Earnings call transcript Q3 2022

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Operator

Good day, everyone, and welcome to the Chuy’s Holdings’ Third Quarter 2022 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 open for your questions following the prepared remarks. [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, Incorporated.

At this time, I’ll 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 at to quarter found the good you, Investors now, afternoon. should not, in Thank XXXX earnings

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

like Steve. the of that turn call way, to to I’d over With the out

Steve Hislop

Thank third you you, Jon. Good us earnings today. quarter on thank joining for call afternoon, everyone, and our

guests believe our is We This thus our into line drinks record slow a results, behind from July quarter but in our has scratch with trend and third which of driving to at to continues somewhat force that the in food August September. is with in started driving strong growth. due an momentum and and fourth offering quarter, Texas, we with finished resonate and philosophy far the top our fresh, made positive continued heat pleased incredible value are

relative while Even price protecting to our guests believe peers strong. we our X.X% expect value proposition come gap maintains between our to remains balance the increase, that maintaining from quarter, increase superior a we third the Chuy’s. value believe this implemented the During store we with level margins have the price

basis point focus margin, In in improvement resulted cost XXX focus restaurant-level representing a and operating XX.X% terms XXXX. team profitability, on continued our operating a of – continues management efficiencies over

operation. aspects to key four-wall of our Moving

through We able of and continued including staffing member to newly and positive quarter improve our to a number on the guest been during the benefit, with our health experience. to rate continue progress to team initiatives, our we’ve mental make retention hiring benefits personal counseling our restaurants implemented

our bonus has flow of mix applicants. of to mid-XXs. XX% Additionally, our improve business positive continued during team our sustained above referral at and the momentum mixing member program to our quarter, our off-premise new We remaining in approximately low target

system-wide rollout off-premise with pleased catering our and we program end of execution, the year. of to remain are by our complete We team’s the the on track

to and favorites excitement CKOs our create we Turning guests. and menu and menu our Chuy’s are We or exciting limited specials awareness introduced consisting offered items new is of allows Chuy’s innovation. basis. The to to what variety. time a In believe October, CKO us CKOs late differentiates platform Knockouts that additional quarterly introduce to commitment and to innovation testament around a on our old

of such late Boom-Boom our the Chuy’s Tacos CKO Macho new Chicken Pork in introduced part and Enchiladas we Fried items as October, Starting platform. as Burrito,

assure We new new our second to the in next for also of calls. have quarter innovations started. in our future year, forward sharing we curated just items I CKO additional look we and first next can are getting and you

with digital our CKO with new a we on program. marketing Moreover, reach programs and and audience advertising we returning our market Chase Instagram, YouTube organic both of continued in to a our us quarter, on believe website, the Along initiatives allow effectively with new advertising their a guests. launch partnership will broader TikTok, media, connect use more of Chase including we part Rewards partner a efforts as influencer to with group offerings, new the will conjunction month campaign with our and with During this Ultimate heavy emphasis promotional DoorDash. video

plan. to development on Moving

new restaurants Arkansas be Due originally quarter total early open delays, to fourth supply new a open our We in for now in to expect to the restaurant restaurants two chain fourth expected XXXX. of openings Fayetteville, a open of quarter will fiscal XXXX. three

have are closing in the planning trade the another the on we in term days one of as restaurant at of location lease desirable for the more a Additionally, restaurant XXXX final end developed area. we already

six AUVs initially in expecting development that where time awareness. the challenged XXXX look world, remain control. markets we that nine shown focus fiscal our out proven with brand with of to especially supply concept chain As direct more lines between high and post-pandemic delays restaurants are new to has the forward we’re and on our XXXX, open us a our ongoing with is

the result, one to a we’ve this a we our account we’re set and As target, but that we as last tempering years. still achievable four in to for forecast reasonable represents the units want developed most believe

openings secure continue additional year. through to We will we work as to progress the

I’m program, excited October. that our repurchase completed announce Finally, we accelerated in we to share which

announcement are see program, million as pleased demonstrates shareholder value. strength the position which Additionally, announce and a we repurchase can our this share our of our in long-term afternoon, to $XX to commitment you financial new

Howie, over third turn detail. Jon our now results the our With greater discuss quarter that, call to to in I’ll CFO,

Jon Howie

$XXX.X third same million Revenues the for operating weeks in to XX X.X% year. $XXX.X last compared was subsequent increased restaurants quarter million from of to XXXX. new opened Steve. to third related primarily Thanks, the additional to quarter an This the quarter increase

quarter to XX% For third total with that sales off-premise the revenue. of XXXX approximately were consistent quarter of XXXX, of the add third

restaurant weeks a a total, offset X.X% XXXX. year, X.X% last Comparable versus sales approximately of in versus increased third quarter the sales X.X% the driven average third operating XXXX. weekly restaurant had Comparable average in in by X,XXX increased X.X% check, quarter during customers. decrease In increase we by

and well offset increase the by increases items. expenses. commodity Overall, in the cost third to to an with of of revenue by quarter was partially expectations and as points our cheese increased basis driven menu of at approximately as Cost Turning price during year. beef, inflation sales percentage in line produce, fresh chicken during XX% grocery taken a XXX XX.X%, as

Based basis revenue decline a expect quarter to points comparable last to on as as to XX.X% to we costs to in primarily as due increased XX% as teens of compared levels an as percentage at labor current market approximately restaurants XXX improvement the staffing to hourly high our fourth the Labor commodity inflation conditions, compared approximately year. XXXX. inflation of well our hourly rate

costs to levels we for of in offset of hourly compared remainder XXXX, to quarter in percentage fees the at as a insurance to of look of approximately at as continuation menu revenue This credit price taken an cost XXXX XX.X% basis continue and by to the partially and remain restaurant fourth higher during elevated to to costs, points X% level year-over-year year we XXX the expense Operating well expect as inflation increased card the utilities of was increases maintenance addition as year, staffing increase repair due on supplies. pressures a increases. as and to-go

advertising the Marketing increased reinstated expense revenue its as digital across X.X% the a to percentage XX nation. as points of company campaigns basis

professional sales a as leverage to administrative to points revenue occupancy $X.X Our increase of as percentage year, in basis result offset and from costs by by lower same expenses performance-based and well a X% management bonuses, driven third in costs last partially general $X expenses. million an in higher increase in decreased quarter million decreased an And the the as legal service recruitment on XX salaries, period fixed fees. occupancy of as

X.X%. decreased of revenue, basis G&A a to XX As points percentage

to income for net year. the share per compared In summary, of diluted $X.XX third or was $X.XX XXXX $X million the share period in $X million or per same diluted quarter last

was paid account, in restaurants million third diluted other $X.XX same share compared was and to quarter third period $X.XX $X.XX in leases. of charges reduction for XXXX, XXXX share quarter as continues million exit restaurants year. lease diluted net that compared closed the to or company the income as the million termination million same of or and in on diluted the impairment, in per incurred costs the holding per diluted $X.X During period $X.X as in last last due $X.XX to related or a well $X.X rent of $X reduction adjusted into to The out closed expenses we or year. a these impairment per share costs Taking the per decrease share and

our liquidity and balance to sheet. Moving

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

for XXX,XXX of shares XXXX, During stock common total million. quarter our the repurchased of $XX.X a third we approximately of

the $XX an we subsequent quarter, total shares million million, which the XXX,XXX third addition, program. $X.X In for end additional to a completed our existing of of repurchase purchased

the stock. Board program XX, approved to $XX earlier, to position, strong repurchase we pleased new are to that authorization alluded share Steve effective financial given As of announce million a our October our common with another repurchase has

outlook. to are be our preopening are annual and quarter. rate now between full range XXXX our now $XX expected Turning We the expect the million, capital and million. open be to $X.X effective new restaurants end fourth expenses expect year, to expenditures of approximately still between expected Net to at to to are we which $XX tax million Restaurant to to the XX%. XX% slated two million for open now of three $X

call I’ll that, Steve. the With to turn back over

Steve Hislop

excellence, for sizable Chuy’s Through long-term a an made-from-scratch drink the shareholder food we opportunity unique development will and of have allocation sheet. believe by value. thoughtful provide guests to high-quality, Thanks, operational it we and returns, our right driven driven Jon. We all, through the on our incredible balance our put strength offered experience continue at capital by with path Chuy’s

every in working Lastly, members to to of day. backbone team alongside being proud I’m our of thank all I the like Chuy’s. would them be for single

we’re questions. Operator, please for With answer open the that, lines questions. happy to any

Operator

you. Thank

be with W. We of with [Operator comes session. proceed line a your Drew the question. Our question North Please conducting will Baird. from now first Instructions] question-and-answer Robert

Drew North

the Thanks wanted to sales. taking Great. ask question. I about recent for

been and key XXXX? you sustainability the level sales the has of momentum And positive we to of the trends to the just and continued into quarter momentum August to maybe some quantify mentioned October look September? you what October. here us on drivers willing and But improve set balance those relative to elaborate as perhaps to You into for believe then drivers has are of

Jon Howie

flat the during And cadence sales give sales, it we that driving we those… about fourth quarter. Sure, of you X.X% to into But continued in then to Drew. August September fourth to at What’s has the soft and over leave and in I I’ll would in said, then those the quarter. continued we’ll say, that last into then as XXXX, of year. it’s quarter. and And kind July sales approved of X.X% they saw kind the of say just

Steve Hislop

the throughout as improved Number Also, about getting one definitely our being quarter. is be staffing. stores staffing out social in the top in far Those media two. would mind uptick we’re top The of as the as talking has our awareness. there

Jon Howie

CKO those are And too. before we started our programs, Yes.

So and those don’t are very have at new this results this year time. really we

Drew North

how Okay. restaurant ask or I inflation about in That’s relates helpful. guess, I as it’s above you’re still levels both XXX know XXX for the to I labor, currently XX% wanted XXXX you basis it thinking cards? while points are to the XXXX the to commodities to margin early, target And and seeing outlook XX% the

Jon Howie

we’ve going expect those inflation decreasing inflation some they rates. and quarters, the this this With we said would starts back as normal once previous and to in of are, kind achieve to levels

to those. progress, a XXX mean, see This could we might – achieve I as year But we basis this harder continues achieve. little did this think those to quarter, I be points.

the don’t we’re year this of to state far think I next we’re expecting X% there, end in X% what maybe as until figures thinking. inflation in from yet year and with or if X% as estimated those know inflation some to We As we’re to wait closer out kind the by comfortable know we’ve what of going seen well inflation, not. we’re X% analysts as I labor commodities.

in of results more that release probably fourth the quarter we’ll So

Drew North

on you at contracting just for to maybe part basket provide or to this some us. the or XXXX, on visibility then on comps the contracts share commodities? provide to point of And visibility fourth commodity just of the have quarter you fixed there. Understood Would maybe the help or some the level early Okay.

Jon Howie

Sure.

some do to fourth of contracts that quarter about continue XX% to XX%. to in kind to We recontract. in need over we have try We the rolling lock

about next beef definitely overall have third about our We that beef, pricing costs what our fajita is is contracted get of which locked over quarter than talking year. slightly better herd lower the wanted seeing as to they’re through X% XX% in today. we’re what at We

So the we’ve third got that locked in quarter. through

we of beef the in XX% through to time. end fourth We’re currently the – ground to still locked our try present just quarter. the working But of XX% on at quarter the commodities. in into That’s lock again

Drew North

I’ll back That’s Great. head helpful. into queue. the

Jon Howie

you. Thank Okay.

Operator

next line with O’Cull Please question Our from your the Chris question. Stifel. of proceed comes with

Chris O’Cull

Thanks. guys. Good afternoon,

Steve Hislop

Chris. Hi,

Chris O’Cull

what whatnot, My six the changes project first you that you question just but I’m to Steve, this to made year? you planning may you’ve just have can what relates learned management units or curious year confidence to or open and either give just to next nine development.

Steve Hislop

Thanks, if in we so. XXXX, Yes, you while. been XX we’ve I a Yes. Chris. opened on again, for think guys back working remember or And

is But that thing for five would So that. key we’re the have focused in we’ve states been probably there been us really the and on the done longest.

five, will to the and but talking Ohio. we’re What our of most Johnny? starting about be Texas, in more, in two am missing, did Texas, We’re those states Oklahoma, it Nashville, I we and expand with growth

Jon Howie

Arkansas.

Steve Hislop

Yes. Arkansas. and Oklahoma. Arkansas

So development. most that’s very of know those very, be We doing we’ll our very, well. areas

real updated that’s information. also have a Director Head brought Eastside We on Chris, of joined of estate new year, And mean, our us. – Jon we I all this earlier

look HVAC, on so getting lead it, So just getting it But they’re and difficult is sites find really and with looking has there. thing key sites pretty probably through feel as just stuff you, that, not it supply front issues and the sites, comfortable a like year you, really lot The we’re also probably I’ll a will and and projects. good. city through whether the that much in be the most daily of And for pipeline. as we’re our us chain that that as has to the on staffing hermit far the we’re to all that. far all been at I next it’s out it little equipment, of we’re stuff the clubs, type as and us getting sites, as plagued but the whether time the finding of but the of we through itself, we’re tell zoning be basis getting moving planning at up. of the levels coolers in it’s tell ground a continuing pretty the

Chris O’Cull

back it should be openings be the – XXXX? there just to be spread loaded? how Or evenly I’m Will pretty of going in curious this? is is any we more kind modeling

Steve Hislop

to Chris, it’s think quarter-to-quarter. pretty I to Yes, a out quarter-to-quarter going be, evened

So we’ll to balance per try out quarter. it

Jon Howie

Yes.

Okay.

in And up the some open – those of Chris, half, the pushed, we’ll ones that last into first then we steadily over are going pretty half. to be and

Chris O’Cull

mix? offers. And well just an get of saw of would cost these does margin, Okay. current items time limited mixed? these product be if to how accretive how to then profile have kind towards if the CKO And mix I’m to understanding the compared gross these trying people of types the you

Steve Hislop

We and are you Yes... very a probably mix question. Yes. And very, the some. try our the price it. started to by Great week just we hope menu. I ago. into and these current points Chris, similar a go week

in said menu. three you’re my quarter, think in the the see going points two current of specifically like would look and within I as forward, much in last I we very out of As year, call, our the next price move probably items three quarter four last to

the jump will something probably they We that second barbell little of more next if approach like sales The higher would wouldn’t be barbell a items year. starting The it, future, would menu be we’ll probably it half have the and a be then be one mix cost be order the see the bit priced, of will one similar. but in be very would very let that similar. that onto up approach, of in you probably people to

far not of go any sales as the major major I’m anticipating cost or So movement CKO’s mix as

Chris O’Cull

Chuy’s been And the have I’m you wondering company digital stats could marketing just may recent marketing share kind And have the a more digital one. on Okay. you received for year. how digital I then any receiving has on if and been and effective from lastly, advertisement transactions. of I’ve And most driving this just

Steve Hislop

the market awareness marketing, philosophy in of as be top know, digital you really is group. a the most mind Well, Chris, to behind of

So start just half. the really of only we’ve for no did it of news. that’s until was the at first CKOs, We kind looked top really been what have we except really basically, mind awareness there news

that besides needle So just we it’s really with now. is a and to little say of stats the there early bit give it you of sure making Chuy’s out the right awareness the move too

Chris O’Cull

Thanks guys. Okay, great.

Steve Hislop

Thank you.

Operator

with with the your Long next question. Stephens. proceed comes Joshua Our question Please of from line

Steve Hislop

Hey, Josh.

Joshua Long

question. Great. Thank Hi, going? my you taking how’s it for

Steve Hislop

Good, buddy.

Joshua Long

color understanding what as like level XQ. continued consumer here could through trends or the Delta, there we the have looks about the too forward. much talk into detail provide might whatever think those just XQ of year-over-year about that just high activity it momentum going been of kind Would be for and hopefully, the then appreciate have and just to any on third Omicron, that of I you that we quarter talk XXXX, any volatility things possible cadence other from too normalizing has to in don’t sort a

Steve Hislop

first Sure. pretty didn’t Omicron quarter December, really mean start last we December. by maybe or was till actually the week I affected and strong two that. really a of then had the

at pretty So we numbers are at XXXX decent or rolling – XXXX. fourth in when the you’re looking over looking some quarter

we a in have sales. the leverage, as leverage about of far definitely in that, though, little generally decreased As cost talk bit quarter fourth

have we there. As know, to continue you pressure

lot the XX, another operating XX a So is of expect fixed in then one the the bps line, XX more in over there in that. XX we And cost line. probably bps or I which in expenses, QX probably labor big sales mean, cost has the

XX about operating XX probably in bps to there’s so line. that And

So your leverage. those hopefully, then that and as are question – as far answers operating sales

Joshua Long

called the of the Very when lately? taken relief? inflation components we the the a or heading just Is you’re a of you’ve bit some that pricing seeing are the XQ, are into for here moderation you of basket for some some little helpful. And that there function there that out think about inflation that of

Steve Hislop

almost through like seeing that talking things that’s some in are and and lettuce but little relief tomatoes and by a the and weeks hitting we is offset And like all crop they’re now, eight hit about think well fourth as are and right last lettuce that over being will was by XX%. quarter, I Well, right chicken as what all-time we’re up experiencing highs now, Florida. tomatoes the hard that, they about in continue

kind those offsetting So that those of some things. favorable are are of things

Joshua Long

And helpful. delays just bit little thoughts there? support sort or as unit delays those That’s development. you unit to that, some with house. back pipeline, and we a then for time is how important the front any the are labor to in Just last to terms of that there silver growth or lining we’re that there new the of a either one you of does inflation about the key me, also labor more shaping of Is for environment up in some house permitting supply of which some talked extent, flexibility building and give pipeline of in positions think chain about impacting that steady that longer-term is that

Steve Hislop

Yes.

we’re XX%, well you’re ever about we’ve pleased, script staffed in mentioned that you this where the I’d in hiring. XX% constantly never say as all into moved staffed our so in units, the always very getting quarter unit, We’re rather to which I

the last comfortable with comfortable quarter, to starting pretty really feeling run we’ve restaurants we’re the over staff. gotten and So proper our efficiently very very

say that something don’t lining. know So I with silver I look if it every we’re just happy it’s we’re could attacking a ever way. that day. pretty at single Again, I that’s don’t that.

Joshua Long

Helpful, thank you so much.

Steve Hislop

Yes.

Operator

from question. comes the Brian line question James. next Vaccaro Raymond with proceed with your of Our Please

Steve Hislop

Hey, Brian.

Jon Howie

Hey, Brian.

Brian Vaccaro

during when it to X% Hey. X.X%, you hear you. was taken Good I think the quarter. the to remind Thanks evening. guys. increase us from X.X% just Could was third price Good

Steve Hislop

at quarter, of beginning the the third Right Brian.

Brian Vaccaro

Okay.

mid-July, kind So to it’s something… early of

Steve Hislop

Exactly. Yes.

Brian Vaccaro

of metrics the how you restaurants? progress I what seeing sort you’re on even result it’s you’re perspective training sort Any guest labor, guess, continue Great. a provide break levels of culture color key interestingly, new and your are trending Could turnover of you, and members Great. additional on more to kind rebuilding staffing hear within maybe a from And just improve. as of perspective on making that? more

Steve Hislop

we’ve Yes. always casual The very especially to key us is little very compared had for the turnover, dining industry.

our management been talked right most mean and the employees always us Again, and that definitely the that’s for around hourly work turnover work XXX%. we think is XX.X% worked. I and about us, and key right our is has we is and what for us. approximately retention was a turnover don’t range, around And I retention. our key for keeping turnover on We huge it’s on been thing XX%,

Brian Vaccaro

the frame normal that and help currently these There’s of of really I sort And dynamics playing but are the on seeing long experiencing how is seem in the There’s Okay. of me, utilities on you repair running. next companies recent over far we’re how quarters? the each, companies different just dynamics see for maintenance a one obviously to and also Can lot be of couple last maybe guess, above some unprecedented you out a within lines and months. on levels of lot pressure OpEx line. other

Jon Howie

Yes.

probably alone to XX XX XX has been and I at more think when volatile, the then or that’s to you’re another close bps. repairs bps. but that’s XX looking utilities And obviously, been maintenance,

Brian Vaccaro

And year-on-year would is sort that giving that levels, sort versus be a you’re basis that those Jon? pre-COVID Or of of points…

Jon Howie

accomplished out there. strategy And you is because is last had years three recorded that our bps fees XXX over given say that over when And what know margin lot is that’s of the back that that’s looking neutral bps XXX And really the of I’ve expense [ph] to But compared we’ve year-over-year. finally related to is about to our we’ve a you’re really looking, we’re at you XXXX, would operating that. to you’re delivery XXXX. I up in door. cut get

delivery, we so obviously, the prices for revenues that And third-party increase those our fees as as increases ultimately well. or

Brian Vaccaro

helpful. All right. very That’s you. Thank

Jon Howie

Thank you.

Operator

comes your of line from the question question. with next Please proceed Wedbush. Our with Nick Setyan

Steve Hislop

Nick. Hey,

Jon Howie

Hey, Nick.

Nick Setyan

guys. Hey, Great quarter.

couple of The or was in the pricing actually was a Or X.X%? Just it X.X% clarifications. X% quarter?

Steve Hislop

about July. – slightly just in two then we’re one all-in our and pricing So X.XX% we’re in increases, price one with February

in to So is the today about X.XX% X%. menu pricing

Nick Setyan

And as is that’s it be was to today in QX X.XX% to what in was – that going What QX? X%.

Jon Howie

and That was in in QX what was be all will QX.

Nick Setyan

Got it.

then pricing And Okay. next in is QX… the

Steve Hislop

will it upcoming be Yes, period February year of the Yes. two.

Nick Setyan

Are you What’s thinking bit about everybody first across catching know up. just patient being and a kind inflationary little your industry bit forward? everyone it a in this mean philosophy more pressures I the on I is was aggressive more of to the offset half? little going now year

Steve Hislop

Yes. we and end we definitely needed and we really going value, of up We that our great our the feel at right – doing markets, done. continue if to. analysis feel are year to our will competitive we pretty through in everybody all look some have the about else through Right now, has room what

info. deal And for a want part we’re a is don’t leave that for as want but key so get we money key table, that’s But to don’t XXXX. wait right the value us we on through we to the all now, move going until We us.

on as doing what So great I answer I don’t I’m as all in. the have you far research planning until get for a

Nick Setyan

was That when about quarter-over-quarter, that talked you sequentially not Jon, numbers the year-over-year? And deleverage right? earlier, was

Jon Howie

had if a we kind quarter-over-quarter then. was what leverage Historically, from to that QX. Correct. of in similar XXXX, you back That’s standpoint look from back

Nick Setyan

much. very Okay. Thank you

Steve Hislop

Thanks, Nick

Operator

Instructions] with from [Operator question line of your Please with Todd next comes Benchmark. the question. Our proceed Brooks

Steve Hislop

Hey, Todd.

Todd Brooks

Hey, thanks and to guys. to good talk you

tag-ins Just a of couple here.

of were you unlock remind a staffing something in same-store and the an hours. exclusions about position for tailwind don’t should as kind that can and you what sales if a it experience disruptive you had through have last year as QX much nice staff was? driver got you’ve Omicron us to we in knock know staffing a wood and walk same-store menu what operating Omicron but QX, to levels looked momentum, what like I’m be being much thinking QX, got talked the the sales? improvement just better as constrain to You QX I wasn’t

Jon Howie

that’s for and kind quarter. Omicron in mean looking I first second what the period. Yes. of of Most the hit we’re in our first

to remind it staffing several you, to down then. And think to we to delivery just But close because had so had to that just go only. closed down our are there close about we fat was restaurant enough down was stores what did I levels, that to we we XX% or XX% only probably, was the lost

So have we actual fingertips, my that. fairly I can’t significant. at have don’t – it that. but can did many get we I days how you was lost, I it – it’s

Todd Brooks

seems that by Thanks. far Great. you And pre-pandemic as of end now to momentum. then being system-wide my lot seeing the I and newer out last maybe mix quarter. about are we operators stronger of than out? as the lot one What you rolling a catering been hear Steve, for is, caterings talked rolled of have this you’ve markets a percentage in that guys But of can talk trends. about uptake

Steve Hislop

quarters, percentage the over for two Yes, mix. of the last us it’s up if Jon, get picked and you’ll it’s Yes, continuing.

it sales it of uptick. do for about the we have can through We’re really that Do percent ago definitely on you us was holidays, excited seeing we’re on what right to… obviously, the but think the good up year holidays, a an

Jon Howie

X.X If I sales. of correctly. remember

Steve Hislop

a XXXX, which a increase Yes, is nice over obviously. and ago year over

Todd Brooks

the great. quarter. on Thanks guys. That’s Congrats

Jon Howie

Todd. Thanks,

Operator

Capital with of Markets. proceed the your from with BMO question. comes Please question Andrew next Strelzik Our line

Andrew Strelzik

questions. just understand I the comp consumer the Good environment afternoon. is obviously, Thanks just kind – first anything for there accelerating spending and speak the is to one what My taking you’re just way think if of you could trends. seeing, might you’re you’re and that not? be are anything the customers that there the that? creeping anything Obviously, seeing like menu just promoting you value or regionally or your the or that treating in But value. enhancing either But

Steve Hislop

of it A We overall, less little and because really mix quarter a little bit moved a in beginning might the the bunch alcohol We with seen patio change, that be And of of as Texas. the as goes. or whole whole sales. not as difference. there’s whether difference. weather lack haven’t far really demographically as And bit incidence have a Menu the is in regionally, anything in of no. a no seen especially period. But sales weather hot it on really

During worry back But definitely mix few added did a the in. quarter, because items from going. about of quarter, any nothing we where that’s items and see we the the added that change third the some back you of toss menu would in

Andrew Strelzik

you time? Can on it Great. of just on the the your thinking talk that on about driving seen think as catering just more that taking about touched kind has stability pricing up talked Okay. just macro dine-in broadly and Obviously, there. has And where Or evolved view about business well. evolve And you going year-over-year. sales stable you’re you forward? how on just color as off-premise side, you we’ve of on on over delivery, kind changed mean, as maybe off-premise, I then ends percent of a the and but more any broadly

Steve Hislop

Yes.

single And we in range. every move. million felt XX% last said, year, off-premise before, we’ve company. before in that per mentioned $X.X that we’ve over been in to to million that’s been that As to we the were so our the And week pandemic, X.X week amazing for and everybody years XX% in we’ve that sales to-go the $X.X to always continued has as sales consistent

last right think finished XX%. around quarter, we I

move expecting And the the I it. to always inside four doubled almost dining them that we’re Jon level we’ve consistently we and out sales it as room and walls. So increase back said

maintain in to mid-XX% going We’re range. low to the

little might we that catering. really caveat hard roll continue if on is their a to we work really upside The have out can and on

of convenience, to we to going still right pretty much convenience. So we’re we’re our casual there, huge. key our it’s the our always And are. That’s consistency excited pretty easy quick pillars, goals that’s of And is and at key that’s one or go. thing thing. where you’re and we’re It’s that else get anywhere the looking obviously as go think that. the And to the a about

that about our part continued excited a it’s pretty at. exactly we’re business as of So where

Andrew Strelzik

last guess, your markets the the you’d maybe becoming to the for well. discussions I those go is whether conversations have challenging. Okay. kind me. they still you at the get those kind evolved how limiting Thanks. of one Those it’s tenor that know Are just takes getting the try look as the out of of evolving now XXXX just puts some ability is that to further Great. the been the commodity And plus or like? conversations curious locked. over I commodities and as easier? are – I’m year what have Or of then narrowing? are prices and last

Jon Howie

to conversations Well, vendors want rails out. to I don’t the question. tough go with great right I of the continue mean those have that’s because mean, A a we far too volatility. lot

And so we’re continuing to have those discussions.

pleased, very beef third to I have the earlier, the through We’re like out of said quarter. gotten heat

well. strive But fresh to we’re as tough, product, have know, again, we you as again, so that we’re, and at working you’re continue but obviously, our those, to to it’s We our can’t don’t continue because mean in a chicken, lock in going beef right. I and to produce, fresh we XX% lock And level. to ground that’s those are on XX% product our get now.

Andrew Strelzik

much. Great. Thank you very

Jon Howie

Thanks.

Operator

to Hislop There I’d are the to for in further questions over remarks. closing the no Steve call queue. like hand back

Steve Hislop

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

Operator

this does conclude your you today’s for Thank Ladies gentlemen, participation. and teleconference.

this You a disconnect may lines day. have and wonderful time, your at

Chuy's (CHUY) 3 Nov 222022 Q3 Earnings call transcript