CHUY - Earnings call transcript Q1 2021

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Operator

Good day everyone, and welcome to the Chuy's Holdings Incorporated First Quarter 2021 Earnings Conference Call. Today's call is being recorded. At this time, all participants have been placed in a listen-only mode, and we will take 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 at Chuy's Holdings Inc. At this time, I'd like to turn the conference over to Mr. Howie. sir. ahead, go Please

Jon Howie

www.chuys.com and our By release. first be website it operator, section. have If everyone access can at our on to quarter found the good you Investors now afternoon. should not, in Thank XXXX earnings

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

Steve Hislop

call you staying I start Thank afternoon thank earnings and for hope us momentum in to continued Good reflecting on XXXX quarter first everyone everybody joining is is healthy. safe our solid and you off Jon. today. a business. our

level as period. sales period, the compared resulted March X% efficiencies underlying almost and margin improvement that including cost quarter have US our of management Also our percent under restaurant-level Southern were focus to a the severe operating central on profitability, continued levels. While of the experienced impact our operating affecting sales restaurant we XX-plus February a weather the on winter positive ago notable comparable during negative in XXXX in quarter, year trends that was throughout our doubled and

restaurant-level results included fact quarter on basis. record dollar and operating margin both In profit our a

X.X% thus continued are trajectory April with from levels second report substantially weekly far am in XXXX quarter that pleased just has ahead, March. our the to I average comparable down into and Looking our positive from sales the up period volumes

to set most result Our and of well our of that will up remains distancing unpredictable. in our the remainder for hard caution results Keep hopeful are team and direct the some this has and to be them restaurant the a we a that and that subject own members of restrictions, us prepared momentum staying social our to are I'm an mind of environment year. are proven resilience in testament work capacity of

all are a COVID environment. are their guests we convenience eager have to continued our to However, return more maintaining team improving, value. and the is with key three members pillars safety, that on operating And to resonate focus normal our situation while

update briefly you Let me on these.

at in-restaurant improve our believe quarter, payment our help the pay of that will been tech code we dining states longer-term. loosening their not efficiencies QR be During other including testing as solutions. solutions, continue to the and by has safety feedback the thus table well The methods, will positive. Again, very far as continued payment pay as are forefront also business but this will restrictions, up and will us capacity help of peace operations, investment we it our mind, create only more room

and Our the maintain able strong And demand into believe food. at testament for guests off-premise business were mix the to of our unique approximately is food this mix to our We revenues. second enjoy our during off-premise off-premise high-quality XX% made-from-scratch of appeal the elevated to and our level a drink. we of continues to convenience our quarter-to-date, additional give the quarter first

as a the last how we well our mid-XXs we and our as food can dining our on I maintain even capacity As to due believe historical level levels. travels, in convenience mentioned enhanced to call of return the mix

In terms our as items start meal kits room menu streamlined and of loosening convenient restrictions family our menu. while continue beverage back offer continue diving to adding including to up we value, we will

me Florida. With in Now Pines, a performing pleased This to openings by in say development quarter very quickly our open new between thus of new restaurant the to was restaurant well six two And opened the quarter. the another four Indianapolis, you end are during these to to followed plan. XXXX, update we new one far. Indiana subsequent target on first that restaurants first Pembroke let I'm

in year. the one Looking of back currently have we the will half and be the of rest the restaurants ahead, more restaurant May slated in

we the able In made terms operational we've us prototype during be new development will prototype our the the I'll quarter this to turn dining same believe better guests. prototype our COVID. serve unique a start believe call sometime discuss still Howie based provide smaller Jon our of to our off-premise greater that, use over will to we long-term the CFO, while now allowing at in to that experience, We changes plan, of are looking currently results fourth detail. in this XXXX. With We utilizing on

Jon Howie

first driven revenue closures for XXXX, quarter partially an X% XXXX. additional during to quarter the restaurants the latter $XX.X weeks including part during opened loss and weeks operating first provided customers, quarter partially XXXX operating during decreased X.X% first traffic XX, decrease Revenues March included total, first million, the March by from compared in had In increase of of same the decline a in new last restaurant of to the XXXX. offset by subsequent incremental various due This and of to X.X% during X,XXX was Comparable decreased million quarter weekly restaurants to year. in XXX average Steve. ended quarter by offset check. operating average by to of approximately we sales the COVID-XX, due primarily $XX.X an Thanks XX weeks the of

COVID-XX of lap As on impact March, we last sales. during the year's you know to began

begun of we to compared So sales as sales clearer providing to picture provide a our comparable have XXXX. trends, current

winter first the comparable in weather sales versus quarter improving XXXX restaurant impact excluding with declined February. sales XX.X% underlying quarter of the throughout the after So

have continued quarter second to almost As sales comparable to by refer flat earnings first Please period. Steve noted, improvement compared cadence during sales release see quarter the with today's for to April XXXX. we our

-- in promise our excuse remained last and QX the off off-premise revenue sales year. in approximately Our last same me, XX% at to total solid of XX% during year period of XX% approximately quarter first compared the

transitioned with heavy dine-in X.X% primarily X.X%. revenue of of percentage store mile overall Cost and are basis as a rate limited XX.X% we a reduced with eliminating sales XX.X%, of inflation remainder XXXX to as current approximately fiscal to about productivity Car, of revenue menu expecting trends, hourly and X% coupled basis approximately an X% decreased labor during the to to points Based to as cost points in model, due an Turning to of buffet decreased chips complementary on as commodity salsa percentage deflation off-premise cost to the a Nacho and as hourly expenses. a XXX management quarter. of our capacities, currently better commodity personnel switching the has of primarily to well XXX increasing as deflation operating for pressures. company result of rate due approximately Labor style reduced

navigate existing are who employees, Looking the in helping ahead, successfully. us so we re-recruiting have focused been and pandemic keenly our on instrumental retaining

program, $X.X manager are an over include a two managers approximately quarters implementing As in a the we will our result, retention which next investment of million.

industry. offset to to We stay the XX.X% credit driven at fees, a remained quarter. as a of by revenue costs utility Operating relatively compared Increases program and well ahead of and percentage restaurant challenging same the been compared supplies, a operating year's issue what of Marketing last as result for expect will XXXX. has as in of growth reduced a revenue at by in help other business remained charges go the this us off-premise period delivery flat costs capacity. curve, X.X%, of in the operating the as as percentage as card expense flat lower was

share in of for was approximately quarter by increase restaurants tax sales COVID-XX. company million of annual $X.X in summary, income was per of expenses deleverage. $X.X X.X% administrative $XX.X to quarter expenses, for XXXX nine XX the per we In $X.XX related quarter same same $X.X equity response during loss part last compared share remainder net diluted Occupancy net offset income during of primarily result compensation, income an fiscal to offset decrease March the first of revenues reduced as million a a a a diluted or XXXX, legal spend measures in the same as General in per recorded As compensation. of of by of period million or and and income first the to partially or increased driven benefit we discrete compared in last $X.X other benefit the primarily $X.XX estimated X.X%, from digital XXXX. fees stock-based our points benefit during marketing million first a benefit in $X.XX net expect of result tax cost first the efforts, to decreased million resume driven tax diluted revenue $X.X by of partially of year, latter travel, in The by to $X.X the marketing of period to quarter The the our bonuses the the percentage and in million year. period and to million professional cost-saving offset closures basis be recorded a an of share XXXX, as year. performance-based by

$X.X quarter incurred first XXXX, million costs. of restaurant the During in closed other we impairment and

same covet quarter in account, for XXXX, that During million Act. costs net first last with diluted first $X.XX to the in the million per compared closure $XX.X deferred million to and was impairment million, in recorded $X.XX tax $X of income share Taking diluted $X.X and of of Cares year. adjustment the a into we quarter per XXXX conjunction share, period or the adjusted $X.X or due

liquidity our Moving to sheet. balance and

million $XX.X and end a facility. and revolving the in we of equivalents of credit quarter, availability million from the As cash debt no cash have $XX of

to turn XXXX. outlook like Steve, I'd quickly limited I discuss it for to Before back our

a with directional metrics to I'm that financial would some would I like give helpful. be in not you position While you to would our guidance, provide hope I usual

XXXX. in we restaurants six Steve opening to will mentioned earlier, new As four be

of expect tenant allowances expenditures net improvement, $XX capital net million. million to We $XX of

expenses that, $X our $X And to for expected back the restaurant rate now million I'd turn fiscal in year. We XX% XXXX XX% to tax approximately effective With is be the expect quarterly million call Steve. to to XXXX. the lastly, of pre-opening of remainder

Steve Hislop

strong our momentum widely health ample Thanks, coming and trending to we food improving Moreover, operational answer and quarter, the Most becoming remain drink COVID balance you. that ensure in first can our continue we high-quality, remain we of and they happy With to positively With the about sheet more post will Jon. nimble our believe have available in business. means we're safely, of vaccinations made-from-scratch with the wherever efficiencies optimistic the wherever sales this out cautiously world. to importantly, enjoy Thank we choose. that, questions. any liquidity, guests

Operator

We'll go Instructions] from to Inc. first [Operator James Rutherford Stephens

is open. line Your

James Rutherford

Good start and All trends It's off you're to wanted I improving the want afternoon that, Jon, result. good yeah. confirm April Steve here. to on see. right. to hope hosting I Congrats about well.

levels, that number good. is positive to returned I'm really you've pre-pandemic the sure think feels sales read on effectively I which

compared the quite in On in levels step-up the cash sales landscape. some the top of to weekly wasn't April, your March peers lending the other between and the magnitude and same hand,

just at you or demand, else the whether if play any staffing could your weighed that on there color to and ability So give curious, anything maybe on I was there? meet was challenges

Steve Hislop

many us if freestanding our come – that don't key Yeah. have you of We restaurants for are tables. The restaurants tables. There is, our most noticed all into you we are booths.

in we're you dividers foot where with our you in six have the all dealing have if And can booths between just markets still the so distancing, them.

four really in And is. so it the our within – is capacity what walls on mostly it's

James Rutherford

could average a Okay. there is your way that what capacity you Is share today?

Jon Howie

we XX% the of the I this the Jon. to-go James, overall make making We're rest – levels, it, up kind running on now we're seeing you're throughout to running what of XX% XXXX Well say. And capacity about difference. as right is it's our here the up would really country,

James Rutherford

it. Got

an if today initiative? That kind over Okay. you was how to labor many full total be your to you I if hire curious get sense. restaurants that the have to pre-pandemic need share employees curious, many could going to the side, of hourly traffic Shifting Just service you that's how dine-in makes back. in load? and Does would

Steve Hislop

of XX% is course. as in at we're up. say, I'd of which the it foot as Yeah, markets. perspective any of that that in employee for Yeah. type XX% distancing But a eliminated to the until day our isn't six from levels, hired of end probably far capacity rate CDC

into As forward six would through we hiring. no get we normal to again, that's foot into But little we have get move anything. distancing, a as

James Rutherford

Yeah.

Okay. queue. quite retention manager And one I wage if on salary I'll squeeze whether the ongoing retention turn increase. program. understand and entirely could more to then I comment I kind was one-time a back the it just or an in, didn't noticed the that of bonus, tool, or and

So you any great? that Jon could color you provide

Jon Howie

a of of we're mean, looking quarters. kind at couple paid bonus, I now right one-time out Yeah. a over but

James Rutherford

All right.

Steve Hislop

basis. constantly we've and always money of we the this that done who a and we re-recruiting recruiting dealing new of And see our X.X years lot as job as new pandemic. look the recruits look is employees great are obviously in folks yes, a done really decided spending there of with at look at we lot that we on and over last because a to managers at out – retaining this, we do What they've

James Rutherford

you. Thank helpful. Very

Steve Hislop

Thank you.

Operator

go we'll North Drew to from Baird. next And

Your is open. line

Drew North

provide I takes sales puts coming margin believe if very walking in where Thanks. you some the given a in like margin line. seasonality of the just current is margin was you're trends off the and impressive through maybe could could of highest performance I if look QX continue on second quarter again QX. the context what quarter, typically on margins wondering bit

or be helpful? of there you So context any could framework sort provide would

Steve Hislop

I a monster I that that that would Yes. Drew, it's to mean be hate going to just did. we comparable put say quarter to was just we what up.

still reduced that menu, -- say we are let's in to we're on the we in are get reduced that, not and capacities operating our in capacity mode forth. until we're and so mode, full but a we However, -- tourniquet tourniquet so still restaurants with

margins when think XXs, I QX, as in as the So you you're what at for this had see still we margins quarter. the looking low probably not could high but

Drew North

impacting to it or in development. relates I to helpful. units? development market in And you've And squeeze was there? I you the thought of present that ROIC real Anything labor that's outlook on? seen wanted in costs wondering issues, to estate That's just just on is unit or development pressure construction years. as the to shortages terms on Thanks. new new know openings the would the just out one I Okay. delays if that's if starting color any I just have due get I in developing couple accelerate kind to plans of of unit next upward some

Steve Hislop

Yes. Sure.

of of it's affect doesn't engineering bit that it our it square that a buildings. little XXXX dealing smaller rates. little in forth. do roughly a back being six six we're value something As looking And and that with to a we as be plans any steel, and currently we've we're us whether stores we'll at an that bit increase 'XX. think we're Obviously, And said the this starting XXXX. stated double-digit in say lumber, looking growth maybe our I and more that area in Yes, building to at we're year, as before see range four XXXX built and to And low here XX%, one affect it tune our have wiring at in probably it. this mentioned looking of go to definitely convenient then we've I'd eight patio, year you for foot seen that's won't we've specifically XX but seem sitting and in to so a

Drew North

I'll to helpful. it queue. back That’s the send

Steve Hislop

you. Thank

Operator

next Strelzik go And Andrew we'll to BMO. from

line Your is open.

Andrew Strelzik

legacy color in seeing Are markets recovery distancing your Any Hey, gap volume good limitations some you helpful. you if across But you're more would a of the in system. know be penetrated social I that entire the emerge kind curious same kind of afternoon. was of seeing seeing you're I markets? are kind newer your the the from of the type under of as hood, there?

Steve Hislop

It's periods. been the three last throughout pretty consistent

As sequential. all pretty markets the the have improvement in far as been

no So it's not anything.

of sequential markets But Carolina some pretty overall we that biggest have jump of the One North areas. again in is the throughout the markets. our it's over all

Andrew Strelzik

incrementally are I kind as know curious mix I'm just Okay. is reiterated the of you off-premise thinking last spoke? as you we and anything incrementally seeing anything But impressive you as kind And then occasion when informs mix that usage learning XXs lowering the of stay recovery. off-premise dine-in you incrementally anything Are customer, you're mid- retaining full that consistent from banding are. it's business? that and that pretty you're of that about the your recovering all

Steve Hislop

the down Well, even the is room the staying dollar when what comes we I same as say creatively mix learning percentage, the though are consistent. back not would -- going dining is amount is a

customers And that think a dining the have good of we've we've lot got we us our in while of fashion customers back so that that, new treating to-go do learned to is coming continue a some room. and in customers and are what long-term I

and that the low back a it catering gives can think that talking maintain confidence we little even before we're comes I So more the in percentage us about to-go. XXs that to really mid-XXs that

Andrew Strelzik

Yes.

of back kind from longer-term should but Okay. And what kind this curious if items you've kind there maybe you're steady puts to et eventually about some takes the trajectory then to and a menu commodities coming continue cetera. which says back targeting like inflation margins shifting sounds in. of of Obviously, are it been sales to margin -- here? of could of I are it a you not I'm how just is kind more just kind one to recover, may thinking of restaurant-level squeeze more consider? broadly the be progression perspective, one that or I have towards quick quite and the other of as to mean favorable the labor,

Steve Hislop

in head. on -- -- sales cost in back more think pretty starting little bit quarter. think house. the have talking No, about Cost just here it we the of back were you the the a is I I little bring bring hit second a back I we'll obviously, of that's we rise as especially well to items as mean,

so And X% also quarters last in year. starting X% rolling the few last kind the the that's quarters three last we the menu of why -- are from roll change expecting of we're to over over, we're And to year.

the So we're not We're start not we the start all rolling against hourly to to over Obviously, to that going efficiencies to the the it's going we're going over beat inflation. in we're to-go -- going and on to see true on have labor. labor the made this we -- going see so menu. change rolling

we've be So couple quarter X.X in to-go over over, going in for before opening We specially forward rolling the total enjoyed second started months the to of don't deflation labor hourly our last we're that room. because labor we our going quarters. expect dining

So we'll numbers. in start some seeing those inflation

And so why said those basis XXX to through what we've going points. -- looking that's we're kind savings always of of XXX long-term

Jon Howie

off of Yes, XXXX numbers.

Steve Hislop

Yes.

Andrew Strelzik

very helpful. super much. That’s you Thank Great.

Steve Hislop

Thank you, Andrew.

Operator

Chris Stifel. And O'Cull go next we'll from to

is line open. Your

Chris O'Cull

Hey. Good afternoon, guys.

Steve Hislop

Chris. Hi,

Chris O'Cull

cost get percentage of just to the as levels a traffic before I to the do see outlook. on you when to few think curious, more a XXXX back start sales start labor the had normalize? to to I'm needs you questions margin

Steve Hislop

especially given inflation inflation said, the in over the here mean That's and quarter. start in to-go. year-over-year strength over really I second, I going third, those we're Stripping our quarter second we've start that Like in the I the I numbers. we going to rolling roll so. out think to here seeing Yes. as deflation fourth some enjoyed think because

those So, we're in going to start seeing numbers. some inflation

Chris O'Cull

of line? look XX% the Well, is basis that question. much of you was of I margin from in do that labor is points What next think the was XXX coming my mean around sales costs points to I expect -- XXX normalized XXXX it of how basis like? improvement

Steve Hislop

it's We million. to $XXX million said $XXX

in percentage I mean were. So, XX% XX%, like similar XX%, what to would that we low expect labor we

and can back think were when those I be levels those going get we public forward. that quite to to we first we maintain honest went

Chris O'Cull

to to may you they where not that But get start guys were until levels closer see traffic XXXX? in start

Steve Hislop

get going full back the we we those rooms our dining you're and Well, menu, to percentages -- our up. get bring rooms because until dining new would full seeing full start consider once going what that's we when those

probably going of so be to going of quarter year. quarter -- last that's next And into year this first the last

Chris O'Cull

And cost of items you to bringing quarter? menu how in back do the then sales Okay. to the expect second affect

Jon Howie

me again menu except you're play Not the just much until rooms I starts inflation Chris going away menu items running in more we get for see that six-foot because then distancing with you'll is up because back the eliminated, some going labor. the me until open second to dining when to my too quarter as add is not and some see much normal and

Chris O'Cull

Okay, Thanks quarter. on a Congrats guys. good great.

Steve Hislop

Chris. Thanks

Operator

from Setyan And to Wedbush Nick go Securities. next we'll

Your line is open.

Nick Setyan

congrats new want and just little concentrate what numbers. the see. that just margins on unit and on the us bit forward? are remind growth again I a target you we'll hopefully the Thanks Can AUVs going more to great

Steve Hislop

we're the we're to at minimum X.X% investment that is that trying looking million at smaller margins And for in close that And that us XX% $X.X which XX% what should Sure. XX% margin. of in on new get prototype. revenues in that mean box. look XX% this I that in with to still to we're about range, looking of

Nick Setyan

the very about right? should million mean we you And balance on million kind annual see probably of mean some I have maybe think where stores guess low on $X more of portfolio et is I Texas, in end, $X.X if cetera. probably a unit I plus? balanced we

Steve Hislop

five last -- and we million time from are very the cannibalize seven I looking we that And Again not that at mean $X.X why five we're East say $X.X AUV least at looking we're looking million to side. mean we're I and I the we've locations more what will were in Yes, said existing an I different we this states at of well -- X%. using for do than sites very, states done standpoint. think

So, standpoint. that's target in our minimum that's criteria. those to end do we our a from the expect sites Yes, would more but revenue

Jon Howie

return hit we we but we'll to our of and that, Where did XX% if obviously, more. expect cash-on-cash hurdle XX% do the the

Nick Setyan

And in terms the new of especially I on I is two sales any thus average the mean units guess of I one was really new weekly far? mean -- but them really, color there

Steve Hislop

Yes, have happy with COVID exceeded we're market very both pleased they've initial we them especially opening them and our in like expectations. we're but the been

Nick Setyan

And then Yes. G&A, on QX any might like? year what and might thoughts look early Great. Jon just look on what the like

Jon Howie

high Yes, of because little to I'd this of G&A few lot caused a you well a had stock quite vestings taxes as that option a tell employee be exercises quarter paid. as we was

was as And in the so bonus as second, really the performance well the taking third, but that it's fourth heavy that and first that exist in quarter quarter booked. doesn't

fourth and would fourth QX. to I as and reduced quarters in the as third we to through by compared expect So, be third go second the that to XXX,XXX latter quarter second XXX,XXX

Nick Setyan

Per quarter, right?

Jon Howie

quarter. that? Yes. What's About per

Nick Setyan

Yes, okay. much.] you very Thank

Operator

And Barish next to Jefferies. go from Andy we'll

open. line Your is

Andy Barish

guys. Hey

foot past? And are the closed prototypes? the next Just think building out in as X,XXX for some those square of you've you that stores done you on seeing things benefits pipeline can year you there will be how many do XXXX, convert the wondering from

Steve Hislop

that definitely and in love done space the always at love right hermit X,XXX. We we've will do be that. as the at past Obviously in like crabs. of prototypes Andy. as area. remodels But our the look And Any looking the we're we'll it's long we'll we

closings. haven't are a our seen We're of in markets that New all market not in where our bunch type not as of far and As California. points we whole York stuff. We're

And of we think and look half seen be we be to closings. come, whole you'll they will in do opportunities, in opportunities If we at a for especially going I XXXX are X,XXX. when the some those the year the obviously which more at definitely So, do the then any continue remodels. see to haven't we'll of bunch second will markets. remodel in prototype look But

Andy Barish

line things gone Jon guys I utilities pick you. those smaller up may rooms coming do you expenses normalize, the and you away down? of as on expense like side mean Got then to expect last dining hunkered back operating that on year things And start with the some have that when of to

Jon Howie

But Yes. on mean with sales, that we leverage should get it little come item. should I the back. line a

So, when we because you're be of leverage line that looking at the higher back XX get to that's as without XXXX item XX delivery also the But think closer mix fees them levels. the approach delivery points bring leverage of the that XXXX -- we back and basis going numbers, of supplies. than to-go other of XXXX or that, your should on exception I to as probably some

Andy Barish

Thank very much. you Great.

Jon Howie

Thanks.

Steve Hislop

Andy. Thanks,

Operator

we'll C.L. and King go from Associates. to Next Brooks [Operator Instructions] Todd

is line open. Your

Todd Brooks

well. you're Hope guys. afternoon, Good Hey.

Steve Hislop

too. You

Todd Brooks

few thank A you. ins ins tag left. few tag -- A

once Will restaurant capacity So, to was? normalize Steve it back Will the about to there adding be menu can the you what talked fully go items menu. back in still the you you to as any would of restore maybe even nature expect benefit, items? you cost efficiencies where it, types or different for streamlined items swaps to a is some start or there

Steve Hislop

the of go the this to the XX, to year release move planned -- obviously, all on some through big going XXXX we're already into from and then rest mean and foot distancing, back kept a add we've a will the those as had to on fact handful -- but next pre-COVID. our on. carry efficiencies we I but full we as probably no six the menu from we Yes. size it A of items menu a few sellers, not that that we'll simple we over

Todd Brooks

you XXXX a at then And it actually That's experience mix? and are great. as the restaurant? it's indexing? alcohol in more level, What's fiscal your exuberant Is kind or restaurant levels, of to back seeing normalizing are as the what far little over people

Steve Hislop

there right that around We're in XX.X% number.

lot back in our of If that's distancing the we especially the foot XX%. in thing go area. bar And you to XXXX, six for closer have a waiting where the we're kind big areas us, to

six And in probably obviously, is where waiting distance there where now it's we around. is the that's it's going -- not and everybody not allowed. just not so foot Obviously,

affected But rid a we six pretty of casual where XX.X% that our distancing, from Once the that XX% definitely a very continue number is quickly that's probably on So and honestly we're and in time foot the definitely pleased we place in to environment. we dining in us. think move get strong up pretty there. can

Todd Brooks

catering? we about where are the Thanks me. And on final great. maybe think opportunity the recovery-wise Jon. out pushing mid-XXs. relative catering talked in start off-premise you one Okay, settling when for Does again? And to thoughts you can include on Jon, Chuy's that

Jon Howie

yes, some do. oddly back. it things the opening starting booking come but enough. some we're It's back back going new include honest Yes, catering catering, that be coming but in we're Well, were back weddings yet, we're quite mid-XXs, to coming markets like see definitely getting would not to we like into that scheduling to that. it's XXXX strong and And scheduling not to

we we of scheduling six and markets businessing, to were going expanding foot in like So, as start as we'll those the soon opening get out that XXXX.

Steve Hislop

Yes.

holiday the into get some period. that softening getting fourth quarter see of is Our into it, we hopefully specifically as the we hope

Todd Brooks

helpful. That’s Thank both. you

Jon Howie

you. Thank

Operator

a question follow-up we have from James Stephens. from Rutherford next And

line is again. open Your

James Rutherford

Car on kind even some an there's costs see Steve, price Thanks. the or I value size, the inflation for seeing new operating if a else, commodity something to that whether curious wanted Nacho leverage get and back extraordinary with additional to Chuy's it's something like with that. do It's portion opportunity model. piece you build And something just margin labor you're or into I'm minute. of experience, returning, in

the your foot extend Thank lead on distancing just front. to the value you. of As kind away, six goes

Steve Hislop

I a business we that currently on thing you'll buffet best the think now. view. as department again because with be right equation of Nacho out at see that one probably health value But is in not is from of come our point the the will back looking the Car style us

hour distancing. the foot at some plates, us value as the rid get of You food six looking will we see happy for specifically on side

Operator

for no turn All any questions, right like Steve closing remarks. further with back to I'd Hislop it to

Steve Hislop

so be you good and and and a will I Stay questions. to any thank Well, to available evening. all thank appreciate Again and always your we much. healthy interest much. Thanks Jon continued you you. answer in so Chuy's, have

Operator

does Thank conclude for call today. that your for participation. And you our

may You now disconnect.

Chuy's (CHUY) 9 May 212021 Q1 Earnings call transcript