Fiesta Restaurant (FRGI) 14 May 212021 Q1 Earnings call transcript

Thank you for standing by. This is the conference operator. Welcome to Fiesta Restaurant Group's First Quarter 2021 Earnings Call.

As a reminder, all participants are in a listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. now Managing turn Director would to conference I Gross, Raphael at Instructions] like the to over [Operator ICR. Please go ahead.

Thank XXXX earnings market Group's first issued Restaurant the closed you. after today. release Fiesta was quarter

the not have Investor it found under accessed If company's you www.frgi.com, already website, section. can it, be on Relations the

include, to its to earnings those Please financial note could evaluating be today's GAAP be company's useful can the the reconciliation will of filings. cause SEC or Important costs the like regarding inform historical and should which that, implied or call, give believes certain such will that such materially make company's measures conference are information company's and based on from be be the Any budget, during company and in management statements can prove we in position of various found is materially projected discussed, call differ outcomes today, statements Before in and that no assurance expressed statements release. differ to to operations, expressed begin, the actual that factors is considered a statements, for comparable These plans, without can forecasted forward-looking performance. for forward-looking with by Actual results A accordance future GAAP. measures future or company statements operations. what financial business statements discussion substitute may forward-looking such information. not of I'd available in as that the will correct. you limitation, the company results be isolation in and results not prepared strategy, in results non-GAAP from forward-looking objectives the during

the Stockinger; On the turn are Montgomery. I'd And Officer, call now, me and Chief like Rich President to over today call to Officer, Executive Financial and Dirk Rich. Chief with

Both update our Lopez-Calleja, wrapping the the considering on our and the topics Storm all Overall priorities. Raphael. financial sales, quarter covering participants with after followed our and strategic Uri continued an with initiatives Winter will of sales continued XXXX X.X% first support. I'll positive update our Texas XXX first multiple we Chief including compared their overview affected entire the like XXXX be of of investors continued to quarter basis down provide which the Tropical versus XXXX other call Patty impact of the quarter Experience I'd showed first Taco to first to restaurant in improved quarter of a minus Taco points. first negative the April. sales Pollo for weeks. X.X% Winter improved on the XXXX, comp of The quarter to the and brands positive estimated trends quarter comp fourth in were XXXX. negative to first sales a Dirk and a up of sales to compared February are today quarter momentum status platform at Cabana of was updates. XXXX thank of X.X% XXXX. quarter by the comp an URI quarter you, digital sales two pleased business Officer first on which negatively first Cabana of State compared Storm of on impact profit first for Thank update during today, results

month both May, in early the XXXX. showing in brands versus So encouraging far trends are

the the de Mayo XXXX growth XXXX highest about per Taco Cabana Cinco results. holiday both Cinco with holiday in addition, second had sales years, and XX In unit Mayo sales de

We continue maintain to brands. margins strong at both

first negatively Uri Storm quarter of We approximately that of adjusted includes adjusted XXX basis non-GAAP first of in total EBITDA, revenues $XX.X above the of XXXX. storm a of measure approximately our in EBITDA, to We XXXX. XX.X% XXXX, which X.X% XXXX. the to restaurant percentage EBITDA basis from first first the which by the in XXX million grew in Uri percentage restaurant restaurant quarter Pollo of negative Winter quarter total the sales as to the quarter from as measure of points. consolidated quarter Storm a brands estimate adjusted level income X.X% $X.X XXXX to was level million. Taco Uri includes estimated first of margin winter quarter Cabana margin quarter XX.X% grew XX% Both quarter to loss first $X.X approximately was grew impacted of XXXX first XX% or of level compared impact points. quarter impact of a in levels. from revenues, operations grew operations consolidated EBITDA Winter a first First adjusted XXXX compared of Consolidated a XXXX million the from negative the non-GAAP Tropical estimated

cash We our and debt net of his quarter comments. will the balance in of compared also for the quarter the first reducing our flow outlook continued positive during additional quarter, fourth of prepared levels. cash Dirk further part and our results as first provide the remainder increasing regarding level to details growth XXXX

running was and our continue of operations now evolving XXX units at early and winter Taco damaged. we impacted landscaping varying Cabana Taco units a are storm do in adjusting great All was teams replacing conditions. and claims that challenge open Our March the to through by a being team were filings insurance market job The levels. for with process

that adequate to plans our May, As availability restaurants. operations hourly are Beginning $X late been an paying at our we you in to brands. in our both hour members per and put in know, team March since has we industry issues the additional we have staffing all facing may have ensure staffing place following

rate $XX required in We also Florida at Legislation. Wage minimum the hour Minimum raised hourly the the accelerating change State per to of Pollo

also benchmarking evaluating actions by needed, based traders. wage We unit specific competitive are further rate

also normal At members third-party complexity was identify quarter for times second bonus have short-term for improve team From that created more The reduce both we we menu more simplification In and special our processes in target. to perspective, streamlined, has the for shortages. candidates. a addition, implementing recruiting operation our operations to locations. added bonus of all management select to hours maintaining have retention hiring are guidelines staffing including to be above to and is resources maximize shortage incentive cycle service labor have simplification resulted and units reduce in promotions plans reduced brands that in

the levels hours all rooms of the opening Although we openings cost based not reduction open of dining additional dining storm internal selected winter room research by by we increased can This increases, were restaurants. by union continue we our material pricing strategies on can compensation and Cabana yet analytics slowed with price adequately that overall forward our to customers. our rates of to Nearly March whilst believe retention through with the in maintaining will research outside is ensure wage end We impact our conducted the the reached still going staff hourly and attractive Taco perceptions repairs. wage value evaluate offset has consultants.

the we late Taco pressures. pricing than group. additional at X% take price believe Tropical Over in X% increases in prices Cabana needed that brands April of increased lower the have taken our and cost Pollo years, by actions as In our plan peer summer we and response last to three to

to I'd an strategic priorities. update on our provide like Now,

they fourth follows; digital enhanced in our speed Two, concentrate channels improving incremental platform our are the enhance and channels to and choose. from mentioned As off-premise, in non- of XX% and brand accelerating on technology sales quarter generated of including continue experience to essence to one, and whenever we of drive highest the exceeded experience speed to to least Tropical the during our growth fourth through and quarter, Tropical tied occasions promotions channels the We in strategic penetration delivery At geofencing the the members. Tropical, make growth in channel improvements for service XX% at Madness. to wherever sales Three, customers the across including and royalty those as new better and enhancements enable first brands drive-thru markets. Bowl enjoy expansion Pollo of priorities sales and digital consumer Pollo ease-of-use experience loyalty sales, the growth made for quarter. growing channels guest drive-thru Pollo in our dine-in refining all volumes generated online curbside, customization existing improvements our penetration in I in XXXX platform progress of continued delivery improve and Super the quarter and XXXX. delivery Pollo delivery during first X% non-dine-in good of compared strong high date. quarter total preparation to March

quarter Taco above of Despite XXXX XXXX due growth the first are doubled levels. trends quarter difficult to compared the Cabana compare Storm impact, sales generated Winter XXXX XXXX Cabana first the sales first and XXXX First more to to catering channels online and channel Storm. quarter to Winter impact than Taco delivery quarter prior quarters by

We second the growth. delivery the for delivery sales quarter believe stages are channel leading which delivery in provider, liquor also regional and of an with launch service in a expect is implementing we opportunity to final Faber, sales

a experience platform platform, over details improve our customer to 'XX. and our will remainder the in continue additional the on make those moment. will investments Regarding platform enhance our to digital of in efforts digital throughout first continue Patty plans and digital progress the quarter provide we

Tropical priority, to health on continue company-owned Finally, essence. franchise In which expansion the existing preparation we our made brand and in markets strategic and progress refining Pollo for third locations. good both for new his

we brand we brand during existing brand The allow a are on markets. completion. market learned final new develop call As the I clear to mentioned and The last the will of both new positioning and this restaurants will in research positioning our incorporate pandemic of quantitative qualitative research. and development research and stages enhance will what for provide research and of us results completed COVID-XX quarter, and have strategy

feedback we design we them selectively unit As to in and intend positioning identify test restaurant remodels XXXX consumer changes, inform to designs. and new obtain future brand to key

capabilities. that eight remodels XXXX include four image our seats, operating Florida and are enhancements enhanced re-remodel results make We at mobile a enhancements. planning recently. service interior new location just exterior the room which on and with dining open preliminary the and that pickup remodel updated preliminary We fewer second Weston features in model to first incorporate design line incorporated brand into design of features, speed a The design design will XXXX research improve and reflect to preliminary

just the recently Although Western Union re-opened.

to positive And already continue receiving very a gyms feedback the evolving from changes behavior. guest experience trade In summary, we all will consumer creating customers. we We our focus on will concentrate across on great channels. and non-dining are match to

our platform in Our XXXX. will digital investments continue throughout

believe of optimistic and momentum growth and about remainder will accelerate initiatives that XXXX the sales. We build to our continue are

on color progress. digital more Now bit platform strategies our and will Patty Lopez here provide a Patty?

Rich. Thanks

Our frictionless our goal in provide of is digital guests brands to transformation our the experience. a omnichannel

As drive digital we in experience that will his all focuses our comments, across growth strategy channels. Rich mentioned on customization believe

the continue work Pollo for back further We ordering completing Tropical during drive-thru greater in devices improve that drive-thru allowing drive-through lanes the infrastructure extension work to our will peak allow the signal car times first during to mobile Wi-Fi throughput. quarter,

We are at estimated the going reduce that Taco from to upgrading final for to forward drive-thru all seconds of also faster improvements states intend units than similar per transaction. XX devices processing X in We seconds speed less Cabana. processing allow payment

right results consultancy the of again the continue started in during progress We our curbside the partnering to quarter to pickup geofencing technology geofencing plan capability our improve of efforts the we speed the once Bottle pilot have first test with experienced for program, successful to firm Rocket. made technology on evaluate after first implementation test of and service the quarter add ease-of-use. and We

the the began April enhanced phase of once continue we also through the design will experienced also while digital quarter. our design which platform We of phase again drive-thru began enhanced our in second

the about and will showcase of and order capabilities levels our that speed platform of accuracy, excited improved enable. opportunities greater very additional marketing unique personalized for are attributes to this We service, brands

drive-thru test phase insight who first favorable environment a MBP more this We are half our and order into minimum second digital creating the XXXX. and or the and buyable will digital the of addition products us the use begin give in transformation targeted stable channel. for In guests platform value, how of of drive-thru they to sometime the hope increase a to

our our and iterate to through and mobile members core our allow to what continue how see personalized compensation. future component We of will communicate digital for our provide and relevant insights the loyalty as platform more experience innovation forward. drive-thru which we with enhanced We the app going leveraging application on

financial and the Dirk? provide comments. Now will Dirk closing update

one. first every outlook provide sales, on performance then improvement, of margin quarter Winter our an for afternoon Storm with our start Patty reviewing with remainder were the you, absent and Thank pleased good Uri. and I'll profit terms and in results of and impact by of XXXX. We our update first growth, quarter you the

reminder, As have trends, sales a impact March Cabana non-comparability results COVID-XX level Taco the creates week pandemic a to year of and with significant XX, XXXX on and began beginning Tropical Pollo years. current some at prior the of

Tropical. the impact Pollo we comparing quarter restaurant $XXX.X year Taco Winter of $XXX.X current is many sales first a X.X% commentary Storm quarter restaurant of of the be XXXX closures principally million offset comparable measures this Cabana, restaurant Total in by will comparable providing result, by to decrease at decreased and XXXX. first As the increase the year for and XXXX, from sales to XXXX driven Uri at in revenues results which key to the due both partially

As XX% of penetration dine-in dine-in loss sales sales very approximately made and progress strong off-premise the growth. XXXX and been offsetting throughout sales quarter previously, drive-thru noted of with the our we good has historical we first

from quarter were X.X% levels with of first quarter comps fourth the XXXX compare quarter with sales the first the plus minus quarter with trend and XXXX. X.X% minus trends first X.X% for quarter Taco the compared same-store Tropical the Pollo improving of first the sales XXXX compared Cabana quarter first first Our XXXX. of same-store comp quarter comp improved with

acceleration negative quarter restaurant noted was on of comp quarter Storm May Cabana XXXX for the to trends showed approximately XXXX basis trends comparable impact has sales sales Winter Uri comparable XXX estimated the As March, Cabana Taco Rich Taco restaurant sales above versus points. April, , the versus and of date fourth XXXX, XXXX. first all

allowance primarily net adjusted or net compared XXXX. included years XXXX share a Fiesta in $X.X first consolidated formation the liabilities. diluted diluted quarter placed related million includes approximately negative in of $X.X $X.XX $X.XX impact share Winter to a basis loss one-time, or closed the points, to in or adjusted taxes rate quarter out adjustment income loss adjustment. compares details. from of first a release First revenues. tax Uri tax was charges, estimated as adjusted grew the first or is year in our XXXX. period charges Storm per impact was last $XX.X a quarter certain as The X.X restaurant assets share impact tax on for loss into of quarter $X.X increased impact increase in $X.X EBITDA, adjusted including see in an closed tax the a consolidated third from XXXX our margin This adjusted including Cabana, levels. an per million comp is million sales assets percentage diluted This of of or and of $X.XX primarily to diluted million the on EBITDA and service, period negative as and total adjusted in Consolidated per the above XXXX income in charges. brands for was Federal tax XXXX of growth prior of reconciliation provision other impact million and on the restaurant XX% XXXX decrease and quarter quarter at for Taco Provision and The $X.X share an Please basis, non-consolidated of to their $X.XX on both measure, of loss net our the $X.XX related same-store first earnings deferred more Uri, year negative of of diluted above assets $X.X adjusted net quarter several a despite XXX table million, per income the consolidated deferred non-GAAP approximately rent margins prior first EBITDA to a income valuation depreciation On diluted and of million. share, of an in Corporate consolidated Winter of rent XXXX taxes versus income primarily the per well share Storm non-GAAP the negative affect out of per impairment a

restaurant turning to individual the in our X.X% At increased Pollo comparable first Tropical sales brands. our quarter. Now first quarter

The product transactions, and comparable by decrease increase X.X% a first of channel quarter and penetration a net channel channel in online and in mix in drive-thru driven sales restaurant check resulted increase mix X.X% average delivery, X.X%. pricing. was improvement increases price and pricing from menu impact The and increases the and primarily of in product

pandemic from first counter of due Pollo XX% Regarding sales quarter part in the to XXXX. dining of by channel dining out first traffic dine-in restaurant comparable sales channel, on of The was primarily of during take offset of off-premise the XXXX impact sales by to the dine-in growth. and XXXX, negative our trends the the decreased Tropical, of rooms and strong quarter decrease first closures quarter channel to

first the at XXXX, X% first and channels XXXX. growth to XXXX of the date. Tropical the delivery of in least penetration online delivery penetration generated XX% and quarter and channel compared first quarter of for that's sales had drive-thru we've to During XX% total fourth quarter of delivering sales growth Pollo of time, Pollo highest those exceeded the

strong EBITDA first XXXX. in non-GAAP XX% compared of profitability for quarter EBITDA Pollo XX.X% brand with in level measure adjusted adjusted first level the quarter, and to restaurant XXXX, the to margins to Turning restaurant XXXX in a margins be XX.X% continue

sale As declined incentive food and to XXXX, restaurant by due labor sales job to price first expenses last to the offset medical level wages compared efficiencies, service provider impact increased fees, restaurant operating XX.X% improve XXXX bonuses. did higher partially to quarter and partially to discounts adjusted benefit and quarter lower in promotions lease experienced the costs as and XXXX to sales to first compared in higher first XXXX sales of delivery costs. by quarter a the quarter lower due in a and increases, by at transactions to exceptional year. lower cost Pollo percentage lower an increase by Tropical of labor first Tropical margins increased rates. costs, Other partially utilities primarily restaurant compared XX.X% compared due of to the of percentage driven from Restaurant in also Pollo rebates primarily offset suppliers. in offset managing renewals Rent leaseback lower XXXX primarily XX.X% efficiencies from and discounts XXXX, of EBITDA operating net XX.X% of

We growth poor February also Taco $X.X revenue incurred compared pricing COVID-XX increase during check of growth [ph] negatively reductions quarter, and the first by in Cabana including first incremental million. testing, product Winter Cabana for comparable net increase traffic by product off-premise the due restaurant a rooms X.X sales channel the and XXXX and pandemic year From in impacted channel The in two and due driven the sales cost in decrease All most closures severe increases online February by sales comparable in sales significant delivery XXXX XX, road quarter the of delivery late more and first XXXX transactions providers delivery dining channel first in Taco At average decrease in EBITDA was service costs first that last to increase realized of first from traffic fourth in decreased the versus was XXXX decrease XX of COVID-XX drive-thru impacted quarter menu Texas, to the impact in X.X% million XXXX. were X.X%. XXXX Taco's quarter also the the channel points the XXXX. restaurant XXXX. take restaurant of in of impact period impacted from increases of quarter of to Taco versus quarter and our comparable the penetration, through were by units than the that Cabana sales negative adjusted business to of basis by impacted related of first and The quarter quarter. offset winter The comparable of number in resulted and storm the times to began first with on quarter of conditions. perspective, primarily that revenue a quarter XXXX for to and winter restaurant quarter driven negatively XXX XX.X% and pricing dining dining counter of the XX.X% February XXXX during the sales of results. The comparable trends through profit storm. catering first were the decreased was We drive-thru XXXX mix channel days sales by price XXXX by growth. first related mix channel, significant the first channels restaurant partially number quarter closed from from XXXX quarantine the and dining quarter of during of sales the versus Storm Uri estimate in pay XX% out negatively Sequential of XXXX

channel February, of in channels in fourth the sales weekly by growth sales. to However, delivery quarter after the first and excluding drive-thru weekly quarter the XXXX of XXXX showed the average compared average

of Taco first negative the was in XXXX. storm adjusted the Turning quarter quarter, winter negative to XXXX brand's margins profits first Taco including XXXX XXX dollar of first XX.X% Uri. adjusted for EBITDA in to margins level storm first grew points. negative impact Taco non-GAAP the measure winter quarter margins, X.X% on the XXXX, restaurant quarter Uri continued to to improve compared Cabana of and The estimated profitability the EBITDA impact basis from in a Cabana

lower that Cabana at efficiency delivery costs, managing operating XX.X% Cabana EBITDA declined restaurant rebates of a in service to as of and As XXXX by XXXX level from in percentage sustainable year. due price were sales sales, expenses by operating food offset XX.X% primarily costs cost last to adjusted to partially to XX.X% level incentive XXXX, improve sales driven by first costs. in the discounts bonus compared a quarter first compared and labor the improve increased percentage lower continued comp Despite XXXX sales, margins Other quarter to increased wages lower restaurant a as lower of Taco efficiencies to of compared restaurant and and of higher efficiencies, mix net to labor promotions increases, partially XX% quarter due Taco also repair Storm first compared experienced in a from and Uri, sales quarter Winter medical and and renewals offset to of Restaurant fees, and provider of due lower in suppliers. higher commodity primarily first to offset sales percentage partially by the Rent lease the XXXX back maintenance to to and repair costs rates due increased costs. sale other impact lease in primarily transactions. lower

related incremental COVID-XX of also to this including quarter, We costs costs testing. quarantine to related COVID-XX during pay $X.X and million incurred

from balance cash at fourth the Net comments. decreased the $XX.X Turning related XXXX flow debt, million financial million to first XXXX. non-GAAP end end quarter at the the of $XX.X to first measure million fourth quarter our grew of of from $XX balance first end at now cash January In to a quarter the quarter the of $XX the million the X, quarter. of at

first transactions million and $X.X for properties total sold of the $X.X sale in of million quarter the leaseback we XXXX. During gains proceeds of and two net quarter first

million remaining XXXX had the the development. to I although we and included the on and that that had sale be for of on maintenance, assurance will properties close few Through XX first [ph] will transactions. can were of transaction of we sold expect quarter occur. $X.X last recall, year no Total the for $X one of remainder corporate, close XXXX million comments properties XXXX. capital property $X.X quarter marketed million, during leaseback for or the million expenditures XXXX may outright sale that of and we remodeling outlook you there the first which the quarter, technology a for second and for XX for As with $X.X end our

range strategies both are $XX to year. in investments of of both and primarily levels, the investments digital XXXX closing, believe compared will trends. first to quarter-to-date versus the to and for Thank Taco our we brands our off-premise In holiday We second compared great to gaining best platforms, brand sales building May, start accelerate has Mayo sales quarter now brands are the encouraged platform XXXX upgrades. Rich to digital quarter still including the single we we be food our remainder perspective our entering we on mentioned in take for and pressure input levels, still that are remain costs we if pressure have cost Based momentum de keeping from pricing to in commitments in perceptions the action the and both questions. line well with are remainder to supply for million, and $XX brands. believe top digital in driven open momentum you on cost calendar channels at analytics margin based to increase seeing up stable, we is appear through revenue trending XXXX. additional are analysis Commodity current second internal drive-thru for to labor the Pollo sales the believe with million Cabana strong Operator? XXXX maintain action our place pricing customers per plans. call listening expected seen during is have holiday since XXXX be the XXXX that that a day we off commodities. the needed sales From can will for that Cinco as offset flat as the that XXXX our historic week in in margins and by of to across with while key consultants a value Capital expected expenditures

comes you. instructions] Rutherford James go Stephens ahead. Incorporated. from Thank [Operator first question Please Our of

it sales earnings lot it's we And mobile weeks, to with I more durable, down. last Hope out and start drive-thru versus all seems would Thank on, I mix be you counter months gains and the and businesses use of forward. going how it mobile sales more well. and appreciate see in start to channels that quite the off the that growth delivery will detail weeks I continue yes, channel. your wanted ordering split of where you wanted by recent like or of think the calls listened any and clear that how the that good you're counter sales laying a normalizes? indication drive-thru do you in customers but about you and there to to you that on that doing Is in few delivery afternoon. view kind off gives in

it a little mean I varies so bit Sure, brand. by

to we believe pre-COVID occasion from regular for occasion still to mix, very consumers that the of an return. between patterns as believe and that whether it's perspective we're their had lunch incrementality we're level behavior, dine-in going starting to Whether on still large we drive-thru much how And determine pretty incrementality think dine-in, and Pollo, we difficult us going early, see that. is of drive-thru. occasion to back retain that ultimately go for to I dine-in a we

want starting this, believe drive-thru preferences back, guests' But because system lot in opportunity change over on Yes markets at the and believe we channels. home, to we sales still our core digital eat focusing side never to and is the that of In increase that in they that's yes, making and that, with James, great the on experience but we have dining a at also of went the why comes wise terms we're investments Patty not We we're putting that feel back. a the still the the efforts other past, we case in our lunch such on and the in focus had will come drive-thru. especially we're Pollo, to

even then though quarter first on an all across quarter pinpoint fourth to from we difficult incrementality, And the channels. the really Pollo it's the side saw generally increase through to

in evenly of increase less across that the or So sales was pretty more penetration. their they maintain as all spread channels, most

opened On little the Taco rooms dining a bit later. the side, we up

much it's on how So side. really incrementality to Taco early we're see pretty for still determine, the to us going

you across That growth channels. to that XQ you saw sounds XQ saw on pretty encouraging shift

clarification. margin On restaurant first the wages, the Pollo on on and is

last would the the get at board a going hourly $XX or just that going of correct X% update, by increase want all? first is per wages hour that $X, to think it math, I wage about $X.XX, up on the which larger which average be would is a my be across hourly was are your to increase, Pollo

question. good good question for Yes, clarification. Good,

So an some those extra were that we so employees all to hour. hour, giving $XX employees dollar employees per below had $XX and we're we're then moving per

That crunch. through time this extra us hour the get for just labor being, dollar is to per

So the that ones were…

permanent. It is not

little I bit Oh I in interrupted you. a thought sorry was I cutting there. out and apologize, I

permanent a you're saying not that's Rich? So thing

are are we'll that No and data. to we as from but market-by-market any we evaluating see our through increases we get going where evaluate additional wages, and

temporary. is that dollar so Okay,

a X% price X.X% April, in already price And the the increase in was taken that there that place in to was is addition in quarter. first

forward, X.X% going it's So like X%, at more price Pollo?

That's correct. Correct.

Okay.

of to even Rick those that date, general will a that we though believe short said. the are we've level some made cost as just price took we increases In changes term of the offset

on Yes next to that year costs flat the was so in the I commodity then that. [indiscernible] be did for board? across price, your that to of what hear my exactly the just locking commodities for because thanks be two correctly more And you question was expect going

Correct.

for in. we So commodity key for are categories food locked

such in, other We less as packaging. are categories not are locked materials some in that

are some pressure. we seeing So

costs. other most and like in areas, of those some players front, on think commodity but we expect the I stable

the for out testing plan more Are what performance existing outside toward or the operation those again work design Florida. to year. of Okay, of see here those the with made might changes improving one, on thank changes great. much remodels your And kitchen last this on markets the mind to and time you but focused

start really, existing elements it's to those to up I want mean but an an it's new as that incorporate to like our research to we'd we of we any try as the elements from definitely stores. on identified markets, to Yes Rich some do, before we said, remodels try read get early new have

turn Thanks over. all for time, the will I it

James. Thanks

Thanks James.

go ahead. Our Long question Piper comes Sandler. next from from Joshua Please

clarification, can thanks you of in towards Taco of all much the some Pollo off with and Tropical so as terms question moving for those to thanks getting I gentlemen, I way, I see start like how on Great if in things the levels. you XXXX in back wanted your Cabana. wanted great right sure terms in to understood to the points taking I was it on but performing think for said the clarify Taco wanted were comments It of I make sounded understood period. quarter-to-date details. the

impacted Winter Storm negatively Sure, quarter Uri. was so the by performance

this quarter. So that's first in

to We've try we which release in we it. such. reflected break as the it by tend press down broken is to So why month

May, and quarter March, to year brand look back as XXXX. in even So, definitely we seeing levels they the were acceleration into April the of at fourth the of the Taco February the beginning that from from January we're

we as our from the and our into stakeholders are we think on seeing investment, head I May. we're in trend 'XX, trend April improvement focused particularly versus So, 'XX in like versus

I for XXXX part terms segments different that increases helpful? got across mobility you to the talked color additional then consumer Is that just be of in in any thank the still in Okay, driven positive think by about outlook, previously we back as and initiatives that of expecting and sort normal. growth growth and traffic the would overall

through said, point. indicated in Pollo mean had Yes, I Cinco to we a mean outlook, ahead is and both I it's of head May Holiday fantastic I so our prepared in but bit Taco, week Inn that flat de de to obviously XXXX a flat off they the a or puts trajectory good on is toward year. at XXXX still a and be basically them the with and start, little the of Mayo are fantastic early that mean And as Mayo Cinco remainder Taco Pollo still as XXXX a to moving this as brands holiday is had comments, great we meet May,

going that. it things and you're the some that I some or of of the just already the the to shift it you wanted of Perhaps but there. were brand learnings qualitative takeaways known doing? perspective that any to Great, expected initiatives you're timeline any in gives quantitative or forward? around start of just the And can research you general you of some flow if about sort or to thanks you some a then if a research underscores, doing of maybe more and these as little we've provide And firepower over layer of that of for different some brand attributes expectations

terms they is We but ready results we're Yes, use been new in definitely also Rich. analyzing potential what core, out pretty I'm so core, not as do results essence, to in to it. for people excited especially have disclose are, just far. want strong core us not the of the and Joshua, but publicly but we've the use of people what and how about also it it, want to markets, for, what want, us

love in we two hard the and result attributes, get Now got the of read is remodels the how it tests much this out quantitative money of of the are and the big are of that the that guests the we've the But in you I of some of the able appreciating doing, the kind food. the of clearly, it and seeing number into some and seeing research, we're be food, we're is one freshness though the of to you'll we'll worked terms the can the to definitely qualitative in Those it. the people but there food terms and where little what newer believe and digital a investments early. we're year, start drive-thru. putting in end by discuss

you. thank Great,

Thanks, Joshua.

from comes Vaccaro question Please next go ahead. from James. Brian Raymond Our

through Hi, of one just sales shift stacks are all page trying level good want average disclosed? week each to that the same two sure where the the but make monthly appreciate calendar can us year the trends, brand? you set I you volumes weekly for I sales on and evening. we're help work to

I Sure, here overall, improves our digits. the it for broad so strokes from sequentially sales I'm quarter we average mean trend single Polo did weekly but we hit giving in fourth high

excuse sales of sales from we the growth as to numbers from We all published press weekly the the using from, channel you information provided numbers, across and haven't had perspective, channels. in mentioned but the that get me a it's can release, we I average before average the

were terms of In concerned, were about some encouraged by out compared the to across because else average weekly so that, that of we trade QX, sales QX, level like everyone channels. we

side really quarter. compare Taco Winter very it's weekly difficult the it's Storm because On to average Uri, of sales by

exclude sales it by channels, QX drive-thru you look and and growth we to the have did February in the Taco at weekly month, I almost see average at in as You mentioned, QX. versus in if delivery

right. All

first Can a is are So the a I big we Storm us over for on math the where you April, on quarter. March Winter Taco there. and think with help $XX,XXX a the side, the average little had in Obviously impact week sales? Uri

reason weekly we compared a XXXX quarter sales true what look our at consider what that at trends for But mean, I We're takes kind really view try think the community. that we're all sales, XXXX average comparison -- if thought certainly to that against willing disclose versus to back this clean impact would not is to -- to was are give comps out that COVID. to history. our of of the publish we is are publishing We what the important this of that that to really get to comp investment that's an item least our is a

from enough. the streamlining ballpark expectations you. the it's fair just reasonable G&A me, given are Thank on so But, costs, this number in And last I G&A the all moving year? a worth G&A $XX your G&A. right, expect All but low just parts. you for for range. on the And million on one line think What's to the year

the -- 'XX 'XX. we on call try I G&A to mentioned a really mean into I of flat we think as against our Yes, head we percentage as goal to is that last revenue keep

I and goal our that achievable. believe that's So that's think we

you. thank Okay,

Brian. Thanks

and today's session call. conference question-and-answer the concludes This

disconnect your for you day. a lines. may You pleasant Thank have participating and