Q2 2022 Red Robin Gourmet Burgers Inc Earnings Call
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Good afternoon, everyone and welcome to the Red Robin Gourmet Burgers incorporated second quarter 2022 earnings call.
Please note that today's call is being recorded.
During today's conference call management will be making forward looking statements about the company's business outlook and expectations.
Forward looking statements and all other statements that are not historical facts may reflect managements beliefs and projections as of today and.
And therefore are subject to risks and uncertainties as described in the Safe Harbor discussion found in the company's SEC filings.
During today's conference call management will also discuss non-GAAP financial measures.
These non-GAAP measures are not prepared in accordance with generally accepted accounting principles, but are intended to illustrate an alternative measure of the company's operating performance that may be useful a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures can be found in the earnings release.
The company has posted its fiscal second quarter 2022 earnings release on its website at IR Dot Red Robin Dotcom.
I would now like to turn the call over to Red Robin's CEO , Mr. Paul Murphy. Thank you Sir Please go ahead.
Hello, Thank you for joining US with me here today is Lynch wind for our Chief Financial Officer.
After I provide some general commentary on the business and an update on our initiatives Lynn will review our fiscal second quarter results in detail along with some revisions to our financial outlook.
As the headlines have become increasingly negative as it relates to consumer confidence general inflation and the likelihood of a recession casual dining traffic has been trending downward.
Still when we evaluate our sales and traffic trends relative to our peers in the same markets. We are outperforming the casual dining segment. We attribute this outperformance to our high low strategic approach to value, including higher priced innovative limited time offers and more compelling.
<unk>, including our $10 gourmet meal deal, which we launched in late June these.
These promotions are complemented by everyday value that include affordable prices generous portions and signature bottomless sides and drinks.
Our guest satisfaction scores for both dine in and off premises are improving which we attribute to our back to basics operational execution improved staffing and declining turnover, which are enabling us to better serve our guests.
Our digital platforms are also helping to support our business in ways that were simply not possible, even just a year or two ago.
We have increased our marketing versus 2021, however, we still remain below 2019 levels.
Our marketing is mainly digital and therefore, a more targeted and cost effective and is driving record levels of engagement through guest segmentation automated offers and push notifications.
We are also supporting the current limited time offer and value message, while conveying that red Robin is all about making moments of connection for friends and family across a diverse and multi generational demographic.
While commodities in general have plateaued, they had done so at a higher level than we had anticipated the biggest unknown so its commodities or the weather conditions for the remainder of the grain growing season, and whether demand will fall as a result of the macro economic backdrop Lynn will expound about both of these top.
Opex in her remarks.
Now, let's briefly discuss recent and current sales trends comparable restaurant revenue for the second fiscal quarter Rose four 1% compared to 2019 and rose six 7% compared to 2021.
For our eighth period, ending August seven which is the first period in our third fiscal quarter preliminary comparable restaurant revenue rose three 1% compared to 2019 and rose 4.0 per cent compared to 2021.
And our efforts to be the employer of choice within our industry, we have prioritized hiring and retaining team members because we know that when appropriately staffed we provide our guests with a quality experience that they deserve.
This in turn leads to greater guest satisfaction and team member engagement higher throughput higher frequency and ultimately higher sales.
The progress we have made in driving greater applicant flow hiring and retention continued into Q2. However, there is still more work to be done when comparing our progress on overall staffing levels to our hourly team members. We have improved from 82% of our target at the end of Q1 to over 91% at the.
End of Q2 with a continued goal of getting to 95%.
And similar to last quarter, we were essentially fully staffed energy M position, which can only lead to further restaurant staffing improvement because these two things are highly correlated.
This is being driven by significantly improved turnover for the trailing three periods.
In the Big picture, we have a focused action plan to address a few key areas starting with connection conversations between our restaurant leaders and team members to not only help refine and improve our team member experience.
And run great shifts, but also provide quality training with a focus on back to the basics execution.
We are also offering more competitive wages at the local level and far greater scheduling flexibility, including the implementation of the hot schedules platform, which is in process.
We believe the combination of these items will lead to higher job satisfaction, while optimizing the guest experience as we seek an ongoing two way conversation to understand refine and further improve.
In terms of our value and promotional focus we have brought in a breadth and depth of our messaging to red Robin royalty members and made our efforts more compelling driving record engagement levels and higher frequency of visits.
The components of our high low value strategy include keeping the menu fresh and exciting for guests who are successful premium limited time offers these higher priced L. T OS drive PPA incremental margin and attachment during the second quarter. We featured the Whiskey River.
Her backyard barbecue menu lineup, which included our smokehouse, brisket Burger pineapple upside down cake, milkshake and Tequila Sunset cocktail.
This is our third consecutive L. T O promotion to hit record sales levels.
Our newest L. T O launched in mid July brings steakhouse flavors to our restaurants with the Steakhouse summer menu and continues our recent success developing unique innovative items that have guests St. Yeah.
Items include a new savory steakhouse Burger loaded baked potato fries to alcoholic beverage choices and a pumpkin spice milkshake.
In addition to these premium L. T. OS. We are also promoting other compelling value offers that are strengthening our value perception and driving outperformance versus our peers in terms of sales and traffic as measured by black box intelligence and that value sentiment on social media channels and Lake.
June we introduced a limited time 10 dollar gourmet meal deal, which includes a gourmet Burger bottomless steak fries and a bottomless beverage from a select menu. This.
This deal is attracting guests to our brand to enjoy dining out with their families and friends again.
We are also testing other value programs around specific day parts, such as happy hour that will rollout to the majority of our system in a few weeks. We will also be testing lunch specials in the coming weeks.
<unk> is well ahead of our plans in about 2019 levels as businesses are resuming larger occasions, and we are ready to meet their needs. We continue to lean in on the sales channel, which we believe can continue to grow in a meaningful way in the years ahead.
Turning to our foundation, we are continuing to hone multiple growth platforms designed to drive consistent and profitable dine in and off premise growth.
Let's first talk about Donato speed, so a product that continues to exceed our expectations. We are particularly encouraged by the incremental donato sales generated in the second quarter as we increased marketing support with declining supply chain issues.
There were approximately 200 restaurants, serving donato as at the beginning of the year and there'll be approximately 50 restaurants added in 2022.
The remaining 150 restaurants will be implemented over the course of 2023, when we complete our rollout schedule.
Sales for denial speed, so were approximately $6 $2 million during the quarter itself with a sales mix of approximately 60% dine in and 40% off premises breast.
Restaurants, serving Donato has outperformed restaurants without donato by eight four percentage points in terms of comparable restaurant revenues versus 2019 in the second quarter.
This is well ahead of the same measurement, we shared for the first quarter, which was 5% plus or a sequential increase of more than three percentage points. Additionally, guest checks that include Donato speech, though are on average more than $10 higher than those that do not include pizza.
By the end of 'twenty 'twenty four we expect Donato should generate annual company pizza sales of at least $60 million and profitability of at least $25 million.
Our integrated and seamless digital ecosystem, which includes a new website experience mobile app and an enhanced loyalty program represents a key strategy for our brand and it's driving frequency traffic and check.
We are currently standing at more than 650000, app downloads up from over 400000 as of the end of our first quarter bolstered by added marketing support in Q2, notably both our website and App are generating increased conversion as well.
Premises digital channels have become the vast majority of our off premises business, representing 83% of total off premise sales in the second quarter.
The integration of our Red Robin royalty platform into our App and online ordering experience has also improved our communication with guests and we are leveraging technology to drive frequency Royal.
Royalty membership continues to grow and is now $10 7 million as of the ended the quarter.
We are seeing record levels of loyalty engagement, driven by improved segmentation and targeted marketing.
This has feature sending automated and personalized messaging based upon purchase history.
We're also conducting smarter campaigns and beginning to drive elevated engagement via push notifications.
We are making ongoing improvements to these digital assets and recently introduced automated and push notifications, along with Apple and Google pay options. We are also continuing to enhance the ordering experience, reducing clicks and offering a more intuitive royalty integration Adele.
Additionally, we will be piloting an online waitlist in late 2022.
Next let's discuss new restaurant development.
Red Robin franchisee recently opened a new restaurant in West Wichita, Kansas.
And we will open a new company restaurant no later than early next year.
We are expecting to pursue modest new restaurant growth within infill strategy and established markets going forward.
Based on an ongoing track record of successful restaurant openings.
New restaurant, we opened late last year in Seattle is currently on track to deliver 2022 sales between four and $5 million.
This demonstrates the initial success associated with our new prototype.
This year, we are also continuing to implement floor plant modifications to improve off premises execution in our highest volume restaurants and pilot a restaurant refresh program to update our restaurants in the years to come.
Finally, as this is my last conference call as CEO of Red Robin I wanted to say, how much I've enjoyed getting to know our analysts and investors over the past few years.
When I joined the company back in October 2019. It was my intention to serve for three years to quickly improve operating execution and overall performance and then pass the baton to the next leader.
Of course, I certainly cannot have predicted that we were just about to enter one of the most tumultuous errors in the history of this industry and of course, our own lifetimes still I am proud of the work that we've done and navigating through the pandemic growing off premises sales implementing an enhanced service model.
Securing a new five year credit agreement and positioning the brand for the future with focused initiatives around people the guests experience food quality and innovation, a digital ecosystem and the rollout of Donato.
We recently held our restaurant General manager conference and I walked away with energy and optimism. The team is engaged passionate and focused on our operational priorities.
I have no doubt that G. J Hart will be a fantastic Chief Executive officer, and I will ensure a seamless changeover in leadership by staying on an advisory role through the first quarter of next year.
Let me now turn the call over to Lance to review our Q2 results. Thank you Paul as Paul outlined to our industry is facing headwinds and a volatile macroeconomic environment. However, given our financial results associated with our strategic initiatives. We believe we are well positioned to create long term.
For our shareholders.
Turning to second quarter results, we grew comparable restaurant revenues by six 7% compared to 2021 in the second quarter, surpassing the casual dining segment in both sales and traffic as measured by Black box intelligence compared to 2019, our second quarter comparable restaurant.
Revenues increased 4.1%, marking the second consecutive quarter of positive comparable restaurant revenues versus pre pandemic sales.
Versus 2021 we experienced a softening in sales in the last two fiscal periods of our second quarter that ended in mid July However, as Paul shared we have seen our sales increase in our eight fiscal period that ended August seven or the first period of our third quarter two of them.
<unk>, 4%.
We attribute this improvement to our high low value strategy that is building traction and outperforming the casual dining segment.
We delivered our ninth consecutive quarter of off premises sales dollars at more than double pre pandemic levels, demonstrating the sustainability of our higher off premises sales channel since 2019 as a percentage of total off premises sales third party delivery represented 54.
3% to go represented 35, 3% catering represented six 3% and Red Robin delivery represented four 1%.
Full year net cash provided by operating activities was $36 $4 million, while cash used in investing activities was $15 $6 million in cash provided by financing activities was $15 $5 million.
During the second quarter, we received federal cash tax refunds of approximately $12 $7 million, which included <unk> 5 million of interest.
We ended the quarter with liquidity of approximately $75 $3 million, including cash and cash equivalents and available borrowing capacity under our revolving line of credit.
Our ongoing focus includes effectively managing our bottom line dedicating free cash flow over the next several quarters to reinvest in our restaurants and infrastructure, while maintaining flexibility to pursue strategic initiatives that will generate profitable sales growth going forward, including adding.
Donato as to the balance of our system and ongoing investments in restaurant technology, and our digital ecosystem and new restaurant development.
Now turning to some of the specifics related to the second fiscal quarter Q2, 2022 comparable restaurant revenues increased six 7% driven by a nine 6% increase in average guest check and a two 9% decrease in guest traffic the increase in.
Average guest checks represented a 6% increase in pricing three 7% increase in menu mix and a 1% decrease from higher discounts.
Second quarter total company revenue increased six 2% to $294 $1 million up $17 $1 million from a year ago, driven by increased pricing and favorable menu mix shifts, partially offset by declining category traffic.
Restaurant level operating profit as a percentage of restaurant revenue was 13, 6% a decrease of two one percentage points compared to 2021, primarily due to the following restaurant revenue increased by $16 $5 million, primarily driven by.
<unk> pricing and favorable menu mix shift, partially offset by declining category traffic.
Cost of goods sold increased by 240 basis points, primarily driven by commodity inflation, partially offset by pricing and rebates.
Commodity inflation was approximately 19% in Q2.
Labor costs decreased by 120 basis points, primarily driven by sales leverage and lower group insurance and management incentive compensation cost, partially offset by wage rate inflation.
Wage rate inflation was approximately seven 5% in Q2.
Other operating expenses increased by 80 basis points, primarily driven by increases in maintenance costs utilities, and third party commissions, partially offset by lower hiring costs and sales leverage and occupancy costs increased by 10 basis points, primarily driven by higher <unk>.
Insurance costs, partially offset by sales leverage.
General and administrative costs were $18 $7 million, an increase versus the prior year of $1 million, primarily driven by increased stock based compensation expense merit increases and higher manager and training costs, partially offset by lower incentive compensation cost.
Selling expenses were $13 $4 million, an increase versus the prior year of $2 $7 million driven by increased marketing spend with improved staffing and ability to consistently execute.
During the quarter, we recognized other charges of $8 $1 million, including $8 $7 million related to the impairment of long lived assets primarily related to six restaurant locations.
$9 million related to restaurant closures.
$1 million related to executive transition and point $1 million for COVID-19 related costs, partially offset by a net reduction of one $8 million related to litigation contingencies.
Second quarter, adjusted EBITDA was $11 $9 million as compared to adjusted EBITDA of $19 million in Q2, 2021 Q.
Q2, adjusted loss per diluted share was <unk> 75 cents as compared to adjusted loss per diluted share of 22 cents in Q2, 2021 at.
At quarter end, our outstanding principal balance under our credit agreement was $199 $5 million and letters of credit outstanding were $8 $4 million effective pricing was 6% for the quarter as we continue to strategically increase prices to mitigate inflation well retail.
The strong value proposition. In addition, we took incremental price of more than 2% in early Q3 as a result of cumulative price increases along with normalization of costs, we expect margins to improve in future quarters to get back to 2019 levels and we intend.
And to make significant progress in 2023.
The company continues to face commodity inflation pressures, but we did experience and easing in supply chain disruptions in the second quarter, though they have not been eliminated we continue to diversify our suppliers to manage these disruptions and lessen their impact on our operations we have.
We're also proactively managing lead times related to other equipment purchases, including our implementation of tinnitus.
In addition, and new distribution contract kicks in at the beginning of the fourth quarter. This year, which is factored into our commodity inflation expectation. As a result, we are expecting cost of sales as a percent of restaurant sales to increase sequentially in the fourth quarter from the third quarter.
Due to the volatile macroeconomic environment softening industry sales trends and higher commodity costs, we have updated our guidance for 2022 as provided in our earnings release that we published today.
Sincere. Thank you to our entire Red Robin team, we have made meaningful progress in staffing, our restaurants, which will drive improved financial and operating performance restaurant traffic continues to outperform the casual dining segment. We are also executing strategic growth initiatives that will provide platforms for incremental profit.
The ability and the years to come including Donato digital menu quality and innovation or differentiated team member value proposition and new restaurant development Lastly on behalf of Red Robin I'd like to thank Paul for his considerable contributions to the brand over the last few years.
Ears.
His leadership and guidance were not only able to get through the pandemic that red Robin is well positioned to thrive in the years to come Paul It has been a great pleasure working with and learning from you.
With that I will turn the call over to Paul.
Thank you Lin for your kind words I too have enjoyed working with you even as I transition to an advisory role on my path to retirement my confidence in Red Robin's bright future does not waver.
This is because connecting family friends and fun through a memorable moments over great food, which is our brand promise is enduring and this company has strategic initiatives to drive market share frequency, while adapting to any changes in consumer behavior.
We believe we are better positioned to weather, an economic downturn than many competitors due to our value based propositions, including bottomless and relatively low average check of approximately $16.
This has been an incredible team to work alongside in pursuit of top line growth profitability and long term shareholder value there.
Their passion for Red Robin and commitment to quality results or something that'll Miss on a daily basis. So let me. Thank them one last time for all they have done and do on our behalf.
And with that let US now open the call for questions.
Thank you the floor is now open for questions. If you would like to ask a question. Please press star one on your telephone keypad at this time all confirmation tone will indicate your line is in the question queue. You May press star two if he would like to turn with your first question from the queue.
Our first question today is coming from Alex Slagle of Jefferies. Please go ahead.
Thanks, Hey, Paul Congrats on the upcoming retirement.
[laughter] now you'll be around.
For a little bit so happy about that yeah no.
Thanks, Alex and I will be in.
I think oh.
This can be a very effective transition with with T. J and look forward to working with him in the next couple of months.
Giving us a.
A strong path forward, so, but you know I'm sure I'll see around somewhere for sure for sure Hope you get some time off but I guess with the transition and you hand over the reins to G. J I mean whats at the very top of your to do list. You know that you want to accomplish both just to ensure a smooth transition into <unk>.
'twenty three but also you have to finish up or see through specific initiatives that are.
That's really important to you.
Alex I think it's a couple of things are you know he's been a certainly G. J is familiar with the company. He's been on the board are the last three years.
Obviously very successful in a Texas roadhouse and at sea PK and at toward cheese.
We've already been spending time together talking about the business.
The impact that Donato has been having on it where we sit from a staffing perspective.
Taking a look at how are we going to manage the capital spend as we get into 2023.
First as we.
We do have a lot of levers that can move the business forward, where theres donaldo's, whether it's the digi.
Digital guests journey and the the whole digital ecosystem. So I think it's really.
The two of us working together.
Uh huh.
Where where are his views on the strategic thinking how does that influence the influence of the budget for 2023.
And then on our end.
Continuing to work hard on 2022, you know as I look at the.
The second quarter and it was a bit disappointing I won't.
You know a lot about that we sell at the same softening.
During the quarter that a lot of other brands did.
Think the a couple of things that are that we have done in reaction to that is commodities certainly plateaued at a higher rate than we had forecasted. So we originate we're gonna do pricing a pricing move in Q4.
We accelerated that and moved it up into very early Q3, but obviously it cannot influence.
The second quarter. We also quickly recognized <unk> six that things were softening.
In the third and the third week of <unk> seven we put out the 10 dollar gourmet meal deal to certainly.
Influence.
You know the business and it has worked well for us that our value perceptions or value sentiment has really grown over that time I think it had a nice influence on P. Eight getting out of the gate into Q3 and is continuing in into P. Nine.
And we're going to roll out happy hour here in a couple of weeks across the system to further influence that so you know the when I look at Q2 now the Miss was a bit of a softening on the topline, but more a more importantly at the as a commodity level and we've done the things that we need to do to.
Influence.
You know really the the operating margins as we get into Q3 and more specifically into Q4 so.
Certainly not.
Not backing off 2022 at all I think we've done the things that address the misses that we had in Q2, but in the meantime, obviously.
T. J start September six we will work side by side to not only be addressing that but set him up for success as we go into 2023.
Okay. That's helpful could could you break down the monthly same store sales and if you have it how the relative gap versus the peer benchmark track through the quarter.
Yeah.
Alex and P. Five I think in comparison to 2021 we generated 11, 6% and P. Five 7% in P sex, 1.7% N P. Seven and then N P. Eight as Paula mentioned, we came in at about 4% and then in terms of the gas.
Up to the competition it ranged between three and 5% during the second quarter.
And then from a traffic perspective, we actually had a positive gap to black box for the quarter at one 6%.
Okay and did that gap hold the generally through the quarter or do you feel.
More pressure towards the end or any any takeaways, there went down a little bit, but it held pretty steady for the quarter. Okay. Do you happen to have those.
By month versus 19.
I do I do.
So for P. Five we were up seven 3%, which I believe we shared on the last conference call and then in peace sex, we were up 1% and in P. 73, 9% now between <unk> six and P. Seven there was some calendar.
<unk> surround I believe father's day that negatively impacted pes Saxon positively impacted piece of it. So there was a little bit noise up noise. There and then we came in at about 3% in P. A.
Got it.
Okay and on.
On the reduction of the guidance the EBITDA guidance is it.
I guess, how much of that is commodities and you know if there are other pieces I mean is it incremental labor pressure and it's a war.
Some sales caution baked in there.
Yeah, it's it's primarily commodities and sales caution and the related flow through associated with that sales caution.
Yeah, Alex we've taken a conservative approach to it.
Taking a look at basically using the run rates and.
Now that we've seen in trying to.
You know trying to take in account that there is still volatility in the macro environment and.
Not not trying to get too far over our skis.
But.
I think as Juan says.
Pleased to see.
The rebound that we've been seeing in PAA from a sales perspective.
Yes.
The <unk>.
Ability to go ahead and take some price and move that up much earlier into Q3, it should be a help to us.
Makes sense I'll pass it along thanks.
Thank you. The next question is coming from Todd Brooks of the Benchmark Company. Please go ahead.
Hey, Thanks, and Paul Best of luck in your future.
She travels here hope you're enjoying it and it's fulfilling as these last three years I'm sure for you. So.
So.
Well. Thank you Todd appreciate it.
A few quick questions just kind of jumping on with Alex which is exploring on if we look at the commodity thinking for the balance of the year and then you made a comment at the end of your prepared remarks talking about.
A distributor shift that kicks in in Q4 and that you're expecting cogs to be up sequentially can you kind of give us a map.
Of of how you see Cogs tracking kind of Q3 and Q4, so that we can size with that one.
Whatever the uptake would be for the distributor, but if youre expecting any improvement in kind of Q3 from Q2 levels.
Yes, I would say and in terms of Q3, we do expect improvement and certainly part of that improvement is the two percentage points in price. We took at the beginning of the third quarter.
And then it will tick up in the fourth quarter two results in mid double digit inflation for the fall here.
Okay. Okay, great that's helpful and then.
You talked about the basket.
I think he said it was up what was 19% in the quarter and thought that number right.
The commodity basket.
That's correct, 19% for the second quarter that was up a little bit from the first quarter and then we will sequence really decline in the third quarter. Then again declined in the fourth quarter as we start to lap over some of the inflation, we experienced last year.
Okay. Okay. That's helpful. Thanks, and then Paul.
Paul can you talk to kind of.
The slowdown that you saw in <unk>.
Uh huh.
Kind of heading out of PS six into PS seven was it purely traffic driven customers that were still showing up to the restaurant, where they still building trucks in the same way and behaving the same way where did you see and how is the the slowdown manifesting itself.
It was mainly traffic driven.
And so.
That's why we switched a little bit.
The bar a little bit from the <unk> playbook L. T O 's, we're still performing well, which has been a driver of check, but we thought that as we saw traffic slowing we needed to.
Frankly address the value part because we thought that consumers were feeling pinched from the inflation that's why.
Back into P. Seven we rolled out the.
$10 gourmet meal deal, which so far has Uh huh.
It has performed well for us and we think it's a strong high low strategy that Oh showcases the.
The value of Red Robin and we're certainly seeing it in the a and the numbers in terms of the value perceptions of the Red Robin brand have.
Definitely.
Move forward.
Versus.
The industry in and quite honestly, we're outpacing the industry right now.
Has the tenant as I mentioned it was a little late in Q2. It was two weeks left in the quarter.
It's really a reaction to.
So it kind of mid to mid <unk> six <unk> seven what we saw was a real.
Softening of sales.
Okay, Great and then the $10 offer how's it mixing relative to your expectations.
It's actually a little bit higher than expectations.
But it's also a and offer that still has a strong gross margin on it we're not we're.
We're not giving away the farm. So we're pleased with what it's doing to that but also its ability to.
To be a fairly strong gross margin player for us even at a $10 offer.
Okay, Great and then the two potential additional value promotions behind it that sounds like a happy hours teed up to call them and then you mentioned I think that I'm sure.
And long term as well.
Right happy hour will be rolled out.
This month.
And then lunch specials youll see a little further into the fall.
Okay, and then the same type of.
Margin neutrality type of if if you're migrating people to more of this value.
If you've got a very value based platforms, you're still fine with it from us.
I mean, one way to think about it I mean, we haven't we don't have certainly the strongest our liquor mix out there in the AR and the casual dining space. So.
Even though the happy hour, increasing the liquor sales should help us overall from a margin standpoint. So we're we're looking forward to that because we think it can continue to strengthen not only the value perception of the brand will strengthen the margin profile of the brand and Todd I would just add.
Now we also have the high end at the high low strategy, where we're giving guests every excuse to order our premium priced products that we can balance it.
On the promotions that we're doing.
We do see when people come in and order. The 10 dollar gourmet meal deal that a lot of them.
They do their own AD on it it really is about.
As Lynn mentioned, given the the consumer choice of how they want to spend their money.
Okay.
And then just a final quick one I know targeting 50 did not it was rolled out this year where are we in that process.
Is it kind of equally weighted across the year or is there a back half loaded element to this year's rollouts, yeah, it's roughly half and half Q2, and Q3, and we should be primarily or essentially completed by the end of Q3.
That's great Thanks, Glen and good luck Paul.
Todd.
Thank you, ladies and gentlemen, this brings us to the end.
A question and answer session I would like to thank.
Thank everyone for their participation and interest in Red Robin you may disconnect your lines or walk off the webcast at this time and enjoy the rest of your day.
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