BJRI - Earnings call 4 2023 | BJ's Restaurants, Inc.

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

Operator

Good afternoon, and welcome to the BJ's Restaurants Fourth Quarter 2023 Earnings Release 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. welcome and fiscal webcast. and investor fourth everyone, call conference afternoon, to XXXX our quarter Good After our our quarter. financial market results the closed for fiscal today, XXXX we released fourth

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

Greg Executive turn And to Levin, We questions. we will and call Chief I take which from Financial and call Levin. that, Greg? will our our will remarks today's with Chief Tom after Greg over Officer, start prepared with President; Officer the Houdek, your

Gregory Levin

November. benefit our ambience quarter are year-over-year and people continue our expansion level margin welcoming as comparable operational contemporary remodel sales in we around fabulous our driving These you, restaurant our to excellence of sales BJ strategies positive strategies Thank of the familiar at Day a has shared gold another initiative initiative, on and initiative. through through Investor we Brewhouse culinary Rana. delivered made hospitality standard from and focused

overall also through margin and Our savings productivity initiatives. encompasses expansion strategy cost

beating with of and we these quarter perspective, together From positive enhancements our solid year XXth more XX.X%, prior have restaurant expanded restaurant as and shareholder representing evident quarter than basis consecutive increase XXX Black in We were many comparable of Taken of quarter. EBITDA adjusted restaurant of on the Box. fourth foundation value. generated margins which of is the by for established to growth $XX sales X.X%, a was sales industry fronts, from success an points future a measured the already our and million

improvement fiscal Our XXXX more level last benefits million to these XX-week in improved related year approximately to year-over-year gift basis even Therefore, fourth fourth excluding included by gain card that our year year, in breakage the in margin impressive and quarter. increased are $X.X restaurant by onetime and a was points XXX in quarter. margins results a XX% last from adjusted the compared EBITDA

XX% on year benefited For week from fiscal increased adjusted and for reported of XXrd million, XX% than gift and a breakage $XXX increase EBITDA fiscal that approximately the XXXX. last an year, more basis adjusting full card than more the to XXXX when

yield improvement initiatives While strong XXXX further this the to in Tom more will detail, in in will benefits discuss margin continue results that generated XXXX.

with to outlined our fourth what points quarter margins from percentage increase rate levels, expand this we consistent to in the close again the and in our We expect mid-XX in gap year, prepandemic exit Day restaurant presentation November. Investor an percentage level further

rolled noncore our removing out that strategy some Our July familiar past made the menu, Brewhouse of added fabulous this began items we menu culinary complexity. smaller as

move term, new to member fabulous be While this regard, and forward are BJ's in our allow short In menu and execution made fewer satisfaction. items while menu improving approach the team sales forward. to innovation the with difficult items business familiar new this Brewhouse for right comp grow can is it the moving

rate a prior highest community menu incidents We and we Pizookie of and further execution. of changes resonating promotion focus allowing XX% around QX, during core our team to to XX% attention In with wow pre-COVID our shared member the improved in to and seasonal price any managers and to our bringing our period. Spooky than had less now the increased our are ongoing time our The are overall in to which overall our with of incident the $XXX us for workhorse average X-year point. and entree investment year made workflow, Surf&Turf culinary our innovation menu and guests, Pizookie, our strategy, October menu combo and on November, Our our compared the added includes and investments upgrading visual to members sales better value have for cost improve items Dessert our the approximately team both weekly levels, more training added and business. team stability hourly

this atmosphere helps our of ambience. liter will restaurants, a our the half or sales believe can contemporary, differentiator program remodel that career was food. Guests we we XX in full-service about restaurants aspect XX advancement have This restaurants of synergy We Through to do In more opportunities. in to be we overtime this our BJ's either a XXX traffic. casual quarters one the created strength complements of drive key hospitality XXXX, team our restaurants which remodels, research, with remodeled tremendous expect costs, is helping other has led bench move hand again, reduce know newer training that our several expect and our following right members' has and that gracious relevant use know fiscal want Promoter dining synergy delicious remodels approach our improved be data we end and of and and restaurant direction. margins completed our better than prototype. and in we remodels peers, fact, Scores By and least to XXXX, In retention Net at in our year.

is us leverages way continue our top to fixed for every best sales, While since by sales line structure. the cost margin growth our the elements dollar of additional driving

laid million X-wall out last standards. to plan also our $XX cost opportunities margins a least of our will that benefit savings maintaining quality We at year identify operating while restaurant

now unlocked and have savings We an basis cost on operating labor and we million reduced costs. over $XX food, of as occupancy annualized

find will margins Going higher. additional move 'XX, to to we into initiatives fiscal further our that contribute restaurant-level to savings expect

sure manner best Chandler, We restaurants, opened also continue to our In make and our is optimized to XXXX, we new for open the in Arizona restaurant. relocation a shareholders. driving of balanced the including X portfolio restaurants return new continue our

of opened upper an since our run more well XXX,XXX rate XX% mid- restaurants teens with higher than annual average. sales than margins weekly exceptionally doing average, Our average or on system the with to restaurant approximately XXXX are in level

Going cost prototype investment our to our refining reduce by same reducing around cost into At $X.X XXXX, million million, net of we time, to allowances. further the costs plan will landlord builds another bring of new for working down investment are the with $X by our $XXX,XXX. on goal investment which approximately we the

same the XX% through At and sales to is business to plus and initiatives. to time, to cadence in growth the of we X% through X% expand combination long-term sales low a in this drive mid-single savings comparable unit margins line range and leverage digits. Our continue in the sales top restaurant productivity

new generates focus performance, the Based throughout enhanced footprint a business by we value. solid continuous cash we cadence shareholder and provides our to concept can guests restaurant the and Our into flow, our on the optimizing on financial that significant which is know this time. BJ's us opportunity U.S., free over double translate welcome

restaurants reducing tenant our that the quality million year. on cost costs are new and to in $XX strong XX always at continue it to least this do this returns to targeting and our total we point, that focus as restaurants with remodeling X new maximizes we've of restaurant going right now continue investment CapEx the to However, restaurants, to value. net as the plan range, at we shareholder investment investment drive said, including we allowances, we right are improvement open year, in To

can this reduction. we shareholder of repurchases debt We flow share $XX enhance or expect value that cash through million to generate over to use year

increase provide at today, our strategy has our in EBITDA we free open flow the to shareholders. million growth repurchase of approved strong right $XX and and growth confident we to Directors of margins, new capital grow expand To cash will pace our earnings as for solid return sales, an our profile our Our point, to plan. this Board increasingly shareholders are announced restaurants share as

quarter detailed and over to Tom it provide turn from me Tom? let update trends. the current a Now more to

Thomas Houdek

the in quarter filings of will Thanks, with and to this Please uncertainties good afternoon, I some Greg, risks everyone. our is the provide commentary views. details statements subject forward-looking and forward-looking as discussed SEC. the and associated with remember

averaged year's from For weekly quarter, year. reported generated XXrd the perspective, the of than X.X% From was over approximately and higher on prior QX $X.X million million, and restaurant last results. a we of sales which the a benefits On X% we gift per breakage comparable basis of basis, $XXX sales year sales removing last week card when less the fourth by X% a the $XXX,XXX restaurant. increased

in improvement with our BJ's quarter. the initiatives Greg in our efficient strong margins conjunction execution, Our from restaurant as and just improved outlined, margin savings helped again cost

level efficiencies. was ongoing gift of restaurant reported again than cash benefits ago margin a week, which XXX in flow was better drive flow sales basis our on the nearly XXX When restaurant basis than to adjusting Our basis. and card margin breakage QX, year, points in a XX.X% higher XXrd the was initiatives our last cash year demonstrating level points for

XXXX. XXrd cash the for the year benefit week. EBITDA GAAP We approximately XXX improve, X.X% the quarter. breakage prior $X.X on in the $X with excluding from quarter, basis ago QX flow and of margin was even a our year net sales a points again, which from XXrd twice the by $XX.X with of continued levels a fourth the diluted levels. share were gift card XXXX million and was in basis million we reported net of adjusting card per $X.XX income gift to for in As breakage a week were QX before line beat Adjusted income when EBITDA local result, that restaurant million higher dollars and and

decisions trends, promotion, Black weighed more comp detail drive casual starting made Day sales. measured industry strategic industry. November which follow changing by sales, Veterans our certain but margins, our profitable the Box, benefited We sales dining to overall patterns including in November, decelerated and sales on QX on sales, in as For

in spend sales. reduced off-premise for also some of expense benefited November, promotional the off-premise starting at which We margins

innovative of the and in Late served We our of with on-premise BJ's our fresh from quarter. to a is great experience remains investments, sales business experiential to as with the up and drinks on-premise digits that sales creates intend strongest, best level is single that time kitchens profitable our gold for guests majority brand, restaurants, prepared drive in our of focus mid-single which our and driving Our an brand comp we the performing strong by is low standard most where daypart growing business. the with help energy direct QX. channel positive comp our of low night on-premise experience more the our off-premise food business. can by such, our elevated service, our affinity is remodeling differentiated over on along believe digits will This bartenders. most

innovative established an brewhouse by continuing while Our in fabulous advantage reinforced the bar is statement program hours a on drinks. adding focus and this late-night with competitive BJ's. and remodel authority and more create daypart through to operating XXXX back a core serve creative We and food for

trends. more to a of continuation has the and winter guests impacted cautious Each degree the first weather, by Restaurant at more materially Moving along weather has have recent week consumer. sales that weeks X had in some with been storms kept XXXX inclement of of home.

aggregate. digits The first sales in down mid-single are comp weeks, X

sales beat and area QX. improve that the to expect single-digit year the challenging Despite worst the for is Box. trends Looking year weather we Black assuming behind the comp weather ahead us, low casual the continue negative to in comp quarter for sales the the when winter to full the dining start and compared to industry, of in we

XXX ahead sales our of is couple first through basis of fact, comp the February. of the weeks In points approximately quarter-to-date industry

in now QX. level have to margins. $XX savings restaurant to our higher mid-XX% allowing realized the Turning eliminated the we annualized additional on costs us cost our basis, is in to margins We an which quarter, $XX million than more million original expand fourth of target, than

As year, our using quarter point starting year I as would for reminder, a the QX margins modeling for a full our fourth margins and margins good a as suggest proxy average margins. serve generally XXXX throughout

gap XX% by encouraged progress being to our our in to are and meet levels. restaurant We able surpass closing our maintain then the and XXXX continued in confidence margins historical of margin

expenses. to Moving

fourth hour compared compared date track, sales basis optimizing the favorable strides quarter, of our our year to and in the that about savings new made at model. to are the refining and additional fourth with simplified program fourth last was been prior points Our of level our quarter, metrics traffic was XX.X% and points cost increased our driving our our inflation and prep initiatives. favorable QX the efficiency savings year. a for quarter expenses would basis to or deferred this further linked the in and million sales items. unfavorable XX.X% compensation Labor basis XX quarter. in X% meat compared the spend awareness of the the marketing quarter, restaurant was operating labor our to was $XXX,XXX in quarter number we the effectiveness XX were cost was have of quarter-over-quarter, our operating as year was with the as sourcing, We initiatives kitchen per and approximately G&A our costs of levels, XX expense than Food build drive benefit points higher approximately well costs to period including G&A which to restaurants. teams the were of down compared improving high points in year XX basis pre-Covid year. from sales deferred which respect than plan by part cost Included which ago other basis We $XXX,XXX benefits offsetting points were labor fund XXX was down and requires XX.X% more by menu performance to hours. points which on in labor in favorable XXXX expenses to of compared labor Food than quarter. compensation quarter in driven last of full to basis efficiency, to in items inflation in better XXX last A $XX.X Occupancy more less when QX. X% without illustrating

this As our offsetting an a in and noncash entry is other has a income item line and the reminder, expense in P&L.

in We G&A pushed quarter. also these items had extraordinary legal expenses the of original fourth approximately which the full year our end of to million, guidance. $XXX,XXX Combination at high our X $XX of was

debt to a during million balance and $X the management's We Turning These lower of of longer-term up balance sheet. to million through $XX shareholders $XX $XX the quarter which with BJ's repurchases than Also cash BJ's million, of of and free program. the belief growing a to ended balance a our QX. due net QX our of fourth which was value our represent each We share with QX cash end quarter, shares the fantastic ended flow. share to end return capital confidence prospects. million, growth we reflect our in repurchase was the of that from continued debt

and has quarter, stock the we of repurchase increasing XXX,XXX million. share million. approved fourth strong of Reflecting flow, cost common Board our approximately a of program shares the of expansion repurchased $X.X by at retired During the cash and $XX Directors operating an

CapEx repurchase payments million $XXX CapEx for related the XXXX we after XXXX our was Included result, asset in timing related $XX approximately was proceeds. authorized to million $X $XX Total have currently of available projects. million share a program. As under million

loss our and the Excluding line. in and of quarter, to and noncash XXXX million required losses asset Also the restaurant, $XX which range, XX in disposal XXXX of underperforming million CapEx new in projects, $X related this planned opened was the in includes X closed a disposals an we restaurants fourth which write-off remodels. impairment on restaurant

due QX, of first comp the the and expect in we the expect said low through through expectations, be margins negative line in margins grow the grow to strategic to previously, to accounting in Factoring weeks. low level impact initiatives weather-impacted as near-term recent to on winter QX months We expect for range expect We despite progress during year weather still trends restaurant deleverage X throughout to top margin the improvement weather. from the initiatives. we I additional the sales we in from QX flow expanding in do year-over-year single our margin impact then the XX% and As continue quarter. sales in the XX% part cash digits

Our to year close the restaurant-level an XX% exit and to margins. XXXX cash flow margins finish gap goal with approaching is the rate

For in we and to digits. to low XXXX, the labor inflation area single-digit flat in single mid- inflation cost expecting are the food upper

For $XX XXXX, to we million $XX are targeting G&A in million the area.

and cash CapEx to additional timing share restaurant new and net debt includes with with restaurant BJ's, during limiting are improvement outlined to to to spend disciplined accelerated also related well capital flows new allowing approach million economics Day, November repurchases while growth take its to Consistent allocation We overall approximately shareholders guests X a to restaurant guiding reduction. This expenditures. of use continue shareholder serves and and the growth restaurant costs Investor enhance existing new and our relative growing value tenant our which remodels. allowances, our XX approach restaurants us we for our through the strategy $XX capital planned

million financial $X less than restaurants April, scheduled new Wisconsin additional cost X designed which planned our be the restaurants. Brookfield, enhance to to for shareholder margins and healthy a will XXXX initiatives value. prototype, significant to execute fiscal In flows approximately for sheet, multiple new our the expanding Following to improving with operations, opening is our cash build and we balance have recent flexibility conclusion, new from

delivering on initiatives focused shareholders capital openings to and approach value are disciplined returns. We economic strong our to to allocation, on sales restaurant productivity including continue which and new both generate restaurant remodels, through and for

clear path have continue enhancing ahead successes now well We you consumer up us our open long-term your time questions. a for Thank and concept BJ's to position today, and on growth value. our building and your the we'll sales margin to and to call and strategy Operator? shareholder for strong the appeal

Operator

time, question-and-answer session. this the will roster. we pause our begin We momentarily assemble [Operator Instructions] At now to will

Prause comes Stephens Our from Tyler Inc. first question with today

Tyler Prause

walk the we through components in how through price? should 'XX. Could that us fiscal traffic you sales same-store please year about include and mix flowing And price think

Thomas Houdek

Sure.

So through in the fourth quarter, on and check bit we what X% had flowed to pricing, little that's the to of check, mid-Xs. a around X% about less in

So about traffic X%. was down

kind that the are build those So of QX. of the X.X% to in comp up components

to XXXX, -- the less forward we will Looking to taking be price.

in if after X% pricing the continue come in the you a of progresses. year expect QX, X% So think round the lower more in January. And to as to it's pricing carried we to range down that

Tyler Prause

you grow Investor an And brand Day, at to the your mentioned awareness. opportunity

versus XX% As doing close what peer in and awareness about XX%. this we to XXXX? to Can see of more might a about XX% your little you're set you're unaided about what bit talk you gap

Gregory Levin

Great Yes, question. this is Greg.

the media TV and on will more in We be increasing on specific side, linear Connected markets. some actually both

Southern few a So going on third year, quarter really at in of our even time California the was actually, years. last television in first end the

one QX going having in then the half. second X and to one we're in So flights, end up

be this which market flights frame in will that in start and will we've another of the kind of the streaming Hulu Our well linear actually the TV, versus added more April is Connected services more as on the and time TV. year,

Tyler Prause

about of How just the guidance thinking units And for final appreciate we here. I one in X unit XXXX. should growth Very follow-up year? closures helpful. the be

Gregory Levin

for probably as our before. make closures or optimize Yes. are the somewhere continue We're at X want to We've to sure this that looking the said leases portfolio. continue we to in to X year we look expiring

got the years a I and XX been think the year that closing the our And XX. and then the we're later, X end one XX restaurants. case, of were a assets. ones said, BJ's in good of we that this one has We've Day. gone out never really we've said list is or at terms Investor closed coming restaurants, of to has lease actually concept opened of that their smaller

year, we a So end the only the there's as coming it look close. result, be that towards And would a are we continue that as few lease to to X towards term. of would I next think X

Operator

Slagle Jefferies. is The question next from with Alex

Alexander Slagle

growth Just maximize continuing disposal, allocation with million your dive more the sounds at profile is options how to It weighing to the the bit $XX on clearly, new table capital you're buyback like a store ahead various little in more. views a push your to and you're new authorization. for return the accelerating

a things curious, build looking on high-returning investment new So continue front down some that the drive profitable, to to costs of the store more drive you're at and profile.

Gregory Levin

Yes, Alex.

So into going first we X this had restaurants. of all, year,

have restaurants, high, Arizona our bid that newer needed decided And will that time market. we and in the one being. be prototype would for to our just of the came site one -- one the do push of back more be will a of lot frankly, to other was One we the there restaurants work a

going pipeline, year, just where have instead I felt year this that from maybe as bit we some say. And flow those look a into into up free our estate should consumer do full pipeline, into a debt move this end would share more go it. forward or our debt going of is repurchases real pushed real little the repurchases we that estate cash payments, pretty So to we us letting to or XXXX, giving trying

important us. through We restaurants. our guests one things certain That learned going of such that allow us. for versus differentiator. so same have remove restaurants, business, the strategy look to and so elevations to time, costs. forth At is rounded understanding amount we on have we've us additional of Concept kind continue to can of right Essence angles a a that come It's areas different the our believe our we some visual As are still why our at we in

we there continue BJs we So play elements statement. we hold that to as into hold certain us and we -- the make of line sure a allow make our build the But larger varied portion We we bar return. very costs to sure have the that investment want right other menu sure want are to profile to will to that some the forward, reduce make it. have that our right and the generates

Okay.

Alexander Slagle

And if think. returning on you the think next which the remodels, as curious are batch the were I'm really I going XX% good to in high be 'XX, as did you ones,

Gregory Levin

Yes. they're really good over restaurants have we Well, this time They year. ones gotten I believe -- some have tired. high-volume Still slated for some darker. have that

we As really to up. them we lighten said, want

as of generating on they the plus, lease. so their they're volumes And look in cash that and frankly, based still through a age. there the XX are amount lot volumes, of we through the and go high well our left sales life as flow sales there's So the on as

ones. for about the program that past. excited just more expand the or boot important And done visual the have of as went before, one other bar capacity learned, and remodel that the I'm adding of through So doing cues in statement we we are talked the a those versus we some things remodel we've that

that really are in of we area. more that versus bit of Dining little around a last actually us year the gives guess see some targeted remodel will that we remodels this a X did So

Operator

is with from The Brian Oppenheimer. Bittner next question

Brian Bittner

also grow November, did annually Day we long-term to like the look your issue 'XX, you And XX% it your algorithm into in XX% we the back at into in there's seems low by over mid-single-digit look just favor clearly like time. have as clearly algorithm As But on EBITDA Investor a looking the to this on comps, EBITDA, year. it's there. this to momentum going visibility which are margin you predicated less

term you the the it about thinking on together Do for safe is XXXX? of and being you we're in takes long puts you 'XX, when positioned kind EBITDA? think So put algorithm think working year do

Gregory Levin

Yes.

We that growth. opportunity on or provides Brian, and that specifically, And and think, improve to November maximize about we've the drive and to absolutely I we restaurant need think said Day, you're new that margins, that Investor sales. to need is optimize right. this,

I think us. initiative the well is margin for working improvement

We we and to fact expansion this keep normalized. We're that have chains seasoned frankly, our year-over-year. EBITDA growing and expecting year. members have supply coming just forward are operating that expecting better margin But are more going savings and the team have

at probably guest seen and brought frequency a back and we a some little we year, when where impact. And quarter, January, our comp been the look of of As weeks consumer. weather some we've been bit we been have the look and insights as it our information where low weather this look on us hard little look fourth seen look the the impacting of weeks have, And we digits the lower income cadence, at into that's less this And at start digits we've there's as pretty we consumer we part a the consumer at of slowdown in there's that the been with at that positive. bit single first sales they've mid-single negative. consumer. seen We've

So business overall sales plus our earnings again, our in business, margins cadence, I restaurant feel new looking longer our good very to drive cadence for at term. about growth the

opportunity I think that to continue the to in if the here comps up open continue us it's second little going in be the to get quarter. direction restaurants. to And to single-digit new and optimize a first right I quarter, allows in us the sets this to to move back bumpy things think

Brian Bittner

And [indiscernible]...

Thomas Houdek

that, Sorry, Brian, on I'll build too.

exiting still from added it EBITDA the with of very we're growth. have more margin on new great still But the really EBITDA think growth that margin as top still we -- earnings predicated openings building but different much there. sales is do we of expecting looks I terms going of the and mean, it a $XXX you to will pipeline the we're this terms are new us growth. and algorithm will just expect the The get sales then. in comp earnings and too, continuing there through on additional just to a in XXXX, have midyear do growth, in margin a place as I and -- year growth In This EBITDA complexion we're as growth later, of XXXX was some place and improvement, in mean like the year be be rate, I benefits growth outlined, little healthy It's growth of million do in and I beyond run restaurant in rate better starting a on than differently. restaurant well little terms both build getting what to puts our think

Operator

question with next Sandler. is Piper Aisling Grueninger The from

Aisling Grueninger

My question on the is process. remodel

You this projecting than were And to of XXXX the north sales less units XX just around I'm guided lift XXXX, because great you wondering so you from remodel projecting decided said XX same the you've kind as why believe units. at of Investor units previously getting you're a number it. I year. you're Day, in

remodels. wondering number impacting just So why if not there's accelerate the of this and something

Gregory Levin

Yes. would we'd I same I that. the Investor about talking be recall XX-plus remodeling the we Aisling, be amount. we recall I'm said not Day. don't sure that at

really to been no actually there's So that. change

do our capital through not remodels everything, So planning adjust and down. through went we we went our this as year

year. year on one -- different we'd remodel it if or we concentrating is we're and going to I'm area, remodels. I are maybe year, we little one remembering but reasons theater from XX-plus that bar. the in and X and we we the believe doing next one bar about you room seems it then the capacity, this ever Investor think more I think on Day, a Brewhouse So to of we the the And And Brewhouse And next to of X bar. remodels going other XX-plus, were didn't into dining talked focus expand differently, said year the bit that call that this the kind if which just plans, don't really on that about the bigger want Theater be

more So a ones those expensive. return. They are bit little are a better

we I did XX could where -- remember that don't versus lot had that year, this smaller we to do it that were of we have So been going remodels. we But did the saying plus. just what a

Thomas Houdek

we to going a remodels little more isn't -- them slide I at where We're so And that to less going complexion be showed from look costly we're to more you're you point, can about costly, to as bar. but the we -- going different, but have these terribly do the -- we going impactful well. Yes. Greg's it's do the -- 'XX to spend the focus XX%. to thinking expected is and Aisling, think different. on of just they of is see in spent sales are some And what spend more them pop the

Aisling Grueninger

prepared comp That's it helpful. very you a there wondering, comp on weeks off-premise first digits. mid-single difference of of health I'm did in as kind it XQ? just the in versus it's considerable the is My restaurant I is off-premise? is of seems hurting quarter-to-date Basically, the kind said other running down the question know remarks, in consumer. the just are X the

Gregory Levin

Yes.

quarter, that positive looking where QX to tends business, there versus trend in but a general a digit the to California comp rain of as little even weekend said think off-premise, weather still more right Really at room, expecting through -- I to bit the come first really we read low I single dining off-premise. going over now, overall a was into sales. into say impactful been has shouldn't -- the weekend. within at holiday the we're the get the looking It's hard be this impactful played

little into be guidance that our put to a bit tried we and So conservative.

where As there significant the But at had And lot I comp comp shut and weeks Jan, weeks positive the we look U.S. really that dining there I sales. of negative the as off-premise. we seen had our down are sales. were a healthier then -- we've look quarter, there said, the than through we as room, were the business,

double some generally, right unprofitable digits the continues section of spend drive goes down, grow. Some generate lot trying aren't and not profitable sector we to to now as double We've off-premise, pull money a -- to the to willing of digits. dining has of back in we're to catering But that to room. continue up is It's maybe grow and as as the mentioned, XPD decided that to we marketing come drive more up in XPD. the on in seen

Aisling Grueninger

for you Thank pass sense. color. back. makes that the it Yes, I'll

Operator

The next question Barclays. with is from Jeffrey Bernstein

Jeffrey Bernstein

on greatest Or the mix cohort, to deeper for you more performance a income change XQ really versus dig little it in can really you're your the menu? consumer have And expectations? This a traffic just behavior, you are just related I seeing How follow-up. more Jeff. wanted And I in seeing you more frequency? shift on is comp. characterize perhaps Pratick of would challenged where on out the internal parse within terms is the

Gregory Levin

Yes. I'll can Tom go add passenger color through this. into the

outperform. think Veterans guests areas, more strong seeing So our same. coming with less it doing for how October, some the the profitable much were industry, within of we room. to Tom quarter and restaurant, in and a we traffic. other in of less couple at we sales, want a I Day are continue When the out changes as decisions not into mentioned ordering but to handle We're mix dining sales regards We made huge comp coming the in discounting offsetting to the pretty and our result, in look guests instance, us the

mix negative. seeing are within are the changes, Off-premise incidents off-premise. We and though, going

less year You're seeing than they off-premise consumers where spend a ago. were on

seen So a year-over-year. then And some smaller size before, bit change. we've seen little that as I of said we've and we've obvious -- party

look slightly sizes we grew coming the of tremendously. QX when 'XX, at size our party And of smaller COVID, in the 'XX we a the look party coming it's at data out QX party party. So versus of as

starting where versus more see that lower revenge of income still celebratory, normalizing DJs. but less kind lot frequency And a and more down seen consumer mentioned would dining, we levels, we're we as above earlier, coming visits was have it normalize, much was. it consider the of to I there XXXX think I what kind at

Jeffrey Bernstein

one maybe, appreciate just quick And I that. for you. Tom, a

of cadence XXXX. us the make help Can a stable with XXXX. inflation you just something the were valleys lot not I In we're just throughout there missing and seems peaks the inflation to of want outlook like And that COGS sure big. in appreciate terms I more outlook, through the It year?

Thomas Houdek

partly past for of able that sequential peaks because we're have and in think historically fresh floated inflation On off you usually the periods if in has items of We're some now some lock some and not a of of expecting to years take valleys. time for categories. those basis, stability us year, our and more where times meats. like through -- them spiked in we're expecting Sure. a This year, the lot different much different

think to I with what going around. ended out we it year. that moving coming did don't where saw much So really you as really as we year consistent of see think we're is where the years to through the starting bounciness I pretty we're going here, be QX the through COVID,

Jeffrey Bernstein

Got it. I appreciate that color.

Operator

is The Sharon from Zackfia William Blair. next with question

Sharon Zackfia

think know been you but Greg, on something about rationalize done 'XX, see your it's what paraphrasing. been you far the or rationalization do good sales? harder even it's the weather-impacted, to it's menu impact I you margins. quarter think, fourth I said you did in for so has in drive comps in to I know when But comments an menu the

Gregory Levin

a answer per reach through those, purely complexity. in make long got meaning to high-frequency and just down. you're not for between sure at for both those trying the know with be that, analysis, the tend after time, it that or wasn't come substitutions better certain PPA in And a helping and necessarily make what that's I a time item, really items we something that business that to that, And drive decision to adding are see our start know we you long to what a being studying profitable and made quite set Sharon. a those really that that come a that look When And to them. marginal adding you it and same this your prior and the going frequency guests, you make did time for drive stops reach you're we guests out which for of items are reach know and you've get important number, to adjustment. keep and sure frequency margins went that to deteriorate manage business. rolling there's that's are or to And don't the core. change higher might we where I that items, up a helps Yes. then average have we see to and person

kept we showed the of amount longer item and analyzed to came some no actually x I'm actually on and actually item sure that I certain that So coming data bought not that point can guests -- anything was of a back. bought the menu an time

per doesn't. this data like, do years that sales going years, a we've on to didn't menu add to show XX-plus in and this. sales you're until necessarily adding hey, the decrease seems to business I'm the se. in of tends it So really then about But And something rationalizing XX-plus experience got

Sharon Zackfia

don't stimulate way to diverted. restaurants customers that have guess come was dynamic, wondering trying may was know quantified allude to if try that. use I into data have do in the on there commented to I that you individual I you something when any to helpful. assuming to if people for. you of you those you just That's to most just -- didn't quarter had loyalty been were I'm Yes. have the

Gregory Levin

do. We Yes.

is Our a robust loyalty program. program

We at every We weeks. to guest continue loyalty go this come to that every specifically, offers there, that the Analyst can to loyalty we through our they drive them once program. introduced a get weeks. once frequency them grow X or Day we if know can We talked come things other about X out from

and into continue us, So extremely of have lean to times, this leaned to year. program the all at we important into that and that we'll throughout is loyalty different

quarter it's I weather-related weather. the more of like hard it's business the a year, outside First on said, and this read of get much to

Sharon Zackfia

question weighed forward? mean going should me talked think you I weigh you. the in hear XXXX anything about promotions some notable margins of as I of back for last on pulling the Chicago. comps. about the we guess on is that I we that comps Is here quarter about looking fourth might there for think as you're titer on

Gregory Levin

sales and at Day, we Day. Veterans I the said, consumer, a up real our that in we on we're our carousel working noticeable you drive promotion We the changed Y we're just and a at to off-premise and big rather on business. the working chunk and every how an of aspect of year. yourself drive keep important to plus business, got or I said, on you through areas, sale, made there either third-party looking the to And the just what x as off-premise. on single at $X as pay hold X pay at to aspect out side going site continue is continue on move what's we ways in more were up get that's takeout to what have delivery more looking of you versus can amount where, to year There each strategic maybe you No. It's takeout Veterans x figure third-party big people do continue that's to different delivery

Operator

the with Company. next question is The Benchmark Brooks Todd from

Todd Brooks

units on $XXX,XXX. X the you've this just growth gotten million out on one, $X beyond First the the working unit prototype, another profile. of year

the do down, need As think there, get talked X% of start prototype leak that the I'm to to really about? hearing returns up the unit trying standpoint more 'XX? nailed to does that if is inflection from to we into year get and 'XX a And that to back the you've this growth we're the

Gregory Levin

probably cadence we've from more a way there our in built much we've just gone in is historically, measured the plays growth. because It BJ's

the the next to the efficiency from restaurants think is sales the continue The do standpoint from restaurants I But are want also one X Margins investment into new or talked the solid going we'd XXX to us cost that. both return I here, a We perspective. teens the on year. are We for time, move allows are now to emphasize to year X we accelerate to three, the us. ability from to to And generating direction following So us continue XX over this the restaurant returns important an build It in as upper right that is optimize XXX,XXX. I about move have that ability out but to think XX to thing our actually XX-plus us. to standpoint. being in range. up just

Okay.

Todd Brooks

And Tom, one you. for

you're the the generating drive over $XX of about talking attacking, much And story are further carries as forward to XX% as into went you're you're 'XX. for here? annualized saves million in saves further? Are cost opportunities pool getting of that your that talked additional you margin from Or of that to I How pool working we $XX attacking? to the think marginal XX%. another kind on cost more helping You really about course 'XX, the million incremental

Thomas Houdek

questions. savings we handle realized question Thanks, still there had of margin to the XX.X% that during the quarter, the your Todd. good And in think first first, fourth you -- the was cost if quarter.

So reformulated. there new was, for our for example, a supplier found of couple we and sauces, a

changes million an service some savings rolled give better in-house a there on Janitorial made some So were there. outside annualized going where couple it even out side back to dollars a savings the to basis, than and We mid-quarter. of that cost that we bring of on was

QX in weren't mid-quarter those So that were examples some of fully changes our margins.

and full So year talking a quarter a types a running impact be benefits bigger $XX that's through. Because of those an mean we're -- when do of it's in when full will basis. annualized I on million cost,

to going of full went have those the as XXXX see more year. question, big cost the And for in still savings. part some been for of of opportunities them we Many Some being realized were still do your on. second

another things of are so, opportunity. There's million-plus $X still type So it's some a of savings if number that billion looking at $XX -- it's or possible. we're

team initiative. know and very as still talking for So we've some time it focused still weekly this all. We're been talking it on about about is with well. internally I you the

finding So really nice it's savings. some still

about year. rolling and even out year, savings out that's of this QX. still just able roll I'm as to little go more through things being a But really system, are to Some that these in others excited we take seeing find the longer to still that our still ones some some there's we're where

Operator

Nick from is question next The Setyan with Securities. Wedbush

Nick Setyan

do marketing I as in percent G&A be you expense to if the you did guide 'XX? a 'XX sales? but sorry this, And for then expect what missed guys I'm of guys

Gregory Levin

ones. production other just G&A that at full had Investor about we and from And to this around little assets we was the we this $XX actually, for be and in being around year. money for to year. million can upper will spend Nick, I So about up the $XX last talk general, It million But is will talked Day, use some did year, X%. which marketing that we've be this slightly think year, somewhere a then I think,

digital, already standpoint, up them marketing from a we differently will be which connected et deploy little deployed while TV in means those it of bit a percentage So assets linear will can have cetera. sales because be social owned, and we

Nick Setyan

And now you're leverage sort you QX, talking of it. line type how you maybe sort especially margin for Got Can the low XX%, XX% about margins. year of of a plus that and just talk about to get we of level of the items just then kind year? of where expect terms different X.X% in

Thomas Houdek

a I would good for point to QX full a as proxy year. being

mid-XXs we're more little So looking coming to moderate right this expecting labor out food on a expecting the a cost inflation, side. see line kind at of we're on pretty now, the year, of

at QX really on being QX look as we work here, hold food starting was side, as to we part proxy a there. side. our the yes, So some of year. think labor good would to able and get good on But as we I think I that pricing, the Obviously, if the as would we we of in QX point, leverage deleverage had use. take proxy I is expect QX guidance the But little cost to started through a a

Operator

question-and-answer This you now today's concluded. attending for concludes presentation. conference Thank session, our also has and the

may now disconnect. You

BJ's Restaurants (BJRI) 15 Feb 242023 Q4 Earnings call transcript