Texas Roadhouse (TXRH) 29 Jul 222022 Q2 Earnings call transcript

Company Profile

Participants

Tonya Robinson	Chief Financial Officer
Jerry Morgan	Chief Executive Officer
Brian Bittner	Oppenheimer
Jared Garber	Goldman Sachs
David Tarantino	Baird
Chris O’Cull	Stifel
Jeffrey Bernstein	Barclays
Peter Saleh	BTIG
Eric Gonzalez	KeyBanc
Chris Carril	RBC Capital Markets
David Palmer	Evercore
John Glass	Morgan Stanley
Lauren Silberman	Credit Suisse
Jon Tower	Citigroup
Andrew Strelzik	BMO
Jeff Farmer	Gordon Haskett
Brian Mullan	Deutsche Bank
Dennis Geiger	UBS
Andy Barish	Jefferies
John Ivankoe	JPMorgan
Jim Sanderson	Northcoast Research
Brian Vaccaro	Raymond James
Sara Senatore	Bank of America
Jake Bartlett	Truist Securities

Call transcript

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Operator

Good evening, and welcome to the Texas Roadhouse Second Quarter Earnings Conference Call. Today’s call is being recorded. All participants are now in a listen-only mode. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions] I would now like to introduce Tonya Robinson, the Chief Financial Officer of Texas Roadhouse.

conference. your begin may You

Tonya Robinson

be Thank you, should the By you section. may evening, quarter texasroadhouse.com website in the and accessed to good Investors also it have XXXX, for June everyone. on our our ended at now XXth, Emma found earnings second release

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

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

today with Officer Executive Texas On of the Chief Morgan, is; Jerry Roadhouse. call me

open we Following the will call for our remarks, questions.

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

Jerry Morgan

Thanks, evening. Tonya good and

with results impressive at driven concepts. second are sales our by We our pleased quarter

still remains $XXX,XXX over as quarter. In It we restaurants return sales was the why we historical enthusiasm in to was guest is sales trends, quarter, operators counts nearly XXXX. generating XXXX our throughout high the For saw remained not dining per and both in average levels these restaurants ever. our future room $XX,XXX To-Go restaurants the our our sales, at have above sales XXXX and second did see also our seasonal in or seeing that volumes, the quarter, that which averaged the for per To-Go It comparable to week week. in as great dine-in both in our XXXX encouraging

total our we slight decline traffic. result, a experienced in a year-over-year As

in was counts to Rather, in appears routines our We when our normal habits, dine-in comes dining believe To-Go increase guests. not the and offset demand back guest do that are the change vacations. decrease schedules restaurants. by As work to getting their in overall a for a people reflects more it it this

that execute in performance of that we traffic, the second believe third To-Go and four confident the supports trend. continuation sales a weeks we business. quarter To-Go first Additionally, Despite in in successful traffic quarter decline the saw we ability a this to our remain of

in initiatives this are execution receive menu As service our in legendary well investing pricing. to our our digital and time, guests dine-in our and are are our we receive. above At sales development overall improve levels, food same legendary To-Go evaluating To-Go several settling our long-term the October guests we pre-pandemic that ensure and

gathering our to from right their and will stick our true process As restaurants. always, of believe is to operators listening we feedback for and tried what they

guest is We last are taken our pleased from acceptance key been This our and by be increases XX has always important, have mix any of proposition negative have because guests’ months. menu or the pushback seen we that signs we price over of that one the differentiators. price the value will not

consumer it to menu is especially expect a when comes be when time inflationary So, pricing, to at we cautious the pressures. feeling

additional July. in them a year. restaurants quarter, all and opened with early and an Bubba’s we two supply XX On remaining company-owned Roadhouses construction. Texas chain one into is noting Texas Roadhouse year, We restaurants push few we delays this remain track unopened on worth under It open or next have and that approximately any currently four already Bubba’s XX the of Texas the front, during Roadhouses XX development company-owned to opened second construction could

restaurant later franchise open two to expect also We this Jaggers first year. Jaggers company-owned our and

– internet franchise to partners international XXXX. restaurants on are our six Lastly, open in track

new are on volumes. are continue prototypes of the and similar in and and business of dedicated This that better new guest and being restaurants going have the storage to counts built as high going Texas kitchen, we cooler but seats, expect to are more these – Roadhouse buildings. a the To-Go year, space expect open area. with restaurants of The we to open that larger built opened These mix the will with volumes restaurants well forward. forward majority this sales holding and Our that more the as number support we a

above the these comfortably our costs returns higher, target added is the our square development sales to pushing due remain strong of While footage restaurants.

beginning, As I each our future they excited development, are us of with long restaurant the the at future stages growth. different concepts. all are said of They for sales combined, we runway for the of and but at three profit provide

a Tonya update. Now, financial provide will

Tonya Robinson

Jerry. Thanks,

diluted growth second XXXX, the $XXX.X and of of $X.XX million first $XX.X of by unit share. income. year benefited of the X.X%. net Restaurant an average volume dollars EPS, the X.X% per decreased X.X during in X.X% week XX% grew million half repurchase income to the shares percentage net The quarter For or in last offsetting of to driven and to decline X.X% increased most of stock margin our store compared year, increase primarily million of revenues

check X% growth, and growth guest entrees. guests declined of dine-in room choosing comparable Check dining overall, continuing order sales mix of average X.X% guests a X.X% positive up driven quarter, the while well by year-over-year as by as increased all driven higher-priced was restaurant the traffic traffic percentage X.X%. improvement X.X% includes For to

sales averaged restaurants total represented weekly As $XX,XXX these To-Go quarter, of weekly XX.X% sales. in second Jerry our or approximately mentioned, in and $XXX,XXX the

this were for at sales XXXX. same number the quarter we our and third X.X% part periods, June for was and the X.X%, the knowing in And of increase compared comparable quarter, May are our comfortable X.X% weeks that four to By in as grew April, While declined decline the To-Go by respectively. restaurant. first our year-over-year X.X% of of driven period comparable in a dining percentage throughout guests sales month, the

While level of count are this June trends rather consistent our guest is change a the this This function believe a the we of XX% sequential lacking and in quarter year, the which softened trends, comp approximately rate by year. from July, than last that increased significant in is percentages supported a we comparable at belief three-year throughout of guest demand July. sales the in second more

points as second of second the to quarter, XX.X%, sales restaurant the total percentage For basis quarter compared XXX of margin down XXXX. was as a

of points dollars XX.X% for X.X% Food a XXXX. focus also sales we the XXXX. basis margin a of per We store compared in the restaurant increase XX and total later to up were which second as from QX costs beef quarter. approximately as percentage prices $XX,XXX, than Commodity better on quarter, expected were as of primary XX.X% driver compared week, we lower benefited beverage was to the inflation was the and

commodity and our updated for guidance XX% have with roughly quarters, fourth basket of year full with XX% fixed We inflation the approximately prices and XX% commodity respectively. third to secured our

increased XXXX, a prices cost for This beef have increase while X.X%. total been our in XX.X% as week as to a per adjustments to QX XX spot comes sales QX in charges wage compared some increased the to quarter. While we’ve declining, X.X% workers per operating were costs Labor of points basis offset full Based other unfavorable to year-over-year lapping X.X%. in of insurance reserves as labor partially dollars COVID-related These card this in store approximately points the million credit average XX% store driven due $X.X beef year as adjustments adjustment labor fourth includes from our of and Other and and maintenance areas related comp to of million expectation well hours lower restaurant higher current growth include our and employees, The was higher partially to to additional repairs compared $X.X and increases XX and and to unit inflation and expense. by net million was group in dollars inflation sales such by volumes sales, offset leverage year, of to adjustments benefit basis by week of costs labor $X.X payments utilities, wage as last the XXXX. bonus year. reserve were benefit percentage expectation increased which other X%. $X.X The a favorable current trends, our programs. on elevation million

of restaurant below margin, year-over-year The $XX.X was with Moving X.X% our growth that G&A revenue. grew this million primarily in year. and year-over-year G&A at Managing Conference came April was by costs of in XX.X% associated held in Partner by driven

million incurred Conference we approximately the purposes, quarter, year. versus comparative cost third last $X the $X quarter Abbreviated million total in for approximately of of For in this

FICA to tip XX.X% Our the for effective we from tax second was benefit credit. higher continue quarter, rate as

XX% $XXX approximately from lowered rate As of the with full end capital operations the of debt our million payments, we $XXX With flow, to XX%. by and repayment, to $XXX Cash quarter tax than expenditures, $XX of million have from cash quarter. regards year ended which cash, expectation approximately of XXXX $XX million is of flow offset down second million such million of repurchases. $XXX million $XX million the of was first from dividend share more we

million. $X.X We restaurant franchise acquired one also for

will We capital XXXX year million. approximately continue expenditures full be expect $XXX to

year. that million million second we With we quarter, the At stock the under remaining for our in shares now X.X approximately X.X quarter, addition $XXX of we end of program. of repurchased shares repurchase repurchased this over million million the second have have the the share $XXX.X

Now, I’ll call Jerry for to turn final the comments. back over

Jerry Morgan

Tonya. Thanks,

incredible spending by with higher satisfaction, during following. times more increased Roadhouse’s Texas history are to this shows larger loyal that value and like through a being period is discretionary fully come these, positions us aware and that impacted But We prices. guest

the focused we the into our will year, legendary of and and year first next foremost legendary our service. plan move we remain As half and for on food back

our Scratch fanatical will and Heaping our remain both food. Made about We maintaining side from

to loyal staffed our also our We in properly billion history. In closing, and the all our will and want to needs. guests, order drove $X partners to managing roadies in who and ensure time that sales quarterly restaurants their are I guests’ our continue first thank meet our our to teams, for friendly also attentive with over

will additional Operator, shareholders our are position for And operational continue smart for our performance, confident allocation roadies opportunities create please that ability growth a and approach time. We strong their lines operators the disciplined over in continued create questions. to along and results. for and value open highly us to capital delivering with

Operator

time, [Operator yourself today. ask Instructions] In matter Thank that and one question of to follow-up limit you we you. the one

with question the from Bittner Brian first line comes Your of Oppenheimer.

line Your now is open.

Brian Bittner

peers wanted were seems other you quarter. last communicating. us Great, thinking and is bit that Good when as than the better little the around be getting And side they’re your your I food a afternoon. how thanks. to seems it of to originally though talked cost relative the equation, about costs you ask outlook to way to

So I guess the expect the exposure in But again to is you the fourth helping. you quarter. in said it near-term to beef spike

thinking COGS that So can see. you moving now you’re XXXX us side? cost talk follow-up the to how the nice was us the first trend – frames which margin your sequentially to ask that, to about for saw on you just forward? about your from think beef quarter, And I’ll do we about the COGS is, want margin which was improved to How in how

Tonya Robinson

quarter. Sure. you on the across a XX%, to that full know beef of good. fact to driven was guidance second really the were commodities we soften moderate we did, were Brian. costs Thanks, And able which the seeing by year Yeah felt it that lot down we for

So that way and felt those QX. great they especially the prices to in really did QX see, after spiking

spread right proteins, of we’re it lot XXXX. too like maybe a – hearing across as dairy mix, they other seeing haven’t prices commodity offset just experienced that, now, of basket inflation, oil, the think other bread we’re And look the Some higher what we that’s in was are folks by I potatoes, pretty about remainder is just chicken things talking seeing you’re the those line across that items other at items, like some evenly of beef so pork, basket. truly

XX% said, QX. think did might prices prices locked we in And we what know So on XX% be. in you locked QX, only beef about as

some right beef you uncertainty know as could and we’re is capital to risk you issues supply, taking there But So on there, go how lot either know of hearing that. feedlots some farmers about way. beef now things like cattle just potential a are supply,

in there could know, that create you expecting some of QX. pressure kind – just later We’re on could some be maybe

that a So But lot we’re kind give how supplies lot still as of beef know and that’s say really can’t – seen. on if will know an impact. get beef out – that timing supply other thinking remains all to it that like, of have restricted into depend the Obviously, what you plays is. be to in XXXX how outlook that looks can you XXXX, on a than of what you

forward. kind see of we’ll So what happens going

On with heading into tell last you of part I’ll question, the you the – higher, expect think line, would like just the the in have little half the And we COGS – But it. see you line back last be of back flip about We we’re at know your year COGS deflation of maybe so question up of especially year. percent, is some margin bit this year expect Brian kind half we the pressure of continue QX. to much kind to you you, that on kind know I what felt beef and expect looking a COGS way last was in to were around QX. those on little the them of would to do coming off still to numbers they far of year, where went know the we’re a back year compared that in

Brian Bittner

Tonya. you, Thank

Tonya Robinson

welcome. You’re

Operator

of the comes Goldman Jared question from next Sachs. line with Your Garber

now Your open. line is

Jared Garber

more inflation. quarter question thanks consumer taking you conversations typical approach actually always of of price Jerry that those more line Great, like third about bit of sounded your that more operators. with and little But kind being Brian’s It assessing measured pressured side. you’re broadly as increase you with follows bit we have and think for your thanks the a you’re – the the mentioned pricing questioning. just for on a a

– So customer half and you just the now positioned round back incremental more pricing? that there operators might increases? to year thinking what little Thanks. may a be Or the towards that it like reason how the brakes can you’re know of to bit us you is be give with color absorb of the another pump price the the on right be conversations your time are a may on

Jerry Morgan

our conservative we Yeah. in side from with approach think I And will past. it the have into go as we a

to are and we will where operators really that We our folks hear and our best in business try make and – for and can for the at, then see from the our category consumer. our decision

XX out – it’s to the know do what and a the with the how everybody, conservative best days that we’ve into these we’re like obviously past stages have hear said, for we early that like we’re see feel so costs shown And in you it the next kind to we possible right we too in if the we’ll are we business balances you of thing make have and and data parties. then do our in and shake where once approach at – go we the the and but both from see decision and try we’ll

Jared Garber

Great, thanks.

Jerry Morgan

Thanks, Jared.

Operator

Your next from Baird. Tarantino David line comes of question with the

is line open. Your now

David Tarantino

the you very on you relative But my business at your know. And would well question the on performance, consumer anything up seeing I seeing look what your of it’s this A a crosscurrents. is, the a or couple of about elsewhere. afternoon. guess we’re I at questions are holding good surface you your – concerned trends to Hi, sales under point, at that I in lot there’s least know consumer healthier make

any might or trade you point. pause give signs seeing down you’re So this if little or at otherwise – that wondering know a either you

Jerry Morgan

be little two felt end back changing you people you process we seasonal knowing the to weeks of a getting I back really in like it. of we’re a bit I July normal to their here and work going we’ve I haven’t know been of school to think that at three back have we really some in aspects. seems almost But it will mean, It an operation that next the tell would from got like said standpoint, has habits to routine. vacations kind to and more

very obviously that consumer from the which our rooms – for Made high is which hungry and is great are we us, to still the is full our be in from the very the So restaurant. hospitality continues for and demand Scratch dining

good from is like which said, for our that we aspect high exciting. So, just us, you feel is demand

Tonya Robinson

because I it and you misleading percentages confidence, see just nice be some continuing at bit I’ll it’s and it noise know David sales think grow what you to Jerry you the you the crosscurrents can too you, look mentioned, because as mentioned, those like a the you tell of average weekly year-over-year. as again gives when dollars,

bit see was moderate shift a the little feels back that you room that from being bit expected. good. more a from So as saw dining and more, mix we bit mix, little more have would you To-Go a bit And we the into a know perspective down

a of but in we got moderating that PX on mixed it’s little a we’re would would know bit bit isn’t we So expectation positive, us the seeing kind not little the and changing is mad, but expected, more benefit still you thought consumer behavior. and as that is be, even mix really lead and PX or we would behaving have believe their pricing of through flowing staying to anything

David Tarantino

my And follow-up hear. my to to Good is this. related Jerry, then –

know in kind major were of downturn had we CEO a consumer the time prolonged You you spending. last

– was the of one lot environment. there’s get curious I just approach you So in a how if on you your about a certainly on know to hear concerns philosophy downturn, we that would

not to what scenario? wanted you would you do do So were get or thoughts that on to differently just hear if your differently

Jerry Morgan

to – the in that said to when Yeah. running our that know friendly I saw things I stay so and true promise on – a our that that value, and do that they the as best money. door born actually you – spend to where it, know things And earn we really And guest happen, kind do our that as good the plate thing a food, And it so walks I money’s of was when and through feel the I will when that’s the when experience our State partner that did were tight, of thinking every deliver Made because and best provide so restaurants to long is that – an And tough, their we’re going our their with about the place really and Scratch, they’re we are Heaping of the thing. about. have Texas. dozen when sides, you they’re from going to – service businesses to we’re our to friendliest market that

So that over deliver to it worth that be it’s guest we to exceed think to so really continue many are items, the we’ll very them strategy to I I country as to them. have controls, our And our our to refer on always have menu our experience, will look expectations, has and would at value-oriented consumers. dinners our we cost to – would almost

focus into sizes So, the menu are that and items we good built that portion those very on great value. and to the extreme, from beginning

focus our continue – – think do I so or value-driven I but our want push menu will and any reduction you I into harder, that things we But to kind and don’t of overcome do need try but deliver and of we promise. just we it. go we to plate really on we that items, if think know to on can the shrinkage know we’ll So the you over to get

and fight earn the the will fight will from our business we We consumer.

David Tarantino

you Thank sense. very Makes much.

Jerry Morgan

Thank you.

Operator

question line Your comes Stifel. with O’Cull the from of Chris next

now open. is line Your

Chris O’Cull

summer to sales a as the weeks. mentioned And normal consumer or the the are you year? seeing industry choosing seasonality to last guess? we you’re there’s to slowdown – summer Thanks. less in as But been not affected and spend should traffic. patterns, like-for-like return seasonality gives And a having versus improvement this whether Jerry, several – what seasonality there’s reasons past has as for I weaker debate that have performance the confidence to start return then a see to seasonal school an you normal relates begins, comp that we

Jerry Morgan

things reduction, seen year, a back and summer, you which we weekends time of school Well, And soften studying we is holding, your know be that, has weekends goes maintaining a the what what the the our like guess week out little our if back days softer enjoying kind and typically your during – get that’s a the compare – would actually your I typically get think weekdays flip, we’ve been lake go over because busier. weekends both people to a I up that. summer, been while in different although are slight we’ve normal and and when and

see back this XXX% more think So we the trend. wouldn’t to I it’s hard the year you it interesting of classroom say go normal? in consumers know I back But – back to really we be to to and most will – completely routines school kind are that. of everybody back we with normal to will get year as would a

September, So this we’ve I know weekly sales that bit past the lot. think October growth tells August, big average positive over time, I and is the – because guess softening you little be so just it school but standpoint But always number a in I sales the us sales for a to see a some big that at of transition. lapping continued so be we we’re do to from pretty numbers typically of determined the

huge as importantly, More the got to to up just demand, live a we expectation, there’s

Tonya Robinson

so years And Chris kind a lot you more maybe to too, of you of look if which normal. think you know comparing that consistency number that know I XXXX, mentioned stack you three in back number. we was see

what on continue through PX, the continues know assume if you in the the of be year. that the comps year, so in half back half you you back some you can And of that give to know confidence

of of a losing it check. are some So, you you bit know,

late had we ‘XX. that we price that increase in of know You took X.X% October

all have. And the in the half what in year. of little rolls will really some And we of that just in conversations mix flattish moderate to depend more area kind that then do back to the on from it So, a back traffic. comes the down we expect pricing

Chris O’Cull

the what Tonya. And be expects – Okay, that’s $X about you The the location average question, last stated quarter, helpful. into are investment year? investment? year is, building investment to Is open building of Roadhouse million you Or prototype continue XX-Q help another changes at than planning else this Texas it then ‘XX? higher could reduce the considering to last the for that level company was company spent this or something to the higher the

Tonya Robinson

a there’s on Well, of that couple things in of going kind increase.

You’ve got you of know now the on right the things. larger prototype then is building a labor, also we’re piece there’s feeling equipment, that costs, of those it. just But inflation all

that would So, come cycle. would that there that down be And be we those some through as see down hope. would expectation a bit little get back the you numbers know inflationary come perhaps

– though control those know manage and deals, for looking always ways like costs to things to those that. We’re you

driven for more looking by right deal all of it’s inflation on the looking else. best anything We’re things, rent, really but now, than really, you those we’re know for

Jerry Morgan

Yeah.

– the those of think – we’re few got the in digging couple the And I fact. some right we with we of the will trying a package by end little the of reduce have the without full that initiatives maybe opened of to building costs some changing really that of could be now restaurants initiatives. is that really the things year, the got to we’ve deeper But down, On on a a anticipate I do bring Roadhouse to few probably we’ve see. that a we’re side, think construction initiatives Bubba’s on

hasn’t it. And pricing some in things hope so out. able right when we’ve it than more at cost. to go some then and which on on on to maybe to But more or change able kind we we’ll that couple Bubba’s as to building the inflation we’ll costs increased know look down any, that the comes being Bubba’s now, of for probably And up a Roadhouse reduction pull chew of been side, so road it the continue

Chris O’Cull

Great. Thanks, guys.

Jerry Morgan

Thank you.

Operator

comes line Barclays. Jeffrey Your the Bernstein next question of with from

open. is now line Your

Jeffrey Bernstein

very you thank Great, much.

with margin little on the a just Seems restaurant a for you the how the labor. of question the more for like And into First sight back And You other blend is line your what’s Or expectation. half you which the was better that maybe know restaurant year? unknown, pretty certain side, but on and of pricing, tempered takes? do commodities back the half half flip good have the than to all expectation for have know a think of second margins to year? on yet? return Just those the you intention about do your puts of you target? bit

Tonya Robinson

Sure.

sales too and QX I think of lowest you of as kind return think way QX typically that know we to I normal some margin seasonality, quarters. are margins go and you some see our, know

you we – continuing besides see on commodity know the bit continuing think of you year. some line, going you depends of there’s kind of margins the and costs an know impact you’re half look to a lot rise. see labor, and an starting rest on that that continue that a pricing operating up you’re – you I utility point impact costs, I traffic So then fits for back And into be that. land, other those things could the land ‘XX. the know the what how know you where has inputs back know And in to just on the and half where – of And like types to and might continues these

it. of think So, there’s I to still moving pieces a lot

continue. going margins the we’re that I to and going pressured and back the see think half of year – in to are be

time, XX% still how point some on margins, see back a plays Jeff, just in that point to get your I to At XX% that’s and good, kind And always you out. so we’ll feels our of able feel to know lot goal. that of and when and of what the possibility. if driven just labor happens, that a outlook expectation like that’ll sales to be don’t know by continue commodity look you and outlook ‘XX like that and know know be going you to – it’s being

You it it’s think and that be definitely we is if goal great a know achievable. but still is, it’ll

Jeffrey Bernstein

But good pretty the stay signed ‘XX. you an seen openings about Jerry, unit ‘XX, and that then just than kind you all I’m available you be guess kind have openings real I you are, talked more slip ‘XX, reasonable. I are follow-up, broadly thoughts is keen in And Understood. intrigues you just couple and totally under from and that But your wondering into Bubba’s? have to Texas construction. additional as things higher? the know, rather more estate XX a But which of to a XX uptick delivered. don’t about what feeling restaurant on would in there things pushing are all maybe just could pipeline you that mid-XXs between Or your early or of thoughts think

Jerry Morgan

I Yeah, you pretty very if a solid, it from you bit and tell up optimistic, ready. we would anything right including now the higher looks not quite pipeline And than prepped tell would I ‘XX be – looks have we’d pushes.

get on deals bring that guys there to some end in there really ‘XX, us where to some focused out hard we’re opportunities. trying really have higher good been to So been our working have

and we real that. we’re expensive you optimistic you a it’s it’s there, can being availability very aggressive and as business. I little do to to available But out estate where that far more want know it, tell on it’s feel like said, and you I the – go, So, bit as and

Jeffrey Bernstein

Great, thank you.

Jerry Morgan

Thank you.

Operator

with next comes Saleh the from question Your Peter of line BTIG.

Your line open. is now

Peter Saleh

the to consumers Great, want conversation and behavior come back thanks. know the to around there. I you

seeing quarters past some steaks. or larger consumers trading still smaller in the so, steaks up to were think I of you maybe from the several

of check in be seeing you’re that you’re seeing would helpful. management any appetizers, that know Just reduction or at wondering if if all desserts, of signs drinks, anything a you sort still

Tonya Robinson

seeing Yeah, alcohol, you entrees, bit, numbers softness But bit shade seeing Probably would still signal you anything of some that Peter up. on know of really that a within bit we’re the pretty if you number you bit seeing on so happening we’re not you happening. a seeing anything even still last food lacking seeing a softer. know little though mix, that know little categories we’re alcoholic know of the know, you year, that strong you on you’re a of any you’re that the that a – know are still little the maybe beverages

So, good. that feels pretty

Peter Saleh

last what remind have comparison Great. the And what then we can this us, just July, September, August, the good the one-year were year? way in – you for Tonya year a comps just

Tonya Robinson

that want – last year comp you So sales

Peter Saleh

July, – August, September

Tonya Robinson

Breaking down by the month for quarter?

Peter Saleh

yes, please. Yeah,

Tonya Robinson

numbers sure you me make here. the me I’m see let right giving Yeah, let

So, those in last the August XX.X% XX.X% September. in were and year July, in XX.X% numbers

Peter Saleh

Great, thank you very much.

Operator

Your the comes from Gonzalez question next of line with KeyBanc. Eric

line Your now open. is

Eric Gonzalez

I’m the off-premise about business. Hey, wondering afternoon. thanks. Good

to You how take third-party a that I does some was you’re of to But your play to significant if industry. believe income. to – see of expect say know I to the that wondering that? before how were would of enter about you guests macro how we profile which And downturn, to across vice dine-in seem be out or slow Thanks. the out might give dine-in wondering business And customer thinking you little you the playing business takeout headwinds your economic versa? would the Just arena, is which compare don’t more the guests. vulnerable higher the bit

Tonya Robinson

Yeah, a great it’s question.

that don’t You we know know yet. I know

I been bit. dining interesting as see a traffic think slowed the has room down to it’s

dine-in. from to folks more moving maybe see back To-Go You

know mix similar I otherwise know I seems the seems to – of the the but what of as think – the because seat difference very don’t have transaction or that there of I between a think obviously on waiting so transaction guests is alcohol long decide get spend, rather they’re don’t as similar. what is a get mean, the you was I during helping you able some just – like in sometimes big those To-Go wait week, that restaurant, to as being is than that restaurant don’t I consumer inside the you maybe the function far on very To-Go, far that. it think a anything they into

that good. makes really convenient. that of pick So from I all guest I technology to it restaurant very I likes the But the convenience they we’re is just up very think it to transaction is seen, added be that can the perspective what convenient. think and order remains to the way And come that think seeing. The we’ve To-Go,

So to they’re seek I way and to these that just out. going that people look live think you be continues – for know the with something days,

those look, sale. – of we To-Go kind continuing the drive way it’s we’re very to focused would we’re on So

Jerry Morgan

restaurants, into dining Yeah online which a ordering give online our easier long and that. integrate working the kitchen. helps phone switchboard system basically a To-Go our been orders it’s we’ve little or whether Eric, on smoother to little a room orders call the rolling what our or transition all a and it University walk-in, an summer and be and Currently, just in confidence out Mission we on Statement

operators the bit it that business that confident handle little So our more giving affecting they a it’s room. without can dining To-Go more

So very our XX education every this to be and believe excited take that us software segment. we orders confidence to able we’re with operators – we’re and minutes more will in the allow of

so their pickup – about our our without that’s And they process. can right more obviously process out it confident the on great more this and successfully, in is going business. even our that and affecting about our order dining we This our now. To-Go business And feel restaurants operators windows feeling handle

I So last To-Go. been level initiative and witnessed our this doing and watch one to it out execute Panama in just is learning coaching. a weeks. to the room has myself. at operators are it just and coach very – And two, And experience our that we’ve personally – our excited to or teaching we’re eight higher business for that dining an and service when Florida seven there team a have Connecticut one great City, and product it is comes been about for us experts in some how

we’re for at to we an To-Go to get better very are standpoint, from experience operational to that and that be – execute excited guests. our going So continue we’re able

Eric Gonzalez

you. makes sense. That Thank

Jerry Morgan

Thank you.

Operator

Your next Carril line Markets. RBC of from Chris Capital comes with question the

now open. is line Your

Chris Carril

Hi, thanks base. restaurant for in taking the in question. existing I capacity restaurant ask wanted to your about

in levels. on-premise. little the then as we’re well where you’re shifting above noted guess, I XX of off-premise seeing And to bit mix a counts formats larger development, XX and guest as moderating restaurants You

So, how are you thinking about meeting demand in the restaurants for that?

Tonya Robinson

look Well, typically that continue know this, the at the comps to see most it’s the and successful interesting ones the restaurants drive traffic. anyway you continue we when are – you to

to to though know seats. That adding in they’re bump other a guests ways be their just they things may bring that. folks and you shoulder utilization the might getting – the continue out bringing ways on and in doing finding door, one like it they’re seat be So way, and periods

traffic. find to drive continue – that always they interesting ways So It’s it’s drive to see. – to

maxed So or capacity ever like a we have we that know that out that. anything is would store don’t say I

they great to it. to find ways – they think I continue do

Chris Carril

The other And it. to for then you if the just what little there. quarter. you outlook inflation costs. And a maybe about additional provided labor I could any Got labor than bit my on is wanted outlook follow-up, wage and provide ask maybe higher detail last

curious as of trends that? Are expect remainder out to those play how over So the going inflationary you the year? are to Thanks.

Tonya Robinson

of you know you in QX. yeah over built Sure, QX and X.X% it most was know of into guidance, wage know a occurred it X% was – that QX, XX% the inflation that’s QX lot in in you it

what year. – higher of lot you really guidance for full drove the a bit so a is that And was that know

they back half. bit might back that expected started the we half the the of thought moderate we growth as lapping We in year, a know – rates higher in might you wage

now originally maybe as still much not not thinking. we were as – we but will We’re think it moderate

the of for investment our know you care the on that’s you know you a we to want our thing, levels something of that that a focus need So, people staff to right so I at we think people know continue really know is are sure taking have big you big us, here staffing to do. in we ours. doing it’s and at making focus And

just to bit maybe just the might what of we in higher drove the really expectation more think that be. what in it saw that. But they trends – It’s I really be a expected was them was QX we they’re touch So, a the back than half what higher.

Chris Carril

Right. Thanks much. very

Operator

Your Evercore. David comes the Palmer question from of with line next

open. Your line now is

David Palmer

the your some thanks. Great, on just to food costs other follow-up comments. Good of evening. Question on

So the it’s that the Tonya beef in second back all overall food a are be I overall piece comment I’m that’s costs quarter. than like But have for You that you you think And things you I for about mention fourth your trying half, third X% would a that guidance the direction going prices thought might the to or overall down I implies together, think not for that? basket. these often your in to different mentioned, that be your up going come that something plus, basket beef that did think up quarter.

very what next really earner see you’re two maybe you distribution. over in going that is, know thinking the we then my And basket, berry your beyond else about quarters So an quarters. regard steak the say talking to would something on with cuts different there’s

thing, other any that. The so love color about

Tonya Robinson

Sure.

costs large in David it, of the last increase some do we’re one with you lapping was saw what really for saw have Ribeye was where cuts know huge increases. a that know in that QX You that we to of spike we year year, QX. last in

X% what you kind So expecting that pretty across half is we’re equally you the we referenced year what Actually some back lapping. the know know about in of of it is you just about of quarters. are

deflation it even beef minimal minimal. and to feels the pretty know by you – some with but say way, it’s So great

continuing minimal mentioned some bread it. do other with you things have beef higher dairy even oils, deflation, potatoes, of items. seeing the So those your you are basket I other cost see to All are parts mixes, know some that earlier, proteins

just in a And prices. beef product. So XX% pretty across only of doing that. we’ve then are you really it’s the based really seen before. beef movement to of And more on even higher being it’s seeing on kind locked the QX. minimal Again, outside basket that than fixed That’s

that, are into So there system bit just kind we’re that coming thinking. in start what higher like restrictions, get that QX, any of we’re if of just could anticipating a things cost little the supply kind

David Palmer

cracks listening price? news other there the with you discounting? in I’m ability would trends major to seem stuff. about inputs wondering And be just the about don’t follow-up anything question down. are pricing to – any going maybe that give your and the the just quite competitors seem reports have you you price? around you on trends raising and that. that you your just Is you firm, you, any where are the give made for then on pause Thanks have of any The you would know you a You that terms make raise that would about seeing know Thanks. – about pricing that mindset make to power Or suggest anything your trade corner? you comments they’re three-year what’s to

Jerry Morgan

I what wouldn’t the our to be question. At this hear get operator. as really point, I going from still costs are to to and want educated

with hear know that the look conservative go And time we the it obviously then decision we a of mindset, inflation for all procedure. because believe a you And at we you numbers different make deeply. a these in best areas. it’s into obviously we’d know you business a balanced in difficult So is

the what’s our So in believe even and consumer, do going attention you grocery is we we what take know we will attention to pay to of in to care important store. industry on pay the

– we know don’t know So have, going want think you to, to, where we have have know but do we I just to we we to don’t land that now. I you right it’s we have will something we and know

Tonya Robinson

is And David, are you you, know know still I’ll that commodity inflation commodity cyclical costs tell cyclical. we you in believe and philosophy the

at inflation So will are right turn. now significant that – some some feeling we while you point cycle

we and and bit count and done the that may back during you that us and benefited loyal chin in short-term us means really more so and philosophy take past guests hasn’t being that so. what the the little to know And changed on we’ve that’s just it cycle it’s on coming a

David Palmer

Thanks.

Tonya Robinson

Yep.

Operator

of comes the with Stanley. Glass question next John Morgan from Your line

Your open. line now is

John Glass

being – third ask margins a So points XXX starting pricing a hundred not know below quarter, margins way? you in basis restaurant that there half decision the think but there half to Or point yet margins reason kind you first restaurant you to first is down COVID, know back know follow-up is just the margins typically back make years back fourth prior think points can you’d I about were reason reasons the the about what reasonable is Is to about this, question the of first a the understand discussed. half? could quarter? I If seasonality a many in know for in Thanks. any on couple half basis to in pricing I for half the think a margins that we

Tonya Robinson

it’s we’re just from then you on to unreasonable that’s head we think of to a inputs? be that I where a normal good do we’re And kind lot these there. that’s what of going can have, of point pricing of start that’s that, be? look taking? mean really cost looking a obviously, know, moving going looking seasonality know some John. much you does to I how into starting And don’t land think historical – No, you as we All trends looking are to be for like at trends back think margin perspective? do pieces know sure. at I continue some we to What we So, traffic

John Glass

that pieces for on the To-Go, about one you consensus and don’t Yeah, but a now, that, tested? talk this can me Where It’s right? at how next might that important maybe have considered What is KDS talked is that point, about they but I business? think are are impact was things was you technology XX you about If I that? broadly just I know more technology the if the misremembering, Jerry, I And months? yet. forgive appreciate that being you it. something other think

Jerry Morgan

thanks. which stores XX% usage have we give it, you currently on that and right, an XXX over in the Pay stores the at our Roadhouse update All have concept. well, there’s an I’ll

you’re that very of is quicker, care little because consumer it’s that using So, pay exciting take know a pay-at-the-table, your turn them tables you right the helping it, the is you up. there

Shakopee, opened no an loss train is about you Digital completed the to going Texas tickets, now, we believe a positive, the employees. and of kicking Pay, conversion rollouts excited store very our we as just quality, in Austin, part Kitchen, very hence feedback times, we’re early our of right the very food new easy in year, Minnesota, the I restaurant. well, the know, So are Roadhouse And

And know look it or guy earlier lot are like that seems chief of going positive tech the talking for into XXXX. we success. you not what real I a we’ve fourth got to my So, there, only with at potentially about even was just feedback quarter,

So for there demand Kitchen. the Digital is definitely some

confidence our be to there also, we’re all out And week, training online ordering training right next again, partners have doing now, we about session we the town that. that the on coming want to our in we but to at we’ll not execute only of only talked tools restaurants high a We and have able as take switchboard, we to market to a them operators execute give available want to more – orders, that for level. want not to To-Go guests, but we that are be our

the are we forward. continue So, anytime to success with enhance we experience. having can about excited now to currently use the guest right going Those technology top and that three are

John Glass

Got it, thank you.

Jerry Morgan

welcome. You’re

Operator

comes of Lauren Suisse. Silberman Credit the with Your next line from question

now is line Your open.

Lauren Silberman

on helpful. trade specifically? Are your end demographics consumer proposition, you getting you from that the you’re can value seeing consumers average from behavior Thank on higher the lower with your down benefit very be the much. cost consumer. any have And color would given of restaurants? differences strong in any give I Any sense you one

Tonya Robinson

track the that low way. guests consumer. I our really Yes. answer I on end don’t don’t know if can it We that

for So on it would comment to be me tough that.

value I you the who’s see the their, attractive right, manage on looking very what they’re guest absolutely you’re menu to can being spending. know a to overall think I

on into So fall there’s a lot things wheelhouse, that menu that the of really awesome. great is which

is of part value on the options some have menu earlier early day and coming you those which dine, provide We the in hours too. the and great there that know

the really speaks saw we that from last trading end our when higher tell consumer great. we you believe think and helped that’s to And they food restaurants realized probably. didn’t we into I’ll good know used they us do to – some So that XX-year you had with get our that we tried us, recession the they what I growth think a – the traffic was, of I higher leave. when into really how of we paying had. guests was that that And more PPA. is who maybe And trend

and that so, And possible – that believe still happens. we that is know, you

we’re of definitely bring to know and thinking something speak to, how that’s you so And guest that that we about in. to continue them

Lauren Silberman

thank quarter. just then at traffic dine-in dine-in, And this Where you strong growth point? really in are on running Great, you. this dine-in ‘XX traffic versus on

Tonya Robinson

some a Dine-in front that three-year traffic know you I on good I versus numbers ‘XX I trend, really don’t still me, we’re know have seeing those trends. of actually. think in If at XXXX in was about I comps you’re up and what QX X.X%. kind you running go know On was in at traffic XXXX. traffic for of looking look back X.X%, But

know So in X% X% were traffic range back seeing each kind XXXX growth were quarter we that probably we in you running to what of of then.

Lauren Silberman

Great, very thank you much.

Operator

of comes with Citigroup. from Your next line question Tower the Jon

is Your open. now line

Jon Tower

I’ll on. hit guess But Most yeah. I have Great, my of been questions answered. already

maybe do there know ‘XX, knowing in curious might in late taken like might that prices potentially so just pricing, what it’s you’ve in reduction you now earlier lock of normally now again. got anything or ‘XX that even a about terms do in be beef In with I’m supply right some KDS knowing mentioning you’re is assuming or do think Is you there’s the I to USDA technology system supply you pushing the you faster? production. – proactively coming off supply could the right these out across XXXX? XXXX, X% know to be you lower Maybe some knowledge higher that now that able this address than Or hand for the do beef next year forecasting

Tonya Robinson

know that’s could mean would up you lock you can’t it a cost that great know Yeah, you we a up, of price. lock do help locking kind perspective. supply supply help from certainly of even up from we perspective, when job you a necessarily lock supply additional not I going to you But

prices lot a locking takers not So up now of know right on too you’re getting much. you

much as what the uncertainty there’s just far so as out happen may think there future. I still in

seeing really but price, could not on So, you opportunity supply. see it an on

on you moving higher prices something or have focus on we a never menu. changing away approached know steak the know beef You the from by menu

favorite items. really It’s they lot not We So front we center and a have guests tight. of our it’s – things our is menu things. are, keep we who so add their don’t and

So much I as far significant to that don’t making was would John, do be changes. either, know there there honest we as

salmon salad things have We though kind past you give or avoid our things you a you for things and in the added of know menu some that veto we like that variety to like vote. know feel know

I it, think of land you might some And know long just it that you where And you out. have to and write see to try. how cycle and of of things know kind what last. kind

Jon Tower

I XXX – was I that correctly. that’s want accurate? if think I I – something. half was points if if just store you said Or I just I being to the want in [technical margins curious it. curious I sure – something first – the make half. lower will Got about clarify I difficulty] basis back you was could misheard than that’s

Tonya Robinson

was Yeah you think XXX. to know reference I the

to see back closest could XXXX, normal that go really the you date you it’s if know, trend. probably You of more

by You as to ‘XX, know to XX.X% margins the QX XX.X%, give XX.X% was then you it look you to cross from quarter and and just XX.X%, from QX.

you, where continued in to that supply costs. of you pan some out you just softening is see do could leverage A on and up you softness that know, know you pick – know lot – maybe you of on depend going again, doesn’t you if some So inflate you see really that some pick QX. commodities,

could into know all come those pricing, You play. traffic things in come see you higher just

no So softer trend. doubt that margins the year back there it, hard are of typical I kind in typically us for say half into it’s to a of but just that’s the read the is would lot

Jon Tower

great. Okay,

sure Now that you. just I want I didn’t it. mishear make Thank makes anything. Appreciate sense. to

Tonya Robinson

it. I appreciate Thanks.

Operator

question next of the BMO. Strelzik comes Andrew line from Your from

open. is now line Your

Andrew Strelzik

guess. and questions I Great, had good development-related two thank I you afternoon.

That’s first and last know to don’t the some navigate, or that what that, that opportunities? investments prototype it’s legacy delays if The And process. been manage having or about of to there’s development same you that any need about and development what But in the to – but the coolers Is I you help demand, talked about – know one, process going more When some opportunities on. I – question. retrofit guess, in legacy some realizing storage you still successful you two. meet in you have you kind are thing? talked stores? have number but going there better but larger doing to – accelerate to stores Thanks. I about quarter, kind of those you how you maybe know the start are the first of the

Jerry Morgan

I tell you. will Yeah,

you plan can’t we concerned coming out having restaurant are concerns about, power, do able development, pipeline the have concerns our is obstacles. backup on me open are pretty up You really believe if And know needed. a be lot much there. backup lot, are That one we learned are a temporary overcome extended can I we But you’re about obviously with do at. bit. so and to we a that, power. we transformer without But that to of to a little that continue but there’s is, some I right we plan, look a we good we’ve know, a one timelines, feel now out because at item where There we’re there

different So we’ve everything some learned I in time how else the extended periods. of permitting through navigate to think of kind the

volume you more they be really whether whether able at seats, As to existing some these far looking be cooler more it restaurants evaluating to what stores it’s high and a of space, the expansion more need know and cooler and as and that handle new – we’re the or storage.

just So get they have prototypes, some building. of some brand more new we’ve proximity, restaurants a that we very move we done that in at a they success lot end a some the them so we relocated but get lease their some things the with had of close cool existing of parking, have

been So, next again as the for numerous have as have very on year, books we well relocations year. this successful,

money looking very doubt, it because smart help at to them. we and we’re performers, can our So high Because spend what just no there. and top support do to is the volume

Andrew Strelzik

you Thank It makes sense. very much.

Operator

Farmer comes from Gordon Jeff question of next Your the Haskett. with line

is now line open. Your

Jeff Farmer

given I’ll the Thanks. quick, be hour.

Just employee versus quick have two stand share, Tonya real tenure on hourly versus metrics, and levels? two tenure can now where Anything ones. shifted do you turnover pre-COVID on how those or you turnover levels guys pre-COVID? So

Tonya Robinson

more On employees, levels of of a actually to return turnover hourly the more normal, you’re normal bit those you pre-COVID seeing levels. know

in to side pretty down XXX%, you range, everybody so. to that. those. we XXX% we’re seen or XXX% know with see way do And calculated but up you it line had differently, high on more hourly you we – feels coming creep and and know that And that’s the good consistent So turnover been the know in

but those I think line more to we things. feel still some little see in have you, work with good get operators do a would we tell our to do,

MP that gotten Usually that management level. isn’t things actually kitchen see manager manager, back returning know level service seeing I continue turnover manager at we’ve to there that a of think to pre-COVID that So, of to And – we’re most on the have you levels at you level. perspective. side more from the improvement

Jeff Farmer

provide be any and here, framework we any for finishing out G&A just color a or All right, in year? thinking anything but that’s should helpful. how you dollars taking can G&A stab sort then sort or XXXX about of of And the

Jerry Morgan

Big picture strokes.

Tonya Robinson

had Sure. Well yeah, we you that you know know.

You Outside have quarter back – across it’s perspective it conferences half year. cost should from it’s – those the that pretty about. on each in the we things, consistent of dollars of talked a of be mismatch pretty

in we ‘XX you of QX. year times back the than based out of ‘XX Typically, than expectation. you of by we’re performance into driven in ‘XX a cost so year – be see what the bit and paying pop in little significantly full half on higher know little year. know year, more being bit ‘XX, little a would of So head A expecting as payouts much with we bonus you and you bit there off end see to coming maybe of as our lot been a get QX increase in that’s that the that the a

normalized I you little trend conference. you when to expect actually think dollars that that Jeff just on – out from So would more mismatch probably, beg a perspective a see

Jeff Farmer

you. thank Okay,

Operator

from comes the Mullan question of with next line Your Deutsche Brian Bank.

now line Your is open.

Brian Mullan

Thank you.

question allocation. a on capital Just

do you this question to You has Roadhouse how know You know know keep is know share notable. about some is, view us the this been stock going keep My and you Texas this? But this up the case, right really thinking undervalued that’s longer? step are pace we a repurchase always Tonya, conservative quarter year would to be now? also up you you And in a way for while expressing is sheet a willing overall. that balance if want

Tonya Robinson

continue But feel we’ll right we are amount that continue and of Well I books. what know opportunity see – you that’s – principle we be change know, million know we to $XX our cash do debt buybacks, the we you the is doesn’t that earlier can debt know or markets. good that know cash you you where balance And going about was what shares standpoint, you indicate balance very the in opportunistic and we you’ll some down. dilution think, issued, to quarter really going think knew were to share now kind take looking say what from net on being where development some we’re what had sitting in felt what we from sheet excess perspective, from cash just in I a we you in But And was thinking outstanding. to Brian see would we know with perspective. the and what an I that saw to be and way need really us of going our, comfortable bringing advantage of was are on the cash

like we’re feel we perspective, in shape. good that I from think So

Brian Mullan

Thank you.

Operator

the UBS. Your line Geiger with of next Dennis question from comes

is Your open. now line

Dennis Geiger

Thank you.

Just difference or there’s that across unique any geography seeing you. in wondering if performance by you’re Thank anything markets? notable certain

Tonya Robinson

expect pretty fluctuation, you normally at behaving much as this know much too would you it really to time. significant Not

really been what and know, the things you read to might know know there’s across country and know spikes those talks that, occurrences the but know COVID of you you I and like impact are COVID hard You that be.

of So, strong like, see as looks comps be. normally how we are might the growing. haven’t all really trying you put Dennis, as energy normally stores a But far what know pretty across much it to same got the what – into as lot We’ve country. that just

Dennis Geiger

Tonya. of Makes Thanks, a sense. lot

Operator

from of with next Barish the line comes Your Andy Jefferies. question

Your line is now open.

Andy Barish

question. Hey, taking the guys. to your for to Thanks go comment. back Wanted to, Jerry,

– Do nights lot put given of just of sort a to know were throughput Friday, of To-Go? some the as talking free To-Go demand of know And about you is kind implementing governors in does know an you business referring software Saturday busy you what opportunity kind you well? were you comes up as that You some there? on on that to

Jerry Morgan

to. is baffle you we, so so that minutes, a put part need little it. a XX We, know, every of if can we Yeah, we

So the tickets successfully we can we room in on can on software many blend mix dining the helps on do we have To-Go. much so or how depends hanging that that handle how from depending

to easier. guests the know So just they take mix yeah, of smooth get the another orders not education on and more it’s based it smoother the helps, little can we transition segment, And the too allowing you far. just to of a software even pushed have if to

operators knowing orders. for have transition they bucket. But bit been given in more really more it our – doing us, do to we can And it instead next little have smoother saying of So push that we confidence you may a the to no, working has so that. well

Andy Barish

beef in kind know feel impact discussion ‘XX? as be some costs you maybe some And of sort opaque that your gotten then to with today ‘XX Got start of you Is for contracting of some beef your blending and the on purchasing thinking of there and there costs of the a it. bit the just an And that informing Tonya there? potentially doesn’t could decisions is of back – it’s much the – and on know and ‘XX more higher you out maybe or over I potential then, the on little on side. of a as know years. about half way know

Tonya Robinson

of we you sooner, Well, I opportunity some you ability of store, little little have – not buy out we to some know based and you on fresh – in know know to to our meat. some we there’s or all to all a steaks ability buy our age mean you the just don’t a if do frozen have we things have do further how But know that. – there’s that are kept beef our any

that Andy So of restaurants. know and if it you ahead there what were of missed the kind I was know perspective, I time from it’s in use – don’t if to that you later if or was the or question. referencing buy hard

Andy Barish

of rather know you – more just was taking It you Yeah. a know product. know than strategy contracting taking you physical

Tonya Robinson

you okay, hedging and we’ve a hedging some I like to and – – we really on rely Yeah those things that. But you utilized that – ourselves of our kind something to internally, have suppliers never Yeah, there of strategies is things those utilize get do understand and there ahead at we to if know those little know that bit. looked do opportunity see recently is maybe to that. I

pans that if see we’ll out. So

Andy Barish

Okay, thanks very much.

Tonya Robinson

Thank you.

Operator

of the Ivankoe John from line comes JPMorgan. question next Your with

open. now is line Your

John Ivankoe

everyone least was I know to But know could know to I’m what wondering on you going a not. changes elaborate there them a if call you changes see that do than significantly you heard windows. if notice, But to segment you. beyond To-Go, a the that, from the and a you customer some back will are you’re experience certainly maybe you how brand – know simply you I’ve Also giving notice stretch move Hi, that could thank takeout you during the may differentiated question really you how themselves at a any the there certain where you of completely know hit much know was customer I relative may to what or you’re the confidence of operator peers else. really know you if lot COVID, you ticket make you experience to focused know on are to or of the get are hoping on you it not know know Roadhouse you expecting unique changes Texas that more you guess just is others and know you that did in see the I very

Jerry Morgan

now. magic out right I don’t know that there’s there anything

is come flow the significant is wanted. that they they I make of they the expect through that think it’s pickup critical we probably food our of that guest without accurate pack one area and food To-Go the that the go the the so changes – up of to can become sure get Packers, the having to – our ability to the everything that know where convenience have of in home, restaurant that more windows, To-Go the gets more even when that or what we we’re doing to host of made, you

And And simplification give to to get to my make have high they that a right at continue both room. when to a operators work pandemic, experience, the dining we’ve just I solid, and really is do have want whole want the believe to so great about be ordering pickup very over the a done to think we got I confidence I experience, done convenience, that full level. it more that how it the the very job, through how that’s we of what you can packed

Tonya Robinson

little too, know because wait – sometimes I they guests To-Go the And John, they feels that to think a for do you frustrated order. do have maybe

And talking of kind with of the Jerry’s too them the – faster what blended the into room guests. hands the in room food dining dining to guests to queues getting so that the about by even get

So from time just you they’re that faster. not perspective, they should see know getting they’re given that do it when an as wait maybe as hour little far bit order, they a

John Ivankoe

Thank understood. it, you. Got

Operator

Your line question Sanderson comes the Jim from Research. with next of Northcoast

open. now is line Your

Jim Sanderson

question. for Thanks the

and Just have wanted feedback that market the your you’ve any sense have to follow-up the gap again. value and or position or taken price on the strategy Do market? whether to narrowed reacted has pricing how of you in today have you value competitors

Tonya Robinson

we you talking attention pay October. definitely about we’re typically to have I March in again ways pricing whenever think it September, in that’s in and we February, know something know decisions you our some

– dive pricing bring bit Jim, into consumer And to competitors different with gap anything the couldn’t at of that, top And a what that what areas or that. the the you watching, we’re keeping We’re make we’re we got gap you that their It value are table, because that definitely something of know tell or doing. markets, that want to the like in and that what looking the so. and definitely off is more the sure than my guests what so little actually head our kind country. operators we it the who’s it the pricing of is their across kind I

high on So deeper it from at go perspective. level much don’t little and a look as a we actually it

Jim Sanderson

Okay, kind pricing your you or not want anything that and significant what make meaningful based on on thoughts noticing pull competitors back react? to would of on

Tonya Robinson

perspective dive sure. competitor this at a more we’ll Yeah, from the Again, into nothing call. for Yeah, Nothing. time. upcoming on it

Jim Sanderson

Just a quick follow-up.

for for think trend the comp July. that X.X% traffic I the comp underlying number? What’s on

Tonya Robinson

QX, we trends a basis. monthly what’s can so traffic use don’t that back Well traffic pricing specific in there’s to of the pricing X.X% about out X.X% kind – throughout you typically give trend, on into menu

Jim Sanderson

All right, thank much. you very

Operator

from comes the question of line Brian Vaccaro with Raymond next Your James.

open. now Your line is

Brian Vaccaro

you. thank Hi,

to hours your labor expect a and real targets you ask and for on specifically, moving with second the year the Just add you. per you Are deployments, continue achieve happy on through you half? to average know on the quick store. levels to ops wanted one experience? I guest current Thank labor. to hours year able Do

Tonya Robinson

just lot growth ours the any be I I and be think know a that’s to staffed be? they you want for tell always is a know unexpected know, want they big growth things on they and right like and like, want that. I changes think schedule and staffed – will in now, what would driver, for going You to call depend what Brian, to operator you you in and the know the that traffic to, any you, outs looks

experience. know probably more little more looks towards in hours a But bit you staffed, lead being move a So they’re to little me growth what the as going service very well in I’m versus know CFO, tell could that investment really like. that. okay that that traffic I to we line. like and that legendary I’ll adds you, with to – that And the

just see perspective are we levels kind all and need things So want it’s the tough to that, think knowing sales now what you I lumpiness lapping just that’s to last staffing sure going operator, and make happening. of be those you from like you for and the year. what right know, that But a with

a So, be ours little there’ll probably a towards little more. growing leaning more bit

Brian Vaccaro

All right, you. thank

Operator

question line the America. from next Bank of Your with of comes Senatore Sara

is now line open. Your

Sara Senatore

Thank you.

of couple quick a Just clarifications.

XX%. I through something know guess less out that July it versus is just if imply trend. X.X% I mentioned on the than the first running I would comp The you XXXX. quarter, XX% around track

July the toughest sounds it So just was on basis, three-year like a comparison.

we three-year – that if could look through it if X.X% stack holds. get so that you And we – better quarter at the that know as maybe

sure So correctly. my first I’m Make that it was question. interpreting

Tonya Robinson

I mean, see season than to you like else. been anywhere in QX and July seasonality Yeah, see about it that – to start tends talking where a from we’ve perspective, be you softness more of

X.X% think I be is X.X%. Sarah the A that that to the So just don’t quarter. unreasonable, on it’s could pretty think throughout it’s you lot Again, consistent it low will know, again point. depend pricing

where you see so being it on on you’re know then don’t or and kind depends benefit you’re in how be mix it. you at and continue of know some that Some lands looking we there. dining flattish unreasonable the traffic I side, To-Go your, we if room think you know to And get

Sara Senatore

Okay, of less sorry sorry have half in unusual just then But this you thank half. about point belabor to kind the is, second second question inflation the than in the margins. the you. to the the seasonality that first so year me much And of I’m seems sense

comes sequentially. or inflation XXX So the points XXX guidance by implies basis you down know

see asking, I’m that’s I, I that. normally what wouldn’t atypical you pretty So is guess

year? isn’t on seasonality the quite relevant margins maybe as this So

Tonya Robinson

stack. volatility on a – you and Well have it’s say to have really to two-year of because it to because kind look the tough at of of kind you

kind back I you’re think year of that half might what when be. the the help of trying might forecast to margins

that they’re know expectation back margins I you would a typically would bit half think the So the the seasonality in play that bit be continue lower. back come we you of going that know, looking see with know some percentages at the and know does elevated the into you a the to being in you know sales cost be to half year of of you

Sara Senatore

you. understood. Right, Thank

Tonya Robinson

Sara. Thanks,

Operator

the question comes next Your from of Truist Jake line with Bartlett Securities.

open. now is line Your

Jake Bartlett

for the question. Great, thanks taking

calling if know you know is you – I answered you’ve staffing But You of you if I night availability ask I’m competitors your a resurgence sales people whether sorry has either the in growth? want the hindrance all it. been know another I you didn’t to know impacting this talked one mean last COVID of – maybe register sick. before, at staffing about to

than So the in sales to – dampening I’m staffing you know greater then had Bubba’s. been has the on whether And wondering know question the you first just a maybe is whether it separate, and second to degree quarter? it’s

year. kind you’ve at this of some like I’m competence in you you’d it stores of Bubba’s single-digits with know know just looks wondering you’re But it or a open handful working your development. been opening to a the high And for trying know for I while. Bubba’s You to expect Bubba’s point be

up ‘XX? is terms Bubba’s growth? you you kind – know could ramp of you starting for expect think there something are that You that we really of in Are to

Tonya Robinson

part was challenge year. even still you staffing a back you at them. the it And would on Well, how out is you probably operators beginning you know take say question, know it today, of there have Jake about that remains than today telling the kind we’re thinking would first I – know you of I’ll the I probably staffing? of easier but would for

a the But, where year. just know they has across it of not than definitely a was it’s beginning I country, little are. bit it’s a you easier So, it gotten the think on depends one-size-fits-all lot bit, the definitely at

Jerry Morgan

more standpoint. the our say more means just lowering, would where so is think they’re that that that are from great, our I I able experience, do that getting which think so people turnover – with to I with And

gotten want very know is I a to change So help, the a but that made am still, very quarter a of in do need head food, there little that of the than And some quarter know really far pockets as as are I what up think confident got the attention do Bubba’s multiunit were a expectations. believe continue this on staffing side, and clear it’s the direction some to second really – I in some still we’ve you have that in leadership the across, added that I expect. helping focus, through food added we’re couple I’m vision we’ve leadership, little think of right our you more overall, we Bubba’s better again, real proud last living and probably the all quarter.

we’ve a I have as managing the what really together us partners, confident – team as help help And as to leading really in really VP really a building Operations, future our building that us been of leadership team for so they’re into service growth. not working gotten and months. restaurants. far team is that’s service is can feel the going We coming partners, more ramp up looking for nine a the and the expert more so the with team a – of on team, last clear forward. confidence I market really, the only focus legendary They’ve and now a vision good our That and to have level that real carry

going in about excited rely end I very coming grow to it. – to on be years. the am that produce believe do to I’m able more So in them more to I

Jake Bartlett

you Thank very much.

Tonya Robinson

you. Thank

Operator

call Tonya to further I no the questions over turn back you. There Robinson, are time. at this

Tonya Robinson

for Emma tonight. call thanks, the and everybody on Thanks, being

have to Have always, reach if additional night. questions, out As to a you hesitate any us. great don’t

Operator

you call. conference today’s for concludes Thank attending. That

now disconnect. may You

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