BJRI - Earnings call transcript Q3 2017

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the BJ's Restaurants, Incorporated Third Quarter 2017 Earnings Release Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Greg Trojan, President and Chief Executive Officer. Please go ahead.

Greg Trojan

Thank you, operator. welcome Restaurants and quarter XXXX everyone, call. investor afternoon, to fiscal BJ's third Good BJ's Officer. Chief Trojan, Greg I'm Executive And joining me Levin, our on the call Financial today Officer. Chief is Greg

Mayer, Chief We XXXX, the for which of X, results the we October Officer; Lynds, for have today, After Marketing XXXX. our ended closed our also and on Tuesday, Greg Q&A. Kevin fiscal released our market hand the Chief Officer quarter Development financial third

website our You at can our the relate view www.bjsrestaurants.com. of earnings text on full

today and After Chief with of Greg and agenda our Rana will our some Officer, that, forward-looking Our on start Levin, will Schirmer, our regarding I update quarter Director initiatives, with providing Financial fiscal Reporting, it the our we'll standard of remainder questions. provide up current business to then a open XXXX. will statements. then respect SEC provide commentary an cautionary recap the and of disclosure to

please Rana, So go ahead.

Rana Schirmer

Thanks, Greg.

conference contain Reform comments Act call Litigation Our today of Securities within the forward-looking the of Private will on XXXX. the meaning statements

on factors involved other risks, forward-looking different the that are statements to any expressed of performance achievements reliance materially known guarantees unknown performance future cause that or performance results, may and achievements statements. undue or uncertainties future and statements. company not be actual and by implied of forward-looking such from placed statements or cautioned the Forward-looking results, that be Investors are not should

company's of referred full to securities filings by forward-looking update as We or revise required with result statements Our statements the no and forward-looking associated any Commission. statements speak the publicly Securities other future new statements today's information, a laws. so discussion Investors uncertainties to make are XX, as Exchange only events and forward-looking or in whether any of to undertake with or October of obligation to date, the XXXX. contained otherwise, forward-looking unless the risks do

Greg Trojan

Thank you, Rana.

our today, were our the press hurricanes impacted indicated by devastating we results release two significantly Florida. quarter for As in and the Texas in

aware, third-largest states days are lost and hours, each you due following, lives able as disproportionately the the additional as of normal these usual of XXX guests and to leading impacted. these also many and our most such, our second of but to constitute on closures, greatly total cases lost and the days operating up and were in open two restaurant storms, disrupted. we a As for of sales to days our members sales remain were team many not We were markets

fortunately members. storms to Although from these major among our did life the impact large, any BJ's was injuries operations team loss we not or sustain of

open to their and communities sustained Our water of recover all damage, supporting and incredible help possible. first-responders goes full currently most heartfelt each to instances our XX pulled expeditiously numerous thanks restaurants Florida who as local our as and all our communities families, for and our together team teams our and at and wind members restaurants impaired none are Texas My were XX capacity. out of and but of seriously to

consumer along battle traffic capacity of you the disasters demand natural and persisted industry in continue in which and As shift we behavior. know, growth these shopping by imbalance being is and to as our came driven has the the year throughout industry, market ongoing challenged with

taking certainly industry line which our hold impacting we in the peak attendance, the summer the by positively were difficult initiatives most not the movie was evidence months during industry, and headwinds the For July year, season. continuing down though, building the nearly XX% momentum. top helped seeing sales back-to-back solid that are Despite of and are August are

the margin the And during release even X% comparable sales our respectively. on growth calendar press positive Many the and accelerating, September flat X% days were stronger, supporting grew is off-premise in adjusted our wider our notes, And for these. restaurant approximately roughly these by even our momentum the quarter our sales sales traffic, Black XXX in using XX basis of recent basis, initiatives of month. discussed as both and XX% both hurricanes our traffic. measured growth sales by and with industry and the outpaced October calls XXX Box composites widest incremental by are the for with Notably and Off-premise as quarter guest respectively. sales one traffic XXX points, comparable and our traffic. NAFTrack, margin outperformed the outperformed positive are of sales quarter, Clearly driving traffic is industry an both same the and For the the by trends. of

the simplifying online take-out reengineering the is was app, front-of-house full of on network process and was June, devices ongoing, The Our expand of work along partners, but our completed our ordering process the implementation and both our of with QX. ordering our delivery and part growth. driving in particularly training early offerings to our focus in handheld this third-party

and our guest food in drive continue speed and business. times feedback Our the significantly and drink improved to pace positive have delivery aspect of

through also Brewhouse our and build social value positive momentum word for are Daily the as continuing early affordability grow and dinner business, offerings to in media. of Our and Specials mid-week awareness mouth

menu as roast well. continues healthy to growth slow check drive Our

items our Our Prime Friday one Rib popular most through Sunday. when remains offered it's of Dinner

our are rates incident back two up over item. baby XX% and they Our number entree are now

rates are of slow-roasted all platform. protein as pulled XX% quality our part incident up well, sandwich pork differentiated highly Our

items platform sandwiches, top-of-mind as a been, countered as well during that our on mentioned summer Daily the We our with new with our offerings. offerings, on As chicken Brewhouse tradition Brewhouse centered addition Burger markets. under new I successful and as our our select our Specials, items, XX guest. lunch and with enhanced value-oriented our pizza, $X last successful marketing focus very hurt guests, call beer, items on Pizookie $XX the these Happy Happy offer our awareness slow-roast Hour that our of have value likely our of a for Hour including along Much in media the of

part, Our into we Pizookie along of October strategy with Specials offering with knew our We our Tuesday core offered We Month, from part our this Brewhouse at a striking attractive point our $X extended as messaging chord around these that dessert an iconic is value as Pizookies offerings with making $X. that difference. was categories improved increase of incredible greater traffic positive the our entire price results Awareness greater of guests, media and to even sales the drive social it we than Pizookie we've a earned decided it of XX% in to in seen impressive the as to for and trial product. power by We've guest guest of and extending incidence Pizookie significant the month. seen believe part be due our new well,

great remainder So along service on driven of handheld we're ordering operating devices fundamentals being the focused for more the of by scheduling. with exact and our the efficient year, labor

value Happy We new new expanded and items the to capitalize plan and time, party have check large Brewhouse made will XX our everyday roast and our platform in now through continue delivery momentum opportunity ordering growth, our as on the with Specials, to network. our we investments same and to under At additionally our off-premise $XX offer Hour, we on digital slow utilize our leverage the we'll to continue drive traffic.

X about next plans conversation from ways we're next I our the around new our working X want over to In of a question still the perspectives quarters. case the of provide to year, of growth. revolves business few formative for specific much are many we thinking Although how our the unit

As opened XX recall, you will we restaurants XXXX. in

to in XX focus dial decided our knowledge drive clear also I've was initiatives expect even and expansion restaurants, to became back new our management member to restaurant we new slower more tenure sales challenging, us has talked operationally becoming the about. the building XXXX adding of The more that growth, with and pace we finish allowed It more team familiarity openings. environment it on many rate efforts. of our helped As of to just local

For many unit reasons new X X in likely of in dial our we these the of to XXXX, range. plan openings pace back to same

hurricanes incredibly and this labor along the dynamics the tight the Already In the operational and this estate some availability recent quite than construction of issue an historically been rebuilding fall's in makes trade time. market, time. prudent made at efforts additional the more has to real environment with accelerated advantages, activity this pressures by construction and the has high cost brought of choice about

in has hiring In markets a full made condition employment many new team members addition, challenge. the near qualified

cumulative Given restaurants right lower the time. The choice support these not put escalating an expenses, in of of all us. also require contribute but up some labor the to training immature the same year-end this they our pre-opening factors, restaurants will into expanding margin help of uptick perspective, restaurants margin growth we been degradation executing of returns will and that shareholders. resources margin driving do as believe also our so And potential, of that newer at ongoing their Slowing effect the only half will result pace at system year year. as restaurants XXX pressures that the opened of number battle in immature to At a us second our start and while year, we our decline deploying had time our rates of commodity this cost will next the than each on of in had critical slowing XX our we of less human this X number costs. capital for are is facing at to only which more full in our reduce the efforts we'll ramp X. to frame To soon-to-be sales growth

reorganize savings committed infrastructure. continuation additional our continue contracted our We the center of us remain cost areas sourcing resources, Our efficiencies. restaurant ever and drive diligence chain, our to as supply prompted plan decision leveraging services, well our more G&A as to to new as of and a as companywide G&A to restaurant conservative drive development in enabling savings support

we cited for our Our significant the us cash by than front our price strongly circumstances restaurants. opportunity competitively to free achieving the above-average and given and remain margin committed reiterate maintain more flow to concept diligence Having and and the the brand advantages on growth BJ's over growth enough our to the will slowing cannot XXX rates. the concept double and mid I environment, to of this near-term that enable long-term

the attractiveness markets pick new organic drive time Youngstown, we growth such in our in at many And of and our and intend Fort confidence our of to reinforces trade in to successes the Our shareholders. ability Indiana for our years Wayne, and the pace brand, right for year when our come. concept expansion Ohio areas this is

dividend, core of key to at this dividend factor of resume in existing in a time. more which using virtue restaurants balance focused was a approximately of by shareholder initiation stock and stock cash restaurant appropriate $XX and aggressive expansion confidence yield remain our our Our of when value delivers sheet a drive on We price. on flow our a flexibility now based our buybacks our X.X% to

free annual debt reduction measured to invest liquidity our BJ's forward program program continue strong further as quarterly other cash capital with and the long-term expansion restaurant dividend, with value. to pay shareholder to cash and Our productivity flow initiatives allocate well our share sales as move provides repurchase and in enhance new

team on are recipe seasoned fewer results, more the buildings one these at overcome Our to solid for that times. sales showing challenging as focus initiatives executing distractions, shift operational right a with a as foundation a BJ's of time encouraging well is and

inspiring to service make and our for great complex dedicated our we're members to deliver continue for. team will ways identify concept to known food less We

to committed in to greater innovation to deeply their for control today's younger also experience. are in variety over We those influencers and looking convenience, marketplace, ongoing appeal order

open value. family-oriented Our continue well as our an And And more can our getting need demographic, better a first-hand staff bring to guests and research we and headwinds experience, the this new fragmented new how guests large positioned in value higher as millennial on more income. their better in In of most knowledge combat closing, over-indexing today's to important advantage exceptional put, indicates ongoing and team our serve have we our this an center. important to we and ideas concept the and get continue amazing is who evolution have turn honestly, better to generate our continue as realities toward and for skew to to more who us has experience now even in concept only market that that's an on better. Based to be support amazing advantage shareholders. on this restaurants share take competitive our they us we industry. at members to Simply

the the to Now the of rest and some I'll recap to third quarter a over commentary of financial Greg on turn 'XX. call Levin give

Greg Levin

All right. income per Thanks, $X.XX, and diluted net net third million, million X.X% share were respectively. Greg. $XXX year-over-year Revenues and for quarter increased $X.X income approximately the while XXXX to

comparable X%, for and traffic Our declined X.X% restaurant the and sales respectively. quarter

restaurants XX restaurants Harvey closure revenue and in estimate were quarter in Irma. impacted equates and days XXX and Greg an revenues, the impacted XX impact XX As hurricanes basis respectively. about the were estimate restaurant-level with in negative resulted Trojan and by of X.X% traffic operating earnings sales income restaurant sales from million for our our by XX severely quarter. Texas additional the comp basis and XX the which mentioned, from quarter, $X.XX XXX of revenue lost the and hurricanes, for in by margins approximately comparable $X million The our this and been to Florida, margins impacted. days sales differently, Hurricanes to sales $X.X our or lost traffic closed points. points that and and which share during per X.X%, in would the Said excluding the days million, impacted resulted of limited $X.X have hurricanes We We

we was during from the hurricane costs costs insurance members hurricanes. net damage, important cost as primarily cleanup dislocation. quarter $XXX,XXX to it and expected noted pay and team the spoilage the release, in as all property determined of to today's we closure relate These labor in press incurred food our incurred direct and throughout Additionally we direct approximately recoveries of

but expected back related and these XXXX other incurred restaurant per impacted, share. lost from our as schedule. changes been income per impacted related share were month, sales to have restaurant items or well margins $X.X also been in for the quarter costs earnings leverage the the our amounted $XXX,XXX new on the million, which some training the would by total, also excluding have In earnings of add restaurant current effect or when sales million we comp the in investments severance in these our based estimate both August $X.XX. would sales, we building $X.X during opening was quarter the the We $X.XX our our of approximately closed most were approximately also our comparable costs If initiatives. period costs that to restaurants implementation our approximately diluted additional negative approximately organizational and to challenging sales as the one-time for termination and

an However, sales top in But comparable uptick as and restaurant X% our release, September we line with the entered first sales September, sales we from restaurant Irma, weeks I and remained comparable than saw the less in down These sales closed or finished flattish for X% month. here impacted days for line excluding positive reported top the trends shortly. more Hurricane in as September's about trends the traffic. would we have review with finished at X October, will positive sales detail QX of have

last costs, increase ago. slow-roasted Brewhouse year's was to primarily related a higher from Looking compared to to XX sales commodity about points margins, menu quarter. which at and new the third mix higher Daily up cost due our items, discounting and was was of basis Specials, XX.X%, year The

mentioned call, operating on our new offset of costs. items but more we gross and higher last slow-roasting profit percentages, generally As have and cost dollars generate sales labor to occupancy the

commodity which basket Labor resulting rose cost the the pressure of from our an in period. increase from third increase last room For kitchen experienced and labor, and are of continued X% XXX the in labor The hourly due X% in hourly both sales. the The produce, for quarter-over-quarter, sales seafood management quarter. initiatives. in quarter, a year-ago to building basis investment year's and we higher was points hourly up was higher of our as quarter around dining and percentage wages due continued XX.X% higher the increase about labor in to in

Specifically, in basis our labor to point a we was sales negative and of on business operating XX sales sales. which to decline labor labor. leverage about led a grow increase quarter-over-quarter. to more rise our management we continued as invested This The in to due as management costs the in percentage take-out resulted primarily off-premise training take-out

last leverage the Our operating diminished sales occupancy in results. increase to million this was of to from comparable points quarter third related restaurant X.X% sales. approximately operating XX.X% year's to marketing XX X.X to occupancy operating the of Included basis and cost cost QX due spend, equates which is about

quarter week, occupancy to last marketing, XX General with million Excluding decreased compared cost year's in by which occupancy quarter our was operating to points per restaurant administrative approximately operating operating X.X% same basis the of expenses XX,XXX third cost. last and of consistent the sales averaged year. XX

G&A came primarily incentive was this due the at to quarter third than The center. and anticipated compensation support lower in lower restaurant

than up tax X.X million the for result a with quarter, ended we As anticipated of lower benefit. a results the

first Our million now year expect in be investments in the XXXX cover and This fiscal well capital XX sales XX this building months expenditures to initiative. construction our million the of expenditure new nine of through CapEx XX CapEx were approximately as range. gross will and our the the maintenance restaurants, for capital as we

In and committed shareholders. afford terms returns us allocation, capital total Restaurants, new of the sheet BJ's shareholder capital we to our balanced a financial to while returning as simultaneously cash strength approach open to flexibility flows balance to remain

openings complements new capital in our $X.XX while us dividend our pivot of new we or annually, to $X.XX has this the want pace repurchase As share construction they reduce of which program. Greg this as we cash basis costs ongoing on flow enabled restaurants quarterly initiating cash In returns achieving near-term to solid at expect that of we and our Trojan the time meantime, mentioned, are in the to the that we will a with high capable currently prudent we delivering. be seeing ensure on increase further are environment, the are

shares During share quarter, allocated the million. the in X.X XX%. of outstanding we our approximately purchase BJ's program our And stock. doing by our shares of toward we share approximately repurchase stock XXXX, XXX XX.X initial have million third and approximately Since authorization reduced of of retired million count of so, approximately repurchased the XXX,XXX for common April in we

cash, we ended million approximately million the program. our million of authorized we liquidity, XX the until of available of which had quarter, current under of repurchase end credit, in effect share line third of with our November XXX quarter to With third is regard debt funded As of the and on XXXX. approximately XX.X

XXX continue provides to through the and Our million and initiatives building of our while credit flexibility line program our us fund plan share our restaurant our expansion to returning dividend. capital new quarterly sales repurchase shareholders

open we some a questions, Before thoughts remainder some let for up XXXX. couple providing the preliminary minutes XXXX call of the spend to the on of and on outlook me fiscal commentary

forward-looking All beginning the filings building and in to With as of statements the see to commentary in release, are this today's to sales, from initiative. respect with benefits uncertainties discussed our subject SEC. is Greg noted as associated our risks sales we with Trojan

slow-roast are Specials Brewhouse have building locations. and in following, a our of positive we continue now sales. Daily XXX delivery guest loyal Our to our Today items over menu and our drive sales off-premise

strongest not Matthew. Geographically, Houston, sales including we Austin. in improvement guest up Texas but with San positive of from market, areas through year's our X%. first positive, just Antonio October, and has lap As Each running last Hurricane a the seeing both week the as many sales in from October three and Texas from result, the first restaurant week impact and we of Dallas, weeks traffic are are comparable the been in

this from approximately seems absent I in we the expect continuation for regards began weeks. a weeks the we quarter, would to sales earlier operating be the earlier, restaurant September. trend fourth X,XXX In noted change As disruptions, seeing to

everyone as rest XX-week remind Before I P&L, a the to was move week, of I year. that year's quarter XXXX on last the fourth want one to extra included fiscal

XX of for the earnings those per occupancy $X.XX are also depreciation week by points fixed basis $XX.X the million in G&A, in incentive As extra about and last week type The and primarily labor, compensation. extra approximately many of year week accounted costs. and we cost that year, and last benefited taxes and share. and as benefits additional to costs allowed you may sales monthly many recall, noted The about cost us leverage benefited amortization management also extra and operating

your adjust margins. share last per impact fourth As the quarter models had year's on in earnings please for the the to such, extra our building remember when from and week $X.XX

around where Moving we sales on in expect on sales specifically to to trending, the be expect are low-to-mid-XX% costs, pressure continue investments food and affordability cost our to XX rest Happy the the are of our of Specials, the we some and and P&L, on currently of labor we see to items Brewhouse to items, range have based made under the due like our in menu. and Hour offerings, success $XX slow-roast seeing promotional our

they driving items these traffic guest also While sales to are percentage of cost degree, increased have some our business. into

hourly training-related labor to the to initiatives. sales up pressure be sales of some cost quarter. to our labor, regard to addition initiatives, expect I fourth this building be continue around In I range expect continue today, to With see the to in commodity I the around expect to from to X% quarter. based to driving fourth X.X% sales XX% for would increases Therefore, and trends on wage

sales cost spend. and remember restaurant in XX%, both that includes as which targeting the averages labor operating occupancy marketing is of comparable in highly operating We correlated occupancy range are $X.X sales to upper to percent and growth. weekly a XX% cost sales Please million

in the million XX diluted the quarter range range. Pre-opening in Our should be the be fourth be rate continue compensation. the in should new outstanding I'm our expect range, the incentive on approximately we fourth based shares two for and $XXX,XXX planned as be fourth to in quarter expecting G&A openings. XX% restaurant million to costs quarter expenses tax for low the $XX should lower mid-to-upper

to are our be we XXXX, Board to ahead December. finalizing will for in Looking our presented which currently financial approval plan

me of review an have you XXXX. today, while preliminary do So expectations let management's provide some not approved plan we for with to

we now targeting new mentioned, to we six openings. restaurant four As are

five restaurant restaurants first to with use two We would I purposes, half year. in quarter, the modeling restaurants. second and currently anticipate the opening X of back the remainder in quarter in For new the three next new

menus pricing, expect similar the is mid-X% XXXX, range have it which pressure. yet pricing that be on for would and determined could based very labor this overall to increases based currently finalized we some menu at aggregate thinking, so based while our discounting, next or today anticipate not to basket not the year. to mix for on on to in or to Please so on to factors. basket offset preliminary regard Moving XXXX, and other tend the note current times. cost to commodity promotional is With be of fall, around consideration menu commodity our this our year X% would metrics some the microenvironment. of in I Since we or shifts menu inflationary and as inflationary other these we anticipated winter, which forecast any is spring pressures, pricing our or change our roll out into of new for Also offset take activity does increase

wage regard better of We February expect of minimum have the increase other to With pressures XXXX. next additional wage commodity report labor, will in we'll for months California our XXXX our absorb states. results to another QX idea in lock pressure therefore over commodities minimum of when we and in our well couple as as most a

to and in in addition we for the minimum pressure an to managers. wage wage increases, restaurant continue increase anticipated see hourly In positions the business

XXXX. drive improved server some I as and we pressures productivity should our pressures, hourly handheld labor additional such, savings in be and beginning Despite see new of devices still expect XXXX. into labor scheduler, to and potential from As QX for on these implemented going productivity there management we to is our continue entirely wages efficiencies additional believe which

that As unparalleled labor of server goals our top leverage will productivity with handheld delivers way to and always balanced BJ's drive ensuring is guest and line the hospitality devices best scheduler and our always, to our be every labor service. sales,

of are And With the can said in BJ's, of are achieved and business. As additional and more the nature of to many times our goal bottom builders the we if leverage the sales we normal year, the going and many err, fixed line pressures regard use going side have our foremost. so costs to sales for are at on some operating that already we've we savings first hold dollars deliver profit model line year. next we to each on err to we in occupancy to the is our we and offset costs inflationary to saving face building

expect plan While be not to next marketing marketing of our sales. several around for we finalized which have is to year, I X% similar last the years,

is On gain as line G&A leverage goal the for XXXX, grow. our continue to

or a before, have G&A said of training. growth we is As portion is our recruiting travel, costs, managers that in growth related, whether opening teams,

gaining restaurants next we leverage to X year, With I slowdown fiscal continue new G&A anticipate XXXX. in X the to

Also in year's levels consistent be tax anticipate that expense this million we likely for XX the should rate debt therefore XXXX will levels expect outstanding XX% year. be income Our interest the be diluted range, next the in with shares for and be for to in range. we pretty assuming to range are and XXXX X million

of And yet CapEx assuming sales finalized initiatives. the be maintenance other plan Our to to would XXXX approved is In and longer-term improvement been our proceeds approximately time, growth opportunities of our million, $XX conclusion, development gross in a our at our plan for today XXXX any of X and our operations, credit, from before cash I BJ's allowance and sale has cash restaurants, our that solid not Directors. and new leaseback for capital expenditures, proceeds. flow funding But lease-back near-term with sheet, we restaurants. generator strategies million cash $XX expenditures capital line or sale XXXX may growth base capital receive. and tenant this We our of balance by flow to from anticipate balanced landlord this anticipate allowances Board is expenditure double

lead to can initiatives on by better our and comparable We September October. in are are improving restaurant that now and sales transaction comps, well executing as evidenced our sales gaining

and pace functions, affording With and of CapEx our management We valuation across drive remain growth capital for service. of share XXXX capital a proven at capital very confident macro a shareholder of significant, balance this the of be look midpoint million, our rate are executing concludes free BJ's dividend. for repurchases on and well capital value, we our structure structure the using questions. long-term With again platform, accelerated and despite our reduced including In for an of flow guest forward very combined sales XXXX should cash our factors, is to the next $XX us quarterly this summary, shareholders remarks. and unit of payment year please growth to that expand return formal through up a XXXX. flexibility BJ's formula operations, all our open initiatives year, attractive and of with Operator, ongoing sustained and to to that, returns growth prudent line the of

Operator

to go Oppenheimer. Thank Instructions] you. Brian with Bittner We'll first [Operator

Mike Tamas

is Tamas This Brian. for on Mike

I quick fourth pre-opening for of I a clarification is missed One questions. quarter? and Just couple apologize what the that a then that, Greg. just the was

Greg Levin

be around It $XXX,XXX. should

or $XXX,XXX have We restaurants, about so two restaurant. per

Mike Tamas

saying of plus sort that the comps, talked versus the you you ex-hurricane, are on obviously industry? industry? kind of what the seeing then just gap like industry better guys talk the pickup September October Can similar sort outperformance widen Is a you versus about getting of about your or then And X%. looks

Greg Trojan

best pretty industry. quarter. Mike September we my beat the handily for And month traffic in the that on was-- mentioned remarks, sales was quarter the September the versus and of I

flows comping October, Florida and what on who's or less. had we more some that's So I In seen ebbs we've think hurricane there.

So some momentum clear the as industry general is difficult. it's October, that up we a more little But view picking thing. a it's good in which

Mike Tamas

And well? of think 'XX then just comments, 'XX and on specific leverage. that into is of the sort kind you unit comment in slowing slow that Was for unit you as margins about a or I you think 'XX, you general growth, growth kind beyond the margin leverage of in your mentioned potential to release as talking can

Greg Trojan

of year, is are understanding pre-opening growth question. as as mature growth we restaurants result of to move of the this tenet at the restaurants, pace in but our help lower right as and time last of our is we're the when we development couple going think rate years fewer It's of also But of we half we, year in the us. also look, forward second of said to real a your helping, structure expense saying, last and was Well, 'XX, we as this it depends are on look even beyond around next to given results into XXX openings our of in of confident year lap and and restaurants. remarks, forward year these if sort restaurant new via what certainly opening as system opening I XXX we the that less our of the a I'm

So beyond 'XX obviously is our growth, more dependent pace on of the in future.

Greg Levin

The other comparable at can't margin of you look there outside on the sales. comment restaurant

as Trojan ultimately Greg So mentioned. have when immature growth you slow less restaurants, down you

open regard. to in going that at up are a lower New restaurants margin

sales don't from restaurant. driven you to how comparable have restaurant be That's your base. new you So tail generally sales overall. restaurant But your leverage comp by existing going asset are that

slowing is the that, inflationary you standpoint, business modeling a other about of side comp normal when or from from So of business. pressures need leverage growth on of the But to a also help. some that sales it you think going yes, the to not only

Operator

We'll Stanley. Morgan go John next Glass to with

John Glass

maybe in reasons Greg, And stronger. why being and seem where the was It you traffic or in first more the can this? negative. getting maybe quarter. it's confirm just been see in has that's would one worse, what of mix understand Just you down quarter it's mix I talk mix about this like fourth

kind maybe drive you it is, specifically just traffic? the what is this right and to balance can to talk going strike term to of for the near So you're need

Greg Levin

But Yes, as tend check. there's mix. have a is lower heard we there, about other and on companies in the perspective. off-premise about I we average probably a to think, the total to grow tends business, a John, talk -- business and One couple company off-premise things you've the talk it it,

alcohol the around You don't beverage. have incidents or

to up you tends which mix us business But think perspective. side end our positive you're traffic check, bit when it you that overall. average drive from of of traffic it, the little getting So start is that it, out in drop to so lower that about helping off getting a

have negative our mid-X% being regard with being driven as our X% growth, there, up of to company. then think And about third-party average down check a other the reported, check to a quarter, we I is, a up year-over-year average That start and is we dine-in really you if X.X end you say, when part the third the in X.X in would kind So total with end what X, while about we for range. pricing that at think was we delivery by comp, least it check. traffic the close

numbers of how works. that's So the it kind

of which I in dine-in would barbell think everyday take-out nice slow the us a Trojan affordability let of as is reasonable the we're seeing bit I a growth, weekends good check approach Because balance about some growth average now. where right pretty now QX. the some side, giving talk times. the got impacting, a our well minute, going the say, having this then roast But And traffic as balance. in it's that we Greg in of check that And in struck good middle the average at little in the Greg? a week, into least dine-in. some is especially right I'll around special we've between and

Greg Trojan

say we and of is you them. gives hit I'd you Greg at add thing a we're what think when to good is and momentum, takes I some the a are the there's only as a think it. our seeing up rate of acceleration. mentioned continuing Specials actually discounting seeing thing, say I'd in John, Yes, decrease the most quite check on of I'd -- few most is pick look Brewhouse growth. we're

greater first the year, as pretty last lower at significantly in still rate even but of we is half of discounting year. increase, the than saw So

made something, it the at Brewhouse that's that even more everyday familiar another Specials example about in in us talking menu you value. make remember one of that the can of if we've our changes areas some to of the is reasons Happy Hour So a value Happy become to greater of with. investing where Hour inception is, folks think we

least an on an seeing acceleration offset we're So discounting. a perspective, perspective on from at check

expect quarter that celebration to this able off-premise, season, capability, slow grow, and as more a You continues menu be and large and be in ought going the the of obviously coming in think to where of the business particularly in to to negative. we're in But invested I new party ordering restaurant will items roast, upside both off-premise some to we've and grow also leverage checks. help holiday

value. driving minuses trying by So overall of a driving to also lots we're check, but balance there, through some but where we're design and create traffic pluses we're

John Glass

And just dine-in, as so mix the talking I about was is the negative? is or X.X, positive I Greg you the understand, make were Levin, that it in sure what X.X

Greg Levin

The X.X is overall. positive

average actually in or somewhere dine-in last, that. the over like was Our around check the X% something

John Glass

lower But distinguishing much it, is the two. Got or between I'm is off-premise the sure and much then not lower were how check? the how off-premise delivery? you if than

Greg Levin

don't average I to give specifics tend which guests. we is speaking, XX we that. to that. that average X.-something lower the than a But about ticket, generally to want Yes, say John, about it's And would regard in all

John Glass

important. as can about the again? -- you just operational growth, and I Okay, focusing on unit talk reasons know the it relates lower operations is

this and this. and Or unit how economics other you just been can How has of pieces of You it estate estate some construction, estate ready real you also construction is so real to of do an maybe much where are? around mentioned recap driven real by the can't or either availability the the it, it's factor? limiting much availability find like or -- just is you're but

Greg Trojan

managers two reasons mind, longer, It's and in to them one, our John, the resource executing respect in deploying of this oriented. is our we in of eliminating have human our people the obviously in of particularly turnover restaurants better estate fighting and real my or kind returns more churn really three number that and that environment. in the battle restaurants not keep in, It's

one look, means category, would the be obviously. probably going I Because this isn't that's think lack think be year. it healthier. And restaurant in This be having estate is But grab one we of of than thing it's we're new a to And portfolio the to not opportunity at land So availability. But rates still we'd environment look go-forward sales faster do frankly, the time. rather better point we real at our a this right our as race in growing there. that not.

as restaurants and members new in this hard depends with think been in do So well. opening people operating other team it's well well. environment while mentioned that thing we're as as finding attracting our restaurants. is happy we the is as a I on And and great

primarily I our it's in at existing together, So traffic those sales think all of but resources restaurants. our pointing existing and driving

Operator

next to with Stephens. Will Slabaugh We'll go

Will Slabaugh

you I looks for now percentage this off-premise sort had what of think if another curious where time. the over BJ's of is growth you'd question on sales versus and rate like was then share point off-premise. I is a what at goal reasonable

Greg Trojan

in there's there. a I that but know mentioned remarks, my I lot

We quarter off-premise a reiterate in early through in made XX% the and and remark QX. I saw quarter the that I'll that it. So the increase into accelerating that's

a part pleased through platforms learning of answers and we're parties. still the we're So that what balance with we're of And hopefully question. our both very but the seeing ordered third there, that lot from

Greg Levin

And now. a X% Will, number it's We it low X.X%. It's about still hitting talked about overall. barely being right

and think So can of it business, nice growth our that a in increase I we regard. X%. I in be frankly overtime. it still It's be a mean But it's where think call lot to went area opportunity but in X.X% there's not that still Yes, should we for let's

William Slabaugh

the stores. as you, could markets know I give and that multiple Got update on you and delivery have you guys us well? in multiple tested

seen initial you've what that markets evolve you're sort any there Are of little bit as So for it you've tested curious longer. I'm have been had? across that revelations reactions you've new and a

Greg Levin

delivery calls as you, more I it's though I'm this and I executives Even on well, heard there. think would think. people challenging to than I've tell we're other companies, sure and out you've talked using other third-party

regard. in which for that it, talked staff about to have we You

providers products be one perspective. to though your in umbrella represent service certain tend they in that a find from good BJ's somebody providers far and company about member And to as your not even bad team doesn't going brand. concerned might can under as markets, always be a and that's You're other markets, service you third-party

know, of The pay as it, commission you other costs. do over those time side you

consumers negotiate accepting While standpoint, that what we is are got has doing able rate, else and reasonable rate it everybody from to it. and a sure we your cost were reasonable business of is think a I'm a

So But we it's growth. than need to plan think. showing great it's that business more and always much difficult think people I some

do outside, a and the you of you delivery just and hire all have I sudden believe you it's do. incremental anything don't pure to company third-party could in think And from people restaurants.

You have to staff for it.

there's So labor costs there.

have You packaging. in to bring

of like packaging that is make providers got complaints up. delivery You want time delivery it good our opening But level. sealed sure ones doesn't they're at and We we're anything, executed our and with out service to XXX% there. and not monitor your frankly XXX% talk every it day, the

Greg Levin

amount a we spread might pretty good Well, that One other density of coming of the think a from think thing But consistency that's from We're perspective. is of I incrementality terms wouldn't regional geographically. restaurants related seeing guess-- I we're this our a restaurant seeing most to that varies surprising. to occurs of these California. the that case, been gains just be it opportunity in given question Obviously in would evenly seeing. that in the is And California fair are it say to that I really of hasn't restaurant. and terms me

Operator

Securities. next We'll Matthew to Guggenheim with DiFrisco go

Matthew DiFrisco

item Levin, line appreciate the on the bit-- always detail Greg little statement. a income you your mentioned I for

start considering the fourth comp the quarter. incurring, bit fourth you that could how in headwinds little of cost into you relative on But given the we current thinking might us you maybe more with that sort of could as be on just and labor? you costs, training guess maybe a labor those now trends hurricane many we be going context training give could basis it around little for in XX% it. year-over-year And I XX%, might So XX.X% if detail expect I some in dial to of a had high seems the want some punish and articulate or leverage I the far as forward quarter better. X% XXXX and to don't a of points guess what weather of that back you of

Greg Levin

the wage range, hourly a kind some the the labor on think X% up That's fourth specifics looking a it know in standpoint. and quarter. big I that have would and that of at challenges tend closer great was to we of rates (inaudible). that at I think to detailed more about in Prior in those if surprised, analysis of all to we question. I were I But don't you dip my us tell how X%. August was I frankly, QX, spiked for kind from

kind of I where comp I of wage to year-over-year, plays X% what sales out, it's honest. the and frankly it there based when kind model to on look be rates put those and try So kind at of are, in perfectly

inefficiencies there's some new labor there, still because frankly to changes some in some leverage around continue efficiencies the I numbers there. the as are think out get there's around ability work those our scheduler there, handheld. that's of And the we still to

in over goal place. those our time get is So

build to and or The it. other your which as staff about start you a off-premise, for delivery talked delivery call prior thing to we is have earlier in you third-partly

have getting stuff think mean just to You they they restaurant I magically labor and about out you you to that companies, you great service somebody the happens giving don't like money, somebody and tend then that in it. regard have add It's have quick have have there. packaging that food. and not to somebody taking it

And we through So think people ultimately. about people are metrics want take-out all to are to building I in we And showing two our move make sure thought that. somebody putting of there staff faster. to scale

little If higher to going next the continue So year. short that, into bit we're and sales. side we'll a it's then eventually that labor take err of we'll building term, means going to on that leverage

Matthew DiFrisco

guess that first in but training bit somewhat little anything is there curbing far as previous there a you sales the the at not same-store the the but only to that I potential handhelds also well Okay, maybe quarter? of a expensive, out as similar as was -- little did bit

Greg Levin

no. quarter, fourth the in Nothing

Operator

next Barclays. We'll to with Bernstein go Jeffrey

Jeffrey Bernstein

can you questions, think comps guess at EPS expansion Two opportunity flattish algorithm. settling your type and you're assume growth. I X% one do What unit type achieve this how new would short-to-medium-term provide standpoint? kind short-to-medium-term for a next to were using earnings you algorithm from single-digit And was plus growth to was low do of the run maybe I to if margin if just of you you new about what be growth? kind going type if going the that that color, revenue And rate of in playing the out as few I forward don't norm think but of translate years? we that you specific see know kind

Greg Levin

all have don't I Jeff, those specifics.

XX% still through back We margins we been business our we'll I XX% that's BJ's, target on we Once they to it continue that to think some business, and ability it get into to all makes work guests our and to ourselves got there range. at our our working back drive and know work that in the and work That's and time. the times to we've gives business. areas in where balanced approach. certain we've historically see to our to areas, around to traffic other like more other continue get go much sense us traffic leverage how

margins it, you dollar to going percentage leveraged question, pricing, the if from If about be in The comp? standpoint margins. is X% of more regards as a coming differently. traffic, leveraging your do is think standpoint profit coming a about little well difficult from that that in in all get to X% to how pure margins If is that as well, you it's other side versus to X% going that's bit thinking on in get

all there. So those challenges there's out

versus sales we restaurants do then as into get about dollars what too our frankly needs to driving our driving initiatives? and bottom driving business, driving to is plans goal percentage and profit actually our Our and And We'd be. on do margins, line we regards down to we ultimately, bottom sometimes in line? rather caught the by what up the dollars our our guests we put margin thinking our how more together to more be getting sales down do start

Jeffrey Bernstein

as encouraging And think having category seems improve you the number then over of that from seeing casual dining the be so broader category, you're perhaps trends you weeks. just pretty it entire a past value-oriented for focus. success the to about But seem more

see you environment, strategy pursuing few you that's in of driving kind whether the what's uptick, seeing So the and are where a any competitive landscape the everyone's it just get I'm the similar more in change months? past or seeing how wondering you're competitive

Greg Trojan

say. I think Jeff, it's to hard obviously

continue to been going important be. our has of and think to component I value obviously of here uncertainty, it's competitors and years number era driving in this for a traffic us an of for good economic

is early broader there's disposable not year, new of think think the an encouraging lag. there. that there where of income is know, bigger don't predictors we're you that one in this news in seeing listen, over is the of be income -- like. those thing of basis super growth that of the we're we an at I one more category it we as resulting beating of last I few it's the QX. times restaurant that months a as And So frankly in actually in sales anything And that on may do last we somewhat QX improvement. the like industry one was encouraging perspective. good couple what did on from disposable of in personal But looked looking unusual was early weeks And industry early it's part even

take the that optimists and that in our the and way of industry its beyond. down sector effect our you'd seeing here quarter actually into filter we're around So and table, hope some this

good a be would knows that be sure, of -- us But obviously. would that none thing. for that So

Operator

Jefferies. to We'll Slagle go with Alex next

Alex Slagle

we're guys to sort idea I an if the September what insight October was underlying wondering some in sales like, of and of the traffic that on numbers and get look just is. could trend provide what you lapping

Greg Levin

softest look better, finished probably had would that year I don't in one year I probably give about started comparable tell easier We the of a year, when one of last QX September October QX our frankly, easy you toughest sales in so. standpoint. specifics. necessarily Alex, the November September. of I was we ago quarters October though and X% December last our about did sense from me, what we get as comparison to a at say that last was October we But nothing was all year. easier of think And or ago. of comparisons. But down believe is was our compared year Because an that to

Greg Trojan

-- looking frankly a by comp at is I difficult than September would we're and not a say was. lot. But more it's comps, October similar

So there's--

Greg Levin

year ago. a our September, softest it the was

Greg Trojan

October Right. than therefore was I'd us year-over-year more September. a for say comp difficult

Alexander Slagle

to can a level sort on not sure guess, you to in benefit basis, some if on how development the but more assuming provide, apples-to-apples much follow-up on just see quantify a you 'XX related might for an then maybe framework how and some margins Okay, comps. reduced question; you potential restaurant the I'm were of previous I

Greg Levin

Alex, I'm in we that sure specific that have a not regard. sure number

out, the our of plan bottom-up coming board. maybe from that I XXXX kind through we And question, all the our threw put together honest, where But a you we that we'll through number. planning, to asked of of tend perfectly restaurants from be you on would you number we a well, better try new as based comes As to have it our that comp whenever question haven't that and plan to is. and on know have and X% and restaurants sales down yet. don't perspective, do go we I tell gone lot get And a many

just is. So don't know that I number I what

Alexander Slagle

then that. million, before missed CapEx That's the growth fine, CapEx at I to thank million just that $XX you. maintenance? $XX And is

Greg Levin

CapEx maintenance is We've always restaurant. said in $XX,XXX to CapEx $XX,XXX around No. That a has somewhere there. that maintenance

get restaurants $XX times So kind million $XX if million to of $XX to in $XX,XXX, million that XXX you you're just took there. going

$XX million. got of investments. a so restaurants growth And it's million. to $X That kind X be great question. of gets of million, thought right now you going that's $XX of to You've then million I'd just $XX at kind

if growth for and make plan an they determine We put investments haven't our together to plan Board. go ROI analyze We for we try our there. a those But sense. generally through

now. broad a number right our with more as roast. So a everything should But go handhelds was we slow little speaking come next number that it's for million to number than of This a million likely $XX gross year. the heavier year But generally $XX bit pretty through down. probably plan, be would and

Operator

with We'll Wells Fargo. Farmer go next to Jeff

Jeff Farmer

late, it's I'll quick getting these. try so know with to be I

What and but can on a I mentioned you low-hanging bit chain. there? you then is of provide line the So what lot are talk cost the a the just more you about Greg, the savings, supply little opportunities opportunity think color on both think G&A

Greg Levin

things G&A February. is you our difficult neighborhood think of it give to of in guys generally of that about XX% perspective. update and a operations, One three in the the a is about some made talked past, we G&A, kind our field you And about up But on in is that which the of buckets. degree is of somewhere modeling we'll you as Well, G&A. that Jeff, from better probably makes know some I for

is level level to so as you same of related corporate staff, unit XX% at growth, usually at or of same got related. top growth to that's And it is the got sales XX% growth XX% grow myself, You going the line speak. your and

the rate after. be go opportunity The some to lower year-end those together part to X% of to and each other regards continue through project and in cost put go in the There's kind we've that we'll we operating initiatives there in there's is the a as national there. that significantly to that's that we charges, at as continue look savings restaurant dollars actually to range [setting], growing and area are areas. that So can at year occupancy, become rest of our that that's to that going freight regard. In that other to we things got X% decent put that But probably together. kind do around to continue things to we'll specific up. sure, I'm have we opportunities not of is out we lined But again, yet regards quite and more

Greg Trojan

can you Coast That continue infrastructure, and So some Jeff, oriented, Coast chain the even our the several we vendor shipping Coast of from from being to rebalance. East locations give away supply as and at California that West looking and to chain obviously and look Atlantic. distribution supply focused idea become years an to growth we the much the more East we're efficiency and Middle of our Texas, whatever that of freight and last over

Jeffrey Farmer

think. you right, helpful Specials and was that All does you that and I'm fall quarter-over-quarter percent continue represents But mix then what sometime just grow the it just late I to last sales menu that's 'XX for today of I so question, or in introduced guys? it last curious menu think Specials Brewhouse

Greg Trojan

item don't we growing know, growth those foundational incidence A, an for at day you Because I I really into at overall But do I number an honestly. don't incidence But there. we at look part don't and mean are have is by We're have encouraging. looking quarter-over-quarter. it's Greg, look it check it. menu, integrated our you about really don't dynamics way, idea We traffic there. if think days, and there. it which in that really

Greg Levin

No. lot a when Jeff, of baby and of that thing and which rates be towards high the incident year frankly lot which This as year, Monday we of is it on was The which pizza part And really last special. the Pizookie, traffic say, week. bunch is some rolled we're for really us. same I it QX Pizookie, our the $X back drink going with We our first half the generating only specials say are is March, on to seems on I our specials ribs burgers business we of was Tuesday to specials other on out latter it the Thursday. pizza this and want around of Tuesday, was for a earlier Monday a actually in was started our seeing and well Wednesday, added added thing buzz the

time of some to though the in in QX roast. it frankly year of kind frame. quickly, the pretty some old. remember, we to QX, So of it parts of a even rolled pivoted And really we start Other you as it's slow it's come

now think you to I low incidents. those a been that we've in with where can't get nice we a pricing, increase Trojan's I incident So sales. what tell is But to seeing as rate out the exactly of growth more, percent they everyday are about Greg that able are talk point, the there or

Operator

next go Piper We'll with Miller Jaffray. to Nicole

Nicole Regan

earlier from Just much as conference with if as the them much does roast or many them maybe resonating there you at call you not how wondering how are, and could questions, total guest to how value you the or past? two of quick that I a about about compare you define in customer. perspective, the how the the platform talked look slow talk value was sales

Greg Trojan

sorry? Compare to Nicole, the what,

Nicole Regan

To would ago, compare period ago, whatever use? five time year you the does to that years one past, how

Greg Trojan

that. let slow sure Kevin then guests roast roast, items I'll roast not you But because challenged slow category our the So we does does value areas performance wasn't in the those let your I answer demographically it can tell was that question. in more was slow know saying clarify none. well What me I as in and appealing as just I'm of to trade that not income something,

by and Tuesday, was on Wednesday these I'm praises was Monday, I here, what the there singing products, and because night we saying, Nicole, weren't Brewhouse messaging our new much. just is of dominated So out clarifying Specials as

from So that value was. terms guests generating looking for trade-off frequency of and those message where that that's a trial in are awareness more and

doing think do roast important those Because our you for the way. geographies. that area are So it's board in well restaurants' the trade an I thank question across asking differentiation slow and and items

Brewhouse Friday where our by momentum on the don't think success do I'm that in incidence as is been but case. is that focus. that, of as marginal the I louder not is But still own, Specials of without well, to have you roast its night, QX, value, around the describe being more guest where the the going certainly Brewhouse totally of I part a our and uptick case doing on core go -- part talking So could part slow latter the about Any our in products think there. way, our around

Greg Levin

Greg it's Nicole, Levin.

our and lot lunch that, that has in those type rib think I about seeing items the that fact us it's rolled, dinner I people of these the lot slow whether been business, weekend lot the prime in week talk when a we times a think of are casual The dining. of roast are they're the chop, of items. a and we middle items pork or challenge also

little message a we're And a in a versus messaging something don't regards It burgers saying, about that's price. come more we the that's think more and telling BJ's. expensive. hey, there value I on out So having I Brewhouse disconnect x guest bit at in to checkout weren't to, was want BJ's a

Kevin Mayer

is that's good This point. Kevin. Yes, a

bit our a a when of lunch younger, speed, of couple Gen-Xer. of in we've convenience that Levin last probably guest on you And in as mostly years. Greg mean looking which second-youngest, it little it's affluent, of to think seen bit put I the that, think a part over just looking for more across the more the little I I at type increase across guest look parts. type day guests value definitely just -- landscape, call landscape, it, driven family and one an terms But of of millennial is and we're add day probably group, those to being

type on we're And that of So way the by more opportunity. I in weekends, the think come with for guest an happy they experience.

always in. also restaurant. looking and atmosphere They provides. that at do spend they're they're they BJ's much in Those families So experience bring time sure, for the while value, the folks, their very

Nicole Regan

today. just culinary slow That's know Could extremely etcetera, define how by sales pizza, one me; roast, for give the And question you burgers, top just some about don't etcetera? but you innovation, platforms might helpful, us obviously. They're been I added it, you've talked mix? last and

Greg Levin

innovation type would probably this entree been bit probably don't the slow category I has say Wow, been more probably with which how has to I a year our-- been that. roast, little around answer in

Nicole Regan

you've total I'm around because like just things clearly. Well, I I had are the sell so meant didn't sorry. of? innovation, that the mean total, the-- just I that. what ask about didn't what Greg. innovation, are sorry most your sales, you Like, Yes,

Greg Trojan

It hasn't changed Nicole. significantly,

You'd see when in the same-- it broader categories. you define

and we've think continues to burgers. about, top XX going incidence be the part an greatest as business, main grow in which but and a I category still to of talked perspective, the items enlightened is of Pizza our significant the seen, be are still we've one above sandwiches obviously. increases from

So category, there's been of have been slow the the changes. haven't nature from of roast our plate of not the has of and steaks, say success salmon, the I'd been a has those the that. from rib as shifts concept. dramatic. part been growth Prime of But stable, changed area our and result of And the in cetera. tried aside it's entrees true aside development relatively et continued that, center we and

Operator

one more We have time for question.

Tarantino with to go will David We Baird.

David Tarantino

October; more in seen that been around more concentrated that Just questions broad-based September a first sales Texas? Could perspective you recently couple the clarification has from that? or been and me, has provide in improvement you've

Greg Trojan

has Thanks been for It asking. broad-based.

meaningful I little we're drive think we're momentum challenged along ride. geographically. the years, performance the delta Texas, our what's more been it you for improvement, can't we because Texas about. the excited But being it's driving across when and seeing more a But changes and last over obviously couple guess system the without of I at look California

David Tarantino

to helpful, however comps I flat that's a several it. it take perspective a matrix have next Greg from to what this. don't I restaurant know if if or could Levin, it you hold do from perspective or year of helpful margins improve or would talk about Great, way around traffic would some to then you it people sort be and any provide know there's But and asked want

Greg Trojan

planning Yes. we'll right now, there that once question and to minimum It's continue work standpoint. time we great we've a into think the state I go that through all from lined as our got in wages

challenged people in you're little of seeing lot now the right industry a a being I in think labor.

that I labor exactly might of think the for challenge in that's union biggest I a the things probably little a other we're where for see us to be helping bit and starting to the think number. slowdown that going it and know don't finally growth is. industry regard. to I tend But in be

our nature the into your us to a in sales think leverage number traffic happy driving and that seeing entirely. we But together. comp it I'll Street ultimately out in right week, as it and we're hopefully we're majority about QX fixed I standpoint. put spike our getting I labor. by leverage think you'll sales our hours plans, David, see when our we position talk to success a hourly comp and our think it gives think save with through final think way the to And driving plans versus be share restaurants, I through on and a per job about standpoint as P&L continue that rates right the you about it's went from from standpoint do that; the broke is by if to we it managing the sales building. service put hospitality. that that our to to trying have of more the get I cost know And the P&L and better we're come the that and now, good of From way we I better labor ultimately, the wage together with and On

David Tarantino

with got Yes, makes I some puts sense, given all But I takes, and also unit slower the the savings. you just guess you've up you inflation mean that, on growth mentioned. follow to have the offsets and productivity

than and restaurant to So do usual year leverage you you next going harder could than margins with is that? usual or think to help maybe just easier be directionally if

Greg Levin

a couple I think Yes, things here.

little our with gear probably line the from seeing a a on will of top up important can aspect just the You QX very of sales But with in I commentary think there. be happy business. challenging that's bit little QX. most and we're those We're pressures it some my

think better into ability I cost good in a we've that. can to reasonable things. the there's of initiative the and that certain and And flatten if to opportunity. a I to there. generate in labor will think begin And we leverage get are degree costs Because think the think sales think as get in got sales comp get year, to I a in of I there. some to we be position next I of can leverage a the of amount large side therefore that ourselves lot training a perspective, a we And begin from

Operator

call. That's participation. it your for you today's for We thank

may disconnect. You now

BJ's Restaurants (BJRI) 28 Oct 172017 Q3 Earnings call transcript