Darden Restaurants (DRI) 20 Jun 242024 Q4 Earnings call transcript

Welcome to the Darden Fiscal Year 2024 Fourth Quarter Earnings Call. [Operator Instructions] I will now turn the call over to Ms. Courtney Aquilla. Thank you.

You may begin.

Daryl. you, Thank and everyone, for on participating Good thank call. today's morning, you

Darden's are CEO; today me President Rick Joining CFO. Cardenas, and Vennam, and Raj

a that the during statements As statements are Act made will risks These comments forward-looking and to include uncertainties of this XXXX. as cause Securities Private call in subject Litigation could Reform defined reminder, filings release, results with and described in are to Those projections. risks morning, Exchange and differ actual Securities this company's the materially which press Commission. and in distributed from its our expectations were the

presentation We broadcasting our this simultaneously posted are is darden.com. in at Investor a of during section call, Relations which the website

Today's included measurements, non-GAAP in measurements the discussion presentation. presentation are this include and reconciliation and of

on by before market Looking release plan conference ahead, a we to September earnings opens, the Thursday, followed fiscal quarter call. Xst XX, XXXX

any During to XXXX. months of to performance trailing is discussing is fourth fourth XXXX, the comparison when annual and quarter pre-COVID quarter fiscal to year any February reference of the performance fiscal today's a call, pre-COVID ending reference XX

all today's to Casual during Intelligence's Box Darden's call benchmark to references excluding Black Dining Dining industry Casual refer brands. Additionally, results

full same-restaurant count same-restaurant sales During industry year guest and industry during decreased X.X%. decreased count fiscal guest sales industry our our X.X%. same-restaurant decreased XXXX, decreased same-restaurant X.X% And industry fiscal quarter, fourth X.X% and

our on This with financial morning, XXXX close details and comments. year, fourth the Rick Rick and fiscal provide will then share will quarter share some financial brief final fiscal remarks recapping outlook, raj the some will full-year and results

to will it over I turn Now Rick.

Thank Courtney. you,

leadership for to of like would to Relations XX I Kevin close thank for begin, I his Kalicak Before years. Investor

finance Kevin Garden. has As Olive many for of moved to know, lead you

Thank Courtney leading Kevin, opportunity and excited morning, successor. to excited Relations. confident find everyone. good worthy Courtney transition for his I'm and equally We will you are you, into a Investor new have

became an strong disciplined of what below increasingly control. median consumers enabled focus environment, especially what have and to a to we proud consumer control year I'm for us can ability stay the our income. in continued This household weaker

we delivered total by of year, the $X.XX, year, the the that emerged net full high billion, an sales in the provided the earnings to despite $XX.X the of we the X.X% of range exceeding at diluted of For year. end XX%, grew fiscal challenging sales beginning EPS per share back increase of the adjusted half environment

of being XX new X ] [ year, and the Throughout of acquired in seen and our restaurants the House. competitive and the Steak pressure enabled defended [ opened states, on X with including increased strengthened focused reopenings, we navigate has grown We marketing basics. successfully advantages, integration ] our which recently. our we've XX Ruth's restaurants and comes completed were Chris the remained This to discounting and us way, whatever

are XX% focused control. context our the XXXX, XX% dividend we return said, within performance what our TSR target. our total can framework fiscal long-term is evaluating for delivered when I growth high of teams plus measured the as on shareholder as And of to yield, our XX.X% near of they ] [ by end controlling And which of a EPS

we ways having members. by One of do the that well-trained tenured team is

is helps our from Our teams consistency, are and above staffing this levels, and or member at team experiences. which manager great pre-COVID retention benefiting guest create

build not brands, also training further skill on our only unique engagement. enhance programs that strengthening We our of teams provide but culture their the with sets,

recently completed Master their LongHorn Series. example, For Steak seventh

champion, Steakhouse to competition Florida. this the the to of Montgomery Over team program prize. Coral, X this Jacob be and in grand engaging the $XX,XXX from champion competed right for the training members grilling culinary LongHorn crowned highly of course and thousands Congratulations months, year's in Cape receive

the with is focused remain our strong ensuring cost grown and on providing operators are teams ] guest their satisfaction. driving which labor being basics, record management, Beyond [

Several Scratch the for Seasons Garden, Yard full of year, fiscal XX guest House, all-new-time including Cheddar's reached Olive satisfaction overall Kitchen, our for and brands highs Bahama Breeze.

the Additionally, service, Technomic's overall Casual fiscal as ranked atmosphere year ended within tracking Dining fit industry well loyalty. and #X the tool, for food, LongHorn perceptions segment and as of brand

Now let me House. provide on Steak Ruth's of a Chris integration final update the

were the the for systems, point-of-sale major all During labor restaurants. quarter, both completed and we changes company-owned transition restaurants management the onto of our proprietary final which the

We franchise Destin, Florida quarter. during location also in single a acquired the

Ruth's team the team, turnover new operations. completed Thanks to our and closed the included we no integration the onboarding among year. integration collaboration work X This our the and during acquisition members, hard on Chris same with of and fiscal X,XXX between team the directors

We also resulting the in expected synergies, accretion EPS $X.XX. achieved of

the easy, on Integration proud of maintained throughout and not the restaurant the focus team and I'm member teams particularly process. the experience guest is

positioned our the I'm Overall, we for proven our regardless operating combined the pleased strategy, navigated strength with year. And of We successfully environment. well a performance our fiscal environment. business, of ensures the challenging are with

long-term we remain on our for strategy the executing term -- and XXXX, long fiscal begin focused value. drives we As managing shareholder drives growth long our by business that

also We and several success for Darden changes. through to position taken growth leadership steps further future have brands and our

developing presidents. We to more are most talent, bench have fortunate changes newest to presidents are designed time our allow of devote seasoned brand to a X our these and deep of to

Todd and as Burrowes years role record development and new performance, restaurant Steakhouse Business to of has now and X our President a facilities Chris, transitioned newest our team, International of for After responsibility has to business new Franchising Ruth's our Development. leading brand. LongHorn Todd

President Franchising; brand. who Chris, of to are Ruth's Jenkins, operations Rik Vice Braun, President of President led for Reporting Todd the and previously Brad Senior Marc and Development; of International Smith,

to our we suited perspective acclimate to work. years and operator's franchise team to with will Darden. restaurant the well a and to valuable and brings LongHorn leader Rik this development growing as resource an new Further, ago, was Chris lead acquired is XX Todd Hospitality business. He Todd RARE be for he continues Ruth's when

our served Laura to at respected for report is will LongHorn finance Laura She well X years. replacement Todd's is me. LongHorn, Williamson. leader across as having

who of also named to former continues been Garden, Falon who Yard for finance Specialty V's, Olive X of at of brand XX Restaurant of is of Capital has within President V's. as named House. Specialty John Head President led Cooper, the and Operations Eddie led We President is Specialty Grille Group, will for Restaurant Group. to serve operations our Seasons Clements, Mark Bahama the new who Restaurant now Martin, report who Group, Farrell, now President Bryan and presidents the Eddie And Breeze. directly the

proud presidents presidents as began we our of and of drive average the members hourly X at brand their to in I'm leaders our years. have tenure right excited future X team XX changes about careers our and place is the confident I'm these all also brand growth. restaurants of that

turn to I'll it Now over Raj.

Despite and our Rick, of morning, achieved. team management proud year. has and initial Fiscal were the we for I'm teams results by you, this earnings Thank labor our weaker outperformance. XXXX drove everyone. was and our easing expectations good and exceeded cost than anticipated, results Strong strong that Darden, another for sales the inflation year earnings commodities

Ruth's driven X.X% new our billion quarter, legacy we addition at XX net higher XX brands. Chris from the company-owned Steak the last total sales, of by restaurants $X House fourth restaurants looking than year, of and generated Now

by basis same-restaurant and points, by XXX exceeded Our the quarter, industry points. for same-restaurant were outpacing the guest basis sales flat the XX counts industry

activity brands industry when of decile relative maintained within impressive visits. our by count top the the at industry. quartile Casual some a Throughout quarter, increased promotional and was is share top growth Olive of you Steakhouse the LongHorn guest This Casual near Dining. of Dining was guest competitors the Garden of and the levels consider the discounting

guest industry same-restaurant continuing to pricing earnings this returned levels in outperformance the per $XXX quarter. Our of $X.XX. to increased to the count exceeded from due industry and and our our Adjusted $XX repurchases. sales shareholders diluted million million $XXX EBITDA to million same-restaurant lower adjusted We [ share dividends in relative operations performance to through of ] share $XXX X.X% our million net generated

commodities were expected beef was to Seafood approximately points the Turning quarter fourth inflation quarter Food expenses than better produce year. to compared deflation and basis mid-single-digit offset at partially P&L better inflation. XX beverage helped as on this last X%.

and XX pricing approximately more [ below than driven X% of the improvements was which basis ]. other inflation, labor impact in labor benefits, points offset better, which Restaurant by productivity was favorability

expenses management than restaurant-level expectations, our cost Restaurant strong X.X% was were XX lower and by improving to This EBITDA XX.X%. XX resulted driven with higher basis in than expenses. all better last year, basis basis preopening expense sales, points last year. consistent Marketing points and points of XX

compensation. Due largely lower, Chris mark-to-market the mark-to-market was total the expenses the the guidance. to expense, we integration driven favorable way by G&A favorable and on favorability XX Ruth's tax was were is our our basis slightly offset on expense deferred Adjusted this and previous ongoing synergies from points This of hedge to expense line.

due to financing Chris acquisition. the expense Interest expenses basis points increased to related the XX Ruth's

adjusted for quarter sales. the in million XX.X% mark-to-market points earnings tax basis continuing hedge higher, Our driven operations, XX which referenced effective generated by was $XXX rate And impact was XX.X%, adjusted earlier. we I the from of

same-restaurant growth, segments for offset at negative total sales increased by sales of X.X%, Looking by new driven X.X%. our quarter, partially restaurant the Olive Garden

pricing. industry, dynamic benchmark Olive industry While to our counts was XX were This Garden same-restaurant sales due basis the guest minimize points. to below same-restaurant the by outperformed decision

be industry-leading. segment approximately quarter, the of was X%. For Garden profit Olive Garden margin to Olive continues XX.X% pricing

total management, inflation. profit was above by quarter LongHorn's outperformed pricing LongHorn, of industry basis driven improved XX.X% X% LongHorn X.X%, Strong new points the and as including basis sales sales labor growth points. by margin XXX cost of increased growth productivity, growth. sales At drove XX was below same-restaurant margin year. same-restaurant this last restaurant Segment

And Dining improvement Eddie sales Chris quarter, addition driven our same-restaurant in despite profit base. the Grille of and Total Fine the V's, Dining increased company-owned restaurants. sales fourth by the the at segment's Fine Ruth's negative with margin at Capital cost expanded in segment

X.X% This than the Business revenue. segment sales segment. year, the better the Segment driven franchised Other negative location of brands royalty the was in managed with increased revenue. basis by Other points profit the and Chris was of same-restaurant Ruth's addition last margin XXX additional offset leverage partially sales sales from by XX.X% combined for of The

of of for by top in same-restaurant in of XXX sales As same-restaurant we is X.X%, outperforming look XXXX, traffic on at And industry basis points. outperformance the and our we last annual this points basis results fiscal growth about XXX sales had year. traffic

$X.X adjusted continuing XX% of ago. years an We operations. billion This in over X ] to EBITDA from increase is delivered compared [

to and million $X.X repurchases. in Additionally, shareholders we with share dividends billion ] $XXX in returned million [ $XXX

full-year in P&L, offset by partially we fiscal increased and cost strong basis EBITDA our pricing by our operating and closures of depreciation by margin XX favorability had that permanent restaurant-level management at to during was year. driven the teams last year. Looking that amortization resulted was X income than XXX points, This related higher and expense XXXX growth leverage. impairment This points occurred the basis expense

adjusted Ruth's Additional financing the continuing last basis drove last related than primarily year. resulted all flat higher Chris expenses, from in interest X.X%, points XX earnings expense year. adjusted to of to This operations acquisition,

XXXX dividend we ] our to cash This growth Looking the our returns long-term COVID. X.X%, X% measured at of returns of in since from fiscal XX.X%, relative performance other in targeted common framework, well disruptions plus yield. and shareholder [ growth total issuance annualized by EAT culminating our of generated of range as shares of despite XXXX X within and stock is business million EPS

XXXX, and significant adjusted growth. operating durable significant flows. Our have generates and cash delivered we A durable X% model Since annualized EBITDA generates operating strong cash flows. strong model

fiscal Our to Ruth's Chris ] the X.Xx, even acquisition. This targeted is debt with well XXXX end our [ of balance with related of X.Xx. range debt-to-EBITDA the positioned, below at to sheet Xx adjusted at is additional

Now to outlook financial XXXX. for fiscal turning our

of diluted and approximately shares labor driven year. million of sales approximately average which spending total X%, approximately tax XX% restaurants. approximately of million; And the sales We expect to $XXX rate an and new approximately billion, of X% for $XX.X outstanding billion by to XX XX to $XXX to million of of total commodities growth X%, effective X% includes inflation inflation gross XXX $XX.X of inflation X%. same-restaurant Capital annual

net results share and in per diluted earnings $X.XX of $X.XX. this All between

our dividend Finally, regular to approved dividend our Board $X.XX. to increase annual $X.XX quarterly a implying an per of X% share,

that, with back it turn to And Rick. I'll

Raj. Thanks,

team to higher of communities. delight Darden nourish of All pursuit continue us together work guests, and in our serve, we purpose, at our and everyone members to

million X we great During serving the the year, per than service million with of drinks privilege in engaging XXX had an attentive more atmosphere. food providing day, guests, and

X continue Manager hourly opportunity or Foundation, We awarded Next our And XXX team to also -- to for XXX the English manager And $X,XXX invest training members and members to Darden past promoted scholarships to the X,XXX programs each our Managing children General positions. team learn promoted in managers with we Fast through Partner nearly Scholarship program Course worth and free. into members. Fluency, that team our over like years provides program which has the of our

committed we communities remain efforts to also serve nourishing, We delighting through to fight ongoing the our [ ] hunger.

our restaurants X.X banks million local fiscal As donated Harvest to donation XXXX. part food program, of in our food meals

America We last also to successful over America with X the donation that continued total mobile bringing provide banks, trucks XX food years. Feeding our the XX food with Darden million another more partnership Foundation the trucks Feeding $X from to helped provided

approach Their restaurants what us our To thank support wrap up, their center the executing and our operating I disciplined is regardless strategy want year. team efforts in to members environment. our for succeed enables outstanding of to the in throughout our

questions. will I Now take your

[Operator question Morgan with line of Instructions] comes Stanley. from first Harbour Brian Our

Maybe the Could of a some think -- for start there's of first that? outlook brands kind How the year. different the of in comment pickup versus Olive kind end on feeding the presumably, What Garden. we very about the comparisons you you sales year you you on drivers of And just think as your kind do the see different year. the about obviously into have of of that? how

this Raj. Brian, is

start brand level sales the right, a So a from before with at let's just guidance get high into we the level. outlook,

that's information and are weakening all there you growth. the be. where we know, expecting take we a is as economists macro look the expected So at to upcoming at out the year, when And most look GDP

that's taken So into consideration.

taking started consideration weakness little bit also a right? the we're half back cycling fiscal see to this more We into year. Then what we're of through, in

year. So consideration look next at that as we're into we taking

built improve underlying estimate So when to and trends we year. we traffic expect look how this the we at guidance, throughout gradually

And so that's really how we built it.

the But -- [ X% for fiscal into get the through thinking to as exact full details trends. level, brands. underlying on blended want on growth sales the said, improvement we're same-restaurant the X% don't I ] year at the I a to the and year gradual for

out is shifts of just there's QX. call-out, then And into one Thanksgiving QX

the So QX QX print underlying opposite. might than be trends, and look better will the

QX. positive that's typically basis the about XXX QX, negative around So to impact somewhere in for points quarter, XX on for sales

but variability said, environment, our this so in And our outlook. levels we of all around higher in have current earnings confidence that more there's sales guide,

And so of are. kind where we that's

point Okay. year? keep there respect your in should comment And it maybe Is delay the more would within could we you Is just to start at some to an that? on you anything mind modest keep of with pricing thoughts that the at timing? in this there effort perhaps

how spread, we that's in out. to do it very Brian, X think about ], line to so be year quarter-to-quarter be more good But modest probably. on X% last to pricing to going expect this Yes, that we So inflation, kept we've the the as pricing over consistent X.X% more is [ with news actually range years we in pricing be right? for expect

Now, XX there But if about we've and X quarters. underpriced at XX, years, a you look movement points lot, may and gives the over a talked that basis be us between before. that we've flexibility, some last

well. I the where X-year as -- think to same only to at so last which and So overall is, is the on service grocery priced the [ [ CPI XX% then we've full X ] XX and XX], years underpriced over compared about close basis was

we a about that as done fourth to that. keeping the So X% saw you to to fourth low, Garden in quarter. in on And continue prices pricing the talked we feel going Olive closer quarter, we've do of lot we're too, work like and

come next Lauren the Our Deutsche of questions from line with Silberman Bank.

Just to your marketing. first approach on

Garden of weak Olive past comps have couple So been over the quarters.

influence increase how are share And your you understand, I does fiscal expecting traffic But loss quarter, as promos, think marketing marketing? that approach on for you to you what your and Some to 'XX? outperformed. about decision this basis, a

about of regards year, tick But a the we'll that's we'd a fiscal said In it continue do to in tenths to probably our couple not even with we're we're filters, And efforts times. on talked going Lauren. and discounting probably increasing are buy past sales, our many marketing to doing. focusing things to to which up going our do Yes, marketing, 'XX. we've the in we've that what competitors

to have telling levers Our sales best we we focus our they profitable is mean, our just do and the our remember, growth. is way they guests to, but back-to-basics great on to have want have others our to value drive sales to marketing do more restaurants. our philosophy focus operating pull come pull. on when We what if I

Great. consumer Is you Just income, to across breadth the on of income And consumer? the this high seeing just brands? mostly a are low-income environment. follow-up what the middle across related the your

mostly consumer are the It is they're some -- we're inflation, about and at are Lauren. that which Consumers becoming generally see. behavior Yes, about $XX,XXX. shifts job we below household more median what concerned about the income, is already the at And had the income seeing to started market. concerned

year. were households below And incomes -- QX, income. $XX,XXX from transactions in so below than the pronounced consumers that's with for median below And lower last more with

were And Fine in these our Dining even impacts greater brands.

bit time, we've our like their you more why the saw guests negative quarters. that's Fine at So had others. in check managing Dining aren't But comp seen little a than prior same

brands. despite will brand what that's appeal and that to tell what focused for consumers continue to value their promise you we're to on we this challenges, Operators so our economic continue deliver And means and doing.

our a have hard-earned them to restaurants to consumers a great and on others money giving back. that tell value and focusing and coming come great spending are experience We're the their

KeyBanc from Markets. Eric Gonzalez come of with the Our next Capital line questions

heard aren't that way the Can check just seen comment quarters. you why in think you the that's you you've I think your say managing case? I maybe prior guests the on

we yes, did. so Rick,

Fine see Garden you -- year, think basically, both to at And we big we mix look quarter, year at back we we what on especially negative Casual flat. if was LongHorn, So that, talked check, Dining. to this mix as and last the the earlier said fiscal look we we at -- And were Olive brand the seeing we this and in some moderation. if started said a and about quarter,

basically, So at significant which is improvement. there no a was negative mix all,

Dining, when and were in to we -- continues moderation you look Fine QX. saw at into And we some moderate then QX, that

I think range we're we basis mix couple negative in versus were or seeing of so now points XX down into a the quarters ago. XX, that the the XXX

So much the starting used as us as managing come to. the ones see we're to to check just that not are they

then And was LongHorn between quarter. maybe on guidance. Garden fairly Okay. wide just There comp gap a in the and performance Olive this

for guidance that year. have to X% You next X%

out but If FY to to do it 'XX? guidance, or you're performance not stay going converge as is? comment in can think expect gap that wide you maybe willing on by widen break in to of Or you it's you'd it terms brand whether

the to we provided. is way brands within range Eric, going are looking we are at the it most be

they range. being LongHorn at a Garden comments between providing X we over XX% X, into when not be Olive going most in are expect -- We Olive of the weigh Darden specifically. But And we X%. about the X% too. the have average, to look portfolio, get Garden they'll to that obviously, brands range I'm to and to the

at X.X% Garden And we and on if back delivered sales top Olive same-restaurant you year, last ]. for right Darden, fiscal [ look was X.X% at 'XX, in

out, how versus don't So Garden Olive but we'll to we LongHorn this specifically. plays on want see comment

Andrew come Charles next TD the with Our from Cowen. of questions line

question Garden. is Great. Rick, on Olive the

gap beyond more spend to-go the it on the go at welcome disposal how levers your on Is help industry. catering you opportunities? to Is those profitably multiple out called business? versus innovation? the menu to You sustain to more marketing. Can traffic the it business, traffic Just thoughts

and is remember, team. really industries the the Olive Darden to the No, Garden We're over said, years. pricing -- of of proud year and industry much really all. Dan taking exceed what much and over lower Raj taken their we we're yes the Andrew, team And did has they've benchmarks. proud than done.

to key that's their never-ending Italian cravable provided offered not is That's their going ] ensuring of with [ focus specifically guest on their a continue in food, equity on competitor. marketing to every refill another first focusing something They're abundant course.

is what big a part a refill do of that big we part value equation. So and of pretty their

unlimited What you we're going innovate more for if Consumers But now challenging right you more in create-your-own times $XX.XX. pasta are that looking can with to efforts to digital also we'll on an Pasta continue pull over And price Own our focus is menu. our our marketing in certainty, haven't, is marketing course. television, And at amazing see value that Create and we first $XX.XX well. to continue to Your we as at there. have

pull. want getting profitable show sales without number. remind to to been consistent that, I the just on So about years we have over But not very how do the And it was. details, what profitable the matters. buying to And sales a strong all into top Raj X EBITDA levers growth, talked sales last line that we're growth focused is years, we've with growth our over everybody,

continue we'll so focus there. And to

Curious this this for more if franchise perhaps one is towards acquisitions Then for you Ruth's more Great. acquisition follow-up the open-minded one-off? leaves was franchisee. XXXX? my Or Okay. question in

Yes.

into saying at Ruth's by restaurants -- start our integrating me to our focuses partners on Chris us. Darden. franchisees really was company on are And Let valued was the focus

franchise restaurant was purchase. one opportunistic This an

So they is making with we're to right our we've we're focus sure team with But on to that if now, implemented. us. and as gets speak to to our going acclimated the franchisees continue systems to continue going speak want

change strategy. a necessarily opportunistic It not purchase was us. in an it's for so And

come the Tarantino with of questions next line David Baird. from Our

on. year. wanted mentioned traffic I for you guidance underlying have expect Raj, that to assumed the I year to that And moves you the improve you just the to come think back as

you Is improve So could it will mostly that on improvement? there's ask business wanted that elaborate sequential comparisons I the are thinking factors something on? drive just inside to Or what on related? year as will you the basis a you just moves think if

pretty were primarily the have off, underlying we that we're well. the by pretty driven third fourth talked about -- up look mean you side, up we it on trends came I also if it's David, underlying just what held at comparables, from our positive the but actually and seeing sign. month-to-month held trends check an And was that's steady, improvement a quarter QX.

just So get we of cycle think help is the gradually through there should better we -- that us as some weakness, through the year.

Got it. And better I a than provide Do has then, that discount Not but I the approach. on advertising see Garden, opportunity offering? in like value Rick, what on new question the already you a adding, Olive an I'm is that you're highlight guess, to something necessarily or great have a emphasize would value to an there's just it more opportunity if proposition. seems bit think the wondering a advertising. you different brand you're

with price On that now, got Own Your value. doing we on that's we're and we've the that right TV what a now. right at David, believe Olive do And Create point $XX.XX has everyday Garden Yes, great Pasta exactly television. the

we to do. we to what to highlight -- is we'll And versus do so what things the that discounting that continue continue can

questions with come Jim line of Stephens. the next Our from Salera

XXXX, X% basket guide just you the around labor? inflation and on what the thinking food takes particularly give for the Can you're of us and some puts

Yes, Jim.

this So is Raj.

around be X%. So basket, assuming commodities the on food basically to we're

chicken, going to And expect other the mid-single biggest inflation. actually digits. expect pretty the and beef. in the to are is we then be We then basket be within low driver single-digit probably that categories still all much in single-digit think low food deflation I beef in

to how around so commodities getting X%. And being we're that's

like actually are a labor labor perspective, From a overall. be more expecting we X% to

where think is labor X% been ]. to and to to around you be X% inflation [ expected and be the if we've about -- total then wage what hourly So closer

overall the X%. And to probably getting we're all things. to that how going to those from be X%, that's closer -- that then expenses other two to So X.X% are are big more and being in restaurant

Okay. of maybe And that If just if to is is come the earlier better-than-expected chief overall the for inflation. maybe feel the kind provide you it end the Great. could might possible consumer a that tie that, comp given at consumers make or the consumer, also inflation of I passed to from dollar your then what for in on see of the kind little the try bit what the of one about consumer think catalyst expectations, be far goes? Just concerns anticipating? concerns we the lower to into of side, better trying lift could you're better the than that XXXX, maybe results how to consumer mentioned

that consumer they on on is about everywhere, spending. Yes, growing been think Jim. focused faster in and eats you The they're wages really price they've quite discretionary restaurants. costs, what the the paying that years, in if into And just not than cost nondiscretionary have for a few

better, bit give little gets them more nondiscretionary discretionary. in may if So a that inflation the

those side, the that things to discretionary -- considering store some Rent, -- in would grocery And on with things inflation help of then But utilities, things help. child yes, people have like food help nondiscretionary the a we'd buy. you're food lower if care, like to nondiscretionary, all should see or that at spend. --

great. That's

of come line Sara Senatore with of next Our Bank the questions America. from

one and you margins X% food Great. like -- I were question, guess had expected. clarification pricing I wanted The your [indiscernible] pricing is and but mentioned than better below inflation, all clarification we one please. just

understand to whether have there was brands, wanted mix? what the across just I dynamic any been So might like

margins. best actually of were ] the some them all presumably, mean, of I [ food

you demand unpack just And environment. little help bit. So I me then if that do about the could a have question a

Yes, Sara.

quarter, -- pricing was was yes, fourth the inflation. at our across look we when So below Darden

was around closer was X.X%, inflation to pricing our think I X%.

points. through environments. different -- the that So our there's through about goes the almost back again this was ability cycles, manage different our to right, to through think testament But of -- teams and delta XX basis I

about even see talked in come environment, growth costs -- the our -- even see better. in should how but a more be we We've better, slow controllables get we own should also

the business, manage to getting with it's to returns the to just our the we teams, they So a for the business. get well ultimately, focus on testament need how

even those controllables in the And Okay. COGS in that line? sit

yes. some, is There

Okay. the Got environment still in of versus made, I'm where it. with And I comps, taking it we think. but as issue interpreting demand, perhaps you've demand low the the then earlier to your income comments primarily, is there's a expected, the consumer it on than question mean you're share, expected. perhaps some to given And insofar softer

you anticipated to, doubled trying ask makes always the Or when about more context, Ruth's think expectation kind sense? robust? an there I'm something down expectation of acquired you and that guess, I and normalization, that of acquisition on had where in even you Dining, when was was Fine

this is time. acquisition long quarter We're a Rick. after long, about acquisition. Ruth's, quarter When we worried we the as the Sara, not the next over about of think acquired an or period

continue opportunity chance go a we Absolutely. there's would But of acquisition, bit going to below make it's the at there. Fine for a have a maybe little time any that Now, better median price we an there a consumer liked could we're discovery and income slowdown to to be Dining? into because

that our M&A, category into we when we or were for able an agree So we not. criteria, into Remember, every I and would acquisition price. make Ruth's our to met never one have of read criteria on a and certain

time the that's at it it happened So why happened.

generally, when happen. of any that's And will M&A our

not on find deal. we're long-term we'll that then we we as about we're we investments that that these the price agree get that out worried because meet coming going or criteria and discovery price, long We're into long, the for us. of when As a environment do are the brands

Our of Bernstein next come Jeffrey from line Barclays. with questions the

least portfolio, which just mentioned is I It seem value slowdowns well, was within industry more on I Olive the Great. harder the to like past looked at when defensive economic Garden conditions half. relative the your the Rick, hit you to as Olive at guess, my in as back and question, first Garden most contrary people does brand. think weakening

as go-around? is doing? had of changed step the kind doing this the if is June, any do competition of just be I'm starting How give the what into follow-up. a take much And you're a then that back, color quarter So on great. how versus get would what you sense wondering, or And in I maybe maybe internally through it we're think can has you to fiscal one sequential of you 'XX, just trends what

not mentioned to think -- we And are. Sure, month everybody the Garden trends what quarter, Raj outperformed. Olive They pretty But time, were 'XX consistent fiscal say pricing that where about taking in they more we into had quarterly -- slowdowns, Jeff. Garden, I'm talk month-to-month-to-month. fourth I same-restaurant for outperformed In that I will sales. else. over going than the at prior month were Olive

would industry fourth this if last in I'm And sorry, tell in positive We have you have only the would quarter that traffic that industry What many -- for pricing I we pricing. in traffic. would to and the the we've took the quarter, quarter even the years, continued the outperform Olive outperformed more. would we and or Garden taken in took that third been performed have X%

us. for game long a is this so And

we're not other outperform a everybody said, we're doing those or And that Even deep discounting that. thing only Didn't deep X% things. and traffic. outperformed discounting our all Garden not we that not still time up to aren't pricing. competitors at and ramped we but that as discounting sales, I in slowdowns, Olive have on in -- people the television, comp -- but pulling took -- things The are pull other couponing, everybody, used that

we say X-year we're XX points gap to in on really, but the QX I to side. that's is outperform continue on proud so we to was traffic And side, of did maybe want basis in XXX that, And in traffic the and the traffic. and points really do didn't that. fiscal we'll gap basis outperform why continue And just sales the

feel where pretty with they good So are. we

Raj, just as seems And the enter in And year, fiscal it as if risk your were I then for maybe the follow-up, seemingly Absolutely. think it's you as a guidance look EPS I'm initial the guide. how just mentioned to fourth comps like fiscal initial below quarter, 'XX, same looking setting fiscal guidance. there we scenario you my where, your fiscal just 'XX wondering, the you at mean, that falling 'XX was short 'XX, guidance on despite you about, well, beat 'XX, the up the comp

would fiscal as year. much the have have short if on you margin had fall like easing the past inflation seem do you maybe comps beat would through levers what -- the It So and 'XX? earnings side again opportunity you this don't as move we to with as maybe

So how do you if the comps think 'XX about the outlook fall for fiscal were to short?

get about is high the implies little environment right? how inflation be a the let exact continue say me very I the we If be to so level better. also that think a and talk is about to sales don't and that philosophically, details, such demand that weaker, weaker should want bit but the at Jeff, into

with start let's that. So

And was reason at earnings with to year, the That's ]. able partial. all in exceed even that's not if of a that the part it, guidance off fact, the [ we last sales of were you but look

how it other The managed through cycle. our managed through how is we the part -- of teams

support teams earlier, towards work work said I line. softer targets on just center get and that push bit more to top little there's our of are the even on And trying them, we teams and As when to have our at kind restaurant the better. hard a and we're these things very always

want get back, we to. look the to to ways. think get And ability shows you to if business, into kind need to I just different that's have there it. of of we a very about big I we specifics lot There's lot where -- I it are of talk there's but So is that to lot don't -- in this the nuances. there it's because how a a get get feel through goes complex, a that

from come line with next Evercore Our ISI. David questions the of Palmer

itself of up Texas doing the LongHorn the consumer well at group as everyday Olive you Garden Garden Like consumer consumer set versus strategy Roadhouse the Do this? Italian are as value recognizing in been scores peer at, a in service. has doing see steak? and or say, well-positioned sort satisfaction strong to are the Olive

last look the versus they we guest have won't I ratings the Garden, and doing this value year. how David. both at. mentioned and end highest kind I I close the competition. But levels increased overall they're their of on comment and Yes, satisfaction were over measures at to can they're also this of in the Olive fiscal externally, in pretty tell year, value their internally is of top you

our value were But continue brands. in their our of again, of externally our they Most all all perceptions or brands versus at last -- brands think year. I of above

are pastas the it simply something the the just easier? that's Olive is consumer Is at at-home Yes. gains share I of the you of Or perhaps value the stronger. such think why little as a wondering Garden? I'm Italian ease down guess about not awareness to traffic it trading category,

We're seeing for very [ lately. sauces growth instance, Rao's ] strong in,

cooking scratch the We're wondering strong sort with really have in trade in at picking at-home. on a seeing demand interaction seeing at-home if home. we're not index you So I'm steak do there's that's thoughts category, of down that? stronger Italian any up an

base. the where in service in at-home how traffic. when there well, at-home, with service trade everybody because full compete in putting percentile the But be we the interaction it's they're Italian. Italian. necessarily tell and not income dealing again, may we're doing then at-home this in you Olive not ] was XXth just of [ is the Well, full I as down median comparing you're to the at And consumer, Garden can

the finally, ramped because see didn't or of our the had kind up impacting stayed we that similar. competitors -- Garden actually discounting. very we then had deep And other trends And brands Olive while

interestingly, of did of those we competitors. shift to some bit from see, little QSR is a a What

so maybe part which in competitors, that that from, those is index. did of some the share of the we -- be those they're take trying might where of industry but And see And big lifted index that. to some one in a

when a the the from in So how of little category another index especially share you're index. another works, part bit there's taking -- a of nuance

Our next from the of come questions Dennis UBS. Geiger line with

anything if environment builds. timing, there to expectations to It a bit consistent thinking about wondering could cetera? speak on more. sort cost, you seems relates Just et But as of the it build seeing new development like you're

by have the long-term framework. restaurant for Yes, that will Dennis. new within our saying let I year me start next we -- projection is

it like lower it's the while also M&A. long-term within we new still restaurants than to be, And include it's framework. So our recall,

So last restaurants we bought that from Ruth's were about part year. XX of Chris

that's not framework. but is it of year, impacting Now our part this

just Construction state potentially to out to moving and still trying COVID, more improve but bit costs figure process are levels a higher starts little to We're get construction they it's quite a longer were little taking ways get a before than our the faster. bit still are normalizing to starts.

build it and don't the restaurants to higher we good we're a to years out about of for some We'd for we things are. after, can working can put with feel number other are there going do where pretty And kind our we and there but permitting hit, like good we we municipalities about we and maybe year. not think on see next that just pipeline that that but pretty to help things, feel

new our framework. high again, of years was you unit X were where the It X%, in end which is our X.X%, And last for Raj at showed it the we growth. almost was

think necessarily think we we don't So year-to-year, term. long

more. And one

factors sustainable? on X seeing comment there's I you curious little Is we're for that like over year. know of your promo, is given But a environment Can what cetera, your just go quarters could into next for million on expectation or perspective, what et the the more any sort environment looks the industry increase? X promotional would the this. if your discounting, love so, opinion. Just thoughts on what what it in industry

to equities we focus long this our that everyday doing try in. my than -- I to Dennis, that We low we'll continue is more Others is and game. don't think that, like on people what perspective right? to think deep we're sustainable can and to play core better, value Yes, think discounting do we drive continue

on wrapping And over you that. keep time, to have

do to just rather a even more it that. television. the same more do wrap And have to the great next we'd you discount have and you we do service, think deep If year, more stays and more do great food, let's way, you

is do is And the more just other so we again, people sustainable or think it sustainable. our I way business, what think can't not. comment We on

Our Saleh of next from BTIG. come line with questions Peter the

meaningful you appetizers? And to is bit little what's from just Is expensive couple more detail this way in driving income wanted think cohort? improvement the entree, can on consumers I by you more up the mix improvement dissect improving, this alcohol ask what it trading there lower glean a flat there? seeing you've more us you mix, which seen past quarters. on to was Can income, to a Raj, from mentioned give pretty of this? income, the any is you anything entrees higher -- I Are

to specifically and LongHorn. that start, was Garden at Peter. Olive just Yes,

and both brands. And at -- for different it's so we when look

at to had the actually look had well. a crusting, some was mix add-on So when a that. they that get of really people new by There increased a They wanted great -- add-ons. also -- entree in add-ons, you was driven LongHorn, that did parmesan more was lamb

So that there helpful like things were the were with mix.

is What fairly we kind stabilized. of -- alcohol

So it's not necessarily a anymore. headwind

people getting seeing not where -- you when trade And Olive at within whether look are or it's not so as we're helping. add-ons. entree same -- down Garden, much But that's trade probably the not the the thing down

So general, in just more stabilization.

managing that's in is not check guest coming as much. today the the -- is this maybe so And

that's from fiscal some guests earlier maybe different in were of coming the the year. that in so And

next Gordon come Jeff Our Haskett. from questions line the of Farmer with

Just a couple of quick follow-ups.

and you little sales same-store color the FY pricing. FY 'XX X.X% to us bit both menu the X% guidance, relates of 'XX give as to to traffic it can pointed With you X% But mix for X% guidance? to a assumptions

it's assume range X.X% going to think our to in probably that fair to of I check that Yes, X%. is be

So the into you traffic. can implied back

expect the be do fairly So we to flat. mix

G&A then I you but it, did that provide in guidance? 'XX, missed dollars And might have FY Okay.

not it. did miss You

second just to quarter first X higher bit the spread be that's the that about with the 'XX, closer a to in fourth should for from fiscal G&A quarter, $XXX fairly million. this It's first million more closer should quarters. be $XX half. million evenly think be have The we for We than year, -- it haven't I little typical to those be to it. going talked we to And $XXX

Citi. questions next Jon Tower come Our with line of from the

taking I them. you Great. appreciate

able the quarter, Going very op to well. you the the it with put expense equation, line and that comp even impressive, was cost up pretty in to other side manage how fourth of the the were labor you

that play those management to of the Or of inflation out fiscal better well across just curious kind said, how other able in OpEx you could that the expect that into if 'XX. labor fiscal in offsetting of I'm lot think to as as into some lines And you 'XX do you you're you're carry a dig seeing? put can forward

Jon, -- drivers so part a That by we turnover. if at was productivity. you of improved look year, talked about the driven that lower this was also

few may be And we'll of a still quarters a so bit there little where that get benefit.

look on next that pricing be, closer bit expect and said, little we being as going to that get leverage line. inflation is better would some year, a But because I to you to then likely I more, would be -- X% to should commodities as we COGS expect

at That's we the to each platform. OpEx, power spend -- at having is the other do right, the And of we expect where other. that's the one brands learn better. do the time to being continue big a of lot cost things. to get how look of that's looking continue power Nonguest-facing multiple to this from able of and We

We're half about piece last going next there some about. synergies is, acquisition this that rest we continuing And is got talked the get to the year. from We Ruth's year.

different we all that margin drivers of growth. those how get So are

a side. has I And Got about on been today it. the talked lot know marketing

just curious, the guess, more, one topic. on I'm So I

way traditional to I television that consumer, as communicate you're know the means primary to message. Garden's Olive of you're terms using the a speaking In

information curious advertising going media, But great. even be social you're more if platforms, those you into where Or in how parts just might day would brand's perception you're media? after be on linear you traditional I'm and through you're even on could of advertising you Maybe doing the terms -- platforms. what in changing just different there dig are where

Jon. Yes,

this the television. And things does and we've television. is like -- we've drive other we've of into work. marketing, to several We've us digital else kind lot building of connected in been see been For Garden done and internal a brands they Olive our things been allows testing, them Everybody testing media capabilities, do traffic. move years, because other learn. we've We digital. spend to test and our only testing help And on to been it's one how

we expect And grow so that we're we year-over-year we tests to the efficient do. because our significantly more don't with media think

we what to knew all to things. know that, put we do the And know right there, so we as messages those what we and out continue days, times

about think So communication we're it's unless thinks right not thing certain going a to day part, ramping the the necessarily up a do. to of brand

learned on might And have talk certain we day years, so and internal here what not. over they they team a and might great or But brands focus -- our some that. we at do, we part that's about we've the are using digital to that an we'll see continue

Our from next come the questions line O'Cull with of Chris Stifel.

several I like peak demand high if in any Rick, periods was think still Olive nights. sales-building wondering Saturday Garden? you I'm ] are assuming opportunities peak But periods and during Friday there at mentioned opportunities improve traditional during are restaurants to earlier. way the [ a you throughput

they quicker guest do little in waiting think but do to the feel Yes, to Garden, peak sure more make I in can improve that our throughput feel all what for a brands can they're rush, just our We Chris, of bit things. Olive don't not like a periods. we but doesn't lot at get

not So little get we Garden. -- that And But getting run, in maybe traffic at if that day in walking just some at people for on that just Olive us we away. the better least any peak there's think a quicker, do were better, some not periods. and can should long do we opportunities if bit day, the

going margin pressure? And points us while quarter, saw -- contracted, do 'XX? Garden other help Garden the you that segments I think, you Raj, those into expansion. this pressure And Olive segments -- Can the this factors understand other then, Olive XX year-over-year on drove fiscal putting considerable some other basis see Okay. -- segment or what

get of what kind normalizing for year, had profit a to margin I Last too I aspirational high to -- those segment brands been, is leading. to think to able right? be levels. have mean, margin. industry be should of so industry, lot -- that's a in That I just little I just would think actually No, XX.X% they mean this really high. it's be we Chris,

And was had frankly, much, as price decision our segment talked it it goes We back a And That right -- year. about the profit the last number. to to didn't too XX.X% think right? high. we was not little

And so it's really back that. giving little of a bit

look we expect a that But to that -- It's a we some normalized. going that be -- forward. be to we more just to there move of needed like -- don't don't things were be drag expect as forward,

Our next with questions Danilo Bernstein. Gargiulo come of line from the

XXXX? how today traffic the management say, focus this on of Raj, compares marginal with control, given marginal flow-through help the in cost your and can environment, flow-through profitable understand more us in, cost you the dollar dollar back and it

dollar non from flow-through looking more It the that is different. also costs similar. It's just there that think marginal things that the not is are I fairly are we're variable other Danilo, at. actually

before XX% flow-through we if getting any So you that. I the to -- somewhere don't think XXXX. it. it's a portfolio, XX% And around level, the different how were that's to is high in look at across we're But not right think from to probably where from that's about

of rationale you specifically, from Rick, you comment their kind in what you perspective, of what executive a And particular, role kind expecting in And Officer, timing And share the of team you're behind out of created Development long-term changes? the Business on roles. just and And maybe can if recent your that? can expecting from these Okay. are ]. newly [ post-promotion Chief the

for prepared said set these the growth leaders. in changes and future Danilo, remarks, help Yes, our as us up I developing

development, and leading if Chris, right? franchising roles So and synergies those have Ruth's Todd all John elevating and little really a about and for think Todd Todd, international good you their bit,

actually Chris But there. in that with it's that's all development franchising as has for new Ruth's franchise, brands. international synergy the good percent pretty a restaurants, restaurants of So

I we -- Hospitality came to from said, with Todd, as us came when Plus, bought them. RARE

knows it's people integration And like after to the assimilate help our how President, help new So Rik, a he become systems great and he'll President. more. what who's

think to do. I about as a development, new perspective having is turnovers then restaurant finally, operator's do pretty we to mentioned, And bit planful the I We moves get how aren't open, -- so good brands in an is to how get better, make in sure think, little better. more there can we telling are the those we restaurant a delays, going to when so think the and thing

So that's really Todd comes where into play.

side, you if X brands that the John's on with X, then think Group Specialty about and lot. Restaurant all John was And leading a

a of former got them manager actually even one person, a was operations and And better and brand John, -- up so them John do a of bring all with help presidents? we bring us, the is years new proven A here future how become many, ago. have knowledge, great but couple finance are underneath him he and while help President a restaurant all leaders he's who them can good many

more a become think manager But about operations. help John and can general Marc better

Grille for member, Falon Capital going years. You've Grille Capital for got team and Eddie she V's. V's. then training now Capital as Grille, leading she worked Falon Farrell, And led Eddie Actually, and who's at Grille a started at be to Capital many

-- while for in a led now operation. then V's Eddie quite And she she

support working John, her develop in leverage do she the to Grille continue who V's Capital see synergies help for to bring center how but So brands future. those Eddie for and can can while the some for we better,

LongHorn then works. at a And bar big operations, system thinking spent House them, system ago. leading Garden can his he and brands XX do how operating House. to when history, you've about Yard to big big at model He Olive who's a a spent got how at restaurants, understand he want that's think think Olive and a And to he And continue you Garden, and Bryan years simple with at started Yard help passing grow more we and time I system. about many years Bryan, LongHorn Clements.

talk at really at to a really Laura, to knows X the move with for to great LongHorn. spent all it's is Laura she's a her. years And mention. around didn't think LongHorn LongHorn. able we And and a got She'll be So She Todd. at has great rallied team Darden. And I great continue relationship of she here leader Todd, them.

retirement behind while that other ready people is our are So people reasoning get to basically eligible.

anybody but gives this am leaving while programs. saying chance still develop And so is that around. our not And know they're anytime soon, we you want retirement them help to make to that progress. a sure them I what here people they're to

next Our the questions Barish come from of Jefferies. with Andy line

ones. quick Two

of Olive fiscal hearing remembering where mix year some impact could And then, market, you some you any And for Just commentary Any that you're how of to-go if the been softer thoughts kind Garden Florida over-index. on give the there? the guys you the same-store 'XX there fully? any not seeing on trends there, maybe versus is components, guys 'XX? -- sales just calculate us

themselves. All right. Andy, let's trends the start with

and weaker. and a We but quarter, mentioned actually the prior did just but top at not in I it have Florida, was. line if look were contribute being Texas California the that where too; bit -- to that And might generally little quarter, last Florida, California. and Texas So we saw the

so a why. have And we -- strong I explanation don't that's that for know

the One ones of a the But we're maybe seeing a a little little ones just strength little the out opened COVID. these out softness of where faster opened might of some bit coming thoughts of on maybe was bit of hypothesis. later and of markets that be coming that's a COVID, that bit

the seeing England that's Florida. facts as California, some But much not things and in Texas other the and New -- strength are, and market in you're

-- LongHorn fairly similar last huge a at XX%, Garden at is for is And XX%. mix basically Think to at fairly year, so to-go there. I -- our we look to-go change. our on a not or we year-over-year, which stabilized bit much that's quarter, think Olive was little at the the As an saw but point year, improvement mix, at LongHorn like not of X just

some -- I one, -- missed? was about question another was what -- there think was that I another mix can't I the Andy, And there

No. Yes.

had components was to-go any of sound of that trend if doesn't or the faint but impacting same-store declined like Just if sales, the it that.

No, not, it's yes.

the Our Raymond with Vaccaro come from next questions James. line of Brian

we're know off. I running

quarter? for taken the then, hear correctly, early you traffic ones Raj, fiscal provide and quick two And does see X% and as quarter? just Can me. to Garden X.X% price recently? check up range I So Olive that the price for that So blended suggest could the that in fourth as for and LongHorn did And first 'XX seems stable? you've

in me the Brian, the Yes, blended -- start with first. the question the later let X.X% blended to Yes, X%. is

June, in some taken there's so -- typically, We pricing we some are some yes, pricing. take have we --

of start some So quarter. you should that see to in the

quarter, at ], think growth For percent, LongHorn was Olive check more I X.X% think, in total ]. in Garden I LongHorn quarter [ the was fourth probably like Darden X.X% growth, traffic. [ level, X-ish has the The positive and a X.X% was the traffic our was

growth so X.X% total [ the X% the SRS and -- check [ ]. on So was at ], is

line questions with Securities. Bartlett Jake the next from Truist come of Our

dig that at little bit [ a want Pricing in and last decelerated Garden. and pricing on in ] more, quarter. question the to answer that's Olive fourth X% to I

stable brand the across You and talked being throughout the comps in 'XX pretty about year. pricing similar

pricing similar, throughout Does price going Or should that kind year? Olive Garden? pretty you're at cautious Olive more a see step-up at in of menu we to that the big much imply whole a Garden expect

I'm sorry, on mute. was I

fiscal were Garden's year, mid-Xs. year, actually at close to pricing they If look Olive you for the

X, so XX, the not that's or consistent, XX And so Blended XX pretty points all Darden where was way Darden. below basis they're to was. about

of they're them the XX -- Darden range think up. we year, XX, be to would about next we to expect As basis might in maybe where not points going end

on -- be think talked probably to is is Garden there to this gap. of timing We big right? don't we're X.X% a Olive we're of But about talking not I So about But quarter-to-quarter. the still, X%, we as to year, closer X.X%. huge expect -- some the pricing actions, always if

this environment. that traffic, bit think whether I in environment, macro risk pricing started. wondering taking to from a Got term, creates Garden of in this that the be even up you it. think But that we would little where imply I'm in near you'd Olive

maybe presence we you the I you answer just and there, had FAST lot then think have commentary If I but the Recovery of in about also can that, Act decent follow-up haven't guys gotten California, a impact. a a and on

seismic on It also dining. in California, labor, but in service seems impact into shift like impacts demand from some maybe casual limited pretty

you've there few as FAST the is Recovery implemented? So any being the what seen over comment months on last Act

this Jake, our Act the FAST is employment start proposition on I'm Rick. great is with going California. to in that saying

about our got members California So hour. On represents over only one our there. well an average, great $XX we've And X% earn restaurants. of team a

an it's over-index for us. like not it's So

We real in many restaurants wages a have and Act since that about. of came fast the -- But FAST haven't closures time. seen unfortunately, food we impact in seen

But so And not as think California as weather but to haven't strong some I lot some quarter in in was for as said, change we But still performance that did our anything more was the whole of again, California else. there the you seen said. a we as Raj see wages. softness company, related than our

Our some act. to unfortunately, California. the restaurants, because close seen employment is great in have of we But fast food proposition have

you this environment? can at price now Gap] Olive [Audio Any in Garden

to go So action, or take bit of QX. pricing of we a the maybe little Every any not middle have you until actions. pricing pretty 'XX, year right? Jake, fiscal late of is I'll And some in when actions, year, this did timing of there's back pricing this into QX, action

a that's on pricing So there. just top. lot not of already It's

adjustments. is make Some things ], [ the of and we markets change But with environment crazy. also minimum in that some nothing years restaurants as moving different wage, right, some to

lot If mentioned at a Olive we to taken pricing response a question, less earlier look you -- different have in I at Garden.

you So mean range the years, CAGR X% more is to in we're probably look their where the plus. not X is they X.X% closer the at over about cumulatively, worried industry if when are. I

great -- to keep we low better seen a value can, at Garden, try prices as there's and and proposition that. you've like feel as we we So Olive

Our from next Gregory Francfort of the questions Guggenheim come Securities. line with

in to term. long makes it think unit earlier guys was look is it -- on the were at you sense question asked the and growth My call, suggesting I just

faster to I time. or a have in competitors lower Gardens with is stores think one XX AUVs. so X,XXX, Olive long-term up which lot you're do XXX You at on of a seen up a of that lot opening Garden the of XX long basis? a have are growth could think stores we've many year, paces Olive How you a

up sort the Garden? curious, you of for long-term with target Olive Just how come

with me come saying time we it. let Greg, Olive target every past a up for start Garden, by blow we

in, have So years. we is Olive haven't open XX What can last more in to Convenience really that and they we the over to Gardens prior that, markets that already Olive talked little closer of where we a weren't we for X is a target lot are a much. found we'd where rather live. about years or as important doing be Garden consumers, Gardens Olive to for that

and the we don't you do questions? Gardens we're near Olive there's the of future, opportunities did Olive other top for we Greg, yet. think so have the believe open Garden limit foreseeable to any And

was that I no, appreciate it. the No, perspective.

Our BMO of come Strelzik Capital next Andrew Markets. from line with the questions

a ones had the consumer. of been about There's discussion me. I low-income quick lot for just two

you with of quarter, you higher-end growth said consumer last think all your segments. at I that the saw

update is get still that hoping that's there I you're So how realizing. was we could on an trending, if what

about the and balance that my below leverage mentioned then And for is bit being question target. way It's the you a second been now. sheet,

about might going on leverage how narrow curious, the thinking forward? you're just about thinking that sheet what you're gap or how I'm So balance

Andrew, let's incomes. the start with question the around

from brand imagine, a to seeing pretty And you across for grew you varies and bit all much We had income can brand think segments. the for better, when being that are example, as traffic actually they about it LongHorn, little brand. higher growth income a

cohorts But of the actually where at lower growth end. groups the or from at stable the north at perspective, median other the to is XXX are median income. Dining that's then And a are has household. -- segments go Fine see mostly say just to pullback the you're I growing. And seeing up other household seeing or It growth. income either then middle below some we're higher -- the wouldn't

use of to way position get with we to said, work sheet, And balance assets our our the time. on we figure out flexibility we We ourselves. always like to kind over productive Board really the then have. And we've as always balance sheet best to want the what's

still same. And the philosophy -- the so that's remains

Thank you.

session. over Courtney We our have now closing like to of the question-and-answer floor turn reached the end Aquilla back I for to would remarks.

that That plan in remind concludes first opens, you results to want today's the September call. market we our to release call. you Thursday, for with conference to participating Thank follow. the call quarter on before I XX

conclude does We appreciate This you. Thank today's teleconference. participation. your

the time. your your this rest of You Enjoy disconnect may at day. lines