TXRH - Earnings call transcript Q4 2019

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Operator

Good evening and welcome to the Texas Roadhouse Fourth Quarter Earnings Conference Call. Today’s call is being recorded. All participants are now in a listen-only mode. After the speaker’s remarks, there will be a question-and-answer session. [Operator Instructions]

turn Officer over of to the Tonya like Financial Chief Texas now the to conference Robinson, I’d Roadhouse.

You may begin your conference.

Tonya Robinson

and to for website at Carmen, should may also December you, good in on By It everyone. Thank our found now, XX, have XXXX. access fourth the our the release texasroadhouse.com, be earnings quarter ended evening, you Investors section.

We refer discussion discussion guarantees to These from formal those all remarks, therefore should documents everyone future of our our could our remind the statements of and I SEC. that statements. a forward-looking differ with not to our materially provide that earnings today results of release need recent begin undue include These you actual we not of upon statements. Before performance be the are will and them. forward-looking part reliance relevant to detailed more factors filings cause placed

non-GAAP non-GAAP in GAAP applicable, may we If reconciliations measures. addition, release. earnings our can the of information refer In the to be to measures found

Kent with Executive Roadhouse. Texas On the of Officer today Chief and Taylor, me Founder call is

open remarks, Following we’ll our for call the questions.

like call to turn Kent. to I’d over Now the

Kent Taylor

expanding by comparable X.X% week growth, ended Thanks, another with sales revenue for increase operating guest with strong significant including margins. year and the increase fourth a restaurant in driven a growth, the Texas Tonya. double-digit and quarter, in guest X.X% We Roadhouse year was XXXX counts. counts in momentum increasing

also XXth sales remained the quarter, our consecutive restaurant Comparable growth. us during X.X% of fourth growing strong quarter giving

of per the week This overall margin margin keep allowed to flat half saw the the return as total year. full store back dollars year-over-year essentially restaurant to restaurant restaurant and in to for expansion sales, grow a X.X% year. Our a percentage margin us of

a into to we rate moderate – moderately both and XXXX, from continue. competitive commodity pressure inflation expect market highly labor and wage Heading

March. by increase in X.X% and end off effective impacted are would of the restaurants in to price at An increase in give state-mandated approximately quarter amounts that of wage range higher assessing X.X% between It that of year. X.X% increases. for take tip we minimum process second will is X% X% pricing with as rolls somewhere full We the second pricing the us likely quarter in the a and

Moving on company to returns. restaurants to to deliver are Roadhouse financial track sales development, with volumes continue our strong new on open healthy and

For Bubba’s XXXX, seven at we XX targeting XX. as company are openings, many restaurant least including as

in Comparable at XXXX sales were We year continue XX. up sales base. Bubba’s see at eight to our strong restaurants sales full growth same-store for a X.X%

lunch contributed at test which began Our growth. of adding in five that of XXXX, Bubba’s locations X% early

as to Our partners open international primarily in many are franchise markets. eight restaurants, expected as

expected or and be XX XX or more fully Our construction company the approved in to openings either evenly under already throughout year the are restaurants process. open with spread permitting additional

We also new which XX the is plan to not our months, relocate six next in development forecast. older company restaurant restaurants included over

bigger larger be building another for have obtain parking, the We Texas lease successfully allowed positioned us XXXX a seating a for bigger typically build which and we Roadhouse. several of to to has with with well are better we years, restaurants high-performing more Over to last solid handful – believe sites more capacity year relocated terms.

operators our on and operational financial strong is and the fundamentals. pipeline development Our remain focus both

driving to further remain we shareholder committed value. Additionally,

shares increased flow the just seventh and cash us enabled in X.X we our repurchase digits Our balance strong sheet million straight dividend for by double XXXX to year. over and healthy

Their one build and of while driving each all an years. Roadhouse as growth, comparable lot, have XXX team the over start two over Texas want domestic allowed every dedication to back open thank of sales concepts, last a accomplished to and restaurants, new our all and to contributed presence I international partners cause. our operators those decade, us Looking and the has XX

As staying and to by same game look forward plan a following the we food new legendary legendary year, service. committed to we start

Now Tonya will walk you through the financial update.

Tonya Robinson

Kent. Thanks,

For XX.X% XX.X% of we X.X% the average week growth in sales and quarter volume. revenue reported comprised increase store fourth growth of of XXXX,

diluted share earnings per growth quarter reported of measures by resulted the fourth positively to extra December These impacted $X.XX the our week earnings an XX.X%. were extra during positively by also quarter of period XXXX We share week estimate compared We XXXX. to for of XX-weeks which the XX-weeks diluted in in per in $X.XX. the quarter impacted fourth

mentioned, sales check. the sales average a increased for X.X%, Kent X.X% and month, traffic X.X% and restaurant for and October, increase comparable X.X% December As November comparable increased By of in periods growth quarter X.X% X.X% comprised respectively.

approximately seven For from X.X% increased of Day. the approximately XXXX, including calendar benefit of of New first points basis weeks impact Years sales the mismatch comparable of XX the

included This growth the growth sales Please normal sales XXXX a than growth is comparable sales keep because in week to larger average in in mind comparable in different a reported sales. XXXX of weeks weekly weeks will mismatch our than based between XXXX and lead our restaurant what XXrd in of set is variance of on XXXX.

see The X% biggest at impact first comparable with higher sales, than average sale. least quarter the weekly will

by expectations inflation a margin to For quarter, increased The approximately and higher a in XXX resulted in percentage by year a quarter XX.X% margin XX decreased to points driven the line with of XXXX was points period. X.X% the Inflation week. decrease was inflation basis in was to estimated per operating extra sales commodity an year year offset a with grew improvement compared compared basis XX.X% full prior Cost check. percentage period. for XX the X.X%. as benefit store and of average of impact the benefit dollars prior as costs total of from total along commodity the the point restaurant week overall basis of sales The as of restaurant margin sales

the largely relates other extra of to the labor inflation per dollars of week week that X.X% quarter, week by to I to of a in Labor Labor levels X.X% growth decreased XX and increased driven as and percentage essentially approximately the of approximately hours store XX.X%. compared that total sales the wage period, of excluding end hours growth year busier in of points staffing impact X.X%. will basis for growth note the at hour that was the flat. labor the majority for quarter the prior

year, growth per compared this health to compensation total, our dollar in experience. by Labor due these and adjustments $XXX,XXX impacted X.X% group claims with history, prior our benefit in resulted the was reserves claims workers’ In quarter of store week associated development negatively expense adjustments to insurance million $X quarter. to the

XXXX, store week And sales total X.X%. dollars XX per grew percentage a labor increased as year For labor full of points. basis

points compared the XX XX operating quarter. point expense in quarterly costs point credit XX charge basis basis from the decrease to sales year’s benefited resulted total a in rent Lastly, to adjustments in reserve both liability of also in adjustments this general other a the actuarial this Other primarily percentage operating analysis $XXX,XXX sales the for costs prior The quarter. fourth a $XXX,XXX basis decrease quarter from extra our resulted insurance. year, of as in week and

basis percentage full points year sales of total six margin restaurant For down XX.X% a as year compared XXXX. XXXX, to full was

period. of as basis points $X.X $X.X prior quarter costs additional of due the primarily G&A from dollars for quarter of of benefited extra payroll overlap margin, well to week. the approximately X.X% year to XXX,XXX the Moving marketing to expenses, time related below one year compared million onetime the quarter the related G&A to of an G&A as million full for year XX this credit included increased percentage a revenue, restaurant the of as decrease $XXX,XXX in a prior costs XXXX quarter.

which increase the a two year points of increased $XX to million an compared prior or Depreciation revenue, of was X.X% period. expense $X.X to as basis million percentage

expense the $X.X As quarter of of a in was week to due increase year-over-year XXXX. reminder, this extra million depreciation the

net gain restaurant and We also a line due fourth the eminent from relocation to closure primarily the in a a gain to related $X.X recorded forced quarter. impairment The settlement resulted domain. to million

prior to period. rate for came at year rate tax compared quarter Our XX.X% X.X% in the the the in

tax the year by quarter XXXX from Our –$X.X which tax that X.X%. related approximately rate reform benefited the lowered to $XX tax to a related fourth million million that of adjustment in recorded prior rate adjustment reform we

down Moving sheet, the with million cash year in to $XXX ended compared million last to $XXX we the balance year.

During XXXX, capital incurred flow and million. from million cash operations we at generated expenditures $XXX $XXX in

We $XXX $X franchise also of spent stock million paid dividends repurchased million and $XXX one million acquire of to restaurant.

a quarterly authorized $X.XX as in Board Directors XXXX increasing our dividend $X.XX it in press share from to to XX% of forward Moving in increase release, our XXXX. per our announced payment,

X.X% to company positive year, growth Kent at also growth and for restaurant mentioned, of week We are planning we least comparable as expect the store new for restaurant opening and XX X.X%. sales

restaurant XXXX. includes impact XXrd lapping from expected of negative the in growth Our XXXX week week the

commodity over XX% X% forecast commodity little X% be with of prices continues a our inflation basket. Our to to on fixed

Our mid-single the labor of quarter guidance and includes growth along week of digit per dollar growth with the continued expectation third store inflation hours other XXXX. in wage through of lower

in expense will lapping accelerated along associated depreciation the Lastly, with benefit from XXXX, expense with week depreciation extra relocation. lower on

I’ve XXXX our to of $XXX capital a to million income million. XX%, guidance and expenditure expect approximately XX% updated tax $XXX We rate to

Carmen, remarks. open for prepared the questions. our concludes please That line

Operator

Instructions] question Oppenheimer comes with of & ahead. Bittner Company. the line Brian [Operator from go Your first Please

Brian Bittner

on Question guys. Hey Thanks. margins in XXXX.

only COGS your X% likely with X% some against X.X% getting X%. pricing costs positive be margins, to to You’ll food up on of most leverage

you You’re line Can XXXX XXXX? how these in do restaurant as clearly as of second thinking controlling item about want moving we margins this that half you year. given go labor us into all grow seen the in pieces, better

Tonya Robinson

Hey Brian, it’s Tonya.

pretty – is don’t land the outlook they We our in range. market it’s which few to know here up a we be having of is pricing in operators that to big their much X.X% partners kind that to we’ll don’t think that. on where weeks had are. a count and outlook or same just We’ll I calls on on where we’ve with the coming X% past, get

ranges then to and and that So cost see bit part. benefit on X% ours I definitely, an some that’ll sales X% on those labor little through inflation to to think quarter. continuing things a line. pretty range. is still like at of will you we’re But Labor decent expect really And that. to that cost will that’s kept wage unknown to we see sales of continue why Deals play mid-single a inflation like we’ve leverage third see again, that – digit

there. it go. So more see great But some certainly, leverage how things to see we’ll be margin would

Brian Bittner

Okay. Thank you.

Operator

go Your next line Please ahead. the Geiger Dennis question UBS. with of is from

Dennis Geiger

so Thanks much. Great.

scheduling, of following over realize to then on the up bit the talk just if sharing you And out commentary efficiencies, looking little the going greater labor Thank could couple you. of the been efficiencies last about beyond practices of more labor managers, Just some quarters. ahead, through able among you’ve wondering on you labor a see the the question, kind that of store already how mentioned playing best that for opportunities just side? the you

Tonya Robinson

Sure. across It really Each depending isn’t one store thing handling on really all. their all the situation, differently so size it fits isn’t it stores. one is

You that be a saying, store by they could perspective. maybe shift that the and that extra reducing do clocking job, they’ve have a or could and scheduling got hours don’t looking determined on out and from their we looking could at stores need hey, person a they’ve better in an it

the number their really the communication So know out doing it shift, number. to that just it from they really that that. it. We we the those and that’s want year. store the to run there. them big was up on depends want all doing of want understand we really We We the really them mean, has put want every stepped in I stores Operations restaurant just hours need to way

confident that and of So seeing We we because that’s progression. to picking in continue started feel really for in pretty there that where that kind see the XXXX. up benefit same QX, probably think continue we’ll we we’ll QX of QX see to some

And based you’re right, and their like just really on as restaurant. line that it the are way. you then sharing program, comes the is doing compensation operators, great feel of And absolutely Dennis. bottom majority had we feedback We know, from they they’re I from best results of the practices. compensation mean, their right their

motivated, thing. most very right the for the are the And doing to us, So really they thing long-term. that’s important to committed

Dennis Geiger

Roadhouse I if quick one you growth, development follow-up, touch you’re quickly specific thinking the G&A for back from and off footprints, wondering if you. potential the could Tonya, opportunity just Great. growth on smaller could the how to of just for growth that ultimate Thank and opportunity? get the about

Kent Taylor

in be XX% probably of Yes, year smaller those coming – this This our we’re is stores markets. Kent. will

So we’ll year, only see some other our population, store this results will have to on have been with more. locations how more that the they their perform. tell you equal not based But in opened I cases but ones

Tonya Robinson

to learn continue continue think going those from I to that. do we’re we openings as to

So to development our I going it’s definitely pipeline. help think

I say right what think does it’s hard now long-term. the to that for

contribute to to gets about. think beyond help end of little to higher continue range it you going we’ve see a maybe to it’s XXX to performance, maybe I bit that getting domestic we And if great talked that. XXX the

So I think We’ll just seen. continue we moving lot remains be a it learn forward. to as

Dennis Geiger

much. very you Thank

Operator

David Your go question ahead. with Tarantino next Please of from is the Baird. line

David Tarantino

Hi. XXXX. good Congrats Good afternoon. a on

Kent Taylor

a It was us better Give Come little credit. on. than good.

David Tarantino

XXXX? good very a about How

Kent Taylor

All you right. All right. Good. much. Thank very

David Tarantino

at purpose much here this look philosophy. wanted inflation what pricing So, process And you’re see that my against I you going on the to or is expand it take to the your the understand would to margins the thought to your it next mind is you you’re is round. And pricing increase? where in the be, just protect as want post seeing question more in how more mindset the to price

Kent Taylor

a do – in our would the up, other well, be we’ve XXXX be market you’re specifically at calls wages And past, the states effective market higher is in Yes, not Kent. is have partner. I every And driven. This targets. the the that we’re that of more seen wage then seeing states more that go it’ll with as mandated

tell know don’t I me. what going So to they’re exactly

two have more we’ll weeks, after in Our so information actually calls. happening are those calls

Tonya Robinson

like I hasn’t always to going we David, feel. the on that really operators always past to be have specific we taking done mean, changed. want them, to give voice Yes. to their a from in price, how those conservative hear we’re they markets,

leverage And that they driving concern going of number not it’s the a have margin, of very that or of to sure ability they’ve operators, much with to inflation in offset to getting feeling helping approach our a been it. years stores. more have some that of We’re disciplined help so maybe, making that for their

it some in – little is we do to catching of had So some up just a locations.

David Tarantino

I update what what’s seeing for give on with then momentum of you on And XXXX an if in the the just And wondering was it. economics could that seeing such you’re us Bubba’s the also you’re comp now Got unit unit in just wondering stores. concept? terms any I��m about Kent, of kind in some of for thinking that growth read you’re economics? framework how then strong early

Tonya Robinson

growth they’re the very They’re like So comp their at I’ll and first getting and seeing that base been underneath the great Those take in question. out part legs stores really stores there. it been in they’re see. really, we’ve to that’s communities, that XX – seems has comp driving them of sales, certainly The the the getting encouraging.

quicker. them improvement that base to brand faster, we seen get restaurants continue We’ve build we that help comp do newer too there of to it is patience. having how margins. about talk also awareness just the a in And good about in store on maybe bit We talk a lot

margins So to there, like figuring place again, feels feels a out things they’re that in good and efficiencies and that sustainable. get

So that’s encouraging been see that think to standpoint. I from very

in And XXXX. were opening We more were we get lot a XXXX We three give – had will hoping seven to in of definitely us in XXXX. restaurants information.

number. of Some good. that’s so XXXX, those into so that are what’s But up and seven bumping falling far,

Kent Taylor

this that than XXXX. early doesn’t them we’ll kind number this dictate we’ll exactly sites more be of would in but we for targeted let all, and we’ve the And do sites openings what Kent. Yes, is targeted we’ve XXXX, year, have more mean

David Tarantino

Great. Thank very you much.

Operator

the Please BMO question Strelzik next Capital. Your is go with Andrew from ahead. [Operator line of Instructions]

Andrew Strelzik

the how afternoon. be Hey, that thinking wage efficiencies one questions. past of good My guess, beyond you growth understanding quarters. underlying about kind of, me. of that? more there inflation wage beyond the of Two investments just for Thanks are first labor, you’re it kind for you’re thinking level other should we more that taking about you though, is a I about couple mean, get how contemplating? broadly, efficiencies? for term Once right thinking that, you’re the get the longer just I property Or is kind

Tonya Robinson

I it to I that tell past pressure we Andrew, just given XXXX, would still think, Sure, would you be market, where I get expect things as and there’s tight labor unemployment going – given the that. it’s at and like different

it’s think to going tough. be I

appropriately, be to talent because making been they’re great going right doing still And on are it’s focused the hurdle. staffing we’ve a going we’re operators we’re our thing as there got making sure that So to from in standpoint sure that definitely usual. be

imagine bit? on would hours growth, else. maybe doesn’t traffic go And inflation I more than – growth based to hopefully, then return behaving little wage But a on that away would anything for based any

again, So maybe X%, around to hours you’re to hey, I don’t back but get back said, not level, that running maybe that a maybe little growth always market my we one. know see market, we’ve bit is depends XX we be the of But kind on in the how It getting lot and more back would that line. a continues. labor that expectation. traffic

Andrew Strelzik

I’m more were the it the going get in just question think dollars back to then the in the versus particular. on flattish XXXX, And a like up trying in G&A to as a kind were the bunch dollars sense a somewhat pieces half about know of a in half. there how fourth forward G&A. front taken just quarter. bit for I growth in there moving of a in But – a year-over-year Okay. basis, on whole sounded

Tonya Robinson

lot in And came the Sure. came to bit just originally it that than had guided about expected we week G&A of Yes, to, We little estimating. a extra shy XX% we lighter to due were results. A in XX%. was growth. we of XXXX QX for

We’re Everybody see continuing on focused is to that. really savings.

like We’re about just meetings, different great. has talking different which efficiencies that, things been

it then to see. QX be helped of we So think bring that sustainable. had that’s bit. I And about growth a good can credit percentage little down in which $XXX,XXX, And that also

is is be that come that now, we might I going think bit we as today into But drive There G&A about get out. still would that’s I to that focus. in say to little initiatives growth I forward, change leverage That line. our that G&A year. aren’t going goal differently. nothing any to revenue know would of get really And on to later specific the below call right our a going

Andrew Strelzik

you Thank Great. very much.

Operator

line question next the Please Bernstein Barclays. is from Your ahead. of go Jeffrey with

Jeffrey Bernstein

Great. Thank questions. you very Two much.

First capacity one, a has just the being initiatives on to the see open more camp, to you wondering little throughput constraints? what are technology? system it, I’m of And whether what Or bit maybe up that I you’re percent top don’t of but outs? that’s the the opportunity if the the for size increase what trying from existing your think CapEx, acceleration perhaps know just bump you to base? store the capacity is in reason ease

Kent Taylor

you if restaurants. the for lot been years, straight of that a number XX up in look you Well, would that’s room we have that tell at one, store

We so the focusing on guest also up. and with as seen restaurants the are streamlined, making to-go our pick not and more interfere better we’ve faster does that inside to-go

every they that any prove is this about to worried restaurant, not I’m point, they’re So not. year, out me that maxed at because

that. wants let on her. Tonya, to I’ll tag to

Tonya Robinson

do stores to opportunity, outs. double out being on think see We’ve stores be able continue to pipeline for those get outs. think bump that I we I bump bump got to the asking to into able Yes,

mentioned constraint take slower kind from on the as those. kitchen those, of in past we’ve a to want care a perspective. on little We to We’re respond

they’re really on doing find have we’ve mentioned, some single things. learn best volumes, continuing are those on we and technology. they’re And high and we to the operators every drive who as really Kent doing ways, how way to got year, they And stuff sales running, are

testing a for We’re the for that, little a we’ve ordering the slower device table. on been but servers at handheld

interesting three small to in be pets, stores, so a slow just from to going that it’s been that. far, it’s doing process. We’re learn But

that. to-go, is continues Kent mentioned, asking for The then grow. guest And as to

impacting the to going dine-in there. experience. we’re we’re And sure make responding well so but And not

So a really service, making where experience it’s of sure about speed guest really giving speed, the and that’s is. great the we’re focus

Kent Taylor

with we’re with really of And operators done a learning folks. some our that things have from other cool to-go and sharing lot

Jeffrey Bernstein

Bubba’s, week? hear I’m very is accelerate on I it. Got rollout. I the learnings is terms especially to mean, out change interested your brand, lunch doing concerns wondering like momentum on contributor. lunch, labor future How like then lunch It the you just run to model it potential or shifts? Texas to does you’re and And had having And takeaways sounds that’s strong of I during a for the that growth. view Texas at Bubba’s the just was sounds with week. playing in that been Roadhouse in around know the your from during the multiple Roadhouse and keen solid the

Kent Taylor

Texas Well, are way Roadhouse to question, we the no answer going lunch. add to

I’d On more Bubba’s it’s make over say, but we there – on half based locations the I little chose got estate. on That’s side, menu on don’t got real a sense sense, that some that we’ve the lunch locations make we how all that. based have the are that friendly,

Jeffrey Bernstein

you. Thank Great.

Operator

question is Palmer from ISI. Evercore Please Your ahead. the of line with go David next

David Palmer

AUV about looks the same-store mix, even extra the AUV that Could growing? question maybe growth, like the week same-store sales you it it impact versus new A the you in you expect end Thanks. even year, relocations from the the to be excluding, through do quick productivity of speak store to at gap sales expect course, you improved that the year. gap and the mentioned, continue Bubba’s positive, on of

Tonya Robinson

it expect don’t much, to change David. I too

really think great that well with is now. We’ve of well. you have I pretty be classes needed and some done line it’ll openings what store it right in had

can think feel much a one is going be don’t to so – And now think that gap it’s seeing be I in and the that different I sustainable we’re XXXX.

you’re weeks that of will week, causes little when just weeks bigger as that in noise, a probably the shift usual be the first think of bit mainly lapping of the shift quarter. the the the XXrd I and –

David Palmer

quick a on just then And Yes. question – follow-up really on Yes. labor.

quarters it we at as mid- unit. something least far framework, digit feels single for the were that In are three about like plus, but you’re few in or the about left, of that if think labor getting about to but as to mean, past, percentage expect? Is it of how from traffic you right? inflation, your was or what to that. that? best see to sort Just you you would something this a a that, share offset the do you’re plus I getting three you’re the offset getting practices, similar like inflation about think I so this cost know per point percentage bottom-up you natural would terms maybe as what

Tonya Robinson

a depends traffic lot on is. Well, what

I lines. inflation of we those got like other about from stick that a about on we’ve along X% increases it wage to range state-mandated other we’ve Seems certainly been know with down think living perspective seems in X.X%. X% is that like going inflation

reasons. it traffic all the – So labor that comes of hours. in the possibilities and in sticky XXXX. traffic we QX itself little right right to where – down Again, we pretty hours, seems flat XXXX, that to just see slight then higher growth maybe change repeats for growth early quarters now bit see could for And could a I and

So kind not a of I I that’s but of thing guess, it. how – would bad there, think

David Palmer

opening types any a what the color stronger. productivity areas seem retail about a extra of trade lot notable, better of somewhat given some less there is these better store Kent fact, And be to front, retail, new productivity? commented fact different driving less than of areas is even you sites of sort but see it I could Is the we mean, Because for some lot markets you that on offer other new one – of store up in for about the rural ever? trade finding, just of

Taylor A - Kent

our be under listening, competitors just we’ll keep if mind? might you Well, kind don’t wraps, that of knowing that

David Palmer

you. Thank

Operator

Chris ahead. be question. from Please I’ll next is go the response of next O’Cull question the There Stifel. line with to from go seems question to that Your no line.

from Your Barish ahead. the line next questionnaire be with Jeffries. go Andy Please of will

Andy Barish

Hey guys, nice results.

growth, in margin on high-volume and first unit ones about, I volume restaurant up quarter. And then guess, holidays? XQ? or do that impact of that it can to-go the us where off-premise quick average the understanding given wound week How give the two you’re number Just for impact you we level the losing think the

Tonya Robinson

to-go, which So running I we’re year was ran of basis, versus QX, that pretty was we to-go. about that’s – about year. much a on last XX%. in about about – being on that And X% X% growth XX% think been line full in sales

to question, overly because, what as it’s might volumes On the given perspective, the as volumes don’t similarly what margin are. margin about those far think just costs sales think cost, we I going how be react QX a the on I react, in to think, impactful weeks, will probably

our be expectation. would So that

Andy Barish

you. Thank

Operator

Your Saleh go ahead. BTIG. line of Peter with from the next is question Please

Peter Saleh

with entire on and XX conversation you I quarter and congrats year. point Great. about wanted Thanks basis the the guys at that go fantastic Is mentioned do these end weeks? high after again. above point guys will points a in market I pricing you Kent, you calls take in that a level March. the coming that the know you it possible ask of some to to partners

A - Kent Taylor

Well, don’t those have I let me. I I I guys them, to what clue know I I tell you, don’t. to talk can could but because going you tell me want wish really know. no before call you to if all they’re

Tonya Robinson

not have do we the the going range, just we really sure, is where why That’s range really, they’re to for Yes. land that. on

especially of state-mandated. are got labor filling pressure, a You’ve lot certainly stores that

can done pricing feel do their come I I I in far may and of say, as like all to markets You in those competitors, And the types Hey, – research want things. they’ve it. as

think can to they So us be they be. going to where that they’re and talking about

Kent Taylor

to So of few imagine, you has of you them a because already has talked kind Tonya given she can clue. like a

Peter Saleh

Great.

for Okay, year. for if increase? the up the was $XX think this, I’m CapEx it but sure reason I not guidance, fair the What about missed the million I enough. was

Tonya Robinson

Well, going there. there’s a couple on things of

that situations land in of versus originally Some we’re than leasing land expected. on is the – some more it what some we buying fact

So out. a that they’re typically, those aren’t are on little deals bit XXXX, further

little how you’ve work. looks – year’s is then also we plan of the it for like just a those think the of that might So what next try and we to timing pipeline

We’re in kind we as an back bit applies and into what XXXX, we how will those costs of a left making for little estimate think that incurred XXXX, too of head on be incur. XXXX and we half of to the have

things other into those come big-ticket there really it. isn’t item, that So play, or be driving all that, will anything of kind like of any

Peter Saleh

Got you Thank it. very Great. much.

Tonya Robinson

tell you that. add two also a are into I’ll Peter, piece relocations of Yes. that

Operator

Your next Raymond James. of line from is the Please question Vaccaro ahead. go with Brian

Brian Vaccaro

sort that you good cadence favorable first your through to you And commodity half? expect for spot of flow that expect the ask COGS wanted curious can the Thanks, half about see? frame line? I seems just inflation it that to deepcuts lower how outlook, just and been could prices months. you you second or Or in quite have certain inflation evening. recent And

Tonya Robinson

of half back the of the Yes. half the the we’ll the think the we cadence, higher first Actually, and on in year. the probably range year the at seeing of of more end in be benefit

basket. We’re the And in locked than the of the back. that locked half of the little year a over more XX% on that’s of being front

numbers that a get on, year, we the right inflation the back there, range. expectation bit We the our little think be bit little of which visibility now. we So have more of which to bit a half what and of will in benefit within little – in had little bit that’s down those a XXXX may drive a is we higher

Brian Vaccaro

cost front, labor about fourth the the that flattish the the of were I you so about on week. quarter, sustained XXXX? Has ask hours far just seven in said then per weeks holiday flattish first to high-volume week, And the excluding wanted trend through Okay.

Tonya Robinson

full that haven’t tell the similar see or XXXX, about trend. into guidance, Sure. expectation – we to Really, our built numbers a you, released we’ve year we trend do that. I’ll talked on those the continue

that’s of into built So lower that of kind range. It’s the expectation. that end

Brian Vaccaro

you. Thank Understood.

Operator

go Please Patrice line ahead. from of is question JPMorgan. next Your with the Chen

Patrice Chen

guys, for question. thanks the Hi

labor there yet whether where with other be possibly and labor beyond maintenance, waste We’ve be or P&L stores, like or, areas there in it one. further? but increase in labor, management differences are portioning any with food drive material where Just to margins maybe seen cost store tension that are around could the addressed like repair among –

Tonya Robinson

those really our there, operators not There’s compensated, a Yes. way. because opportunities. really line the I results managing the on are costs in mean, bottom those always way of great they’re

a not that we restaurant say, perspective, really targeting I can to hey, see out we’ll here some in from that margin money we’ve think So a got there’s don’t that. bucket save. we’re anything there

sure But line, talking on. the like to you’re of I’m we continue that. really something eye keep amounts look not margin, on are any G&A restaurant an continue a even that an I below take G&A and perspective, from on think and So huge money we’re levers to big just and continues at it’s to going But be – opportunity to that pull anything that outside to see. or

Operator

call time. over There are remarks. the management I will now this at turn for no further questions any closing to back

Tonya Robinson

joining everybody, for us the Thanks, for call.

feel questions, great reach a free have and to any have you out, other week. please If

Operator

Thank today’s you. us. Thank This joining concludes you for again call.

You may now disconnect.

Texas Roadhouse (TXRH) 20 Feb 202019 Q4 Earnings call transcript