BJRI - Earnings call transcript Q3 2024

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Operator

Hello, and welcome to the BJ's Restaurants Third Quarter 2024 Earnings Release and Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to hand the call to Rana Schirmer, Director of SEC Reporting. Rana, please go ahead.

Rana Schirmer

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

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

President with Chief take remarks, After Concept and will will We Richmond. over prepared your Richmond, Tick, Officer; to from the call by our I Chief Brad will Brad we questions. Brad? Interim Officer; prepared our Executive today's our followed our Financial turn And remarks Houdek, start Chief that, Lyle Tom Officer. with call and

Carl Richmond

and I'm ones shareholders. some Rana, that what at several and to those to strengths meeting quarter see be names I brand I and are BJ's I us appreciate and our in for see results. challenges excited hello our listening familiar our hear and dialing of you, about addressable. look for to readily to new Lyle and forward We modest you leverage in. number soon. here to talk lies ahead third Thank a

discovery XXX,XXX highest is and our the plans its for generate $X.X from the relative moving free brand, priority position Our serves This spending a a is a shape thorough annual week, over team to members $XXX million. X and a we of with well brand of and and evaluation as start opportunities underway, who sales challenges more investments. activities, of has urgency of in serious of are XXXX. We excess cash from dedicated strength than operations flow million guests and billion our

done, we to of can to and suggest observation permission a be our of current our there to work members good team have While investors. bit the be deliver and guests, brand optimistic is experience what

today. thinking take third one and We us we our all results, initial to earnings then will learnings that will a ask performance we look share year on taking our and XXXX quarter moment, when and quarter through questions. fourth question, more thoughts follow-up details limit near-term line the return and We report take fourth comment on will to details And The you queue. us X remain we'll of outlook here some Lyle of our quarter. in and questions on question sharing thoughts. your and then in the for to and our forward plans learnings your the one will to yourself but speak Tom greater full our

third quarter emerging our financial discipline. regarding and begin me highlights some thoughts Let with brief early

by employing time weekdays. support and our traffic The promotion, guests, that we competitive everyday set to point that featuring appealing and Pizookies a gross in price meaningfully criteria number during offerings Black significant a are limited third positive the of limited generated margin was Box feature quarter offered iconic approachable outpaced our

environment of on competitive value highly major we win are there a brands in more than significant space. competing have, we're national number demonstrating where players, a with spend this marketing are in we but can We what substantially

we quarter would much gains as did as However, third sales earnings we not the flow of through expect. incremental to

We generate And continues margin Tom us fourth that challenges. through and as stronger offer through and the to quarter, we addressed levels. will higher later. have those walk the identified flow-through detail expect

must We are value-creating deployment financial All our instilling a policies. capital structured around investment. approach a disciplined be and more

increase has we program value but believe have regard. results this rate we and success site in opportunities remodel our demonstrated to Our necessary the elements identified creation to have adjustments. the delivered, to good individual overall We make need the raise

current in Our pace new the remodel on with potential track the pace year. program the increase to remains fiscal

New a at all restaurant consistently investment return has not locations. hurdle achieved rate

strategy growth maintaining market our criteria while proposition. ultimately, as penetration integral to But value-creating our reduced pace and evaluating elements. results improve a these opening fine units are tune to we site selection are and new We

look high interim, which year exceed has structure investment matter. our assessing durable our our with look we flow In for flows on probability forward, we a learnings the to a opportunities. our business, cash -- our results As value-creating We cash are fiscal the capital sharing forward generating probability optimal capabilities. this

share these form changes. adopted leadership period, similar to funds the a was the will disciplined and this what of be returned to post excess repurchase in well-structured program, During shareholders

on to financial topics, into greater need we get XXXX detail. going-forward for So, but more to we before complete and our a discovery come to projections plans thorough our these inform develop

and and highlight rigor some me let for forward. With comments it to directions over observations decisions Lyle our we that, turn the his around financial take of initial these However, going thoughts.

Lyle Tick

our to with the and weeks the privilege Brad, to teams, of today in myself including I journey center and day I've and Thank to support my first weeks the about to I GM BJ's. several I've operators talked had started. attending guests. time visit talk conference, and our optimistic you, me. find country, restaurants X our accelerator who in more learning us great was greetings BJ's joined many into multiple a spend has Restaurants across BJ's, which everyone energized worked than with the for shifts

me As of through foremost, There's real in life to promise AUV no some Brad your are, competitors scaled members. a where build stand things out our is of like and with $X.X position and frontline sales, relative quite brought referenced strength amongst team highest a people initial to from BJ's some billion strengths starting powerful is brand advantage. and strength from. Through third restaurants our discovery over comments, the are his equities first to that your every in annual the phase, day business and

multiple This to seamlessly fill of our BJ's I in game, what's your is them players, ask to and thing questions. BJ's As you coexist time them change? And at cohorts I'm would part else? catching the as What's things could repeat out, BJ's? dinner, our going is that than friend in better fingers change team looking if with and visits. Number be anyone and work, reflected and easier about when effective best for high the out is ask a more family, and bar team build do section across occasions occasion. main ability the please upon, sitting school both make competition. team, we the to about a What a from There quantitative that baseball at needs friends to celebrations, I it or a a more one BJ's, unique it's girls than one group across members to a buy-in around feedback X in and by its driver catching is group make found part working and seeing And forward. real occasions we help desire hour night under I guest. the members, both qualitative group believe that best have the do and snap working spend better our culture can of guest two advantage the very win a us universally, is everything roof. about cross of freedom broad our and I a a large happy and the competitive have after commitment strength, powerful and a packed about you the

across AUVs, but current and us give right menu atmosphere facilities, our our going the for an than win occasions competition. in opportunity brewhouse more to also us Our is reflected this And forward.

Our talk strength going broad appeal real and this both shortly. a a and is I'm breadth more and challenge, about to

the respect headroom recruit Deal, area programs, to Pizookie I in with that and overall the this unique. drive about The This our and dollars on have the and market available and order that drive ultimately promotions and age beverages we're across these work, is dayparts media by to and term. performance craft be to for we days is and/or rationalize we Meal unique have the and headroom Deal, in very looking that and suggests relatively to footprint cohorts, affinity initial Meal is and line. an that ownable share a my create the Pizookie targeted consumer for where guests the of while gains bottom our priority need which more occasions. when in programs BJ's at for step The promotional total strong a short way observation relevancy think at discounting platforms discounting our remains recent brand still results expand our have they our opportunity outperformance underlines markets We the of is to saliency. Taking incremental and and should capacity and potential overall, significantly encouraged materially evaluation Pizookie back awareness like

downstream effective all program incremental hurdle. A good the it of of then I will is sign And leaning QX example drove check expected, strategic and It me goal it the to some P&L we but also to efficient. into in clear for the to respect while not ones is apply likely the Pizookie. a this and programming, drove expectations. Pass. beyond the Pizookie with would compression traffic, that programs as was popular be which characterize than pressure streamlining cache more this So good guardrails

need forward, programs of continue, filter. go program will it similar Going all if structural will through our reevaluation, this will and a

As and broad some areas highlights strength challenge breadth is and I mentioned, opportunity. of a a and our both appeal

more distinctive clarity will key BJ's driving our While and discovering, forward, borne around brand. of we're brewhouse our has DNA. still as focus out characteristics we learning of X be: go areas

to tend advantage. our uniqueness we to breadth are be brand. Number is clear be and a us not vote, makes drive and being generalist only important. an brewhouse national where on depositioned which authority the no-veto have truly competitive and what dining our to special We allow for ourselves We two reinforce uniquely will casual and known and opportunity as is

reinforce that drive platforms just work us competitive guide choice we easy drive menu want sacrificing ensure We for brand Our our without will through brand turf. positioning guests equity to desired authority our and to one. versus the and advantage that the are desirability

help Importantly, work complexity not equity. brand filter reinforce we do will also us that activity does the brand and

The third area delivering is execution. hospitality and great

I want amazing in bought base who are we our As an of wow guests. mentioned, team members have and to

appropriate. With an unnecessary is heard removing that at consistently from the and more time in through have having help data. the respect opportunity about with right opportunity leveraging easier hand-in-hand it from better where people them them to simplify perspective. place by an complexity, do this our right to data, that our simplification consistently teams have we're We I've leveraging the With right a to to them labor respect working we to both make for and simplification,

with and is which and fresh. utilization waits greater and my speed, walk-offs. The satisfaction observation, impacts for of bigger turns, table keep of and brand will the our area in continuing us help consumer will unnecessary the unlock to care this take elimination last be While the assets

And holistic brand to guests I and holistic what's brings equities. Today believer food It program have that a Another on this a refine our earlier, delivering the our than guest has evolve BJ's that and price and our while to the right for reinforcing deliver proposition, it. high mentioned, bar fresh positive demonstrated core believe and atmosphere. is research results, I'm worth a the experience strength craveable transaction. great guest of more ever, than people just have is their I a we being keep means about care environment relative worth more occasions and executed will not and highlighting delivered it consistently our to remodel across in for program area Brad together well BJ's win our to as is point. by based continue a mentioned who as we competition. suited strong value about

opportunity managers about time And talk simplify sharpen in to and that it our initiatives focused specifically I on to dive to the to and Our and energy Thank look will operations focus, plans. forward Tom team more our enable deeper members. I programs to the be in turn future and want our for you continue the now over results. you. a QX to

Thomas Houdek

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

year. For of basis, increased the a third quarter, comparable $XXX.X was than we X.X% restaurant On QX generated last sales which by million, sales higher X.X%.

share third worked traffic and Our in to grow sales, market initiatives sales-driving the quarter.

the the to COVID sales beat traffic casual points which X.X industry industry X.X% quarters. and by was Our traffic Box, driven X.X our percentage as since points. QX, excluding by XXXX measured quarter dining In best percentage traffic our comp growth compared when Black recovery our the comp beat sales growth, by was by

well was part an as outperformance sales value quarter. and September the Deal launched Pizookie These programs loyalty programs, particularly expand traffic the Meal driven such as loyalty and to in initiative in as Pizookie impacted that the usage. in third by the expansion Pass membership program leverage our June launched late Our in Pass and that Pizookie

X.X%, excitement weekday Ducky limited our offerings, cocktail. Meal of launched comp momentum Deal the our our in the promotion second with Pizookie We around S'mores through quarter that the sales Lucky building week built also Pizookie September guest such Comp behind built the as time September. and demonstrating of

margin margin as addressing, strong lower higher XX basis year our costs, are was a restaurant in in anticipated flow less cash which points traffic resulted did than We XX.X% operating which Our fully level QX, was we than restaurant restaurant-level ago. leverage growth percentage. not

$XX.X GAAP a higher million our incurred Our G&A. and dollar EBITDA in than a higher third loss credit. net adjusted $XXX,XXX a profits. Adjusted $XX was of than QX, drove in To in expense, of sales year, per profit million restaurant-level which higher other ago year million year-over-year EBITDA. We EBITDA are compensation net year and was The $X.X deferred a X.X% sales back share, QX back driven operating EBITDA $X.X added was ago. net $X.XX which a Note transition restaurant the to pretax, as diluted a which includes higher quarter. related $X.X million and non-cash was note, by is more were million better lower main item to than per fully basis approximately compensation million of income. variance our our that quarter, added leadership expenses of expenses was last offset loss which $XXX,XXX $X.XX the benefit, G&A to transition slightly QX share for stock net loss reported $X.X is QX both of the million leadership combination net a net on $X.X and or a the

restaurant was cost percent unfavorable Pizookie basis XX.X% to which a Traffic-driving XX of sales For loyalty the mainly more initiatives, expansion, our and year weighed points in the the expenses, was quarter, Pass ago. margins. detail compared program on on

As Pass items consistent complexity, are pricing. for the market. QX below trended reduced which Lyle we we back expectations margin in offset October, deliver items either We compression. Food leverage avocados, the year. in exceeded new wings, XX.X% quarter, quarter not of of with which labor traffic, potential. are X% labor levels. Labor full third third with and added key for Pizookie certain and was ground by In inflation of was mentioned, all X last our and costs in were our quarter, the to promotions and to increased purchased sales growth guest bone-in items and expenses which did including sales staffed Along menu our our restaurants QX, or approximately benefits promotion efficiency traffic to popularity our the strong now beef and in the quarter. at down our cost Costs year-over-year, created

operating with compared year. quarter XX.X% leverage were we quarter, sales trends, sales. Occupancy better XX are favorable to basis labor points expenses and in the refining of Now our to high last top the line third which actively improved model was the of

points efficiency over savings and leverage from the initiatives We third continue prior our million comp quarter. linked expense was The $XXX,XXX compensation gains sales. G&A strong cost basis year plan achieve approximately expense benefit Included was XX a our the in of with to market-based deferred to sales. performance from our in of to in $XXX,XXX deferred year. $XX higher compared increase G&A $XXX,XXX last equates

our other a and is this item in P&L. in and income is non-cash reminder, a expenses As offset

approximately During $XX We stock retired at the million cost currently our XXX,XXX have and a quarter, common of million. we our program. under available share $X.X shares of repurchased repurchase approximately

with of balance million, cash Turning debt higher of to $XX.X and quarter third of the current environment. to net $XX.X balance QX. Value ended to million. a sheet. the our less than of at end is in as comprised the debt $XX.X $XXX,XXX equates We This balance net guests debt important the equivalents as of million ever

Given Deal, adapted program our comprehensive deal the the value consumer strategy menu with launch a by build economics messaging, traffic-driving with to launch test new the we quickly backdrop, in compelling awareness We call supported action and moving a attractive drive Meal Pizookie weekday initial cost in the including and the and to certain food trial. profile timing. media markets given to design,

the September, have guests brand comp differentiator by Box Pizookie Additionally, enjoying BJ's. basis approximately results Pizookies, are Deal weekly than the Meal a average. XXX sales launching points is second Black of in our beaten more for ever Since which on week

than our quarter, comparable restaurant fourth X For weeks up the sales more the first X%. of are

our the Monday profits sales dayparts. Friday, continues through available message focused Deal on and is Meal $XX across value which now to Our drive Pizookie

Pizookie loyalty impact our now past We ahead to well industry. deliver the continue of promotion and the Pass expansion are of and and sales our traffic

is criteria promotion. any As we've profit said top growth for before, dollar success our

encouraged especially profit Meal traffic is We given by driving it our the our restaurants. are into incremental Deal, Pizookie the incremental flow-through of weekday

mix, current along has area environment the the late pricing basis our full a Given final XX Pizookie than Pass sales points XX XX% in more our and QX. our trended market approximately in recently of better September, is promotional point commodity favorable cost of October menu promotion. or basis with month round

driving the profile Pizookie is to focus to has strong menu. and and shifted food regular Our similar our more traffic weekdays Meal a cost Deal, which has during sales

improvement a our In of teams to our Pizookie initiatives, than terms to our we high-XX% this trends the margin but in opportunities efficiency Deal, overall the and promotional expectations initiatives, work disposables to percent we Meal margin prior traffic-driving rollout mix from response sales our restaurant expect restaurant and to the will margin savings cost recent fourth labor improvement completed positive to initiatives. we level lower in Also, guest the profit. sales a of continue trends realize higher range QX quarter. Taking and year, in restaurant the is with given our into earlier executing context be our of recent distributor similar than to and level expectations continued in mid- and are resulting in specialized in our the the well This fourth margins of quarter. dollar realize identify begin as as full account

conclusion, and to sheet, $XX area non-operating has has enhance flexibility items. In million which financial significant in a G&A recent shareholder initiatives QX, operations to with cash and our the rate multiple balance the flow from healthy before value. execute been run BJ's expect for one-time We

any profit to environment. goal dollar absolute grow Our remains in consumer

new our as through capital value shareholders our and remodels and initiatives including we restaurant Specifically, approach openings on to as through productivity restaurant repurchase are well share sales allocation, delivering activity. disciplined to and focused

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

Operator

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

Brian Bittner

was about obviously there. opportunity the component And margin the taken explain A second expansion story call, that guided earlier And ago, were quarter the BJ's investment was the the the major table. underperformance. we what line. higher, margin look quarter, third directly that you has does and that restaurant and know exactly the between that margin X delta of with in earnings margins, underperformance costs said But year mid-XX% makes your in off on to into quarter you results, guidance? the what -- well quarter saw reverse margin you you but these was to? And that that sales obviously avocados, XQ third so guided Pizookie as the months below And is XQ that And wings. about some we were Meal the optimistic reversed and fourth I Deal, entire margin XX.X%, does

Thomas Houdek

I'll take Brian. for thanks that, Sure, question. and the

quarter, third higher a the at we mix looking expected. had So of than activity promotional

well expected. So costs more well supply leveraging weighed the promotional as as ticking on than combination when main the as built just on on activity, as we the so were and quarter that the the more up as difference. labor of as well expected chain that some drivers margin reported, And went more we margins the of side not as

our mix how an guided, that we're and impact. as we has in QX and paying there as that the cost, Looking think food benefit there as market a both impact is well we about cost forward, in promotional

into quarter and into that what So the that, we're moving main are is fourth the just going of at to those parts that as top we on about we fourth quarter, looking and provided. into it we'll is labor -- the how as reverse leads guidance leverage that we're the think

Carl Richmond

Brian, Brad here.

right did And to pleased bit talk abilities, also little traffic a that came have into some margins the Pizookie But remember, I and a there's just It the took confusion generation that. But can but from at we're we earlier, end Lyle that line we menu with and actually the to the quarter. Pizookie. in play of some Pizookie sales. its in me have, it it about think Let But lot mentioned very general. did our with is the other deliver, Deal really because -- hit didn't know Pass, a deliver. it and I and add we Meal our substantial

handle time with which And and that programs, offerings getting traffic that so of our the on better have are we we're much the different with and a building delivering profitability.

have that some We aren't.

some those are off, them be the we're and fourth done of Some addressing that running of quarter. will in

a little take kind will But Pizookie competitive why Meal look we have want of the marketing longer. taker, we you Deal. just that's with optimism we're I we at the do environment Some there the a what of the to put bit a out that it's can able our go forward. lot we or that really But do. dollars were that of type media and of informs that to this When we clarify thinking fact amount and as it platform that share and

more at the than anything that hints else. -- probably optimism we're So

Brian Bittner

on the And enhancers and the that AUVs what should you believe come be bring brand some of you you and you going And experience experience, And into Brad, the early lot ultimately a table in for term? based assessments where what potential the discipline term on near just bringing some could just or margin to has, your role, this it financial a could forward. the like your margins mention with as long do did are be? be

Carl Richmond

the the those, of has there's leverage and look it brand. that think this to ability AUVs When for lot there's a meaningful you I potential upside Well, at there.

on of we've same-restaurant sales maybe focused what of done opportunity value-creating there business. backwards here, cost look is out AUVs much increases is. think I growing the highest or we've of that I the the taking too a little As business instead actually

Meal it our traffic have actually good that's appeal is think mean lot sized has more we that Deal Monday guest increase and We here that's really our to do volume I what get seeing, it there's of periods It's box fact we're a pretty more. do a to look the I done is boxes lower lift and addressing. today. sales is to the so our lot is. occurring when at see utilizing the Pizookie a where more can to it there through obvious the during you And when earnings. was there. ability Friday box working that we're today the And And pre-COVID of our potential traffic readily deliver significant though and work so to And painfully a and volume. box, internal right, the on something the where

Operator

question next The comes Slagle Alex with from Jefferies.

Alexander Slagle

a units a few number kind conservative hoped. a the sounds remodels of the similar on unit on new new of to on consistent I if we're things, returns. work side what way really between of as you the a to and guess, but And Brad. new guys the the boxes, like of it touched allocation look sounds about it's the But might into I more as the you the thinking and I it and performance through as a is early I hasn't and working in -- be I look things, to know think could just but Lyle step-up bit of Welcome, are new and and capital about units, balance talk been thinking to we remodels. ahead. next initially. you that and kind mean, mean wanted start year wanted good about like it? heading Is you -- just November It like I want you

Carl Richmond

need to saying greatest out I growth, opportunity is, we is and value the our I of will. those And to pretty look question. want if by grow increases the But same-restaurant no, though, as generate appreciate will one I is significant start Yes. for I Ultimately, at shareholders. you new units. what our the bet, new each unit a today, opportunities

everything comfortable a we consistently And go need right, ensure we're elements our that all do to site selection where to high getting from want success so have we market the sure we rate. i.e., on penetration, really that we're that be the working criteria to and next,

to point But will, really reach more there, the elements and But the there's going appropriately want say pretty there new that lead have long pace you're you we'll how hard there. today we ourselves. There's still do pause, these be that's aware, sites were we're worked I aggressive those. than of I out will fiscal we these for there's if in investments. ramp aggressive after when type this be So quality we the times where it's suspect less during so to year, look actually competition advantageous of for that would past, as at up. out sites it. The going to

don't And so pace to still this, going I think this our -- is not leaning we're said, for XXXX change. -- into I I'm so dramatically refining like

I XXXX, realistically, out. the this. There's we're in year, Yes, give towards but of that into still -- you change spent of the would latter occurs lay an next you be there it leaning capital of thinking dollars part work might see mid to XXXX. be think But do. might kind some idea kind what we're how would of

Thomas Houdek

believe, our September now. an Texas in and for by California an the ever actually highest August, it week And well worth sales that And We are for quarter, in It's, us. had didn't outside opening X in called Central both I and right openings Alex, that We highlighting. of call, and we it's about then in week. but third in highest still had in mention third opened. our followed opened in on Cypress, we $XXX,XXX NRO, Tracy the Houston restaurant very first we an going area

possible when of here, fine So and thrilled capital about you area these tuning, for generating, to free best more the which be because to That's we've the remodels. economics, repurchasing we'll fine But it also also Brad's is And the a gotten really tuning we're fine good get mention return box, we're openings talk plan's tuning allocating next to and that's to we're we're set of investments. another did the point, types with. amount of out the goal shares. flow in some encouraging But QX of year. the cash expect,

business. sure with that shareholders cash to returning cash to well want good the investments make we as we're our as making grow So to

Carl Richmond

jump with Tom in high new of I some and creation at uniqueness was brings to we're have brand out want do where volumes of really California awareness, there. because And there. We here mean, the a look it coming I pleased value from that big a unit pretty the -- perspective. we the opened back we up Alex, are points

is. to So opened and it's as margins, continues going not clearly strong we restaurant-level awareness, the have where it percentage brand don't there. the same And the the justifies you location where it the investments build Texas it up mentioned, absolute but to have pretty from dollars

And bets to So need I dollar understand we shape to that big selection you always and these because and get on know to our better, right. penetration then site you those as criteria just are strategy. work that said, need to have

Operator

Barclays. Bernstein from comes question next The with Jeffrey

Jeffrey Bernstein

back Brad, the Great. calls. industry welcome of from the to hear forefront in Nice you. to these

Carl Richmond

Thank you.

Jeffrey Bernstein

Welcome to BJ's hey, Lyle, Tom. and

questions. had X Just

one on from following first a The cash perspective. up just usage

that the new hotly a aren't the shares pretty new are be at as would to return I said, curious, you on unit know that you've to repurchase alternative just potentially the As integral. It and the that the like been was debated would mentioned, are last months levels. growth And was margins returns seem I'm haven't at the much desired new the consistent. units you mentioned Investor where XX cash shareholders hold clearly, via unit the topic ago. Day trading today. based

from Just wondering the I had units whether then that's Or that been very new one considered? here? that keen to an follow-up. why that's is you're option -- And it build

Carl Richmond

Sure. you're on. exactly business This cash right flow. significant Well, generates

lot a invest opportunities So have that. we of to

right that we we on comfortable remodels, than line these move maybe continuing feel to is with sight we wanting decisions make faster the quality and of forward to with what anticipated this. very have think to now I prior

we New going units, there. to refine go there are know that optimize quality but work, opportunity that the this pace we we're to a really at brand can deliberate sites can so future

brings And points. so on it up the X question

this cash. have excess We

have transition, repurchase very a We structured the we defined program. will, as leadership with started

any a it, means. it spot So buy it's criteria by has not market in just lot and of a

And in great the thought really We so had we we that. last executed success quarter.

with bar lot do and excess for with our take a cash requirements. equity shares we take cost of by our business makes where projections not largely it. financed, a makes XXXX to bit to but capital We of that of appropriate will little very quarter, And be so are to again. need do we're But -- more the just will get to this perfect a it and it debt. terms and little appropriate it. bit financial we we in done. of in our that's very repurchase a And sense, capital on going a are lean high think I mean We that necessarily match same to

So we to do have there. work

be We very conservative. continue to will and cautious

using debt. So perspective, very, have, have levels running to from I look we're returns, don't bit up be to or business, at there you load in expectations to low business management walk of terms think but from leverage away their as both of opportunities. should buy going we little invest leverage the with we investment shares that also shareholders And a and But debt. very the when in what an quality us enhance more thinking back

Jeffrey Bernstein

it. just was obviously side my more such is things, question follow-up a the comp you Got component. said on of which key And

you mentioned was mentioned you Tom, I the it X.X%, think traffic. comp of total of X.X% I think

Again, your components. is things, get and presumably So assuming I in you strong hoping price seems confidence brand there's you what outlook to get to was have pricing very like side just power. the into But curious appeal. the of wondering it the just whether pricing other components. well, XXXX, specific to -- I'm going healthy have the

a that perspective. and say would perhaps you're from obviously would some margin help And underpriced,

outlook figure view third trying the perspective. what next just year of power brand and a how out again, kind in pricing to So was pricing going from the the quarter, you into the

Thomas Houdek

Sure.

go, you components the as yes, So have parts big the right.

sales points So over we X% year. end the last XX traffic basis And took up carried in about just of X.X%, bps. points September, XXX XX rolled in X.X%, QX. the at Pricing, up basis low which we check so

we're So carrying now in the mid-X% pricing.

versus So value business. wanting competition, the this in in terms to gets into the of drive us

that power. of our to less than around some price selective powder that to So part extra want we We because traffic, can want some of price creates we be year. know take also we your where but this of dry we've grow competition a question was taken lot that pricing

-- be delta continues mix and check. of there's promotions Some between -- the obviously check, to but the drag also a we pricing that off-premise we're running, on

of some our is do business, seeing outperforming in still business, which checks we're traffic. We lower from the on-premise. have late less coming also So so night terms off-premise

some we night some extra checks, late they come at see when amount. dollar So lower

that So check blend on the weighs on total as well.

Jeffrey Bernstein

wondering and we potentially I'm then just team of other to clarify the And a management there's departure whether process view interviewing should you how externally there's the position. CEO likely. and thought interim just Understood. CEO think the Or on internally whether changes the Brad what going holding terms permanent or today, in of is, role. what

Carl Richmond

this kind comfortable bold a of business necessary of this but grateful we're and That's question. a I'm further and of future been bringing success and join because just look I the steps side bit We little with public the business the organization. and brand year. experience reconstituted to whole of continued this are talent side good take to say Brings transition really here. a operating would move Lyle amount Very the business, path that here step of company have Yes. the that really They've willing of kind on. and forward and also help pertinent. the back into been and his Board's here. depth to a to the feel with tremendous to business the forward

Operator

with Mullan Sandler. The next from question comes Brian Piper

Brian Mullan

menu simplification. on Question

opportunity this a in bit little remarks. referenced an prepared You the as

simplification gone of somewhat already. I think the recent company has round through a

maybe didn't to do the its So previous sense said do. And go still was? that a Or maybe maybe if of there's way, another could more have in enough you today efforts? the clear right, just it's far what why give you an company to that's assessment. Is it fair hesitancy you

be color any would on great. So that

Lyle Tick

Yes, sure.

menu complexity I the work I kind work. driven team of by of X of that's members I opportunities working feedback architecture, One the talk tranches And and shifts kind think opportunities make from of what removing less day-to-day. about is easier when about the and all and and that short-term more kind about of see structure and it of from things in the simplification, are kind that's that. can

better or are, ways terms doing onto X of Pizookie. have one like examples with ice know of not a way we little So different way have There's be an they with that. ring opportunity you may may to it, how team lot you're scoop that of might There's garnish shoulder little a the off build our shoulder like that. simplify bits may things a in we a cream but lot things to We and when items. member, We drinks. of in to

menu cut I larger when we think I take generally to approach can amount. take goes The you X to the of today to that complexity have the don't is menu for like a the back, I by is and step I around simplification think you architecture. side What menu. menu

each opportunities in each is going make Understand will decisions. total, yet we a roles understand forward, each those map the to we over-indexed. have going or and what's some guide disciplined So take But sections, I have might to today identify you for to under-indexed where also, will I that and bit to sure products new what's need of strategic essentially traffic simpler. frankly, check innovation what we driver, of builder, sections. and of guests. the a opportunities we which for do us to interest we're of have our going be on we'll But our the approach menu balance become it menu be items where a for is with believe architecture, where is drive why the in looking don't And simplification,

Brian Mullan

sits how then you'd accreting or brand your Given thoughts brand And BJ's? just about Okay. insights maybe any can and to go with BJ's experience comment where on awareness? previous you awareness backgrounds,

Lyle Tick

half Deal, have apart of at balance, us, about of think it's than have unaided earlier we and geography we Brad for Yes. our trail why on awareness, category. awareness you we I of kind we share and by with I of voice it's when significantly and why earlier big California grew gained the kind -- terms little then you lower did, in Meal And of an bit look spend I of in unaided a share. competition It's awareness too. brand competition, opportunity. referenced the in Pizookie do mentioned the media With traffic peel that I mean California. if the And outside it that and

brand click and we this me, the it respect kind would that both to of headroom gives that double For when awareness. kind I And markets, for you. kind mind at confidence our on are with our When of underscores of for you salient, in affinity top the and opportunity outperformed. remains consumers' and me great markets of look all media

non-media media when Our outperformed markets. media non-California media a markets And in then you click our terms of jump those outperformed markets, double markets California. into

you think into which And just when go still at our going is about interesting of the those the but so that just has QX, beginning less weekend. showing are not thing weekday. awareness and how saliency to that They seen gap of I now PX add, traffic only I'd headroom. The we've look is and media gains

but So against Meal the on they're the Deal, Meal being Deal is salient, the Deal, not we're talk mind for is us though consumers, about the even marketing of us when Meal weekend when the picking when top Pizookie available. I picking they're for

across points that, saliency weekday. weekend kind because go those the seeing gains again, we're awareness the to and So of and

Carl Richmond

me, those to little insight, X. share don't learned and forward, us the important other So your so in learnings as report It's jump that things a in we've for I please of leverage. say we that can competitive move bit are for just we

Operator

comes with Wedbush Setyan Nick Securities. Next from question

Nick Setyan

near same others is few calendar It time, promotional to on kind sounds let the a in while a you're have go. settled still the at you But term, promotions few of like flux. happy

not Are think stay? to offers? of Deal time can going sort I of the expect offers? of flux, is limited going extent promotional And happy what comp the heart we in Pizookie of promotional to the we is, have the with forward? So have Meal cadence you about what how cadence are guess, continued to we to Is here going promotions? to the going question and extent should forward the rotating sort volatility what Are extent forward? to current slate we going

Lyle Tick

have this that still we're learning discovery talk. of in specifics probably that I'll for kind and time we you phase, more next being Look,

We encouraged Deal. Pizookie are by Meal

for at top with there's We think some that it more not? comments, it. are how the stay continue we that through bit it have cleaning think or I going that you QX. answer respect us think little or to we this to program. Is don't that leverage on tertiary I moment. the And headroom And that gives to I here bottom for I ones line, it forever very me my the broadly, can table -- ours a whether allow there like to the of everything learn, do work. is with will the to simplification in prepared right of for platform to versus into of LTOs. now, programs know I you brand tell value frequency building I the most But like a out what's but I business want you a have some the call believe and cyclical idea cycle is that on about as going to and you on as I of effectively line drive mentioned our we lean

Carl Richmond

pulse That's do really Pizookie periods that. learned do to the when activity those is different during Meal we've or learnings, that what that thinking you year think and thinking. away we're some to that it's have Deal but offers. walk to to But tilt what you news very share, want want the wouldn't how not heavily we're new I shoulder Yes. the learnings from going during we you you promotional things like also appropriate the

kind from see approachable it's consumer. of spot and really is That's how brand earlier. occasion a where from perspective, I with but the perspective winning I the sweet outlined really positioned Lyle also think our with remaining us everyday this price point that

Nick Setyan

there. little forward the bit on the has obviously you focus lot going And focus a other of What there's near-term menu on? Understood. equity brand Pizookie, a do expect and been aspects more to of

Lyle Tick

earlier of back menu very doing our work menu work. advantage, I my and authority need the that your I where talked than is is a we process question. and -- doing competitive we about Pizookie more going that but are architecture authority you one, to drive that go strategy driving. mean strong I I of as we're when tell the We're Pizookie areas point, would architecture will the to Yes. in to But

next data want when get so to don't more probably telling the time is what talk come us. to I we of And ahead on because that

Operator

comes Zackfia Blair. The from with next William Sharon question

Sharon Zackfia

away up on Is reclaim? just guess menu from heritage I kind architecture was of makes any the which that sense I company, kind feels BJ's that strayed of question pizza the over follow the beer for it years. to heritage to it's wanted and the kind and like of to on that of try

Lyle Tick

give when we're when and strategy strayed you beginning to answers the those very tell to work from often Look, as stop relevant from their telling that core going understand work. them deriving have their where as the hate where back about unsatisfactory to architecture through to kind of think the alleys those in I in real often way is authenticity go delivering power will and things And doing that that the go in the Because go through, you possible. brand, what future. brands and away they've authority trouble, driving you usually, were are we're you or is the was I important. absolutely is given brands the that discovery essence what the their what mode and and I

go we journey so And forward. our how will back go to discover there

again, work part be commit more without talk about and data, But the Absolutely. I'm those to again, a that in the next platforms we could on today. I doing talk. position to that specifically not So But of hope it? time

Carl Richmond

not BJ's. get the situations I not targeted both important input that it's so also I number am consumer a mean we're been I get and have I And But would after that the consumer on, right. the personal add of Lyle with Yes. to around and important menu, through so preferences. so it it just these type that you it's is

and what So brand really opinions, while to understand to I that for, on how think the the may much it I take. do can we strong we have what does modification stands consumers have do with the work deliver

it So for get and time real But do more into the takes or any -- of us as success to like. does longer-term than it It we would opportunity the see develop business. test. it take time test it a this research menu of

Sharon Zackfia

Can meaningful recalibrations the going think restaurants. any anything that assume I that coming? network the of on may ask be a or kind we of follow-up? BJ's I Are as should you're through within of portfolio there the closures well

Carl Richmond

Yes.

And aren't you're evaluate laggards. have flow no there's I once to some improve that data portfolio but say deep to think if be those do that cash urgency to done, we far that the mean That compelling what a on close we're do doing couple, for talking mean, done dives I their to see to happy we We assessment's performance. can so we need that. we closures, that, them that not and need we've restaurant no doesn't positive we us. if need have from says study that. virtually our afraid I'm restaurants to and to we need still

Operator

Jon next question The Citi. with from Tower comes

Karen Holthouse

John. It's for actually Karen Holthouse on

a menu beat asking dead here, again. simplification kind to Sorry horse about but of maybe

a the size? part plan about forward? part footprint the footprint Or One relate to is get could of kitchen that forward? how a to going Sorry. smaller a maybe you the thinking unit are things of you considering, And you're if menu, smaller smaller plan going of

Lyle Tick

boxes As obviously has you the kind how market cascading from to on It NRO it effects. have go of view. absolutely impact an point we go of an forward, how we could those build and

in size, we So, And of mean then was place. work. right only sure. I a but architecture in did big life, work, fair believer bit not I my a right previous cost, menu right format

one format see enablers And us satisfactory, don't potentially that I know but I our to would of the a you Yes. allow little that's it bit. menu? so is future work hopefully in gives do of if to some Yes. that? And

Carl Richmond

I'm throw an I'll agitator bit to we but too. the in, of And have kind little XXX-plus a restaurants. group,

we have the the work need a have have that on it what exact I But the does do doing box country. we're think across of we really today. so And same company across to we to menu make raise it question today -- the

of down so And makes know of that? I and But or we'll regionalization sense, those questions but know. the that, And opportunity it. asking might expansiveness it. pieces some at just and show we're this as don't parts how there road some looking studying if business of be don't test mentioned definitely forward. we I to the the we're move the We it

Karen Holthouse

Great. X super And then ones. just modeling quick

If you just number. the I'm like that spend marketing hand, at making sure quarter have right to the then great. And would adjusted in EPS be getting

out with to $X.XX round is $X.XX start a a the loss, does you loss? If you're that benefit and or $X.XX $X.XX excluding, take it loss

Lyle Tick

First, the X.X% QX spend marketing in was sales. of about

back the you by have to rounding, I the get pieces one. let adjustment me that there. don't For on

Operator

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

Todd Brooks

of welcome the mode all, just I'm understand that kind of of kind of a I driving to aboard First get the an of get of around clarity and here brand. continuum that awareness. concept trying and discovery to Brad more Lyle. to process to idea this

as on around anywhere? we So trying are Is we there awareness takes to here, drive get Then a you're what the journey. we a frame at message. Or national buck? process? how looking brand, you of want we do for time complete work we're the around probably get know get to more you hamstring how mind the geographic to don't type specific to X-quarter thoughts with are markets stand trying where a level going yourself I it for, to awareness, for And long but are it to this my to driving targeting in need of talking bang just kind

Lyle Tick

restaurants going it it's us So wouldn't channels question, the just to not -- our efficient have media be view, and we need a like footprint awareness have that the guess not in have footprint, are right? the modeling opportunities for we of like broader we as point exists your pure from of awareness the we use media. density to markets opportunities. on be, So where we of But and national is, I as across channels to everywhere. so a invest first mix tactics what that's in Ultimately, more push, opportunity like be

to the test, that right gap. And right learn, -- kind also close about channels I'm believer really using scale. to a markets big it's then start to so in And the in of

accelerate And So right there we in looking to test, probably movement. some we return that tests invest gap will be and markets. some that the opportunity awareness to of do we're if seeing some pressure may growth on

we're think impact an you structural on a and second opportunities -- media take then course and are work the have how starts work to fourth that And of you to longer you there's the impact and impact really the earlier you the of that time. to awareness But start what take more And start probably easily next opportunities place in of quarter. to where can that roll the menu And out, we'll and things at look start kind strategy quarters. the on couple in think of maybe rolling structural doing more happening types some about those quarter and kind first then things half. take will the when work strategy and to opportunities tests pressure be tests going time, of of follow as on can I over little

other these each hopefully to over layer build time. So you start on upon which activities,

Todd Brooks

a Okay. Great. question. follow-up And The quickly. a and separate then follow-up

other level of with for work And of marketing X.X% on more BJ's experiences that to and have -- behind chain eventually? does spend at to size? need at marketing a feel spent like look the put do investment you do you right the sales If to, your to your of the both spend looking brands, you that expect

Carl Richmond

national some of all particularly heavy varies learned pulsing time. brand it some really I Each I national what do like to media that media we've going go high, big think, the to clearly how sense. think they see brands market, Yes. now, don't of go the are marketing so makes you're

we're say this more have short on capabilities But ago. be just would learning guide that, hard while I still so at So we're you enough through may that. about we sorting had point, to it a wouldn't thought than we

Todd Brooks

And Tom. QX components enough. drag kind then Deal, get and and you the QX saw we're we're Pizookie better around about profit that mix as structure moderate thinking you to if Meal that the same-store in is QX, about out in expected that of one, Fair out sales? Pizookie Okay. about final to to economics we Pass and If sunsets the looking and thinking of October check, talked average

Thomas Houdek

even seen as QX. We've Yes. that worked drag through we moderate

in was to our loyalty So impactful also your -- with QX. push. mentioned even the expansion That earlier most we yes, question, answer

QX. the to we as the we biggest the through lessened And when launched that as to moderated right worked impact Pass, check, that was Pizookie QX. impact worked impact we through So and check

-- we as started through So QX as QX the that mix we here. and seen shift worked lessen impact we've

is of the more by So and the trends. that you're recent guidance informed part right,

Todd Brooks

for pricing on out you would mix where check quarter? with the If the into come headwind mid-Xs, you and expect moderation the the to step down average

Thomas Houdek

area, maybe X% estimate. good But that Somewhere is a less. area in in little the somewhere yes, a X%

Todd Brooks

going is X%? confused to what where sorry, average that's You only out, mix come I'm check there. that's be going So down is to I'm X%? think

Thomas Houdek

fourth question the for clear bit ball to be crystal X% So quarter, in expecting expect little that's lower. we now. the to potentially check the check as area, we're as where the right of a do the think -- not be I in But if is

is think I estimate. good around check X% a

Operator

for session, Thank has participation. conference Thank the you. now This question-and-answer you and ends your our concluded.

disconnect You may now your lines.

Thomas Houdek

everybody. Thanks,

Carl Richmond

Thank you.

Lyle Tick

you. Thank

BJ's Restaurants (BJRI) 31 Oct 242024 Q3 Earnings call transcript