Q1 2021 Chuy's Holdings Inc Earnings Call
[music].
Kind of a good day, everyone and welcome to the Chewy Holdings incorporated first quarter of 2021 of the earnings Conference call. Today's call is being recorded at this time all participants have been placed in the listen only mode and we will take your questions. Following the presentation on today's call, we have Steve Hislop, President and Chief.
<unk> of officer, and John Howie, Vice President and Chief Financial Officer of Chewy Holdings incorporated at this time I'd like to turn the conference over to Mister Holly. Please go ahead Sir.
Thank you operator, and good afternoon Bye now everyone should have access to our first quarter of 2021 earnings release, if not it can be found on our website at www Dot com and the investors session. Before we begin of review of formal remarks, I need to remind everyone that part of our discussion today will include forward looking statements the.
Forward looking statements are of guarantee are not of guarantee of future performance and therefore, you should not put undue reliance on them. These statements are off the subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect we refer all of you to a recent SEC filings for of more detailed discussion of the.
That could impact our future operating result, and financial condition with that all of the way I would like to turn the call over to Steve.
Thank you John Good afternoon, everybody and thank you for joining us on our first quarter earnings call today hope everyone of staying safe and healthy.
2021 is off to a solid start reflecting continued momentum and our business, while the experienced severe winter weather affecting the central and southern U S that of of negative impact on our February peered underlying sales trends were positive throughout the quarter, including manche comparable sales of under 5% of 2019.
Levels also notable during the for quarter was our continued focus on cost management and operating efficiencies that resulted in a 60 plus percent improvement in the restaurant Michael profitability as a restaurant level of operating margin almost doubled compared to the year ago period in fact, our quarters of the results of included record restaurant level.
Operating profit Hawthorne of dollar and margin basis low.
Being ahead I am pleased to report that are positive trajectory has continued thus far into the second quarter with of comparable sales and our April period down just 0.3% from 2019 levels and average weekly volumes are subconsciously up from March.
Our results are direct testament to the hard work and resilience of our team members and I'm hopeful that this momentum will set us up well for the remainder of the year keep in mind that most of our of restaurant remains subject to social distancing and capacity of restrictions. Some of them are the result of our own caution and we are staying prepared in the environment.
That has proven to be on a unpredictable. However, we are all eager to return to of more normal operating environment and while the COVID-19 situation is improving our team members are maintaining the focus on three key pillows that are of continue to resonate with our guest safety convenience and value. Let me briefly update you on these.
During the quarter, we continued testing or pay at the table solutions as well as other payment methods, including QR COVID-19 payment and pay by Tech solutions. This the feedback thus far has been very positive again safety will continue to be the forefront of our operations and we believe this investment of not only help us improve and rest of.
Peace of mind as more states are loosening up the dining room of capacity restrictions, but it will also create efficiencies of that will help our business longer term.
Are off premise business continues to give I guess additional convenience to enjoy our food and during the first quarter and into the second quarter. The date, we were able to maintain are off premise mix at approximately 30 per cent of our revenues. We move this elevated level of off premise mix of a testament to the strong demand for the unique appeal of our high call.
All of the made from scratch food and drink as I mentioned in on the last call due to the enhanced level of convenience and how well our food travels. We believe we can maintain of mix in the mid twenties, even as our dining capacities return to stick historical levels.
In terms of value, while we continue to offer a streamlined menu, including convenient family meal and beverage kiss as diamond restrictions start loosening up we will continue adding back items to our menu.
Now let me quickly update you on our development plan with a target to open between four to six new restaurants in 2021 during the first quarter. We opened one new restaurant Pembroke Pines, Florida. This was followed by another new restaurant in Indianapolis, Indiana subsequent to the end of the first quarter and I'm pleased to say that these two openings are performing very well.
Thus far looking.
Looking ahead, we have one more of restaurant currently slated in may and the rest of the restaurants will be in the back half of the year in terms of our long term development plan. We are currently looking at the use of of smaller prototype based on the operational changes that we've made during COVID-19. We believe this new prototype will provide the same unique dining experience while still.
Allowing us to better serve are off premise guest we believe we will be able to start utilizing this prototype sometime in 2022 with that I will now turn the call over to our CFO of John Howie to discuss the fourth quarter results in greater detail.
Revenues for the first quarter ended March 28th 2021 decreased 287, 7 million compared to $94 $5 million in the same quarter last year. This is primarily driven by traffic decline due to open the 19, including the loss of 108 operating weeks due to various closures.
Of restaurants during the latter for March of 2020, partially offset by incremental revenue from an additional 12 operating weeks provided by new restaurant opened during and subsequent to the first quarter of 2020 in total we had approximately.
A thousand the 202 operating weeks during the first quarter of 2021 comparable restaurants sales decreased three 2% during the first quarter and included an 8% decrease in average we customers partially offset by for 8% increase in average Chet as you know during March.
We began to lap the impact of COVID-19 on last year sales, though to provide a clearer picture of our current sales trends, we have begun providing comparable sales as compared to 2019. So the first quarter comparable restaurants sales declined 11.8% vs 2019 with underlying.
All of improving throughout the quarter after excluding the impact of winter weather in February Steve noted, we've continued to see improvement during the second quarter with April comparable sales almost flat compared to 2019. Please refer to today's earnings release for our first quarter sales cajuns by period are off.
Promise or excuse me are off premise sales remains of solid it during the first quarter at approximately 32% of total revenue compared to approximately 18% in the same period last year and 33% in queue for of last year, turning to expenses cost of cells as a percentage of revenue decreased 200.
70 basis points to 23, 3%, primarily as a result of switching to a limited menu and eliminating are complimentary buffet style chips and salsa Nacho car as well as an overall commodity deflation of approximately three 3% based on current trends. We are currently <unk>.
Correcting commodity inflation rate of about 2% to 4% for the remainder of fiscal 2021 due to increase the cost pressures labor costs as a percentage of revenue decreased approximately 720 basis points to 28, 3%, primarily due to better productivity an hourly labor.
And reduced store management personnel at the company has transitioned to an off premise heavy operating model model with reduced dining.
<unk>, coupled with Carly right deflation of approximately 2.9% during the quarter.
Looking ahead looking ahead, we are keenly focused on retaining and re re re crudity, our existing employees, who have been instrumental in helping us navigate the pandemic. So successfully as a result, we are implementing a manager retention program, which will include an investment in our managers over the next two quarters of approximately one.
$6 million, we expect this program will help US day ahead of the curve of what has been a challenging issue for the industry operating costs of the percentage of revenue remained flat at $15 for percent compared to the last year's quarter increases and delivery charges antique go supplies as a result of the growth and the off premise of business.
Was offset by lower credit card fees as well as utility and other restaurant operating costs driven by reduced operating capacity <unk>.
Marketing expense as a percentage of revenue remained relatively flat at 1.1% as compared to the same period in 2020 as we resume our digital marketing efforts, we expect our marketing spend to be approximately 1.2% of revenue for the remainder of the year occupancy costs as a percentage of of revenue decreased 20 basis points.
Eight 3%, primarily as a result of closures of nine restaurants. During the latter part of March of 2020, partially offset by itself deleverage.
General of administrative expenses increased to six $8 million in the first quarter from five $7 million of the same period last year, primarily driven by performance based bonuses and equity compensation, partially offset by reduced travel professional and legal fees and other expenses as a result of cost saving measures in response to cover the ninth.
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The company reported and income taxes.
$7 million in the first quarter of 2021 compared to a benefit of five $5 million. During the same period in fiscal 2020. The decrease in income tax benefit was driven by an increase in estimated annual net income offset by a $1.3 million or seven cents per diluted share discreet.
Tax benefit recorded during the first quarter of related to the stock based compensation and summary, net income for the first quarter of 2021 was six $7 million or 33 per diluted share compared to a net loss of $12 $4 million or.
75 cents per diluted share in the same period of last year. During the first quarter of 2021, we occurred 2.3 million an impairment of of the restaurant and the other costs.
During the first quarter of 2020, we recorded impairments enclosed closure costs due to COVID-19 of $18 $8 million and a $5 million in the for tax adjustment in conjunction with the care of that.
Taking that into account adjusted net income for the first quarter of 2020 $185 million or 42 cents per diluted share compared to $1.4 million or nine cents per diluted share in the same period last year.
Moving to our liquidity and balance sheet as of the end of the quarter, we have 97.
$3 million in cash and cash equivalents, no debt and $25 million of availability from a revolving credit facility.
Before I turn turn it back to Steve I'd like to quickly discuss our limited outlook for 2021, while I am not in the position to provide you with our usual financial guidance I would like to give you some directional metrics.
I would hope would be helpful.
Steve mentioned earlier, we will be opening for to six new restaurants in 2021, we expect net capital expenditures net of 10 improvements.
Allowances of $15 million to $25 million, we expect the restaurant Preopening expenses of.
$2 million to $3 million in 2021, and lastly are effective quarterly tax rate is expected to be approximately 16% to 18% for the remainder of the fiscal 2021 year with that now turn the call back to Steve. Thanks.
Thanks, John with vaccination is becoming more widely available sales momentum training positively coming out of the first quarter and improving operational efficiencies, we remain cautiously optimistic about the health of our business.
Moreover, with a strong balance sheet and ample liquidity. We believe we have the means remained nimble and this post COVID-19 world. Most importantly, we will continue to ensure that our guest can enjoy the high quality may from scratch food and drink safely wherever and wherever they choose what that we're happy to any client and the answer any questions.
Thank you.
And at the same ladies and gentlemen, if you'd like to ask the question. Please press star followed by the number one on your telephone keypad, if you're calling from a speaker phone. Please make sure you mean function is off to ensure your signal can reach our equipment again stairway to ask the question will go first to James rather hurt from Stephens, Inc. Your line is open.
Alright, good afternoon, Steven John Hope, you're both doing well congrats on the improving trends here.
Hi, Thank you for him on that yeah. It's good to see I want to start off of about April result, I think the the positive read on that numbers, you've effectively returned to pre pandemic sales levels of them share it feels really good.
The other hand, the step up in the cough and the weekly sales levels between March and April wasn't quite the same magnitude compared to some of your peers and the cash dining landscapes. So.
I was just curious if you could give any color on that and whether staffing challenges weight on your ability to meet the demand or maybe it was there anything else that play there.
Yes, the key for US is if you come into our restaurants, you noticed that most of our restaurants or all tables that are free standing tables, we don't have many booths and so we're still in all of our markets the along with the six foot distinction where.
If you have just booths she can have the divide as in between them and so it's mostly on the capacity within the four walls is what it really is.
Okay is there a way that you could share of what your average capacity is today.
Well, we'll run it James is John we're running about.
65% to 70% capacity right now kind of overall throughout the country I would say in the rest of of what you're seeing here as we make up the 2019 level of those really on our to go making up the difference.
Got it okay that makes sense.
Shifting over to the labor side I was curious if you could share how many.
Total hourly employees you have in your restaurant today, and how many you would need to hire to get back.
Does that kind of of service the full pre pandemic dining in traffic load.
Just the first.
That's going to be an initiative yeah.
Yes of course, but at the end of the day until six foot distancing from the CVC perspective is eliminated which isn't in any of our markets I'd.
I'd say for that type of of capacity levels would probably in that 85% to 90%.
Employee right as far as as far as hired up as we get into no no of six foot distancing, we would have to get into a little hiring but again, that's normal as we move forward through anything.
Yeah, Okay, and then just squeezed one more and if I couldn't I will turn it back to the Q I noticed the the comment on the manager of retention program I didn't quite understand entirely whether that was the one time bonus are kind of of retention tool or ongoing salary and wage increase the any color John that you can provide the Greg.
Yes, I mean right now we're looking at the kind of.
Of a one time bonus but paid out over a couple of quarters.
Okay, Alright, and is there anyone with the staff.
Yeah. So we look at that we see a lot of folks out there relative and the spending a lot of money on new recruits a new managers and of recruiting basis, where we decided to do and we've always done. This as we constantly look at the recruiting and retaining our employees because of the of obviously the great job to have done over the last year and a half dealing with this pandemic.
Very helpful. Thank you.
Thank you.
And next look out for Ya and Nordstrom Bird your line is open.
I was wondering if you could provide a bit of context margin could look like and the second corner of current sales trends continue maybe walking through some of the person paid some of the margin line I believe queue to the typically the highest margin quarter, just given seasonality. When you are coming out very impressive margin performance again in Q1.
Any sort of the framework or contacts you could provide there would be helpful.
Yeah true.
I would hate to say that it's going to be comparable to what we just did I mean that was a monster quarter that we just put up.
However, we are still until we get full capacity we're still.
Let's not say target low, but we are in turn it can load in that we're operating a restaurant in that with the reduced menu.
The reduced capacities and so on and so forth. So I think when you're looking at the margins for Q2.
You could still see Ah margins in the in the low twenties.
Probably not as high as what we had this quarter.
Okay. That's helpful and I wanted to squeeze one in on the real estate market or just in terms of unit development I know the of.
Plans to accelerate new openings in the next couple of years I was wondering if you've just seen any upward pressure as it relates to development costs of our construction delays.
Due to labor shortages out there and if that's impacting the wrong key on new units anything that's developing in the kind of of the unit development outlook is 90 per.
Some issues I just got out of that.
Get some color on thanks, Yeah sure as of stated before I think we've said that we're looking at four to six this share as we mentioned and then six to eight.
In 2021 and back to that low double digit 10 stores starting in 20.
Three yes, we've definitely seen.
And increase whether it be still of lumber.
Hiring self water and that's probably in the tune of 20% I'd say as it were currently sitting here looking at it obviously, we're looking at value engineering any one of our visit of buildings and you do see us this year, specifically being built in 2022.
Of Mahler building in that 5500 square foot range that we'll have roughly a little bit of.
A more convenient to go area and maybe a little bit of of a patio, but it is something that we're dealing with the and it doesn't seem to affect it won't affect our.
Our plans for our growth rates.
Okay. That's helpful I'll send it back to the queue.
Thank you.
And the next I'll go to Andrew Charles from BMO. Your line is open.
Good afternoon.
I know that you're seeing kind of of the limitations from from the social distancing across the entire system, but I was curious kind of of under the Hood, if you're seeing the same type of volume recovery in your more penetrated legacy markets. As you are on some of your newer markets are you seeing kind of the gap emerge there any any color would be helpful.
It's been pretty consistent throughout the last three periods as far as the improvement in all of the markets of been pretty sequential so now it's not anything you know.
One of our markets that we have some of the biggest jump is over in the North Carolina areas, but again overall, it's pretty sequential throughout all of the markets.
Okay and then.
<unk> reiterated kind of the mood twenties off premise mix in the full dining recovery for.
And it's pretty impressive of what you're seeing the next day as consistent as you are I'm. Just curious are you <unk>.
Learning anything incrementally as the diners recovering the retaining all the bar off from business are you learning anything incrementally about that customer that usage occasion anything that kind of of your informs your thinking of commodity from when we last spoke.
Well I would say what we are learning is when the dining room comes back even though the mix is going down as a percentage of the dollar amount of stain.
Crazily at the same consistent.
So what I think we've learned is that we've got a lot of new customers that are treating us in of to go fashion and continue to do that while we have some of our good customers and long term customers coming back in the dining room. So.
So I think it really gives us a little more confidence in that percentage that we're talking about.
Even before the catering it comes back that we can maintain that low 20th the mid twenties and the to go yes.
Okay, and if I could just squeeze one more quick when I'm I'm just kind of curious more broadly how are you thinking about the trajectory of margins here.
Obviously, the sales should continue to recover for you have commodities that are shifting maybe too so it sounds like to inflation labor, which may not be quite as of.
Favorable and then eventually kind of some of the items coming back to the menu et cetera. I mean does this kind of a steady progression back towards kind of what you've been targeting longer term from of restaurant global margin perspective are there other puts and takes.
Consider.
No I think that's I think pretty well just just hit hit it on the head I mean, as we bring back items, obviously will have the.
Bring back the little more costs in the back of the house cost of sales.
It's starting to rise a little bit.
As we were talking about especially here in the in the second quarter and so that's why we are expecting 2% to 4% kind of in the.
The last few quarter of the last three quarters of the year.
And also we're rolling over we're starting the rollover.
The menu changed from last year, So we're not going to see so it's going to be the true inflation, we're not going to see the efficiencies. We have on the menu. Obviously, we're going to start rolling over there and we're going to start rolling over.
Against all of this <unk>.
Change that we made in the to go on the labor hourly labor. So we've we've been enjoyed.
Deflation in our hourly labor over the last couple of quarters, we don't expect that going for because we're going to be rolling over especially in the second quarter.
Total to go labor for one and a half months before we started open on the dining room. So we'll start seeing some inflation in those numbers and so that's kind of what we're looking to go into those the long term savings of what we've always said 300 350 basis points off of 2019 numbers yet.
Great. That's super helpful. Thank you very much.
Thank you Andrew.
The next Bill go to Chris So call from Stifel. Your line is open.
Hey, good afternoon guys.
Hey, Chris.
I just had a few more questions on the margin outlook I'm curious do you think when traffic the traffic needs to get back to the 2019 levels before you start to see labor costs as a percentage of sales to start to normalize.
Yeah.
Yeah, I mean I think so.
Stripping out of inflation, because I really think that we're going to start seeing some inflation here, especially in the second quarter like I said, we've enjoyed the deflation the year over year given.
Of the strengthen our to go.
That's going to start rolling over here in the second third fourth quarter as we rolled over those numbers. So we're going to start seeing some of inflation in those numbers.
Well that was my next question is what are you expect normalised labor costs to look like coming in 2019, I think it was around 35 per cent of sales is the 300 basis points of how much of the 300 basis points of margin improvement is coming from that line.
We said is 250 to 300, so I mean, we would expect.
Labour percentage in that low 30% like 32, 33% of similar to what we were I think we can get back to those levels that we were when we first of all public that would be quite honest and maintain those.
Going forward, but that may not start until you guys start to see traffic levels get closer to where they were in 2019.
Well until we get our dining rooms for because once we get those the dining rooms full and bring back what we would consider our new full menu, that's when you're going to start seeing those those percentage is going up and so.
That's gonna be the last probably the last quarter of this year of going into first of next.
Sort of next year.
Okay, and then how do you expect bringing items back to the menu to affect cost of sales in the second quarter.
Not much in the second quarter, except for just inflation, Chris because again until the six foot distancing is eliminated you're not going to see me play too much with the menu until that starts going away. Because then as I open up my dining rooms, and we get back to more normal running is when you will see me add some menu items and some labor.
Okay, great. Thanks, guys. Congrats on the great. Thanks. Thanks. Thanks.
Thanks for your body.
And next I'll go to the next second from the basic security of your line is open.
Thanks and congrats.
The great numbers.
I just want to concentrate a little bit more on the growth.
The.
Hopefully we'll see.
Can you just remind us what the.
The new.
Unit target vs on margins are going forward.
Target.
Sure.
We're looking at this.
Smaller prototype and what we're trying to look for in that is minimum revenues of about 3.5 million in that new.
The new box and we're looking at margin still in that with the three five and that 17% range, which should get us.
On.
The investment of two eight to three one.
Close to the 30% margin.
And I guess, if we think of that kind of more of a of a balance.
The annual in the unit portfolio, where you may have some stores, maybe in Texas et cetera.
Three five.
This is probably on the very low end right I mean on balance is probably see for a million dollars plus.
Per class I mean, we were looking at why I say, the three $5 million when we're using the site again.
We said this last time, we're looking at five states five to seven states that we've done very very well and from the <unk> standpoint, and what we're looking for are different locations that will at least 235 and not cannibalize the existing site.
More than 5%. So that's our criteria, yes, we would expect those sites to do more in the end, but that's our minimum target from of revenue standpoint, well ahead of hurdle of the 17% in the 30% cash on cash return if we did that but obviously, we expect to do more.
And in terms of the the the two new units.
I mean, I guess, especially one of them is really really new but any color on the average sales plus for.
Yeah.
We're very happy with them, especially opening them in the COVID-19 market like we have been but where I'm pleased and the of growth exceeded our initial expectations.
Great.
And then just gone G&A, John any early thoughts on Q2 might look like and what the year might look like.
Yeah, I tell you the G&A was a little high this quarter because we had.
Quite a few option exercises as.
As well as of the best teams of stock that caused a lot of employee.
Of tax taxes to be paid and so taking that it's really heavy in the first quarter of that doesn't exist in the second third fourth quarter as well.
The the performance bonus that was books, so I would expect.
In the latter.
Orders second and third for that to be reduced by five to 600000 as we go through the second third and fourth quarter as compared to Q1.
Per quarter right.
But the <unk>.
Harper Valley, Oregon.
Okay per quarter, yeah, Okay, yeah. Thank you very much.
And next to the Andy Bearish from Jeffrey Your line is open.
Hey, guys.
Just wondering on the.
The pipeline building.
For 22.
You're seeing some benefits out there from.
Clothes stores.
Things that you can you can convert as you've done in the past and.
How many of those do you think next year will be that the 5500 square foot prototypes.
Any any of our prototypes of it will do will be definitely be the 5500, obviously like we've always done in the past standard we love hermit crab, and we love Remodels and we will look at the space as long as it's in the right area.
But what we're looking at that as far as our market points, where of Arkansas, We haven't seen a whole bunch of closing so we're not in California, and we're not New York and all of that type of stuff. So we haven't seen a whole bunch of closing.
If and when they do come which I think you're going to be more in the second half of the year all of them.
That sort of look at those opportunities, especially for some remodels, but you'll you'll see any protostar. We do in 2022 will be the 5500 and then we obviously we will continue to look at opportunities in the.
And the remodel markets.
Gotcha, and then John on on on the expense line on the operating side of things I mean.
Dining room start to normalize.
The expect that debt pick.
Pick up with.
With.
Things like utilities coming back in.
Some of the smaller expenses that may of Donaway last year, when you guys hunker down.
Yeah.
Should come back, but what the sales we should get a little of leverage on that line on a low so when you're looking back of 2019 numbers.
As we get some leverage on that line item.
With the exception of delivery of that probably going to be for.
$40 50 basis points higher because of.
The mix of that.
Of delivery fees and also to go supplies, but other than that I think the leveraged should bring them back closer to your 2019 as we approached the 2000 2019 level.
Great. Thank you very much.
Thanks Handy.
And again, if you have a question. Please press Darwin at this time next for going to cutbacks from Seow King of Associates. Your line is open.
Hey, good afternoon, guys Hopewell.
Too few taglines. Thank.
Thank you few taglines left so you'd be talked about.
Once you can normalize capacity of the restaurant, adding items back to the menu will the menu go fully back to what it was will there still be a streamlined.
Nature to it or is Ernie.
Deficiencies or maybe swaps for different types of items, where you would expect some.
Some cost benefit even as you start to restore items.
Yeah, I mean, it will not go back to the the size of the menu that we had pre COVID-19 for the simple fact that week, we kept all of our big sellers and we will add on a few items, probably a handful too.
At the turn over the next.
But as we release from the six foot distancing, but now, but we've already planned on some efficiencies and we're going to carry those through through.
The obviously the rest of this year then as we move into the full menu from 22 on.
That's great and then at the restaurant level, what are you seeing as far as alcohol mix is it kind of normalizing back to the fiscal 19 levels are are people low more exuberant and it's actually over indexing, what's your experience from the restaurant.
Right in there around that 16 and a half remember if you go back to 19, we're closer to the 18.
And the big thing for us, especially the sixth of the distancing, that's where we kind of of a waiting area has a lot of in the bar area and so obviously that's not what are we six that this isn't where it's probably now not everybody's going in there I'm just waiting around obviously, it's not allowed so that's definitely affected us once we get rid of of the six foot distancing, we think where we can move.
Very quickly too that the 18th and continue on from there, but we're pretty pleased honestly and the time and place that are 16, and a half as of probably a pretty strong number of definitely in the casual dining environment.
Okay, Great and final one for me.
John you talked about off premise, maybe settling out in the mid twenties.
Does that include thoughts on catering and where are we recovery wise relative to when you think.
Jewish can start pushing on the catering opportunity again, thanks for.
Oddly yet oddly enough, yes that would include the catering getting back to the mid twenties.
But.
And to see it come back in catering to be quite honest of work booking some weddings and some things like that it's not coming back strong yet, but it's definitely coming back and.
We're not opening new markets like we we're scheduling.
Going into 2020 scheduling to do so as soon as we get out of the six foot distancing will start scheduling opening those markets and expanding that like we were going to and 20. Yeah hope is that we see hopefully some softening of it specifically getting into the fourth quarter as we get into the holiday period.
That's helpful. Thank you both of them.
Thank you.
And next thing of a follow up question from James Weatherford from Steven Your line is open again.
Oh, Thanks, I just wanted to get back on the margin piece for a minute.
Sure Denary kind of leverage you're seeing with the new operating model and even with commodity inflation inflation labor costs for returning I'm curious, Steve do you see an opportunity to build additional value into that you experience, whether it's portion size price for something else. There are some of the nacho car or something like that.
As the six foot distancing goes away just to kind of extend your lead on the value front. Thank you.
I think I value of equation is the best in the business is currently right now, but one thing that we will be looking at is you'll probably not see has come back out with the Nacho car again because of the buffet style on that from of Health Department part of the view.
See us looking at some value placed specifically for happy hour on the food side as we get rid of of the six foot distancing.
Alright, but no further questions I'd like to turn it back to Steve has not for any closing remarks, well. Thank you. So much. Thanks for you so much John and I. Appreciate your continued interest and choose and we will always be available to answer any and all the questions again. Thank you stay.
Healthy and have a good evening.
Yeah.
And that does conclude our call for today. Thank you for your participation you may now disconnect.
Okay.