BJRI - Earnings call transcript Q1 2019

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Operator

Good day, and welcome to the BJ’s Restaurants First Quarter 2019 Earnings Release and Conference Call. Today’s conference is being recorded. At this time, I’d like to turn the call over to Mr. Greg Trojan, Chief Executive Officer. Please go ahead, sir.

Greg Trojan

good and operator, you, afternoon, everybody. Thank BJ’s call and to Restaurants fiscal conference investor quarter first webcast. XXXX Welcome I’m Greg President Trojan, on BJ’s Chief Executive Officer, today Officer. Greg Financial the and is Levin, Chief our and call joining me

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

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

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

please. So, Rana, ahead, go

Rana Schirmer

Thanks, Greg.

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

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

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

Greg Trojan

Thanks, Rana.

of our disruption of materially the of and by outpacing was continued QX positive an industry X% unusual X.X% our basis start on traffic basis, in methodic XXX of weather of by competition by characterized continuing one XXX Box basis and a year the the by our share trend the Black of traffic as comparable and every major calendar capture points While level a sales measured markets. impressive our sales year points. our outpaced Measured

last our We counts have grown on average months. the now XX in and XXX traffic. last also over basis Black basis in by XX outperformed points guest per the XX sales Box XXX period points months We’ve of

year’s in thanks continued were level restaurant control face group levels, last that to our declined our excellent I’m the to of margins encouraged from of We While the work costs (X:XX) able operators. growth and labor expectations income revenue exceeded pressure lower total we were results planning. average earnings. in for sales and deliver our to share per that and us net sales, comp Enabling check

margins fixed goals effective should to roughly in is pricing. XXXX growth company and level to One and prudent believe growth drive X.X% of enable costs. our for this nominal and leverage maintain our menu G&A check mix, We check our level range to discounting us restaurant other that X% through

in gate the As our enthusiastic our discount as we a the came than redemption target, our lower this promotional on our check and we than modifications with below of X.X% lieu TV, In chose actually of seen Brewhouse we of calendar. yet month. X% overall out we March, to then, and loyalty to of coupled some offers. due our use to loyalty This the a call, we anticipated, started indicated traditional, is discounts. market and check several marked notably, we we’ve net check activity program, from positive our traffic higher on good year our Most moderate how still as our a of made our example average in our the discount traffic messaging, discounting offers marketing bit benefited able to are can Largely QX Since rates on sales, to result drive more growth. ago. to guest improvement guest rates Specials guest year a a our we for on digital deeper sales promotional loyalty rewards, drive and Brewhouse offers harder

building traffic continue front. We menu be we proteins. initial our successful our always, to on launch part followed average of two check are years recently up initiatives a our As strategies of tremendously ago big slow-roast successful and this and our

Philly of plates. and introduction sirloin Sliders. Tri-Tip and the With cheesesteak combination entrées a tri-tip sandwich Along with

greeted While and about been we’re only have guests team by our enthusiasm with items launch, our into these restaurant members. incredible six weeks

Our quality order to incidence well. provide while exceeding are opportunity expectations to us our to food advantage, our and to for differentiate levels continue another continue productive as check – growth leading

business the off-premise our We an we up do high to made is our of QX, work off-premise Another to key sales. initiative all-time traffic continue and growing. as in XX.X% set checking keep

then the levels these followed off-premise reason achieving BJ’s X% of years. our no sales sales and coming seen the of with you about time. few in achieve with at years the industry channels the now, delivery space from journey over initial in our goal we’ve see consistent leaders we average next their who about established XX% have past takeout. penetration can’t of as we level this about Since us several similar For XX% and over those started We our

initiatives this a well and profitability. as into see current off-premise an tap occasion Our our grow as critical check grow average our to opportunity guest way and to large achieving important another category, We new party catering as and this to business are goal. to

we this pressures are line availability deliver Our offset our June and to channel Progress critical large party initiatives in is on start these the facing. to ability boost top to to wage year. should launch of another growth second half the continue labor off-premise

out changing Project strides reducing simplify our for This value cooking how order, chain committed receive successful menu to how at roll to to of aspect inwardly we continue we time, operations However, by and kitchen our initiative. same order our items and is remain evaluated our our Standard quantities, optimize Kitchen and to Systems every we and Gold journey an the execution. past prep to even and food, kitchen This and BJ’s how month, our began way. we up effort for lines. we who we set and when made make from along supplies perform our In have when We’ve equally work. of organize, our we the and many on procedures to the kitchens efficiency focusing Q physically prep place few shift prep important store, line to years, what better looking

year. not our we as fundamental kitchens some of this as places enable are grabbing accomplishing menu best more anything maybe think kitchen will and attention to work. our will improve introductions as new as important campaigns, kitchen our members, team else While better operations even us or to as marketing retain it’s This I our it importantly perhaps makes

important can, our the to to improve to seek best clear our is continue members. and how continues organic professionals veteran new attract retain and ability our it to growth to we team ways restaurant be we our As

their our almost of know result careers unlimited in they a to they a As grow growth, ways. opportunity have great

in XXX our are outside speak of advantage which and the This continue two that to our large are last sales themselves on great a are annual have, markets, as dining restaurants. of gives opened the opening wide concept Florida and remaining our a $X companies all million to new most years, approximately record us we’ve space road restaurants for track over compared confidence California, The and now. other we we restaurants Texas plus right compete Our to core against. we averaging casual grow resounding XX

our While competitors and the that hurt strengthening is and check drive our fellow in our and value way pressures traffic it. real, in business keeps our a not to equation, focus does cost fact facing tremendous are

every the guest initiatives right day get members, that have to are in who have to the happen. shift, deliver to XX,XXX and to dedicated experience make restaurants there momentum work team and our We every fortunate

and opportunity the untapped We have still further expansion. we a of and concept confidence of initiatives in supreme years large our balance for have right

top and and sheet on deliver and very our value our to we through low dividends. balance financial of allows buybacks organic pillars, all of a leverage have operational shareholders flexibility combination to these a Now great strategic that share growth us

in gain members utilize and progress Our board expansion our coast-to-coast, and program our the our remain by In share strength approved shareholders. outlook collective of about is fundamental for of as our build our experience such, and confident $XXX team ability we closing, the share they’ve sound consistent growing our growth. are success value strategy, And I our greater million. learnings an repurchase ongoing to for of in to our brand achieving, optimistic BJ’s executing

So now, outlook to I’ll on year. further over quarter for comment of call the the to and add some remainder detail turn on the Greg the the

Greg Levin

Alright. Thanks Greg.

let into earnings Leases, make balance the for in Update release everyone costs that a annual million. quarter, cost Before of we XXX required us one-time per right new $XX leased increase approximately of million Standards our assets put into the lease noted gains operating The we which of Topic the leases, of in XXXX-XX, to existing occupancy lease me with retain adopted over QX, requires term year press use non-cash resulting us details cumulative that our with to liability. corresponding the operating were we also present remind to and of a Beginning occupancy accounting amortizing approximately our the $X for the as sheet, in asset get as all today. sale-leaseback adjustment we the an to standard value Accounting on

As exceeding very approximately driven estimates. by had reconciliation our our a traffic X.X% quarter Trojan increase as growth and X% million, positive all a Greg about in sales by of occupancy to and and or a our performance changes was equates by comparable comparable result, key of average guest the of our is $XXX,XXX metrics QX share $XXX.X basis strong weeks. operating aside, points, this of quarter. rise There revenues And increased and of growth consensus in press impacted X.X% Total we in X.X% standard costs X.X%. release driven check that restaurant approximately restaurant with operating for our Accounting $X.XX to sales mentioned, the back a a that new today. XX accounting

positive restaurant X.X%. quarter for sales From comparable quarter month of six increase have and successfully last consecutive being the traffic a strongest we monthly hurdled trend guest restaurant the We quarters. comparable perspective, sales throughout March improved now driven year’s first with

first cost quarter. the which part of to last increase his compared Greg line, slightly was our Looking first in QX higher sales below earnings the the just reflects occurred of discounting which our year’s that mentioned XXXX on up slight XX.X%, quarter, call which discussed the on update. top February, back in we was The in

mix, sirloin. had to cost success our new Specials we and as Daily related increases some well As some of and commodity the both in our March menu Brewhouse continuing tri-tip

expected, rose partially quarter standard increased expect compensation costs points first that lower XX of due growth I labor be XX.X% XX to Operating higher equates digits pretty to points and to I hourly in increase XXXX. were accounting approximately as year’s well first operating year in as last Included fiscal earlier. roasted a to spend, wages year year’s wage related with a to lease delivery to costs basis sirloin. million points and for would to X.X% the sales tablets, ago primarily all that compared ago, the for consistent server and and range was quarter. related our it is in was incentive $X.X the which slow QX first in occupancy for from the basis the higher of in related and reviewed marketing basis cost impact new The of factors As maintenance is taxes occupancy the fees offset quarter. mid-single Hourly benefits handheld last quarter. XX.X% XX and labor by of tri-tip from These investments to

an within our increased and compared X.X% Included by higher Excluding in approximately last the quarter that’s accounting quarter of same and administrative basis $XX,XXX expenses compared $XXX,XXX the year. to averaged and points QX to costs our comp approximate operating $XX,XXX delivery change. first the marketing, restaurant of operating That sales to to maintenance occupancy basis XX of fees, $XX.X in the was year. increase General were related last is per to G&A charge primarily the and points XX our deferred week costs non-qualified million, expectations plan. due or

into have it without have corresponding Now offset a own comp we deferred gets in all QX, impact the and business. and accounting, our as is an increase G&A. time, and to liability same plan the two getting on that gain recorded the a equity our that details goes did comp basically income. the in we deferred when the other market At as in have is of to deferred charge we the comp recorded material no investments Bottom for line up,

in of allocation, terms capital continue operations $XX.X quarter expect we our be expenditures gross Total the range our And approximately first million. of flow In million strong for use million. we fiscal expansion the to to capital repurchasing $XX capital plan, execute were to from opportunistically to expenditures $XX while will cash for shares. XXXX continue

our the of common of million $XX.X allocated we shares XXX,XXX approximately quarter, first the stock. to During repurchase

approximately total program now as mentioned, since We press our release authorization. in approved initial in Trojan a million, under shares million of noted Greg our the our have a increase authorization and Directors we And stock repurchase today, April of million approximately repurchased $XXX available repurchase share share share us and repurchase Board of $XXX of XX BJ’s giving XXXX. retired for approximately million current program, our our $XXX of in

effect During which approximately cash returned we of million cash XXXX. of additional $XX.X quarter November ended regard in dividend. quarter, liquidity, quarterly is funded million with our line million With shareholders $XXX credit, to an through until the $X.X our on to and debt the we also million first $XXX of

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

forward-looking in our as with All subject with of the statements this to commentary and associated is filings discussed SEC. risks the uncertainties

For of well refunds, impacted months positive drive in breaks, said, to the late range. year restaurant comparable the Easter and March Trojan said possibility always two the those are of that the the continue comparable sales mid-X% are as toughest times always That the are restaurant These and and being in of determine follow April our weather. tax shift the trends initiatives BJ’s, that Greg sales business. that by spring winter to of I’ve sales BJ’s to-date a our for QX, up reviewed, as

trends we for up us then trends, a some days trending earlier eve year was our to trying and us are Easter two operating increase sales X.X% in year which comparable first weeks, the regard plus is in underlying underlying the X.X% identify from were of X.X% restaurant be were With spring we two to conclusions range. However, for trying X,XXX these weeks sales to last the range. would appears X% to-date out in a the that the second comp on the was going week be comparable quarter. restaurant weekend, from pre-Easter all for second Therefore, therefore and the positive come April at this, looking which of of April in Obviously, and quarter. to restaurant Easter against that flattish breaks our to continue Sunday ago top weeks, days, it sales negative pulling mid-X% to were in of in range, and approximately ago

slightly commodity from Moving is second mid-XX% we P&L, QX of items, sales in increases onto avocados the the anticipating quarter. increases expect to for have I pork. up and in the we the rest to seen range would low This cost be as some are in of specifically

greater graduations expect now, labor prime , With Father’s in we cost be have dollars. to of specials sirloin. have in for about tend like are a XXXX. sales profit Day cost success roasted continue from average our XX% ago, rib we the our higher a Like tri-tip for for protein-centric we pressure in the I year. some expect and regard time but our fiscal in total years around we to we prime two of and slow to Mother’s to sirloin of the the menu check the sales a Right to out full celebratory be locked around labor, there May also tri-tip higher QX in having Day commodities XX% percentage, when rib, mix frames Additionally, rolled June. Also, on around generate gross resulting higher have

to Specifically mid-upper in the QX, I XX% would expect in range. be labor

As Greg the Trojan mentioned and we the all release, being note are press systems implemented kitchen in quarter. in our in new second restaurants

I some additional in in new implemented systems expect following restaurants, restaurant the mentioned would to I February, last expect for quarter. on the then invest taking call each the end to of through our these over training. learning several hours this quarter’s weeks, about As in curves second XXX us I get

We QX and spend. In million to operating million, last range XX% low occupancy that’s X.X% in increased well Los QX, our marketing offers. of help in QX going year increased in Angeles, was this to TV are large approximately year’s sales. primarily targeting is $X.X specifically marketing some costs for $X new the The digital party spend media, equated include our marketing to for in only launch which as increase as catering of in

labor and and is are averages mid-X% weekly year, the sales around specific for quarters last will spend However, operating a highly costs really several growth. as Please percent that initiatives. still to shift restaurant sales message total to just in our the correlated The marketing and remember comparable both a is of QX and years. low with our increase sales to occupancy consistent range the this be

so. this or that’s restaurant based Pre-opening second be $XX our should line the that expect effective I second to $X open for expense the $XX restaurants in the and planned be two to rate discrete for for million be the our new items. annual expected should quarter G&A total be later any on for in costs costs range, expect we pre-opening to million XXXX as be tax million quarter there around significant rate, low range some and Our G&A unless in around are that the still year. quarter second should plus openings, with more in XX% be

concept diluted six XX of casual the dining as position quality, approachable, reflect positive our in range and elevated quarter, the guest We’ve continued quarters to-date by polished quarter is going continue elevating ongoing is and be sales make consecutive well we the this X.X% to our trends comp positive well. Our should million In despite traffic progress for consumers, low marketing our our higher shares our outstanding concept. evident closing, a and of in as through last the BJ’s strategic awareness the with year. highly over shift comp from resonating Easter positive calendar sales the

concept, BJ’s the This of excited the financial while casual and about further fundamental success. Thank We you our further share efficient capital the with policies and focus confident further Gold awareness for taking shareholder open in growth items brand pursue a prudent new on formula still capital roll Operator, driving balanced a plans as and with factors productivity foundation concludes solid sustained menu near success, our restaurant management as massive We to and and remarks. we the us. our coupled efficiency, to please place and for more for These new to and are Kitchen expect initiatives new This our the up continue allocation restaurants established Systems. and our have combined have even before to our that Standard long-term become success elevate formal appreciation value. on in remain the a market our structure return we questions. that capital dining out we of being proven is approach and growth, call maniacal operating of sales, to are in long-term a attraction expansion opportunity space, the shareholders

Operator

our you. Alex Slagle We’ll first from Jefferies. Thank take from [Operator Instructions] question

Alex Slagle

Hey guys. Thank you.

little store sort year quarter the started same cadence sales you what feels off on higher year could of you last day comparison, second prior [indiscernible]. XQ. looked on a the if wondered Just It than in like touch the like the

how of Just that out? played wanted to get an idea

Greg Levin

sales Yes, period. you year, and range. don’t generally last period April, X.X%, I Alex, we give finished June would May and each at I comps – each we had where by would X% last tell all in quarter comp But year’s obviously the second meaning

Alex Slagle

piece is how Okay. build X.X% growth picking growth to there it’s And different – that’s that case. in if maybe in growth add-ons, you the growth, you one some plan Whether terms in ticket how then even catering and versus in the is the of I about imagine versus up check to slow anything X% XXXX, XXXX? of moderating that did in it appetizer

Greg Trojan

this run think the environment in launch, long Well, that’s pork like platform. and to how the tri-tip we as turkey growth of item, prime to in a check and Look, this important, ago. this our utilize differentiated importantly quality idea is but is couple high other the around years is medium just rib a were

it So it – our a is better you promotional everyday balance the tuning of from we and will a as Brewhouse A quarter as got know our of be bit fine we are – help progressed. think Specials that low and in between that that the and dialed lot seeing spend really mix prices start perspective. but to check

those pretty important what these that’s low and mentioned, a particularly into, important that all, is there. an build to tapping I that grow or my large us, of competitively doesn’t again, is less you larger to comparing are way going of competitively. for But So said from market perspective with harm off-premise even much both reality, value our out base, get our a another an and perception, check tickets going, in catering for really some tool elements, us in again untapped important first offerings think in addition comparing we think time remarks, I but group from we can as to if part of take

Alex Slagle

you. Thank

Greg Trojan

You’re welcome.

Operator

to Brian Oppenheimer go Company. Bittner And Thank we’ll you. with next and

Michael Tamas

for thanks. Brian. This Mike is on Tamas Hi,

I bunch exact traffic I’m You’ve give don’t positive but expect curious, do to guidance to know drive talked on year? average here for and want full you a you the just this, about check

Greg Levin

do Greg that’s Well, what drive positive hey put want everything just place. to Levin. this always We and we Mike, is in guest we traffic;

might Kevin variety Mayer balance and want just his we team our as And differentiated one look want our to into right think are that traffic catering product to We it’s a as just and fact as like even pizza sirloin for ultimately there. use things that sirloin differentiated driving Trojan here just catering. something restaurants, year. bar frankly want about tri-tip product the such we to much we So people as whatever talk Greg a the talked initiatives. mentioned. pasta as do to to for be We we in later drive to you have at a like this average marketing, well check. of from things to menu have always a our some continue – think initiatives products we we to around the traffic And do I business that as drive have drive as the bar traffic, drive about in to could and we that unique able is The goal tri-tip

another to lot our because of we sales, within do is both party All well restaurants, we special within use technically of catering. which gives us grow items our restaurants, large those traffic can as that a as and events channel

an we traffic, we environment, drive right with sense But sure in everything well understand do as at as our inflationary how I your get can regards make is average business. look check we we how makes the this a combination to question as well. So, now, of –

Michael Tamas

one other Great, quick one. thanks. And just

slow doing slow bit, how you everyday You to is is for few see the pivot little the next to of down quarter, something discounting, discounts? guys talked about would then the back discounting year, plan more on And you you it to if value reducing that versus about or the rest or first quarters? start toward industry that the sales that a do you your in can something think Thanks. starts some doing or more

Greg Trojan

end – look at of on good value flat We Brewhouse reducing we from kind to since basis. make day of to generated at we from same it see discounting the last frequency year the year of as dollar ways. general, a little say, a the on of our particularly in that had basis I’d bit our happen. Yes, loyalty this look both Specials deal adjustments or meaning the made a tailwind And we benefit last that depth I – year, think and adjustments, program and of don’t slightly the our emphasizing we a to lot we’ll loyalty, positive. a

is things week, the adjust we there. and what of those mentioned how every market So, to a our what one look yes, the of all it and that see day bottom as about every line the But at is, on. back maybe flat goal you we’ll positive. shape like. depends half bit to goes I talk mentioned, almost year it as be year It’s we on the conditions up looks But the in general,

Michael Tamas

guys. Thanks Great.

Greg Trojan

You are welcome.

Operator

our from question Thank come you. Will Stephens. will next And with Slabaugh

Will Slabaugh

and Yes. regard versus thoughts first growth us I update you else had an could have delivery give if on may sense. on to question a thinker you delivery. with or if quarters, updated strategy it any the prior Thanks have turned either mentality that partners in guys. quarter Wonder or how whatever there, may broader make

Greg Trojan

Yes, we quarter. an total reached think and our well, as in high off-premise I well growth I did as all-time I mentioned, – – look, too, Greg the

the half a grow and to as of right. the little a So, and year, it’s continuing you know, rates bit lap back obviously ago we’re of previous growth significant from year to starting

we at all. we’re actually So really takeout. seeing growth not the – perspective, And seeing are slowed really some momentum down much growth even rate from a in

calls, well a initially the as that in cannibalized little by in in helping delivery; and we’re off-premise couple our of which now our takeout is seeing last mentioned as slightly I’ve leveling think growth I some growth saw we bit. off check started well, takeout

describe why untapped you of many So for as element really menu of order is we’ve just it – our restaurants. about, it much large hear we’re both and been for and easier seamless, time general that’s and lot business people of process relates this and just in spending side what us very – to party online to lot aren’t catering-posed understand think why lot how it off-premise the more I making as it. items, fact to that’s BJ’s, as the in a we that kind reconfiguring And so make as talking a that a people

to you partners So continue our we’re mentioned there, worked a third-party than driving and the better know not then that effectively other but has not I and between do are and lot there. at growth pretty correlation I in – do a lot last with – – think at keeping around on-premise we joint thinking we collaborating – of getting our we the changed more marketing we’ve least, off-premise haven’t of changed system think throughout We emphasis our our see that’s we to last regularly and And or understanding to is, – think – sales anything all you number question keeping not on-premise what’s on and business. between in and don’t strategically I the at traffic our that’s view has we two. our analysis our worked your and least our off-premise to still but off-premise I correlation changed momentum hasn’t continue to – going. the updated no restaurants look And comparable our incrementality terms of the

Will Slabaugh

server more first the one the things for just equipment beverage also you you’ve mentioned in handhelds it’s Can update an on you you’re press terms if – question know thanks modestly throughput in the shelves could, a talked release on are doing? and in I that. technology. question then lightly And I I’m technology front-of-house us past give around it, broader Got some think, those about benefiting, that of installing. I well. as and curious, how

of equipment around [indiscernible] efficiency talked You the around and general what just et I there like in the the that opportunities cetera. of, sort What and of in sort opportunity that? other technology is past are guess looks

Greg Trojan

important us. summary, a of thanks the you I’ll Well it’s try for broad to give asking technology. that’s big that because set to but really question, –

busyness to that our of we our helps is as guest perspective still table the think they a really advantage around interactivity like where is And experience they’ve program highlight what mentioned. team right those, member, our opportunities, our a take perspective, really earned. are that the if specifically, we experience, provide handhelds Particularly which then and handheld that the enhanced happy people experience loyalty of we is we’re have the is them status you point terms redemption of want – from particularly to to person ability given if greatly members is important said restaurants. offers with item In and first both front-of-house their of from improved, on speed, you kind the a

the little cost-effective along technology. of But making technology and learning a there. of more long-term thing way, frankly a are there software look, pioneering positives the maintenance is the the made than we’ve of has that of of tested and struggled costly as and elements higher cost down around we those screens help that of there. are knocking is other the of, when partners mention But all Greg terms that – real broken we’re bit those bit we’re think been a it So visibility The in with sight. bit when lot a as in or we’re it – a confident I less and with hardware to was bit, technology the medium those

fact So handheld we’re the we’ve very the with gone happy that in direction.

but I of into are we folks. get and here, other spending around a terms detail our our In technology, group time IT won’t of lot operations

to access. and So to making it mobile menu pay easier our make access easier

hurdles – the – quite now the most found the our requirement a of – itself. while is to with we has for app around One for rates been know of functionality adoption the as higher download you have to app

And your our what right to going – looking without is be having carrying or in – around to so testing some we’re phone. capabilities ordering mobile have your handheld mobile in paying around, at app

in still are very we’ll dining from So, server our but interested personable that yes, perspective. making where us, experience we see takes a very

dining cetera, of We’re the get we second well, et specific experience, quickly view reorder beer the and seamless the ways do more paying a a are of part as not Pizookie, there fundamentals taking or interested technology but in make the to real think we we as a transaction people over lot some more can opportunities.

that to There to that I restaurants what the of technology our terms I there’s – of. off members communication are continue back-of-house give technology in we our, orders and in a we’re here, of our the are some some management as using our think we good our team the thought refine just fundamental board, most have well leverage starting think the boards things to given systems of those member of kitchen still our in a we’re back house. important. base call, to we are to which team – aspect But big whole

the probably frontier. that’s So, next

Will Slabaugh

the all Great. for color. Thanks

Greg Trojan

Welcome.

Operator

Thank Mary from go next Hodes to And Baird. you. we’ll

Mary Hodes

Good and the think weather able On for then a the quantify as see to the you you afternoon. Easter did QX, shift, saw the taking from that would quantify if well? questions. headwind you you just from can be during quarter Thanks headwind that you

Greg Levin

that talked call. Yes, the on Mary, about QX we

I think in it’s somewhere about… neighborhood the

Greg Trojan

talking in think you XQ. you’re – I mentioned

Greg Levin

our right. where XXX the that seeing around some on time. the talked points we so But QX, about or at we was we and weather call, are basis thought QX of

were XX through few a we somewhere came quarter, kind weather subsequent. thinking So, some where had and about in the in still neighborhood points, that the that it’s there are after conditions basis probably up weeks finish about call, of of we’ve

Greg Trojan

QX whatever. can’t in other and hurricanes The rain the just events just the discrete, it’s result some didn’t weather a amount – to They per closing said was emphasize, this want less because about and I California events thing other call, restaurant it really we and cold to unlike – se. restaurants that like hard in weather because quantify, were very of think closure like were in of or I

tough precision looking guess that a quantify, then. it’s those that lot back was impacts. But a just to there's our when we're at best know of So not little

Mary Hodes

can elaborate And as quarter-to-date difficult more comparisons. on check? quarters how just just average of down from And you. traffic your ago degree Thank then year you in then, in trend, traffic of cycle terms break on you in upcoming maybe the contribution confidence Understood. that driving versus looks mid-X% range

Greg Levin

had side this that that get discounting, year traffic to see for of the through we trends all days would Easter therefore the amount we're where positive we national has trying negative I It's today Pizookie negative we from to net weekend that a to to we deep drove the not pizza time, of details We as or we six points tend standpoint. because day But in over we're and worth think gave perspective. been quarters. as where the been It's where a on that mentioned, there, saw place. that the be of Then it. knowing a last, get our normalized, I to of in bit traffic guess, of we net Last on this a meaning away I we'll I in a so deep as from think the from we get was a traffic basis in – over rolled – earlier that and regards worth traffic was are we with decided do lot hard more it XXX things. XXXX, was over probably do have a there to away dish – us, are slow year over today Easter day. at didn't little our it, deep that – dish pizza and day days,

Mary Hodes

thinking you, the encouraging is you for how then any openings of stage? some about growth or provide up prepared on how on the sales outlook, on the lastly for at XXXX commentary to number this update the the openings volumes for pipeline in unit Thank there the remarks. Is there's and recent shaping XXXX might be

Greg Trojan

just it's early lot quality for us. sites from think year the present Greg Lynds us too I the to that out continue of perspective. for the his of and we dial kind there a see are opportunities in I building team in numbers and mean of a pipeline to

the the limitation quality again, and more right in be in isn't ability se, to it's and going side per to capital going with sites So up there. the place human to on open folks restaurants be our our

So, top like than comment yes, general make to less. kind we're of pleased we're business, continue we from line if we'd particularly the I'd openings seeing, very only as do with in more and the our the perspective, momentum to see is, a rather

Mary Hodes

taking for questions. you Thank good. the Sounds

Greg Trojan

You're welcome.

Operator

Zackfia Blair. And go next we'll Sharon to William with

Unidentified Analyst

as expect of drive within mix? to have And follow-up guys positive I'm tougher I This you lap is Julie if those second that for mix you turn would kind positive Shodh [ph] territory a comparisons? that. back to to wondering quarter what into on you the for that Sharon. anticipate

Greg Levin

regards really business in Daily that done things to that it, look see of Specials some we and of And up Ultimately, in we've overall, when they pizza little things of it's then, XX% $X and add grow, kind it so tri-tips at to the And whether two XXXX offset Julie, we mix. drive Monday, our into success there. a kind things of more keep these, some business that amazes to some with something you're other sirloin on we're therefore, drive around such place off to strong that continue Tuesday our adding traffic our that Brewhouse the forth. our and we have see right and the out years that the continued to other now large put Pizookie of Daily think talked value other going we've of plus There's of Specials. to about it tend to in in is of doing side bit. to a flattish tri-tip me, we that's I the lot continue Brewhouse a menu to

restaurants the those which receptive Daily programs, will brought Specials, about, to a that a and bit combination and changes of for really think mix is help we're little there. with our on seeing the talked menu X% I to Brewhouse pricing we working success XXXX. average into X.X% But check As we're traffic to mix that the and

Unidentified Analyst

you. Thank Great.

Operator

next hear from we'll Jon Fargo, And Wells Tower. from

Jon Tower

Great. Thanks.

Just two me. from questions

upgrades. First, I wondering bit little dive if was more a the could you into kitchen

platforms June. catering on first might the off-premise with help that of the the focus in especially new That's kind push how upgrades the business, off the quickly Specifically, address growing one. equipment

Greg Levin

Kitchen we separate regards a Systems off-premise on not are The – that This or place initiative necessarily hey, directly to The are the to Greg GSKS Levin. actually in frankly have Jon. putting related is in Standard off-premise. Gold

Some of simple. very that is

I putting up so the up of it food ahead in of the packed time. have shelves off-premise can we think talked behind some we ahead might and past about line time have person, of

so to we'll of waiting things, We to cooked what if walk are and putting forward. individual restaurant where items still take what off-premise know – being side that move have and our some system that on they're an into when technology out finished been into is, our you order it's

side earlier, As trying things as Greg of make and I our our guest, restaurant, better. bit you're you we're a guess mentioned a when the payment – members to little coming Trojan and the letting team to

at as the We're in the the prep, text a organize restaurant et cetera allow So, a to making kitchen, arrive like execution Trojan off-premise sending cooked, from us being to know orders are restaurant, we've mentioned, that. in you to back, on and at working GSKS to when your that you're geo-fencing you side kitchen how day using got lot the regards to working Greg The standpoint. day about cook on really we, that that regards easier. is we things

Greg Trojan

are kitchen our mentioned, and and to we Greg that that the – where has been we're our that I'd which house the is kitchens dealing they terminals assembling The orders stage are are linked be kitchen but time, occur off-premise folks And same are and not the dealing kind the ask we sounds improvement. adding of assembly to in system. again only simple, space our within it to volumes at changing big – Greg a the front installing add takeout management assembled to are storage in in of other for thing and area with

of the in and of see kitchen the sides equation off-premise in both orders. particular areas can the the status takeout So

Jon Tower

for clearly back Thanks the first driving back bounced your clarity they were loyalty, bit, and promotions to drive the going card in promotion, in Obviously you. little it on but that to expense to gift seemed check came of [indiscernible] a – then the just bonuses the your backs. quarter traffic then check. the some thank promotion Okay, that the that. down you And stores, successful at but the bounce thank

balance but these the So levers use that will of don't in growth growth, potentially plan kind ensure how not to the to on, X% something that be X.X% future, that you because you're diving that in focused degrading that's obviously you into check you the mind also great. necessarily so can you're discuss future, if

Greg Trojan

have Those are deep Jon, think them, have some season of both as gifting – June there around as still looking period reasons. those here on terms and you obvious good a being we plans, be without in we'll testing won't some details in of that the May But how discounting. and are we that are you of change compelling, couple doing we on ideas. alternatives recall. – the a for We're I We at touched actually some into get don't know will

So terms you yes, we’re that, same – but bit the a we're we seasonally. how in are – that moderate more on way on you come to of thinking

Greg Levin

the to say we programs think expired tried it were as one our quarter, in our in the actually remarks, is throughout those earlier I improved quarter. Jon, point, formal so even or other up traffic used

normalized discount, our look a at gives user we heavy those started this give things just as traffic the this the necessarily segmentation, incent all $X got expire, part of believe segmentation are his started to more got call we year we it discounting is users which often. into at not, not of a, those programs come So B.J's use and Kevin we the there's that to which that them different. But or with more heavy some offering something discounting we there. a momentum. a or to that user gift better, is in some a card and a It heavy the year driving does incent him realized to looking lot it more the thought let's as how loyalty do is our degree, that out big of team analysis how And initiative into gee, there off that's

during and Our the of in discounting. quarter, one-to-one this wasn't the other it kind case it suffer did necessarily improved in traffic but fact, of not things, because weather to and tied improved

Jon Tower

you very Right, much. cool. Appreciate Thank it. guys

Greg Levin

Welcome.

Operator

next And go you. with Group. Thank Anderson Maxim to Stephen we'll

Stephen Anderson

any couple percentage the and I last share the purchases? afternoon. wanted beverage off-premise to regard Good seen beverage you the Have of with zero-in change alcoholic of purchase in quarters on your certainly, sales. alcohol to the with in instance your increase

Greg Trojan

are in the than in-restaurant. have obviously total, We levels lower incidence of our off-premise much because

which decline – we it, you're global to per see look on there. going is see a going at if So, how some checks, yes, asking we're XXX we're to

Stephen Anderson

by And quantify Okay. the that? can way, you

Greg Trojan

alcohol by to we'd it's end that normally day, it actually is We that the at about the in a is the way we're in some this been permitted But can. in check off-premise about. biggest third-party we the still long-term certain geographic share lower total is in have doing But data and Stephen. bit offerings large way. But in more talked check convenient. that to one we attack on-premise is of baby is can opportunity business and party we're at general product that of we've an But here. the medium and business grow the that's not check the to But areas of in looking than days that our delivery where making how grow talking on-premise, think reasons alcohol why we –

Stephen Anderson

Thank you.

Greg Trojan

Welcome.

Operator

question time more with we'll Securities. DiFrisco for And have from Guggenheim Matt one

Matt DiFrisco

Thank you.

questions. of couple bookkeeping a had Just

comp, mid-X% was it. had quantified in Easter from follow-up, XXX but with so. about it points First, you quarter-to-date sounds think I that a said the basis like said then or you Easter And

appears? So, rate X.X% Easter so run or post I guess, around a is normalized it

Greg Levin

what had but that to a now Matt, weeks I in. ball, we I a backlog. wish I we've said. God we three three that's preface crystal That's weeks seen trend that, always That’s again have don't in. the

Matt DiFrisco

to they they stores are Ohio of how And then Valley the is are of portfolio because the is pretty Northeast seeing you a volumes? comp, of disparity store regionally comping? good and comping – with there last have openings – years equally the openings struggling or some higher, new those couple or they big or open or the in us any the okay. Excellent, Can comping you you're are up give those color

Greg Trojan

general – In a it's good question.

that mentioned, in markets, all said first I markets outside really last core the The but opening worth of think Matt – I I traditional XX emphasizing as our is point months anyway. of the restaurants we're is,

XX seeing basis meaningful not points time. all, points any impact certain we're cannibalization we So years point of I cannibalization where points at XX meaningfully to in at a few ago basis think could certainly to

we So mid-Atlantic – years nice seeing helping and in markets expanding at that are that those the few this been some for us Ohio now. now and is we've a

balance in to have areas, some in every nice coming positive say, headed are comps geographic it's – We comps where I that comping a positive in from So seeing areas, comp would some had to newer those Right? those new negatively. that's curve, that's and so seeing, mid-Atlantic was into seeing we – again see. typical such periods the honeymoon where before their where these in against we're cumulatively markets, – the group restaurants new we're almost the restaurant good

Greg Levin

as I come it's isn’t XX Matt, is restaurants months in at there. Yes, our comp think and sales been newer curve same always still that

around go is standpoint. positive. widen XX months You they summer to months have start At to that XX the from out honeymoon and

in It doesn't three of period well. in year as the a the is or comping driving or better or through Mid-Atlantic Virginia business. from a Texas means awareness it four and that Last honeymoon Maryland, an as its across California into Greg within we're our areas. sales its it's some than when So, board, a comp those Virginia, the look additional like mean into those curve areas and expect any areas and we the Arizona. normal now comp that Mid-Atlantic come just area, Maryland settling was some now and saying, years other those we I But spent that's it's

Matt DiFrisco

obviously balanced carry Understood. that be a just to And been lot of is which or occasion very over growth of through a growth the board? years last that's daypart lunch numerous somewhat it the more, there's quick a guess on of seeing from going an was still to yours. Are – stronger big couple the seems the casuals you comp I side dinner, that dayparts, after the on daypart historically meal across coming the then from

Greg Trojan

nights about, seeing dinner No, we've you mean, dinner were late mid-afternoon we're lunch. stronger and been what Matt, there talking are what still where – than I describing

the And and something that's obvious careful – we've strengthen we're those giving But that thought for as the profitable got – is that an how us, lunch dayparts. to so, opportunity more to given reasons yes, some relative again, daypart other to we still sales. be the for dinner add-on approach

we have at some lunch. there So to – traffic drive but opportunities some

Matt DiFrisco

Excellent, so you thank much.

Greg Levin

Welcome.

Greg Trojan

Welcome

Operator

for conference call. and that And gentlemen, Ladies concludes today's all you thank joining.

Greg Levin

Thank you.

Greg Trojan

you. Thank

BJ's Restaurants (BJRI) 25 Apr 192019 Q1 Earnings call transcript