Darden Restaurants (DRI) 19 Dec 172018 Q2 Earnings call transcript

Company Profile

Participants

Kevin Kalicak	Director, IR
Gene Lee	President and CEO
Rick Cardenas	SVP and CFO
Brett Levy	Deutsche Bank
David Palmer	RBC Capital Markets
John Glass	Morgan Stanley
Nicole Miller	Piper Jaffray
Will Slabaugh	Stephens
Brian Bittner	Oppenheimer
David Tarantino	Baird
Peter Saleh	BTIG
Matt DiFrisco	Guggenheim Securities
Sara Senatore	Bernstein
Chris O'Cull	Stifel
Jason West	Credit Suisse
Greg Francfort	Bank of America
Jeff Farmer	Wells Fargo
Andy Barish	Jefferies
Karen Holthouse	Goldman Sachs
Howard Penney	Hedgeye Risk Management
Alex Mergard	JPMorgan
Andrew Strelzik	BMO
Steve Anderson	Maxim Group

Call transcript

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Operator

Welcome to the Darden fiscal year 2018 second quarter earnings call.

Your lines have been placed on listen-only until the question and answer session. [Operator Instructions] This conference is being recorded.

If you have any objections, please disconnect at this time. I’ll now turn the call over to Mr. Kalicak. Kevin may you begin. you, Thank

Kevin Kalicak

you, morning for and you Good on Thank today’s everyone participating call. thank Gene.

Joining me today Cardenas, are Gene Lee, Darden’s CFO. CEO, and Rick

forward-looking with that of XXXX. As call statements are the made comments risks These Securities statements and to include uncertainties Private Act a release results the in cause and described in as Reform during Litigation are to Those projections. risks morning Commission. Exchange differ subject actual and defined this company’s Securities materially which could reminder, will press and in distributed from filings our this expectations was the

by We and Relations broadcasting third presentation section reconciliations XXnd are included of which includes presentation. Today’s call Investor website are March before the our presentation simultaneously about market performance a the remarks remarks results we first brief conference www.darden.com. followed these plan morning, XXXX from at measurements during highlights, quarter, posted your fiscal share on this some This the to call. release of discussion Rick questions. our more will our then quarter in open some the measurements, a will financial the closing for We have on non-GAAP on earnings detail opens, before and provide Gene is Gene call certain quarterly and business and will

since Darden’s Darden. brands fiscal references to to all legacy of Scratch Darden’s are year, call sales today’s this the restaurant only for During include remainder and Kitchen same new Cheddar’s Restaurants

Gene. Now I’ll to turn call over the

Gene Lee

and morning everyone. Kevin good Thanks

pleased by performance start the our quarter. me I’m very of Let saying during

from operations XX.X%. restaurant share year’s and net diluted hurricanes. earnings from share. difficult some an sales grew XX.X% through an increase Total net last per of managing recovering Same job great a billion, did earnings $X.XX, sales of continued from X.XX teams increase per the X.X% were adjusted were Our circumstances

than we more positive three years consistent our I’m the strategy success ago. results, implemented driven been our by ever convinced that Given has

to two, our work results long-term scale cultivating with using the made long-term through our communicate to relevant growth. our go to a extensive will operating four improving our me four, make we Together paying-off execute a planning The operating enable to continue brands. back-to-basics philosophy insights competitive ensuring in significant our restaurants food, systematically service effectively, and for overtime. advantage, on coupled and them continue combined intense improve these to every philosophy with have remains investments with marketing we framework cost strategy integrated fundamentals understand Our and culture focus data our This atmosphere create brands in our people to guests and and are day advantages; better is critical strategic these more one, confidence better areas. leveraging Darden’s and process, rigorous hard and to our deliver competitive our operating areas oriented will to give our in ability advantages and winning

our by to Turning Garden’s driven basis to outperforming on high excluding quarter was grew execution, the Olive XXX guest benchmarks and result sales which Darden by simplification flawless consecutive same-restaurant focus sales X% Garden. points. in satisfaction industry continues XXth Olive scores. Same-restaurant This growth

loyal everyday core our create XX%. our working for Our to grew are guests drive which increased strategies value, and performance frequency menu promotional together strong-to-go most and and

event LongHorn’s Garden’s Take brand promotions connection highlights and One on experience LongHorn’s items by by grew consecutive campaigns like service strong as ending convenience and this which was the Bowl leveraged two most Never Ending need our our significantly ran highlighted abundance. we continue years our and quarter, motivating time, most integrated brand have value pillar guest with One, to fans quarter which to frequently. the supported for reducing by equities had strong same the investments improving Same Darden, XXth strategic appeals surrounding simplification illustrates were Steakhouse Both their levels popular by restaurant of growth. marketing excluding the strong During Pasta promotions, emotional XX% have Buy leadership two This of anticipated quarter same visit Garden. emphasis our volume outperforming included making industry Olive never making pasta execution. immediately. nearly with claimed social year has Pass buzz LongHorn PR all Olive in plus Pasta quality The points. the introduced placed first of trip consumer to we sales kind were The are Pass. benchmarks, XX,XXX of restaurant perceptions of Pasta pasta which of investments a all the the online been again, last lifetime its the event available the to to Once of we more guests At This XXX Italy. the they for and sales enhance a in and addition Passport atmosphere. higher media The passes menu guest has year led to of food, the of X.X%, passes Pasta benefits

As in time I makes value trend markets in This is at proposition LongHorn’s rate new discovering are markets. at quarter the higher LongHorn. the special, the established new than markets same in exists performance fully last to inherently mentioned LongHorn not these new brand. grow realizing a what Consumers at same to continue the that restaurant sales while

We have the been as brand. the XX out play I associated years seen it with past have over

the franchisees but integration. is different includes Now acquired. exactly going systems Merging network doing Cheddar's the into recently two I three which The on easy planned. isn’t of managing were is as the great will operating Cheddar's team a Darden job update which also complexity the largest integration you integrating this

will infrastructure. executing long-term synergies his moment. take and and in We just benefits thank want impact. a They plan this more the work momentum, this restaurants is an are to update per important distributor, for distribution XX short-term advantage impact in to networks is restaurant. suppliers of Rick on payroll have undisputed convert They as members transition we produce of to transition week fully our of benefit on of calendar conversion, growth the sales restaurant I suppliers, and will levels. outweigh we scale, at casual acquired our we integration two in progress the which the of transition prior Darden as completed guest and we project. are It the per but a team average value per for main Cheddar’s on large execution. We the the about possible become approximately peaking on synergies a also in including and dining The point Darden includes the two position week, that training activity the planning in a high weeks integration fast Cheddar’s X,XXX short-term as long-term Integration related point systems benefits platform at to franchise remarks systems negative smallware from order developed an realize guests to leader to with prospects. we at believe plan far provide transition the in finally, to the be Darden just payroll to we and this having will sales year. system the Cheddar’s another beginning outstanding more learn comprehensive as is base intent are of excited open enrollment the line Cheddar's integrate team brand loyal

Board saying the guest create Let in busiest management We teams are day guests our the more the turn me the time as every with and I’ll to over the of of close I now new to remain on due the to of by our members for making they year for team behalf Rick. our and the and special experiences year getting ahead. co-workers team our progress want all to it of memorable holidays forward during thank look On family focused time XXX,XXX help better even restaurant I celebrate friends. And year. Directors,

Rick Cardenas

Thank sales new morning with growth XXX driven grew you, XX.X% another and growth other total quarter from X.X%. and We of XX.X% XX Gene, addition restaurants everyone. the and Cheddar’s of by sales of same restaurant good had strong

year’s adjusted to shares. and repurchase diluted approximately $XXX fiscal total, million In returned were shareholders in million net in an $XX earnings XXX quarter this quarter XX.X% year-to-date. of paid from per our per We continuing from capital of $XX million we operations dividends earnings Second million $X.XX, last share increase share. and

the Restaurant P&L. a quarter’s and will refer last addition leverage as overall pressure higher unfavorable expense a outcome was mix. year quarter. to points legal of XX I Adjusted this XX this flat margin offset basis was Cheddar’s, than than of an last as in sales EBITDA inflation to EBIT margin basis percent G&A than matter higher sales points to as which and cost due brand as level restaurant growth more Turning was from savings year same

favorable taxes due G&A by unfavorability prior G&A income XX been points. to resolution of was matter, this certain matters. Excluding the This basis would in completely year have offset in

So, year. EBIT quarter, increased XX basis points our last for versus margin the adjusted

more food inflation points compared Looking inflation favorable productivity approximately more restaurants labor Restaurant due leverage to mix. Restaurant with year X.X% gains of line our our increased period in just in commodity beverage pricing unfavorable continued last XX offset labor last quality. details. of legacy basis year to last this than quarter X%. was at closely was as more sales than and to We and same XX year, expenses. costs the under points brands about pre-opening brand our in costs by despite of investments Food and opened which were Darden continued Cheddar’s due basis savings by X% the cost and

as from favorable unfavorable leverage percent was year. favorable XX versus a basis expense brand a As and expense basis due of was sales last to points restaurant Marketing points result, mix by Cheddar. sales XX

sales experience. each quarter expense primarily the Longhorn great sales. growth same I margin unfavorable segment Dining legal the a still the sales profit restaurant investing these G&A Olive outcome Segment increased leveraging by due points and previously. by segments was Finally, in all cost XX to in in mentioned and grew of restaurant while Garden, effectively basis Fine by guest driven managing same strong

sales to Looking at the addition restaurant as goods Bahama grew than at impact and and Oliver primarily to to mix to due last same XXX adding Cheddar’s mainly Yardhouse was the last growth for of lower margin XX.X% this Garden. Breeze. the brand other basis year well due packaged business as sales quarter, of of segment, profit points segment Similar segment moving consumer out Cheddar’s

to Cheddar the update. Turning synergy

of later achieve project achieve speed great run-rate to the to and continue instead approximately We year of middle under end XXXX of realize no approximately our our synergies, between we of originally finally, teams X%, this fiscal now in at of XXXX. we are to them annual total $XX doing of these a million. to growth outlook. Based total growth the and XXXX original our growth and fiscal million sales the than the $XX of we synergies current faster XX% on approximately of and our sales these integration the targeted anticipated. run-rate anticipate million And year fiscal We restaurant $XX restaurant morning high We end realize fiscal increased the of XX%, just synergies expect same little outlook. are than new in expect full job each of now

an Our earnings anticipated adjusted from This $X.XX $X.XX of now is to continuing from operations diluted $X.XX. outlook our increase year previous to and full are share per net $X.XX. between

effect in quarter taxes. Please approval benefit are Also, still rate shares our an outstanding deferred Since today, tax final a many to anticipate terms bill we not to and diluted analyze impacts legislation. pending information to reserve count overall. will contemplate has does the share XX% comment the are the is not this any impacts our we and tax will bill We on going rate tax for be are us note, the the the legislation tax specific rate to required of details tax in revalue the received enacted we there forward. potential our that million from Based on year. approximately effective a of of average the know anticipating XXX have approximately we outlook

pending you outlook detail plan we to be adjustments we in XXXX January I great update neither effective will Q&A the legislation, legislation. our with questions. tax wish you Given reflect impact hope a season. and restaurants. tax the session. And your We differed reduction closing that in nor In expected in with holiday tax our family of the will to one we’ll all in friends take want of And included rate of the updated fiscal our are complexity celebrate today. outlook other the the have to to early providing Again, any the onetime not

Operator

you. Thank

We begin today’s of will the Instructions]. session now [Operator question-and-answer conference.

Our from first Bank. question Brett Deutsche Levy comes from

open. line now is Your

Brett Levy

you’re bit use of color are share you’re you. -- thank little. the on the gains seems share generating Good you to seeing seeing growth you still word you morning to a but and slowed and no you have just of under will competitive of the market what there Obviously, across a landscape? Can and weakness significant quick would question credit little have the that tip rate Where Thank pockets but are much on tax. you be say said diners? you. change know I I’d one impact casual also won’t how it to impression

Gene Lee

as tax making legislation. pending are on Brett the we no Rick said, comments further

once our update guidance will We in January bill passed. is the

them. ask a wants who So, it, for everybody as answer not on question to we’re to going else

our think GAAP we’ve been little we industry to NAV in if GAAP said stronger consumer far that’s pretty okay and an preferred shrinks landscape, we have GAP that clear benchmarks environment As and the to us. to shrunk may to with a bit, you a were and our referring a little or with bit as operate I our

As had great big we that a in think I our businesses, prepared we strength transpired, in remarks, all started everything saw I considering pretty September. we my said a in hole in quarter

it would growth benchmarks, at I’m look I is pretty think say I feels out when the seeing there. X% in consumer about the what paying. I good

they’re don’t I positive through now. different be getting good. and still environment right in I the price where But all couple So, right it there that know now feel fairly feel that or of they out it’s it’s could promotional ways I mix. a I getting like feel just

reactive are doing what an I using that think whole to the the consumer they’re all is from people standpoint. menu, incentive not

So, it feels good.

Brett Levy

half are implying seeing achieved And and Thank on that we’ve guidance in giving in the then there to the something is half what second is your the first year confidence? topline both greater you just one you of or the comp, rates follow-up, that’s just the you. that

Rick Cardenas

going in not Hey what half We don’t the it’s this for better. get and the guidance get implies economy industry or Brett better. that Rick. its the going The in better much some know just to estimates gets first the year of we until just assume it’s to of is

we’ve the prudent given guidance So, we today. is based where on are

Operator

Markets. from Palmer from comes David question RBC next Our Capital

now is line Your open.

David Palmer

an on that improvement a reform? what and to that’s easier and same is have good look you for behavior industry across you an Thanks. even struggling Thanks, lately feel see you sales Do the of that what before thinking any consumer in the casual this there calendar for like year morning. the quarter confidence how on going going than across is you menu. terms a I’m can I’m that and will you up. ahead an would that This coming is industry store behaving an the leaves dining ’XX, sustainable improvement comparison like is gives bit create is that various concepts key there empire perhaps can fact the to tax and slices outlook see for obviously given have

Gene Lee

that see are good to X%. David. feel category to going are brands Hey well. to well been well over equations approximately that I they share. is positioned And like those are when look morning have continuing I strong has for to approximately billion landscape are $XXX the -- This take growing value that continue do continuing positioned, I the

value resonating propositions be struggle. your the is it with little a your and are If offering consumer, off could not

aren’t. that dangerous the in overall people deviation the been somewhat benchmarks people to it’s I well think the are doing focusing performance the who compared because on industry of is such

that have on March bad think give you a control. we you We impact restaurant because has look comment if But and momentum we We’ve and ‘XX don’t could the any get we always might can’t short-term nervous can’t overall think is out on is we guidance year, sales. calendar the given pressure our think that guidance I of weather of a fiscal January, on put December, our February of And business. winter, control in that. what half same our what for little like. back we So, the

good consumer said now. the So, question, as to how our pretty is Brett’s about brands I reacting earlier right we to feel

Operator

from comes John next Our from Glass question Stanley. Morgan

open. is line now Your

John Glass

be Thanks it tax like very would guidance for responsible you count hurricane observing may may were the some your and you much. impacts. but can and you’re Rick, share just and expectations, also previous expectations earnings comps sales you split be raised first, to both that but units for seem raised for

anything example do the -- is that? those are puts that there else or not how and you takes for something G&A right by that -- what is So, moves explained in or

Rick Cardenas

One, earlier John that that a not a an that a quarter Yes, as we but of we I settlement we couple did this of settlement didn’t bit things. we little legal this had quarter, anticipate. said have outcome had

as the beverage, in cost is about you labor. X% also that talk cost We still is include we about G&A of G&A of -- am our -- sorry a and we in share. to are -- that no food sales every I when But going about move total saying $X.XX tenth inflation

to closer the saying to little lower still than it’s we’re bit the our a value. right we consumer and may So, X%. in the than be continue also, at And X% invest invest X%, are X%, going in approximately just

of before for in as get we invest So, we if we consumer that some some and have incremental back that revenues, said do we our have hold may long-term. the

we in did legal. which we at of that increase tax our was in even we have of the benefit offset range though bit be, to a place our little and end high why that’s the believe $X.XX right is So did sales still

John Glass

the X% middle about LongHorn’s. may lower last in little Olive X% little being And quarter be at in bit above you’ve but been it, higher range, the at may pricing of to you than that conservative a talked be Garden in a slightly

may be if you little competitors’ value just higher do than feel be the lower a update like to you still in can So, license little gives want you maintain or pricing that proposition? thoughts are, that what industry that you to has on your bettered, range do more

Rick Cardenas

of cost goes below couple in said Darden’s to if to leveraging which that start Yes, we a always our Even and up competition long-term of is, middle Olive generally X% to that in as price X.X the and competitors you Longhorn -- framework always X%. things. our Garden place mentioned, more [ph] it this inflation somewhere that is was we much prices inflation between of and [ph]. commodity strategy we’ve price, inflation. algorithm, the that quarter. our And advantage, want believe said Longhorn, Even had X% of Dairy quarter, because be. inflation is X% this below a our cost was right One though, than I Olive think Garden

as year, still Garden X.X So, about year a for the the be Garden it’s and timing be over we think Longhorn about Olive that. below think also We Olive will thing. will

Operator

Miller next Nicole Piper from from comes Jaffray. Our question

line open. Your now is

Nicole Miller

industry should you you’re the specific be could calendar benefiting enter When then be and year? how be breaks in-source. point the the [ph] and Could look from we to test at benefit question. in out-source at what Darden. First do a on a you point what look that as permanent doing price sale and that And

or and sourcing you something delivery $XXX you get $XXX place, is are marketplaces if a Is maybe a testing. when in there $XXX. of you you’re outsource lot example, of still or For test lot over that

Thanks. to So how and when? who’d you’re go starting,

Gene Lee

there in lot Nicole. A

convenience. still got that done we the to start a me that data for the a consumer consumers The Garden. job ago are with years with take that. Olive really at couple off-price needs I looking Let back satisfy express some of sales. that of We’ve brands that can convenience. great the where, identified We’ve

part I state up with I And need today. more see come that away, to I need meet think I think don’t of to going increasing. see innovative that’s we’ll permanent continue that equation probably, state a way that need. our

the on as we’ve is learn. that in thinking scale as, to delivery watch rise some multiple we’ve the we start someone said those far and trying As got third-party create to about marketplace, are we’ll delivers. in and before, tests going space believe We we up going and

that competitors watching also themselves. are it doing We’re

test, kind space how going we’re And We have in whole we’re watches doing that. decide, And to small a of ourselves. we’ll develop. participate we’ll

attracted delivery running us where than very large Garden still in party market delivering That are the catering pursue average for over point $XX and in time. $XXX. We lot this Olive a at order entrees makes sense around to is more to

and it’s for see. us, So, wait a

the process, where in our engaged all companies engaged delivery very around with the we’re We’re that. activity and third-party own very

see to how develops. So, so what these us, things

Nicole Miller

separate And basic even there one or And Garden ranked Thanks. is recently have of quick of on is there follow-up understand, a Glassdoor's up saw return want now believe, just a a strategy, topic. what that I as best I function more are I you to come? place to the showed Olive to in that employers. topics

Gene Lee

And We the every decision our we through. if we have run ask is we how a member does make a win decision. question filter first team that

an our of it job take that’s team our to every opportunities does we’re good retention doing And think moved they as our of not second our training care thing, to it rates of then – we’re members. culture if you results, have right But is and day one when taken get invest XX% programs, right a members believe our members, win make has doing in a doing then of were our our guests have great. management improved I see the a just market we’re we can The our ranks decision and care our team manage all, believe continue are employee award actually to advantages thing team we comes tightened, little trying I we we’re our our offering we not these we to our member the awards if believe we growth guests, single the team We’ll think from in is competitive we and which even we four great guest for how bit. win.

Operator

question Slabaugh next Will comes from Our from Stephens.

is Your now line open.

Will Slabaugh

about Cheddar's little bit positioning other bit as you such more to about valued guys. with concept Thanks, lot and can there Want to you integrate to business, talk end moving a than of a a Yeah. pieces but probably your rest Or that it leave fast Does quality earlier? to QSR pure seeing we that simply messaging or mentioned integration just think concepts. better more vulnerable of the value improve dislocation do you casual? of you and/or are from ask the

Gene Lee

No, think I the opposite. don’t exact I think,

this only doing than they the data I research, a to more food the the out dining more at for under to in and at full think during -- Longhorn been is at sales having the this year with they with one integration about a happened brand, us We I a and the only average couldn’t for guest. except learn -- brand arounds, for higher trade environment they casual continue loyalty, where it in there service our from know and was really history. about we full a and decline to dine of we’re that restaurant what at same people believe an And check surprise at we And Longhorn the about where against. a Cheddars under operations casual concern work just I competing are are experience -- and the Yardhouse, out make brand. and and for all, that people look quality in negative accessibility This way admiration $XX its it out happened doesn’t the eat have to most go is made is their think of ever it very impressed comparable call is we’ve $XX strong I the team some goes our a dine little provides inside the scratch XX who budget. year dining was and comps probably when bit can had go

operations up that the inside restaurants, XX would operations restaurants on the of or two other Those make approximately is restaurants percent. that, acquired large are it Those owned believe real The we’ve Cheddar's them dragging XX franchise company are bought. of the approximately of of base thing XX% I over drag there add a the I well Cheddar were system. are significant we that base that down,

make are we standardize were different, somewhat it check, for fast we the enough, getting drag some mentioned we and remarks, are to and long-term. go sound hard somewhat acquisitions, their is a different because believe, our As didn’t we decisions And the menus, that’s we’ve pricing menus the in to. drag let back I we as were negative standardize menus lastly too of have and These look as couple we integration our when on last my integration on we long. philosophies

the two what they’ve systems fund and we and actually during we’re their this we franchise that I so, push that’s And we’re the close the activity POS were systems And will so us we first, so as for we the integrated do made going determination the get and restaurants this most hard move data actually the choices get us because to other had to is businesses doing analyze saying up important quicker weak. other our just can getting that most our make help strategic to that we so systems thing by in forward get the these to to start drive right brand. side to

comps, be X, and this XX good is leader. months, get the will X, not another has we of side business up short X,XXX growth Darden. this Once to Let’s incredible undisputed will value on guests this other quarter-to-quarter a which be loyalty a the business does term hung for get week, driver

Will Slabaugh

if was the Olive Darden off-premise what question up from could And I growth quick on you one earlier, the Got give it. follow quarter? did in

Gene Lee

XX%.

Operator

comes question Brian next Oppenheimer. from Bittner Our from

now is line open. Your

Brian Bittner

thanks guys to happy and you. Hey holidays

something there possibly that accretive to the reinvest you’re let flow back extra be going or this Is As P&L significant from it the today? and you they is that in where or with you’re price something to accretive. looking think going it just about be What’s money XXXX to as you the about are the start accretion synergies and to think through the are value? strategy

Gene Lee

Brian, Yeah, we business. detailed a our every with of I each for start off think plan year

The important to us the into we more come look we but work and through for and and next is looking do scale really even we we’re experience back and at make that’s really our advantages talking at year employee, fiscal first we’ve share or so guest do do always it compete make that at next how constantly thing we better? effectively. year that about into and market already how we’re the look business, to not what our We really, experience our and able grow either investments be make

Brian Bittner

that Thanks a just for the of other with pick of conversations with clearly lot in all and trends and couple for didn’t participating do that the this outperformance you you’re that expect following always your is that but gap industry to I we throughout mean me narrow, improvement should up it narrow when have seeing. at and said industry sure up years the much questions, least Gene last

just to of side -- get just that on kind sustainably to I gap the token appear as it the does other the because like want industry the of you’re one with remains So, the I on the with of but of industry brand feel narrow the I’m kind thoughts I like mean your to, rest versus trying Garden Olive kind trend you to the on healthy. benefitting expect

little appreciate I maybe just a that, to more So, can talk you it?

Gene Lee

continue a what’s The it’s experience. both ball growth and the going the sales look experience do crystal we to increase important. our to more garden. me employee food way we same quality, asking what’s of Olive we the and and at try restaurant our that’s billion look restaurant look whether investments, whether at And $XXX our relationship category, we up happening, think that’s look Cheddar's share we really value through really of and whether We happen. the The make right the we [ph] becomes as the move new is important, for and value price growth. equation the businesses you’re it to and to if we underpricing advantages how mean project I improving mean at into improving inflation, I each continuing

So, report try the are ought out doing players now, as possible. six all benchmarks, say something to them we and if overall not however, that you not -- we because that out, the look we or -- hard possibly the it benchmark. are top at five we always I’m as in out. just we’re beat as not working And we I to sure not opportunity we to if sure you to that does but guys, industry plays plays of the we get telling that’s them they’re improve, right to much industry it as can am But look share be able the at to total the continue

Operator

The David comes from next Tarantino from Baird. question

is line open. now Your

David Tarantino

the high to be don’t on the I from question level see that it may about pretty philosophical Hi, specifics give want Gene, morning. impact. going good to But benefit meaningful a tax look likely you know reform. a you does that. are

lot tax from benefit it there if a opportunities reform? you might so of So factors? there investments how you talked a from reinvestments big reinvestment far. You that about are chunks the out being windfall of think or might you do -- potential there big you pursue get are is get think to comes you But when about

Gene Lee

biggest you the you advertising. and difficult we do ensure brand the I think think and in brands the some there brand much do constantly in that alive. space team out restaurant on experience Great is is members how our a Well, employee your is than thing put to bring up it about management just consumer-packaged goods shelf we have more that the we where best

We life members every that single our brands bring team day. to that have -- employees

overall be the most for the investments about to team our members with So, nothing We think about do with on about improve what’s think we experience? if members we general, legislation. moving the And get to to have in I competition do when going think think how they How -- important I investment we great element to forward. do is brands bring life? team going the

David Tarantino

you just reform, doing? just can a from I I -- meaningful at guess you think look do so do those how windfall I philosophically there the are to can if want what in -- this investment cycle to you’re investments you benefit in kind offsets tax that you or or clarify, already embed you understand of a or get savings?

Gene Lee

not to -- sorry meaningful we mean reform. about tie I of are about you benefits talking reform, about going am to tax I that this not has tax anything anything we’re talk David,

talk and We about investments think question. I about general will it but how answered we think I’ve already that

Operator

from question BTIG. from comes next Our Peter Saleh

is Your now open. line

Peter Saleh

thanks. Great,

of X%, like that some the you only yet you line. get to or and we is Can talk of running on your kind should seeing these on gains a gains are modest those or you about deleverage end are wanted going what inflation it year? the gains lessen are expect labor the the we wage bit Just ask, to be seeing, productivity they you they going are through have to little around as sounds -- labor inflation wage brands what productivity

Rick Cardenas

Yes, it’s Rick.

productivity across how to we’re getting. system. productivity, Darden brand going tell much I’m not seeing gains We are you the by

Although, continue few we operations hasn’t if getting our helped. restaurant our sales And the are to simplifying earlier, doing and that gains. that did you the leverage the think about as productivity finally, mentioned turnover also, what simplify same some really are moved last over And most much. have been we’ve brands we I years,

is you at about to think our better you more. lot learning you’re folks. their happens happens just getting productive members we’re to you team investing than job, new when What job which training turnover when and with As have what their train more training in turnovers, our a we’re is what become doing dollars hiring have

more great last of we’ve have you feel over are when So, that the made There brands gains we the really still few about Go. that, To all productivity about some years. think

have along been actually in that the brands Some further actually cycle.

might productivity these that offset inflation, they a with had with in we the gains they’re productivity X% we So, for pretty stopping able which is little But and say we looking a inflation, high not mention, And to took. that were wage about have less. did you but future. did the moderate pricing we

Peter Saleh

on just business. go of the side then the And [ph]

lot I in. from phone-in How online orders? I Go. think guess coming What growth do coming Are a for orders online To versus had guess that say, I more you you seeing stand we of, orders phone-in of on historically,

Gene Lee

Yes.

that. approximately do online we online. data when and lot grow. We’re people via XX% they get to now Because we continues we And do of to get it a incentivize

an And to part end so, over and operation continue as simplify helps of of try much that we’ll That’s are But a possible. orders, with the more over driving. lot in that’s the hard the calling migrate important they of best while can. got to as people the just process, it home. business online, At of we to the do those driving we we’ll continue when day, you’re people to

Operator

now next comes Matt Guggenheim Matt, is open. your from Securities. question Our DiFrisco from line

Matt Kirschner

follow-up the questions just of positive? couple them you including clear. traffic want two a than be had Did Just check, at was Cheddar’s to I negative full was the of so and negative stores say at check, here. more franchise based negative was the

Gene Lee

No.

clarify. that right next And Grier me we purchased which a purchased is were CMP shortly franchisee, systems the bought XX% overall -- thereafter. make the we system. their the They of that to as call Cheddar’s franchise Let restaurants then up two Those before of them. by they two we negative largest refer inclusive we what

integrations doing dramatically. at has X So, and we’re once in grown essence, their system

wasn’t by said restaurant And… XX% that, the now are XXX owned I maybe that company sales were was I dragging what down same Now the and and of restaurants points. basis clear, franchised

Matt Kirschner

in XQ they well? as Were

Gene Lee

XX check we approximately just Yes. negative we restaurants brought, the And a that because Grier had menu. standardize CMP to wasn’t in the have Grier restaurant. we

restaurants. are So our great of franchise people system of the core was part that that restaurants, a the this independently bit And negative check but drag. franchise these -- great is run little owned company

to to company energy the operating of standards restaurants. there the get and effort them some to going So, is up

Matt Kirschner

Completely understand.

be compare to a of bit it you had correct So, composite X base? it a of down down different little the X.X to wouldn’t and

Gene Lee

Yes, that would be correct.

You could do that.

Matt Kirschner

Okay.

Gene Lee

a restaurants CMP are the drag. Because

Matt Kirschner

mentioned And -- now you FY then is the the of for correct? XXXX, target the that middle schedule ahead integration of

Gene Lee

is it fiscal Yeah, XXXX. Yes.

synergies integration. Sorry, Matt the it’s for the not

of So, them continue we have works the to time system systems just that, That’s by integration, and is most going to in we have we performance data this the fiscal is going have than those the to it’s understanding it’s those how longer. take XX learning where the end integration I a work run-rate improve But the going and we a on fiscal will run-rate to saying fiscal to systems of that little the we and side the but by get do expect is end to the to integration, on done middle the months, the integration take help the think expect the were less at XXXX. of system the the thought will expect take then learn take year, to data versus synergies use XXXX we fair. the that’s fiscal XXXX be basis, basis that do the we of

up there. the question So, sorry messed

Matt Kirschner

reaccelerate growth thought if forward, that perhaps more sooner what it of would six than have moving looking guess growth I could maybe be be correct to would a back to everything or you months bit to say little So, it the is potentially bring assume Cheddar’s meaningful you brand ago?

Gene Lee

et takes because little us the to Yeah. still pipeline things and find XX data we that the sites while open restaurants greater we’ll that XXXX, to integration the using it’s openings outlook. that fiscal going the be that up site longer We you a Again, use pipeline. of and and other in time little the faster, is site. a rebuild going do just bit to FY help months, us XXXX give just about it’s you’ve we a build talk could when to got take Matt, take cetera little to just number it to when But a find expect pipeline. will

today fiscal we’ll least open in the pace we you restaurants that would XXXX, we’re more tell in So, XXXX. talk still at but to at expect them when us I opening that about

Matt Kirschner

as store it same sort everything trends? the in a a recovering out a called Understood. sales far is pockets. last regionally that on reported or that of strength maybe bit tell or be national much And question, that about waste anything of hurricanes did there as pretty noted or should quarter you as cost little seeing the impair, margins is -- disparity you they of then the to that us is stronger in wanted happening as was have meaningful little you Or did the far any food structure, in

Gene Lee

they and that. it Yeah. when quarter, total $X.XXX get restaurants down But or XX What we we basis close Matt, so about in a points and for I’m the volume EPS. closed down points for sorry quarter average. happened were the was about back turned that we talked Florida. basis quite originally in that thanks had impacted then those some restaurants in we And higher days. restaurant are Florida, the in the in it by What be while system out would sales in XX us in - for same $X.XX impacted the did bounce thought in

the brand it quarter. And each was so, for company for impacted for Darden entire negative was differently, but in comps the slightly

just On bad. instead as was EPS the turned So, impact basis it out to it wasn’t basis, an comp it’s negative about XX wasn't because points, negative. unfavorable of $X.XX, $X.XX be slightly

and restaurants we make damage. that they so come week as the boarded have had mitigate were a they We didn’t so any did to food before written-off. maybe to -- to very Now, inventory and up write-off, some sure proactive help write-off. closed be any we’re did primarily food But the were proactive is $X.XX much the restaurants some also have we that were that has things that food hurricanes

So was instead the about instead X.X. quarter about was of negative in it comp again, slightly and three for it $X.XX of

Operator

from comes from question Bernstein. next The Senatore Sara

Your open. line is

Sara Senatore

you. Thank

could. couple I a of follow-ups if Just

I I about SKU the and items. LongHorn was And to if if growth of then XX% pace max menu signaled or Go the out were what instead wanted state be first outcome mix the To ask That’s that recognized steady XX% about, as in that talking you think First might quarter. sense that’s where guess of was you might wondering overtime. hadn’t I reduction it I of have the reduction same on any growth the of that you question.

a it and doesn’t know at that’s club [ph] seem been comps we You sometimes restaurants see like that case. has negative the that impact on

and menus to do key So you menu without came maybe impacting traffic? of reducing talk can the those Thanks. out about you where think the size sort what is

Gene Lee

Alright.

So, quarter. state a consumer to with growth Garden, to to Olive going strong I to really I increase is for to about let’s is need think is Go to was We start that. the the continue continue thought us need To XX% continue quarter think going convenience future; the -- the for

To average over inside an We’re doing Olive million are got well restaurants on box $X doing Go. well $X.X we’ve million over Garden To that and Go

to we about you know state needs as innovative. consumer need So, we continue think to in grow. going continue into to the We’ll future,

handle we think to the I do to I like of systems coming can XX:XX. better Dan volume. pickups work to improved, interesting and the continue with do lot business the Dave one the of on a business things actually up on biggest because Olive It's and and operations as is XX:XX Garden an has at team our Go improve

can volume. the before so up fills use it to they the And [indiscernible] handle

guest to we the that available. improvements and is offering improve continue So, some the I operational make. to to remind relevant there think can that continue its the We to stay can guest

travels be. more type we grow can said entrees our of Primarily do to publicly to it we business. state the want that so have we that need and so do on saying We that than of and where well if -- can bulk just we’re this the continues can think overtime the bulk record is we consumer because be XX% food

much the the move and the were think the had small in to me have great over to and over of our of labor I and complexity the fried very cook menus of increased even and in I while kitchen stakes, operate gets, the too items job done over to the can that two the to that of -- kitchens investments one through and brands, the believe simplify instead execution of do it done, feeling as an down, stay LongHorn the that able a And basis. feeling food the and in timely better great increase menu quality operation cost order Those is making businesses, has in promotional great done to the more menu food LongHorn, what we some taken to bring SKUs we’ve LongHorn the last the us size finding the we’ve simplified reduction the increases cost improve already, we’ve it great our our number productivity high consumer, we efficiently. of the the removed mentioned quarterly same we’ve in for still appetizer just been activity we them improving And items items overall that And continue as and menu consumer LongHorn for having versus we’re complicated, are and some our fried down the the we’ve the and overall team more to manner. his on the too -- quality labor we is there’s were And be be complex, a operation. Todd low having they what a we much need having that stuff lot all appetizers. that the been has work new helps the the simple historically of simplify years, on And three on introduced reducing thing value of we’ve -- to a duplicative operation, again the great steaks removed a have the product. reduced operation. impact. to we as menu, through that that we’ve cost and all are have further Let really

Operator

comes next from Stifel. Chris O'Cull from question The

open. Your is line now

Chris O'Cull

morning you could at that a guest occurring that all guys. it are and Good Gene, the for experience? changes not employees ensure eventually Thanks. do environment the work difficult create how do Cheddar's impact

Gene Lee

the integration The us past systems. is back Cheddar's integrations, actually are restaurant of pulling the big team push others having old the had those where where systems That’s been restaurants, invested and systems difference little in this very fairly to so a of they there’s information get change good from just this on in easy. because and our we been systems some to systems some changing in they in, than working are the POS

the upside and are They those great the systems industry in going want Cheddar's a stronger to them above they average they Here we member their take increasing XX% overall be XXX% in huge from are superior. much believe and retentions team the operation. for team benefits been soon with. impact We package if get as them -- been the down turnover have Right they have norm we as to think to our our work huge can to just the systems their going We is have members. that it's overall retention. of can now, a on employee believe of there’s

with talking working teams his the indications they and job systems and we’re that bringing. all the getting has and believe that we implementing systems are done feedback. So, great are about a that like Ian we

performance this I going is their So, enhance really to think overtime.

Chris O'Cull

you satisfaction process? any seen not this So, have guest Cheddar's to with the changes at scores

Gene Lee

No.

Chris O'Cull

changes at then And Okay. LongHorn. the menu clarifying one just question last

items SKUs. menu But through You on that what mentioned the consumer or the facing would percent experience, terms what of in you’ve taken reduction consumer menu in items? or promotional reduction is the the

Gene Lee

different tests and different we’ve got different out and XX% products almost in we’ve got there it's market. Yes,

pathway. XX% So, really job a lot there the it product in how delivers it’s Garden than new Olive We’ve done the to back cadence somewhere, to do on And with XX%. management brand consumer. brand is differently of it’s good to a approximately a Delivering job; consumer good introductions. and that has getting really their our the promotional done the

Chris O'Cull

whether reductions? through has you purchase of many going those has to that guests cycles, been frequency there my enough so And change question can see was, a at

Gene Lee

increase frequency that We Yes. quarter our We were tokens. in in an every with measured definitely seeing LongHorn.

Operator

question West Suisse. comes Jason Next Credit from from

Your line is now open.

Jason West

it how Can you current you like and the with holidays upcoming any [indiscernible]? given holiday quantify impacted impacted in the one shifts movement think you that last year guys quarter other shift. the how or Just

Gene Lee

versus shift it’s Yes, last Jason, Sunday Christmas to Monday, was going is The be a a than minimal moving the last holiday really much year. it basically from different impact to holiday year. not

Rick Cardenas

impact, weather a which though. could add Year’s weather quarter a New got a major could are fiscal impact. in are geographic be the Let third me days Day, we so impact impacted our an There just area in on that major and have or covers and big, leave key that big have mean, I quarter. Valentine’s our days cannot event quarter have large also

Gene Lee

points And year's Yes. was last basis unfavorable. XX shift holiday about

So, much different than it year. this shouldn’t be

So pretty this flat year. much

Jason West

look Thanks. there year know seen you overlapping a if of I the Gene, driving the to election have bounce the is And what’s month-to-month. what’s months or don’t the pick-up it of do anything it decent on in that is lot backs we a any it’s hurricane going some that but have driven last the regional thoughts hard industry cycle based? get, with But from seen or last from is by couple consumer know know had your see I else and you data stuff that broader if in don’t you I and in

Gene Lee

we’re being a said fighting been overall, other industry places. in more is just do consumers, consumers not their before, amongst that rationale. industry ourselves, those the on little fighting I I’ve And spent is The that fighting we’re discretionary for dollars. for have call think dollars this

innovation has there doing industry is there that that been a job. macro a there don’t out better I we’re the and again. I think and think I people okay consumers pushing think think I we’re is says some trend attracting

Operator

comes question from Greg next America. The from Francfort Bank of

open. is now line Your

Gregory Francfort

is for just or Is Gene. questions. and your brand, of specifically think had Cheddar’s. one you that in do that like is reason It or think steakhouse the What comp super high-end is the particularly big X% legacy two my One the does high-end saw have and is also driving the for months quick other on the guide. category that And I include Eddie ex-Cheddar’s a improvement, the businesses. you has it last pretty seems I and improvement at for what couple in definitely is V's? the

Rick Cardenas

the comp the anytime the mentioned talk year brands, of about for call, is our Kevin exclude fiscal will Cheddar’s for Darden as this we X% legacy on restaurants. beginning comps it The

Gene Lee

I restaurants it for our disproportionately out and good impacted consumers really our think and to Sean us feels a doing so, months, had V's. there, Eddie flipped business being our brands had are not Texas there now. on and really people dragging high-end end the observation And That high-end Texas category the for really a Martin halt they consumer, few was and XX restaurants had out back they an we a growth better came the strong hurricanes good on presence high that’s very the for a drag pretty a the about that leading Eddie we’re not and well a with has are very are they positioned, Eddie of Texas -- number, Cap up is Grille good would is that say I and stopped really doing restaurants Vs, drag. Good also high-end kind us. because incredible were brands in really both travel opening been And came Vs, in which job and that. excited put restaurants really great in maximizing celebrating, those very, and constant

Operator

Next Jeff Farmer question from comes Wells from Fargo.

Your open. line now is

Jeff Farmer

hear a be discuss would reality did should loud of When having guys quickly tax by reform, able end this reform that, end you form guys share to and have I where next your you. this of reports get the the Thank mean And any what just to what said week, January. the become details you till to tax to on Or but more clear cash of expect by reluctance to year. pointing in to ICR to might some this specifically March reform to and means reforms your your business. could is either late we might when your wait of flow? situation assessment P&L to

Gene Lee

Hi, analyze we expect bill to the when Yeah, it’s Jeff. signed.

in it the of We’re reform to early ICR. expect tax impact of beginning analyze we ahead January have now, to but

Operator

from Jefferies. Next from Andy question comes Barish

is now line Your open.

Andy Barish

Hi, guys.

up million the in first $XXX buyback your pretty You to half. are here bumping close

free thoughts further Just comments on usage? to shareholders, cash or cash any

Gene Lee

years our Andy, now, the said XXX be given Yeah. framework. below above are you we of that that, close as you just long-term up high count for can to as are is we we our said where there could our bumping we’ve have end Right it's And it, we share be which it. years year, million shares.

could that our probably lot go don’t buying did But million. a year we right anticipate $XXX whole over now. see you last we So, a

for think the you going I guess for for and other that we of count return we’ll will of end have uses year. now, and we buyback the share what what as the given the best of But So, right for whether actually year. we’ve Well, about shares. we’re capital indication see average be to our the go our ahead capital,

Operator

The Holthouse Karen next Sachs. Goldman from comes question from

line is now Your open.

Karen Holthouse

Hi. tying maybe pull sort what you proactive unit from We’ve potentially more out of and before you really there. growth. years tying unit are about on of should years not commentary profit plans would quarters be positive Also, had to that or X.X decision How this to we simplification would in a in you’ve you for growth on process into of and growth? in core And strong think reaccelerate. want How comp now pretty pretty markets. a couple trends of far Longhorn outside back two

Rick Cardenas

a years over to X%-unit mean, few will what about that In of that out, for is Rick. Hey unit. to growth, of LongHorn. the LongHorn Karen its framework Darden some the relation talked I our long-term from growth, know X we have years is unit last you from couple sales about come

and opened catching about very kind that we LongHorns a you kills that We’re in any know we speed rapidly row brand because right know and to up to reluctant of two we’re talk now. XX accelerating one years

in. from a teens, getting So, anticipate we’ll be openings. line is but that future, think of of more year as or out we’ve high a bit I we numbers few the in this give think you the about LongHorn and wouldn’t there. a there, strategy then in think in beachhead at right about talked But from a going way teens, the FY’XX to in at I have June. months little that’s we’re where that LongHorn we filling and the of grow looking continuing for already can to we end looking the and now, find We good by we’re sites restaurants markets actually new generate really markets pipeline,

Karen Holthouse

a for more sort at growth on guidance, that that’s then from you would account of that the look in and What growth of teens then the the the if quarter. high It question would second of there other line in midpoint benefit inflation Are first of cadence? legal into you pretax saw that? settlement is mid-teens to And profit this something more seem from EPS half towards are be be what I should back think just focused Cheddar of about half we think that on the drivers a items half. or synergies would individual despite decelerating

Gene Lee

around It's on year. inflation anticipated. of going and last the one it's in X still on year growth than range really and is we the in for be is the back the rates of strong we’re But done a double-digit to be we as things, the X slightly higher about X%, growth but half year ramping just X where and to think Couple around as half last said we have of before. you math, you’ve had higher around still slightly somewhere

So, while say think still would after we if long-term consider it's growth be deceleration, rate framework a framework that don’t earnings our our we to long-term that. XX% tax -- and we about above you and X that above still

Operator

comes Risk Management. from question Next Hedgeye Penney Howard from

is line open. now Your

Howard Penney

so thank Hi the and mind. much you I for if questions, don’t have two you

attributed your frequency. increased through at success and First one, increased menu, the LongHorn smaller you execution

dynamic in X% competitive Chili's a Thanks. or view market share X I they is competitors casual good largest deploying fairly that was go to down dining casual shift X% dining. One as strategy. how wondering similar a of your a in as plus space the you also from

Gene Lee

back. it thing we Yeah, we’re as menu I about finetuning pull think the one LongHorn,

than little mentioned. a bit the that you it’s think I different competitor

every a baked forceful is know weren’t very menu lot that with that of six in and that And new we’re familiar butter. weeks way experience potato us introducing sour working and hard for a you’re hot Howard a a lot really a items of on hard. with a cream You LongHorn real weren’t and had or we LongHorn quarterly working products basis great

a operation, to competitors’ done comment out has us. food strategy. And our need simplify correctly, we to really on get going what faster for as the So, the at to that’s stakes we’re it we simplification our executing cooked am higher and need level. get I not We

Howard Penney

delivery are and second delivery that hesitation seen trying a are just opportunity of you suggest am they towards a biggest the replacement wish LongHorn to that for some work on live. and using what at I home. My from just I I we’ve the closer consumers had to -- is your where meal understand a seeing, delivery of

be So casual incremental very that industry. would the obviously to dining

that So, see you if I the is am that detected don’t as wrong can but don’t big? about delivery know to want just being I you. do you it to that, maybe you or you a with go opportunity hesitation correct it Thank who me, yourself or

Gene Lee

Well I going partnership. economics we answer, I parts of like think are answer there’s number, and the who the to partner current to -- the don’t with your two don’t we yet know

are doing their am good both pretty get and understand are profit it I And with well a internally. third-party profit think and so, doing our will to model some we negotiating -- to leverage to are trying we once I And trying this a have understand or of I trying we ourselves. in model understand those developed they models understanding

business. So, the not on hesitant I am

a business. that I just not is think the economics. going current good business to am I live with

live We economics. will their do we with ourselves before

Howard Penney

Got it.

to over you. keep to coming sorry So

you not as share growth other the don’t it’s categories, from economics? the So, understand taking don’t in that you delivery just see

Gene Lee

me. not I understand going enough give have there for discount They to there’s profit am them their are And scale them. because I and much too in they favorable not yet. don’t

do can looks are like from do model resolution to their profitability us we it And what us. for it to a get they trying for better and profit looks understand If a will that pinpoint to not, if what to what and got like standpoint, and we is so, want ourselves. we

Operator

comes Alex JPMorgan. from next The Mergard question from

Your now is open. line

Alex Mergard

long-term have order X%, comments I growth? and in guidance the for your there consider be LongHorn. heard colour I helpful. do to up, pipeline how you Would follow-up is execute on X% new restaurant mean, Any cap a shaping more would growth? of on that on that you a I your exceeding consider self-imposed

Gene Lee

have X% Yes, for is Alex. framework is we long-term The of couple X% to people. One the reasons. a

going capital, share the and doing sure brands the enough to in we And investment. them be to these the some are in to people ways to value. going X% But X% all strongly make have other to creating We too strain the have across we return know X% below restaurants that that it We are above we open we are great There job but people spend to to of brands average Darden capital think above significant a range Darden, with or we also are have some if restaurants that it. is a high dividends range of on and the do and think it’s brand. X% on puts and across get have whether be right our amount X% the knowing we buyback. these open

is all amount. of to want X% we including restaurants, we balance right to the So, capital spending our new think X%

Alex Mergard

been a on some restaurants to restaurants. versus independent one I is time the It's your it then that that that appreciate any dynamic? that. And of And trend we've final Are right. be how impacting All follow-up. seeing now. chain not may or changes business? you strength for And seeing may

Gene Lee

Yes.

cities. big urban issue that, for and of a House is brands. suburban and Seasons our located whether areas. in the more Yard In areas independent think And I XX more upscale Bahama in upscale we real Breeze the of happening growth see these they’re more or

that We’re of and Garden. not an seeing phenomenon influx and LongHorn restaurants suburbia is are not owned. privately Olive really casual impacting in an urban This dining

Operator

from The from Strelzik Andrew BMO. next question comes

now is open. Your line

Andrew Strelzik

These that now. inflation some through provided low-single-digit deflation. here. you’re that one pretty quick in one attractive have the just a stake you outlets is we’re seeing of some I seeing But

that going I’m wondering terms is you outlet. that that, you have the guess, more or in the market that there beef currently of I optimistic hearing forward? So, see you or that due something Is the to makes coverage what’s in you’re

Gene Lee

Yes.

long fairly in now right We’re beef.

and are covered our along teams So, the good way. we’re making decisions

Andrew Strelzik

a the about, face lot step-up when nice on a of when things see think there. guess, look margins talk sequential LongHorn the about some in growth a initiatives so to margin terms that we at start the you’ve are of initiatives going of But at I it Is reasonable Okay. in we or you. type point think I expansion. a reached that that margin that and sustainable I then moderate the you more did you Thank to might is assume see do LongHorn? of this

Gene Lee

is forward. seen And to eventually LongHorn. deflation Andrew, individual talk become we’ve couple for productivity. to at going years, improve beef going And of still a years we’re margin going ready we’ve brand quality is to and in the labor improvement LongHorn again, last not and going about work think the because to had lot invest some at last margins. that deep they’ve just the more margins inflation also forward. deflation there over Maybe We help that continue beef we’re Simplification of not LongHorn over had the few to level

years last you drawing months. are the Although, ones actually the competitors over six Garden or across look to really our to last overtime, few we if only compared margins

important the too getting that think out we to So, feel go and margin, don’t We where to because we far is our margin high consumer of value line our pay. we basis points, margins is. saw XX can But our expand that what’s go in after, we we to gains about with XX have still good framework. Garden on is productivity to which willing our to is that too what want costs we can continue our do long-term across

Operator

comes The Steve next question Group. Anderson from from Maxim

now Your is open. line

Steve Anderson

But been modeling have answered. questions my just of purposes. Most from

when XX-week ask, your to next want year of place? Just fiscal will take

Gene Lee

that next years, to I not probably couple but a Give us out. fiscal a that. It’s to XX-week, in it’s. get think second on sure. back find of pretty you year, I’m We’ll it’s

Operator

in questions no time. this We at Instructions]. further show queue [Operator

Gene Lee

opens we’re we to think call with to release call. And Thursday before March to conference conclude happy in ready season. remind Thanks I market to third today’s the that a on everyone everyone holiday And I have the participating Thanks. call. quarter the results XX, want for follow. plan

Operator

for today’s you your participation. conference. Thank concludes that all And

at You time. this may disconnect

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