CHUY - Earnings call transcript Q1 2018

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Operator

Good day, everyone, and welcome to the Chuy's Holdings, Inc.

First Quarter 2018 Earnings Conference Call. Today's call is being recorded. At this time, all participants have been placed in a listen-only mode, and the lines will be opened for your questions following the presentation. On today's call, we have Steve Hislop, President and Chief Executive Officer; and Jon Howie, Vice President and Chief Financial Officer of Chuy's Holdings, Incorporated. turn over I'll Mr. time, this the to conference At Howie. Please sir. go ahead,

Jon W. Howie

can By and quarter should It section. on operator, the you, www.chuys.com now, website XXXX be at our good release. first Thank Investors our afternoon. everyone in found to have earnings also access

not the everyone include guarantees begin results we should actual forward-looking that are future them. our therefore, forward-looking results are not our cause remind call We statements. SEC future like on of could of performance, our refer and you I from need of formal numerous operating These With Steve. undue that the Before turn part financial to remarks, I'd could over discussions of of These and what way, recent we to subject more expect. review also that to out risks risks our differ materially reliance that put today will to a of statements filings impact to you for condition. uncertainties and statements all to discussion detailed

Steven J. Hislop

thank to Thank and on you today. Jon, everyone us for the you, call joining

quarter unit from a was X.X% first compared $X.XX partially increase decrease Let me X% sales quarter on on income then restaurant led by year. of grew a At new comparable diluted first sales for strategic first of start share. of Net million revenues overview fiscal the progress quarter the for review the growth, quarter Afterward, XXXX The partially to in last with initiatives for will per our by greater detail. our our in Jon year. offset discuss first results, results an financial $X.X by basis. higher offset level, the a was

of labor per daily Christmas, service laid forward, the our taking hand-roll the our results to primary industry homemade from remain quarter of and whether scratch results Despite line pressures. sauces, is provide on I'd the and our expectations weather guests, margaritas, our or is reaffirming of impact reflected We for it's the most profitable by largely juice signature and in guidance highest like were core our our negative loss improve initiatives We a of of exceptional and from tortillas, of care call, for ongoing going first with our that. provide Easter updates guests made standards earnings fundamentals last were food week hand-squeezed the our the week for share which these multiple profitability lime our our our on goal and are To timing some to year. in our out impacted also focused up we've atmosphere. year. unique our beaten several after challenges, upon Our interruptions we on made and volume challenges

Let's start our with marketing effort.

We of marketing are our us media in firm campaigns social a selecting a full time local store the final and stages help level. to marketing new bring to

and brand the both new messaging in and about are We of excited current our markets. awareness prospect improving value

is partnership our Olo a front, system to technology well. On with create online the ordering progressing robust

introduction been a are completing our future. quarter. roll using the online stepping system-wide to currently quarter look We test the in forward by early platform the in in program new the feedback expecting of the second and plan stone out Early to loyalty system for has ordering we on as positive third and tremendously

are perform or expansion test our Houston additional catering, during now and next continue possible markets to considering markets we and the well Dallas Turning year. Nashville, in to

we and of Florida restaurant and POS the New quarter. our management integration Park in development integrating expect initiatives, tool On in Lastly, the with end Colorado second in additional regard our labor to Chuy's two with this Lakewood, Orland Doral to our are of we and front, in the Tampa, one stages system one in opened quarter, Illinois. labor first restaurants first complete opened new during we've to Florida. the the Subsequent quarter, last

early, the do as units. it's these instilling we're performance of in team continue our Chuy's job and operators development excellent restaurants new an pleased While culture the with to of new our

For of XXXX, summary, to and Chuy's to eight we the we broad believe the open XX continue expect between units. In in concept. appeal

Our and capital estate balance recently our during enables first real the shareholders, strategy, our in quarter CFO, most review strong sheet first like results. economics that, for our call excess us runway to Howie, and Jon turn XXXX long through expanding Chuy's share to a I'd believe for All-in-all, strong the the of flexible repurchase also our unit to we our With quarter. have we return a detailed beyond. to brand over more

Jon W. Howie

XX weeks XXXX. increased by and the a comparable April XXrd produced X, headwind due well operating during opened to basis, primarily first fiscal driven weeks the related X.X% in by fiscal total the period decreased offset first This XXXX restaurants $X.X XXXX, of as sales week ended the first $X.X shift Revenues to included XX-week new restaurant for is Steve. of XXXX. partially weekly estimate by quarter business, approximately believe XX XXXX not for X% week weather year. Thanks, a that million operating Average ended X, X.X%, by as by XXX the X.X%. million XX-week for conditions sales comparable incremental quarter XX XXXX. X, calendar to subsequent restaurant There XX, year-over-year average in additional of in customers was the the during impacted pricing above. the the that X, $XX.X this April increase of of incremental XX-week are On period reflective of period year quarter at revenue cannibalization the by points in We revenue an in to quarter one the last during quarter XXXX. in April approximately XXXX compared about period calendar On non-comparable the were of to basis April from comparable change by which to XX-week XXX year-over-year XX decreased increase million restaurants had of X,XXX comparable ended We we our of basis, the points. unfavorable X.X% and March negatively compared first declined by about ended points more a sales first the ended to the X.X% were calendar partially the base the Easter was our of Effective quarter end basis shift about restaurants check. offset strategic basis

flat selected to Turning cost line to expense of at a as items, XX.X%. sell discussion percentage on revenue a remained

part XXXX, continue to inflation of X% that XXXX year last higher for points of XXX approximately lower of year. X% inflation to rest in the to hourly the hourly to a of to inefficiencies the cost be half the X.X%, the expect The new store of Labor markets. higher basis with to increase attributable was labor year rate revenue to first increased new we as forward rates the in percentage in Looking XX.X%. approximately similar restaurant in rate and range and inflation labor

our due be to a XX X%. first certain into points as basis rental operating driven million inflation million XX.X%, $X.X by expense expand primarily of higher opened $X.X and a to Occupancy increased cost we cost the X.X%, rents management and to of maintenance to For growth to primarily on certain salaries markets as XX higher higher quarter, lease of extended we costs fees have percentage larger repairs to expenses at the in increases newly labor Restaurant required controls that General cost. higher administrative increased expect terms basis restaurants. our support utility in existing and increased revenue XXXX, approximately system audited. revenue continue benefits restaurants as higher our to we store and are professional as percentage well continue of to points to primarily internal now and to as due approximately

percentage G&A $X.XX share of compared In approximately $X.X or diluted increased of XX XXXX revenue, basis to summary, a million was the for in first million period. X.X%. $X.X or per ago points income diluted $X.XX to per year-over-year quarter year the net share As

During the no sheet and million debt. have XX,XXX on the the cash with common company million. of We shares for ended repurchased first we currently of balance $X.X quarter, the quarter stock $X.X

go for we our me remained has unchanged on from call. which our let disclosed what largely XXXX, Lastly, through outlook last

$X.XX. We the of continue $X.XX compares to to share to XXXX expect This our benefit of of adjusted earnings per XXXX diluted per earnings the share excluding extra $X.XX, week.

Our the guidance following based is assumptions. on

at our basis restaurant a approximately X.X%. fiscal end of of X% previous growth X% the to XX-week comparable expect lower We sales of on range

$X.X restaurant million. approximately expect to pre-opening million of We $X.X expenses

We $XX and expect million expenses G&A million. $XX.X between

in basis between with rate is packaging, XX% $X.X level of the and Tax Act, the XXXX million points of from effective intend this international savings approximately off-premise reduction result including to XX enactment invest ordering a expected to tax during XX% catering. online initiatives, or and be approximately As the we rate marketing and to-go our

annual this restaurants And expect million year. diluted shares open new million Chuy's expect outstanding average We shares. to we XX.X XX.X to of eight weighted XX to

Steve to capital over the to net improvement between up. our expenditures turn allowances Lastly, and to that, million. wrap $XX $XX back of tenant call be projected are million With I'll

Steven J. Hislop

appeal both food guests. high bring of made Chuy's new us and to quality, returning The Jon. broad handcrafted and provide scratch Thanks, to cocktails many concept opportunities from offerings with

us out in the run. the While we're confident initiatives will external long that environments remain challenging, laid benefit we've

will answer that, fundamentals be possible Thank unique. all making of With Of the them we course, to happy our for the any our you. again focus questions. their core work thank without dedication not to and and like would efforts our and on are hard brand we employees, of

Operator

will The be session question-and-answer conducted electronically.

our ahead. Tarantino go take with first question will Please David We Baird. from

David E. Tarantino

Hi. questions same-store Good the on trends. afternoon. of sales couple recent A

it quarter. one, when far wondering that the what couple the may then about second And so based of if latter you I you're trends quarter? seeing QX month confirm up and you And then in you seems in could, of reported follow-ups. what a have think, talk on the results, I like have was I picked shared just

Steven J. Hislop

Yeah, up you fourth as it – for did in into latter and and the pick well. later Yeah. question. quarter, continuing David, it's the period thank the

picked definitely it's up little bit. So a

Jon W. Howie

the the weather. away noise Take of

David E. Tarantino

you Steve, willing to quarter-to-date share And on would comps? seeing you're be what

Steven J. Hislop

that again, about XX with It's basis a in of fourth bit noise some also. period range X.X% And roughly in weather right of we little there. the points had

David E. Tarantino

Okay.

Steven J. Hislop

yeah. includes that number, Which

David E. Tarantino

the in you does Easter quarter that from to And have include the period? the that benefit

Jon W. Howie

Yeah.

Steven J. Hislop

Yes. Yes, does. it

Jon W. Howie

XX also negative points the about Easter. the Yeah, includes he was on that the basis positive talking

Steven J. Hislop

Absolutely.

David E. Tarantino

Got it.

for picked I to what decided up happened wanted here range I that have given in Okay. guidance the keep full guess that. you trim range? just comp the wanted low why outlook? to the recently, the your end of understand to changed that ask mind Thank of the prior versus year I trends then, you And sort to that

Steven J. Hislop

quarter. First first the Down quarter. in

Jon W. Howie

first little a about X.X% because bit to expecting little bit come but Well, are come going of on were fiscal about numbers in guess a more normal more going down basis XX back basis, a to yeah, the are operational those which I but to below fiscal a quarter, David, first comp those be David, fiscal quarter, to numbers, down back X.X are we're points be fiscal that in we again number. because are we're the which kind basis, on our again,

David E. Tarantino

Understood.

Okay.

all changing to just opposed the your it's results clear, for forward-looking? function to of the of – the outlook So, more is on change the the in backward-looking a year view be as

Steven J. Hislop

Right.

Jon W. Howie

absolutely. Yeah, Yes.

Steven J. Hislop

mean, an on that. I you So, to update just give

on our the about result up basis will in the in be our XX fiscal. So quarter, are be from then that from and points looking and calendar, weighting in again XX difference points on second fiscal. quarters quarter the basis basis based saw which about We're I down fourth the between the going comp you at to of the flat about our to about if XX quarter XX difference, XX those third mean, fiscal we'll then we're or upon the down the we negative points – basis points fiscal. and

Jon W. Howie

Yeah.

David E. Tarantino

it soft surface Okay, I way about in looks you're unit the it, a can we great. what you productivity. That's helpful. And on Jon, maybe the little seeing talk new underneath guess, just then, QX. calculate

relative just I So, opened internal comment if to on class the your far so you from wondering year could and performing what and this openings XXXX are target? how was you've of those

Jon W. Howie

at excited sales quarter. look assuming for XXXX and in that about a Orland Yeah. like in of as little we you're I Park. you about that if whole, store opened we're kind But talking those that out maybe about the to stores had the stores but calculates here year, a be very in be mean, very, soft we few I'm XX,XXX a incremental talked we opened the Chicago, may about last

If TTM previous TTM a you a the at on year. basis actually on look we're on that basis, up

up we're about So, X%.

on of calculating about to weekly be about XX,XXX. now a a TTM that's So, basis, average

the where but So, that of first Cedar mark, quarter. up year stores opened of and again, current on at big we right in the right year, that in some opened opened was like late Park we stores we of the opened these those there was one the the quarter stores last

big about That were what as shift talking year. first change a well last here the lower number as we made that the So in shift. that in is to quarter in reflected that in well compared as

David E. Tarantino

Great. much. very That's you Thank helpful.

Steven J. Hislop

David. Thanks,

Operator

go We Inc. will Stephens, take question from next ahead. Please Will our Slabaugh with

Will Slabaugh

of bit markets? Can some to more newer Want talk Yeah. in Thank early about I the as with think little early an markets behind probably know marketing putting you're about experience of being particular. one about initiatives curious what new as come. you more if a guys talked appropriate the you be? getting you. you might yet to the read and of just there ask you the your that or return But

Steven J. Hislop

Yeah.

so. Again, the to in to I Chicago market call, to opening it you third know in are. the in the We've penetration that as need we stores. currently. last done mentioned who on think three we I some We get did openings it of

for do the on some mean, radio the helping continue one's so all specifically end used the really market over I up to want iHeartRadio we're excited. and and Park, highlighted that there. and we and that obviously and Orland will So, awareness we little we us popped

we Park which one mentioned, Tampa, did a And already in very New down boat the in also Tampa with Doral, down we've also. is of and We the another us area for New bit we also jumped Orland and did little some but Denver. that also we're store out Miami in pretty nicely then, did then and pleased as in

testimonial professional a mailers All anything, If also were the an then about And of and anything. don't money I'd radio. also those – did discount some had a talked (XX:XX:XX). we little though, did app give that of bit bit we we of spending, residential that we away little not

said was all those markets openings pleased And quarter that although But good And very in my that in so We're of obviously (XX:XX). I statement. our XXXX did we're far we the in also. first like with prepared pleased very I pretty so start, all results. it's store think the early with (XX:XX:XX)

Will Slabaugh

it. explicit through going the about opportunity in-store the that more to or feel that Got getting a from the you're right and mentioned of your how And little credit otherwise? communicate you markets tell to on now already better Do maybe any explicitly. a do value, guests story? menu deserve like guess, question value a it more, regarding you Is view Is that something your platform the that menu? on everyday messaging you're to be you you in I trying your bit

Steven J. Hislop

do be, will done to digital there the social over couple about that value, it day the and don't the we've store forth three and again, it be the this just different, media so not we the know markets. differences out hard get last value our that's (XX:XX:XX) we a generic coming thing eat message but need I get talk can the we'll The firm make the and things end so this really might right on defining you years on to about for think there done ignored of bat that marketing all you keep this I probably differences, in it with we've I defined what we've menu – going is it's don't of enough, doing, that excited off $XX, discounting and some is it really need but marketing But and my think don't that. that at inside our local for media we're us periods. and we're think next I all everybody to why decision discount why again need out is,

only And marketing hard but as that own going going so in we get something that. our we're not department, that's with work our to definitely partner

Will Slabaugh

Got you. it. Thank

Steven J. Hislop

you. Thank

Operator

our We O'Cull Stifel. Please question next from will Chris with take ahead. go

Jonathan Clifton Conley

This Jon Chris. quarter? this bit more And a color expanding little Conley catering to? is other at could just was any plan or what you catering What for off-premise. I share on hoping on Hi, was it guys. percentage see you do did you around from pickup of markets

Steven J. Hislop

Sure. Sure.

that mentioned you Those stores three we'll one time, pleased, ended Yes, move $XXX,XXX of three area year of think in Chicago now I in in pretty again we one beginning we one expected quarter. was over was sales the looking So, up Nashville, as (XX:XX:XX) forward that be I we'll and up the fourth I possibly Houston in XX%, vans in we Christmas one. in in Dallas. because quarter about and market. the throughout at at wasn't also as looking I and that stores the or be second one is doing I'll that market three the We van period call, decent remember and XX.XX%, a and those first on with D.C. help three. pretty We're about in the the look first sales the have us would drop awareness, we'll the will (XX:XX:XX) trend be Cincinnati, the have the Dayton there the market. possibly had improving if roughly up during there the in XX.XX% markets. out – my $XXX,XXX about and those quarter, for those

Jonathan Clifton Conley

Okay, great. And then... for Thank that. you

Steven J. Hislop

welcome. You're

Jonathan Clifton Conley

said sounds it of like the the cost looks approximately we expectations? like see to Did with you was you guys but bit guys a inflation any was commodity were sales your year, than lower commodities little flat. it half that in originally of – X% had Also, X% anticipated than first lower

Jon W. Howie

X.X%, when stores lot of still of Well, down it's driving over reason that the effective a came is what that, did the little since stores little why bit. that's end, X, we but I pricing was, a X%. saw at the think actually mix bit a we were flat we for though we've at opened we The have mix it back what in in up there that even Tier

over But a the that through X maybe X.X% I effectively think quarter. were we we have up price So, than flat. the that's in more Tier first that menu, keeping little X%

Jonathan Clifton Conley

you. Thank great. Okay,

Steven J. Hislop

Thank you.

Operator

with ahead. to Fargo. We Jeff Farmer Please will go go Wells next

Jeff D. Farmer

Thanks.

mentioned point you saw in Where think headwind a over trend I do you few first that to quarter. headwind XX the that quarters? basis cannibalization you the to expect next

Steven J. Hislop

two should starting to to Rock Round It closest drastic but was, as quarters. as it in still see significantly We're that out now, as flatten Jeff. a Right which that here the bit, we little speak. next is XXX, see the to during we disappear that three not out, flatten is should seeing

Jon W. Howie

Yeah.

Jeff D. Farmer

you comes comfortable mix How where been Okay. And sales? it that theoretically? will just ordering system then, months, introducing with to you the to XX% quarters. that let of it has think touched go I as few number online in are to off-premise. next percent off-premise XX% you Yeah, across on trending recent in When a the of off-premise high

Jon W. Howie

within four at as to we'll from walls. we as Well, ranges And from let busiest of it our in XX%, restaurants. anywhere Jeff, X% XX% a restaurants I high up that some give range, think you our comfortably just to our can go operate

need expecting once But it's because there. and expect advertise as to grow what to room has average that. can right to advertising online to we start Obviously our bat, we it and it average the we online off grow we ordering. think going I've start that we that get once the ticket ticket to we I get get that not up once We're researched, as soon running. grow from So,

Steven J. Hislop

have of if Texas stores And there I good high and because that is walls our get the that majority down a it in in market definitely think it's we high. teens. a time eventually will great question a then, the affect too let is we four

can watch the an things So with so comfortable to our handle something to with from we all but and I'll that, operator not with have perspective doing any make forth. and that some that sure room (XX:XX:XX) only we get patios we're

Jeff D. Farmer

industry had have is your I'm in better in question the whether casual the sales same-store is more on and months? Okay. obviously guys business, any on persist is to months. Then that drivers than coming March nice again if dining seen segment last sales just here you much same-store comment expect or and improve the than seeing prior this of really inflection inflection April, not curious in but we you seeing performance

Steven J. Hislop

bit out as (XX:XX:XX) noise and crystal on trends end I the like saying, we're we're ball and a been in of we've at even even My forward always year, we've little said think it seen the little the I we've that, a to cautiously I've noticed last of am and – moving weather. bit recent take optimistic of here, the

were the of I the think get at so day, think, in they pocket and or that's I expecting has I think understand, that helpful. money I taxes been end think didn't some there their the they

I to he's think numb all on are when getting the even and Twitter Trump time. people

over those to excuses the drying So and that's used back I the the normal, last viewership other we've things up getting is of besides think bit, mostly I I'm a things year, it. And lessening. panicking think everybody and reasons all all little

Jeff D. Farmer

Okay. Thank guys. you,

Steven J. Hislop

Yeah.

Operator

next Andy Barish our take will ahead. with from Please Jefferies. We go question

Andrew Marc Barish

guys. Hey,

the impact the integration not management saw, what having year. On the POS, labor the full the look the week there? as are of with then XQ through just when I in get should progression terms on the line, you of some of I'm labor wondering kind goals and opportunities Christmas that better the you assume of the you in big go de-leverage

Steven J. Hislop

that us the million best as we just on only that, not with definitely issues, it's we the labor week, have profitable in weather-related said Along losing whole obviously that our have year. over as Yeah. $X.X most it's roughly hurt already volume Andy, of the week far our then percent. and highest losing

should a be quarter it forward. better expect us obviously against might third little move this as to we for the from we'll quarter. have which you in this the indexing in than bunch a had lower number one and that of obviously And is quarter, up second fourth a see quarters going yeah, bit us, quarter. third yeah, first then, pop whole So, the so things But, you

far the key labor be and losses As able that's with that there, And it's it as when lot. punches scheduling that scheduling, a we whether as the of that but a more as and going second and we it's late that look don't believe we is we're problem little it, though with think I a the us adds we the labor up I far rid a the this projections. projections called getting have of that at think to the all thing XX ton Andy, system in process. manual for early punches, it's what bit early And of not, or to even do do a minute punch, with have

to you're time that and the savings biggest us one is by and sales we the the is there see in the (XX:XX:XX) reinforcement. that's with think biggest I hour, clock hours going have known the

Jon W. Howie

for XX And was impact for that and week, big on to the what That quarter. level store basis margin. when at looking quarter points, about basis points was Andy, XX the I'm the the interject,

So impact it margin. our definitely overall an had on

Andrew Marc Barish

you. Thank

Steven J. Hislop

Thank you.

Operator

ahead. take will Please next our James. Vaccaro question with We Brian go from Raymond

Brian M. Vaccaro

evening. good and Thanks

for week that high wanted of basis you the points the store XX the a to follow-ups. confirm just in shift XX just overall Jon, quick volume one, week. that? to mentioned just margin, couple a That Just extra was

Jon W. Howie

sir. Yes,

Brian M. Vaccaro

quarters you change and day those any trends the to QX perspective, back might that any also are could a more worth from on noting be worth some And comps, provide Okay. in saw you recent part versus variations what highlighting? perspective regional that

Jon W. Howie

as lunch QX. You it's from a fairly we dinner was was – QX regional in lighter than don't we little as know, dinner consistent with to lunch saw was a And What QX it pretty a consistent perspective, perspective. saw well. with from

Brian M. Vaccaro

those line, the and but as we've on can weight you year then, labor unit already, quantify that that touched if the of the of the us help about through inefficiencies, so, dissipate, on move expect Okay. And on specifically? you sort do new thinking we line labor to

Jon W. Howie

if talk Actually you was previously, can a of we've got to on I that, and when and comparing the we remember that a things year, rate. inflation that. to guess, last could hurricane I call had we're talking we're about what you're seeing about given that. year's Steve that. there's lot But to you're you QX, kind QX a think what inefficiency of me going flat on the But last little later see mean, year, X% up, that we a numbers... in I so lot see if noise of can talking last about in – like we noise

Steven J. Hislop

Hurricanes?

Jon W. Howie

little these XX line. points flush year-over-year, perspective from Hurricanes. points looking looking and basis or help year XX to you're XX noise There's labor of the us inflation on still probably But at at a year. on out XX another will stores. new an basis then, the probably a And inefficiencies hopefully in that out bit lot of in last year's this numbers you're

Brian M. Vaccaro

helpful. That's Okay. you. Thank

Steven J. Hislop

Thank you, Brian.

Operator

go next will Capital with Andrew ahead. Please BMO go Strelzik to Markets. We

Andrew Strelzik

openings for of halfway the now. the for is almost afternoon. thanks taking Hey, you're for through The year good the wide, question looking range still year I and that relatively guess

depend you'll Just have that point, really variance on what what better you wide? this does do and headed? that At think on at wondering that's where visibility is the point

Steven J. Hislop

in report next in be seen call the want still the earnings. noise, but group always down when up – customer I to to our in got one we've around I've we visibility Right next counts. now, we as – get some sales what the that a said, still couple need we over and that's traffic. we'll having as have of do we I've to want (XX:XX:XX) cracked, trend – focus our the that number is, – away Right we've we're liking, take seen positive company. – a I now,

me. decision that's the that's thing and So one maker number biggest for our

sustained. it looking So for to that's what and we're want see I

our But and counts. or decision get bit might to stays maker. biggest that out knuckle up that's a in the above it's on figure sure how customer and the it, see going sales, higher than little end. under So in us we're we you side, more it sustained mid-range If we're to specifically make if

Jon W. Howie

we Andrew, next either stores at early right right year three And, the – two year that there end flip the have of way. can or

So, number even higher open later get the probably it'll (XX:XX:XX). to that we this those if year, year in in do to be

Andrew Strelzik

guiding in much you're just was the That's on was And helpful. much in in then, to actually of wondering that Thank points how up basis? roughly marketing that year-over-year you. that investments where quarter? I and up the the And advertising, lastly, XX off-premise, the increasing markets you're basis how a showed

Jon W. Howie

Yeah.

we of we So expenses will part the in that's last of be That to-go that's packaging, seen operating the a to mainly in it the with because half year the yet. the actually when related haven't basically, catering. piece the although there's implement to-go happening the

you in kind As that. advertising, far as item, line of can spending see that we're already the as

new those them. expenses kind consistent year. be the through kind that we of And firm onboard, to we'll as will that So get reallocate of

Steven J. Hislop

our around is million as far Yeah. And marketing in $X there we to as the number million $X.X have fund.

Andrew Strelzik

you much. Great. very Thank

Steven J. Hislop

you. Thank

Operator

next question our take Securities. ahead. with Nick will Please Wedbush go Setyan from We

Nick Setyan

you. Thank

think markets of new kind all is we to going we XXXX any to As it are be going backfill? about XXXX, or enter in

Steven J. Hislop

backfill. All pretty be all much backfill, yeah. will It

Nick Setyan

the or I a X.X in any of think little forward? way kind thought price about the Is to Jon, to maybe be the going bit that would Are incremental going there X.X what then, downticks And the right the year above as it price be progresses? upticks quarter. was

Steven J. Hislop

were that, higher in was, it. will, since give are and those menu higher our on prices now we opening is stores have base, what markets, benefit our of which may given I X That the is but of – said, if of prices pricing size store Nick. that the of we effect kind kind Like you that overall a our little Tier in pricing

Nick Setyan

go et been mean kind flat some presentation, mean, year-over-year as guess it's the menu, new the I consistent in And while, then, a points of exactly makes maybe some part? for is new most I much stores, – the markets, is we really of we as the I that kind is cetera it that that that price mix, pretty opened into for – the

Jon W. Howie

Yeah. Right.

Steven J. Hislop

Yeah.

I had then, it cost all the – fairly well were negative fluctuate mix. they're very that lift high only higher think larger the sale difference. our had following as that really when – as time only drinks, we from pricing rolling mix to we point. the can mean, mix a as the there which I things of some And was over really of introduced most not a no you standpoint really remember, significant prices trying a that low was on if – that consistent consistently And and was a really there's menu, we we really we're year time at price the that. that's is

stays mix that Our and (XX:XX:XX) somewhat over our menu who at ordering same over people is believe and totally eat accustomed to that we get restaurant customizable and consistent. the thing

Jon W. Howie

Yeah.

Steven J. Hislop

that We have otherwise. drive really the to LTOs

Jon W. Howie

it as to if markets, and think teach we tables at go really had on And a we of food do to quickly table we are to also – the forth. do really, I what And breadth we North more rather went market really up making showing as the it and (XX:XX:XX) go of we quickly. people and we them (XX:XX:XX) a so (XX:XX:XX), menu we and we of our XX we ended and some go and outside

to. they accustomed try get if into So, they're not things,

so a get mix, we back our often of do similar in why all we that's So to stores. that

Nick Setyan

impact comp Jon? base lastly, from the this the And non-comp then, quarter, stores entering what the just was

Jon W. Howie

XX about basis points. It's

Nick Setyan

Got it. you. Thank

Steven J. Hislop

Thank you.

Operator

now At there questions. over any conference no back comments. the management to time, turn for closing I will are this further

Steven J. Hislop

so in and have guys thank interest the Jon and I much. a answer all and you any will Again, evening. and always you able appreciate Thank Chuy's good continued questions. we to be

Operator

We at thank This time. you for today's will disconnect conclude you participation, conference and your this call. may

Chuy's (CHUY) 8 May 182018 Q1 Earnings call transcript