we probably follow or round. or always September into partners all would our managing procedure and have. Dennis, we'll last

store their being the approach them So and help market and for of for . in decision will then we'll the little make what each up decide their good every that and We'll consumer And the region and that be one take or our very see forward. best as with early. then operators or We'll the our industry shareholders. our going absolutely happens will company also is partner still a of what and conservative.

more just Jerry maybe I X Makes if good could. sense.

relationship the Just you there some to think the a about go to of think seen relative as And forward . really there good year, say? is anything last hours, we kind in it traffic. recent quarters. good relationship additional as go would way that on forward, on recent about relates to staffing that quarter We've

for talked up in clean But you'll rate a year, think that of to start the Dennis, having growth XX% it's hours -- that can to I it XX% Michael question. a around we've keep we of our here. miss growth quarter And trying that hit growth, historical traffic Thanks that. Chris. remember anything I'll and fourth I about average we're level. last up

came more actually we better with number first well like so the in And in something quarter, even the that XX%. than

don't to lot hiring X thanks delivering can I their goal zone. And there's their over So is situation, that think well know to last the to the done that. operators together. XX%, we're that definitely XX%. that's it's and we're making I working continue we'd and continue last our of like are improve But now that sure definitely our work -- labor really we in least teams and at around our been these back the quarters, their staffing and a results

you I'll said what Chris, add Yes, there. on

there their percentage is now away, And hard . come at remain quarters. I needed in next that out, think be to the like where the see off next all last feels level the to that operators several we'll year, but they below potential for over strong get or that there paying of work quarters for several is first quarter. stores certainly that staffed to XX% the

comes with from Gordon Haskett. Jeff Farmer Your question next

have I more just capital on on quick and X follow-up then investment. a commodities

can now, couple going next I commodity share commodities, based on the black nature inflation what But understand there's of over of quarters? you on box quarterly So . expected you some what's know on.

average. but QX similar QX and I'll full X% The that the a and above are guide where looking to Michael. numbers, be fairly will the above year are number? be going specific expectation all. I'm second help then you bit first quarter still give little quarter, it's probably the is year Jeff, to we full were And not but below going in

are Okay. capital new at expected but a then to it's the That's XX% 'XX. it the which versus up versus last million helpful. inflationary that of be lot cost $X that see year, but Roadhouse, looks And the more same to in I in roughly peers there, like to is do boat a XXXX, K, your average a sort million appreciate than investment any it's of according new for $X opportunities for on flat you reduce least Roadhouse?

I think we're going to be pretty close to it.

We have expanded size believe, of the more We the just of our our expense. got house. that really I about to coolers, building, back new able store to beginning execute be to expanded feel the in openings, good we've of at to so room 'XX, the the

so see forward, be looking assume a that. very lot probably probably And don't now, I'm we'll to would -- right I changing. . if close I it's

next Bank. from Lauren comes Your question Silberman with Deutsche

function in on-premise that at Congrats talk faster about earlier first years. weather few you rate on quarter? in than else like quarter? how can there for looks that . grew Is a time a anything you're It And seeing? during the Two off-premise great quarter. trended a of a the Was questions the

have again, to-go average stores and obviously than We just our rooms volume that. dining our used the getting ability and higher I our in execute of much adjustment that the are think to volume. doing to it's about what and is, that's

for house experience being we that to our of our our how and -- processes make full think I go food. off-premise able running settling it's the and execute a So our to-go really about and operators to in

day, putting to have. I longer into problem into more a our to-go well think off as getting level. a the food rooms We're settled effort hours full higher executing for it's dining lot And good at for us paying of a as

Yes. not And the in periods this more and stronger growth the It or of to-go is winter and Michael, first second to the third in quarter quarter. first of was sales actually that saw the weather. the business our add period We on. Lauren, gas just the in during

easy talked on for and regular go ease reward we've to to to it is process. that about that guests and a just that that goes again really go the throughout, Jerry made So but possible, the us continues as strong We it everything made . basis. using of as

That's And quick X just then purposes. modeling for awesome. a

we Can running You as there's terms of the considering you XX%, quarter-to-date on regions And April regional compares comments should any we that cadence? is be for then have talked think about just anything about the you monthly us in differences incredible. which if remind or in XQ .

Michael Nothing I Yes, months. to out tends then call our Laura, look May careful April again, it's that April than June our be busier similar would our to over be And period. and again. coming the period about typically, really can fairly to

the trends from are comp a but Southeast, I standpoint, the dramatically pretty out would call across little not and seen a it bit And the there. quarter, different. stronger Southwest as nothing So in far we've certainly South as region, first that the was strong across country, maybe

a across it and So quarter all solid nationwide restaurants. really was

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

sales, less accelerated the decline Texas for than new a declines that over X-parter and the was quarter third performance and of the me. row months, on noticed of there in an kind weekly it's have X% average the in Roadhouse release opened the store I in for last stores over X period. those

So would broadly, great. color be just just curious what is that that? Any then would And be driving performance great. new store behind on color more

the the When it's the year, Thanks quarter timing to there. in regional back And something go of that really there. be some that question. was comes sales XX Michael. some and of numbers. that's mean out going stores, in for we're I in last that of number Andrew, I was impact There's there across the those in first you -- to Yes, highest new believe high-volume X California, the higher. We're those restaurants. are country pushing

high if number how So anomaly, first quarter. to the that had would that want . was in it I anything, gotten say you call

we don't new expect Now we of stores the XX performance to in of sales, issue and to our more our every in. the of those, with be to those happy, me across is all and how per that region, continue emphasize, on there the very restaurant states don't as week a open concerning they that about bit in for is look out a but $XXX,XXX us little $XXX,XXX, stores. happy doing be ability their of always California gate have store We are performance that stores may timing to a number open very going they the just quarter. or performing. let We're nothing There's first

from Salera question with Stephens. next James comes Your

we get and you customer of X at information if guys awareness maybe ordering build could start help brand a wanted tag initiative of really ask data and with a as or new a I think House it Does that you as more to selection to to to on high from. way you an the increaser get Butcher level, frequency data as a get maybe or update on do to and way frequency some are well. can more site where on people it

No.

really brand think that's We've I retail had of the some it. we've business future. real . at awareness fun the brand a do what and business really things. the And to think continuing of any uncertain. focus about is done in now, It's with every having with we our some that on of and our right creative mostly look what segment see of fun, lot retail. we're it I and just awareness we're But aspect

-- to brand, your is divergence about traffic if such scenario trends peers a there makes where the more proposition performance been then It your actually more positioning? as way of your is the which obviously, And of a lot very is a from it value from the macro think resilient tougher, like seems peers. foot at has given strong, Okay. Texas continue the I that people the value gets source in you Roadhouse

Well, today. very that, we're we to care to our with, menu, to certainly continue guests We we we really we care take of conservative take believe and we continue into and at our of the be our that's really do but dynamic of what they can't where do control our understand in believe what built try do. business value and

focus our Fast, rewarding and have on smoking we're our in we that It's food that dining friendly X us excellent hot, all fun proud food in And perfect being brands our so I just picture of rooms. recipe of. believe right.

believe, to play everything and are hustle us advantage, love our there, the at proud the I that level. a high and serve, really We of people out operators that's gives very and doing game they and help we're what this

with next Frankfurt Securities. Guggenheim ; Your comes from question Gregory

specifically, franchise like? seems the thinking prospective X the company long Jaggers. you're appreciate across franchisees the how you're update years? curious just and I looks and Jaggers, maybe in how you're your the then on of it pitch priorities what And plan there What's capital versus thinking accelerating the the development. like the couple on operator term development to about franchise next about maybe I'm brands balancing for Bubba's

franchise second me doing. and it brand, believe we've you we're that is absolutely for X Thank Jaggers we've bit incredible. the for a question. Bubba different and how building very company our and interested. is little and as a what in got excited it's X invested the stores stay We've is ways. of people I focused Roadhouse lot exciting we're growth, to The and that got talked stores pipeline, on food going in about mid-XX we're about

Our a is of service standpoint. service speed really from model working

first building with So international Jagger. we are restaurant our very

can help lot, we be to get you and doing around needs dine actually and franchising Jaggers So what go wanted franchise our really faster it we're a partners. the little is you that that's partners a learn to bring some and us with head bit highly and casual successful we're could grow, at thing really our good to about in what

what to franchise side side. It's learning tell company forward, we to Jaggers hard and the grow It's appreciate right lot, definitely in the we're both We're franchise us on going going learning. on really interest the up. you help and partnering percentage into and concept. but leaning We're a our now

question Sanderson comes Jim Your next from Northcoast with Research.

XX. Bubba's a to bit insight I to go back wanted little on more

Bubba? a comp Roadhouse, walk little breakdown price/mix than the the same-store can Texas bit traffic, through think you weaker I was for but sales

but Jim, it comp the of or kind as at to different correct, breakdown. I that it's We mean, -- there. get into same time it's did is at detail level into don't Michael. Roadhouse Roadhouse, again, not this least everyone not than out yes, actually that you're at much but not else

can XX Baba's a are But forward. not that overall, great what you performance have restaurants and are number. margins saw of we skew it business by with only seeing there But in going some handful and -- growing, that again, deliver can and the we year this early very we're that encouraged

bit to We've very compare we not we're and engineering. with We're term, controlling little menu the at costs. and look on sales, not we're performance, attacking done add on the that. a our -- to I'll in sales, Bubba's bit a really Roadhouse, done if help happy And just we've only us things just it building long Yes. some little of in on our very, we're

been momentum. excited we We've success be a And offering do to added of of got lot there. And a bit a about a so sandwich and little really has wings. combo we've a how we're reorganized appetizer, there's which new out

As first me I look tells rock the and we're just in the roll, cold business. in right beer fine. be and pizzas to going at XX, it and we're and burgers quarter Bubba's

fair? Okay. . XXXX, you had is that Can I from in traffic positive assume that, that

. I fair Yes, say. that's think to

All right. also ask April. Is want I any there that sales the question . just related follow-up same-store impacted performance? on to to shift calendar in issue Easter a

still Easter period. fell April our With Easter, within no,

Easter. . from impact no So

Is Texas important others? okay. between, . or does me. Very, an that shift not do Roadhouse for then And last No question good. usually so very How from event much?

of Mother's and Mother's Mother's we couple Crown Day the Kentucky all some . kind there excited leg overall. and Texas out of have part players restaurant next call Day speaking days, the we're that. incredible about And But excited Yes. dominant where the it Day. of we're of is about huge Father's and that, we It's Father's Day, first Triple Day, over Triple Valentine's in here the is the an Day, it's of Crown, event, Roadhouse and for industry

just And celebrated throw Day Mother's is in, there's as Jim, this is that well. Mexican also Chris. I'll

of as So we well. have as part that our repertoire . a

question Truist from next Securities. Bartlett Jake Your . with comes

question, the aware we know you bigger typically any then kind or expect? disclose, question, Jaggers X about you My should I expect stores clarification Anything is just exactly Jaggers spent -- G&A. the anything expect the don't XX in of try to kind make the to model we there's first adjusting get in kind be leverage of quarter, onetime year, I of open said company-owned think of but there? first to about question whole? . variance, you year the we quarter, modeling conference. think if you is do as the adjustments in real of quarter, for But a just XX much Bubba's, And should any first you forward try points is of as -- a G&A, in you the is for that last the second the as on company-owned about a basis how going the leverage I I the

I'll answer part. second that let Michael

right really but in do deals can as future. we On working I'm Jaggers are growth, expect we year. only pipeline. some we believe have the building yes, X as I at, that to We're year the looking had positive maybe grow look this the now last far I X that on X,

to that now continue the hitting goals looking ramp-up at the we're look targets and because . we'll so is the for. it And that on

And this is Michael.

of adjusted get we the On basis, a did yes, the quarter, -- on first an G&A question. In little leverage. we bit

some of investments doing this being line you the leverage quarter next bonuses may top the and for Roadhouse could to little extra think upon in -- be be assumptions which we're second bit we'll a investing about definitely business result get think other will probably the compensation it in for -- your quarters year internally, tougher it several do taking during some things but the -- some technology that in accruals should for you year. result revenue, the and XX-week us and for again, in we're when performance third of G&A I on making the and to some continue I in a think depend when we're us, strong the of

flattish a bit the So more expect the for second you in get would could year . leverage. being I probably But difficult third quarters see range. could some a be little and G&A to

least quarter. in . that I'll part And there in probably third to grants the in year add the be our what we impacted that, in by talked at the second is half referring and timing the of in the that equity change you of back could just were to about, and --

could I sneak quick X just if in. And X Great.

the than just on On proportion greater the operating extra week EPS, of impact it's the week.

was be XX of Is benefit week. the extra restaurant a any XXXX, point that that this time . on think in operating different the from there to would I kind around? reason margins think basis level

about to the of obviously It's whether in we some to remarks, or some expecting that's margin, a we margin. we're points would going it think of EPS parts said I week mean but items from I Yes. estimate benefit extra and about benefit outside the benefit X% basis prepared to somewhere X% EPS. -- XX benefit

Raymond Brian with question comes next Vaccaro James. from Your

perspective market. supply beef outlook. curious your in the the demand get on just Just and I'm commodity regarding the to dynamics

and hearing Just of costs favorability noting that's in beef what you your what XX% you're be the view other later level kind And maybe worth there is of that higher informs on move on what level driving then kind you that basket? anything might of then year? side non-beef the inflation could the expecting set of near-term your and

Michael. the easier it's Maybe part Brian, I'll do first.

expected. half to to continue to speak as the of Another deflationary, of there. out would have really perform flat call basket similar we nothing really or And

of inflation. the being So to being offsetting flat a beef it deflationary bit -- and little

industry-wide little a better has what than The been supply anticipated. was than what bit

months. been marketing has the has to several a first the for been year certainly the and So little led help it a probably us. over the we in And helped they've first probably what bit what will what of weaker that next demand to retail continue think benefit part or then

more for rib think we've rib more eyes by maybe less strips seen of I So grocery marketing item obviously, eye And important marketing us. the and stores. is of a

some that that benefit seen. led So of that we've to things like have

into we'll catch a to year. going back the all are things impact that financial that in is supply the as and the we bigger expectation us industry up our And of of half have move tightening,

sales the below notes I'm think driving if towards All could. see are Bubba's unit brand. of would model? I that to like as that higher follow-up store margins the little time were you're if XX%, my just right. I curious, seeing understand path at least on you XXXX, bit a then And And and at economic where X guess your what's part Bubba's, right. I quick just strong I then over margins, in the

Yes. days. of in the Bob documents I filed sort has you'll in think coming I get that mean see

. So strides, of the the been team that a has great like what to kind XX% that you're has for again, and think Bob's working through for, on we're think and what margin, to we're again, looking labor going just hard see here. side, for range of and in made XX% I Roadhouse the I looking fruit coming

and places and where today work sales Albuquerque others, Bubba's and growing, the local really here their a going marketing store is their to now that's I'll I again, and sales, to that Michael's sense. us, like Vanessa they're we're you take. doing the fantastic lot comment to makes with And it hard to here out of only you're And and that. beginning earlier add point, just are with come Yes. with to really there's Bubba's what XX% are What And seeing think local that through. Michael's recognizing expanding XX there, it's about XX% and have in working that's on but

call back questions will Morgan now Jerry further no at Seeing any the closing remarks. time. turn for this I to

and to say Hope hosting and going close in wanted know It's Kentucky our much a hometown, thank and have to just weekend. your you time here all be Derby. support very great the a I you for fantastic Kentucky I one. all

go. Let's

participation. for This your concludes today's call. you conference Thank

disconnect. may You now