Q3 2023 The ONE Group Hospitality Inc Earnings Call
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Speaker 1: Greetings and welcome to the one group third quarter of 2023 or needs conference call. At this time, all participants are in a lesson only mode. Brief question analysis session will follow the formal presentation. To ask a question, you may press start at one on a We are the right.
Greetings and welcome to the one group third quarter 2023 earnings Conference call. At this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation to ask a question you May Press Star then one on a touchtone phone.
Speaker 1: To withdraw your question, please press start and 2. As a reminder, this conference is being recorded. I would like now to turn the conference over to Tyler Roy. Please go ahead.
So its draw your question. Please press Star then two as a reminder, this conference is being recorded I would like now to turn the conference over to Tyler Loy Yang. Please go ahead.
Thank you operator, and Hello, everyone.
Speaker 2: Before we begin our formal remarks, I want to remind you that part of our discussion today will include forward-looking...
Before we get our formal remarks, let me remind you that part of our discussion today.
Forward looking statements.
Speaker 2: These forward-looking statements are not guaranteed with future performance and you should not sheer a graph.
These forward looking statements are not guarantees of future performance and you should not place undue reliance on them.
Speaker 2: These payments are also subject to numerous risk and uncertainties because actual results differ in the cheerleading.
These statements are also subject to numerous risks and uncertainties that could cause actual results to differ materially.
Speaker 2: We've also noted these four looking statements reflect our opinion only as of the day.
We'd also note that these forward looking statements reflect our opinions only as of the.
The data we have.
Speaker 2: We undertake no obligation to revise or publicly relieve any revisions of these four elements of the agreement.
Undertakes no obligation to revise or publicly really any revisions of these four.
In light of new information future events.
Speaker 2: We refer you to our recent SEC filings for a more detailed discussion of the risks that could impact our future operating results.
We refer you to our recent SEC filings for more detailed discussion of the risks that could impact our future operating results.
Condition.
Speaker 2: During today's call, we will discuss certain non-GAAP financial measures which we believe can be useful in evaluating our performance. However, the presentation of these measures or other information should not be considered neither of these measures.
During today's call, we will discuss certain non-GAAP financial measures.
Useful in evaluating our performance.
However, the presentation of these measures or other information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP reckon.
Speaker 2: For reconciliations of these measures such as adjusted EVA-DOV, adjusted net income,
Reconciliations of these measures such as adjusted EBITDA adjusted net income restaurant operating profit comparable sales and total food and beverage sales at owned and managed and licensed the GAAP measures along with a discussion of why we consider these measures useful.
Speaker 2: comparable sales, and total food and beverage sales with owned and managed and licensed units, the GAAP measures , along with a discussion of why we consider these measures useful. We believe these measures must be supported by a
You see our earnings release issued today.
With that I'd like to turn the call over to Daniel area.
Speaker 2: Thank you, Tyler, and hello everyone. We sincerely appreciate you joining us today and for your interest in the warm group.
Thank you Tyler and Hello, everyone.
We sincerely appreciate you joining us today and for your interest in the one group.
Speaker 3: First, I would like to express my gratitude to our amazing team members for their continued commitment to our mission.
First I would like to express my gratitude to our amazing team members for their continued commitment to our mission.
Speaker 3: which is to be the best restaurant in every market that we operate in by delivering exceptional and unforgettable guest experiences to every guest every time.
It used to be the best restaurants in every market that we operate in.
By delivering exceptional and unforgettable guest experiences at every guest every time.
Speaker 3: Their dedication gives me tremendous confidence in our ability to become the global leader in Voddani.
Their dedication gives me tremendous confidence in our ability to become the global leader in fact done.
Speaker 3: During the third quarter, total revenue grew 5.2% to 76.9 million, and our company owned revenue grew 6%, which was driven by our new restaurant openings over the past 12 months. We are on track.
During the third quarter total revenue grew five 2% to $76 9 million and our company owned revenue grew 6%, which was driven by our new restaurant openings over the past 12 months.
We are on track with our long term growth objectives.
Speaker 3: In October , we opened a new SDK in Charlotte, North Carolina, and a new corner grill in Phoenix, Arizona, our third corner grill in the area.
October we opened a new SDK in Charlotte North Carolina and in.
You've kind of dwell in Phoenix, Arizona, our third well in the area.
Speaker 3: Both residents are off to strong starts, and they bolster our belief in the long-term EBITDA and armant's power of our developing pipeline as we demonstrate industry leading ROI's for our shovel.
Both restaurants are off to strong starts and they bolster our belief in the long term EBITDA and earnings power of our development pipeline as we demonstrate industry, leading rois for our shareholders.
Speaker 3: Plan to open two new SDKs in the fourth quote of this year, and three additional SDK told us the beginning of next year, one of which will be a last.
We plan to open two new application in the fourth quarter of this year and three additional SDK towards the beginning of next year one.
One of which will be a licensed location.
Speaker 3: We have established incredible flexibility to our pipeline, and we are now in a position to open restaurants in the cadence that meets the needs of the business.
We have established incredible flexibility to our pipeline and we are now in a position to open restaurants and the cadence.
The needs of the business.
Speaker 3: Despite the softening, sales environment are things for sales in two sequentially versus the second quarter.
Despite the softening sales environment, our same store sales improved sequentially versus the second quarter.
Speaker 3: Our consolidated comparable sales decreased 3% in the quarter, consisting of an increase of 1.1% of vulnerable, and a decrease of 5.5% at SDK.
Our consolidated comparable sales decreased 3% in the quarter, consisting of an increase of one 1% of Kona Grill and a decrease of five 5% SDK.
Speaker 3: When compared to 2019, our pre-pandemic base year the validated comparable sales increase 41.7%. Reflecting the increase of 61% at SDK, consisting of a 40% increase in traffic, and a 20% increase in average check, and a 23.7% increase at 1.0 growth.
When compared to 2019.
Our pre pandemic base year consolidated comparable sales increased 41, 7%.
That's an increase of 61% of SDK.
Testing of a 40% increase in traffic and a 20% increase in average check and a 23, 7% increase that's been a grill.
Speaker 3: Clearly, even against a more challenging backdrop in the near term, we have retained our market share increases at both brands.
Literally even against a more challenging backdrop in the near term we have retained our market share increases at both brands.
Speaker 3: As we look to the fourth quarter, our event bookings are building, and we have an incredible slate of sensational holiday and seasonal menu offerings planned.
As we look to the fourth quarter. Our event bookings are building and we have an incredible slate a succession of holiday and seasonal menu offerings flat.
Speaker 3: Our guests love to celebrate their holidays and special occasions with us, and our venues really come to life during the holiday season.
Our guests love to celebrate their holidays and special occasions with us in our venues really comes alive during the holiday season.
Speaker 3: We are excited about our lineup at both FBJ and Pinnethville for Thanksgiving, Christmas and New Year's Eve.
We are excited about our lineup at both ft canceling of well for Thanksgiving Christmas and New year's Eve.
Speaker 3: Along with holiday programming, we are laser focused on promoting our everyday value offerings at both SDK and Ponyville.
Allow me how was it programming we are laser focused on promoting our everyday value offerings at both SDK as well.
Speaker 3: We believe that our $3, $6, $9, a happy off-program is one of the most compelling in the industry as we offer similar owner offerings of our main menu that are attractive in true price point.
We believe that our $3 $6 nine dollar happy hour program is one of the most compelling in the industry as we offer similar culinary offerings as our main menu.
Practice entry price points.
Speaker 3: We are a sea of a lot to give the State Party accelerate and it's a key initiative for the company in this challenging sales environment.
We are seeing the velocity of the state part accelerate and it's a key initiative for the call.
In this challenging sales environment.
Speaker 3: Another exciting value layer is our 9-out menu, which features wine or bubbles, an appetizer, an entree such as a 14-ounce New York strip, sides and dessert for only $69 per person at that ticket.
Another exciting valley there is our nine out menu, which features wine or bubbles, an appetizer and entree such as a 14, asking outstripped sides and desserts for only $69 per person that that'd be good.
Speaker 3: We feature a similar offering for $39 per person at Cunabaloo.
We feature a similar offering for $39 per person at Kona Grill.
Speaker 3: We believe this to be one of the best values in the industry and our promoting it along with our happy hour throughout our digital marketing.
We believe this to be one of the best values in the industry and are promoting it along with our happy hour throughout our digital marketing efforts.
Speaker 3: Turning now to restaurant level margins, restaurant operating profit was 12.3% in the quarter compared to 13.1% in the prior year. In dollars, restaurant operating profit was flat year over year.
Turning now to restaurant level margins ration operating profit was 12, 3% in.
In the quarter compared to 13, 49% in the prior year.
In dollars Russian operating profit was flat year over year.
Speaker 3: During the quarter, we faced margin pressure due to our continued investments in labor for our new restaurant.
During the quarter, we faced margin pressure due to our continued investments in labor rational.
Speaker 3: because we have some of the highest average unit volumes in the restaurant industry. We prefer to open them with management and staff who have experience working at volume in our existing restaurant.
Because we have some of the highest average unit volumes in the restaurant industry, we prefer to open them with management and staff, who have experience working at volume in our existing restaurants.
Speaker 3: We anticipate this impact to lessen during the fourth quarter with the new store openings upcoming.
We anticipate this impact to lessen during the fourth quarter with the new store openings upcoming.
Speaker 3: Additionally, we continue to invest in our digital marketing channel to drive broad customer awareness and promote our just-in-time marketing efforts.
Additionally, we continue to invest in our digital marketing channel to drive broad customer awareness and promote our just in time marketing efforts. For example, during some of it is nice to 12 days in New York City, we were able to drive traffic to our beautiful new patio at SDK mess down in her wonderful rooftop.
Speaker 3: For example, during some of the nice fall days in New York City, we were able to drive traffic to our beautiful new patio at STK Midtown and our wonderful rooftop at STK Downtown.
The SDK downtown.
Speaker 3: While this investment may have a short-term impact on margins, it's allowed us to retain the robust market share we've gained over the last several years.
While this investment may have a short term impact on margins.
It allowed us to retain that we lost market share we've gained over the last several years.
Speaker 3: Going forward, we are committed to our sales growth and margin driving initiatives.
Going forward, we are committed to our sales growth and margin driving initiatives.
Speaker 3: Number one, continue to delight our guests at both SDK and Cornell Royal with exceptional and unforgettable experiences.
Number one continue to delight our guests at both SCE can swing up well with exceptional and unforgettable experiences.
Speaker 3: This is our mission and focus and what allows us to differentiate ourselves from the competition.
This is our mission and focus and what allows us to differentiate ourselves from the competition.
Speaker 3: Our fantastic operating team create the fun and vibe dining experiences that are truly memorable and our customer satisfaction metrics continue to be the highest we've seen at the company.
Fantastic operating team create the fun and vibe dining experiences that are truly memorable and our customer satisfaction metrics continues to be the highest we've seen at the company.
Speaker 3: Number two, keep investing in digital marketing. Focus on our everyday value offerings such as brunch, borrow lunch, happy hour, night out, and late night happy hour.
Number two keeping investing in digital marketing focus on our everyday value offerings, such as branch hour lunch.
Lunch happy hour, Matt out in late night happy hour.
Speaker 3: We are very focused on driving attention and awareness to our value layers as we believe they are some of the best in the industry, especially to those who may be more wild with confidence.
We're very focused on driving attention and awareness through our valley layers. As we believe there are some of the best in the industry, especially to those who may be more wallets caution.
Speaker 3: Number three, optimize our pricing relative to our peers and inflationary ad loans.
Number three optimize our pricing relative to our peers and inflationary headwinds.
Speaker 3: We've been conservative in our pricing and plan to take a bit more pricing heading into the holiday season.
We've been conservative in that pricing and plan to take a bit more pricing heading into the holiday season.
Speaker 3: about 3% to 4% at each brand to offset the persistent inflation that we've seen across the industry.
About three years to 4% at each brand to offset the persistent inflation that we've seen across the industry.
Speaker 3: The high customer satisfaction scores discussed earlier give us confidence in our pricing strategy.
The high customer satisfaction scores discussed earlier give us confidence in our pricing strategy.
Speaker 3: Number four, open new restaurants at a consistent pace for the foreseeable future.
And then before opening new restaurants at a consistent pace for the foreseeable future.
Speaker 3: Number five, improve restaurant operating profit and overall profitability without impacting the guest experience.
Number five improved restaurant operating profit and overall profitability without impacting the guest experience through mainly focusing on purchasing efficiencies for both food and operating supplies maximizing productivity to smart scheduling and evaluating third party vendor relationships.
Speaker 3: through mainly focusing on purchasing efficiencies for both food and operating supplies, maximizing productivity through smart scheduling, and evaluating third-party vendor relationships and reducing travel costs.
And reducing travel costs.
Speaker 3: Make no mistake, we understand fully the need to improve restaurant level margins, and we plan to do so.
Mistake, we understand fully the need to improve restaurant level margins and we plan to do so.
Speaker 3: Moving on to development, during the second half of the year, we continue to execute on our robust unit growth.
Moving on to development during the second half of the year, we continue to execute on our robust unit growth.
Speaker 3: In July , we opened a corner grow in Riverton, Utah, and as previously discussed in October , we opened an SDK in Charlotte, North Carolina, and a corner grow in Phoenix, Arizona in a Desert Ridge marketplace.
In July we opened a corner grown rather can use time and as previously discussed in October we opened an SDK in Charlotte North Carolina in the corner of the World in Phoenix, Arizona, and the Desert Ridge marketplace.
Speaker 3: For the full year, we expect to add eight new units, of which six are already open.
For the full year, we expect to add eight new units of which six are already open.
Speaker 3: For the remainder of the year, we are on track to open two new company-owned SDKs in the following cities.
For the remainder of the year, we are on track to open two new coffee NSE caves.
In the following cities.
Speaker 3: Boston, Massachusetts on Berkeley Street in the Back Bay and Suffolk City, Utah in the west border across the street from the Delta Center.
Massachusetts on Berkeley Street in the back Bay, and Salt Lake City, Utah, and the worst quarter across the street from the data Center.
Speaker 3: Early in 2024, we plan to open a company on SDK in Washington, BC at the Maryok Grand Marquis, a company on SDK in the adventored floor at the adventored mall and a licensed SDK.
Early in 2024, we plan to open a company own SDK in Washington D. C. At the Marriott, Marquis a company or an SDK in having tariff, Florida at the Aventura mall and a licensed SDK.
Speaker 3: Over the long term, we view our addressable market as 200 SDK restaurants, globally and 200 corner broals domestically, with vaccine class ROIS of between 40 and 50%.
Over the long term, we view our addressable market is 200 S. Teekay restaurants globally, and 200, Kona grills domestically with best in class Rois of between 40 and 50%.
Speaker 2: There is clearly a long runway of opportunity ahead of us that we are just beginning to act on. Now I'll turn the call over to Tyler. Thank you, Manny. Let me start by discussing our third quarter financials.
There is clearly a long runway of opportunity ahead of US that we are just beginning to act on them now.
Now I'll turn the call over to Tyler.
Thank you Manny.
Let's start by discussing our third quarter financials in greater detail.
Total GAAP revenues were $76 9 million, increasing five 3% from $73 million for the same quarter last year.
Speaker 2: increasing 5.3% from 73 million for the same order last year.
Speaker 2: We did our total revenue because our own restaurant that revenue is a 73.7 million, which increased 6% from...
Alluded in our total revenue is our owned restaurant net revenues of 73 7 million.
Which increased 6% from $69 5 million for the same quarter last year.
Speaker 2: The increase in revenue is primarily attributable to the opening of four owned venues since August 2022.
The increase in revenue is primarily attributable to the opening of four owned brand new since August 2022.
This was partially offset by a 3% decrease in comparable sales.
Speaker 2: Consolidated comparable sales were 41.7% compared to 2019.
Consolidated comparable sales were 41, 7% compared to 2019, our pre pandemic there sure.
Speaker 2: Management license and incentive revenues were $3.2 million, decreasing $8.6 billion.
Management license.
And as for $3 2 million decreasing eight 6%.
In the third quarter of 2022.
Speaker 2: The decrease was primarily driven by lower revenues at a managed cost.
The decrease was primarily driven by lower revenues, a managed property in London, England.
Speaker 2: Owned restaurant cost of sales as a percentage of owned restaurant net revenue improved 20 basis points to 24.7 percent.
Owned restaurant cost of sales as a percentage of owned restaurant net revenue improved 20 basis points to 24, 7% third quarter of 2023.
Speaker 2: from target 24.9% in the prior year, primarily due to menu mix management, pricing, and operational cost reduction initiatives. Partially upset by increased commodity prices. No interest on operating expenses as a percentage of the...
Compared to 24, 9% in the prior year, primarily due to menu mix management pricing and operational cost reduction initiatives.
Partially offset by increased commodity prices.
Owned restaurant operating expenses as a percentage of owned restaurant net revenue increased 90 basis points to 62, 9% in the third quarter of 2023 from 62% in the third quarter of 2022, primarily due to higher labor costs, driven by wage inflation and investments in anticipation road.
Speaker 2: primarily due to higher labor costs driven by wage inflation and investment in anticipation growth.
Increased marketing expenses and general operating cost inflation.
Speaker 2: Restaurant operating profit was 12.3% for the third quarter of 2023 compared to
Restaurant operating profit was 12, 3% for the third quarter of 2023.
Third to 13, 1% in the third quarter of 2022.
Speaker 2: We're making significant investment in growth, which impact the margin. But as many discussed earlier, we have significant cost reduction in...
We're making significant investments in growth, which impact the margin.
As Manny discussed earlier with significant cost reduction initiatives in place.
Speaker 2: On a total reported basis, general administrative expenses were $7.3 million compared to $6.4 million in the prior year. It increased with the favorable to increased stock base compensation expense and additional investments required to have a new restaurant opening. Compared to the previous border, general administrative expenses.
On a total reported basis general and administrative expenses were $7 3 billion compared to $6 4 million in the prior year.
The increase was attributable to increased stock based compensation expense and additional.
Investments required ahead of new restaurant openings.
Compared to the previous quarter general and administrative expenses and adjusted General and administrative expenses improved 0.7 million <unk> 8 million respectively.
The impact of many of the initiatives, we already have in place.
When adjusting for stock based compensation adjusted General and administrative expenses was four 6 million in the third quarter of 2023, and $5 4 million in the same quarter last year.
Speaker 2: Just as General and administrative incentives were six million in third quarter of 2023. Hopefully.
Speaker 2: Pre-opening expenses work 3.1 million, compared to 2.7 million in the prior.
Preopening expenses were $3 1 million compared to $2 7 million in the prior year.
Speaker 2: The increase was related to payroll, training, and non-cast pre-open rent for Cone Grove River Dinn, which over the July 2020.
The increase was related to payroll training and non cash pre opening rent for Kona Rover, Virginia, which opened in July 2023, or SDK, Charlotte and Kona Grill, Phoenix, which both opened in October 2023.
Speaker 2: for SDK Charlotte and Conan Gopinix, which both opened in October 23. Christchurch as
And for SDK, and Kona Grill restaurants currently under development.
Speaker 2: Interest Expansals 1.7 million and a third quarter of 2023 compared to 0.4 million.
Interest expense was $1 7 million in the third quarter of 2023 compared to <unk> 4 million in the third quarter of 2022.
Speaker 2: Increases the driver by increases in our outstanding balance and benchmark rate.
The increase was driven by increases in our outstanding balance and benchmark rate year over year.
Speaker 2: In contact, benefit with your 1.4 million in the third quarter of 2023. And for this.
Income tax benefit was <unk> 4 million in the third quarter of 2023, and <unk> 3 million in the third quarter 2022.
Speaker 2: Net loss attributable to the one group hospitality aim was 3.1 million or 10 cents net loss per share. Compared to a net...
Net loss attributable to the one group hospitality.
One 1 billion or 10 net loss per share compared to a net income of half a million dollars in the third quarter of 2022 or once that net income per share.
Speaker 2: Adjustment net loss is 2.4 million or 8 cents of a adjusted net loss per share. Compared to an adjusted net income of two.
Adjusted net loss was $2 4 million or eight adjusted net loss per share compared to an adjusted net income of $2 4 million in the third quarter of 2022 or seven income per share.
Speaker 2: Adjusted either down for the third quarter, a true goal of one group hospitality, will stay $2.12.
Adjusted EBITDA for the third quarter attributable to the one group hospitality was $6 2 million compared to $7 1 million third quarter 2022.
Speaker 2: We have included a reconciliation of the Justin P. the dot and the Justin Nettings and the tables on our third quarter. 2020.
We have included a reconciliation of adjusted EBITDA and adjusted net income in the table that our third quarter 2023 earnings release.
Speaker 2: During the third quarter, we purchased approximately half a million shares.
During the third quarter, we repurchased approximately half a million shares of our common stock in total we have purchased two 2 million shares or approximately 7% of our outstanding shares under our buyback program.
Speaker 2: total we have surged 2.2 million shares or approximately 7% of our outstanding shares under our bi-vacc program.
The repurchase program was completed in October 2023.
Speaker 2: Turning to liquidity, we finished the quarter with 22.1 million in cash. Now, 10.4 million available under our...
Turning to liquidity, we finished the quarter with $22 1 million in cash and a $10 4 million available under our revolving credit facility subject to certain conditions.
Speaker 2: During the third quarter, we paid large amounts for restaurant who will be opening later this year and the first part.
During the third quarter, we paid large amounts for restaurants will be opening later this year and the first part of 2024.
Speaker 2: The fourth quarter of our highest revenue and adjusted even a quarter, and typically quarter will regenerate significant cash which we plan to build. We believe that we have a liquidity necessary to fund our futures.
Our fourth quarter is our highest revenue and adjusted EBITDA quarter is typically a quarter, where we generated significant cash, which we plan to drill.
We believe that we have the liquidity necessary to fund our future development plans.
Now I would like to provide some forward looking commentary regarding our business.
Speaker 2: This is commentary subject to Brisbane uncertainties associated with four of those enc?ments.
This commentary is subject to risks and uncertainties associated with forward looking statements as.
As discussed in our SEC filings.
Speaker 2: We've always remind our investors the actual numbers and timing of new restaurant openings for any given
We as always remind our investors the actual numbers and timing of new restaurant openings for any given period.
Speaker 2: It says that to a number of factors outside the company's control, including macro-economic.
Subject to a number of factors outside the company's control, including macroeconomic conditions.
Speaker 2: whether factors under control of landlords, contractors, licensees, and regulatory and...
Weather factors under control of landlords contractors, licensees and regulatory and licensing authorities.
Speaker 2: Based on the information available now and the expectations as of today, we are updating the following financial targets for 2023. Beginning with revenues, we project our total graph revenues of between 335 and 345 million. Managed licensing and benefit revenues are expected to be between 14.5 and 15 million. Total operating expenses as a percentage of the relevant rest on that revenue is 84 to 83%. andar, Now we have a little DNA excluding Stockade terms.
Based on the information available now and the expectations as of today, we are updating the following financial targets for 2023.
Beginning with revenues, we project, our total GAAP revenues of between 335 and $345 million.
Manage license and incentive fee revenues are expected to be between 14, five and 15.
Total operating expenses as a percentage of owned restaurant net revenue of 84% to 83%.
Total G&A, excluding stock based compensation of approximately $26 million to $27 million.
Adjusted EBITDA of 40 to 45 million.
Restaurant Preopening expenses of approximately $8 million in it.
<unk> income tax rate of between 5% and 10%.
Total capital expenditures net of allowances received from landlords of approximately two 5% of company owned revenue and approximately $4 million for New company owned brand new.
And finally, we plan to add eight new venues in 2023.
Speaker 2: I will now put the call back to me. Thanks.
I'll now turn the call back to me.
Thank you Tyler and thank you all for your time today.
Speaker 3: Let me conclude by saying we are in the early stages of our long-term growth strategy, as we continue to build a portfolio of high-volume brands with compelling returns for our shareholders. Thank you all for your interest.
Let me conclude by saying we are in the early stages of our long term growth strategy as we continue to build a portfolio of high volume brands with compelling returns for our shareholders.
Thank you all for your interest in the one group is.
Speaker 3: I always say none of this would be possible without the fantastic support of our team-mate to bring our mission of great execution to life every day.
Is that I always say none of this would be possible without the fantastic support of our teammates who bring our mission of great execution to life every day.
Speaker 3: We have some exciting times ahead and we'll be opening a lot of restaurants in the near future. And I look forward to seeing you all out there.
We have some exciting times ahead, and we will be opening a lot of restaurants in the near future and I look forward to seeing all out there.
Speaker 3: We appreciate everyone joining us on the call today. Thou an hour are happy to answer any questions that you may have, operator. Get all the information in contact. F Sundance andsoftware.
We appreciate everyone joining us on the call today.
And I are happy to answer any questions. They may have operator.
Thank you.
Well now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone.
Speaker 1: To ask a question, you may press star-than-1 on a gestone phone. If you're using speakerphone, please pick up your hand set before pressing the
Is that a speaker phone please pickup your handset before pressing the keys if at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.
Speaker 1: If at any time your question has been addressed and you would like to to withdraw your question, please press star then two. At this time, we'll close them in terms of
At this time, well pause momentarily to assemble our roster.
Speaker 1: The first question comes from Joshua Long with Stevens. Please go ahead. Go ahead.
The first question comes from Joshua long with with Stephens. Please go ahead.
Great. Thank you for taking my question.
Speaker 4: Man, it was curious if you could level set kind of what you saw through the quarter, how that managed, how that resulted versus your expectations and maybe touch on just the overall strength of your core consumer. Look at the end of the day.
Maybe I was curious if you could level set kind of what you saw through the quarter, how that manage rather resulted versus your expectations and.
Maybe touch on just the overall strength of because of your core consumer.
Speaker 4: Volume's still very strong, but then there's been a lot of discussion out in the industry in terms of just where the consumers at their level or kind of appetite for engaging in the restaurant industry, but it feels like you're continuing to see some strength in your concept. So just curious if you could provide some perspective from how you see the consumer in the current environment.
At the end of the day volume is still very strong, but then there's been a lot of discussion out in the industry in terms of just where the consumers at their level or kind of appetite for engaging in the restaurant industry, but it feels like youre continuing to see some strength in our in your concepts. So just curious if you could.
Provide some perspective from how you see the consumer in the current environment.
Thanks, Josh.
Speaker 5: I'll answer this way. You know, I'll break out, you know, Kunagro in the quarter, we were plus one one in same store sales.
I'll answer this way you know I'll break out Kona grill.
In the quarter, we were plus one one and the same store sales.
Speaker 5: We were actually up on checks in the quarter, so we were very encouraged by that, so there was a strong performance from a traffic perspective.
We were actually up on checks in the quarter. So we were very encouraged by that so there was a strong performance from a traffic perspective.
Speaker 5: in the quarter for Kona Grille and we also had pricing in there in a neighborhood of seven points. We did see though in the concept trading down so we clearly from a PMIX perspective.
In the quarter for Kona Grill, and we also had a pricing in there.
And in the neighborhood of seven points, we did see though.
And the concept trading down so we clearly from a <unk> perspective, we're.
Speaker 5: We're seeing the customer trade down, you know, the items that they're buying when they come to the restaurant.
We're seeing the customer trade down.
The items that are buying when they come to the restaurants, and then SDK, we were down about 558 on checks.
Speaker 5: And then SDK, we were down about 5.8 on checks. We had pricing of a-
We have pricing of about six five years or so for the quarter. So we also did see a trade down with the SDK consumer So I would say the broad trend was.
Speaker 5: five or so for the quarter. So we also did see a trade down with the SDK consumer. So I would say that the broad friend was
Speaker 5: You know, relatively solid performance on traffic for both brands, but clearly the phenomenon now happening with the consumer, the pieces we've seen in our restaurant has been trading down on the...
Relatively solid performance on traffic for both brands, but.
But clearly the phenomenon now happening with the consumer the places we've seen it in a restaurant that's been trading down on.
On the.
Speaker 5: on the items purchased in the restaurant. In terms of day of the week trend, I think I've reported over time that we still see strong performance on Fridays and Saturdays.
On the on.
The items purchased in the restaurant in terms of day of the week trend I think I've reported over time that we still see a strong performance on Fridays and Saturdays.
Speaker 5: in the restaurants and still the most more challenged days in terms of customers is Monday through Wednesday so those I kind of like the relative
In the restaurants and still the most more challenged days in terms of customers is Monday through Wednesday. So those are kind of like the relative.
Speaker 5: you know trends that we see in the consumer and going into the fourth quarter, our emphasis is value. So you'll notice from my
Trends that we see in the consumer end.
Going into the fourth quarter.
Our emphasis is value so you'll notice from my prepared statements there that I believe value plays a big role in the current environment. So our focus will be on our happy hour 369, and then as night out.
Speaker 5: prepared statements there that I believe value plays a big role in the current environment. So our focus will be on our happy hour, three six nine and then as night out and at the $69 price point and $39 price point for Kona Grille. So we're being proactive. We've been proactive with value layers not for over a year. So we're we're expecting to leverage that in the fourth quarter. Great.
At the $69 price point and $39 price point for Kona Grill. So we're being proactive we've been proactive with valley layers now for over a year. So we are we expecting to leverage that in the fourth quarter.
Great. That's helpful. And then when do we think about just the strong value offering that you.
Speaker 4: have had in place and then contextualize that with some of the trade down you've seen. Where are you seeing the trade down?
Had in place.
Contextualize that with some of the trade down you've seen where you think the trade down is it broad based or.
Speaker 4: You also talked about the value layers and the importance there. That seems like a steady part of the messaging. I'm curious how you work with your digital marketing or messaging to help elevate and draw awareness to that going forward.
Are you you know you also talked about the value layers and the importance there that seems like a steady part of the messaging just curious how you work with your digital marketing or kind of messaging to help elevate to draw awareness to that going forward.
Speaker 5: Yeah, I mean, I think if you look at our digital strategy for, you know, frankly, for the last two years, it's been focused on the experience, it's been focused on premium products. We've highlighted a lot of the premium experiences in the restaurants. If you look at our digital and more of our messaging today, we are hitting the messaging more directly with price point. For instance, we have marketed happy hour, you know, in the last
Yeah, I mean, I think if you look at our digital strategy for frankly for the last two years, it's been focused on.
The experience it's been focused on premium products, we've highlighted a lot of the premium experiences in the restaurants, if you look at our digital.
And so more of our messaging today, we are hitting the messaging more directly.
Price point for instance, we have marketed happy hour and the <unk>.
Speaker 5: 18 months, but we generally promote a just happy hour, whereas if you look at our current
Last 18 months, but we generally promoted just happy hour, whereas if you look at our current collateral materials. We're a lot more clearer that it's $3 $6 $9 or so so we believe that price point has become a critical with the only caveat on that is that the price point is important but the experienced.
Speaker 5: collateral materials, we're a lot more clear that it's $3, $6, $9. So what we believe that price point has become critical, with the only caveat on that is that the price point is important, but the experience still trumps anything. So we do make sure that we provide great products, that is kind of what we do in the rest of the menu at those price points. So it's not just in providing the price point, but it's really providing the great products and great experiences that those other ...
Trumps anything so we do make sure that.
We provide great products.
That is kind of what we do in the rest of the menu at those price points. So it's not just in our providing the price points, but it is really providing the great products and great experiences that those are the price points.
Speaker 4: The last one for me, keep talking about the new unit or the environment for opening new units.
Okay, and then last one for me can you talk about the new unit or the environment broken a new unit.
Speaker 4: You've gotten a couple open here, several open here to date, you've got a couple more in the pipeline for this year and then thinking out into next year as well.
You've got a couple of open here.
We're hoping here year to date, you've got a couple more in the pipeline for this year and then thinking out into next year as well.
Speaker 4: permitting kind of delays, how have those been trending and what's the overall environment that looks like from a new unit development perspective for your brain?
Permitting delays have how have those been trending and what's the overall environment look like from a new unit development perspective for your brands.
Speaker 5: Yeah, I mean, I think just in general, the construction environment, as many people have reported, is more complex. I think our strategy has been to put as many projects in process.
Yeah, I mean, I think just in general the construction environment as many people have reported as is more complex I think our strategy has been to put as many projects in process.
Speaker 5: kind of priming the pump with a number of projects. I think we've been doing that now for the last 12, 14 months, really, you know, lining up the amount of projects in the pipeline.
The pump with a number of projects I think we've been doing that now for the last 12 14 months really lining up the amount of projects in the pipeline.
Speaker 5: And I think we're not aware at the point where we have plenty of alternatives within the pipeline that it's more about us picking and choosing which projects we want to bring on. And it's really about prioritizing which one we want to bring on. So for instance, as you probably see from the pipeline, we have a very exciting group of
And I think we're not we're at the point, where we have plenty of alternatives within the pipeline that it's more about us picking and choosing.
Which projects we want to.
To bring on and it's really about prioritizing, which one we want to bring on so for instance, as you probably see from the pipeline. We have a very exciting group of SDK that we wanted to open up in the near future. So youll see that the pipeline right now the next four or five is.
Speaker 5: STKs that we wanted to open up in the near future. So you'll see that the pipeline right now the next four or five is
Speaker 5: is SDKs. And by the way, that's not because we're not delighted with KunaGrill, as a matter of fact.
As SD case and by the way that's not because we're not delighted with Kona grill as a matter of fact, our desert Ridge Kona Grill, which we just very recently opened has already jumped up to the top in revenue in the chain or in the group. So we're super excited about that and I think that really speaks to the quality.
Speaker 5: our desert uh... corner world which we just very recently opened is already jumped up to the top in revenue and the chain or in the group so we're super excited about that and and i think that really speaks to the quality
Speaker 5: of the real state that we've gotten to the pipeline in the last couple of years. So we're still super excited about the quality of the pipeline, but one of the things you'll hear is talk a lot more about is just flexibility and the opportunity to pay.
The real estate that we've gotten to the pipeline in the last couple of years. So we're still super excited about the quality of the.
The pipeline, but one of the things Youll hear us talk a lot more about is just flexibility and the opportunity to pace.
Speaker 5: the openings at the pace that feels comfortable and right for us because obviously you always have to balance uh... you know the financial resources and the human resources when you going through your growth so it's really just uh... you know us keeping pace
The openings at the pace that feels comfortable and right for us because obviously you always have to balance.
The financial resources and the human resources when you go into your growth. So it's really just us.
Keeping pace and making sure that we're balancing those two factors in terms of the overall environment.
Speaker 5: and making sure that we're balancing those two factors. In terms of the overall environment, permitting is still challenging, so there's nothing really liking up on that side of the development, and construction is expensive. Labor is a primary input.
Permitting is still challenging so theres nothing really lightening up on on that side of the development and construction is expensive labor is a primary input into the restaurants that we build so in the last 24 months, we certainly have seen the cost of labor within the construction.
Speaker 5: into the restaurants that we built. So in the last 24 months, we certainly have seen the costs of labor within the construction.
<unk>.
Speaker 5: builds going up. So it's certainly something that we keep monitoring very well. And obviously the way to get through a labor in construction projects is to shorten the construction cycle so that you get in, get out of...
Builds going up so it's certainly something that we keep monitoring very well and obviously the way to get through.
Our labor and construction projects is to shorten the construction cycles. So that you get in get out of building. The site. So you don't stretch out the labor within the construction cycle. So so those are kind of like the two big items within that development cycle that we are managing very closely permitting as well as metal.
Speaker 5: building the site so you don't stretch out the labor within the construction cycle So you know, so those are kind of like the two big items within that development cycle that we we're managing very closely permitting and as well as managing a length of project so that we get the best in labor
Managing a link to project, so that we get the best and labor.
Thank you.
Thanks, Josh.
Speaker 1: Next question comes from Nick Satyane with WhiteBush Security.
Next question comes from Nick <unk> with Wedbush Securities. Please go ahead.
Speaker 6: Hey, thank you. You're a little margin-guided up to implies around 20%.
Hey, Thank you.
Yeah your unit level margin guidance.
Implies around 20%.
Speaker 6: in Q4, just given the the leverage you've seen here today, how much confidence do you have enough?
In Q4.
Just given the deleverage you've seen year to date.
How much confidence do you have in that sort of.
Speaker 6: You know, very high 19s, well 20% type of, you know, of a margin.
Hi, very high <unk> low 20% type of margin in Q4.
Speaker 5: So, they're great questions. So, the items that...
Yeah. So great question. So the items that I would call the positives leading into the quarter into the margin. One is we did take.
Speaker 5: You know, I would call the positives leading into the quarter, into the margin one is we did take
Speaker 5: pricing, the holiday pricing, just actually this week. So I think the higher pricing by definition should help with the margins and we typically put our holiday menus in place.
Pricing how the pricing.
Just actually this week, so I think the higher pricing.
Definitions should help with the margins and we typically put our holiday menu is in place in the third week of November.
Speaker 5: In the third week of November , we decided to do a little earlier this year, so I think that helps with the margins. I think the next thing that helps
Remember, we decided to do a little earlier this year. So I think that helps with the margins I think the next thing that helps with the margin is that we've taken a significant amount of people from existing restaurants.
Speaker 5: where the margin is that we've taken a significant amount of people from existing restaurants.
Speaker 5: and we're moving them now to the new restaurant so that takes pressure off
We're moving them out to the new restaurants, so that takes pressure off.
Speaker 5: having possibly duplicate positions within the restaurant. So that helps with the labor side in the restaurant.
Having possibly duplicate positions within the restaurants, so that that helps with.
On the labor side and the restaurants.
Speaker 3: I think Tyler mentioned that we've done a significant amount of initiatives in supply chain items like paper and stuff like that. We kind of
I think Tyler mentioned.
We've done <unk>.
The amount of initiatives and in supply chain items like paper and stuff like that we kind of brought down a little bit the spec on the paper that we use in and really took advantage of it may be more of a size and paper purchasing so we're doing a lot of things within the ops.
Speaker 5: brought down a little bit the spec on the paper that we use and really took advantage of maybe more of our size.
Speaker 5: in paper purchasing. So we're doing a lot of things within the ops.
Speaker 5: costs that probably will be very helpful. And I just generally, you know, being very careful with scheduling labor in the slower weeks within the quarter, although it's a really good quarter for us.
Costs that probably will be very helpful and just generally.
Being very careful with scheduling labor.
And the slower weeks within the quarter, although it's a really good quarter for US there is still a couple of weeks in there that are kind of low volume week, So just making sure that the.
Speaker 3: There's still a couple of weeks in there that are kind of low volume weeks, so just making sure that the teams...
The teams.
Speaker 5: manage the scapures very well there. Again, I think we also mentioned this. There's still had wins in some of the commodities beef is still something that we need to manage through and make sure that we offset that. But overall, you know, that is good. And then we are launching our premium lines like we do every year in the holidays. We're having some very cool items in our wide-goo promotion this year. So that should help.
Manage the schedules really well there again I think we also mentioned that there's still headwinds in some of the commodity beef is still something that we need to manage through and make sure that we offset that but but overall.
That is good and then we are launching our premium lines like we do every year in the holidays, we're having some very cool items in our Ah why do promotion this year, so that should help draw.
Speaker 3: you know drive both percentage and dollar margin during the holiday season. So those are kind of the things that I guess I gave you both plus isn't you know and maybe a head one in there in terms of how we look at the margin of forward quarter.
Drive both percentage and dollar margin.
During the holiday season. So those are kind of the things that I guess I gave you both pluses.
And maybe.
Headwind in there in terms of how we look at the margin of fourth quarter.
Speaker 6: Okay, thank you. And then just my last question, you guys mentioned that the comps sort of improved as a quarter progress. Would you mind telling us the month to month comp and then how you're doing in October in terms of SAMHSA?
Okay. Thank you and then just my last question you guys mentioned that the comps don't have improved as the quarter progressed would you mind, telling us the month to month comp.
And then how youre doing in October in terms of same store sales.
Speaker 7: i mean i think in general the you know i i would say you know the the month to month differences to us uh... to be honest with you weren't that significant in in our business model so i wouldn't say that uh... you know there were that significant uh... from that perspective and i saw you know tally went out anything on that no i mean there were relatively uh... consistent but we didn't see things the cultural improvement for the quarter
I mean I think in general.
I would say.
The month to month difference as to us.
To be honest with you werent that significant in our business model, So I wouldn't say that.
That's significant.
From that perspective.
Charlie you want to add anything on that no I mean, there were relative way.
Consistent but we did see some sequential improvement for the quarter.
Speaker 8: And then in terms of, you know, October , you know, I think our guidance really kind of lays out how we're feeling about the fourth quarter, relative to, to October and then the rest of the quarter as well.
And then in terms of October.
I think our guidance really kind of lays out how we're feeling about the fourth quarter.
Relative to.
To October and then the rest of the quarter as well.
Okay. Thank you very much.
Thanks, Nick.
Speaker 1: The next question comes from Mark Smith with Lake Street Capital. Please go ahead.
The next question comes from Mark Smith with Lake Street Capital. Please go ahead.
Speaker 9: Hi guys, first question for me. Just trying to balance, Mani, you've talked about some focus on kind of value here in Q4 that with taking some price increases on the menu. I don't know if you can quantify price increases, maybe where you're planning on taking that and how you...
Hi, guys first question for me just trying to balance.
Manny you talked about some focus on kind of value here in Q4 that with taking some price increases on your on the menu.
I don't know if you can quantify price increases, maybe where you're planning on taking that and and how you're still.
Speaker 9: and a value message with some of the price.
Value.
Message with some of the price increases.
Speaker 5: So, fantastic question Mark and then and probably one that helps us.
So fantastic question, Mark and probably one that.
Us.
Speaker 5: you know i guess really the focus and defining the the strategy is that and with happy hour and the other price point
I guess really the focus and defining the strategy is that it was happy hour and the other price points and then we have like 39, Kona Grill 69 of SDK is we really use that level.
Speaker 3: that we have like 39 at the corner grill 69 at SDK is we really use that level or those price points to really make the brand approachable to a much wider group of
Or are those price points to really make the brand approachable to a much wider group of demographics and so it's really an access to the brand.
Speaker 3: demographics and and so it's really an access to the brand opportunity for us though so we believe that you know there's that level of consumer that is sensitive and we want to make sure that we we give them an opportunity to still experience the brand but then the pricing strategy is really you know on the menu in terms of taking prices up is really targeted at the higher end of our demographic group
Opportunity for ourselves so we believe that.
There's that level of consumer that is sensitive and we want to make sure that we we gave them an opportunity to still experience the brand, but then the pricing strategy is.
On the menu in terms of of taking prices up is really targeted at the higher end of our demographic groups.
Speaker 5: that will participate on the bigger stakes and on the full dining experience. So, our strategy is really use valley layers to make a blunt super accessible to everybody. And then when you're in the restaurant, if you, because there's still a very, I think there's a high level of spinning on the higher end demographics that is still intact.
That will participate on the the bigger steaks and on a full dining experience. So so our strategy is really use valley layers to make.
<unk> Super accessible to everybody and then when do you own the restaurants, if you because there is still a very.
I think theres a high level of spending on the higher end demographics that is still intact and so having the higher price points and having also promotions with items like <unk> and other stuff that is frankly, very pricey kind of works really well. So it's a one two punch really.
Speaker 5: And so having the higher price points and having also promotions with items like YGOO and other stuff that is frankly very pricey kind of works really well. So it's a one-two punch, really bringing people in with the messaging, the marketing, the positioning, that we're an accessible brand. And then once you're in, it's giving the choice to the core customer of the brands to participate on the premium products within the brands.
Really bringing people in with the messaging the marketing the positioning that we're an accessible brand and then once you're in it's giving the choice to the core customer of the brands to participate on the on the on the premium products within the brands.
Okay.
Speaker 9: Next question was just private events and your outlook for private events here as we move into again a holiday season fourth quarter.
Hi.
Next question was just private events and your outlook for private events here as we move into kind of holiday season and fourth quarter.
On on total results.
Speaker 5: Yeah, I mean, our visibility right now, I mean, we tend to be about
Yes, I mean, our visibility right now I mean, we tend to be about 30% to 40% of the books built by this time of the maybe a little bit higher by today, but we do have a pretty good visibility.
Speaker 5: 30% to 40% of the books built by this time of the maybe a little bit higher by today, but we do have a pretty good visibility. You know, all reports right now is that we do have a very strong, strong book coming into the quarter.
All reports right now is that we do have a very strong strong book coming into the quarter. So.
Speaker 5: So I'm actually super pleased about that and now we're really focusing more on...
Actually super pleased about that and.
And now we're really focusing more around the holidays, which we dominate so thanks.
Speaker 5: the holidays which we dominate so you know Thanksgiving and Christmas day.
Thanksgiving and Christmas day.
Speaker 5: and also New Year's Eve, so really focusing on maximizing and really talking about managing capacity on those days. So I would say that right now the events book is really powerful and and as always the challenges is that we do have limited space in some of our restaurants so it's always about how you manage the capacity during
And also new year's Eve, so really focusing on Mac.
Maximizing and really it's all about managing capacity in those days. So I would say that right now the events book is really powerful and as always the challenge is is that we do have limited space in some of our restaurants. So it's always about.
How you manage the capacity during those four or five weeks in December that really make it happen. So so it's really about that but.
Speaker 5: four or five weeks in December that really make it happen, so.
Speaker 5: So it's really about that, but the early demand is strong and we still haven't done our full promoting on it yet, so there will be some promotions and marketing that we'll be doing in the next couple weeks that should even further that. So I'm pretty bullish on the event output for the quarter.
The early demand is strong and we are still we still haven't done a full promoting on it yet so there will be some promotions and marketing that will be doing in the next couple of weeks that should even further that so I'm pretty bullish on the event outflow for the quarter.
Okay.
Speaker 9: And last question from you, it was just looking at some of the cost cut in initiatives. You've talked about some, I'm not sure if I picked them up. Can you talk any more in depth about kind of, what areas you're looking at, where you expect this to hit, and then maybe if some of this is outside of the four walls of the restaurant and within that kind of corporate overhead.
And last question from me was just looking at some of the cost cutting initiatives you've talked about some I'm not I'm not sure if I picked them up can you.
Talk any more in depth about kind of.
What areas, you're looking at where you expect this to hit and then maybe if some of this is outside of the four walls of the restaurant and within kind of corporate overhead.
Speaker 10: Yeah, my business Tyler. So in terms of
Yeah, Mark this is Tyler.
So in terms of.
Speaker 7: Uh, you know, cost initiatives, I think, you know, really kind of walking down through the, you know, I think we're, we're really thinking through scheduling and smart scheduling in the restaurants, making sure that we're staffed appropriately for volumes by day of the week and by day part and then, you know, really other operating expenses around operating supplies.
Cost initiatives, I think really kind of walking down through the P&L I think we're really thinking through scheduling and smart scheduling in our restaurants, making sure that we're staff.
<unk> or volumes.
Dave when you can buy data are and then.
Really other operating expenses around operating supplies.
Speaker 7: and some of the costs that I think are embedded in the model that just are not as guest-facing and finding out, you know, optimization there. And then we talked about a little bit, but I think really from an overhead perspective,
And some of the costs I think are embedded in the model that just are not as guest facing.
And finding out.
<unk> optimization, there and then we talked about a little bit, but I think really from.
Overhead perspective.
Speaker 8: You know, some of the soft costs around travel and
Sure.
Some of the soft costs around <unk>.
Travel and.
Speaker 8: and some of the stop costs in GNA, just being really thoughtful of that doesn't.
And.
Some of the soft costs and G&A.
Just being really thoughtful about those expenses, yeah, I mean, I would say on the travel.
Speaker 5: Yeah, I mean, I would say on the travel, the big one for us is the cities that we travel to are not exactly inexpensive cities to travel into, particularly from a hotel and an airfare. So really instituting a lot of discipline around booking flights earlier and really making sure that we get the right rates with hotel. So just been very smart on travel and we did take some positions.
The big one for US is the cities that we traveled to are not exactly inexpensive cities to travel into a particularly from a hotel and air fare. So really instituting a lot of discipline around bookings twice earlier and really making sure that we get.
The right rates with wholesale so just being very smart on travel.
And we did take some positions.
Speaker 5: You know that we're not not critical within replace them on the GNA so there's been some you know a trition on GNA and Physicians that we've chosen on the short term to hold back on and and there's other soft things that we kind of We used to do secret shopper reports every week every restaurant
That's where non critical within replace them on the G&A. So there so theres been some attrition on G&A and positions that we've chosen on the short term to hold back on and.
And then there are the soft things that we kind of we used to do secret shopper reports every week every restaurant.
Speaker 3: We decided to go down to one every two weeks. So that cuts some costs out. So, you know, we've taken out.
We decided to go down to one every.
Every two weeks.
Cut some costs out so we've taken out.
Speaker 5: you know, some of our hot points in the restaurants, which are those booths that you take pictures and stuff like that. So we've trimmed out some of the things that we don't think impact guest experiences that help out the P&L.
Some of our pop.
Hop points in our restaurants, which are those boots, and you take pictures and stuff like that so we've trimmed out some of the things that we don't think impact guest experiences that that how part of the P&L.
Great. Thank you.
Yes.
Speaker 1: Thank you all very much. This concludes our question and answer session. I would like to turn the conference back over to many Hilario for any questions.
Thank you all very much. This concludes our question and answer session I would like to turn the conference back over to many hilarious for any closing remarks.
Speaker 3: Thank you for your continued interest under one group. We always appreciate you being here with us to listen to our story and what we're working on. And particularly in this fourth quarter, I look forward to seeing you all in our restaurants. Everyone have a great day.
Thank you for your continued interest under one group.
I always appreciate your being here with us to listen to our story and what we're working on and.
And particularly in this fourth quarter I look forward to seeing you all in our restaurants, everyone have a great day.
Speaker 1: This conference is now concluded. Thank you for attending today's presentation. You may now disconnect your lines. Have a good day.
This conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines have a good day.
Okay.
Speaker 11: happ.
[music].