Brinker International (EAT) 29 Jan 192019 Q2 Earnings call transcript

Company Profile

Participants

Mika Ware	Investor Relations
Wyman Roberts	Chief Executive Officer & President
Joe Taylor	Chief Financial Officer
Chris O'Cull	Stifel
Gregory Francfort	Bank of America
Sara Senatore	Bernstein
Andrew Strelzik	BMO
Nicole Miller	Piper Jaffray
Brian Vaccaro	Raymond James
Robert Derrington	Telsey Advisory
Peter Saleh	BTIG
John Ivankoe	JPMorgan
Jeffrey Bernstein	Barclays
David Palmer	RBC
Karen Holthouse	Goldman Sachs
John Glass	Morgan Stanley
Jeff Farmer	Gordon Haskett
Stephen Anderson	Maxim Group
Will Slabaugh	Stephens

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen, and welcome to the Brinker International Q2 F2019 Earnings Call. At this time, all participants have been placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Mika Ware. Ma’am, the floor is yours.

Mika Ware

Thank you, and good morning, everyone. call International earnings fiscal quarter the XXXX. year to for second Brinker of Welcome this be Taylor, morning Executive call our Leading will President Chili’s; Officer. Officer Wyman of and Financial Joe Chief and Chief Roberts, for on website available quarter and our released this at earlier Results morning the are brinker.com. were

make and is operating first Joe our to related and Wyman comments As performance. our practice, will prepared strategic initiatives

open call questions. then for the will We your

Harbor please comments, me everyone regarding let forward-looking Safe statements. Before beginning our of remind our

this non-GAAP insight which items, be described the certain not discuss call, and from release differ within cause factors company’s and certain may to XXXX. management call, statements subject SEC. in call Any Such provide that Securities should anticipated. our on those All of I entirely believes its the items the the Private are will could ongoing facts. actual of business Wyman. of the to review the considered with are results include historical Reform the During uncertainties risks based statements Act risks to over we Litigation course, will such which meaning And and more such of morning’s forward-looking with on the that, management uses And financial company’s turn refer filings to operations. in into press commonly measures may and uncertainties,

Wyman Roberts

everyone. morning, Good Mika. Thanks, right. All

important as third to into continues X.X% business, set performed that sales dining we takeout a of Market the year Casual our Chain record-breaking Dining with the the edging industry up well. comp single X.X%. in the the by of comp Brinker delivered of day us give quarter and with at traffic XXX old of across sales including earnings was named with to the you the as this significantly a executing saw for traffic sales our in the fiscal to in marks and at results will share both category better sequential adjusted comp both getting and market and three enabled getting year, business gain that has positive better. our strategy, grow morning's pleased fifth momentum we with this press quarter share The outperforming our release positive on you X.X% the continues for per across in Chili's territory quarter improvements for keep momentum the a progress sales X.X% our last also a brand catering a day $X moment. with during As gap busiest sales traffic and positive We're guidance XX traffic and was keep specifics $X.XX. restaurant driven of the driving than raise more our the our the QX industry. in Virginia some of elements holiday the positive the Joe quarter America's maintain All solid and old business. quarter at year more Maggiano's and tough brand aspects banquets season competition nearly room $XXX,XXX to And the during Tyson’s Maggiano's speaks recently the the across quarter and strength sales Favorite Corner, Maggiano's This brand of XX million out more at X.X% brands up QX business. consecutive comp than up power Force by of solid location. records positive

is value goal location. several we're and takeout, it's airport At execution. for We've platform. on momentum sustained $XX while future. Maggiano's growth refresh. open operational and talked of offerings hit. we with lunch, about the explore We just future our to margins ours for a most as and intent to the it Dallas-Fort our it perspective. And our to sustainable new that's for solid. later been the It's compelling franchise Chili's, of driving so is key dinner, by keep because full need high-quality are relevant year, areas. strong. our of of our second Worth our menu right knew excited and consumers specifically a foundation first well into motivating look The our platform It's we're and consistently portion guests. to this big a execute level return in the takeout a platform The is simple at our strong operators and location products our at is value and a to the at are you platform offer and fresh We preference a optimize traffic improved value are we'll Three being meets from highly guest we its our that opened and flexible driven satisfaction factors, As as the enough importantly potential needed very our needs to airport foreseeable

industry relative the best. some food are our fact, to the In margins of

check rise support, traffic The business. is and execution great easier guest experience takeout Chili's the of better curbside. Consumers a by with more sales seamless take can't as any from for menu. packaging, delivering pay meeting QX, love up, improvements The and Couple grew or in driver them guest in a second that needs you big to experience. than e-commerce driven variety well to-go affordable in experience. give pick significant to in we're with more out, we and as our XX% We're us get takeout the our the effective -- the order, to-go marketing our

of leverage still to today, business plan XX% that. we upside at takeout So, of plenty believe has we and our

guests most operational perhaps bringing into our our back momentum importantly, is restaurants. and Finally,

will right With efficient back. let traffic we higher believe by metrics ongoing execution quality addition we much operators the with focus Today, seen better the takeout impressed have been to platform, long-term growth effective evidenced delivering in and are business, is significantly and it best a sustain has momentum, team's even their years and traffic for feel getting time, guest, sales confident XX it have best Our guests volumes. keeping and lower ability on and innovative as share. bringing We foundation and our our us take thinking growing we've our rate to results for strong marketing impact our seeing same simple, never are of team guests We performance Chili's. levels. I'm the on compelling deck operations improved and we've in marketing we're At them some with to at seen. strategy telling the commitment to clear the our ever our to members to the for these continued we're guest value operational as every attribute commitment guests. that as continue drive and their by today,

strategy, Additionally, we've and share. All have these taken Ellie future members depth and freed-up fortunate excited the leadership, to and grow This foundational the we a has ready we're we actively they're future facing Doty, as lead at grown positioned can to capitalize to to into uncertain business industry take we're into grow helm the overcome go bringing own of ways team the look marketing. move to to forward. addressing the ideas about to with the truly confidence. facing near database to our team new elements his traditional there's are visionary the term in has longer of and pursuing strategies. long-term longer six table. loyalty we term the on our Under industry know the opportunity business. an significant strong to which of and challenges what team pave over going sight to comfortable Provost to connection and continue disruptors growth makes our the of and our digital marketer upside with create We're And to line and us is both leverage this big big lean talent talented Steve our in business, way Chili's on that million leverage her our all-in upside media

and strategy delivering restaurant sales for the forward really systems best-in-class great help people each getting excited and making This what better hard traffic guest our day operators continues business. of words business look feel to those shifts. counts every and is great to worked guests. industry for opportunity grow And like the doing the have we team we're share every this As who continue about are gain our and in our we’re abundant take future see other to our holds to just not special. outperforming that team our commitment We to operations to passion focused living and Chili's and that and it's teams to business growing as Maggiano's our and to traction, support thank I'd and the demonstrate on us;

walk over Joe? you to So some through the turn now, to I'll call numbers. Joe

Joe Taylor

Hey, good morning, thanks, Wyman, and everyone.

let of annual some highlight Before moving previously particular performance some operating your provided the questions, call me aspects our our update guidance. and of to quarterly to

represent marked results execution share growth comp restaurant and morning of to driven is GAAP quarter. its increasing positive the with a comp X% traffic. for traffic also dining progress $XXX by X%. Brinker's topline total reported X% quarter performance. the positive sales this to further bottom-line our second of to and million traffic sales close casual X.X%, grew over operators, Chili's These anniversary sales of with the for and X. growth for launch The strategy the X.X%, in topline company of industry results focus one-year both Central to continued quarter this improvement in market the our represent revenues the our the by in for gaining of

sales occasions. dinner, in a New During well the group and quarter, important markets the and peer traffic with comp California. England sales as its both to as Comp were in for country GAAP particular of weekday maintained Southwest, all and in positive strength both and lunch the weekend regions for positive Chili's our and

offsetting Chili's grow XX X.X%. reflect net results mix. points of the efforts We off-premise sales, check-in of balance net in in year-over-year Remembering over price traffic, expense, dine-in basis comp both; target with sales continue change is price close and comp positive Chili's amount an price with negative year-over-year to XX%. remains acceleration growth to-go by to impact similar quarterly better also to menu just our underlying a The impacted our to of

also the combos introduced our reconstituted three-course Chili's quarterly $XX, on two; and the value the brand of in sequential menu sales mentioned overall following X.X% throughout positive improvement meal, a call, the again effectively positive strong Chili's supporting our the quality in the month each we positive introduction, performance the around quarter. for delivered on-menu Brinker a $XX to comp played lapped prior role Chili's, October early offerings to delivering results, quarterly meal comp sales Quarterly X once holiday year. and Like menu in for quarter. last build new Maggiano's the experience sales the this As a performance. lunch similar

So in the incremental effectiveness our was Wyman remainder are us business, offerings consecutive mentioned the quarter the gaining topline and further for coupled as sales second of of we comp Brinker. the fiscal of sequential the fundamentals fifth with traction grow the improvement We quarter the value-oriented capacity believe we provide through our year. and of this marketing the to move

margin restaurant Our basis year. was of fiscal to XXX reduction the compared XX.X%. operating quarter when point quarter the the for last second A

Let me factors financial it which in strategies. combination are as of is contemplated and our of operating a unpack change that most

to related the XXX discussed recognized XXX our point in of impact margin moved basis bonuses operating margin as manager restaurant factors point the the value rates offer. costs recognition resulting contributions, quarter points, other have business increased two guest into margin basis change cost level labor that that margin pay. we by sale increased into The performance a of response We and transactions to X%. hours XX translated by change. favorable to in and franchise from happy offerings the in through franchise impacted basis did of now basis revenue component Those revenues. under higher outside sales are back in previously our XX just Restaurant the leaseback our hourly restaurant point a cost approximately and to impact Improved wage increase represent also advertising incremental

restaurant can increasing fluctuate million In year-over-year to addition, points. reduced by improve level of XX with flow-through do increase and the levels. we margins focus basis our quarter second on $X We see insurance claims as significant which managing a opportunities to employee operational line experienced quarter-to-quarter, guest top expenses in better health adjust

As we further higher impacting move third we quarters, fourth margins. leverage our into volumes restaurant operating and anticipate favorably sales

our changing operating of to to points brands, we has for our several I the we've call close August are restaurant on That operating to XXX to in guidance increased the being Driven made basis expect to we our While range, following X.X% restaurant estimated performance the points by momentarily, be in margin upper XXX we upward guidance. of of now full X.X% are a annual guidance decrease year revisions the margin provided revisions Revenues to stronger to our review guidance sales annual our top The Brinker to said, basis comp restaurant will the not the annual X.XX% X.XX%. for the guidance be margin. on up percentage. fiscal operating do end line year. to positive growth the decrease

$X.XX adjusted by earnings be to XX% range Our share annual between we rate of increasing range year to our $X.XX are a guidance is XX% to and upward fiscal $X.XX. per and effective tax estimated

quarter the beginning comp that notable we were quarter the of sequential sales last combination. strategy experienced exactly our and later, current second commented we for implementation One that traffic-centric During was year we've believe year, growth of our call that and positive attainable.

positive foreseeable We strategy believe ability continue to future. for results has the to the deliver this

these our Kate. Let to With our our in working to deliver said, thanks call day team every over positive Wyman's Kate turn restaurants and I'll Dallas Q&A in business. echo me the Thanks, also our here period. that results to moderate for members to

Operator

today Our Please from affiliation Instructions] O'Cull. your pose then announce Chris [Operator your question first coming is question.

Chris O’Cull

I expect with year-over-year why this, comp be the better I than trends decline of apologize at the restaurant O'Cull Chris the missed but in company It's a morning. range the to Joe, does end higher been margin given Good Stifel. the if expected? little have

Joe Taylor

Again, we're talking operating margins. about restaurant

all you investments business making our make the the through of impact when we're into down further that rate. P&L up look the that the investment of some at way do have the some and back for area. in tax So We

tax So, and growth rate you line reflective improvements P&L improvements that in see you're directly in the top seeing in of leverage are strategy.

and Some tax strategy of come leverage costs. that on the the the other opportunity that the of to credits from fixed side some

we second into on sales business back and improvements So move we leverage through make move as continue of higher margin. volume, the as half the the will to the operational

So, range it's again, at that as to be we where today operative. we business and our beliefs see look guidance heading, the around still

Chris O’Cull

address you programs describe the controls assume that looking of of I you industry programs the of you're pressure have challenges, mentioned inflation. back will impact And in tighter labor have to you the and year? expect half wage some means which cost or some the that to cost at most think some the the you Can these

Wyman Roberts

Chris, Wyman. Hey,

the to I that we're impact simplification allowed think seeing focus the second we're and P&L. quarter stronger and thing a it operators through the our just already seeing deliver biggest has is

and strategy the see operators much throughout even more With the of quarters. better, have kind our stability consistent down to starting now we're that get we of the their delivery allows engaging it P&Ls several now to their in cadence right, quarters, get systems for to

the model coming but the our a sight got those and the lot I programs we and that hold on, So, intact is just other what's a we've a bit the thing. lot thing are ourselves more that's can business like can frankly biggest not biggest little confidential will to we of they operators help that think that changes. that operate clear mean working we do of line mitigate, so of on we're gear keep with to probably

Joe Taylor

think to -- labor I specific okay.

Chris O’Cull

Joe, Go sorry. ahead,

Joe Taylor

but on mean that's to that second the based again, that experience sometimes areas see something it's every working year. labor. quarter, going that systemic just our margins, with I delta on I other you all in we specific with impact you experience employee in seeing of of this We're mainly a insurance a when right perform saw is the and we're million quarter quarter impact add, rates Clearly on $X health -- fluctuating second for have not strictly can cost expectations quarter-over-quarter labor, Yes, wage Chris, forward. an and in the is that's based necessarily line like to claims. did,

Operator

Thank you.

your next Our today is your question. Francfort. announce Gregory then and Please affiliation coming from pose question

Gregory Francfort

I you What's menu? the within can Hey, where talked the you One, it's think as made seen on the the pressure margin moves the at you on have questions I want kind to moved and that on you, being had that quantify just Greg three about from Have much stabilizing the rate that the preference Bank for then you of it two how was during longer And trend America. quarter? the been $XX menu. maybe term. right quarter? that of, you

Wyman Roberts

yes. Hey, Wyman, Greg,

we is menu have So, had in now we for to for value value this when and there's our that written. while base $XX talk quite embedded the about we've with again, platforms sure a a really three make desire is these that

For two combo then quite many, a we for we while for years And -- $XX refresh. many was a lunch to platform for platform. wrote needed just our the and value years,

And new for beauty us. for in it across three it platform that and as dayparts. very all is of to so we what $XX, our of with bring it we offer works has be The a a compelling proven did

need to the perspective to messages. multiple be changes then those impact with with a not some marketing offset from out there platforms. we're And there's of So, able other a now that to

combos $XX now ago to are two couple for at $X. now at used is $X years two that of So, $XX, lunch a for start

it traffic hasn't driving much the pressure has kinds of platforms. a more able provided sales through those our -- for still can obviously, compelling guests. in net-net results, alternative buyer those other been to changes we've So the through mitigate And the of of cost change much see to you

Joe was XX higher-cost it that was -- of that that number or mentioned Mika in the sales mentioned basis… think I XX%,

Joe Taylor

XX basis points.

Wyman Roberts

points. basis XX

cost Given mid-teens increase traffic, our is check for doesn't and anyway. very to sales a you the of again it's know much low because The great. you're -- in low pretty against is it's which maybe fact beverage as that's price average, there anything, on going a to working need much the significant that takeout. some beverage breadth trade trading incident against against preference in the And has implication that's of something that's that manageable lunch that impact. a component is The $XX good point take-out have us, pretty

great have implication. doesn't our for crate So really as it's value guest’s a much that proposition

a the have understanding But very look we sales obviously you'll a cost So at good favorable. lead industry you pretty as in just giveback. of see of the all margin of our It's when component, cost sales. we

And that's we're manageable. we But to it’s doing bit much not so it's back. And little an very area some room – a that's -- had give that.

Gregory Francfort

perspective. you. It’s Thank really helpful

Operator

Thank you.

Our question then Senatore. coming Please today post next your question. is your from announce affiliation Sara

Sara Senatore

half-empty, guess have a margins say of the I the the reflection value Thank customer, perhaps just industry. the very question you. I food guess, proposition to and attractive you about sort what can glass I of follow-up margins to your at risk less being a food that margins may. the a to versus Bernstein. And does proposition. of The sometimes on point question have I value say if be do high

follow-up, expect so, just And going please. would forward line? so on pressure the structurally to we then COGS a And more see

Joe Taylor

compelling but also there value like putting it's is Hey, of with price aspect Sara, when you match you're putting guests industry know again think the point if on that are an that's of out $XX. balanced a putting you’re for our in for there, bulk COGS you’re example proposition, important a charging. there what And X if and with value-oriented it's can the And we're offer. obviously Unmatched, don't many what eating it. know out I a the guest, you're I I a obviously that but offer, think not

strong probably sale. to maintain continue the we good be surprising I to with is P&L and across that do and thing cost this margin, think that's the the can especially really many to

in is is So for and what it's, brand of food improving what combination of that ratings discovered you pay our our industry. at And being that's X that. by of one just lot Chili's do quality of get a $XX as we is the a actually and we're you proposition a being value with that's what offered. committed to know the of we're consumers positioning about strongest the the for Part value value

that that approaching we the first We've offer reduce starts in and items lot are is was those consumers invested either message continue a the heavier that require that And to actually change the to the sustainability true. when of will but and or so is of on return the seeing experiencing to think users, now in to reduce seeing what portions users quality of that perception to their product mix out we're on exact with we opposite grow. started of the drive some that again, with intent coming that that obviously were like the those from offer invested it put and now So your We’ve traffic. we're and to assumed product. to there of it us guests going lighter quality the we there always initial

within and how brand. So platform whole look the the that's kind at of the we value positioning

Sara Senatore

perspective? exclusively traffic good a weren't using just just there coming profitable in trade or understand value that was to menu. traffic to can retaining up sort which versus indication to that way into steppingstone of just using be and – them the a a it Thank them in extent of which at segues to increase more menu you from have a trying Do that's drive to actually call any this but value frequency, either using to And your to some follow-up ability question my your Great. point, about customers this you. extent at

Wyman Roberts

this trading looking absolute in right? the at thing the that's our when mix, big guests bulk offer. an preference of you're again offering just Well, So and at Sure. like low-teens not we're into is the looking is

thing. So that's the first

obviously, well there opportunity risk have great. – selections. advertisers. people selections propositions at it's on value the as through as add very and just Margarita every not additional Obviously, isn't for there that's to then, looking as about whether the excited we're we're our And So we

So, to priced yeah, sure to are and to also higher some market and merchandising some but regard operators that looking that even making that is of alternative. that to marketers maybe move items, a our people value those move for higher there really our items job consumers continuing do great people with and maybe lower-priced component for – margin

Sara Senatore

you. Thank

Wyman Roberts

Chili's – And menu. that's multiple of selection the beauty the It gives the ways. different you gives you value in

Sara Senatore

Thank you.

Operator

Thank you.

question Our Strelzik. then announce next today your is from Please affiliation, pose question. your Andrew coming

Andrew Strelzik

BMO. Hi, these My you the either Chili's seen top I a those price taking they're have heard opportunities strategy you've good But about types of far. on historically margins. shifting from some a the have a of Chili's guess, extra peers near-term reflect from for your first I some questions. or protect derail morning. want perspective two to be wondering, line that the certainly to at price that all? or And have momentum margins in I the value-centric going how do you pursued guess be line didn't could to so and maybe thought more a discounting to I'm I'm things assuming benefit that from little one, away we’ve taking protect to that of top

Wyman Roberts

think, you at our look Well, again, margins I overall. want to Andrew

an in a in I on their it concept little not which is on of and bit going LTO there's be is not is sales. very of some you context, probably high, lunch promotional offering if baked value to early value commentary with strategies the has a about. right? strategy on everything So, industry price, of the a well strategy overall a unlimited that what's – cost kind Our compelling for the dinner an especially then their margin out there you a fairly and everyday bad what at proposition we're got put need a say structure low very that a will at strategy because overall around look menu is the strong a at in price, talking compelling compelling very that's – very menu dinner shouldn't is price, their when

compelling just kind getting similarities absolute value a of more they giving sales are the barometer nature industry day, I -- breadth and the we're will doing what that continues that determine the differences. pricing driving and margin And hey in a it of target. and points intact, to of where leads. how It's of about too platform this and is keep a cost for traffic. focused to look terms then starting By see price for talked at to also we on what the there I'll that's now. their long way structure think We continue in So we're end as but people what look our they at -- get you're are to of

they I haven't slope -- are people You're a and a while. that in hearing down when people but that, talk think And slippery that been talked they about think rationalizing that I slope. comp are sales growth growth with negative about we've traffic that's

One continue forward. experience. growth we're kind without this now. deal talk don't not with to question. We right some you with we So, That's traffic very that declines? continue traffic How to to about isn't one of long ready interesting drive can a sales want

Andrew Strelzik

you sense. second makes marketing, Any And has It forward more would not helpful the the a be that the or going accelerated. that marketing be to to That see just I very question and Did or color. the trajectory very consistent? said strong on you in plan color is on rate change November. in it helpful. when notable around guess in obviously which post in be is my going growth I is and turned acceleration the you believe, out And been is was to-go an on impact, that going

Wyman Roberts

again without these that. Well, works It three the environment for there's $XX first adding share to additional question that the outside like us about of you look -- are the is drove base reality And successful. that weight to cost question other your quarter And menu probably that cut fairly obviously, for the on going want and to we in the a at. The in we to of media answer beauty us second of second in platform the answer strategy P&L is sales to talk we But and to offer tells in to-go margin opportunities results. yes. allowed a is don't continue compelling a offer your we're significantly up weight. again that now

the So, new the a having lunch, excited across is something into. create message, a that's to works strategy those that that about and separate buy without it. other compelling to having you without campaign, to marketing And can a to-go of is leaning that we're dinner, we already specifics add heavily now media the beauty message and for if will,

Andrew Strelzik

Great. Thank you very much.

Wyman Roberts

Andrew. Thanks

Operator

you. Thank

question next your announce Miller. then affiliation, Our is pose question. from coming Nicole your Please today

Nicole Miller

Hi. questions. of quick couple A

In please? would little talk same-store just to you terms Chili's about the when same? Southwest, within the better specific the about NAP is what GAAP for performance, there regional bit regional sales say you performance a Texas to being of the the was specifically of anything being Texas And or

Joe Taylor

there both look market great we that is across legacy a accelerating the as in And reverse was was the notable again, and obviously, the was yes, In for was X% it Southwest traffic, and that strong range other NAP GAAP you're there. performance for traffic. the indexes. market, market, to Texas, in and again, the at -- differences GAAP order, us range, X% comp some of

Wyman Roberts

solid And mentioned The the of strength performance isn’t of is our up. comments his to gaps -- competitors driven the country in Really Joe add performance breadth the by seen of will we've we've pick and our I consistent just growth seen breadth. across Texas. and really. But as

strong example, lot quarter aligned interesting about look so strategy. for an number If It's the an comment as with franchisees' really in pressure you're organizations who this our our are at again seeing and around franchisees, excited you margins. of a franchise

how have We through that very indicator I Franchisees are And, our of just none P&L's. their happening strategy again, of organization. within the happy. playing out is an think

Nicole Miller

you door the There's country. sales a you a going then the lot That's lot and you very simplification to employees do And the And helpful. level store Excellent. in the in-store lot the about, focus. off-premise. thinking then have that things of do terms the still do across incentives? there’s and just of How want you out a align talked about

just change, you. or focus your that is Thank So remind how if incentives curious you’d you've where regard? I'm in

Joe Taylor

to the if we've that traffic driving will we operational is whole around again Chili's. about traffic. been organization made kind KPIs The at target, of And the biggest strategy around level the or aligned change you want

we track And to going profitability bit labor line deal won't into daily around we bucket our And sales, guest balanced year. that's and much a But thing. are forward. the basically and quarter clean so that there. good was and the faced those restaurant with manager bonus around something again emphasis last that metrics operational our something of with around have paid and to that's challenges a and we that's much fill on clear bonuses how And that have we've level target and this of now than that this our higher up we experience more year this visibility – really or back put performing. one now at operators And targets little the they're

Nicole Miller

you. Thank

Joe Taylor

Thanks, Nicole.

Operator

you. Thank

Brian Our your affiliation your from next question. is today question post then coming Please Vaccaro. and announce

Brian Vaccaro

Raymond James.

raised negative highlighting? intro on dynamic on average a questions with about I expectations until And do your you then expect follow-up comp mix X us expense Joe, few perhaps the a versus really comp lap guidance drag think And of the half, $XX, on a how there's second on gross low-key had continue help and be if could the should we you net or margins, could. worth check then pricing? another the Just you also for in to

Joe Taylor

it a net we We a again level is again annual as that sustainable range. think an from are and the menu expense change targeting you that very year-over-year on good of basis. on is comp pricing question think a price the it if and our a -- appropriate because to is standpoint think I X.X% mentioned an Menu price, about menu I price. or Brian reduction increase

comp to as we and we level then see -- pass of to move expense. pricing the to in of that increase year, comp I'm impact lap the not the through through going we third move that dynamic the the take start rest kind As of quarter fiscal you'll year-over-year a a less

dynamic that to And will price you it level the on of to and cost comp. more the lap that currently see choose the discussion businesses, we'll restaurant margin decent anticipated within they we've I again driving we net mix sales. on firepower actually comp consistent cost around see offerings differential the think fairly do manage to So how Again we strategy. way again, out year-over-year in on back we is that of system-based the value use if sales traffic, some our to and focusing and a been little work tend to of its the the expense. dynamic operating in play of in That's appropriately business drive the we impact where think that to have

rest all would there extent traffic be. sales they are rate. effective through that tax that's drivers with and the the thinking leverage goes way where to So of and very the the impact we the is again that down Again through the P&L

of standpoint point the tax the that growth. come to tax we're would guiding one line driven is that FICA we things I line that rate that out correlation It's credits a those is direct tax with a to the those primarily by credit the Tip side on those Tip industry. from differential Along As on now cost a important tax from from top cost ship this from meals increased to meals, standpoint have deductibility member the on benefit traffic either of team both as of and change. the the or

the from can't top change change in tax – the So, line. it's you in divorce the

Brian Vaccaro

the And highlight. two a That's that Yes. on helpful quick Joe. margin for ones. just front, Thanks

insurance the above second was were quarter it the low lapping quarter in year, unusually the First, in up normal quarter? insurance or because current – you that health fiscal of last second was

Joe Taylor

lower question, And it Great was year. last Brian.

year, benefit year. So the in difference from this a year-over-year change exacerbated experience which we health last a claims had

particularly it's experience – actual but can run numbers, – and that's again, as rate an be claims situation. not shouldn't have that viewed experience on a impact So a if claims you get quarterly high dollar

Brian Vaccaro

it second on claims about the that think half because we a year? comparison call year, normal second as that, wanted and have the you we the And activity of Right. of level to half insurance the of in last if

Joe Taylor

was it Last We normal. guidance it any relatively good year as meaningful experience. see didn't Yes. relates to our

Brian Vaccaro

year-on-year million first just you've day figure for The Okay, I your you the guidance the question you ask that about in up originally the have comment, of great. could And Thank the and you. incentive you normalized half across also in one. last guidance Joe, P&L bonuses. the just incentive wanted back how updated has specifically. $XX And set then year? comp comp got is change the in is said, And when guidance? I think to about much

Joe Taylor

We're not years. of paid bonuses quarter the say, unpacking higher of level than in several second in this we paid we specific will one dollar manager amount. I the

the We'll So of the there's year. out. we movement there's how earlier number to the continuing that manager half bonus. consistent the plays to at relatively are high talked bias of are side that the that a part on to see in components. seeing different but several we slight about level, the anticipate Again, nice things back We year see maybe

Wyman Roberts

this versus greater think of kind it be $XX was I quarter last investment year year to the will impact But than million second forward. Brian the in and that moving

quarter. of had the in that chunk we've a second So bigger

Joe Taylor

Yeah.

– in and in low bonuses second the biggest were and fourth – not you we much the As quarter. quarters the the in manager last saw year third decreases

quarter, the as year-over-year quarter your started So about – year lap we last about re-accrue manager you again, as we an talked to when fourth the bonus move big. dynamic the in employee think quite on you health same when the to of fourth isn't

Brian Vaccaro

you. helpful. right. Very Thank All

Operator

Thank you.

pose coming Our your is Derrington. today announce Please then your affiliation, Robert question question. next from

Q –Robert Derrington

Telsey by quarters Yes, like fiscal calculation, been looks it think, Wyman you have the had best XXXX. these guys two trends Advisory. have traffic hi, my I past since,

modest that as firepower the it traffic materially traffic Now to grow three easy the you three go what Is at it's said, as forward, the have traffic over we confidence we been tougher, trends for from climbing Chili's $XX should get within there over a you slowdown that for for especially as anticipating $XX. and you continue those the comps you have begin sufficient been? you against relatively that can roll rate gives or that be comps

Wyman Roberts

Bob. Hi,

They about some stated in best you that brand reasons this I You're us has more and The get traffic seen for One environment. platform themselves or we've the become continue over familiar there that's actually isn't growth working in a you; that as for potential when value message. is right; quite been see they out time. them an like of optimistic in the people promotional time for before. to well with build we're this the it LTO kind

So, about that. we're optimistic

around know also there's to Especially firepower we additional We like how come the within to-go marketing organization. loyalty market. things the

confident yes, we drive forward. that continue we're So, going traffic can to

Joe Taylor

into the menu it that, start thing $XX. we fourth utilization of $XX as the to move to for utilization about one three relates the Bob three not into -- quarter, remind we on it for to of And lap was as but

change in platform place. menu structural value those take of more when we October and firepower starting you us think in the as made a think the I through So, gives the kind laps bit little

Robert Derrington

to-go. follow-up. quick perspective it shown traffic real and delivery? Wyman, spoken about may within an color update I kind opportunity If relates off-premise as the on it some of growth as third-party it Any to to you've certainly relates

Wyman Roberts

engaged operations we, closely to kind that that really technology, impact are on technology minimized from of side that so at operations priding better the obviously, to the their really and them it we're of watching But We're almost the systems with Well, on like the think the integrate it are been fronts. integration on charging. that of with themselves partners into is of importantly third-party have of, Bob, significant standpoint, has your the the then I isn't impact implications the quality two that cautious in being we're business is our the experience more fees given it. has a many model in business just many industry, delivery. given the these One challenging great are so third-parties guest end the experts, and it

So, big all We're we're with partners. engaged. the engaged

how cautious away look very We Again, continue list would high delivery the at consumer now. of Chili's business. it. going from obviously the convenience making that as that's very something But about on I all that to we've We you, works that's in appropriate at remind been delivery organization go not the the is also XX to years. know need like sure right within we're to the doing is for aspects handled way Maggiano's

the and we So implications system. of both We the delivery understand delivery and positive have own negative. our the

And skis will we too on partners. we these we're before that you are far confident so make out our sure if get of just to looking

Robert Derrington

you. Thank Terrific.

Operator

Thank you.

next and from Peter Saleh. affiliation your question. today is then post Our your coming announce Please question

Peter Saleh

BTIG. Great. Thanks, from

of items of maybe Can I come it. questions, to about couple think price you go the marketing a guys Are and So just this the or was with asked want message, message shift earlier. going forward just to marketing stick you points higher kind maybe going back bit advertising to will message? to little try value the some forward? to I we price or more as you talk full in

Wyman Roberts

specificity strategy kind around much the marketing is probably to going don't of give know how you we on go. want to Peter, messaging the you too

platform. think We know across that within have compelling to and we platform. it also functionalities. create know We value a of that different day-parts it we know news works allowed I us kind new

it service aspects have position food the about items or we of So holidays different atmosphere. they fairly kind like the other easily. of To-Go-Platform around then also the point whether to And the did alternatives can of aspects we business your other are we or over to talk

a will And becomes work and of us. now to and leaning are communication alternative the for the kind So just effective And as alternative And and are less to we media how those continue open and channels. really more vehicles they media traditional really are affordable into we we're channel-specific less evaluating all more evaluate. us.

Peter Saleh

look that Thanks on that Does you considered that have operators that. at you Is appreciate the I be consumer. you you work? Is Great. the a we have fees may will going something delivery charge, margin then where while strategy -- shift for tried? cost that third-party from, side, forward? to something you considered that pressure guess And have the the guys

Wyman Roberts

as -- things at world. I we do kind incremental just of think, casual how the I educated we Yes, price dining as the don't it's become others keeps third guests think on as important. is way has of I what, need we those are with understanding I these evaluated. our well obviously mean, elasticity cover -- to costs ourselves And that's Peter all party engaged. the costs better these kind same on. educate delivery in that and think dynamics need in to of looked consumers a partners And

Peter Saleh

Great. Thank you very much.

Operator

you. Thank

Our next post your question Ivankoe. then today question. announce is Please from John your coming affiliation

John Ivankoe

if Hi, And me, about thank you maybe make labor. us that you others I'm or brands at update there's do In of of could at we could don't near-term, example talked technology an that. you if things work that in think you're in for certified I you, I CapEx. If fully was optimized of in with? both update think with of context could with context ideas something remodels But challenges. this that feel the could potential we're handheld terms for about and that we've overcome that and that going in have that's your that like this shift would about, talked put an Chili's wrong If to what's that you look you’re leader on that like mean, a other big get going to about for call. program? give about forward the JPMorgan. on a Correct I point difference if could remarks your relatively prepared you things talked the couple the I other seeing

Wyman Roberts

Okay.

talked we the me of about let of kind So some hit the disruptors John.

and sure it changes to terms trying of made some resources another some the the our You’re another one we into at in was disruption and right – convenience best our mentioned. right, terms – of the on in category structural bring before call team think labor area make its of in of looking and space a our I good as that we're we that's what big on why is it

positive as impact have specifically changing certified a a well with experience our they shift team We're leaders and They the at on had the has management hourly structure. a more them mitigating restaurant come So some a back-of-the-house at rethinking of things that team in over or members like our management more importantly, we're on staff into servers members. come this real of of position the rate, in of in being years bringing lower had lot and we into management we with how costs. but process either in labor

up a have comfort the and And so if tends level that you will better the that we think on operations and with impact of much if level isn't the will, you have a – stays much leadership just and get to their accelerated they curve entry, a lower-cost but also we comfort be better a stronger hey we long-term get then leader we longer.

turnover industry even the more management becomes and we some turnover – So and have model. consistency lower the our traditionally led is within

that, a haven't benefits technology still lowering the of labor why integration great flows to So enough just that's because is which right technology. move regards technology the it. forward a we're on the on being there critical delivery as But least while through at experience, where And have cost systems we're and now to isn't to to is handhelds, and program. that delivering the that of some that we P&L, guest the of start lot just managers handheld Frankly, prematurely through the is on We a believe I delivering today We it. know but of there it is focus that that's out technology in focus down. line. something we getting on an urgency now. not we With into a come right we of with that rushed field, upside we little But think, is – haven't won't some it really – forward to work. good partners to right our be. and to consistent where to we about need working been talked we And sense We to that's has is. do a and technology it we're operators dependable commitment we that the move of new get that. and We've our ideas to and be roll technology at we're our as as until a there with have our with out think buttoned there have been

John Ivankoe

of if fully are I work leaders, currently so the transition could seeing we follow-up And then going on as into more culture kind mean, to are we you I certified system? the a that of shift or impact, rolled-out that multi-year P&L new be is

Wyman Roberts

Yeah. from the right? but were strategy, through sure it's we're not So and through But of as rapidly. source XXX% outside the kind before. replacing we're at seeing both we're side we're relative replace cost organization again program maybe moving and great of No. a on those to moving the managers a how we're also perform mitigate new managers of and That's business. we some the – we results it to committed the for But to

So kind things that's are those process. of in –

we're we're but say, halfway Let's more there, than XXX%. not

John Ivankoe

we of on Okay. an and fiscal build then CapEx Helpful. there's XXXX our as kind something just remodels out-years? you initial look on quickly maybe, And if

Joe Taylor

getting like at restaurants response relevancy Well, about for from guests the towards the pretty very team and the approximately the and $X.XX, encouraging. remodel fiscal program is they we we're is members, that is the continuing anticipated, that the year. solid. feel much pace from The look progression through $X.XX The moving

had forward more before, way you to topline remodel. thinking really from its that starts our you the around impact as I we this system get indicated think all into the -- into as it growth base going as relates a of point to work

from sales years expect two we then remaining comp done. bigger impact our we to So and impacts favorably in growth would as point. them next get the the of sector move forward as coming you that obviously this increasingly But fleet -- the

to big So be. $X.XX it time the no range, biased but CapEx John. little this about on a as $X.XX I expected changes Probably right delta target end we that towards talked to upper is of where for

John Ivankoe

And really as I presumably that out that at point about XXXX there's call this XXXX, -- would nothing you you would versus XXXX? mean mean, think

Joe Taylor

we're I now. CapEx of reimage a -- as similar No, for we program, three-year that have that that think about it before when year-over-year impact program a where defined right we the we right talked a kind is comfortable would on

John Ivankoe

Thanks so much.

Wyman Roberts

John, thanks.

Operator

you. Thank

affiliation, from Our announce Jeffrey question. next question coming today Bernstein. is Please your your then pose

Jeffrey Bernstein

in Two that's Great. players growth, how From response presumably a getting questions, Wyman, terms we agree. a concerning, comp you slope are mentioned slippery Thank to the with but declines would question traffic of about one, Barclays. you. earlier in some and

how because wondering of but about you the I trade-off slope, also think the then good the are you guys pressure. the traffic like Just slippery comp seems -- guess a growth, there's margin more you and faced a perhaps on

like is a perhaps painful follow-up. how is you fronts, because And the which So then greener kind more type on wouldn't less decide be have I both wondering grass you'd attractive want always of, seems you happy, I'm or it idea?

Wyman Roberts

growth with to when to we're think taking. the we but of both. business, Yes, that. think We we we traffic approach through want quarter-to-quarter structure, we're doable overall that the kind sales and dynamics and Again, look at that get changes growth Jeff, the translates obviously, does in the we that's some earnings on the path want of

happen the as traffic-guided frequent what's to guests have if and established start don't think a proposition the of that environment, mounts it's laid because in good concerned kind this is growth you then loyalty pressure today's I with if on I'd things going be if category turn. and not way unemployment economic out, with strategies, that today's traffic itself environment in your and environment to getting income you're So, growth value

and that's those getting got that So, you -- the -- your it now starts into so portfolio. kind that into loyal bit way the there, consumer to a to we other tougher and really loyalty become it the little be time building is customer that at that base built if you've look out of your house

Jeffrey Bernstein

expense it guess at margin okay point But to the first of to driving just at do this the traffic foremost? I be want it's you because and

Wyman Roberts

of traffic some the the the -- mean lot more onetime growth that kind that saying the experiencing -- not really give pressure and financings challenges with value do that by of lot relative margin we're to primarily is structure we're significant. margin margin are a driven out I Again Yes. propositions. the a to isn't then up there. really It's ideas

will the is if value to this we're margin give than with investing proposition manageable that we're comfortable do you both. up So in more that

Jeffrey Bernstein

how you Joe mentioned seemingly thinking of comp then you raise And guidance the and XXXX what revenue about you seem can mean earlier? Understood. the in reduction fiscal would tax the earnings nickel, business clarify – the $X.XX XXXX. be the concerning just by a the a fiscal with asking to raised I but like benefited was to I your just you the close But which you underlying be rate -- lower don't growth therefore But message about it it's good clarify is which wondering seems would presumably you to lower would rate imply what $X.XX at I versus I'm favorable of of rate just attribute the terms comps. struggle just earlier, sales much rate as is obviously and so you look reduction these to guess tax lower to favorably lesser sales believe view quality? just independently. tax in that to attributed which the those things the tax the

Joe Taylor

I year. the worked tax the beginning think of our into rates again, Well, -- the lower statutory numbers already were

you're primarily credit meaningful of increase obviously by the topline gave That dynamic. have out tax we you as increasing changes kind And tax as one typically to in see being of And that again you driven tips as impact business. credit at Delta you that you that the on tax business grow And lines. almost, biggest on a ETR volumes powerful the the as impact ATR's operating part are a that has the we we grow. the that the driving play is are FICA what's has see what So and go re-guide were the credit a starting forward. the is relatively really on

about EBITDA business. I'm guidance is looking think an increase. that holistically directly very standpoint, from linked. think the We guidance they’re So at When again I annual appropriate

is speak way I committed margins, continue of to think and do then and And get we the that seeing the sale we're as numbers as in indicative actually it is come our directional will themselves rest again, the business. want works best as the we for leverage to improvements, its bottom to through takeaway from year. line move the throughout the we're improvement the drive how improve those to those fruition

Jeffrey Bernstein

very much. you Thank

Operator

Thank you.

Our post next David coming your is announce affiliation from question Palmer. today Please your then question.

David Palmer

RBC. Thanks,

lapse launch Of $X.XX contributing for the like through tougher years comparisons There's X the there's initial $XX. Those and that will too. concerned little Gardens slow All a to at And have for here same bit, messages get even persistence is Chili's plenty it starting contributed least but multiple market to $XX. year. the think of sold positive true for failed as sales value also I others this that think trends for X industry store Chili's is particularly as at for sales I

spring? you can have you just momentum something what after this can gives that a So make follow-up. I'll the confidence Thanks. sustain And --

Wyman Roberts

momentum gaining that. David value great. is low. We levels, acceptance – it's return to know it, Light in on being and very very Yeah. think trial high It's is try offer awareness the user the I as extremely is terms trial. of that just platform. once intent and a positioned people It's

by The – that's only So the the that I is and additional though are mean, meaningful the in improvements guests. have day-out not you operational restaurant like consistency day-in just continue important thing continue and to pocket, also the recognized our consistency to made the momentum. thing and drive being to we being operational we've got in most if it's are will

coupled that the from it Chili's regards the continue grow to business. How the built that and when us platform. what not back to guest It's so to to perspective? multiple It's to value allow confident you will here? So growth? drivers from go elements about winning your of the your are future we're consistency we on just with think momentum And will ability story there's counting to does by and that future take-out if okay, where's with that strategy we're operational growth

David Palmer

a follow-up pricing. on just And small

you did your you that pricing quarter Does have the oscillate think I a X% targeted Thanks. going that you to less forward? mean to of going in that either you're side is and X.X% little said amount than X.X%. might more that

Joe Taylor

that is And points Yeah. again net basis XX pricing.

some talked at closer in a get consistently the there to pretty might or aspect range to depending you net some So as then to menu comp we comp price pricing addition to should But in on point give you timing pricing either is be that X.X%. be when And of any wrap Delta The reduction in it's year-over-year line We time fluctuations. that. that. the that the year-over-year from expense tight about sight was to you target of will a good change. given

David Palmer

Thanks.

Wyman Roberts

Thank Dave. you,

Operator

Thank you.

pose Our next question from Karen announce today your affiliation question. is then coming Holthouse. your Please

Karen Holthouse

answered. been questions have and Hi. Goldman Sachs. Most my asked of

So housekeeping one. just one quick

what the was and On model line breakdown the and revenue? the other franchise in item other between royalties

Joe Taylor

provide don't of the breakdown. all typically We

the million bigger too you way major in components the that into other category, as again the the look the driver. one the of that think Karen roughly of I the was that was you throughout which Delta's that different the moved range in $X many advertising or contributions move bigger Delta other number. saw is franchisee There weren't to

Karen Holthouse

Thank you. Okay.

Operator

you. Thank

your Our next your coming is Glass. John then question Please affiliation announce and pose question. today from

John Glass

questions. Morgan Stanley. Two Thanks. It's

is First is, for at so given and business at business how is experience dine-in rate in beverage the over three rate that – the and of How does growth you do the business? particularly to-go $XX in versus the profile of the into the margin the business business? attachment the you to-go look index read profile the it would it to-go dine-in margin just

Wyman Roberts

terms its mix. of It's Hey, in John. comparable

it's the investments per solid packaging some in quality main little So, probably the obviously and just don't its that check to is your given to right? what maybe you this volumes packaging the pressure. the Overall, in your business. in really the with And it's -- comparable to-go gotten biggest that margins, made -- have the And impact you is order to could to-go. but we've that increased we've and restaurant. invested little a sure every day better make less, differentiates. sales on aspect I of sitting mean are packaging labor very component think to-go the But against isolate element a difference. overall overall, primarily regard again it With year that's packaging is we averages basis, on bit and a parts is

use of exactly the is for be how a as many us people big out, well but to ordering food what seeing deliver eating the the the You online as and app that is better know opportunity we're more really are experience. great a you're and efficient per quantities order guest sending are much

John Glass

offerings coming for And customers about think bar or helped couple price for is someone in $XX, quickly that based then exceeded, to of in has business and that a sensitivity emphasized in or business comp? the in overall overall enhancing value the relative who check? business bar as growth the just the the I three the And you the guess, the on, your or bar enhancing on the you bars, hurt bars. that years business, pace, lagged last the kept Has bar

Wyman Roberts

as bigger like as mix we I dayparts. lunch and so look than the business And consumed a there's the during less is you alcohol shift lunch to really bar being at dayparts lunch impact grow dinner you the if your alcohol the think just right? mix, dinner, obviously, so in -- lot

but as percentages the That's strategy, as impact a helping beverage move really, bigger So, three alcoholic for been that probably are forward. overall good $XX impact think, sales, lunch really probably business bigger dinner has lunch the very… well had strategy probably our I as the -- has it's been strategy on

John Glass

or to be And sales year mean clear alcoholic beverages just percentages lowers the same? that is does that it a ago the still of

Joe Taylor

alcoholic with the similar the helping equity helping can And sold initiative associated It's beverages to but the very brand. -- Margarita of drive really occasion it own, that a great we of slightly actually to and again -- being the is great a has Month brand touch up. loyalty again, relevancy that number is lower, to drive program,

continue we'll to something and into. lay So, utilize

John Glass

Thank you.

Wyman Roberts

Thanks John.

Operator

you. Thank

your Farmer. question. affiliation, your next Please Our pose announce Jeff question from today then is coming

Jeff Farmer

if Great, what Gordon number? members on the loyalty thanks. are Chili's executed that My transactions Curious Questions you percent guys Rewards. of Haskett. have Chili's by

Joe Taylor

take point. Jeff, you Hey, have at that for this to back I'll

with me follow Let around back up that.

Jeff Farmer

Sure, we'll do that.

bit little maybe the -- Just a on question. of tack

contribution program? disclosed from So, shared? have you guys the know any early have sales its same-stores you I but guys anything estimated days,

Joe Taylor

really. not No,

We haven't regard, that to unpacked Jeff.

Jeff Farmer

the stable Okay. -- last then has follow-up high curious believe quarter potentially had $XX. single-digit of for said I mix percentage grow over mix has low-teens to And just into quarters, and and or the a might the just mix, for last into been been consistently was the third in I'm it couple be of question first three quarter to grown second if continuing that quarter? you if

Wyman Roberts

Pretty stable there.

Jeff Farmer

Okay. Thank you.

Operator

Thank you.

Our and your next coming question. Please question Stephen today Anderson. your affiliation pose announce is then from

Stephen Anderson

the just down where those from additional see there's of still borrowing credit fiscal existing on – we down about saw little bit Yes. want your and and pay any debt? to I see XXXX, your shift for under were sheet I a on if the of at a you talk quarter new to some but end facility if gears potential of you debt, the From the saw long-term Group. of little certainly Wanted balance we’re tick-up and a bit end Maxim

Joe Taylor

There wasn't.

X second quarter If the range uptick, to X.XX you're very leverage but a we actually line in looking first you at of annual quarter, below overview. there's as part an the and much tick times provided

so X.X% forward, very end comfortable appropriate I range. of say again as the component with anticipated leverage. Steve. in in staying part as we let X.XX%, right think is just that utilization at range the We're of we that so came lower that I of move

Stephen Anderson

Okay. Thank you.

Operator

Thank you.

announce today next Our pose question is your Will then Please your affiliation coming Slabaugh. and question. from

Will Slabaugh

you XX% quarter. or I your delivery. so continues to-go the say Stephens. accelerate It Thanks, have sounds business follow-up last to a over versus like to-go XX% on and guys.

be out delivery, last think then effective? choosing something and your that most the XX I with you you So there odd working can using talk how the like to get word follow-up And as a you're about quarter throughout what seems you providers systems. to mentioned on second some were

integration narrow any one that So can these appetite I'm of with the house? – that another sort of down? partner Potentially it or there's that if solve backup front house curious, make

Wyman Roberts

In again, to-go, our market we like how channels. broader base some multiple we national we're messaging. to conjunction with quarter in regard television use using actually the With second and

of out also provider. getting and to out as to-go – the really big more seen in continue to channels regard messaging So a the have we delivery have guys be mean, especially not we strong. use With – guys. to effective big one to I absolutely seem markets, consolidation quality impact the so with online many app pretty we've they guys at and those good or we the all there, partners, the the we usage do that, little because are word working don't and there's been obviously just have in growth but and direct on all effective the our

system, we're anticipate will financially quality to guests talked what that well there is and system within our space And this to see, with We national – is makes we've in over guys pretty about if try value see known time. then viable our and and delivers does working sense. consolidation a the and integrates we dramatically big

the in continuing we're aspect. all with yeah, players to that major So, work

Will Slabaugh

Thank you.

Mika Ware

your and Goodbye. look and forward to Thank that's that questions participation have. on talking think everyone. With to you us the you call appreciate And I appreciate that, next we the Okay. we we today time. joining everyone all

Wyman Roberts

Thanks, everyone.

Joe Taylor

Thanks.

Operator

conclude Ladies you. conference this today's Thank gentlemen, and does call.

You and day. lines have Thank a participation. may wonderful phone your disconnect for you your

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.