Q1 2020 Earnings Call

For the first quarter restaurant marching dollars per store weeks declined 39.1% and restaurant margin is a percentage of total sales decreased 576 basis points to 12.1% as compared to the prior-year. I want to provide a little more color on restaurant. Margin that we typically wouldn't give margins is a percentage of sales were 17.8% off the first two periods of the quarter which was up approximately 65 basis points versus the same period last year while margins were negative 4%

Did not release we incurred approximately 10.7 million of labor cost in March related to rodents stimulus release pay an additional benefits to our front-line employees additionally unrelated to covid-19. We encourage 2.3 million of cost to adjust reserves on our group health insurance program for the first quarter. We ended the first quarter with 231 million of cash, which is up $123 million from the end of 2019 the primary drivers of the increase our $22 million in cash flow from operations and the drawdown of $190 million on a revolver offset by $45 off 25 million, if dividends and thirteen million or share repurchases as I move on to the update of our most recent Financial Trends, I will first Echo Ken's comments regarding the efforts of our people Texas, Texas Roadhouse is strength and success comes from our people and their passion in approach to running the business and this strength also applies to our financials in our history of phone number.

On Top Line Sales growth first and maintaining conservative conservative balance sheet second. This allows us to run our restaurants the right way and to withstand unexpected situations just like one we are now facing our financial resources have provided our operators the flexibility to appropriately staffed there restaurants in time to grow to go sales to their current levels with weekly sales at their current level of over $55,000 our restaurants on average our cash flow positive as it relates to food labor and the variable operating cost of running the business office Funko the sales in April were down 46.7% from the prior-year. We are encouraged by both the overall level of sales and the sequential sales growth that we are seeing off after today all but two of our domestic restaurants are open.

We have taken several steps to ensure that our business is and remains well-funded in addition to the draw down on our existing credit facility. We are in frequent discussions with our bank lenders regarding access to educational funds. We suspended dividend payments after March 27th and have also suspended all share repurchase activity our executive team leadership team and board of directors have for God's or all of their cash compensation for the remainder of the Year. Additionally Ken has made a personal donation of five million two aunties Outreach our Roadie assistance fund. Finally. We put a temporary hold on the opening of new restaurants and it stops almost all construction-related to new stores. We are finishing construction on nine locations where construction was nearly complete and a few of these restaurants open in the second quarter for the rest of the locations. We will be ready to restart construction and set opening dates as soon as conditions permit

Ark aspirin for the month of April was approximately Thirty million including approximately 14 million in capital expenditures. We finished April with approximately two hundred million of cash on hand. We have seen the past several weeks. We estimate that going forward under it to go operating model. Our cash burn would be approximately 5 million per week. This estimate assumes a minimum amount of capex spending along with the benefit of tax deferral under the care exact. We do not yet know how this burn rate will be impacted by the gradual reopening of our dining rooms, but based on the momentum that our operators created under the need to go model. I look forward to seeing what they can do with a combination of to go and dining room sales.

given the unprecedented

Nature of the impact that covid-19 on the overall economy and the lack of clarity on the time frame for the reopening of all of our dining rooms. We are unable at this time to provide Financial guidance for the remainder of 2012. It conditions permit and the outlook for the business becomes clearer over the next several months. We will provide updated guidance for the back half of 2020 on our second quarter earnings call that concludes our prepared remarks operator. Please open the line for questions.

Well, I guess we don't have any questions. So we're just going to hold a moment to wait for the line to be open for questions. And our first question comes from a Brian Bittner from Oppenheimer.

Guys, appreciate you letter can Tanya I wanted to as a question about just the cash flow in the margins of the stores. I appreciate the comments that gave on cash flow positivity of the store based on current movies, but can you give us maybe an idea of what you think your TV's are going to need to be in order to break even at the the margin level. When you move to this new limited capacity format. I know it's probably a hard question to answer cuz the mix of the business will change and the cost of the business will change but can you just need to take a stab at how you're thinking about that?

Sure, Brian, you're right. It is it's very difficult to do just given the Mix Change and things like that. And a lot of it has to be too with the you know, just how much labor will be involved. You know, we've taken on some additional labor costs under the to go model one of the things we've done and you know, we did when we started this in in mid-march was took all of folks who were on a sub minimum wage mm mm wage that we're working out in the in the in the parking lots and things like that. So some of that will change a little bit as we move back into the dining room. So some of that labor will change, you know, when we were looking at more from a break-even was saying, you know to cover kind of to cover all the costs of the business not really just at the restaurant margin level. So we kind of included GNA and some other things in that way and we feel like it's stores are running about that 70,000 a week from a sales perspective that we get really close to be to to that cash flow break-even Point Club.

From a g n a perspective and things like that. So covering all of those types of cost from where we stand now, of course, it's a little of reading the Tea Leaves we continue to see cost of sales rep will be a little bit higher we continue again to feel labor be a little bit higher we try to do a good job of going in for on our operating costs and and turning things off that we did in need will be unflipped will be flipping a switch is there to turn something back on once the dining rooms reopen so, you know, it's going to be tough to tell for a little bit but that that would be my best estimate right now great and just to clarify with you think breaking even at the corporate level requires 70 thousand dollars of weekly sales per unit. Just clear that isn't that when we are from that that's about where we are from a p&l even. Perspective and I will mention I believe when I was breaking out margins. I left out the word March. So March just to clarify March margins were down.

.4% negative

Okay. Thank you.

And our next question comes from a David Palmer with evercore. Hi, when just a question on when you open up the dining rooms, I understand you'll be doing that at a lower capacity. You know, what is the sort of incremental sales that you'll need to do to make that a margin neutral effort wage? I would imagine you'll be thinking about a certain minimum there and can you describe you know, what would have been sort of the on the on the Run adjustments that you've been making? Mm? Oh you serve customers and and to keep them safe and your employees safe as you go through this thanks others can't I guess on the on the safety thing as we have been doing for over a four or five weeks might be six now actually we had all the employees wearing gloves mask both inside working wage.

Six feet apart and outside delivering to go curbside and ready to grill to the gas that come into our parking lot. We've had double draft choice. We've had people in cellphone lots that will call and then they'll come get there to go food. And then when you transition to inside the restaurant office, you know, it depends like in Alaska. It's a 25% capacity where you're may be seating every third booth and other states. It could be where you're serving every other night. We have put some partitions up to raise the the lucky thing for us as we have booths. And so that we can put these plastic glass would partitions round the boosts to kind of raise the level of protection behind everybody. So that's kind of the benefit of having boost that we have in our restaurants and have had for years.

And then we have also we've only been open a few days but we have been amazed at the house strong in the to go and family packs have been as wage transition specifically in Alaska to Bringing people inside the restaurant. Yeah, David to add on to that. I'll tell you, you know, we don't have a lot of data right now having only say, you know to restaurants and Alaska open for four days with that that limited capacity and the dining room. But what we have seen is they haven't seen a big they haven't really seen a big decrease in to go sailing and and they're getting dine-in. I mean we're seeing the guests wanting that dining experience even with the restrictions in place. So that certainly has been encouraging to see now that's four days off nose and it's in Alaska, who knows what will continue to see but as Kent mentioned earlier we're going to have a good number of restaurants today that are already open for dinner and we're going to continue to add this week and over the course of the birth.

Weeks and so I feel like you know will begin to learn a lot more about how to what that model looks like.

And and what the trade-off is sending might be but right now it doesn't feel like it feels like all of us dine in sales will be incremental, um, you know incremental from that standpoint and just following up on that. I know it's a little specific but if if you you add 25% capacity or maybe a third of Your Capacity, do you do you think that might add twenty-five thirty percent of your sales in other words that the consumer adoption will match that capacity and you won't see significant cannibalization again, or the of that take out and I'll pass it on believe I need is the exact same thing. Yeah. Yeah. I mean that's again for days. So it's hard, you know, it's hard to read too much into four days, but it's certainly encouraging that we are seeing that right now. So I think every state will be different every restaurant will be different and what's been really cool through this whole whole process is how our operators have adapted and they found different ways of doing things and I think you know, we've got a really good job.

You see this with an extremely loyal guests who I think is looking forward to getting back in the restaurant, especially given the safety all of the safety measures can't mention that we put in place. So we're looking forward to the next few months to see what they bring. Thank you.

And our next question comes from a dentist with UBS.

Great. Thank you. Just wondering if you guys could highlight recent sales Trends a bit more certainly really strong momentum and and and from off-premise only but can you talk a bit more about kind of what's driving the the momentum not much of it is coming from some of the initiatives that that you briefly highlighted that are in place. How much is kind of from No Greater customer awareness of the Brand's off-premise availability and then if if if you can kind of just touch on a any impact or benefit maybe you've seen from the stimulus checks anything with respect to you know to the impact of of Easter on on recent weeks would be great. Thank you this page. I will normally Easter is slow. But obviously with people at home they've picked up our food we did see a little bump that you saw in the report on the week that we had the stimulus checks and like Tanya said as we we've only been opening two stores four days, it's really hard to determine you know what the future is dead.

So if we'd had this conversation a week from now, we would have given you a lot more information, but we didn't yeah, and when we when we look at kind of you know, some of the new things we've introduced is Kathy and family packs, um is those have been very popular they're ready to grill steaks definitely, you know served a great need during those those months of transition age and really though we're still seeing a lot of it coming from the mainly from our menu items, you know a good two-thirds of it. If not more than that. It's coming from the normal menu items and then when we look at the breakdown kind of between Colin and mobile ordering or online ordering we're seeing, you know online ordering pretty close to fifty percent of of you know, the sales that we're seeing right now. Yes, I think people have gotten really good at using our online ordering and then number two, I think as as people have seen how safe we are dead.

And you know interacting with people in the parking lot.

I think based on our social media comments. I would put that at number one to be honest with you.

Great. Thanks for the call address.

And our next question comes from Jeffrey bernstine from Barclays.

Great. Thanks. This is Pata Kon for Jeff. I appreciate the question. I hope everyone's healthy and safe.

Maybe Tanya. This one's for you. We appreciate obviously the difficulty and projecting out the trajectory. But if we kind of set back for a second off all else being equal could you maybe provide us a sensitivity? What one point of comp is to your earning or you know what the impact is on the margin? Maybe that would be would be helpful to help us. Just bring how to think about it going forward.

Well, you know, we we talked about that in the past when we kind of look at things and it and it really that comp depends on whether it's pricing versus traffic. Obviously you get a bit Bank bigger bang for your buck if it's more pricing check check related, then it is traffic. Um, so typically we've always kind of said if I'm remembering correctly that it's about a half a point of traffic you about 5 to 6% of our earnings per share growth and then if it were pricing you could obviously double that number but you know, I don't know how true that is today under this environment. I really couldn't tell you off but just going back to the comments. We've made previously that that's what we would say from from historic historic John's.

Got it. No, that's very helpful. And then maybe for ten to just maybe a little bit longer term. You know after the crisis is well behind us. Hopefully at some point soon. How do you think about the real estate opportunity going forward? Um, do you expect maybe some closures in some of the smaller weaker operators and maybe that'll give maybe one like yourself, uh, you know, a better opportunity to grab some pieces of real estate that maybe would have would not have come read prior to this crisis. Thanks, I'll be honest with you right now. I'm focusing on getting the next hundred stores open. I haven't really thought that far out to be honest with you.

Understood. Thank you so much.

And our next question coming from a Jeff farmer great. Thank you. So longer-term. How do you guys see your curbside? To-go business working with your on-premise. So, will you continue to be aggressive pursuing curbside when the majority of these restaurants over the next several months or open back up to in restaurant dining?

We're not necessarily being aggressive pursuing it. We're just being very good at delivering it and that's kind of what I think that's part of the reason that are to go sales keep increasing cuz we're able to basically get you in and out of the parking lot pretty quickly pretty safely and a short period of time and that's to me the success we've had with that. You know, I think go ahead. I'm just going to say I'm delivering it again from that perspective or did you and I agree with that but do you think that the curb side business to go actually broadens the the meal occasions that the customers will look to Texas Roadhouse for or broaden the customer base that Texas Roadhouse had before it seems like there's a couple of ways you guys could could sort of extend the the oh, yeah. Yeah. We're we're going to keep a truck.

We're not pulling back. We're going to we're going to serve you outside.

Parking lot. We're going to serve you inside the building. However, you want it. We're going to make sure we're there for delivering that food to you. And I think we're going to learn a lot from our guests, you know, and what they're looking for, and that's going to drive to cancel. It's going to drive a lot of what we do. It's going to be different in every restaurant potentially. Um, and we're just we're going to be feeling it out and seeing how things play out with your point. I I think there is still going to be a big demand for the to go as people maybe are slower to transition back in June and some people just like the convenience of eating at home, I guess so, so yeah, we're going to be full-blown on both both sides of the equation. Thank you.

And our next question comes from Chris from stifel.

Hey, thanks. Good afternoon, guys can't I was wondering if there's been any issues bringing employees back to work? Cuz the stores reopen are you needing to pay higher wages to get them to come back? Not really and for those maybe or not, you know as quick to come back there's a lot of other folks that are not you know that are not working at other places that are wanting to work for us. So so far so good. Yeah, I mean Chris this I'll tell you I hear from The Operators, you know where they're staying in touch with those employees that aren't working right now and and they we have great relationships which you know, the the way we treat our employees I think really works works right now for us to and and we've got employees we're staying in touch with them and their their job to come back to work. So it was it's great to hear that from from some of our operators.

That's good. And then have there been any opportunities to get any lease relief during this period when dining capacity is either closed or at least limited. Yeah. It's interesting. We had some landlords reach out to us without us, you know, kind of even requesting that early on offering that and we've and then we've reached out recently just some landlords just to from a different perspective to kind of see you know, what what our options might be from that um, you know, that was more looking at it from the perspective of not sure when the dining rooms we would be reopening and things like that as we started to see some of our you know, not as not as focused on that right now, I'm pulling the trigger on on many of those. So it's anything we've done is going to be pretty minimal and our landlords have been great working with us and and taking our money and you know been great Partners, but there was this one guy we won't talk about. I'm sorry. Thanks guys. I appreciate it.

Thank you said and our next question comes from John Tower from Wells Fargo.

Hello, mr. Towers.

I'm sorry, but that that's mute. I apologize. So just a quick clarification on 1st on March you had mentioned down 0.4% That was at the store level not the same level. Correct? Number one and number two just can't I appreciate you giving us the color on the suppliers and and suggesting that they're ensuring that every store is not seeing the adequate levels of product. But what do you seeing with respect to protein inflation given that a lot of the spot market prices have jumped pretty dramatically in recent weeks.

Well, we we have long-term contracts and a lot of stuff. We are floating and let some Panic Tanya probably can give you a little more specifics than than what I might have. Yeah, it's only then, you know, you can watch the markets. They've been a little more volatile as of late, obviously, um in some situations, you know, we did have contracts in place where we've been there's been times where we've been over dead spot from a contract perspective and sometimes we're under I think right now we're under and um, so, you know, it's it's just a constantly moving Target. So from that perspective, but our vendors have been affected as far as working with us on Supply making sure we can get to the stores what they need that kind of thing. So, I think that's been really important just to clarify your restaurant margin question. It was March restaurant. Margin as a percentage of sales were 4% negative. It also helps when you pay your vendors rather quickly versus those that maybe do not

Thanks.

And our next question comes from David Tarantino From Baird. Good afternoon. Hope you are doing well. I have a question. I can I got the bigger picture question about the long-term operating model of Texas Roadhouse. And I guess on the Hallmark of the company has been to focus on great hospitality and Inn Restaurant experiences and this whole circumstance over the last I guess six weeks is turn that on its head and maybe in light went off on the opportunity for to go and and and off-premise business. So just wondering what your thought process is on on how the model could change looking several delivery and and other modes or channels of business might become more prominent. Just wondering your thoughts. Yep.

I would tell you that you know, we're we're rethinking how we can better execute from a building standpoint. And from how we basically deliver a to-go and curbside as an example. We didn't really talk a lot about curbside but I will tell you now six weeks in we're delivering a curbside. It's amazing how quickly you can pivot. I think the outside curbside model is here to stay on top of us being, you know doing some of those things. I mentioned earlier inside the building. So I think as we see the the food moving outside of the building increasing and and we get back to a more near normal inside. We're pretty excited about that possibility, but we are not at this point looking to Hancock.

food over to somebody else

third-party delivery

Great, and then another question what would you need to see the start unit growth? I know you're finishing some projects now, but when when would the right time be to to ramp it back up?

Basically, you know when we look at a positive cash, you know coming out of the company and then what do you do with those funds? Obviously, we would love to keep growing but we got to make sure we're taking care of business paying are people paying our suppliers and doing all those things and keeping a robust balance sheet first month. We turn that back on and I thank you David. We want to see a little more clarity from the standpoint of the outbreak and and and a little more understanding of the duration of you know, can we met it's exciting to see dining rooms reopen do they stay open? I'm getting a little more clarity around that our development pipeline. We we had a great we have a great pipeline in place ready. So, you know, I think I think if we can see all those things can't talk about and and see some stability from an outbreak perspective then then I think that's certainly going to help us make that call.

Great. Thank you very much.

And our next question comes from a Andrew from BMO Capital markets.

Great. Thank you. Good afternoon. Two questions for me. The first one. I was hoping you could comment on Bubba's cops and and margin Trends and if you've seen those diverge from the Texas Roadhouse Grand at all in April and March, and then in terms of you know, this capacity constrained environment. I'm curious how you're thinking about balancing the communication to customers with, you know, transitioning back to dine in while still not losing all that to go business. Is that a concern at all? Thank you.

Sure. Thanks Andrew. I'll take the first part of that question. You know, you definitely see the value of the length of time Texas Roadhouse has been open and how we have built such a great, you know, a long story, you know, just loyal guests and that really helped us a lot from a Roadhouse perspective and helps us be able to Pivot quickly and people were looking for that experience. I think on the both sides of think Bubba side of things giving the newness of that restaurant. Obviously, it's going to depend on on store 228 restaurants open still so dead on what store you're looking at but stores that are newer they're going to struggle a little bit more. I think that that probably is pretty much what what we would expect to see but I can tell you those that team is working really hard their life a lot of different options with with their burgers and pizza opportunities, you know on drinks and things like that in certain States, so they've really been trying to take advantage of those opportunities.

Please and I think it's just going to take that.

A little more time to build that business that side of the business forces Roadhouse. It was a much easier transition with the with the just the loyal guests that we have with that said our busiest Bubba's is our newest thousand or so. There you go. As far as your other question, I've got quite a few which I call my boss my people that think outside the box. I actually call them something else but I won't say it that are going to be trying some various things in the next couple of weeks to get to expand our possibilities for sales. So stay tuned.

Great. Thank you very much. And I hope you will say well.

Thanks. Later.

And we have our next question from Peter from btig.

Great. Thanks for taking the question. I wanted to ask about your thought process on the date parts of Texas Roadhouse. Go ahead and forward. I know a lot of restaurants been opening a little earlier and offering some lunch, you know Curbside To Go, are you thinking about lunch differently now as you go forward or as we reopen the dining rooms, are we going to strictly going back to you know, dinner only type concept

No, we're going to stay primarily. Dinner. Only I will tell you that the the the ones that have offered some lunches the haven't been that exciting. To be honest with you. You're not seeing the office buildings for the shopping centers or malls full it normally drive that type of business. So no we will stay true to Who We Are

on the hour and operation will get a little crazy with some of the other things as we've chatted about before.

So just to be clear to see you'll go back to the normal operating hours, but you'll push a little bit harder on maybe curbside or that to go business.

That's correct.

All right. Thank you.

Thank you.

And our next question comes from a Jared Garber from Goldman Sachs.

Hi, this is Audra. For Katie today. Thanks for taking my question. Most most of my questions have I've actually been answered but I wanted to just ask a quick one on the weekly comp Trend. So it looks like the last week in April didn't really see much of an acceleration. In fact a decelerated a bit. Just wanted to know if there's anything we should think about their um, we've seen some of the industry level trends that show off some relatively steady acceleration over those weeks. So just wanted to know if there's anything particular that we should think about in the last couple of weeks of April.

This can't we were basically we were on the upswing and then the only week we had slightly softer. Was that week after the checks came out. If you would like to know about any sales since then you have to wait 3 months. Sorry, all good. Thank you, and then just one quick question as it relates to wage, maybe a couple of the topics we've discussed, but, you know given the menu difference between Bubbles and Roadhouse is third-party delivery something you guys would think about doing for Bubba's as you maybe look to Iraq and that business going forward. Thanks.

Not at this point.

We're just trying to get them reopened. And so we're not really thinking about it at this point.

Thanks, but you never know.

And our next question comes from a Brian from Raymond James.

Thanks a good evening. You mentioned looking at ways to maximize store margins. Could you give some more color on where you see opportunity there? And did you start to see some improvement on store margins in April? I can get a little color on how that compared to Marge. So some of the things Brian were just pretty simple things. It's like, okay, we're not using the TV's and the and the inside the dining room light. Turn off, you know that service. Let's think about the linen service just really going through the list of costs and saying, you know, what can we take? What can we kind of hit pause on and and we worked with a lot of vendors has to be able to do that. They were very open to that and and understanding of that so that that was great to do and so will be flipping some of those switches back on obviously you want to labor is a big piece of it off. So, you know that one, you know, we're making a bit of an investment on and and we're okay with that making a bit of an investment on labor because we do want to keep people working and we want you know, we want dead.

Set ourselves up very well as these dining rooms reopen to be staffed appropriately and in doing the right things for our employees. So and you know, we've made some relief package and cover it off on, you know, the health insurance benefits and some cases all those things we mentioned before um, so cost of sales, you know, really not as much opportunity there Perhaps Perhaps, you know, that kind of is what it is based on what you're selling. I guess, you know, we did see costs increase a bit from an operating perspective with to go to go supplies. Obviously as you can imagine when you're doing all together got a lot of supplies running through there. So that is kind of works against you from a restaurant margin perspective as we have the dining rooms, um, you know reopening and we're increasing sales from that perspective that'll help offset some of that impact from those to go sales outside of that. I can't really think of anything else. I would mention, you know, we continue to see credit card fees go up because we are dead.

More use of credit cards for payments versus cash that's not too surprising in this environment. Um, and um, you know utility cost a that's another big piece of our operating costs, you know, those came down a little bit without the use of the dining rooms. Not too much though. So pretty, you know, not very impactful at all. Those are pretty probably those are probably the ones I would I would call out more than others.

Okay, and then sorry if I missed it, but on the weekly burn rate, what's the weekly GNA cost embedded in that 5 million dollar number you provided?

The weekly burn from a g and a perspective probably runs right around I would say around 3 for three million dollars. It's probably about where we are. You've got Peril in there as we mentioned. We haven't had any layoffs at the support center. So I think you know, it's it runs around two three million dollars with each other costs in their travels come down. We may see that start to ramp up a bit. I think it'll still take some time for that to to increase payroll really as the bigger piece of that and that does include a r s u which is a non-cash cost. So that number is in there. Also just from a total g n a cost perspective.

Okay.

Okay, great. Thank you.

And our next question comes from the line of Andy bearish from Jefferies.

Questions been asked and answered. Appreciate it. Keep up the good work guys. Stay safe. Thank Santa.

And our next question comes from Mister Bob Darrington from Tesla advisors.

Yeah, that's fine close enough can't I'm curious the the value you all offer with your family packs is you know, I guess from a consumer standpoint terrific. I'm just you know, as well as they're ready to grill steaks and meals, you know, how do the margin you know contribution compared to your regular menu are those things that you consider, you know to keep on the menu going forward are those really, you know higher cost than you may ultimately mean some of those out

Yeah, we we debated that a bit and as we saw, you know people in America, you know not working and still obviously got six eight. We we made the decision to offer some really crazy low prices to take care of, you know, America call it and yeah, those prices will grab, you know, go back to levels that will provide a little more, you know profitability, but we kind of said hey, well people are not working we're going to take care of we're going to take care of America and not get hung up on the margins and as people start to go back to work and we're starting to feed people inside. You'll see a more normal eyes pricing structure, but that's that's how we felt.

From a consumer standpoint believe me. I really appreciate the value of those. You know, when we think about Baba's Baba's has you know as a bar a higher alcohol component social distancing a bigger issue for the concept relative to Texas Roadhouse. Not not really if you look at the dining room side. We also are mostly dog all boosts like Texas Roadhouse where we can put up the partitions, but you're correct on the on the bar side, you know, when you think a bar stools then obviously we would have as many bar stools. But the unique thing about Bob has is two of the four sides of the bar have garage doors. And as we enter the summer months we can live off those garage doors get air flow through there. And so it'll almost be like you're eating outside and we can all always at night in certain locations, you know, put the heat. Yep.

On that we have inside so it it'll actually provide quite a bit more fresh air for those on the bar side that will primarily be still seated in boosts. And and then we'll have cuz we have boots on two sides of the four sides of the bar. So we would say if you eliminate a few tables to create some more spacing plus the month plus the garage doors up.

then you actually

Have a more of an outdoor space.

Great and last question if I met on on alcohol per se, you know, I know there's another large casual-dining chain that you know, does Margaritas to go at cetera. Is that something that you currently do, you know adult beverages to go at Texas Roadhouse. And is that a sorry about that? Yeah, go ahead finish well, and I was just curious. Is that something that you do at Bubba's would you consider doing if you don't?

No, we have in in the states that allow it we have been doing that both at Bubba's and Texas Roadhouse during this time.

Terrific. Thanks again.

And our next question comes from Mister Nick from wedbush securities.

Thank you. I'm just wondering how much visibility you you do have internally, you know what regards to the Cadence of the openings, you know, is there a an actual you know set time line in terms of how many stores to be open by the end of May middle of June Etc.

Well, we've got the directors from the states and then we typically lay back a week before we open just to kind of, you know, see how things are going with in the local communities figure ways to opening a a safer way. And so it really depends on what the states are allowing or not allowing and then we as an abundance of caution are always a few days to a week behind everybody else.

I think I'm sorry. Go ahead. Oh, no. I was just going to give a little more color on that. I think, you know based on what I'm seeing through maybe the the last week of May and this is all in company franchise everyone. It would be slightly over two hundred restaurants by that time frame. So that would include I think it's around 2:10 that would include franchising company wage across the board over the next couple of weeks.

That's helpful. And then you kind of talked about you know, the the partitions et cetera. I mean, is that a is that really a way to get around some of the restrictions found, you know capacity constraints or is that just something that you're doing to to, you know go over and above we are not going to violate any of that capacity construction. It's something we're doing above and beyond. Thank you.

And ladies and gentlemen, as a reminder to ask a question, please. Press star and the number one on your telephone keypad. Our next question comes from a took us a call with stifel.

Thanks, honey. I just had a follow-up regarding the margin, from March but the March. Is that included ten point seven million in labor cost during that period the negative thoughts. Okay. Yeah, it's so that 10.7 is in there along with that 2.1 2.3% Reserve adjustment that we had in labor on home insurance.

So the ten point seven million, I know that that was related to pay for stores that have been closed. Is there a similar amount that we should expect in the month of April?

April we did have a we called it in April of payment to Roadies that were working in the restaurant. It's a much smaller number. It came in around 3 3 and 1/2 million. So among a smaller, um dollar amount.

Okay. Okay. And then did you see what the capex was for what you expect the capex to be this year?

No, we haven't given any capex on a full year basis just because we have so many unknowns out there right now. I think you know in our weekly Cash number that we're forecasting that 5 million dollars off the fixed asset or the capital expenditure number part of that would run right about 1 and 1/2 million is what we're expecting and for the next couple of months and that's just the runoff for you know, those stories. I mentioned that we were still getting construction on as well as just, you know, the sites that we have on hold, you know, we have some costs associated with just maintaining those and and then just normal capex maintenance project that we were still finishing things like that. So that's about what it runs in that number.

Great. Thanks. Sure.

And we have no further questions at this time.

All right, well everybody for joining the call. We really appreciate you being on and we appreciate hearing your voices. I hope everyone is doing well and look forward to talking to you soon. Thanks again.

Ladies and gentlemen, this concludes today's conference called. Thank you for participating you may now disconnect.