Darden Restaurants (DRI) 17 Dec 212022 Q2 Earnings call transcript

Company Profile

Participants

Kevin Kalicak	IR
Gene Lee	Chairman and CEO
Rick Cardenas	President and COO
Raj Vennam	CFO
Brian Bittner	Oppenheimer
Andrew Charles	Cowen
Eric Gonzalez	KeyBanc Markets
Chris O'Cull	Stifel
John Glass	Morgan Stanley
Peter Saleh	BTIG
Chris Carroll	RBC Capital Markets
Brett Levy	MKM
David Palmer	Evercore ISI
Jeffrey Bernstein	Barclays
Lauren Silberman	Credit Suisse
Dennis Geiger	UBS
Andy Barish	Jefferies
James Rutherford	Stephens
Brian Mullan	Deutsche Bank
David Tarantino	Baird
Andrew Strelzik	BMO Capital
Jared Garber	Goldman Sachs
John Ivankoe	JPMorgan
Brian Vaccaro	Raymond James
Joshua Long	Piper Sandler

Call transcript

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Operator

Welcome to the Darden Fiscal Year 2022 Second Quarter Earnings Call. [Operator Instructions] I will now turn the conference over to Mr. Kevin Kalicak. Thank you, sir.

You may begin.

Kevin Kalicak

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

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

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

brief an XXXX will will financial an give Rick update update Today's discussing broadcasting some results and outlook. to to posted environment comparison quarter before presentation last fiscal in XXXX. fiscal Relations operating our quarter reference operated year's that 'XX. results measurements opens, capacity Any remarks, Investor to presentation. on of detail provide pandemic more meaningful followed the XXXX market earnings business discussion are this second the call. fiscal call, during includes impact darden.com. those in second Raj will We of pre-COVID conference This a quarter certain the the non-GAAP performance and in a limited on our the to simultaneously reconciliations quarter are share fiscal and presentation measurements are the on which This and is included to section due of we morning, Thursday, when our XX We plan release performance at during the as because third not of Gene March is a on financial second our and website by

call the turn Gene. over to I'll Now

Gene Lee

Kevin everyone. and good you, morning, Thank

creating memorable a brands quarter. sales strong the guest we've profitable As in environment, achieved saw on from toughest growth. the all stayed quarter remained our as had Despite Sales release we throughout inflationary morning, trends laser-focused our seen fantastic we you this strong years, experiences.

pandemic Our back-to-basics the operating navigating the to X power advantages. driven the and ongoing testament strength success is of of competitive by strategy our our our philosophy a

us to returning well, environment our significant in shareholders. strategy more cash our disciplined this to focus will has product People will allowed details commitment and that to share to manage Our about while be our a minute. Rick continue and

members and for time during delight The our on Additionally, have job that time team at create our business, Raj which year done our and color help our remarks. teams is managing effectively, of of teams to a provide the his the lasting serving is memories. committed is our holiday as great restaurant also guests, heart a reminder of being busiest the year, we're are This that our of more why communities. guests great they inflation service and will holidays our

XX food our our million and One facing support and food year refrigerated of is Feeding trucks foundation, partners programs, banks we fiscal ways pantry rates This to $X.X security. at America fight for distribution hunger. helping Darden provided of the our to by serve high through and help add mobile communities communities

our guests, the wish season. want of our On team Board to serve you Directors, all everything communities. it. to Truck hands by like relationships help, wonderful to need of our Lineage partners uniquely our food members and do to Leasing probably get with and the and for of you leveraging help a our part people are scale we're We who our positioned I And management do holiday thank Penske Logistics, and team and behalf into I

for of Directors. this effective Executive transition, Finally, join right earlier time Officer and will succeed Darden's continuing as look Darden's is today, that Chairman. XX, as me I Chief to May and we forward Board to announced the will serve Rick This

of is partner the company for over me seven right also years, and the is best one excited last I've this and alongside. time tremendous in my is who's the position strength, for strategic and a of worked a Rick, clear thinkers been Our family. I'm

Rick? Our brands opportunity team Darden's team the tremendous of is of lead and him them, congratulate to and members, have Rick wish our next Rick, behalf the to Darden chapter. the XXX,XXX want Board, perfect into the all I ahead management person On best. and

Rick Cardenas

It drive Darden's is each the strong work lead value. growth of of to nourish you, to me. platform, strategy appointed I to was the I'm with am Chief Officer, It appreciation team so upholding CEOs, their a and everyone delight our be to humbling incredibly our Board confidence and and I Executive By to an for I Good legacy Thank shareholder continue to outstanding honor and to XXX,XXX commitment Gene. the excellence, morning, Darden's inheriting. grateful have who we of execute is will fortunate everyone. in next and Darden leadership maximizing Gene power members operational the we for serve.

quarter. the Turning to

a Our level. execute at restaurants high continue to

our on shifts. Our our ensures and and improve. chain our on why in the on they Across once current people staffing made the is to norms, and distractions the staffing simplifying paused From running we've above we also feel levels the to supply navigate about perspective, priority, we to progress focus staffing brands, eliminate manager staffing continue great historical operations as member in This through front. again a on and zero we team product, are to any good challenges. people levels operators order new pause during allow quarter drive top execution remains can initiatives which focus

source Our to our has focus new talent, more giving successfully and teams new members. time made training management easier system hiring it to on onboarding team

further to earned our by We through this Earlier committed hourly the to invest strengthening also we January members our $XX, XXXX. which income includes members, our restaurant minimum employment continue earnings gratuities industry-leading team to year, in increasing proposition. for team

timing primarily approximately restaurant impacts This will we on XXXX. However, given such to earn, entry-level per accelerating the as hour. January $XX change, we members roles with And dishwashers. busters strength average, team and are of our hosts, expect that performance, this our

the are people the our the will in team rates We our in the retain proud and are to to and industry, best in key the continue our hard for performance. we're Our managers both be employer quartile, invest we members retention of choice that work and industry. attract them to in and talent top to

continues the they restaurants need On a team to job, great our the serve our making supply products our have guests. side, do sure product chain to

allows the be team's time last needs cases the are that levels history. the to of seen meet The enjoying of shipped our more highest the Go. our to ability executing rooms the to at fact minimizes quarters we the To than distractions in operators Darden's restaurants for during strong, in whether maintain and ability focus at on inventory and convenience dining our or guests two level, in supply continuity our Our business the can any are

To accounted to more sales of XX% the and and total our at all Go Off-premise digital makes total of Darden's transactions off-premise for total During Garden during of Steakhouse. our convenient not XX% benefit pay to for of platform. pick Digital quarter makes only execute, sales. sales sales sales of our platform and sales XX% this up. the guests strength at LongHorn accounted XX% for from visit, it it order, it This continued teams for quarter, to easier Olive

historically, for Finally, I been during on team including than restaurants Yard with want our today and we members staffing I Times successfully to fiscal a also XX support and in safe flagship to longer we challenges. hardware. and happy see a equipment recognize our new for House tireless you wish a lead experiences kitchen is all our track opened for in technology XX XX Square, year. times to season. to wrap has it creating our this time restaurants Regardless, To are beginning restaurants remain quarter, up, center, to restaurant build minimal longer your open exceptional holiday in The the new approximately efforts also new and we guests.

Raj. turn I'll it over Now to

Raj Vennam

addition was improvements we model from sales, share $X.X resulted of and the $X.XX. XX weekly resulting grew operations XX% per to continuing everyone. business compared XX.X%. year Diluted pre-COVID. new quarter half, were X% net higher strong second points same-restaurant basis you, driven over last billion, past were by EBITDA million, the sales in $XXX and restaurants. the by Average compared EBITDA Total earnings made than significant to margin Thank in growth The good and sales Rick, XXX with combined pre-COVID. of margin year, than of XX.X% more sales growth morning, for net Total

its this We to the quarterly fiscal has be margin this quarter highest most EBITDA year expect growth given the low seasonality. this opportunity as

and with dividends performance, return to total $XXX quarter. investors $XXX cash and shareholders, million in in continue repurchasing totaling million our with inflation to both to our pressures in significant over quarter. shares, exceed of while X% And cash $XXX million of we're expectations labor to happy commodities this on continue returned paying the cost We

in through this to managing Our continue demonstrate environment. agility teams

of implemented team we to business several quarter, and preserve This balancing our impact model the mitigating actions members. our strength the while to guests

pricing. One taking was these actions of additional

total back pricing total X% quarter, for just pricing second to full of fiscal half approach X%, and expect we year. was in X%, the the resulting For under pricing

consider short-term of by to the scale. our be impacts more the what structural our value This of to to of our be execute strategy current covers a strengthen pricing most while significantly consider flexibility level be providing and environment, fluctuations, our of we what to absorbing inflationary continue should long-lasting there we below need. and future pricing We overall position inflation leadership leveraging

and the For then we slow to in fourth commodity labor the the commodities our peak and start of rest year. quarter, lap enter last we inflation third and fiscal quarter as in fourth down year, to X.X% of the inflation of expect quarter

believe comparing and more to Now XXXX, the of second opportunity. in and results against our turning expansion quarter for performance to quarter. normal which with operations, framing pre-COVID how business margin we We're P&L our comparable are second been the we've segment

well basis by food food size due and wage basis than sales resulting was efficiencies from partially X% quality, significantly which quarter, the basis elevated inflation inflation. higher, favorability. by XX Hourly lower $XX were For operational commodity portion expenses investments X%. million points to by offset below spend points Marketing Restaurant leverage was gained and in were leverage, beverage favorable, was expenses elevated more almost second pricing basis Restaurant costs. XXX XXX and higher of points inflation the in labor pressures. of sales and driven wage XXX driven as points quarter was offset simplifications, utilities lower, during as

sales than leverage. G&A savings by driven and a expense fiscal from As for the XX.X%, better margin pre-COVID a restructuring result, XXX points XXXX, was Darden was lower, in basis corporate basis EBITDA in restaurant-level levels. mark-to-market points decrease XX expense

segment Turning our to performance.

Garden we Garden, helped points, quarter increase strong a basis Olive at increase sales especially while were Second against business of XXX its pre-COVID. strong This model sales nine wrapping of XX% combined offsetting the weeks as performance, segment versus LongHorn profit margin sales possible. versus at pre-COVID, continued increased improvements drive elevated with Olive growth, never-ending with X% an inflation. growth of even

including the this pressures, level second inflationary profit basis in quarter, by more margin at resulting leverage grew XXX efficiencies, at than for performance. Sales points, operational and margin in highest double-digits However, commodities, commodities Fine increased continues rebound segment profit which strong XX% offset segment points. pre-COVID, were Dining their segment versus by of our to XX reduction a driven basis double-digit Segment as see sales in inflation. strong by

grew versus pleased points. persist. business to pre-COVID This model other by transformation profit segment sales well, basis X% see perform margin XXX continues we're segment segment to the and and Our by

to X% all rate of includes the $X.XX net billion implies the and hourly XXXX. commodities to for inflation billion growth earnings with between for turning $X.X reflect restaurants. billion, pre-COVID, pricing growth the X% XX% and approximately and growth $XXX X%. effective from approximately Same-restaurant with expect levels. diluted inflation X%. X% XXX labor total tax XX% our X.X%, We wage XX%, of updated spending fiscal year-to-date our shares share million. pre-COVID XX% outlook to versus to inflation our to sales, Total our remainder similar XXX between Finally, of outlook approximately of inflation outstanding restaurant $X.X year, points This year. to our outlook $X.XX. X.X%, which between flow-through and XXX representing We $X.XX billion, of XX% full-year approaching previous diluted XX%, $X.XX in performance and Total resulting and of EBITDA of to offset of higher EBITDA annual and margin per elevated sales helping Capital outlook from average sales new approximately for of and the performance financial expected inflation. basis million for now the to to

Now questions. we'll take your

Operator

take We'll at first question Instructions] Bittner [Operator Oppenheimer. from Brian our

Brian Bittner

midpoint Darden and not better turbulent environment, inflation enterprise surprising total EBITDA its years. to unchanged is morning. this but your as is question but cost the to versus so and cost. I foremost, and both you prior And an for been position given and moved guidance done the the inflation it's Rick much your to announcement bit a today. your Thank Gene to big question I know is analyst the congratulations what seven up on over margin And last the and related you've pleasure not that guidance. at want good just reshape it's My you witness goodbye a yet, say, to Gene, first truly guidance pricing

have about on as a in future? as you the your the future to So the these remarks. we need something on as talked you're you the go been actions you to a to it's this hold you've margins? use you obviously in is foreseeable levers which Should far about that goals price, are if Or these want firm talking EBITDA the taking commitment to Thanks. margin pricing bit line continue to confident pricing that about? prepared for And interpret more you

Raj Vennam

Raj. Yes. Hi, Brian, this is

two I model pricing that the shown the quarters out. business to, have where the think we we're the business - and as to now on of to our adjusting on coming we adjusting we've XXX based you thinking at committed through model, our year, XXX beginning our alluded is

to I we of we - some we're But lot offset And we said, have costs powder that we and excess is these focused So our dry flexibility, way elevated opportunities as if a we we But pricing. inflation. manage needed. we P&L, this of before look take to are tapping think into that at help going at of are better. doing we to some do it continue on look thinking are preserved with and about of have of some And that. more believe we the sales really some

remarks the are we The the kind - was other the really I piece mentioned prepared fluctuations. for it, on And trying to parts of growth. in that structural weather then we're cover to my of margin through short-term pricing to focused but and committed

Operator

Charles take Cowen. at next our We'll from Andrew question

Andrew Charles

and for on And echo Brian. congrats I as career, at but First deserved had a promotion. to very story foremost, well congrats just Rick, Darden, two Gene, well. not a rare you as questions.

The really that XXXX, much this competitive promotion to over months? steady the mentioned, calendar your guys thus the last that in of And on the think we're impact really do as how basis this far, will a at the few changing marketing promotional really much. - occur is Olive how plans are strategy Garden changed two-year operations. not and advertising likely without about first And improvement one year? focusing you start you saw here environment changes as on XQ that And

Rick Cardenas

Andrew, is Rick. this

that am the your First say strategy. want of his did growth. with exceeded just QX, has we and We all, how I I Dan to have done, to of industry trends proud and in keeping improved comp team our work

thanks noticing So that. for

spend. we spend earn have Darden's is we to spend continue to if to we're return of scale that Advertising accordingly marketplace. have. any look expect we'd increase I in a marketing because if through where equilibrium we've happens and mix be to and And for marketing react compared about will going we a think they thinking things our didn't marketing always were the part when of one the the been of advantage to whatever it

with feel to So years were. we're And We going less that to this than happens. heavy continue we did million - we we ago. media where there's see know there in two some what We don't TRPs. about had out we advertisers $XX good quarter some

Andrew Charles

follow-up term the pretty picked as steady that historically, least. at term? XX% XQ mix Garden settle in be Then longer would led you'd know had said you off-premise The a likely experience business decelerating to before dine-in question. at been off-premise Olive And the to I XQ. XX% up. can perhaps Rick, was quarters just This Garden recent sales off-premise longer Olive as to believe XX%, But plus that from

Rick Cardenas

typically We Andrew, higher yes, sales quarter Go lower a volume there. had Go this were is you a mentioned To Olive state our in were - at QX. the Garden bit they To for sales up than us and little a

be, we helped bit it our is that to what So stickier XX% expect a about than we To thought. do your we answer our higher to it It total question than we expect be said. that percentage. little

were little guys going above we at expect thought. You stickier to necessarily not XX%. We're than say, probably be should a that, right all we about but to XX%,

Operator

move question Gonzalez We'll next Eric at to KeyBanc Markets. our from

Eric Gonzalez

Thanks question. to it And my accelerates can question as a strong is given a attack little industry Rick. shopping? demand, How And the you that Gene that like benefited X%. and to more might the My relatively for maybe November earlier congratulations have like looks from to for I'd line? talk to over the also give the forward a about of was of which that trend pull holiday brands is phenomenon? your of much the of month sustainability

Rick Cardenas

But retail bit and sales tell Garden we industry is were November forward early shift, Thanksgiving, early online a to the to shopping. said have know Thanksgiving was with this some our of we're We that. ago, of normal Yes, industry, and little of before, and from from do pull it's Day. tell on as quarter that third Olive years so say do I two I was we've the ahead were What retailers Thanksgiving too back it's a too than as into second about this more saw the did. year closed it Eric. our LongHorn. that in same We quarter. kind if And increase shifted impact that Yes, quarter the that of a after kind said, would seeing a

but biggest holiday well we'll during early I weather weather lineup of a caveat holidays comp. for and If a then quarter, on bit the that saying be that do happens. by So is this little us. too challenge what all pretty a the to still fluctuation see period, in tell, will hits the could

Eric Gonzalez

on just of then the And seasonality the business.

I talking overall the lot second a members EBITDA is think needs that Raj growth was highest in I'm about period, of the how number crew of happen was just that given there's higher. staffing during the guessing holiday quarter. to

talk are So margin quarter? can staffing in environment implications you third the the about this for what might impact margins? the how And

Raj Vennam

think volumes think seasonal when I has a Eric, quarter, higher. about QX, the right? are From Yes. you historically it's - strong been

I our Our range are we margins you XX%. really annual was think mean pre-COVID, when to were high. go around for in third I back the quarter if XX-plus the

to here you So approaching it start XX-plus to starts that get trying the is I point that, once percent, think we're make harder-and-harder.

XX-plus costs periods, so So holidays, volume. lot gets that's that, staff able that. get QX, we're part over - opportunity to that about of the But talk fixed - you're harder-and-harder a harder. you're is was to some staffing in peak at really period want - more staff is starts what leverage low when during just during to We it volume and high especially that's we is The trying the staff, better, because the to overall, there higher. do of

Operator

Stifel. with O'Cull Chris to next go We'll

Chris O'Cull

past rare Gene, and the congratulate been to over like Thanks XX years, Gene covering success the a follow Darden. I'd had you've in to for taking pleasure question. the also Rick. it's

congrats. So,

quality level start Garden, utilization capacity an made respond Or has comps really the to the given promotional think to company have acceleration due staffing customers difficulty] more low Rick, there? So, at you improvements in improvement the was [technical Hello? the of some you in Olive remains the and quarter-to-quarter? ongoing seen to

Operator

Standby.

Rick you, Chris. moment, join. And one Just

Rick Cardenas

that, about Sorry guys.

Chris thanks This is the Rick. question. Sorry. lot for a

We did our As is two ago. seasonal second run a reminder, years lowest the quarter. NAPB quarter

above learning two that productivity the more we fact point was So, we in aided never during were without over comped possible we're aided by becoming the you really two years staffing, quarter, more this proud enhancements any fact curve made and quickly running. members ago And - new by moving that the and our made executing that And something and of productive. up are: team really could want. vaccination we've we're the you up core the investments in are be about as out. more that levels, being The at these we just QX people are rates really made so items have, dining a high mentioned, great our They people level. the made comfortable investments fact there in great, maybe ratings the items. value And

Chris O'Cull

you trying versus kind related what other pre-COVID commodity you inflation that much And one And to how they're inflation. that be wondering into packers, if helpful. get prices restaurants but processors, temporary? at That's pass have I'm believe know for comparable is period? And question I to experiencing. the of distributors were is if or could cost this any then sales to whether just of to to I'm that if commodity levels Raj, understand through going Rick don't back inflation insights how are commodity can permanent

Gene Lee

Gene. it's Chris,

here. in lot inflation. jump the world the that's about richer. pre-COVID I of the infrastructure think commodity this, without what feed just me able And Let world getting And to a was

produce believe of needed food where the in that. to will And the get everyone. inflation be feed infrastructure an a so, we'll And that be think I equilibrium able there'll lot commodity I to don't to back

I be grow think commodities in, food. going is is where to in whatever inflation deliver is come there to the labor and that impact to going

where all technology in a tremendous I XX to inflation last the And way happening have are with that it and decade there. think there of to think do other that aspects. we I still something global was seeing food. work months to had its weren't amount But And capabilities still to I - out. XX all that for so, And think we over

in and on what I'd what involved product the is - to so labor and end on have impacts don't what harvest, grow the is by and we know commodities. much - how to is saying so, going And the and just are so deliver labor each And forth?

I question to I see was, to don't going and wait COGS think know so, - end mean we're think And get we're I in I the historical back I labor it I take all think think Yes, cost over call time, and will I add will back drift the models what these COGS. model, time, to same we your would a of but prime - levels.

Operator

next Morgan We'll Glass from question take our John with Stanley.

John Glass

Well, on other good talk Gene hour, and when can just when congrats, of it others advance still maybe morning increases. well. low, it the and there's I Rick even Gene, to and general, just Rick, number your as retail, in see you gratuities. a payer segments others maybe or about in the is in the includes hats-off, in the or could know retail top like to retailers broadly, industry. hybrid relative seems to other need you're underpaying you and quartile wage XX $XX restaurants, some unpack - continue I - that? compare an think just first, I the dining it Do industry though, you number And you to casual guess if

better we benchmark the have starting really just of what example, including maybe the wages, gratuities back don't which So maybe is we can so without exactly the handle a for on. house

Gene Lee

after goes we expect effect. to average said, was, start we basically $XX think into our approximately Yeah. John, where this I be I'd

an make minimum This I more in entry-level is wage. company people few rural our very would wage, America. Now and what call

anybody - than other will probably brands. And guarantee more our so the workforce, the impact increase today. in you're in have to not of an Cheddar's for $XX This cities, on hiring major is hour any our an

so geography wages wage much or And demand. very, depending on very, very starting rates overall and

the our the same We of $XX house. that an to for environment. have in $XX on make in of back people country, you're that And hour job hour that some an the the environment $XX doing depending - in parts

this question in dining little, - think believe too around casual don't I so don't paying your that's macro I true. And

than with they staff I'll staff the leave quarter we And last wage on quarter situation strong, - think better were good more think - casual in probably that And better have the and still way And rates. staff restaurants Rick's very it we supply about comments is the may that teams staffed. focused staff paying way to enough think the they're demand. our retention we bit market And before. in the that fully out think I overall are workers and very, strong to it restaurants, Darden's doing of job this, appropriate ensuring are looking there's restaurant I dining in that America, encouraged in to the about enough I rates service every of and ensure competitive based that that is we're that's think workers our restaurants there each not paying a marketplace there service little be are but I think a at today the we're our by what we're and you on.

John Glass

putting they Are could what back follow-up, we you more that initiatives of right I those they hear. over some Rick, maybe back? And to come One on that great put focus is think they operations examples on some coming examples when What you've those? don't about marginally pause? think of - sales-driving Are know initiatives mentioned some That's to on are, you I are what they time? now. think do initiatives but pause

Rick Cardenas

and to things a of think I are training about related not directly that staffing. couple

development, new one sure and of lot our our that things got on and that or we're staffed initiatives, that But year products those on restaurants trained. two a development, product for new restaurants great. working making years, still we've got we're developing just are staffed a focusing really we've we've we've So got like people done our but

do we when ahead was keep can go their we entirely staffing people. us on And focused making managers this restaurant, time and so thought train not that right to it during they for sure their

on still center to the was technology the a in getting that's are example. that ready things an lot that a doing lot gear here So example. support one but of We're front, up,

Operator

take We'll BTIG. next at Saleh question from Peter our

Peter Saleh

you congrats morning of end. my Thank couple Gene and and both Rick. and Great. on to A good questions

of guys do open in more you units, in Or to Is kind short-term getting that? lead some little really you months? nature? I that you of And persists that mentioned Are something weeks equipment we give you color the that? times while? for think bit on longer see that any is a talking or end to think us there. a Can more

Rick Cardenas

lot weeks, talking restaurant not We Yes, have we're this starting or longer on to a might that, we go of We're And which not weeks. open restaurant and a or that but up, inventory making actually items is time few there. Rick. long open. these inventory, lead holding driving a the weeks we little ready two months, are is to may but order average, here a have bit our sure that to equipment costs a kitchen couple lot the the in than them sooner, restaurant of a when

long. So not very

Peter Saleh

labor And reduce that hours maybe are could necessarily any other my other there equipment or you help some of at processes then or lastly the implementing technology or kitchen Is the on that restaurant? end. guys just any in looking other

Rick Cardenas

technology. and on places, three I'll the focused Yes, technology Peter. about always big restaurant We've and two ones, our guest-facing talk in

you if side. we're what restaurant on So doing think about the

so have lot other time the reduce pack do and they we a need doing they we processes the But their technology improve managers don't for to that foresee that in help don't training people. productivity, simplifying do so hunt are things people to their will can number of bringing that We to spend and that of job. things

expect. our full-service to provide that maintain and restaurant service a are company, the we're going to guests We that

bring will technology replace. not help necessarily We but into to that,

Gene Lee

interesting in excited machine every that, and forecasting, into forecasts I for stuff. our slick forecasting Peter, of the one machine the do day. some has turns our fairly that's there's productivity. learning real our we some around is think most And single And most - learning think about that we things pretty business is that upside That team that restaurant forecasting one things developed business is important the of potential. I'm

can increase you at really your your predict the can productivity level. you then If store correctly, business

Operator

Chris We'll Capital take RBC our next Carroll Markets. question at from

Chris Carroll

my And congratulations morning. Rick also I good announcement the Gene and want and today. both on to echo to Thanks

up how higher-end challenging be received how but how others? thinking, cost levels closer take pricing historical guests. today's brands, through brands? to different while Are hear to your pricing you you at does a to still So the on flow that for following by pricing pricing environment, more just pricing. levels the you're And keeping relatively Clearly, to curious expecting expect

Gene Lee

let first. Yes. with me Yes, Hey, we latter do. yes, Chris, start the question,

you spectrum dining that level Olive pricing. higher. can overall So Obviously, probably pricing when highest say the be to the going fine Cheddar's pricing, the to are being and at all you are look Darden below the Garden I'd assume almost other of going have be you our and brands will

reactions, time. obviously, the as this we far guest As over track

been of relative - One more comfort helps factors in we're actually the I - That elastic. how fact one of that. price look as more you CPI. the things pricing below been - the key that's do that the And we we've lot that how of elasticity not we to have noticed is that much at think a hitting lot gives that portion us curve pricing a we

which below point, pricing it's this at inelastic CPI, means of have we impact. the fairly significantly is So level

Chris Carroll

just risk any any today? a guest COVID a shift change not can there in response in latest on asking That as just sense provide seeing Thank perhaps whether recent to demand you're is would in behavior any is you. question be regional early, concerns that this basis with of levels helpful. follow-up, suggest on observations in would any you the too weeks but And at us or

Gene Lee

I simple no. - that's answer, pretty Yes. a would

in - weeks real this surge in what this think regional. I next We this for York a to behaviors mean you England It's seems I wave. towards if Times the haven't early now. be see New map, in the heading any change could study seen you few New

of so been call, overreacting. into, the that's would most a been And sensitive what that's I part country maybe

out behavior. you as - would we people lot there, who halls to there's going to any react that's take big So of the got those seen this, say look see that and at certain the set All There's but modify and we fatigue a that it's - certain to haven't it percentage to is on. to I see. of COVID do a to today, going change are. just a continue concert going I of population's there's significant we'll a to mean but certain of just is population percentage stadiums

Operator

We'll go at Brett next MKM. Levy to

Brett Levy

Thank Great. their next endeavors. you. to And best of in luck everyone

when and and it you've still end. labor. inflationary with a opportunities improve just how the and the sales for think the the you're about at unpacked guidance the fundamentals the to on your where thoughts raised talk obviously obviously, When your thanks, Thanks. commodity line you So year? capital Where you you lot greatest comes about level? the thinking Can see Gene. us CapEx, items the do you you think through Rick. that about your walk from, unit Thanks, And you beyond to provided, high that

Gene Lee

Yes. I'll start fundamentals. Brett, Gene. the with it's

difficult goal level. are part simple bring the how of on a the the that wanted this competitors time. of think focused us we them guest the brands can of at that - to so. and to And period loyalty as along we year, same we the make said we laser can head Rick things problems do our and win possible along. I of productive bring as out-execute earlier, them how population the life our our into percentage similar do we're through that way of fundamentals keep to is them the new ensure And the we the is we trying high very know to - we have, We population for now bring do execute busiest - as right new having employees as just and most and employees,

advantage so and to and training, think Raj, is really that's our executing is what you we're telling us. we're we're really that right that's that's where want our what a great better got high confident at - - And We've research level, I our now. We're doing staffed. take CapEx? the

Raj Vennam

clearly, environment related that given higher - on up construction this there CapEx was going we said while little are a the inflation, in what levels Yes. But they are Look, - CapEx bit. overall, costs with the are we the with are We're this of efficiency still very earlier, the high the the unit strong. improvements provided guidance at especially made high. the end had returns capital - spend of really actually we level, is still

than So stronger before even with elevated CapEx, returns getting the we COVID. did we're

Brett Levy

just And want of staffing now to If that Where to be level? follow-up compares right with yourselves quick one on I terms staffing you. see levels? where do could in pre-COVID how you at question. you labor Thank

Rick Cardenas

quarter, of is this second with at in about end Brett, the first staffing Yes. XX% pre-COVID I'll Rick. where we XX%. start the of were at the part. We're levels,

So it don't I need we the will we before. But the don't that that means increase of many because enhancements over continue made we've people percentage. these years as to - we that, productivity as say in brands,

So our The staffed. complicating a seen most the majority are restaurants well exclusions still of we've that are factor.

for most COVID, we're weekends still busy. when complicating the on As they exclusions especially - factors, the

them. continue to train hire keep we just want and and not So people we get that We feel can week work levels. that excluded every sure to trying and to make good about be our staffing people

Operator

go Palmer at to ISI. Evercore David We'll next

David Palmer

full or is XXXX not down second diminished the for biggest Rick. and What pretty The levels. it that's brands much levels in you levels? comfort focusing versus Darden, recovery And pre-COVID Thank really your And traffic else? on-premise on out Perhaps I'm major capacity across striking XXs traffic you. this your curious, of on-premise the Congratulations, are how versus there pre-COVID half the it's something an covered are Thanks. comment assuming down guidance? in then at fiscal number. can high traffic why service on the a segment, on-premise think in reasons Gene you US is? Is you And this point? that

Raj Vennam

just part me Rick in jump and the about on the I'll let of on-premise traffic, first then Gene it. the answer aspects the other let - David, or

level We talking XX% about. We're on-premise. seeing are the not not down of you're decline on

- system, overall in when digits single look across are probably of you on-premise decline. we're the at We the

- So think what actually referring that's is higher and the industry - yeah, but are to from we different pre-COVID. LongHorn, I you're that's is, than so on-premise

double not the alluding And in you're so but - single-digits decline, and like overall the digits Darden to.

Rick Cardenas

of And I'll the that. the Yes. - take other I'll take part

little we've maybe the been of think more will on out stay we in-restaurant to long as order why in in levels run, believe our making coming levels, back come often we believe continue increase eat. get going pre-COVID convenient, our as very the often. staffing it investments continue more the confident and off-premise on-premise become bit we we we still off-premise as a more that our up to We pay, could back in elevated is side. and in that for But experience, our won't we see as become comfortable get off-premise As we'll invest the making people experiences more food to in level, our and so experience. run, long going to to back pick guests to often people our That's to which people easier at

Operator

next question our take We'll Jeffrey from Bernstein of Barclays.

Jeffrey Bernstein

just had follow-up big and mentioned you related then to you the to another. I dining a get you what congratulations, question, to performance have point. that is fill. and Rick, full some back Thank Olive returned to LongHorn's on have certain follow-up shoes Gene the then I one expectation in-store couple about Rick. Great. much to very Garden full to that earlier and The with and at in dining. in-restaurant last strength just want stores just

range Just XX%. Go wondering you that I averages the what XX% To of businesses, and mentioned of know it's

you it hold to could on-premise the Olive of sense north seem you Just still get the around back might To suggested get trying if like on terms that because of Garden would of fantastic Go. be XXX% at what win to to a XX% range in and

is So you would be any color how of terms could incremental that think of you much add great. in

Gene Lee

Yes. Jeff, it's Gene.

this has a out deliver we stated We we stickier to a know guys gave And and And to experience guys the made that - that wrong As going credit, believe this stickier. to were don't ability wanting friction quality often. we you that though technology we've back can off-premise you right. that as Rick experience we get on and Rick thought. But the earlier is taken We lot originally created equilibrium. alluded that our keep don't to it that seems that. were we've and to say what than

close equilibrium. to to We're not got haven't equilibrium We yet.

know say I on-prem. I the there's think look mean, don't still be would off-prem on-prem, based some when what rate regional about we COVID. going we is at that So how on long-term people run and to differences

to we have with one time excess staffing of that than throughput staffing through continues when better. week, a our It's think comparable I the think and some when And lot during I basis, weekend, I - working the to in people they over that that more that that some as the throughput know the think be to we stronger has become we're think on-prem, look on are more Thursday the Monday we getting an develop I also a demand weekend. we more repetitions on where at at have better issue. look actually restaurants, - right do the proficient productivity now. believe on we of and we'll and we through sales,

on-prem doing they pre-COVID. still struggling we're our in that a guests than We were have where pockets restaurants lot restaurant are bit. have the more in little of today system We a

I real And that's that think opportunity. the so

than end market way our all our to pre-COVID. what - what or As full XX be up demand as in aggregate going people, being overall this, going got the the I we're XX% strong that's at greater believe in our we've investing service opportunities we to doing move got got we And as dine-in, restaurants do forward, to or look through we've to we've if we service less - capture is we investing product, share. going in done, been

Jeffrey Bernstein

to of does my improving related made is And seem industry the like comments It labor. then late. the about you just follow-up

like challenge pretty we much back you. to you get wondering for need attribute that. to thoughts back should seems on back that said staffing to you is what it's big you're now and XX% staffing It And still mentioned think Just had I your a don't XXX%. to you of

full you get is wondering if greatest to you. have that challenge to back just staffing XXX%. close So the that from it a where you're to really full perspective, you XXX%, I'm that that Thank need don't

Gene Lee

lower business where struggle your obviously, our models our in - probably a a you isn't afford lower-end got Yes, average lower that we the standpoint Jeff, luxuries of don't other from afford you as basically - brands models some yield aggregate. the and tip the your in business and pay high, I check you check think we structure most average

So guests They be through a through so you're those struggle high-volume businesses more running little businesses, a bit businesses. more. lot tend also to those

restaurant And so, labor improved getting I to contributing think that, into I things in couple obviously, industry, think and back enter been the subsidies I the unemployment there's can people confidence workforce. getting a think that away of they more from the

I I and lot think days XXX were still XX were in than think that better things were childcare into they But are getting ago. workforce. a back the people days they probably ago they barrier the biggest today for

Operator

We'll go Silberman Suisse. Lauren next at Credit to

Lauren Silberman

to ask investments. about wage the I also wanted

you risk across year? greater differences you employees big seeing the challenges to make ability any look and another your to you next how portfolio, the geographically? commitment And retain recruit need assess are in do that wage or you'll then As

Rick Cardenas

Rick. is this Lauren,

whole we're really our not implemented and York. on pickup. more is any across system. in differences seeing the actually seeing staffing, of aren't the lot We in New restaurants, We're a a challenging staffing it country as Texas We've new

accept an incredible that's proposition. great thing one people The hire. a it, of we an speed thing. When employment our increasing it's mentioned, we As we've and offer, make got

to that is think nature. I the me, so, biggest And

employment to come Our to strong work people us. so for is proposition that want

future guaranteed that we're at looking now to of Right we at us. $XX thing wage. need number minimum the to for right right have increase it the now, As kind - our relates is

see mentioned, monitor wages hour to increase after we basis. said, and around where over a and to average As Gene we'll on $XX change, - need $XX and continue we this an that market-by-market we

Lauren Silberman

transitory? on covering Can the as expand primarily what commodity to follow-up you price a view structural what fluctuation. just labor? short-term of just anything And view you as Is absorbing it related or and piece the you Great. most on Thanks.

Rick Cardenas

more labor No. as sticky. We actually view

transitory, front states, see beef - the already really is you come where proteins prices see up, the you they're of commodities, - we come and to of especially coming some saw focuses You right? So, especially where some that down. the see starting it pick on middle on them you're back, coming

Operator

Geiger, question comes from next Our UBS. Dennis

Dennis Geiger

big you. Gene congratulations Rick, Thank to you and both. a

question, just wage pull could of another in Just to forward that regarding was much forward? the the labor. increase that of how ask then the where year announcement, pull And inflation the speak minimum noted that quarter? or to you target you of is first efficiency to on wage related the for labor wanted I productivity Curious if

Rick Cardenas

Yes.

portion isn't of wage. me wage second question that part of the Let grand back year. the the with in half the of on scheme very really in a we're much us start very seeing small the the It's of $XX costing inflation the things. That

And it that. at so, leave I'll

when years in our say, On - were first remember, ago. I the is second productivity productive years quarter as we quarter. side, But the we we're more ago. the we than two as were quarter versus two lowest will We're were about productive sales

more bit So little QX do in difficult is QX. productivity a than and to

Dennis Geiger

great. to consumer this lower then perspective income question, could typical. XXXX. question one you? the behaviors some the that, then yet pandemic anything make the consumer recognizing health, about there you here demand would you seeing starting concern consumer the just Is now more Just thoughts what how just Thank and consumer and Rick. across think on there of, into And impacts going you. overall sort that's consumer broader be on and are right of But, Appreciate

Gene Lee

mean, has consumer out all is statistics the at, the and been consumer they're sheets you the The personal never look look you at at healthier, Yes. where right? balance when learning. think I I there,

expect still I be through wallet been even to historically It's at XXXX, to talk transition when think about to calendar at there's look low, gasoline, I prices. lower-end a inflation - it's a manage really behavior horrible And think about consumer. And current share the the would about expect if But thing of inflation. has inflation. just to you and how as continue we to learning you the consumer that, think I strong. when of you they’re would the - lot

having And so an people two want I to out over economy, not And than choices. this regularly I think think more to after they've we're experience that of XX had I transitioning still think people are years. experiential making I going experiences experiences. and that the eat is months want people believe past do have

so, where feel about really And I consumer good is. the

Operator

Barish Our next Jefferies. Andy question with from comes

Andy Barish

of people Colorado, the happy, us progress just in little in I’m I XXXX that during which it’s to unit bench been a think made finally. growth Gene, you of, of to a that's Quick showing - has start in the of the question in noticeable here see things, challenge, from ramp strength can And on Cheddar's, biggest building side fiscal pandemic. you kind bit a for are a of review give terms brand? the

Rick Cardenas

proud is work on Chedder Rick. Yes, Andy, has done really people this the the We're of front.

management the couple far for were promotion much a detail restaurant without turnover into away They've are too managing partners getting P&L. of statistics managers added within. close from Olive back continues year general managers all and were Their XX Garden they of LongHorn have more, on is a our I way ago. to couple that that managers where of years percent they general been me Let added or you on general they're give believe a to the their improve. last - where that

fiscal Cheddar's strong, And openings sorry, expect years in XXXX. - building than We've to a fiscal we're pipeline ago. in XXXX - of say in that Cheddar's XXXX at we a couple managers. in do couldn't got did You in I'm at had that strong we of we than yeah, fiscal have more

we business their this partly that in they've the us the they pipeline building but So of because excited we're in they've where a model really business highlight, they improvement which segment, people. gives more even made, in they're which improvements had model, confidence can other don't grow are, because that with they're significant

Operator

Our question Stephens. at from Rutherford comes next James

James Rutherford

within Rick, marketing adding back biggest questions. the work the main dollars margin you will is marketing when one consider the sources as of to factors determine it's Thanks business. of you incrementally? business some time your start into expansion to What still for

Rick Cardenas

the Yes, thanks for question. James,

the gives equilibrium continue money because into ability always spend still As their advantage we of in they an to the will a earlier in time lot a today. when Olive be at Garden mentioned The scale. question, them restaurants our we'll to marketing. to have in We And have size, that marketer of look come their comes. demand

implications. to - whether it's our marketing But want to do I spend make profitable, reduced based We we increase decision, we that would overall. if when we whenever would have make - tell when that said, that whenever as I didn't we on we marketing that compare have strategic marketing. would as we would ensure that that is we And what you decision, we don't do

of couple we margin even with that margin in So if some we our have marketing. still maintained I tell improvement have dollars, basis points marketing of had would or marketing increase spend. improvement a we you will hundred

it our back, that reduce assume bring it's to margins that we when bring don't So the basically marketing amount back. going by we

James Rutherford

general of execution, it is think category, retain has you for to to as value-focused question take back as on a if appetite to second consumer from a and the consumer begins potentially which well clearly robust high levels stake LongHorn, strong do mindset? when benefited as shift these more My will sales what

Rick Cardenas

asking quality. team been in to for on journey and that his invest a LongHorn. has Thanks food Yes. journey about been And years. have Todd for

and we've of before, food. of that of our sides, improved we've the all stakes. our increased mentioned our we've sizes We've As increased our improved of our We've stakes. size portion all of execution

tell but has you we best believe category this to years LongHorn. we're proud but number They're and what state level invest continue and they what the that by grow to at the yes, make and be in casual so that we will consumer continue been in they our and product. dining, will one I those continue the And things. do they've have comp helped demand, sure execute can't over future, to done of the quality to continue to

Operator

question Mullan comes next from Our Deutsche Bank. Brian at

Brian Mullan

to Gene Rick. like both just congrats echo I'd to and all you. Thank the

development on a three related what question said all? at next, in if dining, to Is piece smaller answer discuss puzzle. about specifically there segment talk see change your And you you segment years years? say, it's can more would for the I development. lot the have you Just might know to But of five over you Gene, just fine a how throughout if ago, room your that two country brands? the have across in could learning pandemic structural from any or that this changes

Gene Lee

return company. trade on can compete areas, Grille take Capital investment. brand And to that we to is, areas can confidence the V's] with size get same think the Two our that one, we maybe we give opportunity Yes. mirror past. additional get then which parts bit push Capital answer. Grille that a in to secondarily, had [Eddie great we are the us suburban some Number there we further what openings and recent a real than and get can that and in have that it We've in little thought

- We our well. opened very Eddie market are what as Eddie to the that They've V's all to COVID COVID. accepted with for V's thrilled well, during and gone refer very the we've our we

business the profitably. Our into and XXs and that And strong that is low from reason really high get model getting can't we stronger. no there's XXs why do the very

Now XX year. a a three again, that's to

we're wait spectacular, It's we're - You've go V's. that extremely who Nashville to but spectacular the visit for well. our venue and please thrilled. - sites, Eddie anybody just doing Nashville, those just got new travels for right to And a

a be deal with of casual just don't So Fine doing. will flexibility that brands. have we structure inflation to the continue some we still lot this a that have And - what in to margin our we're more in big Dining business we're that to confident contributor

Operator

We'll take question next Tarantino our from Baird. with David

David Tarantino

transition Hi, good the And career, on promotion. big view certainly, wondering on decision needs of morning, Rick, what Thanks. maybe the picture Rick, your everyone my to thoughts you new CEO, you strategic about and on change, to or some not wanted ask to just your just as CEO with as at priorities wow your but you what a retire. terrific long-term to much over role. And upcoming Darden. the of I a new I had Gene, strategy sort a question congrats priorities congrats for take

Rick Cardenas

invest We've stronger. succeed the to advantages to philosophy. right with advantages. our in We're to competitive going just our David, strategy first brands to as company I continue strategy. four I want Gene platform them that have seven those that operating is say years partnering and on We're we thanks for for I've the that And really question. been CEO, his think a back the driving strategy. to make got developing basic the our helps

strategic big We continue our I are in operations our partly competitive in a big to priorities, see writing to advantages. was continue improve don't part them. that of a our change because to and invest execution going

So it would year. I process, little just we five-year last But a did through did change if plan weird be those. which we see go we'll our as and look

us not right about talk for lot there's whole now. a to So

Operator

question next Strelzik comes of Andrew BMO from Capital. Our

Andrew Strelzik

commodity to Thanks wanted just I the clarify the questions. for taking on first commentary.

of year the why think you would inflation XQ the would as ease out you that the XQ part reason this from that year. peak said in I ago called in inflation comparison when

the have mentioned commodity you - also of some prices that well. underlying So eased but as

growth, Thank a not unit dynamic the that? just point, question And kind reflect visibility I where would doesn't that brand the at anything timing about great. mix really see the delays, easing? underlying framework of high-end much. to on XXXX. that of is you comment construction there then my outlook talked and does the this know cost some which can is increases big that the So to and included Or like the about you've that's be in very that and on visibility but in a about wanted you talked just you deal, of sound hitting

Raj Vennam

Raj. is this Andrew, Hi,

then some at the are X% right? based QX think way we're of the front, looking what on inflation. where you the the we yes, of look When our we be, commodity at the So was it commodities cadence of see best - to have we is around costs covered. about And did estimate going on

QX it's to by number because time elevated QX, expect north ago, a be little of And I size. years bit We the ago at wrapping XX%. a two that be or then get not think going to on we're we to year

So does to two-year and two-year basis, are well. you're - to I a on where looking we're hovering it is think way a we basis, it XX%, what it looking we expect at And the if look at land around XX% on be like? really QX to as that's

- growth we that and that why a QX. at XX% a feel there's be may and still still - could at we pretty a shot big few mean, a And guess unit have on this difference this between a to we of. confident I good targeting But is five to XX% the number the few I Obviously, still at There out. we're slips end. point, so we QX end. think that high getting that's but front, there, pushed feel four here to higher get think point, or good

Operator

to next with Garber Goldman go Sachs. Jared We'll

Jared Garber

on Thanks I careers. my the to watch cost. and on I Garden had top-line One one and like your questions. would Gene and both certainly, to two you Rick. Olive to also in progressing congratulations echo Exciting

the ending Garden You headwinds years what business? lapping seem Can some frame like they're in two what a ago. comp Olive trends of you the that that sense on noted saw point, this help near on about contracting beef XX% from move headwinds costs, maybe and you and you're about just of the the maybe looks But that low of have I were some over versus the wanted color strong. beef you're thinking I lapping maybe that the would Obviously, get risks you that your purchases to exactly to any how essentially pushed possible normal XX%, higher. pretty little just were the related that that prices XX%-plus. a the beef, then at bit to it on all deck, appreciate look very higher? very, And front. your at color you're I If like on commodity Raj,

Rick Cardenas

if comment. a guests providing negative never high that Jared, profitability doing never wasn't headwinds it the had. with years, it's the of don't as I'll We Rick. Garden, not want over talk Hi, Olive it's the comment today. the about much impact any impact to other but a possible any the was possible at know on We we're as that

on we our decided we to year drive possible need didn't into because restaurants. any this volume reduce to And dependency ever so the

why think got came we We said, just restaurant. we in the as the better lapping had As a even performance, I they serving it about earning possible, when better at was gas productivity. the

and stayed for business first day we'll course. we back strong, is To-Go if every But possible we never-any when never-any know don't productive never-ending Our which we'll bring a that business forward, as because bring abundance very a we look have with us. our

Gene Lee

think that be have the really Hi, the the about think But is, forward are teams point, feel - react, I good beef, we like there Jared, we've I agile adjust get into could our really if line but will premium and this purposeful. - we're to is I I pretty we'll we'll sight that's the up we're is still here, be, coverage Yes. going made. what being the And mean, sitting the where of Yes, over to what higher, are. and costs on last way think risk, - think, much. to two are but long on at where levels thinking we it we this demonstrated there's really, and commitments To the accordingly. extent we'll ends is short a change. given there's adjust, We opportunity be not more this we've be the inflation we'll too quarters shown

Operator

John from JPMorgan. comes question at next Our Ivankoe

John Ivankoe

rare did Yard Thank sense Since in difference that's you bit in acquisitions a change. obviously is I Gene, want brought of get of the AUVs. where with And House, number much. there a made little the a CEO maybe has Cheddar's, to could very acquisition, the this of a be business transformative

the in scale months appetite want of you need obviously, that probably organization's a could get at XX But not of I'm for ability, I that or just future the see the businesses your see is. of or else? there's context, are number even the kind potentially all, as market, probably and with this, in current there adding as about what so, terms much you sure on think if could have G&A, potentially something next your over about Darden especially sense In business if of and acquire I we the we acquisitions, desire, based out what organizational to in ask you terms which the

Rick Cardenas

John, with this is involved I've of XX acquisitions, years goals? And do our act part Rick. to XX evaluate to and all been And we business some we we how capital, of allocate rare. over these last we same saying, way do I'll team our our just of How alternatives. years start the but regularly management by long-term we'll the our have achieve bought is manage since continue M&A or Board that.

Gene Lee

not if won't our believe, end be just But achieve forward. I - I'll that to we of we'll probably opportunistic enhancements we believe the are at with something businesses. long-term believe move love be brands framework. of the is share that, it, day, continue driving I won't We right. the with say Yes. we'll John, portfolio we our but to today, market thrilled - I I of these timing as And And model we just jump current made to do business need do the that, we've in and that to portfolio our today

Operator

Raymond of from next Brian Vaccaro Our James. question comes

Brian Vaccaro

Thanks and good morning.

I be as at as move Just had QX fiscal two to And you that of are ones, for quick X% currently expect towards you working pricing, clarifications most you year? two might your asked. level? where today? on pricing But have do QX into quick been around menu are Or through we

Raj Vennam

we not in QX, are would be say, - the mid-threes, that - we level. little Brian, we're in The I to would around the we Hi. bit, level be the of X-ish. a low-fourths. quarter at for the north And exited QX and expect

Brian Vaccaro

was that, XXX headwind XXXX, just comps the that that versus Thanksgiving third Is to helpful. All right? and the to quarter. about wanted fiscal the And in reverse bps should confirm shift, right. That's then, I that

Raj Vennam

that so again, But is would yeah, QX, in it And a just careful that. help it how read into was quarter, QX. a Yes. you QX. But high-volume in should caution I be headwind

Operator

Long We'll take our next Sandler. of question from Piper Joshua

Joshua Long

we're especially that terms be made nature again, squeezing next if the provide in echoing you and me brands, the questions, on to might imagine dining I business some Thank curious high head chapters. you're of their comments choices. we the end? kind into return to high-end fatigue teams consumer and able of you a some COVID everyone But Curious some what social congratulations occasion. to following context as some high-end if your taking year-end, customer and are kind in for seeing more seeing around celebratory of overtime any the of on sort of about you the the your that's sort be on experiential Gene, normalized more brands. dining kind of of or return on of your thought what thoughts equilibrium or the the there would around high-end

Gene Lee

Yes.

the you've we strong. to tell private Fine than celebrations demand just larger would holiday expect throughout. I I the is you travel But our strong pre-COVID. for is I smaller of And as are level it's still some strong. sales, would groups. would strong. experiences, are overall, would it strong But at from our bookings experiencing very The really dining very business say results, - Dining that for I groups demand - holiday be we're the think experiencing we're say I fairly seen

And business very interesting so, I business. be a think going to that is

something of the part lot move as enjoyed we're people I easily of really that think a up going Dining, experiential not have that and we forward. As business to travel returns, Fine it's give

So, business. I love the

we've think do continue to I positioned think well. they'll really well, I those and

Operator

conference With to Kalicak, back additional for Mr. no comments. other questions the you or closing I'll any turn holding,

Kevin Kalicak

to with concludes call, Thank today's call. to the opens, you. holidays. like on today's and That quarter March happy the you in follow. call market that conference before I'd plan we Thursday, remind to release third you Thank results participating XX, for

Operator

That you for will conclude today's call. Thank participation. your

at disconnect this time. may You

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