NROM - Earnings call transcript Q2 2024

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

A. Mobley

Well, good afternoon, everyone. My name is Scott Mobley, and I'm President and CEO of Noble Roman's. Also here with me today is Paul Mobley, our Executive Chairman and CFO. Paul?

Paul Mobley

Good afternoon, everyone, and thank you for joining us on the call.

want in you the I harbor the begin, contained statement earnings we to to refer safe Before press release. will that call referred conference contain of statements This the to in statement. forward-looking kind

this So these you, call well. Back Scott. conference provisions to as to apply

A. Mobley

Thanks. assume out of Well, press you studied that to all I'm the today. bit release that format out the opening of our a with yesterday that I'm Great. way, going Okay. change going afternoon. went to have

repeating than go some observations, that rather So right of to your adding provided. lot to in then we're going already questions. jump a ahead that, color then we've and opening we'll information with And make that some

income of X%. units that good heavily is as about additional segment saw just reflects to last the of same-store of in of under $X income an overall in was adjust X-month Pub $XX,XXX, $XX,XXX of they up spending. The The in second And August, in brings which a charge are Pizza quarter the the to the you And operating back were the from even value year by $XXX,XXX, about with sales had decline it last vicinity consumer an the which & X of We quarter last the X%. and saw that net about the to July. influenced Craft of came for softening warrants. months news of theoretical when year today, for the included As a quarter, out million. with total

positive that an way menu that trend, hesitate, a I we still point XXXX. out since market, in out this regard good in should but pricing in a it's certainly I called development. back have increased So it's

see directly firm far, increases, that reporting have I'm And no have So held taking results, a comparable. I that competitive and where some though, core monitored Part look at that, good on for are flexibility. for the over real so that continued of the seeing month analysis our we is hard so. are with taking you look pricing those the on next relying we're pressure price given we're pricing of inflationary hard environment a regularly why costs. but the I gave we'll quarter, at the the numbers next others or change.

the labor But to employee salaries hourly strong finally management have we've our still seen stabilize. On side, for upward pressure. wage

X% So we're or about in the neighborhood of so.

competition of industry of talent inflation. increased of course, just higher That exodus price over that much During return. COVID, average the huge X, a In increase. Bigger And of cost X. it's cheese. which now right since market is issue quarter from the more That's good what driving is to was pizza. pizza is the increasing is XX% there for an the approximation than say and increase, it's is, XX% then. for cheese a and price an cheese averaged component in quarter commodity to making for a management is people, has yet that core us really The that

quarter. that's In essentially pizzas we're making bite about I increase. X% week, digest, in fact, rose to at this XX% cheese of of the And a think the another cost almost alone looking but second big

We have cheese. as some other as in but commodity pizza extreme price not pressures, sausage and namely sauce

careful want our do damage we've a on service premium not in messaging position price have Now but keep on our product mind We that modulating various for keep product to provider. perception and future to we the been that value, been we impair as and rely brand promotions to capability.

this using compared in the to second increase recognition. making future year first cash months. we're generating in increase by for in quarter XX% from a the fees different income revenue saw last for Keep we X treatment accounting franchise a mind, segment, nontraditional the year, on deferring last Now franchising XX% a

So apples-to-apples deferral increased about revenue the for last without $XXX,XXX has months, or franchising X last year. basis, that on an XX% over

Now Majors late we XXXX. with franchise management aware a you're deal in XXX-unit that all signed

opened have complete until they that. of we've half XXXX those Obviously, units, of nearly process. running even far, the ahead So though to well they're late

through total this new far individual we've of finance So year, locations general. their our opened franchisees Many a in XX of flows. openings cash

X opening franchise strong we still work equally some the with weeks, a another have but in timing pipeline environment, to X of but bit, have units down sales or a the In for still the We forward. on schedule. current the units slowed new they're prospects given moving pipeline economic unopened their an in example, good of process. sold on So X have following

we're obviously significantly increasing continues the that growing that nontraditional able great we're focus. of in grow. corporate thing segment creating these with the of and And primary the to that without is about do allowances that The amounts be stream grow time. and annuities way overhead to same Now all openings, a at of fees what

time never it's into say balance has it about just I on, time interested to our the really reduced strategic only way $XXX,XXX. That's XX well refinance I'm But progressing on be details and expenses we that believe the is the within any a good, accrued good, while work I it's and there, #X by right get of guarantees. payable ahead cash line looking all in that's and you're the and good. for moving made company after $XX,XXX. done. project, the because So now, meantime, next during X course, accomplished first the days. total all $X.X payment million only reducing by focus In the it's of in and XX the equipment the will can it good debt principal and the to accounts said give a $XXX,XXX that of months, $XX,XXX current purchased doesn't all can't status specific looking sure in you But process of

to me to now questions, wanted for So is a jump back segment exciting. again CPP I I moment. something that before we think take mention the let

POS company As up last not the is partner. DoorDash, sessions, all its COVID. is our had months, our geeks primary company previous at our own That to geeks you working with on with after who few we've the have with reprogramming and integrated fully third-party after ability POS at the happy the over news finally DoorDash But our computer times And our own. the computer know we keep POSs. additional very good from I've been here, into

weeks, week. ordering, now be couple should better. even possibly done However, with same and almost done are very thing next that's our the That next online of with we the within

to integrated the program with is the a good weeks potential, launch portion within custom loyalty after we reduction which well as our of errors part an solution. get have after presentation really the in really, few to should have that card on that, mention is should of the time great brings with not of as and we the online app sales All ordering that both E own And be call. that, we're Apple weeks able the gift all to news, that integrated, app, them. Well, our with concluding integration these Obviously, full within and in platforms. a test is Android few

questions. will Next, Paul I and take

A. Mobley

Arik, Instructions] Okay. ahead. go [Operator

Unknown Analyst

but good the Corbel? the is be principal left curious we're on a with know impressed. My loan on very Congratulations to all question of amount we're quarter, what was done, probably

Paul Mobley

About $X,XXX,XXX.

A. Mobley

question? the had else Anybody

Paul Mobley

Can just Keep note. we've of the I note, the go X% month mind, of have in Bobby been principle back to terms adding for minute? the every that adding us a to

-- need soon as refinanced you as as fast So it's that's it we big Thank That's that's you. paying one goes we're down. slowly, get adding going is would it possible. -- drop it's doesn't as than but reason why down but than it to more think, and more

A. Mobley

Okay. Mark, go ahead.

Unknown Analyst

same-store you positive? you in think can Craft second down in switching the X% Pub, so & And sales would regarding I positive? do in you that you it attribute about obviously, to what And Just where you far? But hold actually has the August said quarter. gains? What they're the believe those X% turned

A. Mobley

those are Yes. good Well, questions.

the months. modulating several last deals we've price So been throughout value

-- sentiment significant reason, promotion with pretty For the -- later of the We south just last with back quarter. the badly had is so in on price through part that's consumers first best typically the of school such time -- had of definitely starting of year. pretty August. August a a -- September in whatever the turned not here good impact August before stages got preplanned typically is

the of back-to-school so all got with You've doing got families that. expenditures, you've

that I just and the average school. a study Deloitte recently back per about found to family spends child $XXX think I read did here

different follow us. ways the can gains? the mixing had continue of approaching Well, can keep so to so. with that, we obviously, in strategy, offers we Whether same hold for continue we hope preplanned sort promotion. that those hold to those on -- So to we we of for

Sorry Mark. Go about that, ahead.

Unknown Analyst

you see and problem. was that first second enough do might according no with and It to non-franchise they'll able agreed units being of XX XX, I go Yes, the majors, to all aggressive. press Do units without in sounds don't original then still half have the through opened new you know, maybe in will you schedule. But -- stay do that XX of that where drying I tailing signed to -- let's Or with year? that's opened the of December the now maybe the up, ahead of they're some like half XXXX year. to XX, you on be -- obviously, off? the another release very the you've go and

A. Mobley

fund on going. unopened in opened of model this basis following the XX because to there's some X to I scheduled We've what We've quite still they're as still presentation, a have on on are opening They're for we'd the like, few sitting slower franchisees with the than still weeks. We individual process date. having those calendar. they of little table, operate whole signed the but got part up cash mentioned flow. But a X typically the about agreements

will to continuing we're push as that go. schedule. of well. yes, to open is believe I units continuing continue ahead they So Majors And to

Unknown Analyst

highly. those impacted the pretty they're if and openings happy? It the generating? happy your seems Are Are as sales -- sales have they with Majors pretty that you really pretty

Paul Mobley

that them aggressively promoting yard we pursue. front aggressive. We're could more. pizza a what happy. started to stores, They're they gave promotions very But that of get They they're they're of do, week and they're can the ideas, their sales next week. time, evening doing of the the They and happy this lots any Yes. them increasing beyond ideas in even find We ordered a in signs ways in to the do banners put they trying their couple out that. they They're give just want yes, pursuing are. to

they're happy, want a lot. but They So more. they're aggressive do to

Unknown Analyst

XXX another have necessarily for There anything I be you're XX larger as burling far [ even as sounds That talks interesting wouldn't not but ] of great. with do as opening? where far units, you else amount anybody XX as know, a a unit, anything

Paul Mobley

an the agreement or on the Yes. when exactly this tomorrow. drafting I'm road. that interested like right this -- But I'll they're XX they before now say, they I working possibility will afternoon down sometime I agreement close was after that this interest lot units, like for more I call. in finish about know on units a of units, units XXX happen. looking have will talking And on XX. that's but but XX don't the in they're

A. Mobley

you then from lot over the timing we control don't groups of constant up keep different the because that that And out you one a you time their will, if as keep the hopper exactly Mark, sales end. as keys that and variety is being a timing contact of the full. on But one there that winds things pipeline the when hopper, that's the of all of with. pipeline nontraditional come sizes standpoint, in the they always keeping possible just we're are of the falls in many of other

Unknown Analyst

matter I them even of, nontraditional. I open seems mean, of it's gas seems are Yes. food see here, to a as or stations having if, and is It pizza X, if this as A lot not whatever. they be like chicken available. It have that around new -- great both a in time

there. So looks out like a opportunities it there are of lot

A. Mobley

all them. choice They're or realizing have they to good have that and pizza true. a definitely That's less is for more food

ahead. Anybody questions? questions? Well, additional the done here. it got We've like more are on with all with Any Hang Wait. Okay. one go questions. Matt, we looks other an

Unknown Analyst

for Sorry there. the technical difficulties

on a that get But thinking the can I sounds this share. that Not not and maybe at Just here you're or curious due, something conversations they're this resi like a when if probably couple going satisfy on Corbel don't you details down talking it's at comes able of issue the about discussion, it investor done, too like much been what there's the are of to this understand know I lenders be point. to you their meetings, to looking you're in committee because big note. side?

the helping actually what they have with just conversations the conversations with you could one Like are they refi? result the Are on Corbel. been this the deal? curious like what I'm So that Are parties to for their team? potential of

A. Mobley

like making we're not Well, further lot had good deals there beyond actively very what option, into that we're that on We an said approaching detail earlier, know and had. can't is and that making -- better Matt, go that that's it's working working be that think a are now, on any we deals those as progress. we're but really to right I to on, I because better there's be

Unknown Analyst

Yes.

not you're -- So okay.

of really other but like more the you're that I was Corbel, -- right? bank you're to to to that talking talking what kind going answers So market. lenders Is not

A. Mobley

Well, looking that? significantly at again, many improving Matt, the we're terms. into specifics, can't but too How our of say -- I loan just is let's we're standing go

Unknown Analyst

Yes.

you press asking I'm kind say reference is I and why question. to that is that the so because in just want And something of this release

press and want between statements release pull Let up QX the and me to compare between the made -- I X QX.

one me more the again. insinuated release that that second. might Corbel give you be speaking And So to press

financing currently the believes -- credit company a new where in then notes however, February to on not going read read there's to Corbel in subordinated essentially, So it metrics differs. yet in expects over result the loan in repay obtain of the says entirely. Then a maturity loan the and rate term rate to statement note, but QX, company interest. that's but pay as and previously, new the the then refi with prior it reported to assurance, the the here's a the in to subordinary to will note the -- that of XXXX this be there's XX-Q, going so repay company be that In would based no the the the that the successful. lower amortization notes loan repay whole Corbel pursuing a And interest from I'm plans was, the convert QX of longer first full note reduction to financing

discussion open interest subordinated but it's anything reduction refi convertible sounds with paying saying substantial done say like and in expense. But the a was notes So Corbel. it paragraph that same refinancing this doesn't was QX. company in From terms said expects you're kind sub not about it Corbel, the in based and between the and the the QX, was it statement of the with will then first off currently basically that it discussions changed of potential leaves indicated the could continuing company where end, at it ongoing result continuing be the rate on lenders, it

Paul Mobley

note sending them. with Corbel I discussion there's not discussion about with It's with week. a Corbel -- have every no

sub. very We pay intend relationship, notes and expect no finance full that to to over good between difference say notes, of off the Corbel and have note time consistent, about over We we that longer those that there it to a And you There's relationship. all amortization a still subordinated the read. and really is that period time. that's is to working with

Unknown Analyst

that's I helpful. clarify. want that understood. that No, it. to Got noticed I difference That's

A. Mobley

see other any I'm Thanks, the questions? All questions. I scanning don't right. any board, further

we're like looks with that. it done So

done today. So we're

the Indianapolis many hope of Annual XXth, don't here our and to we then. we Meeting Shareholder that forget you Just on see do in have

participating be evening. today, again for We'll thanks terminating again. great now. session now, have the a and connection for Thanks As

Noble Romans (NROM) 15 Aug 242024 Q2 Earnings call transcript