BJRI - Earnings call transcript Q1 2021

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Operator

Good day and welcome to the BJ’s Restaurants, Inc.

First Quarter 2021 Earnings Release and Conference Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Greg Trojan, Chief Executive Officer. Please go ahead, sir.

Greg Trojan

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

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

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

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

ahead. go Rana, So,

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

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

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

Greg Trojan

accelerated and business our key our certain and our restrictions all outdoor California, our quarter XXXX, of benefit positive number XX,XXX, markets, sales with report on-premise dining throughout of propelled weekly to momentum late sales dine guests restrictions from February, February of the in dining improving open we accelerated return Thanks was that place $XX,XXX by In limited quarter are in weekly sales indoors, in and banned, have with allowed to remained indoor continued sales in very the to in patios. The we where XX,XXX, even to as pleased growth allowing increasing pace our capacity per further guests states I'm restaurants, averaging January. patios March, a as both in XX% to from with the weekly eager capacity. average Rana. operate recovery. our states albeit sales first including began were seating the as to increase dining rose outdoor In seating restaurants, our January, California loosened including strict California, XXX sales and a to average steady continuing restaurant of of XX where room began their

in the guests continue that Our our sales deliver BJ's highlighting I span gold appreciation increased to and the our the of teams be by environment. of standard concept XX% prouder rapidly couldn't in quarter, service evolving of this

more our We in restaurant than weekly a sales April with continue to positive see averaging week. per XXX,XXX momentum now

X% sales basis, within restaurant Additionally, are comparable our levels. sales April of a now on XXXX

seating to hurdles XX% in improving, in encouraging late you drive than In have is has only night one-third of outdoor Offsetting take late XXXX, still bar-centric night team's same and as challenged. operating restrictions, that was account still sales given when and quite lags fact, which sales traffic sales. higher ability remains weeks levels our now ongoing into dining business, the the capacity, while been off-premise restaurants more that XXXX our approximately of our than we're our

installed to if allowed our dining in currently outdoor higher seating weather guests a spaces dining, are we've to to effective capacity. dining, restaurants, XX% outdoor are temporary our more still Regarding patio open rooms capacity, prefer especially as than third Even approximately our at continues seating adding some of which the improve.

Father's birthday seeing other and and a anticipate for restaurants spaces graduation these busy events these Mother's time Day, entering continue coming We quarter. seats outdoor serve throughout the even special are in us book well season the And to with parties we're guests for celebrations. such Day, our months, additional will and as

held as to begun Next, our have sales delivery and well, even has recover. up extremely takeout on-premise dining

Our as maintained restaurant and the to-date in XX,XXX sales quarter per more average was and XX,XXX first April. off-premise weekly than in more than

and guests our in during the their service the homes, BJ's connected delivery pandemic, including with off-premise to introduced more takeout as meals, than we popular Our rooms. the returning double pre-COVID sales that convenience innovation our expanded to and We're continue levels very our guests. encouraged remain dining family of curbside advantage take of enjoying remained our also while

habits all the sales, in continue increased remain channels. forward. XXXX, demonstrating All going will during pleased the as that our see strong both we're of quarter to told, the formed sales and across fourth now convenience momentum to such these our consumer levels of We believe higher in-restaurant very off-premise strong which the than pandemic,

service of more benefited delivering in balanced results advantages. our our which to the continue metrics. we into tremendous a and parts menu, execution back year, see to every than our NPS one Last took gold of competitive our while our of is maintaining And As BJ's level streamlining variety, visit. key our which welcome restaurants, nothing is approach we we on critical standard each guests more

reached estimate service train mark kitchen to fact, and recover in strong both that our team QX. gold recruit hiring restaurant plus restaurant another We additional members. recommended is the restaurant hiring on and leaders over ramp restaurant team we openings. like talented up deliver opening prioritized X,XXX future our XXX and Club, hospitality sales several house launched key all-time more In fuel standing progress our majority our of we and and of virtual the the continuing NPS growth members. sales called score our volumes in basis, key we a coming The believe to QX, another compromise not be dine-in our where In front previous our to our in will hourly Slo in team return sales standard execution on high sustainable we as criteria managers to to pre-COVID members key Roast. retaining as our We've long today California seek to are we need to have continued Beer beating These than drivers critical our notable levels we Club managers. to also new brand always and openings will years quarters that focused restaurants Much philosophy quality on of as initiatives our March, our made Beer and only we the best restaurants. set new quantity, including

our $X as a include and a members free $XX where months reminder, pizookie, pizza, Beer team, and exclusive growler for perks a two program as our a Club subscription brewery that free unique from is well appetizer, As to pay beers go. large refills two every

driving to engagement with California it the early both days in by in program of continue While we're the as and the we launch, incremental is and profits. broader encouraged be the still visits interest guests

we approximately are see updates month, as could we Florida. progress our laws this beyond enable in and Earlier Club of test our Looking and California brand to certain us XX Roast such other in offer to California, encouraged large of states Texas expanded Texas. virtual in liquor the Slo to to that Beer restaurants markets the

we're survey this supports brand We research a level of use points can optimize results to determine optimism from earlier now sales testing price the to menu various that the to tier scores satisfaction Our high make profits. flourish top alongside structure and show incrementality and best learnings our guests which adjustments to testing our pricing and BJ's. and

remain to under mentioning outset of open at coming XX quarter discussion in restaurant openings. Merrillville, our second Lansing, And be Indiana, rollout prospects the our and broader few openings on track new construction located growth in the would pandemic. Michigan, in the already our expect were be We establish to plan We XXX a the to which position without complete months. a no of in

will restaurant the in Monday, location this April quarter. Virginia third we Richmond, our Merrillville reopen XXth open Our to and also intend

were least Our pipeline during ability an on as BJ's Centre. and for standing we opportunity across for build and and executed Reflecting XXX to a the These changing implement testing our more months our many during as many long and restaurants business at remain and with at amazed to we a to our beyond to operating XXXX locations about evaluated optimistic our continues of rigorous restaurants. at on Support ingenuity unprecedented our XX domestic our tradition the of to remain in supercharged move path pandemic teams system. the dexterity efforts future environment. in opportunities has continue such rapidly I changes of pandemic, optimize a on new an quickly incredibly restaurant we

from with the build cross our team learnings using key recent select of areas our are test stronger Centre, and to innovation functional restaurants. even in Support We a restaurant an capability most work innovative

the have guest I capabilities. how past which can top bolstered approach bolstered consumer powerful believe of learn and research best our priority to innings, our are be will but forward. identify going early So, performance the in our We're in -- solutions faster a our and on next iterating and testing needs filter enhanced to process we Also, outsized ability through we still with even refine quickly innovation opportunities. driver year, expanded

gratitude to Finally, moment I'd share team a to take our to members. immense restaurant my like

only see us surveys of back the teams our and can enjoying sets apart. which our at wouldn't welcome more world beyond possible execution, We class experience our of and BJ's that ever, than to their is going business. hard are the to above best possible standard guests in so gold work dining consumer which been results have guests dedication the Our many team with through restaurants members without with

detailed over to current more provide let me trends. Greg? quarter now it So, the turn Greg and from update to

Greg Levin

Thanks Greg.

especially the patios two with Commission weeks throughout restrictions dining Securities in January in of as eased outdoor March, last BJ's $XXX,XXX Exchange increased quarter, we per started February, than indoor as then Greg greater in regarding we As our this March where limitations. by dictated followed ever-changing weekly with sales and impressively associated with sales California in with local where As only our forward-looking weekly the the and the finished off-premise today national, average capacity restrictions. state, as the regulations commentary by we outlined, and with in remember largely filings and commentary to subject to QX Please statements just are uncertainties risks reflects and and be continue my room dining discussed is restrictions sales on QX restaurant. Therefore,

The during quarter. restaurant $XX.X% revenues level operating restaurant XX% a a and dining and to as sales on past in our improved $X.X to $X.XX January productively million to EBITDA certain for business, in negative XX% diluted finally, costs QX allowed we $XXX.X in fixed XXXX negative adjusted compared of this quarter loss comparable room share margin GAAP and and March. negative of Total Our net for fiscal per sequentially the reported positive us well February, of the basis. easing variable from were in million loss $XX.X net and restrictions of of million leverage resulting XX%

of year's the at basis Specifically, first driven prior cheese which kitchen by room last in menu from in came was and came XX.X% quarter, dining overall allowed of down points costs the sales the XXX cost sales than for in ago, leverage was when the cost a XX COVID labor to beginning. QX reducing points with our just and that in Labor to at primarily and beginning which continuing drive at our including us quarter. of in off-premise we mix were compared in year decreases basis was quarter. our came year. to XX.X% Sequentially sales restrictions made lower Adjustments COVID sales and line

basis XX.X% our labor weekly XXXX While, was difficult XXXX XXX,XXX only compare to when XX% last sales this past XX to our points is XX,XXX compared of higher it to average in higher QX at quarter. labor year, is

weekly a the in level our the staffing continuing based getting the in menu, Right restrictions at really expected. continued I leverage ahead adjustments is results, capacity sales are we from the ease. are regarding increase to the mentioned of sales talented slightly management sales, broad weekly Our the smaller, our off-premise yet and ability needed operate of very our productivity just of sales a to as still levels people restaurants our strength changes now, hire labor on result

to for our costs is gold service decrease to and X% that productively mentioned, about $XX inclusive retaining representing and growth. G&A costs gold food our including of million was for us generated volumes Operating continuing over standard occupancy Greg were about members. was restaurant for quarter $XX.X which hourly temporary to last sales hospitality restaurant talented is Operating Great which our in operating as occupancy the and the levels, As standard compared hiring manage of X.X service percentage of week team X.X% the enables sales volume of quarter, was operating patios, and a our for for managers million. quarter. at levels over over people recover expenses our million Trojan to revenue as the costs deliver delivering how labor we year, QX, beyond contribute grow operating of occupancy per XX.X% to averaged for sales bottom-line sales key XX,XXX prior a marketing.

to We and $XX compared the approximately last than XXXX for booked to G&A which less XXXX, incentive due its in COVID $XXX,XXX, targeting for more on $X impact are still compensation year. million million business of than includes

in million includes G&A million only to to XXXX. $X compared compensation also related equity Our budget $X

As results, compensation of vary. may always, the $X depending on million our incentive

our in with of a of in million turning and resulted another bottom-line sheet, depending the additional to that $XX raised balance and the is further sales debt $XX opportunistically the productivity on million million an sheet, million balance debt aggressively by our by to by my cash to flow, beginning to balance varying plan regulators. sales pursue $X reduce previously cash very $XX our equity to us expansion, balance governed improving our and with at down an and At we and the the to our new as we prepared million recover, while on state sheet sales in Shifting $XXX.X January, restaurant our as $XX.X and With subsequent sales Now, million, quarter combined line reported, quarter, the funded further investing imposed generating finishing approximately of on QX have capital current credit end, we continuing additional we now more of are cash million. sales per than week. we $XX levels, to pay and capacity the I But of continued driving environment. necessary sales be said capital local today, strong initiatives. and remarks, to limitations

seen local of and have to capacity, states continue state easing many jurisdictions restrictions. While ease their room the we dining rollback some

the XX% to practice near-term. distancing XX% follow and to maintaining guests restrictions, For example, continue first continue restaurants our despite from therefore, of of first, diamond CDC social reduced and safety and eliminating to feet XX% in all around our our members certain The have to of capacity team counties recently. capacity in Furthermore, the allowed both Oregon we operate with some XX% total our will guidelines six restaurants. cap safety in to Washington

strength sales use each to temporary and the sales continued off-premise until of of eliminated. all sequentially opportunity we our have patios, are outdoor believe However, restrictions with quarter we growing continue the the our

as our April. sales dining were so our ability pre-COVID which more restaurant well than California a led we This in I to on a weekly levels. weekly restrictions we March, to comparing a recovery late for maintain restaurant April. far of sales of dining in press off-premise room equates our As per weeks the today, average in three down current first noted release $XXX,XXX around and double our of when as the by are to both sales approximately X% sales, comparable basis was room XXXX encouraged by sales eased,

which regard back we cost to can inflation anticipate sales with belief between X% sales stronger the one year. rest further and the happen capacities forward, other our will some dining graduations food bound spread commodity will in manufacturers Americans hopeful P&L, up in safely chain not of the distancing. Day, With of and ramp increased celebrating and about modest now the we supply range the Going this freight coming will of of number guests Father's are commodities COVID. of Mother's we growing and this with benefit for the This the XX% of a expect the months, the XX%-plus are generally costs year, X.X% of sales. QX us, up in to and reduce feet as will be the middle room the for we distributors range restaurant second XX% quarter. we seasonally be sometime seeing sales all historically vaccinated right until current as six We're which returned At locked with second level, but mid is until Day, more social eliminate slightly the of as for increases time, the have versus challenges half

While as more estimate percent need and noted, basis, to sales we recruit XXX will house and sustaining Greg historical restaurant an more levels, X,XXX a a Trojan managers. pre-COVID team training order of kitchen another front to of and that to on back as train is sales labor members we plus returned than levels

QX. an this put it of for some in our our upward pressure as long-term, While labor on business sales the a will is percent compared investment to

and people therefore food, equity be million aspect for compared we drive in million, to new business million the to hiring up increase hospitality sales. managers which in profitability. as sales anticipating continue high spend $XX which driving about range of investment $X.X to will ramp the $X.X about QX I'm compensation are We and include of in long-term our and of our precise and our execution touch in business G&A including of service, every growth,

of for And combined the guests and concept, XX.X pandemic with the quarter. and to this be the know but discussed and second not to work from position and strong BJ's shares Additionally, the exceptional the emerge also clearly level profitability strength today, pre-COVID our grow I'm today excel only range outstanding expecting hospitality finally, trends our quality, levels. million of attractiveness the opportunity volumes our exceeding members love. the and and BJ's to of growing sales sales the in diluted to with team positive highlight

continue operating Our guest us and Club we driving new new opportunistically normal to as next Beer enter like growth solid to research. reaccelerate initiatives enables beginning balance in a sheet our and additional restaurant environment year sales investing

believe to to BJ's XXX our that continue sales concept you flows, questions. higher your support today We the the restaurant balance can domestically, that momentum, to Operator? readily and and least Thank can and our open your sheet we'll call the grow at an now expansion for program. combination in restaurants cash of acceleration up strong time

Operator

Instructions] will of And [Operator question Brian you. Oppenheimer. go to Thank we first our Bittner from

Brian Bittner

you to Is back now you quick late know the quickly? still a check you're Greg, in that you recovery specific thus their they Can your more stores at Anything currently remarks off-prem. outperforming levels Thank very else Good April out color that's far experienced the than and your you Is get higher that. can prepared in just one-third would cohort averages any seeing volumes give night -- you Congratulations break the capacity coming high your stores, more in said this helpful of a sure be afternoon. related sales and lot trending commonalities helpful. have you. But higher? the of maybe in seating business I'm on have other on are XXXX. be XXXX this would business. group higher stores can of

Greg Levin

have obviously, that to third are three of areas restrictions. see April. we great loose Yes, either what Brian, a those in Generally, that's positive think a restaurants And, I weeks pretty it's have is into our nice question. comping yes,

to like comping So, large side capacities back or well your there's external that in few are restaurants that's temporary on exterior patios. really a on given greater late that there in And and are obviously positive nice night some a these the job locations, have California point areas. here -- little as of right in us are the have pretty that's generally some then other ability And of in to that come bit have the those now done have and been those some we patios, off-premise. then

off-premise very Arizona, late the that. that broad got to some been said, as on honestly, there's very patio and there's there, sales, California it's of holding well. it's a they're Like in there's night. So, in it's And they've -- the Texas geographic. mixed I It's combination there,

Greg Trojan

thing to -- it's we some with Brian, there even have all still social this, we're I'd thing six think, just eliminated still we're Greg operating are virtually mentioned is restrictions, the right states other because add operating the frankly, though feet of distancing, that do.

where restaurant adhering about So, very social to be with capacity caps might still, XX%. it in which, even we're distancing, capacity by you our varies general, restaurants layout, envisioning loose at restrictions,

that information context and So, just give as to you you comps. background give positive of those kinds

Brian Bittner

as No, follow-up, just some margins you've your go Greg, have you to talked as even about past or restore, that. thank path you better. getting could a calls earnings sales color my about to levels, back XXXX given for in where And

XXXX I looking that and But talk sitting like mean, imminent. these about thinking hire here margins about that sales how against need can train that to it's scenario XXX% on are in Now, clearly you to lot scenario, clearly recapture also volumes the levels, a all did improving update employees. you're now you us is closer operating you're these

recapture where think margins scenario? XXX% So, any on update go in you

Greg Levin

think a here, Yes, of it's Brian. bit a two-part question I little

makes actually there's more I to think look cost it going at it. if per members se, part, little and bring but and level, XXX% the you're that that And training need start as at do to I challenging, get to I sales shorter in first business. in a think our the I term the those in going bit in be team -- recover, that to investment we're

our look opportunity we of internally Kevin valuable Secondly, about XXX%, I We've Beer volume Trojan that is sales XXX% XXX% business the and sales not Greg Club, to be think around it's of more much want for a this think we volume, before. guests. us. his our up leading importantly, initiatives And at the team think off-premise, we on ultimately, some where real and the by were I and so things as holding I to lot most that are that talked touched the on is,

gives that this think ultimately us and of going I bring average, XXX,XXX really above line. what dollars take And down there, to we historic to above opportunity bank. to kind the of when more kind we're was dollars we bottom-line that our to start is that trend sales sales weekly to bring take the down the

think I perspective, hearing us we I'm our that road per but the grow for that across industry need of We here opportunity I that get do to through sales there's hiring. week challenges the short-term dollars heading So, volumes. around the to more us. some restaurant of in have like coming from front as we

Brian Bittner

you. for update. the Thank Thanks

Greg Trojan

you. Thank

Operator

to next Barclays. go Bernstein of Jeffrey We'll

Jeffrey Bernstein

much. very well. as Two you Thank questions Great.

dining by was off-premise, as still you're said just encouraged weekly the just -- was one dining like then I will and how and XX% average go trying off-premise. restaurants I'm was helpful April the clarify, and rooms, that those follow-up. the once markets First, you figure sales two incrementality have think incremental to measure XXX,XXX looking reopening you to you dining that their been? of average have be reopen the XXX,XXX of an some was it weekly true, just and sales examples XXX,XXX If or in I on whether restaurant the how seems you're That are sales the think you'd to back rooms XXX% mentioned out

Greg Trojan

don't $XX,XXX a to and I of We about in face first And in we occurring dine-in significant week. Jeffrey, sales. very know correct, we're is mean, know the holding level on that from up you're like all, a is what ramp that that of micro-basis,

a some And some I've are rooms they but are back there's alternative, them right. be going takeout on that no when need, as filling dining that's quite time delivery maintained what which, pressure we're come So, occasions, for separate there's different to seeing. and

to rooms, have rooms -- we're a restaurants So, any constrained if consistent not that differential holding dining opened sense. disproportionate we're more it's less, very on seeing that volumes geographically, sales been like we're when dining in generally, were more makes it's than that seeing the

have the we're again, forward, to and We we've think holding off-premise product changes we sales is are to with menu. We've a out there, our and lot screaming variety that grow So, we product advantages values there's a what our it's think certainly of $XX,XXX off lot are to the encouraged made; our of of of a to we're think guests we done week. think a we grow that room in on that development intention going business. reacting so

Jeffrey Bernstein

you. Got Right.

it's of reverting those and XX% to are where are markets go even historical up your sales are currently So, in levels? back sales to total holding really

Greg Trojan

Correct.

Jeffrey Bernstein

in remarks. Got you. your because Again, my just it emphasized my follow-up in terms of labor, I guys know you prepared

XXX and two the but the said percentage the sales significantly for lower. the think was some a it's quite actually quarter, points years very yet as that you fact impressive, are of odd sales labor it basis saw I down all, of to you weekly ago, average First close

think labor will let permanent or you're is versus wondering, forecast back a savings rehiring be you and to do what you whether maybe can training, but we XQ for and labor coming savings near-term? what's in to come know the back? to trying I or for permanent in separate how you. what Thank XXXX, expecting is I'm what has So, don't much just sustainable share just or out

Greg Levin

about server year last to as in comes you seen just what it, to have we've because substantial that off-premise. amount if leverage the training in the you're a from where know sale of that, that more side versus don't to much the come open over I the Jeff, answer Yes, think that back And additional is we're of the regards. other expecting dining we than going that the rooms attaching be to

right not think I percentage two everything I are team prepared on move so be will to up in where They're making the now long-term sustainability, hours be they down we my going we'd say, amount sure at NPS And the what really tried in the they're remarks, labor and of scores up to we've to perspective right much So, to a a working staffing comes seems correct said, frankly, in things standpoint. in from our are timeframe. BJ's members regards like our shift, running labor. to ability there, direction, or the sales on we as that our the those be generally like to as QX as may models in of basically bit and those saw hold them to right versus traditional love little the working ahead right got from that

I number bit think this up the gets that a and over from year. down So, that standpoint labor little

I The the definitely restaurants. all We and we back kind with some past from your question, us and of really the the we as inflationary back here, there. in in menu, restaurants change labor well on things things part and people the some exact get out. number of moves where the and kitchen pressure or have We year, addressed what Jeff, area inflation hard are within prep of of forget into the kitchen that hours to as morning in the will the stay kitchen is of call our industry out about really those the the rest put house good both into that know but fighting in the that the positions we've we've and this that'll in said other standpoint and the that pulled the hours

of kind may labor So, hour dollar what the it's savings hard to be. rates versus quantify

Greg Trojan

think off-premise, saying higher just our say, labor to fixed than is settle earlier, overall And then going much we was as will pre-COVID. a at and -- also, just would level in it I volumes was sales Greg leverage

labor those lower the given So, content the and again as continuing are offsets there, wage what of are we see pressure inflation. to

Jeffrey Bernstein

invest the It's in fair a I sales you to think percentage the than heavily? mentioned higher as quarter would XX.X you've labor first near-term that the be in you of so say as think

Greg Levin

correct. That's

Greg Trojan

Exactly.

Greg Levin

we've we talked and about significantly Because really way lower weekly really But to I at I versus a before and changes, average. years labor When the ago, think with he in is really is, ability on on look think we off down that labor's it's do effective because get I the he management think off-premise two just does made this hourly that is breaks number the down our there. year-over-year. sales deleveraging going right-size, go break, -- a it going that of to labor

So, -- layer as or a little labor the hourly lever goes and that weekly to normal average get while management levels, should down bit up. back more labor that come sales can

out through think perspective, that bit there. So, in more can more short-term, offset, difficult. I be the is the a to if to I those pulls, pushes run the From we labor historical as work it's think little two just ability and going

Jeffrey Bernstein

you. Thank Understood.

Operator

Slagle our from go next Alex question we'll to And of Jefferies.

Alex Slagle

thanks. Hey,

like think do wanted Just certain execute what to consider something we sure just retain of to you conversation, at that else else need you you make you wages Or broadly? or able to do of? best thought you're might to hadn't like to to think kind maybe you on you to the that you mean follow-up whether do want need locations capacity that and to capping people need them? get more I raise what

Greg Trojan

a advantages three an our Alex et as question. particularly place there's particularly You culture also lot front on but we've what our volumes good of attractive And of even a to of a as hard work concept, good always We to high though cetera. it’s house, worked be, with about some the people well, place of seats had handling hired we're know, are -- hours pressure XXX success and financially, being mean, a we've we pressure and team takeout not think is in hiring to last curtail weeks, the had our or to I I have and rooms seeing dining have we -- operation this there, point. in So we people. out right?

operations it if but right the now. So, and of all, negotiate the -- and core to far, optimistic that's tougher. the right through be it's you will, going work right tougher -- just we'll so remain still It's optimistic, able place we're to creating conditions, it's to is we

Alex Slagle

volume mix you and question on restrictions period room expect and activity periods, remind do activity loosen the hard little the just that later a of as get and bar if hours you recently have like have more any traffic historical sense up pick And comfortable? the for sales a to bit or Okay. more, you and bar -- the hit is? more room how the looks And in shoulder what a the what people us

Greg Levin

so Yes, $XX,XXX night late is generally, business range. Alex, that somewhere the in to $XX,XXX

coming or night that I later sales, of a XX%, from week period. So, $XXX,XXX you're if take $XXX,XXX XX%, about getting,

it seen improve. slowly have We

And are again, people of going in start tournament, people out to into got on When largest where areas playing times checks reason continue a based other had decline on to decrease our that down, ease to more a business think I how stimulus look as keep the and NCAA through for I how are little play people -- I it's think think itself, still about different March, more. But -- a you have it's bit the if, day, at to comfortable. it's basis start gave compared vaccinations restrictions. that out pandemic venturing percentage to it, feeling year-over-year. the to about to came

the think much we'd this start at bound QX, more view, average then we to second now, why range QX rest as night. COVID side the the restaurant, right improvement think and are level it's the weekly meaning half, our there within still the a little we'll of be to are increased more our down. to cases is come vaccines That's only ability least on as and get the on and our sales until a So, see late where improvement bit to bit as I that probably softer but going little like they not capacity hopefully, through next get of I

Greg Trojan

-- as Now, usual than an or restaurants sales, demand operating by seeing And to we're see closing extending have the the in but closing we a bit. by of of is the back. usually hours we normal that's hour all markets. but our earlier hours, are started our to make open it's markets it, are about we're there. and big to want so going not way come some reminder, are have some We and we a hours that most to drive But part be to -- obviously, sure we so business where a enough volume is curtailed in we

Alex Slagle

All right.

Okay. Thank you.

Greg Trojan

Welcome.

Operator

we'll question go David Tarantino of from our next And to Baird.

David Tarantino

isolate, illustration? how Hi, that's And views a good stimulus an afternoon. about during what's I perhaps was seeing on period. impacting be wondering on capacity if April-to-date comment you tricky late much sales thing talk can March I might you trends checks and period in know this in that restaurants the the changes but to the happening your could as aren't that

Greg Trojan

There any really those. of aren't

tough. that's So,

Greg Levin

versus capacity to what the taking little but I seeing looser is the that Yes, is, we're tend been to that into trends Florida say similar break, to higher, volumes it's sales right Texas spring timeframe, had so that's maybe more March have just of in see seasonality we're is at looking that that and break spring the you California trends out have XXXX. a sales and standpoint. in are restrictions -- very now, that would changes, like the sales and business bit come the And

in from a see sales standpoint, increase those markets. we of existing lot So, that

look that late check, there kind little obviously think the the is XXXX vaccinations sales frankly, you prior with years more with probably put the bit, it. out bumped then kind come our And in of down numbers which weeks trends I the they I couple were, how think of and taking March there up. stimulus a tends put you a at, do that and were in of to

declined some So, significant from standpoint. feel that I gone But doesn't like has weeks it. definitely weeks benefit two that later to amount stimulus was three the later, have think some there it or and sales

positive generally up In -- in say sales with stayed levels or they've stayed stay -- their fact, I to regards probably

David Tarantino

And the context. I have just so Greg,

Sounds are late checks, March of they lot to into XXXX when I that or even those that early and also like you levels step-up of pre-stimulus close you were March to a guess, start to did happen? approaching XXXX, see see of markets being kind did that kind or April? Was

Greg Levin

prior and But year But Easter weekly that late of mid a that those March I more from those trends, kind of think came because saw that we good break, think saw kind to markets. tend we step-up March the that than weekly do meaning when they've of on checks consumers February, were average us, that be because to similar March, average they felt trend January as I and then that sales standpoint. hire on that we've held those we out spring think for trends of on tell sales going would trend for seen. into saw I same I and you of our a kind that's might is generally of late type sales patterns after of step-up as that kind late to dining about stimulus March, sales to

Greg Trojan

that and and check going question, out. we and have help like to more some consistent. a alcohol friends driver growth up is They're in I and glad ordering even driving per been biggest people so out that like party of family big haven't the a growth spending like out really of they like answer and or go and the out and be also another -- seen a stimulus I've that And business indirectly, that factor. more growth a just have in making they're are but are that number average like they're check we check, party are is might seen your let's people that capita, wasn't got has when very calling size, David, said, check our again solid is thing party people

going relates question with us out friends be glad to pretty it to seeing think with -- So, more be that's we're stimulus. be interesting human of no as that and it's that There's to I some family fundamental like, for it But helped. the find and behavior time. I

David Tarantino

helpful. Thank you. Very

Greg Trojan

Okay.

Operator

from to next question Miller we'll Sandler. Nicole of Piper our go And

Nicole Miller

afternoon. mean, I first of Good the hiring kind you you. it and imagine. I labor overwhelming want ask and as about sounds Thank can a little to

in this I question, BJ's jobs? some that? is hires to is in restaurant or teach you then employees how context the the how how many the familiar past, are the industry challenging kind of are with know do really space? you And do a of to have many And right-size many like, worked how super to well-versed there these but perspective So, field have or you in to today many

Greg Levin

the think speak. trying in I'm to one all through question, were so to different that questions Yes, that

-- we hourly So, about of pre-pandemic, XX,XXX, members. kind we team had

paid set does been back at high the to call gets those people us and perspective. unemployment the in XX,XXX that's come that whole. from we're got out. team pandemic, to in to So, right, they that or lower starts back, kind hospitality, from of XX,XXX We want which but to have members indifferent mentioned that type handle it's hourly believe then might or is Greg to I from And insurance at federal whether this today, a that through across was make more given to the neighborhood the on experience, we've to thing it's standpoint, that BJ's debate in that board a restaurant when join of when early And perspective. rate service September, people them of, obviously influx have that job somewhere coming timeframe. that Trojan, in have given see or of and out, bit X,XXX, to people there or here regards look to unemployment want high of high wrong integrity people supplement is, to generally, an that not us. from the little run volumes standpoint. of The run jobs, can it tend that we going for that in frankly, be really This bring And

the some the unemployment an federal expires that $XX of rate into less get insurance the right for as now. that wage $XX in think September people hourly back in sometimes there's incentive from are to these I to timeframe So, level. might of change And the positions

space of in know the standpoint. many that -- have hard exactly it's from been we've all So, how got before questions to versus I that reputation. don't tell restaurant if answers But haven't a question, good your entire your

out been saying we've was Greg Trojan over actually of last people As the amount there, weeks. hiring couple of decent a

believe, they XXXX. Our were, retention now right than I are levels lower in

that, from It's with peer enjoy people somewhat So, with government now out also and there federal know challenged competing us that unemployment for only -- right the companies we're not we're the our with is working kind competing and the of just everybody perspective. of I subsidies.

Nicole Miller

just I it's That a I of for think makes typically think safety value leading of was notion or last it really question idea dynamic for situation. really And and wondering know now help. the and fun industry and indicators entertainment. I'm would maybe if for about It yourselves. you've sense. The does and then it us helped me, sales the same-store isn't always like

guests lead direction your does study might the you So, be? in of any sales of what indicator leading

Greg Levin

very and But just are do we three Those BJ's, I'll thankfully, you everything is answer that entertainment, things this. front-end let mentioned all value, well. them safety.

Greg Trojan

doing I You time. without been of concepts serve -- most to but et and large ability dynamic going of to a for the coming social out that that I we served than of BJ's great very pandemic, is gathering reservation, in brand, structurally And given accommodate the well, all a better is of the mean long the high really parties well like have -- of we're at really particularly is the but comfortable has think place. we sure have groups, been energy, those to strength dining we've that is sort that large focus must reasons, a to parties for in some know Nicole, place. for core And set cetera much there. our out have of us period that our and gathering up experience serve us but of

Nicole Miller

Thanks it Appreciate for the update tonight.

Greg Trojan

welcome. You're

Operator

Morgan And of we'll from move John a Glass to next question Stanley.

John Glass

virtual ask we the of whatever to else brand about to Any your in early talked size now about, Thanks Beer given restaurants put the regulations? regulatory layers business? the issues of very sales of the certain about the Slo you relative it's much. about; actually Beer I you've many Club. want could there's how how current that sense the specifically into think off-premise opportunity emerging Roast and wanted should new obviously in maybe you And to just overall that mentioned think states, like Club, two you

Greg Levin

Yes.

Club, that or XX% the On the Greg could to of say neighborhood as Texas call and number the in said on And Beer into it's Trojan hopefully, Florida. I that somewhere expand so. in want

Florida; get majority fact, believe the into, just close states recently. pretty to they two states XX%. But laws have out, which In changed those I of some their the I may taking us we can other think gives of

the of we not So, so XXX us. we restaurants. on you quantified John, XXX real go thinking can or where start in quick, for think then, that And the have about range those both

spend all talked One Beer the Club kind are our restaurants more And to perks, and in incremental on about in the our mentioned to in things with of of test is the California, our in it is at the into the we've restaurants. different Beer idea seeing of -- those guests. visits from -- Club drive people least Greg of the in Sacramento we and all

and as these period. same perks our of driving -- in over the One we looking of revenue. back incrementality spend know the in Club much, is guests want even word incremental tend and incremental we've doing use Beer giving thing test specifics opens things kind that in it's, in more But the analysis for cannibalization visits things is the that And what's Slo to we'll and the or come continue own regard. case, now, held in grow to California, Roast see even we've don't have the -- as they doesn't see against But that to as up us have on It will us. product I'm I increase right is done. the how to for, and incremental showing time to that

Greg Trojan

the it mean, this, pandemic. midst of time in in of been we when you we might out I been long. that is, think of consciously little all, it part at haven't that Sacramento John, the we reason but we rolled frame, the crazy, But a first the for about did have

a so the interesting when to room rooms refill, were and conditions even of right? -- really because were closed, for example, advantage folks different So, offers throughout it's dining watch under our And few availability, taking off-premise growler the been of it's operated dining popular. it's

extended time with it's really a we open but out. need understand So, some that's to really see, rooms gratifying period sustainable to of where to settle dining been more going

the see important So, it the we're better look are before But how the metrics because how time bit most guests a a micro of little we be we mature obviously the this encouraged can have very idea. little That's responding need big thing. just well. and like program more dynamics a to really grows, and it

John Glass

just you Thanks. talked margins. maybe and What first maybe more just costs? experience go question about less. And in-restaurant a maybe discrete were you quarter they and store -- I experience better ways, the both COVID-related the had because detailed insurance on know was

quarter persist first may that the more pay-related. the future? not and puts takes You were the costs may with have those COVID had in associated in basis What on

Greg Levin

spent be one it John, there. The and -- to that It's having is just if of range be in down things insurance crazy people the kind markets that I call to or should on of I costs, top changed off year. would think in was XX-plus and market we market. of in call have again, no unfortunately, haven't in you're million I probably to like and a because I in to I'm the had just managing again, really didn't liability brought insurance $X -- from a patios discuss business. cost, so they, market of $X.X your honestly the how what self-insure something might we think dining to those the trying think that that's years, least insurance regards the fact relationship which, the matter head. It's insurance $XXX,XXX patio in I we they're at stuff my general just hard side have obviously we've direct just was about in the underlying That, doesn't million things. of some room, business PP&E to is the of higher falls the And think of up on the $XXX,XXX around other reflect very or insurance is claims them that that probably our that were before. And the that. we neighborhood There's hard slip therefore, the last are and less down. seen really The on

as which bit Greg to the other us them the other better have I And had it cost thing of but costs, The $X spent hiring on pure bring that of a board here it's I help number think and the of can million. don't down of better in if quality overtime. labor me touched in members upon, for direct that team everybody in really comes life is give can We've reduce our money overtime, the a only neighborhood those restaurants. to somewhere on So, front about labor. little I also lot -- to manage

John Glass

Thank great. you. That's

Operator

our of to question Inc. next James Rutherford move we'll from And Stephens

James Rutherford

I'll details so all right. so have that's the just a all of Yes. things if been do far. Thanks of couple for Most mine bookkeeping asked,

split curbside off-premise of within could you share weekly what's please? and the and sales, bucket, $XX,XXX that delivery split And of the between first-party that within First, third-party delivery?

Greg Levin

to to it's versus probably going on number. James, at third-party third-party looking what going looking XX% be I'm it's to about XX% of site. to our closer it's a website of sales it's be go kind label, XX% our played call just be kind of delivery, -- we it's all would to -- that, going kind delivery, But going XX% where out then through probably here. how out the delivery. except through they delivery, XX% XX/XX. be a actually, of of third-party probably pretty white of It's think, XX/XX it's aggregator close Frankly, I might of It the And take-out. good of at

James Rutherford

Got it.

bit ongoing a for more. be And seems one-year harder is do one you supply foresee and today? the wage Thank to little Okay. comp, Within price on picture? what running outstripping then your And pushing price demand you that. given inflation given

Greg Trojan

see asking as guest it's we're to thank element numbers taking where -- earlier price to you that incidence important that less, that now. because really more. an we're our check some of the opportunity business an I and for growth. healthy right And I driving And not think happy is mentioned Actually,

I think our the value drives it's fundamental one concept. traffic and volumes the of that is things of BJ's

have invest of while to favor. value, we some other these working in dynamics an as this view we opportunity in So our

would say, I XXX we've in or basis below in So – so to few points to been pricing we're that. the the good two low years, a mid-twos last

James Rutherford

on Okay. Thanks results the very much and congrats here.

Greg Levin

Thank you.

Greg Trojan

you. Thank

Operator

Brian our of question And Deutsche we'll go to Mullan Bank. from next

Brian Mullan

development to tend have? in key just the Thank that time some factors current will how XXXX And end? the right that you. thinking many pipelines units around talk I of current given the accelerate might on the intention determine next was could What color Maybe be expectations the winds number just is where realistic about up development some are for or lead hoping you XXXX. in context then year? now that to

Greg Levin

ultimately, to so that think from the of ourselves what want we is think So, overall, when standpoint. business, getting a Brian, year the restaurant to growth X% back a we about minimum question to I get

So thinking about of start somewhere neighborhood puts you X% XX. XXX restaurants, you the in

for this cetera. going like us from three reopen because to think which is it going in let's new et restaurant to regards training, hiring, I Richmond, opening we're year two to going act a – call our

so that next the probably, from this said year into range kind to or going XXXX. of three we to before, in XX eight is Moving and

Greg low – looking start as I get many I'm think done move into to Lynds, XX restaurants above at that as, would the teens. like and going that XXXX, again We've into we

Greg Lynds

XX yeah. of beginning year, at the

Greg Levin

capital as growth you EBITDA you. us then - one view to quick In a That's we've I on carried you've year, restaurants of always want in pipeline. in get us to Brian do a that in the a start just do quality. Q we Okay. dividend just not drive earnings into digits. thinking great. X% Mullan then the said somewhere think of modest follow-up, from there. we low then bit going the And And to Thank you to of But to we might there's get out it X% dividend. this? X% XX% and the a repurchase? that XX going to opportunity really, you like past, comp seems see race a a paid around mean, before, leverage to coming this X%, revenue free the ourselves anymore back yourself flow leverage need can double standpoint, doing and with feel of X%, cash growth, sales which and necessary our that but use done attractive. sites just through exceed so comfortable be we what have that even building quantity you unit with quality is development, know We're middle CapEx. But good normalized We've the know about sure it to great went we in is We're to to that, are And year, ability a I begin share would I pretty for this. allocation. the to and growth. P&L And make to allows

thoughts, changed used has you latest do things? just to how anything wondering So to relative your if

Greg Levin

Yeah.

where dividend excess significant mean of to at coming our determine, which would program use start that the with if plans Directors business, repurchase, But would thinking together of about as we look from this obviously in have put that together that best of we through something come details go as COVID that cash the get look, amount is out is think, out cash, or a and we're we excess of time. we position, we share our would of of our I a perspective. what Board to

the start think put we now are that to a it's I perspective. right still little where table bit to early on from that

to cash about see we capacity what's that's to when so see I that, continue think our to being eased, after ourselves new to start we we think start get want can free restaurants. addition I we extra start really capacity. XXX% in back build XX%-plus moving how want or sustainability to flow to we And when the restrictions see we capacity use think to to to

Greg Trojan

the only is The confidence that say – approach to not we add I'd sheet. balance with change is lot our can thing a thing, of that one to would I conservative

As another of running business way. advantage had I like of need just our to year we remind that mean, us we don't the

that on be And then So the other thing use don't capital the have that's to is of one any is first intention think productive finding sales we going our that to dividends ways restaurants openings changing. the grow I restaurant priority best is through we'd And look order. repurchases from share that either there the in new grow or we and have. to improving and our business,

Brian Mullan

you. Thank

Operator

our And Blair. of last from Zackfia comes question William Sharon

Sharon Zackfia

afternoon. Good Hi.

Sorry, missed think this, that in both you if I getting of long the and the how you'd like back terms labor of do staffing, would to and hourly but take? managerial, kind that into kind with XXXX? accelerating I mean, is that to whole you XXXX? something challenge on of here how you development with in labor expect be juxtapose And made do the

Greg Trojan

have certainly don't catch That's our a question. sales to to ball this. on good up our intention Look, crystal a we It's volumes.

Now, we're sales yet, quite and do still capacity not you levels have doing restrictions. the

And we we'd the have to and some more if And to much normal restaurants. sales a even new Greg's would be hire federal folks Obviously, we because the obviously, impacted and need I'm good right? But progress from but that a but in where That's Sharon, well. reached our here. these in of that we all hope all it. question work where equilibrium. numbers manageable put hired workers, sales through, be tomorrow, would balance do are high imminently joining unemployment we a manager we help. see the pulling of and to see new levels of we'd right? together, to are the of a by expect, trade point the don't have of we've think we be in I managers, and we the as programs a they managers to – I you're on on actually think we be as manager continue And So kind seen new to aren't degree about as have staffing, staffing how going normalized hope perspective. more of growing front, terms holiday and back, our really season, a get that place like we But they're states going on are unemployment and So we're all think how because don't talking asking and those talking the can really into hourly establish areas, by manage about that's numbers count thinking are, about we're they confidence pipeline, that

Sharon Zackfia

I'm the follow-up? a I front to you're of stressed capacity? virtual dynamic concept, the if on ask Roast, labor is ask figure kitchens some And how protecting because that Can house? with more trying impacting kitchen I there the shortage just Is Slo out

Greg Trojan

for years, the jobs. were have that of the a anything fixed run in of Actually, front-of-house going kitchen a more folks, levels. need open, it's aren't kitchen amount the interestingly, great it's same that hours from the rooms that's easy last there's a been staffed a we've But of By question markets in because in to because of When labor the kitchens, in our stressed. low typically, wide last years. has not much few people. fairly kind And terms couple fairly still most dining our part finding I'd been you you're is filling like not in kitchens front-of-house margin, don't we say many we stressed

than of zero doing off-premise on in So but room, the of different the not much on the from cadre side stress there's good run is of there's to nearly the close. but to dining not of system right? going front we're front-of-house We the been had a recent and house, history. more So folks takeout need which business, – a you number it's

Sharon Zackfia

Thank you.

Greg Trojan

You're welcome.

Operator

for today session would call. to And in that question-and-answer concludes your you today’s participation. We like thank

may You disconnect. now

Greg Trojan

everybody. Thank you,

Greg Levin

Thank you.

BJ's Restaurants (BJRI) 23 Apr 212021 Q1 Earnings call transcript