Texas Roadhouse (TXRH) 25 Jul 242024 Q2 Earnings call transcript

Good evening, and welcome to the Texas Roadhouse Second 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. By now, you should have access to our earnings release for the second quarter ended June 25, 2024. found website be the texasroadhouse.com also section. Investors may on at our in It to that remind discussion like would I everyone include statements. today part forward-looking will our of undue of These not upon future reliance should performance, them. statements not guarantees and are placed be therefore, all earnings and We filings of our to SEC. the you recent our refer release with forward-looking could results to differ documents more discussion detailed actual These of the from cause those statements. provide a relevant factors that materially

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

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

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

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

evening, and everyone. Michael, Thanks, good

quarter with the X us of and do openings serving helped drive amazing pleased the job the our are in billion over quarter. about new growth revenue our We all X.X% in as brands. sales future second to remain continue of We steady $X.X XXXX our pace an of a Same-store excited of guests of operators our store results to communities. benefit and

the in Roadhouse During second restaurants Texas $XXX weekly sales. quarter, averaged approximately

with time restaurants alongside getting leader our trend continue the Bubba's Nothing more positive Texas guests. casual Virginia. and the opportunity sales is the managing keeps Motus $XXX,XXX feedback XX X to working and spending a maintained drive locations than had visit in positioned sales. to people I from its newest as in recently the our energizing and Our the dining partners traffic in growth, brands which XX weekly industry. approximately in

being Georgia. Chesapeake, and creating There's loyalty. including Pizza approximately is Buford, recognized Jaggers, no XXXX Burger restaurant a brand of in community our named Kentucky. is Best casual the Bubba's is helped receiving guest increased and as service in building XX recognition generate also sales $XX,XXX Jaggers Virginia, quick local during that a finalist awards, Best gaining Louisville, which family in are and named being Burger dining was quarter. number doubt in weekly also also its operators name and Bubba's consumer our awareness, Best choice second

first we to Additionally, base Humphreys are military the franchise later South looking on Korea. forward this Jaggers our year location international in Camp

Texas of restaurants. Speaking during we Roadhouses the XX openings, opened company-owned X second Bubba's quarter, X and

all partners we including Rico. For restaurant on track across opened open Also, our the restaurants Texas to year, franchise Roadhouse X XX full in brands. remain locations Puerto company-owned approximately first our

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

made also technology We progress second the our initiatives during great on quarter.

of rollout resources access improved provide us for to our to the come. years our completed as help remain We system Roadies the to Rod throughout company. mobile believe first employer we First, technology an will choice of

the pace kitchen conversion on Second, remains track. of digital the

kitchen digital scheduled that a and We XX% the The restaurants $XXX expectation have is approximate positive of year. of remains feedback end XXXX. all convert by will million for our nearly completed this the current to

on not restaurant and promotions significant the our issues. focus increased the half industry. these discounting there from have from the as in well discussion business a Through been has seen the industry measurable as the overall health of Finally, consumer the the on we year, within others of concerning first impact

and one to will and to providing experience appear we care value to their and changing legendary guests the Roadhouse, of of do recognize best, be focus a has habits. At guests. our we not and continue Texas quality we every each which what on Our do taken continue dining offer our to rods

thoughts. will some provide Chris Now

Thanks, Jerry.

with results. pressures the financial pleased share. in with growth coupled drove per our meaningful bottom a Leverage same-store to lower-than-forecasted are from quarter inflationary second top diluted sales We increase from earnings

second continued our a restaurants. we During guest quarter, visiting resilient seeing the

we mix strong our encouraging to addition growth, In trends also traffic experienced within check.

add-ons For by the flat improving and mix beverages. continued quarter, soft our mix entrees with in but in offset This mix was was overall negative basically alcohol. positive

forward Additionally, third amount menu the same-store our take sales quarter at regarding our of X will momentum fourth through In has into coming beginning strong first normal growth discussions weeks, with we the may we pricing carried operators sales of the the with quarter. weeks. our the the have

our follow the of our maintaining to proposition continue on will focusing structural value impact while of pressures. disciplined balancing We inflationary process

we came than quarter than our enable On the At advantage from our topic this X% back to our and had updating guidance expectation that benefit between current lower of of in of us of impact the year. the beef our inflation, in commodity reflects expectation The and prices this time, second lower inflation floating the commodity take the forecasted that year quarter. second This X% for the of lower from half the costs were we approximately incurred commodity forecasted. market inflation benefited X%. half we are far so of full the both year to adjustment contracts inflation initially than

in quarter, With and wage labor the other inflation regard expected. as second came to in

We through result of also fully improvement staffed end labor of tenured We longer the and with this least year. a trends at should of continued believe efficiency Roadies positive the the saw benefit continuation last productivity restaurants quarters. the several of

Our guidance and X% remains other for wage at the year. labor to full inflation X%

share $XXX payments of $XXX flow, cash the second of to expenditures, ended which quarter repurchases. by was operations from was million, we Cash million million regard flow offset $XXX with dividend cash. and With capital

position, cash accelerated strong were initial and/or capital store-level Given not in our generation approved an plan. additional have flow we projects our to cash continue, that operating expectation for current and

to raising $XXX we are year XXXX such, As and million our capital expenditure guidance full million. between $XXX

us this remains for walk through new will quarter commitment in of productive restaurants And as existing capital second value. now We the are creating to use believe our we excited Michael results. make and a investing cash shareholder

Thanks, Chris.

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

comparable XX.X% growth diluted period. averaging and sales traffic sales We quarter during $XXX,XXX in X.X% per quarter average May share our the representing and X.X% restaurant To-Go periods, with grew earnings By the of approximately sales of X%, margin XX.X% increase or for were a Average sales our in X.X% and increase were approximately respectively. second comparable $XXX,XXX and reported approximately total million these sales third for by a weekly sales. X.X%, with to increase XX.X% and up second to first Comparable April, month, that the driven of a $XX,XXX X weekly also restaurants $X.XX. in X.X% X% of week increased of weeks dollar $XXX June quarter, And per check. the

margin Food labor as XX.X% quarter restaurant week a as sales million $X.X reserve second the week as $XX,XXX. of The check per X.X%. margin of sales for in and total store points sales. to on as dollars inflation to reserve a In primarily costs year-over-year as X.X% of this the X.X% increase, a insurance adjustment negative quarter. million we dollars year-over-year a quarterly was of second the impact per point $X.X by a Labor our points adjustment to The Restaurant had decreased XX hours basis due total expense the year-over-year increased the percentage on growth X.X% quarter's charge store beverage X% had benefit points of XX.X% of basis lapped a to as of improvement percentage The commodity a increased offsetting driven and the Labor basis quarter. to XXXX. impact nearly XXX of change second minimal to XX.X% basis a increased compared XX XX.X%. labor total quarter, and other last percentage for were the XXX from sales percentage year. This wage inflation on

the which sales XXXX. from had were was of quarter of costs operating as point bonuses second than a level Other XX basis restaurant XX.X% negative year-over-year points sales a profitability percentage higher basis operating resulting Higher X increased impact. of

impact million reserve lapped basis million for this from adjustment year. point had negative year-over-year $X.X change as charge a quarter's This $X.X quarterly the a sales. to Additionally, XX we insurance on adjustment percentage other liability expense last of minimal general reserve a our a operating on as had impact

in year-over-year increase the restaurant grew and dollars year-over-year below G&A revenue of XX% compensation due benefit higher margin. of X.X% for majority came to at and Moving was quarter. The second expense. the

the Our income tax our our XX%. full driven rate effective was The the updating Based outlook tax of for year, on to remainder quarter higher rate we is approximately the XXXX for increased XX.X%. year rate our tax profitability. by are

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

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

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

Thanks, mind country can for tour, looking visiting what opportunity gives we upcoming their to the will annual growing where we learn on X senior them to the This just travels forward for and listen thank managing to weeks Michael. their us with partners. I'm our personally And efforts. business. as our help importantly, fall leadership our how is their continue

success. Nation our It please for Roadie food the to and line to of prepared our of mission service. Breana, That contributions deliver for on all remarks. our you concludes to takes thank Finally, legendary all your of legendary open us questions.

line the Bartlett with first Your Securities. question Instructions] of [Operator Truist from Jake comes

of quarter-to-date implications trend. the Mine was the on

mentioned part that. and calendar pieces so ease in August sure want weeks on like the the there's the X% the there, quarter. to in of fourth moving impact. question You of first question shifts, other of last is whether One I compares X just any September. then materially make year, And is July

from think should Or we quarter easing? think the a was and year the the the in more levels? give implications relation for to what whole? you we about of compares could the prior accelerate that how as year? you Just in quarter-to-date comfort do how Does that happening last current those was So

looking the shown a the being out basis, we've no stack, I no in would to look I'm There's prior is moved away the the multiyear timing issues appreciate at in weakness think but that lapping them Jake, on number I on do it's you at Michael. given there the going call that from think really and or say, are for we're X% a years. to we even I somewhat extent what X-year we from happy month. with question. X% there very and X-year first

on comp next easier, on months You but several happens. we but you, is its will are right, surface overall the the a what multiyear basis, in see

So doing focused operators trends and feel we through on are driving we're about and we'll happy to very our more doors, what the guests continue the do we're seeing.

Bittner the Our Oppenheimer. Brian of next with question from line comes

to on a of I ask results. X-part kind Congratulations question great and margins margins. on wanted about

on flow-through cracked hours margins is the First meaningfully the on on than this labor code just the lesser labor seems rate just It much a you've better like side, it's year. traffic. growing at

that's we amount can think in XQ, the help it's on year. how the to can now and half versus you're us you leverage in then get in successful us XQ leverage X going of why first, in potentially? secondly, trend and side, cost pace the just between X% about X% bifurcated so with XQ the whether COGS second going labor it's so So perspective? to what's you remind on be And of those from understand the going to to X a just going food Can quarters,

and food We're the basically, really staffed. the elevated a I'll We're years that hourly pushing has And then I people rebuilding couple I think, outstanding doing really comfortable the And through. Brian, and is teams reps is getting side, been productivity investment the results side and the jobs in years. that management believe which cost address obviously, last producing all labor our Yes, of getting the I tenure with take sales found we've is labor from couple that the side, we're comfortable ranks having. flowing of really the their it, this side. But our to some last of in, of of and way all Michael now. fully through do think on our that our Jerry. with our flow in and will

And This there. Jerry, Michael. I'll is just over jump before we Chris get in it to

the still percentages, in there to the XX% down was this we growth. and speak reflective for about in it's having just were our of We hours got things traffic quarter. mid-XXs labor, about growth compared you food of our Michael, the And the XX% talked labor talking to want the to QX. below to in XX% And the do We're quarter, On fourth Jerry that all cost? we've about.

the to bit this third each X% a fourth, the said little in aren't other. inflation maybe are higher comes time, than quarter but half Yes. X%, the we Sure. it back really When you the where of that from year, you're commodity they to different at

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

a about beef in on anticipating. like cost. And beef follow-up a had a what a X concern it you costs lot elevated come period. maybe quite I quarters this are I for below year, of there they've multiyear was ago, the bit question, guess seems a being

So can the talk I about next X the more beef might second costs? the or maybe thinking for pressures coming look year in, like guess, I'm what cycle maybe just I outlook your about you know current half, in you? beef but some for and

back had going supply question. of the as get benefited from that early It's expected a to the bit the retail be kept Yes. mean out than as to in kind we space Michael. had do. I we the guidance for year, maybe there have expected. any in XXXX. the little the back I pressure into them a of less demand we of and in is it's prices more the The from half the us David, have to we going [indiscernible] from half feel obviously down -- think that high year. belief to expecting little originally for We're Appreciate

beef tighten. thoughts to we'll to We'll probably inflation demand data early commodity I next for industry call. think happens on our our earnings what see out and expectation you the give continue calls what on for the supply that the with does to XXXX But pressure.

it inflation this you beef to going to mentioned whatever guess on then you the Would of X but relates costs this And you I that? take would make. I'm you'll consider topic take more be, are as the Would decision like cyclical? to year. that to consider if beyond Great. be pricing pricing you're wondering in mind? it guess you I cost, that against structural elevated commodity or considered pricing be structural against next that for looks going year your Or some

Yes.

side start through see process of But I believe across we all will at operators a of make the think really that changed have country to I a mindset knowing in talking will the be little we'll time looking a approach few that to the say cyclical, with at then continue decision. going consider more conservative what that what we weeks, would little year, have our that, but a this the of from that things with beginning very our do year. we'll and operators it and a great and

congrats on great and quarter. a Great

Thank you that. Appreciate much. very

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

units? perhaps expansion? brands? year's you I kind some going that that towards? ahead was this of increasing you just for next Are Or start is year. made some the on is of What's on new comments CapEx some curious store more doing other the getting going this of to Or

for talked that investments. the how thanks in good even It's returns about these last we above. We were all quarter's Chris. on of question. of getting Brian, call, Yes, store it's we really sort

so to continue going that. And we're do to

And we're good to of make throughout XXXX into year. expanding So expanding to just We're the that us back pipeline get an this also get we after opportunity areas. to opening dining the put gives that sure some that cadence more house.

Jim of line question comes the Salera Our from next with Stephens.

deliver, by maybe you're quality possible to it food dynamics to cohort? value on as seeing us commentary in like the door. good trade-down customers give seems from any you interactions income strong continue combo You coming that a Can in customers keep and around

a now been far on us, as different we've up trading trading being that commentary what talk which us, Michael. for while, we're it's Jeff, us. than not right have that. to to I to lot a think anything hearing of I across trading Yes, seeing Yes, can we down people

seen our we're now. very ordering are to of what with decision the pleased degradation flat kind mix right seeing they with not guest in any as So trends We're visit us. by

very now, So change no there's that. been seeing, what we're really, right pleased and in really by we're

that at, And quarter. the the seems pricing our talk about Okay. look FAST California labor of specifically during just was pricing some and like data kind your of Can in it California the then in you for around thoughts pricing we minimal Great. market Act? in

don't in speak I presence sure. large can that. California. Yes, on a Jim, have we

So may pricing process. a certainly little bit not have if a take that of there, outside done lot pressure, But you structural our from fine. you really standpoint our pricing to anything more sales on a are comment out normal more like in doing California obviously, California that. stores we from standpoint in haven't there's a state a And

Our from with the Evercore next of Elliott Simon ISI. line question comes

Guys, Congrats of was it's in know sort this quarter, quarter. Roadhouse, X.X% impressed growth be great like much the I same-store on most lot but you've seeming particularly better work concepts on Baba's brand. of may than sales I a a done which like the other quarter.

on So others building preopening figure line [indiscernible] a reaching the the the give walk capitalized And is blocks to performance through to and referenced ROI annually to XX it? X able that of new past? costs, net opening industry talk you've you time incorporating you leases can you the ex about achieved in the strong us are maybe in many how which recently

start Yes. and this I'll off Michael let it. in

us our We excited menu a I really we and think Bubba's are But leadership about wings our the burgers with a is been our our identity just few and adjustments some and been added really, the made adjustments, pizzas the very and in to a few And for products biggest doing. in of couple all our combo appetizer. offerings, testing ago with providing we're other of of really and some a have that of our the of we've -- guests the items, a the restructured On what degree, consistency -- brand years for made thing consistency just operations. successful. is very, and experience that couple

an like we've at going So about standpoint are and operator the excited we'll we up feel and to things we're that we from forward. it where just done, a we really from how ramp continue look standpoint, brand at and

if go equation investment from the Michael. to giving bit rents, not ROI whole little Ali, on is and in can We're your Yes. going probably that. preopening, And CapEx of probably to Bovis and I costs, has the wings focus But million higher question. excluding call. the walk the bit again, through cash therefore, Texas so this more the and on the a you're just in a in cost $X.X you're the its little generate the of margins. alcohol mix with range burgers Roadhouse to restaurant ability probably for And on pizza is a higher

So babes to with very going our hurdles internal that ability believe the possible is of we're meet forward. pleased very and

follow-up. quick Great. know then I in as little a the margin And I What the was a quarter? AMC. it's but just get restaurant XX-K, Bubba's a for

to Elliott, stay Yes, in that the out and let just it we're queue I when comes you shortly. going think

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

[indiscernible] on Appreciate Jeff. for This is the question.

next Just a I seems throughput your you Any digital at Thank help the the guess as are because you. exciting to front busy to technology. potentially system of the be stores at ahead as see the throughout looking what's quick guys going looking that are to deployed. just like just question drive house exciting greater by end -- list? initiatives it perhaps about are the ever. that is It's on fully kitchens

you very for Well, the thank question. much

Again, the halfway We excited about digital are through. kitchen. very we're

ago, successful a be version faster we of AGM the excited stores couple little years pay the and still rolling rolled looking us. new at or to a new on help stands. got We're at out a that's a learning we've XXX-plus table been the over it. on. might very that pay Roadhouse our So about management, are guest very and us We the out definitely things some little host It's

at are we that they're is guest guest the with there. But we kitchen experience the So these management and the really look help teaching all progress. the sure few are and enhance make digital our things and Again, we're that us. in rolling, us there's payer need and a experience Roadhouse up that employee to they comfortable work

them of wins. are So big both

of comes line question next from Lauren with Our the Bank. Deutsche Silberman

quarter. the to that I margin. on restaurant ask wanted

close year. the the near-term XX% half of the to On in first

at longer-term Given should and expect we least guide, other this question dynamics on the Any commodity do year? a you then XX% hit just consider on to margin.

scenario you think inch be guys in like XX% XX% could the talking do choosing to Or margins XX% a a about about reinvest? back As where you couple how to to target, years? we of of there guys north is

Well, basis the Chris. true really it's right? a operators. margins first year-over-year. a points look, we is expanded effort Lauren, led what XXX and -- by half, great mean over by I team it

line but mainly the a -- us. And expansion margin that concern For year the the on bottom year. definitely these definite the all model. last a lot things and that But to we're first you is margin factors to has things are that commodities a second half, think But you of for rest that of the for have guys relative there's half I expecting for second expectations short it's you expansion run to for know, year-over-year consider. this see half. the the margin in fantastic and

your that get north And goal that of a can for of to value. and usually term, you not customer, XX% -- long In you -- been terms long may XX% our your you're lose impact has it you're much time.

Star been continue. that's while, -- that's to for a there's So think and a likely North here I

you the Quick any hurricane impact one weather severe did worth calling out? of that's see on, I guys some guess, and from the quarter-to-date,

short-term it's event specific short-term looked as typically do that you then also area, I Michael. a Lauren, like back. and impact get a feel we Yes, bounce a at in that we mean, for

minimal if overall very the it's any, think we impact, numbers. on So a

quantifying time. something not we're So at this

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

improvement mix -- X quarters a time questions. And and the couple mix. congrats pretty it it, in, meaningful X on ask was Menu call or second a first to on was now great first want of a to menu for did the from quarter. quarter quarter. flat the One I

what up mix us tell trend? improving can of menu assume any you you, down the And month of not is -- this you what to the I in of Are terms of on is seeing customers this saw you color So end trading July? about to? kind in trading that?

then just on -- second And on the hours. labor question

You XX% grew of the labor the we the back that second that rate Should hours to you historical year? half? hours in of than in substantially of end Or in the think labor traffic. less of continue anticipate the traffic kind of more will XX% grow

they're and range. Sure. not some and seeing menu see in the been, basically which to to see that how trend July, And very flat our to alcohol of as we're specific them. us. I year. would mix back pleased that in in seems led had pleased more negative overall, as the remain not the our we're the the but this guests and are societal for prices in Peter, mix beverages but And we I alcohol, to me yes, somewhere has negative it's at value surprise reception into point. the up remarks, into mean offering a soft still issue, as not remaining add-ons quarter. a industry but entrees positive our some recognizing Roadhouse with be with mix Michael. basically were that seeing that we It Yes. think flattish continued And That and much had we'll half with trend holds the that in prepared very trends And mix mix some seeing. we we

what the the operators into see to will seeing. stores optimistic year we that continue the On the future back your half done I part, back see would of the work through year. half have I to that say continue the holds. and second cautiously that hard can to are well restaurants But hours with get labor the continue that Yes, the of We'll the pay trend staffed, -- we're their we think productivity our dividends

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

Congratulations.

specific you've we Anything about quick of back as bucket and it's a guess, I a half anything inflation specific as of there. expenses think margin to follow-up compares given I other Just most of other else know answer. kind this since across back pieces, there, specific question to the over operating the the year. us big think, any onetime I that's inflation, things over the But the items worth balance or think operating to bucket, we bucket year, expense about thinking that the that be of about half flagging, to

on COGS Yes. some we means other Sure. Dennis, margin from bonuses to pleased been we're it's several Michael. pay to last operating that this Obviously, that's that the quarters the the the felt pressure line has higher -- which on of labor leading that benefit the to there's line, benefit the expansion, our operators.

-- then to lot we'll extra the bit for little the we store on if see lines. some back but an growing of back a quarter a But pressure QX have continue dollars those us. top as fourth of more a that we is the line, leverage what per all the adjustments but We'll of if get probably the but continue in there a as to will far be see week yes, growing line. because into half point and QX amount, is reserve opportunity that week, So into the we're year they're half lines, on other bonuses to on see continue our with that the some benefit other And come that of any the of a year. happens remains

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

strongly of so, little of sort pushback what material that know it listening challenging They sector. over You through Chipotle read there's is of a of terms year night, been incremental guys touched pass a implied the nothing own of on your am the mentioned that menu too on your you've getting upcoming sort acceptance last of pricing. that I bit pricing operators. to segment different conversations more current with but But consumers last in pricing. curious or was the I bit little to your

how menu curious I'm tolerance you your lands, moving your perspective, about your from are least forward? incremental at customers' So pricing to thinking

think sensitive Yes. we're it Jeff, to also. I

And our if us done with way. study. a have certain you've very, time, very consumer a We been might long feel you a AU for

definitely focused value which on at guest consumer it's this There intact. heard our value, to our the are like I heating value, But everything and listening a charge and to more we that be. done side. folks got that into think community got from We've so we're little we menu expect And we've from and more. the us the designed that and significant partnership the supposed the should is our as to time. still hearing we're we've built is both. way feel if ever But operators. that We've lot value, and of no there's hear are fantastic got our bit We've than food, we into guests a and service trade

we great as local on operators that we decision feel focused of the and communities. in to as after about, what piece then we we and in portion do good talk front with going they it. the So put discuss then what's think get long We'll our make value, make on that sure continue their stay I is of of guest a

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

just quick follow-ups. had I to

could any some what curious a bit learning of much is I'm of visibility second the planning part you commodity And did first learning? you basket? mean much basket. have about just you're that? kind locked you on kitchen. things back you elaborate for changes? little to year? the Are the make digital have How the do The one you question, if you And exactly by what Just commodity to then on do How the the alluded

basket. with Similar are we lot now. a This formula basis. beef of the going is the believe to start on of still environment right a I'll first that commodity in that approach see half the Andrew, in purchased probably best the being are to the our year, We is Michael. we

detail more reasons, of we get beef half of the into into quarter, visibility better quarter. But where the are levels in our have have into not visibility QX. on And going we probably less So purchased, locked there's year. already then back beef third to for we of much third the some the competitive for so

Jerry. And is Andrew, this

the learning kitchen, digital the really the for and in back degree. that doing some the we're the of organization the house the On cooks really thing are to cooks is math the

of fire not look and calmer it fire environment, tells how the sometimes at having just you it much to to all to So just checks is. when a and

So that's times, cook which We Royal monitor of been big our a is win. stake really side it. our can

coming the have definitely kitchen what of ability we out average app. check the see So is the to

number. to ultimately, we We're that very is all it of our we're employees again, a will be half I up all very it aggressive against positive. new couldn't XXX-plus our and the ourselves, feedback are it it it. in would think to we're time still And from we've helpful we're will what positive. forward. go those sound expecting excited in us got So future? at XXX this of to managers And and at pretty the get But very but stores measure because that very do year into not and help the back

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

on going with year. curious idea -- higher just up obviously taking the I'm of CapEx this little you you're hit rich bit capital. Maybe a And

bit quite have and a with of to now strong seem respect brands momentum traffic to sales. right Your

think great stores beyond? happening stores years. just ability capital open would it couple I'm that human been it, XXXX doing I curious, than a or is So of you've the from a seems trajectory your of in year? that on so more and into part above past kind XX know but Like of next when probably you're you not to to prevent like what about flex what

I our And if that targeting in, pipeline. come number. Thank We've get that XX-ish that extra deals few we a handle for like question. we that. we we're that you know can

So focus we done I pipeline to brands, is 'XX. the of think on we most when all for We're at the working X of 'XX. look continue 'XX,

to building much get We're think and good land special for on a I that it's really of very too further north don't us. we're practice But to So that I XX-ish got out. happens. brands ever we're expect We've going us focused disciplined X number in something number. unless somewhere really that

really new store So that that we that in openings. have pace at cadence and good we feel

in So area. that we'll probably stay

terms that lot Do of forward, And thinking it. few just nicely Jaggers? like your forward you for markets? markets Got infill a Bubba's across how feel -- curious in own you the going kind with overlap going bubbles and I have of a brands then there's know [indiscernible] pretty see to I'm growing roadhouses. you Roadhouses opportunity of near across

Yes. It that. hasn't hurt by us doing

the different right a look the different by put community side. of think there concepts I side I of back menu industry the side are that we feed because in in that by and several side there's old, of have the offerings, lot And as segments. We

and And states pad that believe when benefit the to quality in bargain a not Jaggers the burgers and high their from pizza represent end do and and will believe brand complement in we but other live service the a So up will having And think community. all of level. I be with and or Bubba's communities and that able that. present get we us. a in may we I is They our quality Roadhouse mix got present each food do success. to at Jaggers that be they've on and And something, potatoes to

of line the from Chris Stifel. O'Cull comes question next Our with

in currently with you are X% to inflation you the year? guidance back seeing in for Chris, third that quarter the X% the of commodity provided half line

pattern mean, following for that to Yes. Chris, you. now. to I talk are. It's Yes, we good

off that And off going that Okay. rolling with a sound pricing X.X% pricing, question should would rolling to in replace of company it you pricing purposes, related -- what's will But follow-up the replace are level what's weeks. I does going speaking some confirm several for in like, Is here then next can be about know some pricing will to fair? the October? assume the of operators be in we be level that modeling October. you to And as

first going the part. to I'm answer

billion to -- want speak operating you if, still to are know Jerry, if And off. still have had we talked have -- We not. do. to work our You to I It's we mines. The don't rolling correct. is $X.X that specific or question

Yes.

like call. feeling little and conservative thinking operators into with I think the are -- a what and early mindset. say, go We'll it, we we're too it's just we'll still to that a make see

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

I have X quick ones.

first I just know going it if don't is back, The maybe was question. John's development

second in of think the new with specifically Anything Just sort in a of going units this I sort number. store productivity XX% of to kind trying new the where like opening different up quarter low kind the of on is is terms that just XXX%. more like in row areas? through

we tell with Michael. it's I pleased and look their they're are their expectations our hitting Greg, at When you, performance, I very store, the and new can hurdles.

and a maybe at couple a a we of of for have but new pleased the that a separation last that the restaurants. it's is growth the You stores level of quarters brand-new years couple over maybe part or can whether to of comparable run restaurant just very our incredible performance expect the aggressive, of little expect to reason the are is had with

and in to you labor more frame Just cost what in then over on a just you on of going technology the there's be XX Can help the unlocks. to sales allow months. And that the the Got do on benefits going that's side? it. to kitchen if that's kitchen what going next side,

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them that screen bump front to checks screen. in the on focus really the of So allows them on

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employees pace just real the we're that's benefit. using -- on system bump very steady So because that of this kitchen. the the The digital a keep

very still excited. early, but we're So it's

Our Logan RBC Reich comes Capital of from next question the line with Markets.

improvement? to wanted kind bit on then the little just the I a quarter. big can exactly labor Congrats talking delineate prior Roadie really like X sort of results delineate Roadie that? labor now. of Or improvements this key kitchen or of a question Can Is the you you those First us driver just sort about feel coming like on I have the guys while give asked a about improvements follow-up from? us help help solid of also been of for digital where to are a drivers productivity of system you the dimensionalize the that First

years their have their wouldn't improvement. the Yes, say Michael. it's are is I that restaurants that staying big restaurants the of our that staff hard drivers getting Logan, well our restaurants. last work with of and those get Really, operators over it's undertaken that to the several staffed

quickly, more much. had jobs, do at -- to can They They've it as they so it. more they're at and doing So are better train reps their tenured. we're more are they not having

have. last a the come and more now that coming through. seeing -- seeing do hard what work of with to to able we're we're is years lot several That's we what So really the benefit fruition

Got you.

it guys? how have, of of sort a it's you quick bit for you sort And like how -- guess of would versus X to on about characterize just out an growth of Or we post-COVID a takeout then necessarily business X driver That's of just looks takeout take accelerated just helpful. not little while that but like in-store growth the nice Is still to in-store. I relative Okay. the area wanted a have business. is the It decelerated to business. should think large you ask in-store that Great. the QX.

about look, Yes. you have said the you're but asking the feelings correct? on may think I for business, And our business, dining that to-go

a business business. takeout Apologies. Yes, as driver of the Yes.

still is area big us. to very certainly that Yes, important a and of focus

only is the increase see in trends We dollars the go. in an quarter, of continue and to feel we what guests very there sales second number served not with to the strong

get they're able continue business as are fuller, make is business something their and to-go definitely core opportunity drive out. that They being upon. to those focused but sure and operators full absolutely is more diners to So huge that something want a our view to to

I I sorry, that week average add -- at $XX,XXX store. was going that's to each just a I'm mean

and That is significant. So us. significant that's business important it's to -- it's

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

to pricing understand. back to discussion, go dynamics the to wanted I sure just make here. the I

quarter, get you're we going X.X%. to about the fourth As roll to off

of into a I'm So pricing threshold flattish leaves that in a your about your to that X of of slightly decision-making, outlook adjust most declines, wondering cover that if up the how probably price quarter? on fourth going there's inflation. if traffic traffic traffic say, points plays is you could would let's role

this Jim, is Well, Michael.

which -- we're me have start we'll with for about pricing, X.X% currently off just with running Let QX.

get that pricing XX So to rolls menus those our And coming when make off, do additional need there is the pricing before be printed. over the any decisions a actions. because month lag leave us to will with obviously, making those we'll decisions time we we where X-point

trends comment operators traffic that will our part So certainly process. we or take decision-making always on our absolutely consideration into of their as

Let that. follow-up me to a just add --

the And their opening entries? better recently, pricing promotional for some hoping price point part of discussion down Olive the Road Garden to or of maybe everyday a $X.XX. point value has price menu reducing Texas a get to in price entry-level on the by took Is consider think lower I point. price offering about point

any would Jim, everyday our our early We point, speaks We do itself. promotions. say, don't Michael for it's value have Yes. at again. this I do time.

in the is now there's down bringing of anything. a the handful I come the of first don't and items -- think there but us discussion early prices on when can opens store on right any You discount a and

about I value feel think we prices where and offer. are the that our good very we

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

of the Roadie on be hourly much how your on brings elaborate functionality employee more how teams that efficient or up give can following share any labor. might benefits you the sense there metrics And Could on experience? on Are just turnover to us or mentioned First. what side. a just you Just that the you tenure

continues of able first share Yes, it's to Brian, going trend don't the think on have I be right turnover, it pre-pandemic direction. we we're at to the to below levels. you with mean, can It's a ton information Michael. or I that in I tell you.

that that So here stay us how they very to numbers is higher typically, someone tend for I talk quite would to don't But with with have long that. With me been to us with days, XX-year, with see right any Roadies if for comes while. great have us. XX a

productivity, else driving to able that it their see So another have pick our First part but we're item it's your over that gives to for technology. just they easier to employees' our just is we're again, provide it's was there question necessarily on third to of Roadie seeing information that the it us. reason some less benefit a so there. access employees would And makes their information. a just then Look, to and someone it's that I -- lot think one don't

And So just a back-office to mobile support it's the then program. there's also the of benefit RFT access. a really center combination providing

us become it provide then employer a to choice. essentially us systems, but is other back-office and number that with that things employees helps does it the technology mobile to implementation, and of It's Workday reduce allowing our of

right. then if And All X more, could. just That's helpful. I

the half. incremental costs On last second some call, you in noted the

that on you in in there I front? labor, think Do guardrails willing million G&A still G&A. million would on been maybe year? Has it for $X.X to change that? you was $X expect the some provide be any And

we're absolutely grant. still Yes. compensation expecting They making, a changes program and an that it's are those from quarterly to are they costs. going annual We to grant our relate Brian, some equity Michael.

feeling in the quarter. So we'll that third impact here start

is as percent goes, As remains a we same it's where what far the may this said be a G&A slight the G&A I deleverage. as slightly it's maybe -- basically revenue of year story as a before maybe think flat, of

compensation how for us your a with expense. continues year us, half on assumptions our depends accrue the requires do to line it being of bonus year all performed. it We and how think additional has we for the -- probably -- the to first then some out play XX-week top year I program

We year. have to lap that into next

flat revenue year-over-year you be guidance the I can expect on probably percentage a G&A probably you. So yes, give to of best is

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

business Just faster maybe timing a emerged shift you your capacity of it just a house, of quick any is strong. sort about like maintenance or as as of the think deferred this like Or this back forward? is clarification because -- been so CapEx. pull constraints has Is have the a on perhaps the

as right trying earned returns you've increased understand Just about kind systemic the marginal it think the to certainly I to CapEx. of on the trying understand

Sara, Chris. Yes, it's

of some of great the the and have that exactly then right. that that facilities and to there kitchen our refreshes think elements great sure And our we house have it terms expansions, expansions, have you employees expansions, are for back for dining I returns. The making guests. do in room wanted we those

were the And the so but that we those on are some those things of it list, make didn't quite into budget.

it making Now in. they're

And that's it. of -- get we're -- great the out so to benefit all really going that's of

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

all there. We Thank Roadies night your you to Legendary. Keep time all. and Good out you Rocking all. appreciate

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

disconnect. now may You