CHUY - Earnings call transcript Q3 2021

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Operator

Good day, everyone, and welcome to the Chuy’s Holdings Third Quarter 2021 Earnings Conference Call. Today’s call is being recorded. At this time all participants have been placed in a listen-only mode. [Operator Instructions] 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, Inc. And now 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. third 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

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

Steve Hislop

healthy. you Good I everyone thank quarter and everyone, staying and earnings us hope joining you, Jon. safe our Thank call on afternoon, today. for is third

increase XX%, XXXX, year pressures. us approximately level and to over We Delta and emergence operating over to challenges a points margin top-line basis an are focus XX% management cost core basis continued compared staffing despite despite and of allowed on points grow in restaurant solid pleased markets. quarter, efficiencies during our to XXX of growth to third our variant XXX to industry-wide compared inflationary last operating of the COVID-XX report the the Moreover, our

challenges. two performance impacted by third was As I major our quarter noted, negatively macro

This stricter comparable XXXX, we business compared recovery was operate. to mandated restaurant emergence impacted in locally halted in seen X.X% the capacity including August, of during the with the had quarter, to declining which momentum the in we restrictions that Delta temporarily markets sales XXXX. variant, particularly many During by sales our negatively

came down we improved the again, the However, our continued being restrictions late are lifted significantly trend encouraged with have and and September October. as into quarter in cases the once in that sales

our fact, pandemic exceeding pre-COVID to for the the since volume sales X.X% increased time XXXX, sales compared first October began. In comparable the

challenge second that just is our but not industry, one entire company, labor Our restaurant impacted is the availability.

of number this to experience. levels can all a of we available forced third during some our were been capacity order of between ensure operated able And and we’ve are training the to in reach recruiting restaurants XXX% guest tables we to staffing To at quality we ensure focusing quarter, While in are restaurants efforts properly system employees staffed our make combat near-term our cases, only XX% to our that the This the out wide. challenge, limit well to with both in our three XX% than of the million the the is XXXX. guests guests. continue the and important resonate and members. and our team third summarize throughout $X.X and backbone we’ve second to bonus pillars operations key quickly ever, curve. With pandemic been included our to Safety our in of let stay have our more now our that me manager retention that, related ahead program done work paid quarters for

tremendous on to to touch to guests. mind, high environment comfortable made-from-scratch work a safe do be value, we quality drink our in they our members food upon guests the so for and able between need our minimizing team craving continue points are a peace and While to improve at of and

more payment out pay-at-the-table contactless for and QR we the method to quarter, third payment During continue restaurants. rolling code push our by

the solutions system year. more roll out end expanded of all to plan the by with solutions also these stores We our of to the pay-by-tech wide

we We pillar guests whenever important, enjoy wherever the that unique is second our environment our is equally in. Our they given believe want where convenience. and live to offerings allowing

XX% quarter the solid this. second off-premise Our mix during third during XX% and demonstrate clearly quarter the

approximately pandemic, food was travels, mix and a forward. XX% to our well recall, we to to our low mid-XXs how the off-premise XX% given prior we continue can you mix to going If maintain believe

Lastly, back of Taco continue menu our including more XXXX, our highly we popular And our requested to the combo guests some in items we to quarter excited value of first in Baja and Shrimp menu. the some appreciate are offering the plates. are bring

development, we for opened which land completed new one four in quarter, our XX. In during third restaurants of the successfully year, terms we to new total In bringing total, opened XXXX. the development restaurant our restaurant Brentwood, during Tennessee count

to we look in ahead, new six between are open XXXX. planning restaurants eight we to As

to our with discuss are utilize upcoming Howie, serve the we results Jon operating in our as We excited off-premise further smaller detail. pipeline greater that the guests. plan development to our that, prototype third to CFO, over efficiency a improve better and will turn I now call quarter will With

Jon Howie

opened XXXX. customer restaurants from traffic $X.X capacity indoor continue Thanks, for quarter $XXX.X primarily as the September all fiscal in was we to in of growth of our related new compared $XX a as dining quarter revenue XX.X% increased to million The XXXX, the million to ended year increase Steve. million restaurants Revenues to well same third during for restrictions relax XX, as last year. incremental

in average check. a year quarter a third XXXX. versus during For total quarter sales weeks X.X% X,XXX total, during approximately XX% of XX.X% decrease In the and sales and Comparable in increased had XX% offset were XX.X% revenue XXXX included of customers, the off-premise in in XX% compared the operating we of by restaurant XXXX. approximately last partially increase third XXXX, weekly average to approximately quarter third

For a more declined our accurate comparable picture X.X% quarter sales recovery, third sales of versus XXXX. restaurant

of this mainly August. heavily emergence impacted variant, was Delta of As decline Steve stores to due earlier, which the our mentioned the month in the

on partially commodity points basis due year. XX.X%, inflation offset of to fourth quarter of family revenue a current overtime. overall result mix rate to sold Turning as Labor Based basis XX to fajita a -- labor leverage labor to of was by compared as sales expect of the cost costs. X.X% a primarily X% trends, decrease in in This as X.X%, as the sales of to we increased X% points revenue commodity to hourly expenses. approximately XX.X%, Cost the kits family XX due approximately a mostly increased of inflation of of approximately of percentage prior increased largely by on management percentage for offset to part XXXX. inflation

quarter. in our in We also incurred bonuses manager $X.X manager that the retention incremental second million with $X.X program conjunction million we of started

XXXX campaigns challenges to to operating advertising expense resumed Marketing costs approximately marketing and expenses well by and fixed stores we because restaurant of same $X.X increase salaries primarily XXXX. local higher increased during XX% some as during basis million cost as third new as last points as to to primarily percentage hourly our with for percentage wide. on leverage fixed XXX on as inflation a to improved as year, expect period of quarter of the as the revenue in fourth rent As labor percentage costs. offset reduced X.X% higher XX% decreased a General XX persist, of percentage over sales by from well the occupancy quarter a digital occupancy to Occupancy fiscal XXXX. million sales in points opening to XX.X%, four XX related expenses, driven performance-based partially administrative increased a points system expenses we X.X%, revenue as $X in rolling basis basis of leverage labor fiscal XXXX. Operating bonuses revenue

million XXX.X% the third steady taxes last fiscal by an net $X.X held recorded XXXX estimated period at per XXXX same The company a diluted $X.X in or in XXXX. period income in to year. diluted income $X.X revenue, driven the or of million about per to to As increase the $X.XX for In quarter of share of in income. X.X%. in $X share compared expense G&A same annual million income of tax summary, million $X.XX the quarter increase increased percentage net The was third compared during

XXXX, in third restaurant charge of net the closed remaining as the as the or rent such restaurant restaurant for to well termination XX.X% quarter for $X closed the adjusted last leases utility increased quarter costs per period to closed operating we closed same XXXX share million three stores incurred of share the $X.X per income per in $X.XX million, million this third in of diluted impairment, expense, as of or account, is and Included year. During diluted $X.X and $X.XX Taking costs. or $X.XX diluted that share compared tax net million into insurance. other $X.X

Moving to sheet. and our liquidity balance

of of million $XXX.X end cash we million the credit and closed the third and the $XX new availability debt of of had equivalents, quarter. in the from we at beginning As facility no cash our quarter,

facility As based a do so. mature certain requirements in reminder, facility This July can will credit this we upon million expanded XXXX. $XX of be if chose to new to

third a the the stock approximately $X.X of of for program, of the XX, current of repurchased million total quarter shares of Since XXX,XXX $X.X the company stock XXXX. for a repurchase the of approximately During common repurchased total common XXX,XXX its XXXX, company September beginning shares million. through share has

under the $XX.X end quarter, program. As million remaining $XX of approximately the of repurchase its had million third the company

which program program on the and Board and may company repurchase expires new on approved However, repurchase common end, to million the the XX, -- XX XXXX. program of share effective subsequent October a $XX company’s to of became repurchase XX, This the outstanding. under stock quarter its December October replaced XXXX, purchase up Directors

to hope not directional position still we’re be provide give helpful. metrics while guidance, in Lastly, you I that our financial will a some usual will I

of Steve four completed with we XXXX mentioned development plan now our earlier, a have As openings. total

We allowances million. approximately net to to to be tenant of million expect continue expenditures improvement $XX $XX net capital

I’ll million We approximately to tax is lastly, effective to XX%. that, over expecting And are expected back be call in to annual expenses preopening rate to approximately XXXX. $X turn now XX% the Steve. With be our restaurant

Steve Hislop

Jon. Thanks,

that in our to remains staffing its three guests the to the our restaurants demand with increase With again, work our well on high-quality healthy environment believe capacity food, the and pandemic, virus our will underlying the order resonated very convenience throughout variants, continues on have properly for we business and pent-up continue we our While to room recovery made-from-scratch be safety, operating while pillars to strong. a due value. uncertain focusing dining

recognize that, time. and of dedication we members any work to safely. continue alongside are questions. They like you. guests proud for I’m to backbone their our Lastly, unique of atmosphere Chuy’s our the Thank to recovery, uncertain this can enjoy answer the I’d ensure With our to working during team them hard be and truly happy to all are

Operator

[Operator Nick Setyan ahead. Instructions] Thank Wedbush you. first We’ll Please from question Securities. our take with go

Nick Setyan

struggling. are bit obviously, peers commentary your when margin see to going going labor. amazing another a forward, both The more little and on in congratulations and inflation, you Thank we’re cost food

and thinking could maybe us in of what QX to pricing offset what So partially you of you’re maybe pricing some of maybe XXXX that into inflation? tell was kind QX? And in

Steve Hislop

Remember what QX was?

Jon Howie

believe. we I QX, X% in have I over a X.X%, pricing mean, at little

Steve Hislop

we done i.e., we a And unless into averaged fixed do came there’s a X%, that be to move once Obama But in effect. we’ve to remain, as that and that going average. cost year, we’ve X.XX% forward, it Nick, the traditionally year is Care pricing, anything going that’s

price to currently. the single do our markets value now you in our environment compared continue is we’ll out price beginning at way look we’re we the know, we we’re that of our at range our of as there so the And what’s at spread And period to every increases look two increases, And looking currently one our at competitive two-plus at beginning right in the set. and February. happening doing in again, of because, which XXXX, looking

again, pretty So, current kind where that’s But we’re been thinking monitor once year at now, a good only year. I we’ll right where now, and look do we’ve as further. been averaging. we’re And said, it’s where But we the and we’ll like we feel it right what goes But looking of going. we’ve price. forward,

Nick Setyan

it. Got

sales in Obviously, But expectations, there question through you the trends including up And the end do sustained continue of guess to – market QX. so I where the quarter? own bags the way to exceed of your margins. current terms that the the frame any is

Jon Howie

our you’re now end again, we’d how the at of of right us on the that the coming end As we’ve is out still on the items. items a run tourniquet eight the year past, see the we’re a start hours restaurants, the we’ll to few what the items at menu fit considered in our mode we’ve see way through that as it menu, limited what add of Hopefully, period about with talked I tool all is which consider. we I at really to And see our times. up and And continuing beginning back as this we’re at probably menu going variant. second seven to of probably limited

move mentioned combos of our about we’re I we basis in. over the think points that shrimp margin but have I a that’s will few over XXX points that’s XXXX. projecting And that increased as stated basis quarters, maintain forward. and We a to XXX back as last conservative, to the margin of come think in lot an we we’ve expect improvement what little

settle is that so to we you basis in menu there. if XXXX, we points think XXX basis operating fully to we’re I so And think a at full on around was going once margin back of XX%, XXX points get look where top out that

Nick Setyan

clarification then And quick QX? in Jon, you a -- it. X,XXX clarification. say just operating a just Got weeks did

Jon Howie

-- that’s X,XXX. Yes. I believe correct, sorry, I’m X,XXX

Nick Setyan

Okay. Perfect. Thanks.

Steve Hislop

appreciate We Nick. Thanks, it.

Operator

hear Thank with from We’ll you. next Andrew BMO. Strelzik

Andrew Strelzik

staffing Hey is think about My sales kind much the good of I’m and the recovery. the to challenges trying first some how just afternoon. of restrictions limiting question,

sales in of the there October? So, you you all fee about the talked XX% as Have of staff. what about mentioned frame quarter, XX% was to of at the some into you trended? then exited to kind to anyway you progress it have that that quarter? you How is kind that And seen has contributing that magnitude recovery thought the

Operator

One we as Thank we speakers. reconnect speakers. the moment Again as reconnect one the moment you.

Jon Howie

Andrew. Back to up

Operator

team management the reconnected. has been And

Jon Howie

Sorry.

Sorry, got Andrew, buddy. we drop,

Andrew Strelzik

two, of mentioned currently, way holding October the about progressed? to that rate that, certain that’s staffing the is so to it number any one? frame either that there I relative quarter. think there number to And to – okay. was in you back think much which And has the XX% in extent as magnitude a at about was limitations exit to extent, or to even how trying how That’s think the And continued the about that’s is staffing the kind local whether you guys the you quarter, then how when XX% the on levels, sales? restrictions

Steve Hislop

I’ll answer of at the part latter first. end the

As to the period whole we’ve there’s little tracing It’s have – out bit also far of quarter incident that stuck, we’ve for sometimes the not as COVID they in that but XX% that a if for – a been been of then to you XX%. a in obviously exasperated time. be and by do, need to work

bang that with levels. uphold and what thing one standards So your is you your I’m do it on hospitality you what have you and can

at if wait going So you’re someone table. that, overserve we the ever wait, and door hey, won’t you’ll to I’ve

So that’s something.

that four we’re probably opening to capacity, we’re staffing we our So hard – although of XX% at definitely forward. levels inside in XX% our XXX% that moving we’re because walls on working

Andrew Strelzik

Got it.

the talked terms items of kind impact side, that food sense. what’s COGS that And impactful the menu about how with on first, progression Okay. quarter, cost of first adding back a the couple will from the from And menu the on there? of those be? then expectation the you the makes on That in then in

Jon Howie

– to That’s the looking Yes. in as Then few a at going inflation want in and added November, to the we’re menu. we cost items our now, we seven drink menu onto the how the the menu not – way the to about February. that. don’t we back combos a they’re combos is, Right hindrance will remember, last you the But we as be for and/or rates, to, except be anticipate in mix, shrimp. mentioned,

seven the will add That items, to be eight menu the that menu. to be will for and our full going future. on foreseeable We’re

will You for the will then year, will bring probably half is as you XXXX forward. view to of evolve of that as And year, how specials, see us LTOs in the in second starting the some us third that in move us specials. second the certain see see quarter of some point for we run the progresses first and quarter the from weekend forever back menu year us our of you’ll you’ll the see that run time we

Andrew Strelzik

that. one on quick just follow-up then And Okay.

on Just inflation of prepared in if XXXX food the beyond there, the please? kind some relates as do the but XQ. any to don’t you. it to the Thank context food or about of color I know of just outlook Can give have cost hedges some kind you’re lock you us your basket? do give visibility you

Jon Howie

Sure.

beef next So of to right middle in the locked now, year. of heat we’re through

can, the still when lock to it’s of year we do the We’re rest whenever to looking in favorable so.

with the the of year. end through locked We’re ground in beef

probably If you’re what XX% today, in that’s looking we’re higher than about pricing locked at to at. XX%

a as beef usage on next Nacho a five strategy, higher we Car, average. So One maybe rest look down year end think what of we’re that need on note it What year. only average, great bit at locking beef maybe end year, used thing we’re year might is the inflated. float considering at they’ll a year to in the But down though, of as inflated the come we’ll Because five hearing our still thinking of commodities next percentage shut ground of that. looking our little for to we’ve to since next by a possibly They’re it we somewhat come ground obviously, be not back. be. let is is, that and that are

things, going other level. well. beans as at of fajita in of been like our but beans been in our some on beef grocery still locks beef has And up so the have most standpoint items and locked have from We that

for be some to year next sure. going there’s So inflation

this I that definitely, prepared others anticipating But hearing been probably We from as think well, really what to they’re at don’t we’re you’ve think I – quantify time. it. haven’t

So…

Andrew Strelzik

Got Thank Appreciated. helpful. it. you. That’s

Steve Hislop

Thanks, Andrew.

Operator

our We’ll from next you. Thank question take O’Cull Stifel. with Chris

Chris O’Cull

guys. afternoon good Hey

Steve Hislop

Hi, Chris.

Chris O’Cull

Jon, we just And you what would I should help get the understand likely be us end a could range, points. year. mean, next you’re how low points labor be to back year. XXX I believe hundred higher the was basis I this of to hoping about to up than expects company margin mid-XX% to XXX, couple thinking basis

than to I’m months offsets understand, be the there trying we when pricing? just going about think other margin next any So over to XX is

Jon Howie

XX% the on sales occupancy. range your have from back. think is on leverage from mid, it’ll to I been the labor definitely now, low is in I your probably bringing on also thinking to cost we’ve you’re impact but XX% saying And That’s cost a what kind one a get and your increases. operating new we’re from that of sales. it’s one, would once standpoint, say we Right of we’re items don’t that significant – think we’re we back menu, right,

conservatively that still are can I and XXX we that Steve saying basis margin. why that’s in So maintain

you at we’re we’re probably at of in that kind to XX% next XX% compared kind if of year, XX% where So looking that looking. in those into is range XXXX, high look that teens to

Chris O’Cull

I is look a to of to it the it? be thinking. would math, at Yes. And That’s fair then assumption you year. what able grow And going earnings next company was comp that to fair without kind is have level, just the that way a a by unlikely if sizable or in seem margin my

Jon Howie

we’ve Chris. and – that, I been think I think saying

from after fair back kind you get there probably of that’s think baseline, then and we if say for to our year to growing will. I next

Steve Hislop

then the what when the we tourniquet And been had part time. the and that’s third and of you second about at Chris, whole menu, again, talking first, mode, whole weren’t we’ve quarter obviously, Yes. look

Chris O’Cull

like everyone. markets primarily? openings extremely next to going you them, sense. Brentwood, those in I make mean think and think Tennessee. Okay. when we the you sure store lot and performed want when they think, makes level a like core have are then the set Texas been look Tennessee unit to openings well, I markets backfilled That recent of be like I And about about just year,

Jon Howie

will. they Yes,

Steve Hislop

three strategy smaller really continue going markets Yes. we prototype pretty that And going that’s move is forward, stores of especially years, we’ve over in you’re next just as or to type of been we’ll in next in going be adding Chris, and our with we’re that’s four to only in to currently, mode. see successful the that’s us that the kind – the – and be

Chris O’Cull

you And markets big guys pandemic, two think to you my track a as back with get cushion three adding question. that of maybe or part expanding to a quarter prior just Okay. were know a the I of then last catering Do the on catering? you’ll making business.

Steve Hislop

single pre-pandemic, now, where XX And up XXXX, on that’s ended supervisory second we’ll a of quarter we probably coming them, in Right borne question. every it we add per some hard up as that But the but up. can then do that and a – XXXX. XX, and earlier Jon quarter, XX we we us into believe mid- enhanced end – getting we is so catering by that to each in to all go, I mentioned opening back you’ll be what have XXs we to great expect actually to and of two next you’ll Yes, which we’re now is And were that back – on the possibly yes, And what think each to we’re maybe a ramp this see back market company. supervisor, an in market year upside get we plus one. maintain have could to quarter, we we in to low one that heavy have continue markets. where

we used periods back probably almost XXXX. last pretty periods, the of that of we’ve seen And of our, XXXX. do last two are We to in it a couple seeing one it come before pleased little the bit third of what was matching in

we do it we what out to enhance and as pretty with that roll excited back we’re can continue that So in XXXX. about

Chris O’Cull

That’s great. Well, congrats on guys. quarter a good

Steve Hislop

Chris. Thanks, Appreciated.

Operator

next hear with Inc. Please James from We go you. ahead. Rutherford Thank Stephens,

James Rutherford

afternoon. good John Steve, Hey,

Steve Hislop

afternoon. Good

James Rutherford

feel free by the down But to my think. roughly is levels, to versus XX% which math, and is math your you’re wanted I my correct same traffic. ask what I last about XXXX running as about traffic quarter, this. By

to you a COVID what gets is back hesitancy to or slim there’s markets that XXXX normal level? more curious what you staffing mean at I it it’s the traffic? XXXX that’s Is full the truly back pieces I maybe traffic? it that Just think still you or some back the perhaps mean coming down thing are to menu main certain get

Steve Hislop

thought the period again, and relax the a a those quarter, pandemic, we’re really continued of answering you’re that I you August tables answering we question again, staffing a third Delta the definitely increase our have I at can really it’s to up sales open job in the where customer was say job really also great And ones. to focus Yes, looking understanding hospitality said, is that. yourself. on. did through the get us. and took a focused counts. and levels with I did why quarter think, you couple when the And second that’s the similar variant smack to one thought But the that’s But it biggest the at specifically thing are then, we I’d to and is a nice mentioned get looking at on what all biggest levels basis we’re good like positive, a was can There’s earlier, in I for least And which we’re staffing. October – us, we this what and the a That’s as comp at. saw XXXX. in a sales you a where main finished XX we few on things. Number we now you’ve seen just nice actually getting

James Rutherford

goal you helpful. Well, doing? a that, component staffing. more doing people I is hear I to just But mean, to fact, doing? in you is Staffing, what back what I the that, line just What specifically, you mean on thought your of there Are what’s if to mentioned of of on it, wages didn’t the love sight that path to to very managers the focusing mean, was Steve, are would? in? leave forward, witness I are if your On if getting creative things? back bring XXX% kind are you And one

Steve Hislop

doing, level getting a first keep what the that bonuses – whether you’re referral out There’s store you the be things and multiple thing it have. is

We is XX%, roughly XX% a number. about employee turnover, great which have

the that. And place focus on keeping keep know about excited managers what because can one the stable continuing That’s then We’re really you the if and have. thing. That’s like in employees that’s number we stable, management our thing in environment. be a we we teams with main first what

do And why we and retention that’s So managers. really we the this we turnover of bonuses for really have second about year quarters pretty want third in we because that there. talked mean industry-leading did to that. we’re pleased I

We’re great about XX.X% currently, which is great, a number.

referrals it all of referrals or and base employee how our we have do great is talk friends that likes wants and look and the So similar want then culture want here. work to them employees our but stabilization, and keep then about existing for to what really, on their existing we to is just and to and time our be re-recruit

things on a to really daily, we continuing basis. execute there’s We’re then store a of bunch weekly whole level that. that pump But

James Rutherford

one bit Jon, but And it, G&A Great. right. up one of last you stepped you. maybe and in million. I for All quick around missed just $X this the a mentioned little quarter

Just on that that? driving maybe very much. forward? going Thank what’s And the you what was outlook

Jon Howie

Thanks. Yes.

that was on on performance that fully that. this thing kind funded biggest our the of bonuses quarter. So We

is in next So somewhere it $XXX,XXX a where from probably today. that bit, should the about $XXX,XXX between down quarter little to step

James Rutherford

helpful. very Perfect,

Operator

Instructions] [Operator Mary Baird. We’ll hear from you. next Hodes Thank with

Mary Hodes

for afternoon. question. Good Thanks the taking

smaller how costs? we you’re estate couple planning a targeted on these And seeing then Just real return profile unit for should and think development. What are about construction locations you open? that on the to prototype

Steve Hislop

seen se on in as real that’s that. – A loosening as any sites, far everybody haven’t the up what for – per we paying was is haven’t we market still estate, seen What and

to costs far construction the little a in now, construction even seeing XX% of year, and from we XX% As bit half end openings heavier pushed increase – as little a them why second that in next back few an to – XXXX. range. our the we’re possibly XXXX of into on the XX% in right costs That’s why bids we’re of a that stated

Anything So that’s running now, kind that there, – model on high. the of right Jon?

Jon Howie

No.

$X.X I think still engineer return. to to said, still at of the And dollars in value to new like we’re return, TI Steve net box. range. that working $X we’re cash-on-cash XX% XX% million But that we’re that looking looking million

we somewhere to as me, So that some better and between million are where at proven XX% markets that. get since over think to to or very four locations we AUVs in focusing of $X margins that on even excuse than comp should in to we three four, on – back to you X.X and XX% – next I approaches XX% better can back the the gets million XX% look high margin, that these have $X years,

Mary Hodes

still in then double-digit growth to do and you Thank you XXXX what based get that think seeing? on you’re you currently can

Jon Howie

Yes.

we XX% were double-digit XXXX. I at think to looking in see growth said the in you’ll year, six we’ve that next starting that eight range then and

Mary Hodes

much. Okay, That’s me. from it you very thank

Jon Howie

so you much. Thank

Operator

Brandon you. take Sonnemaker James. Raymond our from Thank We’ll with next question

Brandon Sonnemaker

Brandon Vaccaro. Yes, thanks. Brian Thank for you on is guys. This

in were it amount traffic, so, perhaps like relative cause. to Delta circling Just given down question understandably looks around similar XQ a your XXXX and on back sales the dine-in prior a

versus labor XXXX a equivalent the get quarters thinking dine-in with the eventual how XXXX labor now to down implied in to I’m to support return about dine-in few trying added past be Just XX%. much of week down sense per to about of back levels. XX% sales needs really

as relationship should heading So into consistent XXXX? about we think that

Jon Howie

XX might things me I’m about your hourly about the we’re but some not we Currently, had that sure kind at staff. of XXs, perspective, an fire – – at that hourly think just question. employees from probably question, let that And answer XX% basically I we said in the we’re we’re XX% we of XX%, XXXX. in low to that think XX% off

targets a that, based can see that upon lower. So think I lot you our are

levels lower. par a are lot Our

XX% talking get staffed So to that fully XX, to XX we’re so another up.

overtime. maybe that this or about our Now of I say will to was quarter inflation related third third, fourth

So go up, staffed as premium we get that down. will

that if cost sense. makes staffing net-net And increase so well, as kind we of you have a as

Brandon Sonnemaker

Yes.

the over hourly trended staffing quarter. XX.X%. you us is hourly inflation, GM XX% Okay. peak? you wage just is step-up levels give over I That’s the turnover? of should relatedly, do to around a But envision quarters Could And further now? sort an GM XQ few how past about XX% staffing I the helpful. on the turnover update progress? on was not also XX% think last And current perspective in Or appreciate the do of think we step-up

Steve Hislop

forward. very now, on I’ve for you’ll it that. right mentioned again, us. earlier, was so for turnover, retaining we’re we is key XX%, a at number which think that move which right why look I as around But that’s focused is good And us already our as piece, the

Jon Howie

this – I inflation. were we got of some was starting the over the in think We we last year saving expecting we of to that that one some inflation said this – were QX, labor they seeing thing as were us, expecting in comparable mixes we where rolling because from started

staff were the However, room increasing to of it was as mix we keeping house. our the back our dining compared down

mix pretty was and And so is year. last the flat to the now well that keeping mix down,

And so as like also as up, we to continue increased in go our leverage saw labor management quarter we’re the that’s cost. again, see why will in some seeing we sales well. inflation this our that But

we’ll there. leverage continue So some to see

Brandon Sonnemaker

guys. Appreciated it. Got

Jon Howie

you. Thank

Steve Hislop

Thank you.

Operator

you. would or does Mr. I Hislop today’s the session. to turn to And question-and-answer conclude back for any over remarks. like conference additional closing that Thank

Steve Hislop

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

Operator

that today’s conclude do your you you. We Thank participation. all conference. does thank for And

disconnect. now may You

Chuy's (CHUY) 6 Nov 212021 Q3 Earnings call transcript