Darden Restaurants (DRI) 24 Jun 212021 Q4 Earnings call transcript

Company Profile

Participants

Kevin Kalicak	Senior Director-Investor Relations
Gene Lee	Chairman and Chief Executive Officer
Rick Cardenas	Chief Operating Officer
Raj Vennam	Chief Financial Officer
Brian Bittner	Oppenheimer
Eric Gonzalez	KeyBanc Capital Markets
David Tarantino	Baird
Jeffrey Bernstein	Barclays
Chris Carril	RBC Capital Markets
James Rutherford	Stephens
Andrew Charles	Cowen
Jeff Farmer	Gordon Haskett
Brett Levy	MKM Partners
Lauren Silberman	Credit Suisse
Chris O'Cull	Stifel
Jon Tower	Wells Fargo
Dennis Geiger	UBS
Peter Saleh	BTIG
Nicole Miller	Piper Sandler
Andrew Strelzik	BMO
John Ivankoe	JPMorgan
David Palmer	Evercore ISI
John Glass	Morgan Stanley
Jake Bartlett	Truist Securities
Jared Garber	Goldman Sachs
Brian Vaccaro	Raymond James

Call transcript

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Operator

Welcome to the Darden Fiscal Year 2021 Fourth 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 will now turn the call over to Mr. Kalicak. Kevin you. Thank

begin. You may

Kevin Kalicak

Regina. participating Good thank you, everyone, morning, today's call. for on you Thank and

Joining the Raj Rick Cardenas, me Darden's President Lee, on and call today COO; and Vennam, Gene CFO. are Chairman

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

pre-COVID financial conference share give provide performance, outlook a will market results call. Gene and to We Relations presentation first quarter non-GAAP reference fiscal months, the measurements, and not share are will which Investor earnings This operating quarter discussing last on section call, of as to pandemic to our fiscal measurements an this are detail the 'XX fiscal 'XX. and of reconciliations meaningful our include annual plan opens, to certain of our darden.com. the a our the to pre-COVID year's release by fourth included Any due is impact simultaneously followed our and presentation. Rick fiscal performance to morning, presentation on go fourth during those quarter in website and XX the the comparison on when as dining we fiscal during 'XX results discussion 'XX. the rooms and February the is for posted business a more brief of is model closed are pivoted fourth only on 'XX. trailing before at on will some broadcasting We This of September because quarter Today's reference ending update remarks, XX Raj

Gene. the over turn call I'll Now to

Gene Lee

everyone. morning, Kevin. you, Good Thank

from quarter from saw release expectations had very we strong quickly you accelerated third As the a our exceeded sales our that quarter. morning, this as

I of impacts the industry's come we've we resiliency During call the bounce full-service see the begun from pandemic, had levels. a segment year ago, to the our and back at dining talked confidence back in of the ability and about to the strong demand

specifically, are think we of has better the of insights industry, provides to of estimates from a data. sources. considerably industry, industry, understand the contribution our better work the year, data the restaurant sales aligns offers As reflects believe restaurant the full-service census of of the sales size closely about There industry our segment. team consumer for good and independent dining multiple industry these the with full-service size across This the done as the sources the more that we and a are broader data operators, varies which and adopting source, Technomic we view lot

Going for data by forward, XXXX at we billion fiscal fiscal sizes fine casual categories XXXX $XXX which $XXX at for will and be dining industry the provided and dining billion. Technomic, referencing

health financial the of consumer, pandemic. the of or categories having onset to fewer size strong return the that XX% we're the before despite than demand believe the approximately and units we Given seeing the greater

the perceptions that will restaurant Over for size strengthen investments. portion the food made months, strategic invested value XX have last each numerous in and brand. we At we've quality help level, long-term

meet Go capabilities employment a experience. in our need to the And investments We to considerable our technology, growing and particularly competitive within guests' members our invested in for team off-premise for proposition To made advantage. our convenience ensure we also remains desire

is stronger much and Our business model has evolved today.

disciplined to focus is sales our in we profitable on fiscal our growing sales, begin will we driving specifically, year, remain more growth. approach our As

seeing from we are we work transformation thrive are this demand environment. positioned to well have and the Given in business consumer, the done we operating the

team in and to our year Before you your thank over was, in to to I stronger. On and of and leadership other. history. Rick, all perseverance, emerged restaurants behalf for and it most doubt, our But want thank our of our you our I to company's Directors we without Rick? to support of challenging thanks a have Board do care say dedication members take you the team, turn center. senior the each the guests This

Rick Cardenas

Thank you, everyone. good and Gene, morning,

work and execution of we and brand combination brands menu the further efforts Gene each the Our quarter long-term margins, for strengthen year. has well to Significant success. positioning results throughout at this enabled transformation us high drive simplification process as referenced that business our are simplification a model implemented as of the levels

began As our in while remained continuing a unpredictable operate teams quarter, and difficult to disciplined, we the environment. restaurant

service of restrictions all managed being and food on with This focus enabled results. in atmosphere thanks enjoyable continue As traffic us ease record-setting dine-in to brilliant our basics, team increase, our outstanding their to to successfully ensuring for we an great through provided deliver guests. with the

For example, single-day record Olive Day. on Mother's all-time Garden broke sales its

Garden the Olive highest segment Additionally, quarterly and profit Steakhouse achieved both history. LongHorn in their

Go Technology I'm XX% at our capacity and this platform Guest for the investments is at XX% than ordering able of online execute. improves and we been making while for made by to utilize capabilities, of were digital and restrictions our eased, more experience introduction XX% easier rooms, to restaurant thought, new notification, teams our has during of Kitchen. remained total demand Olive quarter. stickier sales Cheddar's the operators management the to guests, the LongHorn sales sales dining and Off-premise as our as of it and the we focus Here Garden, year. for Even throughout our enhancements Curbside off-premise accounted the to driven improve originally strong at off-premise we Scratch To capacity for such and

Thanks restaurants. to business during have when even to The utilize of dining online they additional our transactions. digital via our As model digital the in either were and technology value-creating Garden's tabletop all also continue open Olive digitally, we reinforced guests our to-go our XX% half Nearly our tablets were restaurants enhancements, sales a brands. of all were guest total we mobile orders ability Darden's tools XX% were result, of quarter, see new of across improvements on pay. scheduled checks online, to or made placed

During the outperforming and quarter, are we XX new these restaurants, restaurants opened our expectations.

would targets new growth of units higher will Raj of restaurant at pipeline specific framework While end us as leaders new develop the of XXXX. put we enter discuss a our are working and we from X% fiscal to for that sales restaurants future long-term to X% 'XX, fiscal

challenges. our an been near-term industry. platform environment external Darden for has brands navigate The helped employment the of strength the Finally, issue the has

However, we in the by and the power our to investments continue off team of as we our new recruit have members people, talent restaurants. more best pay retain to fully employment our proposition, strengthened staff our

issues. challenges some experiencing are are systematic while So we staffing areas, in not there

the Additionally, of our avoid helped significant strength interruptions. us platform supply chain has

ensure availability. supply I Our outstanding our outages our are recognize the chain not want team and continues staffing guests. to shortages, experienced teams To products driver our we have our warehouse leverage Notably, need restaurant also to they wrap team members. related serve to to key up, the product to scale have few spot

continue positive Thank our flexibility every guests. experiences my demonstrate to inspired to attitude the by you restaurant for all great day. for During do I'm you done you and visits, deliver and have

Now I'll over Raj. to turn it

Raj Vennam

The than year. with morning, $X.X sales one this operations improvements from net everyone. year, to $X.XX. operations business partially accelerating continuing than of same-restaurant net the drove resulting per week by adjusted faster and diluted cost, profitability, billion, strong our and restaurants, model, offset in of growth combined Rick, earnings higher Thank you, driven XX less we the sales quarter made Total share fourth XX.X% XX.X% fourth addition good new last for quarter by were sales of

estimated Our reported higher federal $X.XX primarily $XX.X year earnings loss relates This a the back fiscal five benefit for to due XXXX, to to net which nonrecurring carry operating million. benefit years. were will tax preceding of our

same-restaurant three our X.X% June continue weeks to compared X.X% at same-restaurant negative significantly Olive years throughout in two Garden X.X% levels. higher for from of sales And sales May. than to and the be for were we To improving versus Looking pre-COVID saw Go sales first the ago. pre-COVID March performance positive in to quarter, LongHorn

decline a weekly in seen To Go gradual sales. have We

However, offset an by sales. in than more is that dine-in increase being decline

the higher, driven to points XX to Compared investments P&L. by quarter fourth results, Turning pre-COVID both quality basis expenses were food and food beverage inflation. in and below pricing

restructuring QX of XXX earlier points XXX by continued was lower, For was basis resulting the offset hourly basis in partially pressures. versus by primarily year. points lower, reference, million was spend food driven operation from inflation efficiencies due points XX and improvement expense the points was $XX the labor labor Restaurant gained from corporate savings driven to was year. Marketing lower, basis XXX simplification basis in X.X% of favorability. G&A in by last wage

mentioned. tax restaurant of tax million. quarter had impact margin assets. for of basis points quarterly non-recurring of I EBITDA previously a our multiple benefit EBITDA above $X and $XXX As of record levels for rate in the achieved record restaurant-related write-off result, the million level due was We the Darden XX.X%, we to impairments And pre-COVID effective XXX XX%, the excluding

operations, and of marketing Looking build sales And Dining by business also pre-COVID segments. as COVID-XX demand, transform expenses actions margins other Olive we adjusted a in $XXX the other. continue driven to while at guest $X food cash EBITDA response focus record improved margins and solid position Fine segment billion an invest took for over and free profit cash recovery These simplified no at continuing solidify our to LongHorn model capacity sales. and year constantly in quality over of and dollars this restrictions total segment despite inflation. results pricing were like we the reduced to million and delivered despite our our in foundation Garden, we achieved quarter. challenges We in on shifting billion labor flow and was profit helped XXXX $X.X uncertain below business segment versus decline. resulted to results. The in

quickly pre-COVID term our As cash repaid a we built position. result, our dividend reinstated up loan, our and

sales Our disciplined and driving profitable well operations positions for growth us approach future. simplifying the to

of As position $X.XX. strong morning, yesterday's on annual share, in closing increase yield Board performance, to regular dividend price. our also dividend and per approved to of a this a XX% an a XXXX share cash based implying of fiscal X.X% results our This announced we result the quarterly $X.XX our outlook,

million; fiscal from same-restaurant to XX and million sales of XX total $X.X new growth X% to pre-COVID outstanding inflation sales EBITDA Capital labor of of $XXX to and $XXX XX% growth with approximately tax for billion, hourly inflation rate financial $X.XX these to representing significant X.X% an effective essentially we and approximately all million the XX% and inflation X%, Finally, it capacity XXXX, turning total on approximately full that, to all to we of billion for to any interruptions Based up we anticipate assumptions, approximately restaurants, related expect do diluted net not of a we'll of commodities shares between And assume $XXX COVID-XX. share diluted for XX% operating $X.XX. resulting our X% restaurants. $X XX% questions. billion spending outlook open and for of $X.X levels, annual billion; business average per earnings to with to year, in $X.X X%; of of

Operator

question go from ahead. [Operator Brian Please of comes first with the Instructions] Our line Oppenheimer. Bittner

Brian Bittner

issues labor Thank you. positioned that's the hearing is stated it believe these near-term out of in Darden powerful to impacts specifically pretty environment. challenges What from just And issues? is we're peers. the you from is a to from and this you thrive why do that operating given all think standing And well as dynamics? statement relates I your cost Darden all the crowd reaction these Good morning. that Gene, to your

Gene Lee

Well, reform. significant tax let's pandemic. had to people people labor We've start we've the We our we with time -- mean throughout front. in starting that in back I choice way made point on invested the over invest investments in when the our time. made at people our the in

stayed have with people us this. best through Our

businesses. just staffed environment that think improve, attractive we're work the hospitality able continues to attract proposition. fairly the to saying, an well enough now. to of choice but an the to pretty restaurant restaurants, employment businesses, see our think Darden is provide And been to not not employer as workers, the if great right no growth. all it's going for there We us. potential we I employment proposition. have out to people we're we We best attracting today, continue reason in industry the about clear I've We're proposition there's staff why struggle workers to our employment And

members team a we're Our from opportunities to promoting restaurants. other ability through opening going within, and and promote out X,XXX training new

love experience. think really the I members our team

wage manage great to think shape we're wages. do paying I invest. we're the margin think have continue we structure. salary combined employment need think able if a because And to ensure I manage that there flexibility to inflation our wages standpoint. administration if We'll competitive the philosophy, we we'll And be to with that we offset of some pricing so great that our to. We'll from increase an to have and to And need in I that room -- be

fairly far the the whatever to mean, that has our in to term this food in And comes been big on I scale think feel as I advantage the our way done and job. advantage. a or manage As a we're things on. using positioned long we to term. our inflation We're long goes, we our has be team near our And like even platform need fantastic well long very inflation through

Brian Bittner

quick for in X% sales above thankfully. Gene. And about Raj. guidance We're X% level. for It We're recapture, is your longer this. Thanks 'XX pre-COVID just side a follow-up of feels talking the no to other XX% on

points So the of midpoint I basis obviously, the EBITDA at above And that guidance so XX.X%, XXX% margins recapture. are pre-COVID. believe over XXX

So about philosophy so this you're the EBITDA investments what communicating on thinking and on us is above that path pre-COVID more how philosophy to sales now levels is much for margins the clear? now communicating

Raj Vennam

what me we guidance think for that. just on higher this of at implies I EBITDA XXX you guided between XXXX, about fiscal end. as end is, look lower that XXX When morning Brian, think where Yes, margin on growth with the start we let our the to

make pricing flow-through The it -- And we recovered. flow so to And mentioned, inflation. of we're some have investments. -- clearly, available the continue are investments our have the some as Gene sales made to But bottom letting line. we

is this of X%. two around middle And fact, morning, our In expect in overall we I said to our one think pricing we be to inflation the targets.

but So come the making, we below some was well inflation. also That's additional are if was that gives we're inflation powder to dry us our pricing investment way. there biggest extra

do target we is competitive for that, to as $XXX good we now. $XXX million the we understand million beyond a us I most would in margin expect we in hone where say business FY 'XX. on the are of think to think And we better the need So on that environment see improvement model. as think based and I today, But we to economic we'll retain

Operator

the from Markets. of KeyBanc Eric comes question next line Your Gonzalez with Capital

Eric Gonzalez

before the stage X.X% you to year perhaps leveling said throughout on end? Do side? question there fiscal you think in My towards Can question. the on higher that perhaps year? food might the in And outlook. weeks. I out for some of about inflation Thanks X% the you expect variables talk in the that some commodities inflation? recent been how is inflation included in of be key have Clearly, moves the big the beginning

Raj Vennam

Hi, Eric.

X.X% is little of the as inflation, But full is you half front year next is to on year, at bit, X.X% to for flat. to we -- a little as year the said, and thought which was we between around look And prepared go into then, year. a QX X.X%, it bit be somewhere is for ramp we -- yes, as it as commodities implies said that back. So X% the came more think which we remarks, we this QX where closer expect in I my the

in And continues especially drivers costs And is so thing a of significant and packaging factor. another also they high, then dairy. are little up, the say and commodity chicken -- bit say in seeing the about be I'd were going other cadence. I'd cooking packaging. that's to And oil, resin inflation Packaging of inflation, the with seafood kind is the

between wage to expect all itself, X%, that the are be around to of commodity in those side. expect on labor, rate somewhere side, big be on But And we labor we So overall X%. the the X.X%. all, inflation drivers

Operator

comes Tarantino of question next with from Your the David line Baird.

David Tarantino

overall much related upside the I'm relatedly, you And weighing constraints or how morning. are Garden guess, of Gene, play good back full think in capacity now performance? To to your what Go they do down do Hi, you in restaurants of sales seeing is, you're the Olive come still see perhaps think stick you thought terms as more you the sales, these to wondering, some capacity I that than would?

Gene Lee

still back California New very There got It municipalities states is but Yes, there. David. and are and got we restrictions few out that on back. we last morning. some Good capacity have York restrictions week a us, limited

major no there's market has So, restrictions.

work think I model perspective, still us think a these we our we room inside business more think our at, about high-volume to we going work the to which we to continue think and to when throughput, on menus with restaurant. as sales where enable help we're more are restaurants with volume in going is from the -- periods, that there's get to, the

think execute remarks what Day our the a do a limited period. restaurants in teams the biggest able to time commented and get It I -- to says Mother's Rick's Day our in had ever and through have more before. people on ability we've to execute his about prepared about best lot the were Mother's

seeing less restaurants a mid-week in to less are So have I extra sales just the high-volume weekends capacity through volume. when Obviously, any get don't of opportunity think there's we because growth restrictions. lot we're than we our on

be, consumers pattern, see where out, I and me. there's don't be. slightly. the of is equilibrium, understand when and we're dining to I it's I while there a I you when we said guys going still not what what his to we're with declining a use there get pleased with to and we're we I into -- guys off-premise search normative talk though comments word would be think the really yet. is the of ago, behavior in kind lot And we going you going off-premise Rick what call And leveling know disagree I in-restaurant where still that mean in about -- even to is get a the this is So a lot we're

the through this searching you we're and has But frictionless. wrong we than going a capabilities some is from. understanding the were what make think less of we it and a I do created thought. for stickier was equilibrium, that lot was think to right I with business I off-premise lot And the where to come pandemic to when

we're still innings in that. think I of early the

I think we more still got upside. a lot

David Tarantino

Thanks was I guess Garden is point for Olive this relative on then is question LongHorn the that the very give LongHorn on Gene. pre-COVID Garden seeing how why performing is Olive if other gap is significant. your between performing is or you one how And lagging I follow-up and performance to kind wondering could so by LongHorn? for is thoughts of you're much either outperforming

Gene Lee

most he look are the ratings, moved categories. years to at I since When we Well, and at their that done Technomic level LongHorn, you you're team with one investing of we've mean performance come They would the is just they business back. sales his five thrilled going restaurant a in I XX.X to margins looking Olive lagging. great middle getting where job pre-COVID what's first performance. and look they one. say amazing. from value of When is That back in are in on I'm just unbelievable. Garden not perception. thing number that's for been and in the number is at pack improving When Todd's have And just levels,

a also that's just has segment -- other culmination also of other I that's Steakhouse lot time. And period And that performance moving. work segments, I segment the believe so and a perceptions. outperformed segments, over of the The of to and Steakhouse great is recognize I whole a want believe think whole has the I is outperformed LongHorn's I

segment So extremely done an executing lift, also and getting level. job at but they've they're a a definitely high they're great

Operator

Your the Jeffrey comes from line with of next question Bernstein Barclays.

Jeffrey Bernstein

actually. very you quick Two much. Thank ones, Great.

hopefully, the just pandemic. the quarter one, first now on we first as seemingly The exit,

comps think you up your X.X%. said are I June, month-to-date

actually I the to acceleration any Any guidance? what us does additional make year expected given that's with think Just I the sales for you markets, thoughts further that about? COVID? this I'm having around whether first want you earnings being Or then that of said quarter you identical having And expectation how can whether you lapping us of follow-up. want to kind would one with wondering full recently reopened? have said, give any to compare thoughts May. there's sure like wondering, think you just us or on full those parameter to

Raj Vennam

Jeff, this is Raj.

big about I as same-restaurant it's the we in about think the think what are they we a of bit the markets I the where open terms mean, some a X.X%. year. June, better and argue up our not then level, going portfolio. portion California as cadence But the a you I cadence, blend these as lifted, you we are are than May when pretty mean, That's are big that the are overall of like especially when seeing at would brands And places of playing I brands part weeks, impacted Darden to So -- in -- expected the sales. actually at fiscal that. are some most three feel into on that everything are good restrictions little you look had that of capacity movement, we some of

doing team the I 'XX, with and at are got past we're a lot basically of business thrilled where level the other a and we with in demand that a you look there activity. that our of blended takes spend versus have then into are, lot marketing to things the also are right? on our in thrilled are So it So, take now, fiscal stimulated that when comparing we're we Gene And doing you the different We're we model. because not especially, same-restaurant consideration, to not would said, was think as there doing move same stuff. we're needle is some we sales. promotional more the other that had factors that continuation to But as

the able -- food and in However quality, to but people, guests our investments fact not our and make food that only portion we're also through pricing.

strong giving model. the lot a So back we're while business a guests, to getting actually

I the how I I think would, And guess, question. address that's so

Jeffrey Bernstein

risks think Great. the just to just current And industry is 'XX, you what about then and/or would my seemingly, and you follow-up, quarter-to-date thriving cost say you're quite the on you of about terms think the or as think sales fiscal the more greatest come the as it's you Maybe would feeling vulnerable I side? trends side? in other do the most wondering Thank on you. good 'XX, in yourself we where out risk? mean fiscal outlook commentary. be But

Gene Lee

internal, we think -- risk we look there we is what put I a can achieve as I external, think look greatest of point when getting perspective. I side where still at risk sales think greatest guidance think don't getting I that to not I I cost perspective at -- to risk being I the we I we've But mean the out obviously, a But see we're from COVID. for the that. other and the we're or and think think that.

that's another in To on we outbreak had to we've deal business. have is where this that for. us, we have COVID, restrictions exception got the flexibility, me, of our set up the the greatest anything with with I to almost some and think look thrown the risk what to flexibility to we've at

Operator

RBC come Your question the Capital from line next of Chris Markets. Carril will with

Chris Carril

and morning Good for the question. thanks

So XXXX. strong business holding the just above LongHorn, performance margins, in and margin Olive aside at was well particularly segment looking Garden at other the the and segment

hear contributing great that would your there of update any what the improvement know some improvement performance to additional had how outlook? factor Cheddar's, And at a segment's as so the curious quarter or of were 'XX in I to be you drivers the discussed color well? that of last And is So maybe key segment? much

Raj Vennam

Yes.

look where Cheddar's going So to out kind this back of the as of break I -- -- transformation down of significant couple model. I'll big segment, a we brands kind as in business the think part Chris, to and part figure at we the out say another we brand transform at chance business that our and point business model simplification. significant. back look to I'd other a in And was way the improvement had Bahama Breeze is everything, a rebuild model. We saw a a up of the of is

So next fiscal still significant contributing other as of role, those And two other it. at at you brands year, when look segment, a I about look to are the the the have growth play in segment. we they we decent right? it's mean XX% primarily

margin. huge a But So to to be they're segment the size, not to going related contributor. their they going are on be outperforming

Gene Lee

this say this business on point. pleased just Cheddar's, Chris, extremely with that at we're would Yes, I

improvement in of our Cheddar's. came the As in Raj the biggest model business in all indicated, business

this overall, the excited focus very able teams future to growth. strengthening to where be pleased continue leadership on to we're very today potential. handle business We at the and But about is the restaurant with

Operator

the come from with James will line Please Your ahead. go Stephens. question Rutherford next of

James Rutherford

with new technology I in if you being quarter, the start for a mentioned I where question three-year wanted of for returns, whether Last -- tech years priorities the next side? the the consumer-facing in center biggest box, some where the the was opportunities on off for to see developing back-of-the-house you or biggest and you middle three it's I Rick. technology. expect road support in I wanted other are area? And -- a curious mean to map online,

Gene Lee

for question. the James, Yes, thanks

I But what a is map few in three-year primary theme places. friction. working we're And on. our road We have we at and say, completed primary would it the look reducing the --

manager in doing the in the do. we So reducing in member what and guest with technology experience, is team in experience we're the experience friction what

pretty to continue it of for point-of-sale a off-premise system experience the old things restaurant, back In enhance that mean order simplifying looking going the pick revamp we off-premise. their it handle a team and off-premise to easier system. the our look members the would experience. that easier capabilities for we're make so And way that make to our developed the And years to It's in to guests the to up at our orders to revamp to managers, of we're and We're handle repeat guest ago. much for house.

as our back-end, while of great the systems, have isn't lot great a user very they -- back-end So interface great.

So, theme those of interface. are on working of user under friction. But improving we're the reducing all the

James Rutherford

Okay. follow-up. Excellent. just And one then Raj,

at where XXX,XXX you quarter said hourly across us where you last think you full update on were stand given sitting environment today? here today? view employment you you I demand the Could Company. And employees the

Raj Vennam

sharing don't the comfortable employees that I have know number made but of progress. total just this I'd say point, we significant at we're

going into fact, don't to we see the I want it number we gap. we sure than if pretty you remember a any good let don't so think feel not than exact was more we don't the and employees I this of know anyway, we get XXX, just little I bit know point, other In that we're with staffed, way that. said But at -- I'm back,

Operator

Cowen. next comes of line the from question Your Andrew with Charles

Andrew Charles

Is just And if XX% impressively in formal Can raised $X.XX EPS Raj, to the ratio, reflected would of versus your little formal to Great. dividend the of we bit? this to $X.XX. that guys think about rectify Thanks. it imply guidance? conservatism help the $X targeted historical $X.XX. to $X.XX a you payout guidance you XX% XX%

Raj Vennam

question. Great Okay.

right? you the to of we going dividend, our XX% pretty range, when felt are to at about is higher range. target balance with, point, end at we where we our start me this that about given cash think on with our XX% But sheet, the how the look good Let

look you pointed our you out, the It's we're at So closer to XX%, right. if middle guidance. then of as

take you middle basically of at our payout. we're guidance, if So the XX%

that's of cash this free announced we actually day, bill the our end to dividend when So that different the not I or about billion dividend model, not argue cash XX% the we we from morning, -- we're only at at a to significant look would $X.X that given of this it's that's only cash sitting at proposed -- especially the our flow. still that up and business free flow, generate the And flow. XX%, XX% expect

really is year we're also, feel the We target. the where a had are. about And below good just remember, we time. target over So we where

way to that. think So little this of as for of make up a kind bit of a

Operator

the Jeff Haskett. comes Farmer from line Gordon Your of next with question

Jeff Farmer

Thank you.

On the had call, earnings for improved that XX% productivity you think, reported by, over you labor hourly I March the system. said

So bit you I'm And productivity? I level have this How productivity? of labor you how a driven just curious, touched two earlier, think things. improvement on you it but in little measuring are

Rick Cardenas

the across productivity Rick. Jeff, on we hour we basis. guest this system. mention better XX% Yes, about is an And did per measured that was

per So labor hour guests improvements. -- per productivity can we're how many serve seeing we hour? still labor significant And

per And a even labor improvement about talking was Raj As last from the the we did margin, in been into what we've mentioned, food it is out improve redesigned lot way for inflation. over a to work, prep I the backdoor labor with had design coming continue to the We significant significant to the of our we our year getting procedures design last which is done year. that. are say menu what the of never which work, kitchen. processes table, the took And would we significant steps with the and means processes

we them redesign. to have have at to look and again, We

So to to drive to that we're going where efficiencies redesign. do continue

those and our going give to guests. for can in better we're experience that efficiencies a drive So we our so reinvest savings plate

Jeff Farmer

benefits XX has hiring unemployment I early, that apologize. what follow-up, in just dynamic a And as that's then ended those states? might quick since the so the like I have or looked have happened or earlier, missed states But of staffing supplemental this and the

Rick Cardenas

lot last bit have date effect And June. think trend the Jeff, announced country, we we've of would week. took even And improvement a May or I either in June but something first those Yes, the eliminated the states an that across not sometime of little seen of anecdotally, take have seen late maybe early effect all states that it UI, but states in the really that are. just flow, applicant yet hiring states actually the hiring the you're flow. really because about We're lot we feel into we quarter, every our that to open see to we haven't It applicant yet. our flow But not where going starting good good fourth a so of and and are people restaurants. we're quarter be record had haven't we -- feel a hiring in about could applicant a week,

Operator

Levy the MKM with Partners. from of comes Brett line question next Your

Brett Levy

good taking for Thanks and just the guess two questions. Great. I call morning. separate

seen a that significant the what are thinking the talking change margin? we is about on confident fronts? of news obviously about the should ability level the does EBITDA you the some of how or longer-term of about of How be expansion. the second delays And you. obviously development think cadence Thank the XX the And to for recovery reach You're there as Are -- the availability. what late of And well margin we've split question end? of profitability? between on of from level restaurant your progress are you you either a ceilings XX spending are G&A inflation out the then you've as unit those seeing you labor to seen lot side, higher

Raj Vennam

Rick Brad, it to development I'll and the question. let start, hand for then me over

basis margins, you bulk in huge. XX, say you bit. G&A. as XX there's look where the points, So that at actually saw the would at which our from restaurant I came it bit margin It's the QX, a little a is level, little of I argue

an categorize to the from the that is probably to I to as I restaurant marketing look G&A is improvement. way are think And going come points forward, in So the kind and the but think of I restaurant XX be going of then is that would rest margins. favorability, think see around to level basis you going way the about labor somewhere

so line kind because -- the especially that's choice a one to how pricing we're that's in as cost that. some going And should the not I'd with -- in not overall food but And better, expenses, made. we're a restaurant be because investments. why inflation. increase of continue categorize because of significant then we deliberate then However, bit That's little

the have all across the got line impact an P&L. items on You to

Rick Cardenas

this development is on Rick. side, the Brett, Yes,

we really about side, have in in about shortages lot development restaurants we construction, hear shut the product pipeline of beginning year you and XX On feel us during at construction a the of front But I we the restarted down out as we in couple pipeline say, is coming out COVID, the saw of this our things. we fiscal One good a shortages we're We opened. and getting that. that. would of about

we So we're advance in product a than ordering lot used to. further

make is to input need you're do. a of these seeing The things to good down. we've So stainless come we costs got that steel in that the do news some to the sure kitchen

in by and input time to more where hopefully, build those was even are hearing made profitability I it. about restaurant reasonable really helped level. we're people our So more the starting improvements said, inflation if back restaurants, has we've our costs restaurants our margin a to the the are

of year. as of started throughout said, restaurant. open open ordering fiscal terms openings, of of we're kind quarter. of earlier for mid-teen the typically spread our But the to year, product cadence fourth the in in will XX probably I restaurants be got restaurants In front this and our fourth XX and quarter, going we this in ones And have this mid-teens to we'll we other

Operator

Lauren Silberman Your of Credit the question will line Suisse. with next come from

Lauren Silberman

Okay, great.

about the talked on Are occasion? stickier sales? more for To on-premise the discernible And that To using you consumers differences across anything on there you replacement thought. And that that's markets than meal? perhaps are any recaptured Go Go, So, seeing originally To whole whether how Go is then a versus on-premise you that being in have you share can

Gene Lee

more the open. think what's as kind country think change replacement been kind off-premise, dinners day, the all. throughout maybe And shift. there's it in using I I a home -- of the of for at It's same there the really the or difference no as the Well, behavioral meal workplace no they're there's during happening in more restaurants,

what a hundred You in room. just dining of I stickier here. that know we've experience And up the took analyst I couple is the give community think this we more I basis Again, some think reached this. new very think that, We pick points credit consumers I This the as and good. you down than on earlier, of said -- very, was thought. I'll

net coming to forward. where we something than going pre-COVID. I out know so, we to don't it business, was And that move it's it's It's lot our a we to as And pay have more think lot out. part of a I net think attention that's higher

Lauren Silberman

Or similar at June June largely considerations you seeing Great. on And Are there are weekly if X.X%. do I just sales? any could running seasonality May? a follow-up to average in relative

Raj Vennam

similar you weekly the once take I'd sales the average out the north holidays. say, of yes,

Operator

of line question the Chris Stifel. come Next with will O'Cull from

Chris O'Cull

that Raj, impact what could was you guys. been demand dynamic? you stated morning, that maybe those Good cost. an elaborate pace were a I at faster Thanks. back believe given timing hoping on costs I hasn't came issue the of staffing than and

Raj Vennam

than hired. of bit to the Well, up the end I would in the accelerated through say was place. little by a staffing. had a quarter, we're But quarter faster catch We as good it of we they on staffing

I didn't level that, a we you We bit less. grow travel So obviously, the sales see, the But in. there you come have had our lot that. think of was was marketing of beyond P&L, as can little as at didn't look a

said openings. the around get And of we of is right these sales more that pipeline costs new some of are off other we we of on that to we're costs thought the the these kind wait for the because back, delivering returns. to want we -- to bring we levels those right we where holding for level were cost back to the were to growth to really especially want cost Some talent of have, going have

-- provided these are into P&L. morning. pre-COVID, now the the of -- that have that want some back will the above that that so this And sales of that's are we And put we guidance the to at costs the levels part

Chris O'Cull

that -- from the quantify during the timing impact store level that mismatch you Can labor quarter? to the

Raj Vennam

it's in basis huge. not say I'd the It's points. XX, XX

Operator

Wells the comes from Your of next question with Tower Jon Fargo. line

Jon Tower

of unit growth to year Rick, Obviously, growth. I And 'XX, you circle fiscal end piece forward, sorry, But higher of Garden made in store the comment into of the dig disruptive terms a into think on growth more catch-up of Olive of period? you relative just potentially the been other piece a growth -- to to can a guided is back sustainable or feel to. of potentially wanted a perhaps towards that that being future X% just that should just of new bigger in from being me, we you has kind level gross above about that the of beyond this growth fiscal portfolio? X% the range historically the of do components then 'XX that curious, that bigger I'm how how going historically, in excuse -- brands you've

Gene Lee

Jon, thanks.

having we this only the that sustainability forward, our We going down the in to slow ramp-up a thing little all, the our growth can believe in able us growth restaurants, after enough of for ready that end on is of kind the higher managers of open people and can open having of First right, enough stay our while. range restaurants. general to

Olive Garden improved and Garden had more and But those. to improvements given in gives even ability model with Gardens, confidence we Olive we even has open able open a it more two Cheddar's. that around open really being change feel mentioned they've how So or when the already year the of different Cheddar's that business our confident we Now being the Olive in able economic the more we closer we to have were many would Olive enhancements because could some right? That to before, model. us much made, end opening the that. more can confident Raj environment of their impact get Gardens them. range be model higher might feel to But we of to business business in made, has

darn to Seasons tell back. brands huge Bahama business the while Breeze model ability XX that that wasn't Bahama of made great all our I the some the as segment. pretty that their of good a that's ability growth made higher business one their even That's range. But the sales opened clientele. we someone coming grow, So and thing. want a Breeze, though XX Breeze end model and of at We've get every Season you opened the to towards about as significant to Bahama improvement, improvements important asked has in us other We've has strong recently. also the because recently, gives

really we higher changes. range our for feel good the of end be our about the our at and brands environment unless So all future, foreseeable of the open

Jon Tower

communicating Or today? just that I it. your then had To get you're put already on following with to thoughts Got Go the orders on to those XX% how And mean I'm were you've think that To this comments I is the channel? up mentioned today marketing in channel you Go that is curious but customers even marketing new a of necessarily essentially And business, place? just doing up a down could something new opening harvest that of as line you're not online.

Gene Lee

about get we them future. orders. order online, information ordering on a a phone that market ability the would other or And do they're because than in John, more to the little bit gives we them us

done marketing marketing of digital really but we've lot haven't done just haven't demand digital started in right? digital because year, last marketing and TV, moving, speaking the whole on the done directly focusing already. marketing bought has them. keep that the keep new to some Olive we a We've Garden to just to media those really We customers

weren't that before. to need market coming we we thinking people up, now to us that's start ramp things that As of a source great to to

Operator

Your from the of Dennis next Geiger question UBS. with comes line

Dennis Geiger

appreciate then the the and shrinking and the Gene, commentary size, industry Thanks. on supply. industry I Great.

if identify Just restaurants more permanently from away? about that of forward there's that's going that updated your have gains whether the wondering opportunity brands on to have you've to share going from thoughts you're able you closed? Or how been gain on percentage thinking for any supply that your if you share anything can

Gene Lee

Yes.

and the level. gain have to size to to share Dennis, I high ability that quality, to that's is we portion I invest think, key. think and the our fact our think a in execute opportunity at back continued And I really gets

through think ability gain running huge I high -- executing a we're and in is to I and ability our through And great to a our restaurants organic comp growth That's level. lot about this opportunity at think all new share restaurants, all why sales about add we growth. a of the store excited have restaurants. of

Dennis Geiger

That's on of then just great. building that. And kind

I following seen the more, just Olive if up kind on recovery Garden, that the of one solid recovery the Just could, has solid up that on following on brand already.

term. to say, just continued talk of could medium bit let's more you about the the AUV a drivers over, If growth the near

just if increases function sure I I talking the it's understand drivers, that really the of want have promotional of digital, probably about turning just you and brand it's capacity if you could of to back from marketing curious that to were further So probably some just if it's it's drivers make your activities on, if it's that that a kind perhaps? more. those kind of Gene, you here. if But pocket, it's But correctly from specific potential in that speak that of all

Gene Lee

And profitable to in how I investing portions and cravability the do we on the believe driver And driver, the improve there's one of by quality. significant growth. I that's sales overall and food. that's The best laser-focused think of we this. continue to team that have is

Operator

next question Saleh the comes of line BTIG. from Your with Peter

Peter Saleh

units estate Dennis' on to benefits XX% coming be the anything just industry, Great. Gene, of we're around a follow yet question, or up curious a just rent wanted may on know sort specific development industry. out I benefit Darden? the or And any to Thanks. more seeing fewer shortage. of there's seeing said you're about that around you of labor real if I availability been

Gene Lee

estate the driving speculation real There's in No. prices market tremendous up.

Peter Saleh

lastly, you some Is you much right impacting bit guys expanding as now? innovation, I Okay. you of and a on squeeze you focusing menu keeping labor still menu not how but there? core? it's And said guys, little thinking guys are on Any And is on know menu? the innovation Are the really then just guys about menu that the innovation? thoughts

Gene Lee

record we're to core. restaurants -- simplifying keep think right about, focus. Rick great The And improvement to now consumers talked cravability. We're that one continuing We're improving right to our that, that's All in focused productivity margins. a innovation have resulting love improve now. the our our discipline I sticking ability to as on, the these in it's And that around we're we're and execute the is of on products key the level. one-off. We and improving trying to majority teams at high We think buy.

Operator

will Your from Sandler. line next Nicole Miller of with come question Piper the

Nicole Miller

ones ask the if run about restaurant slightly specifically of could I ones just the the demand wondering getting likelihood are around you. rate? end. higher being really which some was above group could brands above, that is that I you wanted specialty maybe? kind pull are new and is to XXXX content, an Or give that the of there the And of Thank back? which are reason below what structurally at of indication

Gene Lee

thrilled I've with the in Well, I mean any in still We come I starting business recovery who the weeks I pandemic. one was restaurants through core really back reason in what last suburbia been don't weeks think demand resilient to surprised got that Fine started when well. the in I And doing hard I which come a starts demand urban was of think to really, urban to heavy you six large back suburban or as business would bit think would how the was. eight XX, little last shift reignite. But the their about to are pull back. seven couple hit there's really business Seasons in why might from consumer business the this travel seven call to was slowly. overall, pretty the was that has is Dining.

performing restaurants back it where be are three downtown do, core back very back coming New And as thought York so they're Those and to downtown it's five in Dining above major we quickly and restaurants is to we starting get come and upscale and our City up what Boston Fine and we well would D.C. quickly. running

Nicole Miller

eating comment -- different at the used the they're times, of change same to would in me, differently on more you anything it just guests or briefly customer be? profile, excuse different like the coming guests, same And

Gene Lee

they seeing Well, overused the more and on back and little my I than again, weekend -- a But suburban business without little And we'll brands the midweek wait there looks six new through a of seeing think, the for go we we're little I transitory. did. overall, business. we've really that's are. bit not Equilibrium, word so our business, And bit But months, think lot what equilibrium we're exposed in to we're a to of going equilibrium, what this. I what the love people we'll get understand shift Fine that that next business Dining experience. seen We've think like. to a travel bit I the dynamic, norms of

Operator

Your next the from comes Andrew question with Strelzik of line BMO.

Andrew Strelzik

my that to to I then fiscal business. from just off-premise First, the on commentary, quickly pre-COVID just the improvement. question to some clarify is levels? at perspective AV And relative the point an context that around wanted that? basis levels 'XX XXX Is other Is on XXX margin just

that the think months. some there's over of seen after channel growth uncertainty the to we've kind think function the about of I last about step XX-plus how

over rate to about think whoever So to kind the To would or XX drivers and the it? Go term maybe growth you XX next longer months kind of that from want behind expect the of that what's you

Gene Lee

I'll margin can take the Rob the question. then question and take off-premise

I to we about lot have our our that avenues for new grow is we where future. we can and We've to where a get I until business. fulfill off-premise, convenience about and and that is brands to, understand desire not the think think that do that where through is can the grow We use growth. technology. think into learned need I think more the balance, think, we on we away, level, pandemic then Consumer it business can with equilibrium going we do

Raj Vennam

the on are margin referencing Andrew, pre-COVID. And question, we

at our think the I pre-COVID the to is XX%. was think around it So EBITDA about way margin

think it actually was I XX.X%.

$XXX million $XXX that. to relative million to So is the

Operator

of Ivankoe next line line Your John the from the JPMorgan. question of John comes with

John Ivankoe

at sales -- you basically per doubled Hi, versus your of unit quarter Obviously, Garden, you. 'XX off-premise have 'XX. thank fourth Olive quarter you fourth

of on-premise for leave that capacity remains So kind does a dining. amount substantial pretty of that

to wanted on a I points that. ask few So

the about so busy that before eat that the you to aren't sales want? per have in But you, about, versus can was those or this dining. -- whether level off-premise on-premise? at customers had is it's from that age people necessity Garden on-premise much talk XXXX? the previously just on-premise sales mentioned used a And you guess, achieving of maybe -- to possibly I on-premise you here of that coming of You getting basically vaccination, of But XXX% a there's the think off-premise if different that unit update numbers sales sales is those would that replacement that shows lack state, meal back that state And it's do bring off-premise opportunity guess, you suggest, level times they home anything levels for percentage getting the that between on-premise as that are I you to of back by if of what Olive cannibalization 'XX cannibalization can being success to I at point, an 'XX? mean, think know

Gene Lee

on-premise say, much profitable we're Yes, do as try going to room. And to can we off-premise channel. we're sales the Garden lot in we John, we grow that in drive can dining the can I going inside be as here Olive profitably whatever possibly in to would there. was to dining as I All want -- and brief a there's as is to

comfortable have there also of point in at people into that out our aren't going restaurants this there's recognize time, lot We trade in yet. a to still

lot out And to Olive natural to level Garden for that a a where going ways so to still is understand have and to go learn. sales level we

reach yet much get place. new we to so understand is. we in consumer drive we our And as can to the as and been who there haven't we can We'll profitable possibly goal profitably restaurant once -- we But as is that this as granular possibly do off-premise. business business can

John Ivankoe

still is on-premise between of do transfer you data of off-premise? to that Or amount needs sales sense have that the come? a and And

Gene Lee

come. is we the analytics and We've will that look able environment got equilibrium to really so the about. to to to analyze once needs I'm talking that. got mean need at data dynamic, we've This I be to this that

Operator

with the ISI. from of comes Evercore Your line David question Palmer next

David Palmer

to I'm looking that's like how the actually you what I'd XXXX? right, higher on-premise Olive pre-COVID you whether are high down thinking going something getting back think driving business that to, basis. to consumer factors at that And you follow that through those up on-premise was teens on that. go business on-premise would to hear If at on you're we as And assume May? is we're on decline? you the or XXXX? even than in flat we sales be XX% imagine really it constraints off-premise, two-year that you this a comfort Garden mix there If constraints think do are the about any curious say,

Gene Lee

never Well, I about put mean, ever discounts business, just able at be and incentives some in. might We've right when promotional a complicated sales some our at to volume. operated on this remove margin I have what opportunity these -- has levels to I been brand continue you strategy we're all television to back think of mean Olive and the we're Garden this analyze all there that advertising. from question. is the we'll doing and to out just think marketing now, was. Right

I sales think you triangulate in to that was to trying way at And trying so 'XX as can. talking this possibly and slowly. don't looking what are move need guys we as And it. to about the profitable We're capacity much we're drive we

we've with And that differently off. we're be our just business and at some get looking look at and index maybe where happier are an profitability couldn't deal -- the is. record than just Garden business business level business and pleased so others our try to And it. repositioned looking with -- business throwing at extremely -- and I back this And where business the Olive and is to this the and run chase going to that we're not we're

David Palmer

I'm mean, might might thinking wonder back away of potential? continue swell labor, to comfort to we cannibalization on on -- some of happen? of off-premise, overshoot of that think from seats, a build? quarters you Do on-premise. could that that would and be you earnings do see you couple if If that you this still the It's you in the levels conversations capacity think where I have you the lack our happens, terms the these were that the if I that actually do know calls, thinking I on-premise earlier from

Gene Lee

three -- turns fully weekends. put -- I We're restaurants not mean this staffed labor. thing. is in let the Garden. I that one think by doing our me this on Olive to being four is back are held our This

where to we're is could on thrilled in I'm me and -- if million less how issue where of with sales you I our growth ends what up. on and Olive and think profitable spend ends told the that spending per we'll at XXX% back think I we these based do that. we to Garden that -- $XXX and And up, profit we're we're could what guest didn't at get continue in levels? And advertising, focus driving is that sales

Operator

next comes the line from Stanley. Your Glass question Morgan of with John

John Glass

very you Thank much.

industry think think portfolio you just, is do business your this Are are good Is about high, really portfolio about being right now? margins difficult? M&A how to current time this very adding about Gene, you the brands? reduced, environment? with a capacity and in outlook, in pleased Is the the pricing your think don't that First, on back just and you M&A

Gene Lee

that the Well, portfolio what brand -- add our on platform, and on would our our platform. we're we the platform the they mean that a would come to about are with benefit to to would always being being talking senior Board benefit and I management our from possibilities

with thinking those invest we're business So, model capture new the But that. our and more in today businesses that business. today, transformations the happy getting capital return we're businesses. And to we're always we're into our thrilled about so our very on

John Glass

just clarify. I Raj, could if And

why there you could year. Historically, margins maybe talked some 'XX, do some terms risk add of be think like just in to points that hold of to year-on-year be of year got 'XX we about expansion? this Is leverage. of gains margin you've the has Darden gain maybe How XX in beyond most thought different, You natural and in about margin back? a said basis beyond current may XX on marketing you may reason that the

Raj Vennam

Yes.

get can some the given use economic whether of powder this have, got understand time. beyond. I to better model, get business we that's really there's we it's share and I And out holding to I like I other we able will we want I think we of where think, the most to are -- keep we term confident where until John, do to be next And or is. And we with of But the fiscal we'll more gains. get pricing 'XX and margin environment. that. I to on competitive we'll to to pull, had play dry think find Gene's said, have levers the And today, feel really, time need kind think real and we still just just equilibrium we'll

Operator

comes Your Bartlett next Jake from Securities. of question the with line Truist

Jake Bartlett

understand you see Gene, us publicly has capacity you why to why or just it's Garden at is? of a that others? showing than percentage reported. traded help Garden. Can degree lot in because of 'XX the companies marketing? of I less was that reasons it I it the the imagine the great other I couple recovery recovered, you But wondering, high versus have think, you're some think maybe is just a than as less less to 'XX, us a maybe increased But give have with Olive Olive a

Gene Lee

not not our margins. through not discounting heavily. And like we're cards. not We're third-party Well, got a food focused business drive average because over selling discounting drive others to put a fourth through We've quarter, our unit cash participating that's what that's growth. doing volumes. gift channels. business our restaurant $X are And to here for We're the growth? of running we're Isn't we're sales discounting in million profitable up giving way sales job In profitable XX% on. level we

where keeping businesses. in some there up they're two and the how changed with other years so are reasons And lot There's their going. a that's people lot of we're are handling why not of a

credibility you all not bit brands And by growing. that's made, average unit the restaurant get have casual best in little guests we're doing level a them XX-plus guys, virtual of even stuff and to got the off loving a And I a volume, this. They the mean business our $X high out love -- executing million we're and other of got in anymore, that the is with food. margins and mean changes lot. All this They we very, experience. this level. very we've there. I are dining, love at by the

in the -- not we're our going really chasing grow. index, where we're love today. chasing to But we not an think We I I'm I'm so past. to were continue position

Jake Bartlett

to What of benefits, May to vaccinated? the from capacity appreciate I And just capacity about is and the you vaccinated, don't a versus Why getting cadence guess being you and Great. do some about the lifted. cadence think April which the -- May to restrictions also I versus question We've May of are Why getting offsets people April lifted restrictions that. June industry the increasing? the being comps versus not increasing? think is people seen June. are

Gene Lee

numbers without across. as recovery. back to seeing good it's sequential normal normal May, We did very, from X we to this down mean some X fast XX look I'm understand. see And think a at strong as that's our I not I We get pretty our gone sure other start from get York March. in look that live very Fine people go it, improvement. from Dining normal than throughout back I going pretty as -- improvement behaviors, them think we're level to implied to months. in I again, These about been in We've think sequential we to And these a to like guidance New saw X XX has restaurants. businesses, we're more that here.

Operator

from with come Garber will Jared the of line Sachs. question next Goldman Your

Jared Garber

years technologies I technology? part consumer of having talked maybe quarter, space kind a side some consumer you And little you talked last what success this or on restaurant maybe the the younger wanted business? room see a enter on what think and initiatives you I seeing of of to in Gene know out, how Rick, of think, the attracting bit of consumer-facing the related some some with are you're do you to several any about tabletop the tablets. if the and you're the think about next And this in-dining we'll update you'll some just had the if is technology of the also brands. see there you to

Rick Cardenas

because Cheddar's the They so tabletop new because details going their younger The made, off-premise am people which Rick. have come to in tablets. have recently comfortable experience, feel The into still about is do that, the going investments is It's not that or new And is on consumer. just older may that that more more I of to This say off-premise. used a thanks. a Jared, not anybody about they're or us gives before. getting coming there want the get we confidence we to learning we are have Cheddar's, is come tablet. that didn't tabletop really are our their the restaurants right? to to who's At Cheddar's. I consumer to inside off-premise. to consumer come inside don't that And ability.

and how to invest, going easier it we're they to I in for to removing our for continue team make make as them. to where our want, said, guests easier they want, friction when and to so eat want And they members it serve

so to guests. new the new if technology to we're detail what without to not guests. or And that's the I'm technology driving do going on is driving is continue getting into going say new guests

Operator

next question James. line of will with Vaccaro come Our the from Raymond Brian

Brian Vaccaro

was I how Gene, to ordering also kind specifically that of consumer Anything quickly how specifically, at-home and home for sort a casual Thanks the cooking opportunity the or good data morning. other see not post-COVID do average expanded at an have want consumer for in? data of behavior relates set expect And consideration of in circle as back share you just to cooking that on you industry the in that to to positive occasion to occasions? pre-COVID? view normalize utilize to may previously where size Technomic world. it that consideration capture the And in as versus off-premise dining

Gene Lee

and never now they that can that, and used answered COVID. the you through that think dining -- think experience a dining I off-premise people And quantify your casual that's replacement. experience users, have your more I got you definitely not answered weren't meal is option that question would home but exposure good casual I'm really Brian, probably because I question maybe determined, for sure

the So to I cooking whole on think maybe mobility market hold seeing a mean I locked a going don't them to couple on travel. and home when new see to and time in spent down. you're I be you're and the an quiet still to in area where weeks. to of I to what It's able this that's meal heavily We increase Georgia very have states the continue were lot significantly, home compared insight in Northeast, of effectively. think I of that lot do at I especially last Florida that consumer replacement.

you marketing folks dining of have and through consumer to a if out have start over in increase into behaviors and to are to to occasion. what another So more how what tactical next to think marketplaces. was to some And plans And don't know be then -- was them months XX adaptive off-premise try -- COVID, to your where got behavior? these X get of behaviors. you what still better get opportunity and to that normal? on get I we an your these normal we'll develop with nine are as has this? going -- understanding get use the months, to I developing understand six And think going any problems what's And we'll still we've don't you restaurants what X -- the I an or

Brian Vaccaro

But embed a in And total the follow-up if That G&A it. you. Raj, spend terms 'XX? in guidance the sense. fiscal sorry marketing does what Thank quick missed of I and makes on guidance. And

Raj Vennam

I'll expect not what numbers, did tell reduced but on G&A I you, Without We significantly you just from G&A, expect into exact that like could leverage be pre-COVID. get the share that's I to and getting marketing the to we tell you. necessarily -- is think detail,

Operator

over And I'll remarks. turn consumer back final now behaviors the conference of and any

Kevin Kalicak

I'd call. have our to on great with day. concludes call That we like Thanks to market XX, the before results release you. you, and Thank opens follow. first plan Thursday, a remind conference September quarter a to

Operator

you Ladies and all that will gentlemen, conclude for joining. call. today's Thank

may disconnect. now You

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