Carrols Restaurant (TAST) 9 Aug 202020 Q2 Earnings call transcript

Welcome to the Carrols Restaurant Group Inc.

Second Quarter 2020 Earnings Conference Call. [Operator Instructions] I would like to remind everyone that this conference call is being recorded today, Thursday, August 6, 2020 at 8:30 a.m. Eastern Time and would be available for replay. I will now turn the conference over to Tony Hull, Chief Financial Officer. sir. ahead, go Please

morning and to everyone. earnings our both, the earlier that Mora, website on should www.carrols.com at review now, have are under this released both access earnings Relations were are good you, available By our section. morning, Investor you presentation and Thank announcement and

plans. will not regarding remarks, which may statements, of our begin to our we and reliance forward-looking intentions would like therefore, are remind should placed of include comments These everyone future performance, Before not I that guarantees on strategies, or our statements discussion undue consist them. be

also risks with the that We COVID-XX. including SEC the our our impact of especially results, business details, you refer could the to for filings impact more

with that During The today's measures results CEO, considered turn accordance substitute over we our in in Dan? will generally of be presentation in a now our call, should reconciliation performance. evaluating the principles. useful isolation with we can A With Accordino. will not I measures for additional release. and non-GAAP Chairman believe information this available as prepared earnings to is be comparable that, or accounting discuss GAAP certain Dan call accepted to our

nimble in our operations paid guests the and pandemic, certainly our safely today Since morning, would onset have COVID-XX. adjusting everyone. to Tony, and Thanks, good and call like serve off. by, to by been one during the the the our I efforts have employees our dedication realities tireless and begin of today's of every each to efforts marketplace of thanking for their we

to demonstrate environment With where do in results we today. operating that despite solid this mind, like our ever-changing stand summarize face. clearly fact, very the to unpredictable during well in would we second the challenges I and that ability In our quarter

to restaurant both is and and has stabilized driving This Our profitability performance adapt. continues sales improvement.

enhance our strengthen future. believe enable which free And position. should already prudently free we and us balance flow ample are that foreseeable expenditures, believe positive our significant continue sheet generating are capital we the we liquidity for to cash will We our managing flow cash generating

Let points. Restaurant these each me briefly performance. discuss of

Our strong and to drive-through, a need We our such service at a and business believe lesser channels, navigate today business. and as ideally of customers which limited that XX% the built the restaurant they counter no-contact these comprises environment. about delivery is convenience the situate to recently model upon sales COVID that us models provide extent, implemented and current takeout

this also an this one call quarter's we any encounter those we for limited have restaurant additional close staffing an in shuttered Year-to-date, diverse been open this impact to region X of a advantage XX underperforming remainder or X over restaurants. supply geographically that reopened. expect any restaurants. XX had permanently few new year. and to short-term restaurants XXXX XX last temporarily mentioned X XX We time. revenue, Carrols we plan the portfolio of pandemic on to restaurants restaurants operational At We time, shifting has to at total closed and new XX for opened of has states Our region during period. the from a issues only The closures of restaurants have

Popeyes For and restaurants. X.X% for full XX.X% restaurants sales increased the comparable decreased quarter, King Burger our restaurant our for

However, respectively. XX.X% X.X% were positive, in King and and up comparable Popeyes sales Burger June, for

results are week of see We positive the similarly into that to continued and August. July pleased first have

service DoorDash, several King providers with partnered have including recently Burger of Eats, our and we delivery, Postmates Uber for approximately of more Grubhub terms In XXX restaurants.

counter. order sales order size an twice This size the the or total Burger average of X% with restaurant approximately the drive-through up through is at made delivery quarter, $XX.XX. the of During King approximately

us we capacity, which We COVID be resilient this will time. dining or ever-changing the given to consumption continue to for counter allowed of proven lower strengthen still we partners, have Not have efforts rooms are of surprisingly, sales decided of believe to our have delivery And off-premise of trends profitable and from improve rooms included based channels dining our related all of or where shift takeout sales for reduction dine-in, in our systems night. the ordering. these opening we cost food turn, channel the in have are chain customers also modified operating our platforms. our rooms integration now majority over our in roughly as distribution the reopen late not of state and related supply This guidelines rooms. away because Other dining maximum costs on to at majority the their for operating breakfast restaurants. drive-through adjusted local enabled day a open part Even restaurants the to XX% waste with opting reduce has, and realization dining hours needs overwhelming

efficiencies our implemented averaged to in have King months. several recent labor period. over employees On been the compared particular, in stable XX quarter The have size front, during year-ago the the labor we team during Burger the restaurant per XX period

to recently, elements geography if restaurants of We staffing hours operation levels of dining some would certain depending are use expect more local modest increase. of However, on labor expand when rooms and normalizing conditions. and increases and

cost sales of Cambridge fourth of as quarter a integration, sales improvement sequential about and of sales cost XXXX, XXX on XXX XXXX more improved by by basis of net the than basis we Comparing of are points. cost quarter As in second percentage a net seeing improved as of labor. meaningful percentage points and to sales update the labor an

successful is this our this execution of COVID process. improvement a of integration also portion reflects related, While the

restaurant positive a and by our XXX overhead training the non-restaurant wages is the In which increased trends, during level for Note our outcome. expense margin wages also XXX we restored quarter. points we our the a aggregate, reduced adjusted addition improving restaurant to favorable in basis regional EBITDA corporate margin and and X. XX% adjusted second the In streamlining quarter regional management July reduction on period, instituting temporary that prior-year process non-restaurant second structure, EBITDA level we we basis compared to levels points think by by

we fourth build third Looking to year-over-year in and the on quarters. and improvements to certainly achievements margin these intend continue expect ahead,

given we level ongoing to second range the points do XXX volatility in and However, quarter we the clear uncertainty the margin of me itself. in because be same let outperformance basis the of expect XXX that generated that the pandemic, not of

and I'm $XXX availability million position the in ended under revolving financially. balance credit equivalents, of liquidity, Turning very to strong facility. pleased in quarter our cash our a and to borrowing that We $XX sheet million cash are and we say with

we have We a no under no very manageable borrowings also debt credit of outstanding currently believe revolving our we facility. level with maturities have and near-term million $XXX

For our the reporting to second resume be revolving if not we will our million. leverage revolver $XX quarter, if borrowings set only ratio facility required exceed lenders our were required -- revolver and not report our credit to debt to borrowings

In CapEx, expenditures check. our we of keeping committed to remain terms in

During the mainly spending second issues. quarter, we maintenance managed restaurant to such necessary

to expect sale For million the operational continue back net lease total capital $XX about year, proceeds. full of expenditures we to

for approximately remodel year and other spend longer of the new-builds, to million expect at it CapEx keep With three toward regard $XX next build-to-suit for to selectively end million we with year. attractive years. should to this begin ROIs seek maintenance per initiatives is We that that years. $XX combined XX upgrades to a our the believe this opportunities XXXX our horizon, system-wide and subsequent commencing will in CapEx over restaurants we three expectation with per year Looking current our the

and adjusted our the ability quarter drops As we business thereafter. strength we these the of demonstrate ratio in to and it also should defined pandemic adapt, credit are our second times. us relates our to off until model our acquisitions, X To leverage weather to summarize, on enabling which as us help under is results our to thrive holding agreement believe now

also to that have shored capital our longer foreseeable allow We leverage the will growth us in term level and our reduce manage liquidity near expenditures and expect to at up term. future a invest for

on taken through to me have stay rooms reliance course, we goals, as dining to should current improving consistent to the review able within execute restaurant and call ahead, and growing channels expect our level through to the Tony are portfolio with turn look to these costs. that, we to be we line financials. our let acquisition, capitalize delivery control sales continuing Cambridge will, drive-through, and minimal we we to eventually growing continue steps flow. on over of the our our margins If our top generate With we are significant, our free cash opportunities operational to As we in a relating to only able going carryout

Dan. Thanks,

sales million $XX second $XX.X increased comparable EBITDA sales This the less points points the the $XX.X to last in quarter earlier. XXX revenue to in from Burger due margins beginning in the mainly decreased period to second owned prior-year XX.X% quarter. X.X% margins percentage have primarily of points. of lower million to second to adjusted of period. basis year. $XXX.X margin restaurant last quarter, revenue and Improvement of XXX increased increased revenue. offers of forward. $XX.X to calculation and in King underperformance restaurant food basis $XXX.X from some year the of $XX second comparable prior same to restaurant sales. decreased year to XX, million restaurant-level net basis, XX year. Adjusted we King restaurant the sales that improved sales prior our restaurant last million Restaurant-level compared outpaced quarter Cambridge restaurants period average the promotional percentage restaurant EBITDA compared on King This was EBITDA of of which restaurants quarter. points $XX.X points and basis Burger year-ago XXX new guests the from Popeyes as This XXX a million. to Adjusted XXXX, that as in April includes the EBITDA to underperformed the Burger as Burger waste, the explained Dan quarter million increased approximately in the to Adjusted the due Cost comparable the XX.X% period would the by the restaurant system increased XXX million cost by improved million due a in percentage compared Cambridge our X.X%. was sales XXXX quarter system Had sales on in XX.X% date U.S. King labor from acquired of the For openings. the Burger King year was basis timing quarter of

in ground X.X% averaged the from XXXX However, second period. and per increased of $X.XX quarter beef the pound year-ago

in the remainder only to of especially but elevated seeing restaurants. third operational the trends the for costs overall degree and believe impact quarter volatile sales the improvements slightly quarters, saw continue second be favorable We we beef expect of fourth the We XXXX. the are Cambridge in will we cost some at to of given

expect have not our wage legacy adjust Burger This we are the Restaurant full the and points net have upon compared sales part restaurants cost requirements to a been be a as year, sales decreased sales percentage able hourly prior-year we labor For rate most our restaurants. in that of that our of reduced dining in as quarter King also consistent however, X.X% of hours costs labor operating XXX percentage based basis of expense across with the rooms. despite XXXX levels. day is and will trends operating to increase our a sales because

on outlook are out somewhat by as uncertain of factors that many it this control. is impacted Our our is point at labor

decreased to a the period of to Operating sales costs include prior-year basis as other and a period sales in Given restaurants million and a operating Other to response do rent rent second utility, sales. COVID-related sales a dining on to ability a we expenses sales the that should lower improvement that $X.X lower well enclosures. XX restaurant of the and quarter of thermometers, maintenance, trajectories, to overall as level continue primarily of percentage percentage impact masks, in in of costs due XXXX million contribute our basis compared were restaurant points believe prior-year guards make changes on to of expenses XXXX face XX of quickly and restaurant legacy in quarter General costs. charges fixed as compared including costs the as points benefit $XX.X percentage acquisition an we second higher operating in acquired and $X.X expenses abandoned sanitizers. development integration basis primarily percentage supplies, administrative what as of year. repair the to on Restaurant revenue do control as we and due from and margin expense adjusted this increased labor in to and adjustments the exclude from million sneeze

expenses of of percentage adjusted X.X% net were a XXXX. the As and administrative in revenues, general second quarter

We remainder of at that remain level for expect the to approximately the year.

income or $X.XX year. strong an generated to million in flow On XXXX free in this quarter Our has or the second generation items, been million $X.XX cash $X.X bringing certain was basis, net per adjusted share. diluted $X.X flow cash quarter, excluding quarter, net quarter of million diluted the the $XX.X was free Free flow second share. year-to-date cash in in $XX.X million. We non-operating income per second

at times came quarter. end cash at repay Given X.XX use in June times the flow of free of the compared leverage adjusted first our X ratio at XX to the to debt,

we've the some XXXX one announced, formal have provided to today, year. this for week additional our guidelines our previously XXXX remarks. operating remarks prepared has of the fiscal year That withdrawn have although we concludes course as earnings you compared that Note our in also guidance, we Finally, XXXX.

that, So and ahead let's for line operator, questions. open go the with

from question is Bartlett Truist Instructions] from Jake The [Operator first Securities.

or sales just hurt I And the snafu sales. first basis. trends monthly error the believe now the lapping which is on My year, we're same-store from same-store last on discounting

it I depressed year. think last July

extent. as well to June some as So,

June So where in slight guess appreciate or comment much how can not and in it. the context of compares, I what's do easy acceleration? a you deceleration seeing the the right of business factoring the your of now in from might compares, kind was how, assessment you we that, If those easy or momentum July be why on in think I'd

I mix. mean it's all the in

with pleased August, bit strength. June the saw pretty little we're week-and-a-half in showing under it's July. belt we have our and August sort actually of July the numbers. and a hard, stronger it's of numbers It's So June than and a we

maybe King last has of double in it the due lapping of Burger month. of also So very to at issue the promotions some the be to that the successful seems then is but discounting some due to that put beginning year, place

pretty about environment. feeling this on we're sales trajectory good the in comp So

concepts back dining rooms it the impact trends an really on of to half is holding back in as frame how advertising still of normal? drivers What back to asking, year, of And these expand can driver. operating as quarter, part forward, look And in what an more marketing dollars likely you potentially sale? or wondering we much that, second about also I'm I And kind I'm could some be that the there underspending of in some kind driver? which the incremental sustain might same-store half the accelerate? is help have talked hours to incremental about then of opportunity year opening be other back the spent be of know of have the will might

year. from the X the $X marketing for last of weeks of OCS balance in transitioned couple drivers, marketing Burger and This a $X with And the Whopper primary is the there to for X confident the in of We're initiatives plan in And and for just very year. the the they Dan. being significant are we're have calendar the response seeing to the for that the balance other the King that.

and So calendar the we're spend. on bullish marketing marketing the

breakfast at hours. would of be we to of a hours will some from they case I The They're some when the robust operating that we've, where of that expect period We had and doing for standpoint, closing were as restaurants time. XX before. midnight night terms were restaurants. pre-COVID now that are were late in In as not terms hours, we're opening back we're

you dining In avail about that reopening not drive-through we dining to customers takeout. comfortable XX% in sit seeing restaurants we're more rooms, have if But of where our terms can choose. of themselves or the room They're the still opportunity. you of going delivery many very

on last the my And savings. of is margin just the question it. Got sustainability

kind You're of level, number Or back should do both well that to go negative margins of the from come? of meant benefit the store? same expect How despite learnings as that great the -- sustainable? quarter any per as operational getting same-store to much there sales. you this years or other at -- I corporate store level you to Are employees the obviously, is changes, were the

going we Tony large more Well, but I than but happen don't that to is degree QX, margins question. were of they know have gave whatever come, about that QX, they tell years answers in less certainly than cost balance is to your a beef, I function for to you a our which the you can XXXX, are if continue sales that. with of From to of were in assessment that standpoint, labor attractive of attractive will a

it. Got

I you Okay. appreciate it. much. very Thank

James Please The Rutherford next question from is Inc. Stephens, from go ahead.

the just off start specifically? on integration what units portfolio congratulations strong Hey seeing improvements wanted of as the those as profitability to get there process update well on quarter here. sort an you're with I Cambridge with and

of Cambridge, XXX basis we've labor cost we the points we've all. labor the And labor where Burger at at points reduced from the we've we of didn't basis a assume were some in our XXX the the Popeyes, Kings to that they that We've have we actually would a on Burger because over that work to we've standpoint, of by managing reduced sales. reduced made formula in they fall, sales make. do labor a Kings. last points. by expense couple Popeyes, from over were And as still the basis progress got cost said the narrative we XXX by in

that's the and a primarily stores be to now and occurring, bit add had It's widened little -- seem Mississippi. gap and is would the stores COVID in Tennessee which legacy the between Cambridge because the spike of narrowed. where -- I So sales

So virus But influx of terms those of month Cambridge. ahead headwinds the the markets. happened so we're we what the seeing some in would in in in or we're schedule do of there past terms that's of we because committed of

we wage then question of all on -- a and normalize a -- rate. curious abate. the the I'm expect on whether wage I Excellent once actual will maybe just that see restaurant. and will to on perspective a Okay. will It's follow-up I'm that question wage your moderation some likely that you're unemployment nearly in headwinds with you COVID today that. controls. headwinds a every portion those curious front, last to given understand of the crew running smaller ask

I where the would states than we're which of that take effect in that our right over minimum of January. will where prior and we on which there Well, terms you have expect mandates, a would rates. year-over-year some number which wage are fair lower. number other midyear mandates, be take effect at have X.X% in of of I wage expect now, year most a basis

on is material final improvement, volume service times What to is been able to And you've so today? of my restaurant do of level question just given in if going more how kind that's drive-through running drive-through. through drive-through terms the your much you're

And in Well, is interested we've always drive-through. focused we're on what the throughput.

end is time the roughly the has menu and the from the in to to board the window factors. window we two measure leave menu can The time from with drive-through. in up XX window. board the drive-through is time drive-through The XX same. to time drive-through The one window the challenges, you You cars the has improved. the stayed time One

XX the drive-through be you minutes. before drive-through that guests got to get board, menu we've for in could the even So

next The Instructions] from question from Hamblin Jeremy Craig-Hallum. [Operator is

could the ground if basis? see couple is last you've price What the a been weeks? clarify prices. in pound price to on seeing What of have wanted the I I per beef

$X.XX, one take or then to mean, $X of roller sort little of COVID, a it a dropped And I I few cost, down we've like at so. mean, this the COVID, went spiked started, it's back $X.XX four of which of and bit mini you to beginning like those, weeks last but of the It bit. in and been the now we at over I'll a didn't I ask seen a, At guess. back in started on you $X.XX to about subsequent the beginning last the it's $X weeks, weeks. two saw question,

sort getting So seems it in I'd to of to be violent, range, it and $X.XX-$X.XX are be I say. seems ripples less the guess, stabilizing the

gears me it's delivery. about said then to think point. And switch And talking at X% this I you of let sales

whether the the In the all down? it that up has or terms maybe you're trending virus use, don't methodology, your see down, usage been calms delivery, You of trending trends restaurants. of the seeing as of that you do have at

get there Popeyes. said sense a you I also you on plans Are a to, mix going think point. wanted get And of all the then to for restaurants are to XXX this at delivery? delivery I as just

Those were there. lot of a questions

early allowed So that the the doing or couple we we go $XXX,XXX and technology in the a were just and $XXX,XXX we release about raise million store, week week from we're include Popeyes, a to per then about on we you to, last $X a prices versus at delivery average if us an to point. saw spoke this of were at last June, able to weekly when of about we weeks to raised, We out put ago. kind to you raise

in and XXX still those in So it, restaurants.

So revenue and a profitability standpoint. meaningful it us, for channel for new a continues to from really be revenue powerful

service I the because is our delivery we couple restaurants, well, at point. XXX no really, deliver allowing there's obviously, us of that So there's think there third-party it not to remaining that have product don't

those obviously on. as put restaurants So in, we'll companies the come

I quickly would thing definitely integration have in it. think put important the was and the liked as systems robustly incredibly most not have to as we is

on systems the and up integrated And all of running have an we should outsourced providers that have September, to integration X by robust delivery. full We basis. are getting towards with them

and and we're improve it's us, channel important just own it. a become and So profitable for very it it's, to just going very continue to

week we week. to from Jeremy, July, from April a went $X million $X a to

addition. nice a That's

put had it cite prices? negative price a a through your could sales, the If you certainly doesn't points since done like margins? for in a What on you've since maybe positive seem of, your impact that's put change you've on terms it in that the one. has as done basis those increases, you So maybe

it, it's, don't those, is expense basis. this leveraging operating business additional, And I We which of of of a a of is headwind of business. that's headwind, sales, cost the incremental on a have minimal it Yes. margins, But sales includes It's fee. delivery and mean, really kind still, we'll a we're a, and from take a those. really probable but cost $XX, very on tickets bit labor $XX. at a against rent these it's average

you We gotten the of numbers kind run incredibly profitable. see that details, at haven't but you into ticket can the can it's level, and

So, and improve the increase put that profitability. we it in with obviously

not running Jeremy, delivery, charge. the big delivery As was expect average I a We $XX I of $XX or a kept not you $XX models fan recall, at tickets. but average did

exceeded it's expectations. and that glad remember I'm I

for come So second. Cambridge just wanted to back to a

to So since that get on points? XXX cost legacy you line do further of on You have think noted standard improvement the How that point another [indiscernible] have BKs? there's of you much QX item. your to you to been basis go your basis sales

We we bps. another XX got yes, are, still

Yes. come. still And to Popeyes is

quarter sales. that's really get cost haven't, We of the initiative a third to

right on of we cost haven't the now. the just improvement really systems We because far had haven't just seen at going integration and so Popeyes that's sales

for focused debt the free and really is on cash levels. flow then one last the And me

Xx to leverage. to you get want down noted You've

uses target just of, your as to applied if to flow, you're your or several mean, an is of the level, million? free want free CapEx stock? level the cash, but is have cash you to there Is $XX substantial the can you're substantial going of level debt get would uses you flow to back a generating to paying -- terms pretty In the going years, that moving get those been that down the that -- down there buy be on rapidly, to talk debt. Or $XXX million that I just about just absolute Is cash next you to $XX be to? of forward? million that absolute for total looking you

were a never not debt pay There we would down point, this it is target B that the Term reducing if And to and of you back. debt level. can be at get Loan absolute

reduce So B if you so lose Term the back, don't amount, you Loan capacity. it you get

not paying a in we by the because, to to we it's down We've Term Loan down capital revolver, going our permanent access So this zero. paid are reduce again, already thing. environment, B to uncertain -- paid

So Term when and that's -- that it one down, down. goes -- B goes goes it goes down. But Loan up

into repurchase at no to right -- Loan is now and there suspended I start plan with So we've where to this we eat share go that Term And B. think point. our plan

decisions what on sense talk with year next them better in you. the So later allocation the a make -- looks and have we'll the we'll about of progresses as year. is early like, and capital going the where We'll environment year we see net ratio

my Great of guys. forward. thanks for taking questions luck Best you all moving

Thanks Jeremy.

Vaccaro James. from is Raymond Please question Brian next The from ahead. go

you could color sense if better to, us store seismic I business given shifts I to more you've was the I P-X, that was of maybe on say, environment? seen current and second just saw in on the through the give hoping morning. a were Thanks, circle compared a good little store P-X us that guess, wondering or in margins industry give to where margins. margins the the say, July, And you quarter, in, the to back

we blew because they in an April, the industry that if we gave for past revenue that's and Well, and $XX in June I were June is mean, in of May that And obviously we than knew that. we past question. that's you estimate yes, June, million lingo thought. came P-X, higher a beginning great blew obviously when at reason the we

my a chunk estimate fell as -- at we big line. a and FP&A of bottom of So chunk constantly person the reminds me, the gave big time that that to the

from So my been definitely, as -- And at don't high I margins in folks, that plus. look good. have talking have margins XX.X% the this point. understanding XX.X% to XX% margins July restaurant has attractive very pretty -- the as were But month. But from

be So clear that to -- the way. it's got a a But proven future. we the could best those that of than don't go is we're think. the obviously can sometimes, is sustainable, are Dan we've where on We It's XX.X% result is the just be in artist I to that and quickly want that. very think number puts not margins to any it don't stress And challenges we of again, we of that react and, given know our new and come sustained. more to But science, really -- usually going much in we've the ease the of and can very world, we the restaurants art I an business because stress good. lot cognizant that uncertainty

we do. how that's So

just CapEx the million, $XX the us is And on to break expenditure million remodels outlook? that bit on could provide the any expected of What going side you things, of down stand? on the CapEx other can forward? kind us on CapEx you a And for $XX little the maintenance remind color where the

on of would and $XX remodels it about be is The other will million $XX spent maintenance various the initiatives. million. remodels XX be CapEx balance at, The

land, which we In came new that's the the sale-leaseback where development, may store at cases we're terms build-to-suits. But or numbers looking can we either a look from. purchase some CapEx to of in do means

system-wide you upgrades point? does this front BK initiatives mentioned, where of stand on at just too, the the And tomorrow that

maybe more an we're is And restaurants the remodels remodeled. a do. got of that, extent remodels. I going that have what beyond additional per We've which handful, And we've to got to XX% to remodel indicated, have, we that we've XX we that's think year, XX XX our

flow QX? about And for the understand me, deferral then just balance bit. line thinking what's is statement The last cash reconciling the I the repaying the end sheet a And rent, remind you one piece, that of time on the little the can balance what us that and at rent rent?

million which our we that that knows major is, Well, that the with part in plus about was we, $X everyone landlord, July. and who repaid

that is done. So one

get those million, about repaid. were $X The $X $X and million, other rent million deferrals

on flow repaid capital be 'XX. we're repayment. the we income obviously quarter about about for $XX get 'XX $X and can the million But working our in basis, then should those benefit the it's statement, a defer kind we rent year full million is of other charging in And on accrued. cash FICO the got will and So the of amount;

So that December for repaid $XX XX%. XXXX then million of and in will XXXX get for December of XX%

are very deferrals those So capital. working long term, of long tail

kind the deferrals of that's anyway, in the So the of quarter. picture

from question Bartlett follow-up a Truist have We Jake from Securities.

Georgia Tennessee, other wondering on decelerated have like places legacy for was spiked. business? you deceleration, trends. you the mentioned I'm touching just large in Cambridge, for well, whether on regional spiked. as And the markets question Have instance, in a there's that trends cases the seen in as south has your it for COVID My in instance, as

you If on that, I'd could make appreciate it. any comment

got only of Georgia. We've a couple restaurants in

Louisiana North in acceleration and been of is it's have which But in and reasonably Tennessee, the The trend, now than northeast. in it in markets. trends those is was biggest Mississippi, stayed has the South in follow Carolina, off QX, the different what the irrelevant. So And quite stable.

very other of the decelerated. in they've trends virus I COVID, seems markets beginning better that is the under markets, are northeast now restaurants reasonably at the the those strong and said, northeast. southeast, And were So And stable in soft. control, is, as some to be that

that? an margins what system that question Or systems? the indication quick the model stores? dine-in. are like? margins the once the how dine-in of it, one not I'm you the Is stores of the or XX% look wondering opens on kind those with across remodel, you the what, change then at once reopened like that and might look is that of just How the something do staffing eventually have And is the just, fully

We've or got, even that the we've rooms are open. tables in be reopened, X dining Jake, there might X that

modifications point, So at the at margins in been there has all. this no

comments. time. floor no like back are at I There for the closing over further would management questions this turn to to the

quarter joining all basis. Thanks. it forward one-on-one broad really the We on us. to Bye-bye. a speaking will more you to in and look appreciate Thank for we next you

teleconference. today's concludes This

You disconnect Thank your at you for may lines your time. this participation.