BJRI - Earnings call 3 2023 | BJ's Restaurants, Inc.

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Operator

Hello, and welcome to the BJ's Restaurants Third Quarter 2023 Earnings Release and Conference Call. [Operator Instructions]Please note, this event is being recorded.I would now like to turn the conference over to Rana Schirmer, Director of SEC Reporting. Please go ahead.

Rana Schirmer

Thank you, Operator. Good afternoon, everyone, and welcome to our Fiscal 2023 third quarter investor conference call and webcast.After the market closed today, we released our financial results for our Fiscal 2023 third quarter.

call full www.bjsrestaurants.com.I our you of will comments the the our release that the view forward-looking on at contain Reform website, begin conference XXXX. Private can Securities text the Act earnings of on our statements Litigation You within will of meaning today by reminding such and reliance should not Investors are are statements undue forward-looking not guarantees placed that on statements. cautioned that of future performance be actual results and These our statements market management's projections those business based statements. differ are expectations, could in on current forward-looking from materially and the obligation the any or result events no other laws. securities of to undertake forward-looking to statements any by future information, otherwise, We publicly unless update revise make a new forward-looking required or statements, to as whether so or do President; of call Officer, with and the Levin, and with will from prepared contained uncertainties full Greg Officer referred with over associated the our turn today's statements your Securities filings the which to Investors are that, start in with will after to Chief company's will risks questions.And and I call our take the Houdek, Tom remarks Levin. Commission.We we Greg discussion Exchange Chief Executive and forward-looking Financial Greg?

Gregory Levin

of positive margin you, BJ's another restaurant delivered Thank sales and Rana. year-over-year comparable quarter expansion.

revenues in sales a and restaurants. strong by our Our the by new led total positive increase increased restaurant comparable little of average X.X% driven a X%, over continued weekly sales, performance our

quarter, year. year, the XX% representing beat increase and prior our a of results our by quarter, over the consecutive points margins Box.We XXth increase in prior $XX [indiscernible] basis million EBITDA adjusted from of restaurant an as the XX.X%, the approximately industry expanded marking For generated Black XXX to the measured

BJ's food gracious shopper guests. we service the that server We with a Brewhouse year-by-year. gracious and brand familiar is year, of rolled well program May X free sales hospitality which peak in the weekly made third first low-single pre-COVID to dining September.This reverted patterns, in research fact, quality, regular seen and our a growth already resulting come mystery down July, quarter. consumer smaller course roughly rooted and the packaged September. COVID third positive trends and we an and higher full sales casual of comparable as quarter, our as further to are year, our updated restaurant is more hospitality on return starting that mass with our step differentiated since service in to in delivered standards, of in have go.Compared X on by June third taking equivalent and we on quarter EBITDA, adjusted have an restrictions, dining quarter-by-quarter generated In quarter, volumes and items gold-standard to focused August restaurant sales high compared strategies July average with XXXX, slowdown. August an the XXXX, featuring then normalized our know consumers digits previously, sales in ambiance all down energy of to for a to actually margin over hospitality fabulous will in over quarter to compared to last $XX mentioned sales XXXX million focus year, year, in and Last of sales the weekly escape to out enhance our seasonality August new experience before teams September fourth in Historically, Fiscal we in-depth to in term BJ's the the industry-wide sales down and returned details and our delivering trends steps in increased Tom in concepts.Therefore, of of last but with quarter provide quarters in and building market to October.As scripts long rebound of consistently guests

of result a levels as to these hourly increased stores pre-COVID to we improve narrow continue levels. have our we programs, the management As year-over-year our hospitality and recent staffing guest year-over-year surveys.Additionally, gap on

rate culinary rolled to innovation a and beverage made XX% BJ's careful and that In with items Brisket limited Having Brewhouse [indiscernible] new quarter, scores items, fabulous. right us matched adding items fact, our for execute of our sales, made cocktail items, grow working which our hourly accompanied based menu Peach and Twist restaurants. year-over-year.Our our rolled Nachos guest higher and familiar environment, fewer sales improving even familiar provide White new is focused time, Brewhouse service at Brewhouse illustrating on menu new Beer dollar Pretzel, team with fewer but margaritas, team yet both and and a out is of our member level, has for innovation testing third to the drinks in our in guests and the continues a appetizer has Cheese, including paired In Big efficiency.We the create line fabulous Wow on incidents retention September improved and operating in we categories. Hickory items our the enabled the our Blonde to that Boba-Rita.Importantly, resulted pre-COVID research to our levels also out

just now with that dessert syrup innovative their our fact, shell Pizookie to that guests pour out top over ice rolled chocolate our make and in Spooky vanilla new orange-colored category.We also chocolate which hardens cocktails limited-time-only over sellers delicious are world-famous our a cream In Pizookie, dessert. the

October anticipated. #X than selling expectations, sooner our Pizookie and Spooky Our exceeded Pizookie this our has out selling becoming

holiday see surf-and-turf Tipsy limited-time-only are a as now Pizookie a guest and to forward and seasonal appetizer, Paradise season, looking to this plan product, demand for Pomegranate our back expect the to Snowman this Spooky next and Brewhouse extraordinary Margarita shrimp feature special we garlic entree excitement year.We filet new Blonde Winter Given new cocktails.

with to strategy menu find we in the BJs in what of a casual more our rooted new Each squarely guests made call we mass for these of quality familiar experience, theater fit better dining come items items, restaurant what and that at you than these Brewhouse Brewhouse items Theater. other chains. fabulous.Furthermore, guests again, of All provide know

for experience. For better cocktail BJ's and we like guests our Belgian of do so creating can marshmallow and up the a fun, to the that simplify a includes polished, glass, experience.Most in certain us trade in we at casual guests hardens.All shaped guests needed areas to and this importantly, Pizookie anticipation and to holiday to provide Tipsy menu a our over allows allow chocolate Spooky example, optimize while in indulge beer watch execution culinary as Snowman snowman an even it sauce a our these items pour the

last want we lighting, with key full-service that dedication tables. is restaurants this broken on All BJ's of ambiance. by that wobbly statement, tables, an dirty capacity, has delicious that by hospitality differentiator made to passion bar and worn-out restaurants ambiance Guests relevant our year research, menu artwork, team updated visit that continuing relevant a optimization seating and food.Our gracious contemporary, members' our booths the and providing and Guests floors possible in complements and remodel new enhanced don't old, chairs. atmosphere from program know team want a members.Through been process began we our focuses

more the that new much screens XXX-inch bar contemporary As we've featuring is amazing television before, mentioned feature, statement and Theater. Brewhouse bar new a includes lighter, a

we sales XX the of year, our line margins labor margin high-quality remodels X-wall remodeled and by also reduce we least top elements as our over have targeting savings year-end.While is cost driving to restaurants while occupancy additional on of still leverages XX costs. are least We this maintaining an our fixed structure, our we our and a to expect between standards.We way for annualized laid and now million opportunities XX% $XX dollar unlocked operating year at growth cost will since million basis sales us plan operating have that identify the restaurant benefit out of and to cost $XX food, last by of at best savings continue every of

quarter, restaurants the In roll including improve will restaurant. Arizona, in has opportunities we we a which our relocation also Additionally, manner. restaurants, opened identified our to continue new in to X year-over-year.We continue XXXX, of margins our the savings team open expect Chandler, late the further EBITDA out new fourth balanced to which and

can per are build discussed Our with XXXX exceptionally our restaurants higher XX% the new overall approximately prototype versus last approximately average, plans weekly so or classes $XXX,XXX, teens.As XXXX than save out of XXXX we we roll margins our that new upper our of that well, than our mid- and doing more to current sales us million quarter, and the average prototype. system $X of for will in we openings majority submitted

optimization.Overall, labor Additionally, an layout, by margins built restaurant of this on due restaurant at new to in delivering plan better the even increase I be in to openings number to rate we a an will this we capital lower this provide XXXX. year, openings for efficient provide prototype prototype in returns for and before new opportunity believe should invested better new XXXX cost.Therefore, expect more a similar

many goal weeks our reaccelerate more our we've restaurant new times, As annually. restaurant or X% said to by expansion is grow and

mid-single-digit positive quality expanding investment going new are to cost reaction program strong and EBITDA growth, in and our consistent right to comp and to drive share from for do are restaurant at continue low- to we sales restaurant quarter. with guests that to the earnings so our strong we reinstated continued very X%-plus we achieve EBITDA, should right the and However, returns.With new our our investment restaurant this we the range past coupled the growth doing, shareholders.With margins, increasing margins with all repurchase

forward our open grow and share expand and We to midterm.Finally, we our host dinner looking We'll XX new strategy. special are iconic beer before. some in and as capital Investor on of cocktails. Day a am night greater sales, our well return I around longer-term some the both new detail and seeing our beers at in items Tuesday, opportunities Analyst our near Boston, near-term increasingly the many to most shareholders restaurants the November and dinner welcome our the confident event, as of strategy will you and XX, menu November in At featuring margins, our of to

Tom? to So provide more turn it detailed I from let quarter trends. for hope and current you can all a us Tom that join over to event.Now the update me

Thomas Houdek

year. to year, the quarter statements, restaurant the in this than a with quarter, per will XXX,XXX Father's after X.X% Day prior remember, discussed year, we our grew was a industry Thanks, of June to restaurant.In the and associated our seasonal million. with I sales is the total comparable This quarter a our their September, prepandemic and markets.However, Greg typical details enjoyed third sales and the some increased with in Greg, the by the On pronounced, provide more weekly quarter as From continuing averaged and COVID with SEC.In in August is sales followed sales XXXX, consistent much into less over afternoon, trends X.X% starting as $XXX perspective, commentary lowest filings decline sales sales pattern, Please basis, consumers this views. the restraints. uncertainties summer normal risks forward-looking and down subject any first without in good third as to seasonal seasonally, step mentioned. our deceleration everyone. forward-looking

the trends, such, digits digits, last as actually down comparable the mid-X% later August resulted the trending sales in more low-single year's recent flat the more sales positive in sales in pattern from quarter an from more than increased restaurant coming As year's July, September low-single August, X September.This negative last in levels, a to of first positive October in fourth weekly softening slightly averages XXX improvement seasonality about in the points September.Moving normal comparable year's basis to return third are in restaurant of seasonal before to to in quarter. weeks normalized in into

no early traffic sales our to Our X%.Looking more the further compared were XXXX and, QX, August a the late-September comparable the trends throughout check, driven October and being than main patterns.Regarding upper would dayparts, and improvement QX much both sales in the with sales driver or items different to pricing of continue late-night comparable in and sales traffic of shifts extent, in a that to ordered date, quarter.To outperform to check faster is providing round sales or mix our indicate perspective, restaurant value-oriented management, acceptance X-year confidence in in dayparts. less at seasonality rounds per lesser consistent our menu September changes third into menu we improving to our us by comp grow which XXXX from compared continue our was see the volatility trends other pricing

XXX margin a from quarter modest quarter.Also, in and a a basis of growth dayparts, XX-basis benefit quarter, prior both of $X.X improving other than restaurant-level and cost-savings lower post-COVID year. third net cash progress beat the further is last date further quarter, point continue higher to quarter cash headwind loss for in quarter flow flow on in reported tax than shift X.X% progress, is our QX were with margins.Adjusted year improvement.Further per XXX the mix cash quarter, dollars million Comparable $X.X when basis in was check would third the improvement by improvement this which point margin third of with million in to advance late-night and points restaurant-level progress operating year flow of the prior the the points basis compared to grow our XXXX.We initiatives our period.Moving on channel made an million, was loss from was margin initiatives contributed average $X.X to As $X.XX adding ago in corresponding diluted the excluding that year the expenses. within higher.We conjunction to points our been the the sales by to million encouraged was same the the was restaurant restaurant-level net quarter our efficiencies have XXX our $XX.X check.Our XX.X% basis of in XXXX, GAAP second are from margin EBITDA illustrating and improvement era first of an the which where a share XXX-basis to a marking the our differential sales

figure on and basket part the efficiency, quarter, sales were favorable to quarter. expectations. third about part of benefits the and in prior year-over-year, the XX.X% moderately points was benefits points ago We XX.X% to our and of implemented of expenses which quarter-over-quarter quarter of if accumulating promotional as sales basis last of high were the catering, compared Our sales labor in quarter, was cost-savings we which less our XXX of labor operating including initiatives.Labor Approximately Food cost-savings was we've levels, of XX level were A incrementality prepandemic from for operating year. number investment higher including points the to this basis hour, to labor been level cost quarter flat was kitchen compared are track, unfavorable an inflation well have optimizing a to to reduced to to investment. quarter, further better to improving with refining of the prep the were which off-premise have the was the increase date high which in menu by return model.Occupancy basis illustrating compared XX year the was and of and our across The sales, was our than which the hours. changes our metrics of favorable third efficiency teams food the date the costs with due in not activity awareness-building driven made a quarter that expenses half XX.X% labor our and as items our respect would which year. in last drive strides initiatives favorable per consistent and restaurant at requires as effectiveness

quarter Included QX. $XXX,XXX a same to delivered $XX.X in to catering the in compared last and our third compensation than benefit sales deferred $XXX,XXX performance approximately continues deferred higher grow fund Our expense business million XX% to in plan, in compensation the quarter. was a was year.G&A linked G&A

Other in P&L. line that Income As offsetting item and in Expense is an has this a reminder, the our a entry noncash

in end G&A to is to the the million million, range, be million which ended reflects share equal $XX the full that and than BJ's the million of started confidence the quarter of The shareholders. prior ended guidance.Turning resume during the balance higher repurchase we $XX debt year, We currently our of the end prospects. our $X with where we and belief share $XX lower debt returning $XX repurchases management's we was QX longer-term of program reactivated in the sheet. expect For a net our shares on now our undervalued resumption are to balance of quarter, capital the which We BJ to to year. million.Also quarter about to with

and XXX,XXX repurchased restaurant share to ahead sales of repurchase During retired are prior recent the year quarter, margins. as traffic third million we digits trends, we QX, quarter, common comparable QX Shifts we approximately have delivering comparable low-single low we the above authorized cost of shares sales the returned sales fourth and expect area the our the and have the flow at to a to seasonality our for in end margins in cost remaining in continue stock, of restaurant-level be quarter.Factoring million. expectations digits. on $XX.X expect last At by recent QX, trends, we passed, in encouraged program.Looking in $X.X positive cash had XX% sales low-single to and significantly year's

a and the from which are required purchase well instead and of the a such to a this XXXX of onetime lead devices.Due and we our previous in number restaurant, are XXXX the was Chandler, with which now QX payment for XXrd prior relocation our targeting approximately leasing year's remodels purchasing invested tablets in fantastic QX Loss our which and Disposal CapEx, a last on $XX the start, our of approximately QX this gift an million system, of at Impairment openings our As higher table ahead of additional margins write-off with opened, to server the Asset million will range operating the completed. X functionality benefit, off as location.Also a CapEx prior-generation as reminder, of in year.Looking increasing with XX% basis which remodels underperforming arrangement aggregate.Regarding our in an a Included million most we closed restaurant restaurant to incremental noncash to last Arizona, the meaningful our to investment sales CapEx, as to quarter, XXXX end tablets cost savings breakage for now points XXXX. half enabled benefited is our the the card in the line handheld than related margins of our upgraded benefit $XX are had high incremental restaurants approximately new we by to week P&L.Also XXX $X quarter, restaurant,

for usual our planning middle As are year, expect some share early food but of in this in of thoughts.We can time the digits. low-single we I the to cost remain inflation process,

XXXX above the the at To most some starting in our lock February.Labor of over and minimum we of new We items have paid bill, that replaced in variances $XX-an-hour in to report for could hourly expect do inflation added the wage impact better to state XXXX will idea many we FAST any or contracted next when of be restaurants California-based of which digits, type tick April the we'll given the members to AB the is earn team Act. results a note, couple mid- the impact. QX California's near up upper-single fast-food in bill our months, of but XXXX,

prices throughout the expect We the menu restaurants costs. operators state as look to in mitigate added higher

margin-improvement year, and for have offset expect open path to this also to plan ahead, is able profile.We a continue grow At year, sales-building strong, our have to profit encouraging, growth to remain sales remaining for X sales X position BJ's higher-quality best margins conclusion, year, similar plan Recent sales. for to concept our productivity our finalizing and building cost initiatives, questions. with return attractive Operator? shareholder we given trends dining continuing continue demand restaurants continue up our your and to well long-term time, today, we experiential your time now the BJ's we'll momentum but menu and to be next initiatives. you initiative clear progress making way successes we and and expect strong strategy still the the grow to with know call the our to and to and inflationary continue value.Thank consumer and on committed to savings margins been financial with remodel shares.In appeal build.We pricing same to repurchasing the open our through intend us are enhancing to pressures.We for next We to

Operator

first question & Brian Oppenheimer Today's Co. from comes Instructions] with [Operator Bittner,

Michael Tamas

Tamas Mike for It's on Brian.

read margin on I think talked year fourth year's quarter margin what the historically being the next look you've good about like. might a full pretty

guidance does that? the big And what I'm that XX% like, low variances year? be, any, So the this if still do the with wondering, for, range you against hold think might

Thomas Houdek

the for question. thanks That's Mike, right.

for quarter, or back look XXXX, were margins. out to the this through the consistent cost-savings initiatives do still you our margins would rolling very full as QX have If QX. we year same I say

some should So for the on on the quarter we're operating which things making There's occupancy XX%s, higher a efficiencies think the line I that the meaningful. in implement changes there's low than rate average couple be we're of and mid-quarter. something our the to the process supply at are side -- for starting that of chain exit that.We're still

you're think QX margin-improvement average out, seeing is comes be the initiatives sales the a where and given quarter bigger we So there's -- that year, typical execute the that some is for still be about where continuing on. savings they year, we rate it's but that it be through added than exit see an this for little stronger about different the the with piece right, quarter.So should we of to we're should but some margins a should us that

Michael Tamas

give would the for for then, I a us and traffic I of for anything, take on with hand quarter? year?And Got this and just the going know you you just obviously, just haven't you're if you what can carrying pricing your And where then sense but breakdown mix third be pricing to XXXX if didn't decided can you pricing, give on could, force take that, but you you yet is know, if California for anything you. anything, XXXX didn't

Thomas Houdek

Sure.

some So base there be pricing case, next for I think will a year.

as did take get pricing and that think So was April. the about we because on carryover heavier a we it, we January in extra another some will one round in side

So to the closer round but still say because the We'll XXXX.And the year from of second let's of finalizing taken question? a flowing carryover again, we're extra in I'm something sorry, the have in-year. it the remind pricing X% plan, through is me part

Michael Tamas

just I was the third from you quarter hoping breakdown give can the [indiscernible].

Thomas Houdek

Sure.

So this no remarks, in but through we mentioned taken. the the pricing quarter, third extra prepared

So And the quarter X% in, pricing or in come another round late area. was closer to in pricing in the X% September. had we high then

put us So X% that X% range. that to in

Gregory Levin

the So year. off in upper-X%s. quarter, with from X% of it replaced dropped kind last We

our down So of it in somewhere brought X% into in about exit frankly, going kind bit. with next X% to year probably off range, a be little falling X% January rate would of the 'XX. it And

year probably We'll the we'll somewhere off. we'll replacing a little range. start that. in that end something X% falls something up to So Actually, less, X% the which with probably than replace X% means around bit with X.X% X.X% less there or

Thomas Houdek

That gets down X% range. X% to to the you

Operator

Slagle, Jefferies. next question from Alex comes The with

Alexander Slagle

-- pricing. on to check Just on in the thinking piece how up the pricing following of just did terms check? about relative the component, that was mix the question What look the of did

Gregory Levin

prepared are But on as in add and ordering we've is mentioned from details business in in business. and give check Tom they're I'll some there. general, standpoint. the our Tom seen how remarks, ordering regards we've level, what high in what you consumers But no late-night a to seen increase an Alex, can a change

has So late-night lower a overall the average check. business

are think items; it's which of lower just standpoint, not from So drag, late-night the the mix just don't about our when we're is Tom, we part to you our of about business drag, can... a negative know, business, as points is seeing kind to comp.I consumers a that because start accelerating shifting fact XXX-basis

Thomas Houdek

playing growing And our declining role. check or even of of as some is off-premise certainly some is Late-night is either a the well. takeout traffic

and pickup, at of little just if off-premise seeing toward down that that purely to some shifting there's the like, items. more we are some of there's great just of on-premise little late-night that's check, Which well. of it's is in seeing our we couple bit out So a But change no look a where a we're value-oriented any look more lower areas then is terms -- are going piece that shifts traffic movements check as there. checks where And check-in. see things we'll if a

in, all in of where to our of from said, X% growth is kind to that So Greg the pricing as that band X% is. kind delta check

Alexander Slagle

mean, is or Or that? that service retention are like drive of that sort remodels the it And differences, are top tier as and those step are restaurants largely or across the you'd something your outperformance? of what that system Got else, it. and of other back see look I levels there point to the drives doing, restaurants growth, you that traffic driving strongest strongest the

Gregory Levin

so that It's and California, of that COVID, talk about and to staffed is to levels and it's saw sometimes that think in that I state coming continued.I well there's restaurants no we to are doubt weird you're tenured saw the other with higher COVID, probably team know still the Bay restaurants we it kind to the Alex. our system, side And we when back but across have out comp have sales. COVID, tend And feel of an it question, Area, of interesting up to service of last speak. those there free California I and know members is look

end a geography. levels, as geographies And coming business. day, back that when bigger on is tad maybe portion all though California of quarter, third the the we bit we sales still think in they're quarter there about a October, -- service where across have But back, played of gotten demand we've probably that's softened in little the the as all really of a last it in kind come little a was stronger.So the So that year the our at think, biggest pent-up third geographies. third saw and bit softened, including shakeout even quarter, it's into those I have

Operator

The with next Josh Stephens question from Inc. Long, comes

Tyler Prause

Prause on past Josh. third-party pricing think hear to and general in talked is love you the you've about where Like, This just I at about pricing. the I philosophy would Tyler stand on BJ's more for pricing tiers. do

any the So be shift industry to a value situation? to second on sentiment, were great.And update how that one, of that then the more would you would approach if

Gregory Levin

you I'll some more give philosophical.

call to might pricing call is and to that see best" able indulge you know might dining alfredo a to that want think other Tom double be the higher cocktails what time, we better, chicken drinks mechanics strategy differentiating our bar allowed beer pricing working for They known-value a would that up. make getting items might I I want We've kind on a or of Brewhouse little strategy. guests a menu or actually have value Roast always filet it's our our casual same items. bar have our Slo good might side price higher-end want it. can, and different We KVIs, menu.The are casual or us for Specials. best-in-class our as as the thing to ability or uniqueness competitive.Then strategy things chop. well.Look, up as bar of but across in items and bit, been statement, and to really The guests want they're the there around concept allow be or to want the including quality spend higher-quality we to Brewhouse part we our sure some the is strategy, dining is on it. add what want we rib-eye. the all Those Theater.At to consider our burger they're daily items very well coming getting of that "good, that They're have goes bone-in the for and to that concepts They pricing a some the guests that our same pork

it's specific to a our come restaurants because across lot That get that Roast a do Slo and a drives something of it's good to differentiated we're guests where for allow around sides, a starter days of those full quality we our into from value from X something standpoint.So price at going ribs, $XX So Pizookie really whether that. a get can and salad dessert. and rack can you continue in Thursdays, obviously to balance on point, it's guests a

lunch some that how specials target them missing depending target drive items economy how of as we'll times, guests value have around is in certain out. limited-time-only on items to also our lunch or markets, sometimes want a of kind we'll Brewhouse daily we of our around Other of a Specials. specials target We statement the or indulgent the with or the fear some well.So them our

disappears."So the Spooky I a that Our our Pizookie that. as it to before pertfectly a and of it's restaurants areas different played those restaurant individual from specific towards into standpoint. drove That well don't to come on FOMO we get our want Tom, macro want this as combination target add environment.And if you the based guest Pizookie then need pricing. "We in know, to anything

Thomas Houdek

Sure.

we pricing, our approximately third-party did third-party implement the across terms an extra In of platform. XX%

in that to paired be some California wage separated should sensitivities So we the as in to because some now, of a be due process are new place.And changes that We're to of now as restaurants right of well around tiers, here that's minimum through measure. also on needing out there for can just in a we terms well pork and other some going retiering see some terms together products were which increased which costs. looking of rules as restaurants

out should we something never our and too, We've be promotions. ongoing I'll from said is the roll promotions. next about down process Greg echo, just think backed that that I what So year.And

Specials hour great So happy Brewhouse well. other daily promotions, great lunch if promotions value some out up, promotions as great still we there, ramping there's have

that I any we've attractive look in more are the certain think drive building, out and even a the we these drive promotions when drive brand there's mix it's as these if environments. is can it market, there's the a there traffic.So about already getting people forward-looking more -- too, a we're even are landscape, now in, in brands So or to in and promotions we one using there type value, promotions. And the I of about at that I will more don't good got but the at -- for out also looking traffic -- of these there, awareness if ones that right are really ones, mix think

Tyler Prause

I there. just one Great. the helpful. color follow-up. appreciate Super all And

for end G&A the of 'XX. kind about going G&A range year the So full the at low you're coming just kind into of of in encouraging. And 'XX is think thinking how

Gregory Levin

our to a it on sales always So can so budget than But rate leverage G&A we're forward. we less right is line goal top middle going season. grow at it, now of our the in

together what that our to going and get got continue we we it's for plan can be going forward. might we'll sure year, that to put next we're G&A revenues below so looking be as leverage, and our at make look So at

Operator

The Wolf, with CL from next question Andrew comes King.

Andrew Paul Wolf

restaurants that that you restaurants mean, you your to cost already of getting a wanted down a the I a switch X% Or just also by I'm lower new the have IRR you X% talked been million. cost I want have question. to better-than-expected the necessary, bringing achieving I investment ask and basic about on return is $X to just to think get sales getting higher was about to build I to hurdles kind Is question. math the to which to the there?And XX%? before,

Just wanted reality you as that a to run by check.

Gregory Levin

at we more the us be building set allow we're fit in how to margins, changes there some drive over will we our we we at some around sure will footage, the of us, think drive it Reducing -- look build -- to while for restaurants. $X our seem costs we run of Andrew, investment to of to it's way put our square is, as our adjustments our other up look at for prototypes the be us kind and basically said, where right to and and and that there the how want prototype to in optimize it sense to I can WSA always you in business. actually. we understand statement million a you help the side to make the question want just changes look going some members.So we that always as evolve are well great the continue then team us it tend to the ROI, of to our preferences kitchen seem just of consumer And make as our changing. continue things, reduction is there, some efficiencies make years efficient that way.The bar around in we how forward.So continue and And allows our menu with other the it

it restaurants. and of Some down where comes off-premise our to we're building

a brand might building a concept. if So BJ's of the we're we format awareness in little certain restaurants California, use our because the California bit in markets, know maybe we of larger

of only a the that next efficiencies this within not might walls and way smaller like, looking who's having of again, it's is it bit optimize week, actually current to Going with to Greg conference X little even year, cost the of at into changes smaller, some what things. the give that team better actually be evolution other us a that, real in those of those different look next Lynds, both couple optimize going to a can going of for but we that to look this continue prototype the the execute we his of markets But estate at a is restaurant. restaurants.So prototype combination as build is

Thomas Houdek

$X that return in -- of your math, to the million area. that's by coming mentioned in the build just X% cost Andrew, as right. out you The improves

Andrew Paul Wolf

a Great. check of just lift sales the talk my remodels. this I I would less assume last want trying to directly question, margin than I to kind question, on And analogous that. it's what a one-for-one, lift. Or sort you to little sales a is I'm is dollar-for-dollar are of the is? better. have just back because profit into the able of incremental to sort the

Thomas Houdek

Sure, of Andrew. out been scopes. rolling different couple remodels, these way The that a we've there's

So doing traffic, $X,XXX around that's the the it's adding on the of about sales lower incremental scope, the in that a to some flow-through where about extra are and booths restaurants, a extra $X,XXX on basis, seeing neighborhood $XXX,XXX. And of and point, those which, touch-ups is few nice. ones your or we've been the weekly

outside the or we're the on and larger-scope these ones and bars the because and really new the rooms in that you traffic-driving higher.The it more put remodels redo on actually booths. reconfigure dining is the So seeing that and we and like do brand-building the up even the mentioned, and returns XX% some and Greg murals are brighten painting of

the $XXX,XXX return. these even or be seeing type remodels of we're Some or can a higher. of And little still $XXX,XXX same

in of So it multiple the of type lift sales a is we think as we're that these seeing lift, -- sales restaurants. of

Operator

comes from question with Securities. Nick Wedbush next The Setyan,

Nick Setyan

low-single-digit comp help confidence as should saw, be bit there for progressed rest was monthly of in obviously, Appreciate sort this a some a the some and, seasonality, was also we was consumer out pickup. would it little was to of the the kind something cadence the concerned. question, very else was percent way a go-forward difficult as but us But If you then that it it's terms quarter QX the know of October have parse well. if trend slowdown? makes perhaps of I seasonality Any more and x kind sense.

Gregory Levin

trying there. all Nick, obviously, mentioned are decipher things, just a as to And question. great you we different

I I biggest seen a weekly been what BJ's. doing this is to a above public long we it the at company July, average time. look, think back as for an this at Pizza quarter think in whether today and when sales I've my about and happened us ever are California in don't days August was Kitchen I've where the thing number -- look think and look we

'XX. sales.And November question there, then played at compared started last the out very played how of to your November and traditional XXXX, in year, looking seasonality. sales did June then we July just haven't trend say into movement of October, are we through than were You it higher October, August we as lower we it It's coming just and I and in off a a it, regards a August odd. generally December as where was wouldn't lower And kind same And September. and December July, see seen, to to thing, -- going

more back So that great that points to while soon was promotion talked delta we see turnaround through.The August, than sales in by and states California, I done here August, come that business. I you And that's in per in to even really just seasonality.Additionally as probably say we've of you starting normal after Labor much went Black granular, and us we gave in personally over with school then to our data week, came well. and in those the where here the of California regulations third really we Spooky it other in myself October, of when XX-plus kind still school That when facing type to California, that's up has XXXX into of and our basis kids around had speak. September the was that looked on -- it.And I see school a XXX and remember Day. little last, as probably so back down this that's the where a would of more of come back that happens started we -- se, grew no restaurants out saw that specific of of so know as kind other secondish that getting back both COVID I going And side then also of have the California as remember things are anymore. one week is some forth. this which And started in the right And Box COVID Pizookie most longer can that came it most. went slowdown I and that bit it, was thought to California moving kind to session California, big to come at was consumer into BJ's, a we just bounced about. and more Tom going some we view is back

right say saw I quickly well, So as seen I we've of now. on is more said, in And sales we this always better August, as reverse lack as of are our here it had a, come think California last year as we for look, a in it this in much XXXX. where October.And dining calls revenge term, our

when we to about QX, Tom, if anything in add know, that you where frame.I sales want don't we talking Just were like in that? our July at to time were reported

Thomas Houdek

sales covered Greg other it. hit one the prepared the around looked and comp. our of periods, same of And the most aspect, the I this was we mentioned just months, the through the 'XX And it cadence each remarks, each at in -- think we we step when pricing where through back from we 'XX. of when we September dip was on took a a of little the comp bit up. round consistent. And X-year at September, the very round our the we saw had pricing basis. in We rolling And saw it then end

the have was a was that as pre-COVID. it to on the if following 'XX very the same it closely we would patterns So basis was expected seasonality

evidence difference the quarter. of all looking XXXX in we're the the So was pointing the at seasonality that is to

Nick Setyan

nothing trade-down, rates, kind consumers anything you're that attach would of imply becoming less more are a of little terms seeing So cautious? in bit else

Thomas Houdek

appetizers, no both is this menu, to our there's as it as happy the go value the hour, period. through any the beverage, some management we consistent looking Brewhouse looking 'XX, the Specials.And value-oriented you well And by weeks the be want looking the it very poll there lunch sides We week, our also and see rates, of our that to -- if year alcohol, as right. That's last looks we at and by things check through would seeing selling, on. more things the and week, Pizookie and incidence it daily is actually

So those signal consumer back. some metrics that would pulling type types of or no the of shifts check in management a

Nick Setyan

seasons be benefit to QX Anything the in of versus might terms that impact last year how holiday of? year and this or aware

Thomas Houdek

will Christmas so fall a year, versus last to Sunday. Compared Monday a on

XX for a benefit there's So basis there, be all-in the for quarter. points might but modest that

can might at we out Veterans QX Day not in promotions probably little swing of little that -- or dramatically. year, which help, there's around Day. a a differently There's but some like So more a New very Year's falling be looking

similar very all think, to up. I a quarter in, lines calendar it's So be going the as

Operator

Brooks, Company. with Benchmark The comes Todd next from the question

Todd Brooks

longer-term out guys originally start 'XX, could few to this the that's to $XX I've thought cost you there $XX take opportunity of not if with encouraging very Tom, versus further you I guys this into about that maybe what's of we off point. million, If the as could the know on we're an and got news kind looking you, be harvest? million was for into harvested talked a I magnitude end you a what going opportunity here. saves.

Thomas Houdek

that team the every meeting opportunities We're more We're to still time we vetting yes more are are find saying we're the opportunities. increasing and but as coming everything, in. scope new not to a

still said, rolled of it's or now $XX to and that in some form be either some more that's been rolling as There's million vetting. accepted still in. So we waiting term have of are out

what in is So we could to of number don't $XX it have at that in XXXX, going to terms be we're share be higher. but now that million

of initiative keep right executing continue So cross-functional it.But as It's we're And of to it even way. we're some all and keep that to coming against. them adding margins have this when we the out, get are we'll doing focused continue on out ideas and to continuing good team a everybody keep really that some that growing the ideas to going keep costs rolling coming new great in. updated yes, encouraged by you we'll and we're

Gregory Levin

the to we items that. a obviously, great kitchen. to And It's how that. areas even We've versus just We're such other add maybe items at top to that got looking costs. to efficient, and, more things can using as the $XX in a it's continue have different productive about with the it, or but process, Todd, Tom looking down this one run make we that help to to our Greg, and Can we'll in consistency. other to flat grill. is have not We've through we something continue versus that to as [indiscernible] cook at think that I same us.So reduce some to perspective reasons more that business with. more the got, us this creativity only, continue time, million, we've in continue more figure out of got we move at talked area to ways the go continue peak than our that we

Todd Brooks

for one then, Okay. Great. Greg, you. And

to streamlined think, menu new items, going sales the there in what from taking off you menu? I hadn't you a experience across launched, sales same-store With the Or the them some menu. constructing Once that much in was of seen back menu, sort headwind moving same-store of hold? did the tests actually new the of to said, fleet some full the streamlined impact

Gregory Levin

at we the it we streamlining what didn't fact do So as efficiencies, the holdout significant our so to because or one forgetting did held. and seasonality in it it that some like XX looking it work didn't But in how looked of but there the test. didn't burgers played just the how seemed we a to out tried need changes of any went do to to things all from into of didn't and see forth. restaurant we XX like look operational we July, need was regards salads to area we And driving other.So restaurants,

to into like shift As we guests move we'd things we those we moved on, filet that into. expected. have we or categories.But guests time, shift as seems the down, different At expected saw overall, into like as within them it pretzel same we put a what saw we things held put the on

Todd Brooks

are an One, excuse, exposure, out operations?And us X had follow-up the then secondly, touched don't the that I I you get you quick the California way in with And but and guys use on great. wondering, questions. mean, in a then market. storms/hurricanes a may just on you late-night business, the I full wondering additional That's of you have on to won't California just hitting lot weather August. can tropical as we there with returning impact? update where it impact know fleet tease what this was is on And to

Gregory Levin

it's forget my went while. anecdotes, hit aren't forget think But down. were tough we, like, recluse did obviously California in what entire of you a us. to a comps used tropical was been storm, I'll the It us a I literally because I for, let give It because I weekend. -- our I'll weekend. like, some that

those to honestly, you like, so it storms winter even made going just people of the that did house, and I think much come the been that. difference. the back time.We'd that, of and that and quarter.Late-night, to came that restaurants. itself, hurricane in I had get just then out not of far seem are to in yet Florida had out Obviously, bigger there though, were we the we're and rolling through rolling it's Tom, seen like we've of we their we all is have of don't if middle through, or impact on everybody didn't our if know, because still both

Thomas Houdek

you we're to makes take really make back hours until thinking in the were are open dollar of if type to going So the X:XX were we accretive. sales and be have right margin that the sense the able added We're where that's and and we morning. drive in sure place margin, still late-night, to not Fridays on we pre-COVID, to Saturdays, the when back

So dollars from that the those well just great that's done most we that's the outside restaurants one percent a Sundays not through but Saturday, Friday now part, the of been most to our as And are the and not the have midnight. seeing sales, as of area very margin extra Thursdays, back success, for getting -- yet.But actually the sales. for

XX:XX do it get midnight, to in and XX:XX to also X:XX that it in that to that XX:XX hour. but builds last You hour, XX:XX

there.There's few to for in if back that, still really not just restaurants, haven't determined go have back But it midweek least return nice the makes exploring a part, and X:XX that analyzing midnight. most Friday that Saturday. we seen yet. we're on yet. sense, some And we've But restaurants the some that and to back that to So added at

Operator

comes Blair. question with from William Sharon next The Zackfia,

Sharon Zackfia

that happening that. I paint And I is know I'm there California wanted favorable next fast back guess directly you food terms wages and increase scenario narrows somewhat maybe this you labor would up be I cover gap the hike to where there is in take year. market you obviously, magnitude guess peers? much price and a full-service, you've to of to your that's any wage for way impacted, I where limited-service any the limited-service inflation test as to this order where full-service between wondering, than case everybody going alluded less the would of but I points? price have of could to go you're mean, a that not impacts seen

Gregory Levin

front question. team a room tips got it's in. members, obviously, the with coming great Sharon, the house, the dining of And you've or

street and in general $XX" restaurant a restaurant see or Wages saying food the sign be range of in over that tips put those fast to our area. significantly with outside So then driving people And said down our most can if that, impact we've $XX-an-hour California. not even And another a at over close kitchen that, there. already not "Starting is the and really we necessarily

closer to inherent you're prices this, an going in times we're at which their that fast casual also dining.I is, think, benefit to from and that getting that into drive do food, think your that different experiential casual regard, I see that and we've still experience, I trying their dining a restaurants raising So it's and because think prices want experience to guests guess. our already more there.I got of that to point, fast

off-premise we're to better, do not always sure the to price, continue to trying a not differentiated obviously make what trying on will we is off-premise. and if be have not range versus if We we're fast at don't with ultimately, going minimum at them, wages is the if billion-plus if minimum trying today. $XX food, Theater, to want them profile, that business not and close to I $XX, experience. comparison.All in how if got food can our that I've look that I comping want to same of But it I drive had $XX that again, and being sure guests we're we look wanting know at Even is driving differentiation we're look already is have Brewhouse still certain cities more an are get it's hasn't know that. said, tends sure pockets there are on market and go discretionary line And and we compare I'm give can sometimes make a a industry dollars impactful general driving people in where wage been to of benefit sit-down think after.Now guess, in that to items, that top that to it and to people's as want out to it sales. I they use a to versus, tend off-premise we

Sharon Zackfia

well missed there I Okay. this, I further are where that call, seemed Are happy hopped go in doing at you Or rationalization point? July. to you you pretty And then are rationalization? sorry the on I pretty menu if did another to this know thoughts

Gregory Levin

And to there. same I we've right personally. important that Putnam to stay differentiation.We do Chief But menu And they're and consumer down, what Vice sure with think, to want being our our on disciplined a Scott to that know love Innovation to guests take the don't and where just great of guests and of our watch that of the We've as continue Officer, our the only is items research President create off forward like that it. guests. it And making Growth menu. that we a items I know and got of big, watch fear continue chunk variety personal items at to take into down thing. that That's time, way to come we drive new unbelievably another have so get Rodriguez, need disciplined there's by missing Senior out. our I off.So big we we certain to our unique, that consumer that to to I've continue to our result, and traffic variety really is would breadth Shin, did, we'll kind to BJ's have Culinary, do can breadth we on but LTOs from restaurant on got actually ordering got at disciplined go would going But on can continue where stay we like and -- if

Operator

Teddy Farley, question Citi. last from today with The comes

Teddy Farley

Just one me. for

and share what around at repurchase quarterly think that had program, about you continuing the return you're the about restarting your you As pre-COVID, dividend capital thinking of thinking that all? is if

Gregory Levin

of have something up we'd it's board Teddy, directors. our bring to with

very and I look, think to going amount that is back think XXXX to to together right in ability strategy the to the right is a EBITDA that at confident and in continues trading, company, I of now I now position the and stock and that beyond increase expand management X% and and but to flow our the program, both of are cash program, valuation capital right I'm XXXX think return feels share one determines to and repurchases its continue at its where least the to its capital way restaurant we margins. capital free build new that a be we're significant shareholders.As X% CapEx to generate put continue not

back to our sense. got are the I time, each that of what's think we thing. here more returning something that at out shareholders.Dividends regards we think good quarter. certain you've And think do it's the amount more makes approach in look actually today, I being look capital that, buying meet structure shares discipline the because figure right a opportunistic same to within to a where I to capital as discipline At and is allow

Operator

Thank Thank concluded. attending The today's you presentation. now conference has you. for

BJ's Restaurants (BJRI) 26 Oct 232023 Q3 Earnings call transcript