Q2 2022 FAT Brands Inc Earnings Call
Good afternoon, ladies and gentlemen, and thank you for standing by welcome to the Fat brands, Inc. Second quarter fiscal 2022 earnings conference call. At this time, all participants have been placed in a listen only mode.
Please note that this conference is being recorded today July 28th 2022 on the call today from Fat brands are President and Chief Executive Officer, Andy Wheater Horn, and Chief Financial Officer, Ken Kulik.
By now everyone should have access to the earnings release, which can be found on our investor Relations website at IR Dot fat brands Dotcom and the press release section.
Before we begin I need to remind everyone that part of our discussion today will include forward looking statements. These forward looking statements are not guarantees of future performance and therefore undue reliance should not be placed upon them actual results may differ materially from those indicated by these forward looking statements due to a number of risks and uncertainties. The company does not undertake.
To update these forward looking statements at a later date for a more detailed discussion of the risks that could impact future operating results and financial condition. Please see today's earnings press release, and our recent at the SEC filings.
During today's call the company May discuss non-GAAP financial measures, which it believes can be useful in evaluating its performance. The presentation of this additional information should not be considered in isolation, nor as a substitute for results prepared in accordance with GAAP.
Reconciliations to comparable GAAP measures are available in today's earnings release I will now.
Now I'll turn the call over to Andy Wheater Horn, President and Chief Executive Officer.
Thank you operator, and Hello, everyone. We sincerely appreciate you joining us today and for your interest in fat brands.
This afternoon, we made our second quarter 2022 financial results publicly available.
Refer to the earnings release, and our earnings supplement both of which are available in the investors section of our website at www fat brands Dot com.
Each contains additional details about the second quarter, which closed on June 26 2022.
I would like to start by thanking our entire team who worked diligently as we continue to scale this business.
Due to the hard work of our team members franchisees and their employees that we moved forward with confidence in the long term opportunities for cap rates.
Now I would like to discuss our performance in the most recent second quarter.
I am pleased to report that the strong sales momentum we experienced in the first quarter of 2022 continued in the second quarter.
Specifically we reported.
Total revenue of $102 $8 million in second quarter of 2022 compared to $8.3 million in the second quarter of 2021.
The significant increase in revenue was a result of the 2021 acquisitions, we made coupled with ongoing sales recovery from the negative effects of the COVID-19 pandemic and the prior year.
Comparable system wide same store sales increased 526% for the court.
Equally impressive system wide sales grew to $553.4 million or 284% when compared to the prior year quarter.
When looking at our legacy Fat brands portfolio, which includes only the brands we own for all of 2021 system wide sales increased seven 5% for the same period.
For the full fiscal year 2022, we remain on track to deliver an annual run rate revenue of approximately $400 million with system wide sales of over $2 $2 billion.
Our top line growth was matched by an equally robust increase in adjusted EBITA adjusted.
Adjusted EBITDA increased to $29.5 million in the second quarter. Following a strong Q1, adjusted EBITDA of $15 $1 billion.
Looking to the second half of the year, we expect expect both Q3 and Q4 adjusted EBITDA to be similarly strong for an annualized run rate adjusted EBITDA of approximately $90 million to $95 million for fiscal year 2022.
Badlands continues to grow both organically and through acquisitions.
We're very pleased with the progress we've made against our asset light growth strategy as we've expanded our portfolio to 17 restaurant brands with approximately 760 different franchisees, who operate an aggregate of 2000 and 227 franchise restaurants. In addition to our 127 company owned stores.
Today with a total of 2350 restaurants to open we are approximately the 25th largest restaurant company in the country by unit count.
We believe we have a strong trajectory of growth had through both verticals.
Looking at our organic growth strategy.
During the second quarter, we opened 26 restaurants, bringing our year to date openings to over 60 restaurants with plans to achieve approximately 110 to 120, new restaurant openings this year.
As we integrate the eight new restaurant concepts that we acquired in 2021 within this apprehends portfolio, we've seen robust demand from our existing and new franchise partners to add a variety of our brands to their portfolio of restaurants. In fact, we have over 325 multiunit franchisees at the end of Q2.
We also continue to play into the synergistic nature of our portfolio with co branding we've experienced great success by co branding shopper and Buffalo's express and by Cobranded marvelous job cleaning and Great American cookies.
We see great value in pairing other similar bans in our portfolio together as a way to drive additional revenue growth.
For example in the near future, we will be co branding a round table pizza with a fat Burger as well as he Johnny rockets with a hot dog on a stick.
All four iconic California based brands each had very little customer base.
Our restaurant development pipeline continues to be robust with over 900 restaurant commitments signed and paid for.
Which represents an additional 38% unit growth and will provide us with an estimated $50 million in incremental adjusted EBITDA were approximately 50% EBITDA growth over the next few years.
At the end of August we will host our biannual franchise convention in Las Vegas, where we expect approximately 2000 of our franchisees suppliers and significant stakeholders to participate.
This will be the first time that we are hosting our in person convention since the pandemic began we're looking forward to this gathering and the energy it will bring to the entire organization.
It will also be an opportunity to further our development pipeline as we will be offering incentives for franchisees to buy additional restaurants.
Another important part to our growth strategy is our Atlanta based manufacturing facility, which produces pretzel mix and cookie dough for several of our brands.
During the second quarter, our manufacturing facility generated over $8 $6 million in sales.
In addition to being accretive to revenue and EBITDA, our manufacturing facility helps our franchisees mitigate supply chain issues and purchase goods at an approximate 20% discount relative to the price they could get from retail distributors.
We believe our factory business today is in its early stage of growth operating at about 30% capacity with significant white space to expand.
Our focus is on adding to the goods. We currently manufacture for our entire portfolio of brands and selling goods to third party brands not in our current portfolio.
Notably, we recently hired a VP of manufacturing sales to promote our manufacturing business to third parties, where we can add value.
Now turning to fat brands second strategic pillar growth by acquisition.
Our primary goal for 2022, it's been to Digest, the eight new restaurant brands, we acquired in 'twenty, 'twenty, one and to identify and capitalize on potential synergies and cost savings as we scale the business.
That being said there are a number of strategic acquisition candidates that could fit within our current operations or give us a chance to acquire additional strategic platforms as well, it's still out our factory business.
We are considering how to capitalize on these opportunities in a manner that would be delevering the business such as using some form of our publicly traded common and preferred equity securities.
This could also improve a publicly traded float of course subject to watching the limitations of issuing equity that could affect the preservation of our very valuable and substantial net operating tax loss carryforwards.
When evaluating potential acquisition targets, we focus on brands with proven track record of long term sustainable and profitable operating performance and that can show an existing pipeline or path to significantly grow their business rather than focus on brands that need significant turnaround efforts and are simply cheap to buy.
These acquisition opportunities take time to complete and there is no guarantee that we will get any of them done. However, we think there are interesting targets available in the market today, we may combine one or more of these opportunities with our refinancing efforts as well.
During the quarter, we acquired the Nestle Tollhouse Cafe by Chip franchise business from Kraft Foods, Inc. And are in the process of rebranding the approximately 85 stores is great American cookies.
We are set to open our first converted store in September we believe this tuck in acquisition will increase our foothold as a leader in the cookie and ice cream dessert category, joining our existing great American cookies and marble slab creamery brands.
Though we are focused on our deep organic growth pipeline. This year, we saw great value in making this accretive acquisition. These stores will fold seamlessly into our quick service division and provide us the opportunity to utilize the capacity of our manufacturing business, providing supply chain efficiencies and cost savings.
To date acquisitions have been a strong growth vehicle for fat brands can we anticipate the combination of our production and distribution facility and scale to increase the profitability of the franchisees that have joined us with this acquisition.
Diving back into synergies, we have a seasoned senior leadership team in place that has experienced in identifying synergies and removing excess overhead across our portfolio of brands.
Notably our corporate I T systems have now moved to a shared service model focusing on bringing our 17 brands together on a simplified.
It's really robust scalable and efficient platform.
This new shared services model will allow our brands and franchisees to use technology to drive additional traffic to be where the guest is through delivery and enable customers to order on their terms be it drive thru in the restaurants online or on mobile with their own devices.
As you know we're currently in a period of historically high inflation in the supply chain challenges. However, with 17 brands in our portfolio. We were fortunate to have both strong purchasing power and relationships with our suppliers and distributors.
As a result of our purchasing power of more than $600 million per year in food beverage and paper costs, we were able to generate savings for our franchise partners of approximately 2% to 3% which is beneficial in the in this inflationary environment.
We continue to aggressively negotiate with our suppliers and manufacturers. So that we can provide our guests highest quality freshest ingredients at competitive prices.
That said menu price increases are inevitable in this current environment, we have encouraged our franchisees to take price where necessary that means increasing price. So that they can continue to profitably operate and serve their communities.
When it comes to menu price increases, we look to implement smaller increases overtime. So we lessen the price impact on our consumers.
It's important to note, though that we have started to see the cost of goods come down even though at somewhat of a slow rate.
Looking at our balance sheet, we are working with our bankers and actively pursuing the rating and refinancing of our different securitization facilities, beginning with our fat 2021 and fat G. F. G 2021 securitization trusts.
Given the Choppiness of the capital markets and a fairly long lead time with the ratings classes, we think any potential refinancing will likely be either a Q1 or Q2, 'twenty twenty-three event, rather than Q4 of this year.
In addition, we are working on the planned redemption of $135 million of our series B preferred stock from the sellers of twin peaks and the sellers of global franchise group, sometimes over Q3 and potentially Q4.
The securitization refinancing and the preferred stock redemption will each provide substantial savings through a free cash flow perspective by lowering our cost of capital, which is a top priority for us.
It is important to note that earlier this month on July 15th we announced that we've raised our third quarter common stock class, a and class b dividend from 13 cents per share to <unk> 14 per share representing a seven 7% increase in the dividend rate, which further demonstrates our desire to reward our investors with quarterly dividend distributions.
Yeah.
We recently strengthened our current board of directors with the elevation of James Neuhauser to executive Chairman of the board and added Lin call even to our board as a new independent director.
Our prior chairman Edward Renzi will transition to the role of Vice Chairman of the board of Directors and will continue to provide strategic counsel about brands and serve as our lead independent director.
Jim and Ed had been tremendous assets to fat brands over the last five years as we've reached a whole new level of scale I look forward to tapping further into Jim's deep expertise in the public equity markets. I'm also pleased to welcome Lin who brings a new skill set to our board as an experienced restaurant analyst.
In summary, the opportunities ahead for fat brands are considerable and we're well positioned for growth that branch is built on providing an authentic superior dining experience and I'm confident our brands will weather this current economic environment.
Have a seasoned senior leadership team, coupled with a strong and dynamic brand management platform capable of seamlessly and cost effectively integrating new brands. We also have a healthy and growing development pipeline that will fuel organic growth and naturally further delever us for many years to come.
We look forward to updating you on our progress on future calls and with that I would like to hand, the call over to Ken to talk about our financial highlights from the quarter.
Thanks, Andy total revenue during the second quarter increased 1141% to $102 $8 million.
Reflecting revenue from global franchise group twin peaks as always and made a grilling wings all of which were acquired during 2021.
Additionally, our revenue benefited from the ongoing recovery of the negative effects of COVID-19 in the second quarter.
Cost and expenses increased to $89 $6 million in the second quarter compared to $7 $2 million in the second quarter of 2021.
Included in cost and expenses general and administrative expense increased to $28 million in the second quarter from $5 $1 million in the prior year period.
This increase was attributable to the 2021 acquisitions, coupled with increased compensation costs professional fees and travel expenses, reflecting the significant expansion of the organization.
I'll also add that beginning in the second quarter, we are presenting depreciation and amortization expense separately from general and administrative expense.
Depreciation and amortization expense increased to $6 $7 million in the second quarter from zero point $4 million in the year ago quarter.
Attributable to the 2021 acquisitions, including depreciation of acquired company owned restaurants, and the amortization of acquired intangible assets.
Cost of restaurant in factory revenues increased to $49 $8 million in the second quarter compared to zero point $2 million in the prior year period, primarily related to the 2020 one acquisition.
Including the operations of the acquired company owned restaurant locations and the Atlanta based manufacturing facility.
Advertising expense was $11.6 million in the second quarter compared to $1 $4 million in the prior year period.
These expenses vary in relation to the advertising revenue and reflect advertising expenses related to the 2021 acquisitions and the increase in customer activity as the recovery from Covid continues.
Other expense for the quarter was $21 $6 million.
To $9 $1 million, a year ago quarter and it was primarily comprised of interest expense on our securitizations.
Other expense for last years quarter included a $6 $4 million loss on extinguishment of debt that did not recur this quarter.
Net loss for the quarter was $8 $2 million or 50 cents per diluted share compared to a net loss of $5 $9 million or 48 cents per diluted share in the prior year quarter.
And on an as adjusted basis, our net loss was $3 $1 million or <unk> 19 cents per diluted share compared to $1 $1 million or nine cents per diluted share in the prior year quarter.
And with that Paul Please open the line for questions.
Thank you we will now be conducting a question and answer session.
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One moment, please while we poll for questions.
Thank you. Our first question is from Joe Gomes with Noble capital. Please proceed with your question.
Good afternoon, Andy can graduations on the quarter.
Thank you Hi, Joe Thank you.
Yeah.
I just wanted to start off store openings in the second quarter were 26, I think in our first quarter. They were 27.
You know you're talking about up to 120 I think is up previously from your estimated about 100, you'll not see momentum there continues to build even in the face of the current economic environment.
They're very very strong momentum, we're at 62 stores year to date through today.
We'll be in the Seventy's and Eighty's by the end of August .
So a lot of openings going on right now, which as you know a big effort, but but they're very very strong.
And we're going to hit that north of 100, probably up to 120, new store openings in this calendar year and and probably as many if not more in 2023.
We already have 50 or 60 under construction right now for 2023, so very strong.
Demand by franchisees, the only thing that it slows us down at all as you as you know is the availability of equipment like freezers and Flyers and things like that that just are taking longer to get these days than normal, but I'm sure that that will catch up here shortly.
Okay and.
And similarly.
Again continue to show.
Really good same store sales.
You know on the owned locations.
Twin peaks et cetera.
Everything continues to move well with those you're not seeing any slowdown and anything you own locations.
The management team of twin peaks continues to hit the ball out of the park, they're they're just killing it they're doing a great job. There is extremely strong positive same store sales are very solid development in.
Very solid new franchise sales to tobacco development pipeline, our focus on the middle of the P&L right now for the company owned stores.
You know labor and food costs things like that as you get through the summer.
You know, there's a little bit of seasonality to that business just because we don't have sports at the same intensity year round and truly twin peaks as a sports bar, but you have a little bit of lagging in the summer here in July , but we'll be back to football in August and.
Pre basketball thing so you know, where we're heading that way and strong sales of just very strong and continue to be.
A double digit year to date.
Excellent.
And you talk a little bit about the factory and the utilization there and one of the goals is to get to the.
They show up on the factory.
That's what the acquisition they have any real impact or is that de minimis given the size of the acquisition.
No. It's it's very important.
Other 85 to what could be 100, new stores coming into great American Cookie and essentially it could be another couple of million dollars of factory on profit just from that Nestle addition, so we bought the royalty stream, but we we didnt really pay for the manufacturing business that came with it and so our produce.
Seem to do ourselves instead of those naturally franchisees buying go from a third party will give us an additional couple of million dollars. It was really an opportunistic deal because for.
For the seller.
They brought in a couple of million dollars a year of royalties and netted maybe a million dollars in their business after overhead for fat, we not only get those royalties with lower overhead because we have the synergies. But then we also got a couple of million dollars of manufacturing profit. So it's a very very good purchase for us strategically to have that factory and make that additional turn of EBITDA.
There are other buyers couldn't get.
Great.
Maybe you can talk a little bit on the.
The rating in the on the whole business securitization. All originally your goal was to get that done in the first half of this year and now.
I mentioned today, probably this is now first half of next year and I'm just kind of maybe you can walk us through as to you know what is it just making the process drag out for now.
Potentially another year yeah.
Yeah, Richard I'm going to say it.
First thing I'd say is turn on the T V.
Yeah, you know the economy in general has just you know, giving pause to the credit markets and so when you see the high yield market and asset backed securities market.
It takes such a pause and catch their breath going into the first and second quarters. It just slowed things down we one we had we had to really absorb the acquisitions that.
That we made we are coming up now this month is the one year anniversary of the G. F. G deal, we decided to look at putting the fat 'twenty 'twenty. One deal. What you really are burger restaurants into the G. F. G deal, which are the non table pizza cookies and ice cream hotdogs pretzel business do sort of one larger deal.
And have you know trying to spread the cost across that one larger deal. So that's a little bit more time to have that track record under our belt of owning it for a year and there are some changes in the rating agencies in terms of how they're doing business right now and so originally when we had planned to.
To try to come back to market at the end of Q1 or sometime in Q2 of this year, we thought that.
You know some of the agencies will be back with a whole business securitization radians programs and one of them in particular was not and it doesn't expect to be till the end of Q3 or sometime in Q4, so that slows things down and then just the just the overall interest rate environment. I mean, we we will miss some of the savings no question from higher rate environment. We will also have higher.
Revenue and make up some of that savings because of inflation because of price increases we will collect more royalties off the top line. So it's not as bad as it seems and.
We have plenty of time and you know to get the securitization done in rated and reissued we just want the markets to come down and are I think everyone is hopeful right that rates will come down a little bit better, but like Q1, and where we're absolutely starting the ratings process now we're not waiting it's just a long process. It can take six months to get a transaction right and you have to make sure that the agencies prepare.
To handle it so I'm just cautiously guiding towards a Q1 worst case Q2, but we hope it's Q1.
Transaction and that's that's based upon the advice of our Bakers I'm, not just coming up with that man.
Okay and.
One last one for me and I'll, let someone else ask a few you know the the preferred B redemption, you know how do you see that occurring now and.
In terms of how you plan on financing that.
Yeah. So we have additional credit available under our existing securitization facilities.
Just on similar leverage multiples just much better performance because when some of those securities were issued liked about 2021 the broker dealer or.
Did you have chi deal for great if a global franchise group.
We're basing that off 2020 data not 2021 data and now that you've had a recovery to normalized operations using the same leverage multiples that it provides for additional liquidity in those facilities. So we have the ability and have accessed those facilities to start to end and to structure. Some additional bonds that we would basically moved the preferred.
Into bonds, one way or the other either third parties coming in or otherwise to redeem that stock. It's ultimately a savings from our cost of capital standpoint and.
You know, it's it's Nashville, even though those bonds are going to get called and get reissued just as quick as possible.
We have an obligation to redeem the preferred stock it's expensive we get it out there at this stage. So that's our focus and we think that we'd get that done.
Probably by the end of this quarter.
It drags a little bit into Q4, I don't think so I think it'll get done you know shortly.
Oh, great. Thanks for taking my questions appreciate it.
Thank you Joe Operator next question please.
Thank you. Our next question is from Gregory fortunate off private Investor. Please proceed with your question.
Hey, Andy how are you hi.
Hi, Greg.
Hey, Yeah nice numbers are the only question I have is how come your.
Not using extrapolating out and getting US 100 to a 104 million of EBITDA.
That would lead into where you're just trying to be conservative.
Well sure I mean, right now the 2023.
You know 23 should be certainly as good if not better than 2022 but just given the noise in the economy, it's hard to forecast what sales might do six months or nine months or 12 months out from now. So that's why you know I think were being cautious right now.
We will continue like I said, we're continuing to see very strong sales across most of the brands. There's some seasonality to it but you know if things go the right direction and that number will increase more in and you know, we're all optimistic color and I just want to be conservative in our projections today.
So for if we.
Wanted to start looking out and just thinking about the future I mean at.
At least for the next let's say three or four quarters. It was like 29 to <unk>.
The REIT is that going to be the run rate that youre going to move to.
Well I think because there's some seasonality I think there's because there's some seasonality it's safer in the moving to the $95 million to $100 million range up from 90 to 95, you know over the next.
A few quarters, but remember that we're adding 10 million a year going forward of new store openings are just drops to the bottom line and I'm you know very little of closures that have any material effect on them you know and it usually starts at close or very low revenue stores and so that that just continues to build and build now as we open we opened 62 stores.
Year to date, we haven't had six months of income from those 62 stores, you've only had a few months of income because there's no open on January one and the same will be true as we go throughout.
You know 2023, so we enter 2023 with another 120 stores will be getting the full benefit of that in 'twenty 'twenty three that we didn't get in 2022, plus we'll get the incremental benefit of those additional stores for a partial year in 2023, so there's always a little bit of a lag, but it's solid.
Solid it compounds and you know naturally delever, just because EBITDA just goes up if we don't borrow another dollar we just amortize that or anything else. We do on our EBITDA is growing and we're delevering.
And how are the stores doing in this kind of environment.
Assuming they did take share at least maintaining their margins because obviously, we need the franchisees to be you know, making some money just stay in the game.
Yeah, So I'm, a big believer in coaching franchisees to maintain profitability and maintain margin.
And in part of being a.
A part of our system is that you get that kind of coaching you get that kind of counseling from our franchise business consultants are out in the field every day meeting with franchisees looking at their numbers, we collect P&L as often as we can from the franchisees and go over their margins and it's really important you know an independent operator can be afraid to take price to increase their price because they don't want to lose customers.
If you're part of the system the system's Gotta teach you and coach you that you have to maintain your margin you can't do this for free and you know look if commodity costs come back down they can change the prices you know, we all rarely remember seen restaurants lower their prices, but it's important to maintain the margin and so that they are profitable you don't wanna be the independent operator that doesn't take.
And finds out at the end of the year, they didn't make any money and they end up going out of business. So it's important and we're all over that.
I would think that they wouldn't have lower price customers that used to do it in.
That little bit of extra margin, but I guess I'll have to decide.
Andy going into 'twenty three.
Whenever when when do you think you'll be stopped.
Stopped burning cash like from a P&L point of view is it is there.
You know based on what you know now and assuming a refinancing the first quarter do you have a timeframe for like a breakeven all in with the dividend and everything.
That's a very good question and you're right on track with that deep with the new store openings with the refinancing and in fact, we should have at the conclusion of those two things it should be around the end of Q1 I that maybe it's by the end of Q4, but let's just say the end of Q1 to be conservative that we should be at a point where.
Even after the payment of dividends and that there's positive excess cash flow above and beyond the interest payments and everything else. So and we don't like a lot of restaurant companies because we're so asset light, we're not burning through capital to build new stores, we've allocated a certain amount of capital at the twin peaks level to build additional company owned stores, but just a few of them every year and.
They're they're really using kind of a hub and spoke model to seed some markets get them up and running and then bring in franchise developers to run from there and use our corporate stores to support the franchisees and so you know that.
It seems to be solid and working and you know that that business isn't trip that much capital. So I don't really see us.
You know, having a you know a constant need to raise capital going forward unless it's for some acquisition in some way and as I mentioned very clearly in my remarks earlier, we want to do that in a in a delevering way. However possible. Just so that you know we're not racking up more of that through to say good luck with that.
So what what was the answer I'm sorry.
Can it be cash flow.
By the end of Q1.
It is really the only difference would be if the refinancing it takes even longer than it was than it would be the end of Q2, but somewhere in there somewhere in the next.
You know six to nine months I expect it to get them.
Okay Fantastic and you guys are doing a great job keep it up.
And Vegas thanks.
Thank you very much and look forward to it.
Operator, any other questions anyone has.
As a reminder, if anyone would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue.
Our next question is from Roger Lipton with Lipton financial. Please proceed with your question.
Yes, Hi, Andy a good progress, obviously I read them I I got until that I was trying to.
Ask the question on like on my own self.
Cell phone, but it wouldnt takes it prompts so I had to dial in on the anyway. So it's by a tell a technological challenge here I Gotta Love a landline right. Yeah exactly can you give us an idea of which concepts are are are really providing the openings as well as there's a you mentioned twin peaks is doing very well in terms of.
Give us a little more idea of which are the strongest kind of what I consider the six largest hurricane fat Burger Johnny Rockets Roundtable twin peaks and says you know they survived most material concepts, which are the strongest in terms of openings and same store sales. Yeah. There. There is a slide on our investor website that shows.
The pipeline my brand of.
The backlog. So you can see how much of it is in Q S. Our division the casual division.
Most so we have a lot of growth at twin peaks as you know theyre going to get to 100 stores approximately by the end of the year end and there's 130 plus stores in the pipeline. There so very steady as a 10 to 20 stores a year and on the in the Burger category fast casual we've got just dozens of deals for copper Johnny rockets.
Domestically and internationally to build new stores and similarly, there's always an acute side has a nice pipeline, but you also have round table in the great American cookie and and our.
Ice cream brands Marvel side that has really solid growth. So I don't see it as much in the casual dining space, which is what you would expect right, we're not seen hurricane and Buffalo's native ponderosa and Bonanza knock out tens and twenties in terms of incremental stores, but there's a few new stores here and there it's really in the polished casual dining segment and then in <unk> and in <unk>.
Fast casual.
And then and then of course, there's broke through the factory is that slide in the second and the Q2 presentation.
I looked at it quickly I didn't say I don't think it's in the Q2 I think it's in the June investor deck, that's on the website.
And out there already but it is it is out there okay. Okay. Oh, we can talk a little more about another time.
And most of my other questions have been asked so I'll, let you go but a good job and I'll talk to you soon thank you.
Thank you very much.
Yeah.
Thank you operator any other questions.
There are no further questions at this time I'd like to turn turn the call back over to Andy Wade our horn for any closing remarks.
Thank you operator, I'd like to thank everyone for joining us today and wish you a good evening and good rest of your summer.
Thank you very much.
Yeah.
This concludes today's conference call you may disconnect. Your lines at this time. Thank you for your participation.
Yeah.
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