Q1 2025 Good Times Restaurants Inc Earnings Call
Good afternoon, ladies and gentlemen, and welcome to the good times restaurants, Inc. Fiscal 2025 first quarter earnings call.
Speaker Change: I am Kari I'll guess, the company's senior Vice President of finance and accounting.
Speaker Change: By now everyone should have access to the company's earnings release, which is available in the investors section of the company's web site as.
Speaker Change: As a reminder, part of today's discussion will include forward looking statements within the meaning of federal Securities laws. These forward looking statements are not guarantees of future performance and therefore, you should not put undue reliance on them.
Speaker Change: These statements involve known and unknown risks, which may cause the company's actual results to differ materially from results expressed or implied by the forward looking statements.
Speaker Change: Such risks and uncertainties include among other things the market price of the Companys stock prevailing from time to time.
Speaker Change: The nature of other investment opportunities presented to the company.
Speaker Change: The disruption to our business from pandemic and other public health emergencies.
The impact of staffing constraints in our restaurants.
Speaker Change: The impact of supply chain constraints and inflation.
Speaker Change: The uncertain nature of current restaurant development plans and the ability to implement those plans and integrate new restaurants.
Speaker Change: Delays in developing and opening new restaurants, because of weather local permitting or other reasons.
Speaker Change: Increased competition cost increases are ingredient shortages.
Speaker Change: General economic and operating conditions.
Speaker Change: Risks associated with our share repurchase program.
Speaker Change: Risks associated with the acquisition of additional restaurants adequacy of cash flows and the cost and availability of capital or credit facility borrowings to provide liquidity.
Speaker Change: Changes in federal state or local laws and regulations affecting our restaurants, including wage and tip credit regulations and other matters discussed under the risk factors section of good times annual report on Form 10-K for that.
Speaker Change: Fiscal year ended September 24, 2024, and other reports filed with the SEC.
Speaker Change: During today's call, we will discuss non-GAAP measures, which we believe can be useful in evaluating our performance.
Speaker Change: The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP and reconciliation to comparable GAAP measures available in our earnings release.
Speaker Change: And now I would like to turn the call over to our Chief Executive Officer, Ryan Zink.
Speaker Change: Thank you Carrie and thank you all for joining us today.
Speaker Change: The first quarter of our new fiscal year was encouraging for bad Daddy's as we posted a one 5% increase in same store sales and better restaurant level margins were.
Speaker Change: We're pleased with the results of our holiday seasonal specials as well as our classic slash and smokehouse smash made with our aggressively smashed Angus beef patties.
Speaker Change: These two burgers are a key component of our sequential improvement in food and beverage costs during the quarter as they've been engineered to meet the sweet spot of providing margin slightly better than our ladies American cheeseburger at a lower cost to our guests priced at $9 50 in Colorado and a dollar less everywhere else.
Speaker Change: We're expecting to expand our lineup of flash Paddy burgers with further opportunity to engineer the menu for greater sales and improved cost.
Speaker Change: I'm looking forward to sharing more about this exciting product during our next quarter.
Speaker Change: I should note however that despite our year over year menu price increase being near four 5%.
Speaker Change: Mix shift into our smash Patty burgers is offsetting roughly half of that price increase.
We're also featuring our winter seasonal specials with two new products, both sliders and potatoes Hot soup, along with the return of our winter salad made with Cranberries walnuts brand Blue cheeses, an embedded mixed greens and tossed in our strawberry balsamic dressing.
Speaker Change: The bundle of all freest price of $12 50.
Speaker Change: Price point, we believe is compelling for the indulgence and premium offerings.
Speaker Change: Looking towards spring, we're thrilled to bring back to boldly flavorful barrier Burger as well as a brand new food brand, new food and drink offerings that I'll share more about during next quarter's call.
Speaker Change: During our last call I reviewed the back to basics approach, we've taken a bad Daddy's I also discussed the redesign standards spanning both front and back of house execution, which are completed by the individual restaurant leader.
Speaker Change: Beginning this fiscal year, we've incorporated the results of those standards reviews into the performance metrics used to determine each restaurant management teams monthly performance based compensation.
Speaker Change: This was align compensation with restaurant performance at lower yield lower volume units, which by their nature have less opportunity for the profit based component of their incentive comp.
Managers have meaningful financial incentives to deliver great service recipe right food and run their restaurant in a way that will drive long term traffic sales and profit growth.
Speaker Change: I also believe this is a component of our improved labor controls this quarter compared to the same prior year quarter.
Speaker Change: Our good times brand experienced ongoing challenges, resulting from higher costs significantly in labor.
Speaker Change: Continued intense discounting by our competition.
That said same store sales for the quarter ended flat for the same prior year quarter slight improvement over the range, we provided during our last call.
Speaker Change: We continue to move the business forward during the quarter and accomplished a number of objectives as we execute our long term plan for good times.
Speaker Change: During the quarter, we analyzed some of the opportunities we have by comparing our products against others in the market.
Speaker Change: We realize that our fascination with speed has resulted in some compromises to a product that were out of balance.
Speaker Change: In January we rolled out new cooking procedures and holding standards for our Burger patties.
Speaker Change: And adjusted our process for Bunge, hosting which has resulted in juicy or larger patties and softer fresher bonds coming out of the drive through window into our guests' hands we.
Speaker Change: We have also made upgrades to certain operations processes related to customer production to improve the quality of that product with more adjustments both in process and in product yet to come in the second quarter and back half of the fiscal year.
Speaker Change: The my chips mindset shift is one of speed at all cost to a focus of delivering high quality products at <unk> speed.
Speaker Change: In October we purchased two good times restaurants from a former franchisee.
Speaker Change: Both in the northern suburbs of Denver.
Speaker Change: After a short closer to hire some new employees and to make some much needed repairs, we reopened both restaurants and they're performing well.
Speaker Change: One restaurant needs, an extensive remodel which will likely occur in fiscal 2026.
Speaker Change: And the other has already been updated with new paint and autos.
Speaker Change: <unk>.
Speaker Change: Both restaurants will have signs replaced during the next two years.
Speaker Change: Additionally, just a few miles away from both of these restaurants, we remodeled the good times in the northern suburb historically.
Speaker Change: It was closed for nearly six weeks of the quarter and received significant structural repairs, while replacements as well as all of the guests facing improvements at all of our Remodels are receiving.
Speaker Change: We recently ended our limited time offer of our Bambinos Supremos and Dirty sodas.
Speaker Change: Neither of these achieved the sales that we really hoped for but we continue to sell them post promotion as off menu items and have developed a small but loyal following for both.
Speaker Change: And neither require ingredients that we don't already have in house.
Speaker Change: As we shared last quarter, our latest limited time offer is the west slope double paying homage to the western side of the Rockies.
Speaker Change: This Burger features the same bambino sources, our current west coast Burger and our BMP knows.
Speaker Change: It is a bold flavored burger with two full slices of sweet yellow.
Speaker Change: Double and a single full slice and a single Patty version.
Speaker Change: Our goal with this product is to create another two patty Burger with a distinct look and flavor from our traditional good times deluxe.
Speaker Change: This will run throughout February and then in March we look forward to our seasonally featured fish sandwich made with Atlantic Cod under housemaid Tartar sauce.
Speaker Change: We continue to experiment with audio App based advertising with a combination of terrestrial radio audio streaming and podcasts.
Speaker Change: In November October November we've removed all audio based advertising with the exception of one sports radio station.
Speaker Change: With features during the Denver Broncos games, and one full year campaign with a single station in a demographic that we believe continues to be a radio user.
Speaker Change: Then on the December like we went live again with our traditional radio buy and are measuring the impact of its reinstatement.
Speaker Change: Late December trends look favorable but January unfavorable weather prevented us from getting a solid read and we're continuing our current radio buy.
Speaker Change: <unk> was shorter 15 second spots into the spring.
Speaker Change: While terrestrial radio is certainly declining medium.
Speaker Change: Dreaming and podcasts are both meaningful portion of the campaigns.
Speaker Change: We're also experimenting at both brands with Youtube pre roll advertising and video streaming services in certain markets.
Speaker Change: As we noted in our press release January was a particularly difficult months for both brands with negative temperatures and meaningful snow on three different weekends of the month, our Colorado restaurants experienced significantly reduced sales compared to the prior year.
Speaker Change: And that the weekend beginning January 10th drop snow across nearly all of the bad Daddy's markets in the southeast part of the country during which several of our restaurants closed early opened late and in some cases, we're unable to open at all.
Speaker Change: Same store sales at bad Daddy's were down approximately five 5% during the first four weeks of the second fiscal quarter.
Speaker Change: And down more than 7% at good times.
Speaker Change: Have improved since then but whether we will continue to be an unpredictable element, particularly in Colorado for the rest of this quarter.
Speaker Change: I'll now turn the call back over to Terry for a review of our performance during the quarter and some perspective on the Companys financial initiatives.
Terry: Thank you Ryan let's discuss this quarter's results.
Terry: I'll review Bad Daddy's results first.
Terry: Total restaurant sales increased 2 million to $26 1 million for the quarter.
Terry: Sales increase was primarily due to an additional week in the current fiscal quarter versus the same prior year quarter as well as menu price increases partially offset by the prior quarter closure of one bad Daddy's restaurant and by negative mix shift attributable to the success of the Companys Smash Patty burgers, along with reduced slightly reduced traffic in.
Terry: Due to the impact of a reduced number of days between Thanksgiving and Christmas day compared to the prior year and the shift of Christmas day from Monday in the current quarter to Wednesday, and prior year first fiscal quarter.
Terry: Our average menu price during the quarter was four 5% higher than quarter one of 2024.
Same store sales increased one 5% for the quarter with 38 bad Daddy's in the comp base at quarter end.
Terry: Food and beverage costs were 31, 5% for the quarter.
Terry: Which was unchanged from last year's quarter.
Terry: The steadiness as a percent of sales is attributable to the impact of the menu price increase and the favorable cost of sales of our highly successful classics Ms Patti burgers.
Terry: Offset by higher purchase prices and our commodity basket compared to the prior year quarter.
Terry: Although our beef prices declined sequentially during the quarter costs were still elevated over prior year, as where our potato and bread costs, both of which are product categories in which we rely on a single supplier.
Terry: Due to the tightening beef supply as evidenced by the sequential increase in wholesale boneless beef prices in January we anticipate ground beef costs will continue to increase throughout fiscal year 2025.
Terry: Labor costs decreased by 70 basis points compared to the prior year quarter to 35, 1%.
Terry: This decrease was primarily attributable to the leveraging impact of higher sales on fixed labor costs predominantly manager salaries the.
The increase in menu pricing and increased labor productivity productivity.
Terry: Partially offset by higher average wage rates paid to attract qualified employees.
Terry: Although we expect continued solid labor controls on a full year basis, our second quarter labor costs will not have the same year over year improvement as the first quarter of 2025.
Terry: In January Colorado minimum wage increased to $14 81.
Terry: The two 7% increase in the tipped minimum wage increase to $11 79, a three 3% increase.
Terry: Based upon our pricing surveys, we did not increased menu prices enough to cover the impact of these minimum wage increases as a percent of sales.
Terry: Further the deleveraging impact of the weather induced decline in January sales as discussed by Ryan will likely result in higher year over year labor cost as a percent of sales in the second fiscal quarter.
Terry: Overall restaurant level operating profit a non-GAAP measure for bad Daddy's was approximately $3 3 million for the quarter or 12, 6% of sales compared to $2 6 million or 10, 7% last year, primarily due to labor and other operating cost savings.
Terry: Moving over to good times total restaurant sales for company owned restaurants increased approximately $1 1 million to $9 9 million for the quarter compared to the prior year first quarter.
Terry: Same store sales remained consistent with the prior year quarter with 27, good times restaurants in the comp base at quarter end.
Terry: The average menu price increase for the quarter was approximately three 9% over the same prior year quarter.
Terry: We did not take any menu price increase in the first quarter and we will continue to assess on a relative pricing position in the market and we'll make adjustments based on competitive pricing.
Terry: Okay.
Terry: Food and packaging costs were 31, 8% for the quarter, an increase of 100 basis points compared to last year's quarter.
Terry: The increase was primarily attributable to higher purchase prices on food and paper goods, partially offset by the impact of the three 9% average increase in menu pricing.
Terry: As is the case with bad Daddy's based upon current commodity forecast, we expect ground beef costs to continue to increase throughout the remainder of fiscal year 2025.
Terry: Additionally, avian flu has at least temporarily cause some extreme price increases in the cost today, which are a component of each of our breakfast entrees.
Terry: Macroeconomic and political forces cloud visibility into the magnitude and direction of commodities further into the future.
Terry: Total labor cost increased to 36, 7%, a 290 basis point increase from the 33, 8% we ran during last year's quarter.
Terry: Mostly due to higher average wage rates, resulting from the market forces.
Terry: And the CPI index minimum wage in Denver, and the state of Colorado.
Terry: And decreased labor productivity, partially offset by a three 9% increase in menu pricing.
Terry: Occupancy costs were nine 6% an increase of 70 basis points from the prior year quarter.
Terry: The increase is primarily due to lease extensions and rent escalations as well as real property tax increases, resulting from higher property values.
Terry: Other operating costs were 13, 2% for the quarter, an increase of 20 basis points, primarily due to increased technology related fees and utilities.
Terry: Good times restaurant level operating profit decreased by <unk> 3 million for the quarter to <unk> 9 million.
Terry: As a percent of sales restaurant level operating profit decreased by 490 basis points versus last year to eight 6%.
Terry: Due to elevated costs throughout the P&L.
Terry: Combined general and administrative expenses were $2 6 million during the quarter or seven 1% of total revenues, which remained steady from the prior year quarter.
Terry: We expect to run approximately 7% general and administrative costs on a full year basis for fiscal 2025.
Terry: Our net income to common shareholders for the quarter was <unk> 2 million or income of <unk> <unk> per share versus a net loss of <unk> 6 million <unk> per share in the first quarter last year.
Terry: There was approximately $3000 of income tax benefit recorded during the current quarter versus <unk> 1 million of income tax expense in the prior year quarter.
Terry: Adjusted EBITDA for the quarter was $1 2 million compared to <unk> 5 million for the first quarter of 2024.
Terry: We finished the quarter with $3 million in cash and $2 6 million of long term debt.
We repurchased 59125 shares during the quarter under our share repurchase program.
Terry: Share repurchases will continue to be balanced with other capital needs.
Terry: We continue to budget approximately 1% of sales for ongoing maintenance Capex and we incurred <unk> 9 million of Capex during the first fiscal quarter related to our remodel of the good times restaurant in the north of Denver Metro and our acquisition of the two previously franchised restaurants.
Ryan Zink: And now I will turn the call back to Ryan.
Ryan Zink: Thank you Carrie.
Ryan Zink: We can now open the call for any questions.
Ryan Zink: Thank you we will now begin the question and answer session. If you have dialed in and would like to ask a question. Please press star one on your telephone keypad to raise your hand and joined the queue. If you would like to withdraw your question simply press Star One again once again. Please press star one to ask a question one moment. Please for your first question.
Speaker Change: And your first question comes from the line of Sanjay like Dogger. Please go ahead.
Speaker Change: Alright, and good afternoon.
Speaker Change: Thank you.
Speaker Change: Talk a little bit about.
Speaker Change: Bad Daddy's are there.
Speaker Change: Plans for new locations.
Speaker Change: And when can we sort of expect those two to come about.
Speaker Change: Certainly so we continue to look for locations at bad Daddy's.
Speaker Change: I would I would say that we have several opportunities that we've gotten down the road with and for one reason or another have have.
Speaker Change: Chosen to not move forward with those.
Speaker Change: We continue to look for those that are really pretty particular on.
Speaker Change: The types of locations that we're interested in I will say that our location in Madison, Alabama continues to perform very well.
Speaker Change: It is a little unique in the way that it's designed and honestly, we're looking for more locations like that where.
Speaker Change: It's a two tenant building.
Speaker Change: We're co tenant with Carver in that location and we have a very prominent position.
Speaker Change: The building itself.
Speaker Change: That.
Speaker Change: It makes it look as if we're in a freestanding building, which I think is part of the drive behind the success with that location has had.
Speaker Change: We have struggled to find locations at rents that were that were willing to pay and fit the economic model.
Speaker Change: I will say, we continue to aggressively look for those but.
Speaker Change: We are being very picky about locations that we will select.
Speaker Change: Okay.
Speaker Change: That being said.
Speaker Change: So what's kind of the.
Speaker Change: I Wonder if you could give us a bit of.
Speaker Change: Until now.
Speaker Change: The capital allocation plan moving forward.
Speaker Change: I think there was a brief mention though.
Speaker Change: The share buyback, which.
Speaker Change: Thanks.
Speaker Change: The slowdown in pace a bit so is that projected increase or whats kind of the year to plan and moving forward.
Speaker Change: Yes, I think we continue to have interest to buy it to repurchase shares at these prices.
Speaker Change: And so I think that will continue to be.
Speaker Change: An objective that we have and that we devote capital to.
Speaker Change: And.
Speaker Change: Obviously, we have some of our investments have been in many of our investments have been on the good times side in terms of franchise re.
Speaker Change: Repurchases those are mostly done now.
Speaker Change: I only have one other.
Our franchisee in the Denver market or in the greater Denver Metro.
Speaker Change: And.
He is he is not interested in selling.
Speaker Change: Where can we continue to be.
Speaker Change: Confident in his ability to operate so there is no.
Speaker Change: There is no further I'd say franchise acquisitions at least at this point that are.
Speaker Change: That are out there I would say, we continue to devote capital to renovating the 30 year old brand and keeping good times competitive.
Speaker Change: There have been remodels as such over the over the past.
Speaker Change: 30 years.
Speaker Change: But we have locations such as the one that we recently.
Speaker Change: <unk> remodeled important that had never been remodeled before and so.
Speaker Change: I think that continues to be.
Speaker Change: Component.
Speaker Change: But I think as as we complete the remodels at good times.
Speaker Change: We continue to look Opportunistically at both brands and then again at this valuation we continue to be.
Speaker Change: <unk>.
Speaker Change: We continue to have a strong appetite to repurchase shares of our stock.
Speaker Change: Okay and then just.
One last one.
Speaker Change: Okay.
Speaker Change: Is there any further update on the legal case or anything that.
Speaker Change: I think we talked about.
Speaker Change: Since our last call there has been no movement and just kind of refresh you.
Speaker Change: The the Appeals court.
Speaker Change: Remanded the assessment of any potential recovery of damages to the district court.
Speaker Change: Briefing that was done which was a paper briefing to the court has been closed and now it is in.
Speaker Change: The district courts.
Speaker Change: Schedule two to rule on.
Speaker Change: That's about as much as I can.
Speaker Change: Offer in terms of timeline there is no required timeline.
Speaker Change: Once the briefing has done its really in the court's hands and so obviously, we're eagerly waiting a decision on that.
Speaker Change: But really just have to wait and see.
Speaker Change: Okay. Thanks.
Keith: Thank you Keith.
Speaker Change: Thank you and your next question comes from the line of Ryan London. Please go ahead.
Ryan London: I ask question, while back about seasonality and obviously you guys are getting hit with bad weather.
Ryan London: In January as I mentioned I'm, just wondering if you.
Ryan London: Have you gotten a better beat on.
Ryan London: Bad Daddy's being a bigger part of the business that you've gotten a better beat on.
Ryan London: Seasonality going forward.
Ryan London: Well I think.
Ryan London: The thing Thats been challenging off and on over the past.
Ryan London: Three years has been there.
Ryan London: There have been some really interesting weather patterns in the southeast and this one was more significant than <unk>.
Ryan London: And then <unk>.
Ryan London: Really I think we've ever seen before and you saw you may have seen rather the snow and the.
Ryan London: <unk> quarter of New Orleans Snow on the Beach in Florida, We actually had.
Ryan London: And ice and our Summerville store, which is our highest volume restaurant.
Ryan London: Yes.
Ryan London: In conjunction with that same store.
Ryan London: We close that store early one day, we're closed an entire day and opened late the following day as the highways around us were closed and so I say that too.
Ryan London: Say that weather patterns have somewhat changed a bit seem to be a little more.
Ryan London: Temperamental throughout the country and particularly in January.
Ryan London: I do I would say although not.
Speaker Change: Meteorologists I suspect.
Speaker Change: February will be better throughout most of the country, but in Colorado, we can have.
Speaker Change: We can have snow, it's really quite unpredictable in February March and sometimes even as late as may.
Speaker Change: Yeah.
Speaker Change: In our earnings.
Speaker Change: In our quarterly filings, we talk about seasonality and it's really November.
Speaker Change: December January February that tend to be.
Speaker Change: Difficult months seasonally for bad Daddy's that that's really the same December tends to be better weather, notwithstanding but November and January or the.
Speaker Change: Are typically the slowest months of the year for that brand.
Speaker Change: And March through June really has to be the peak quarter in terms of just seasonal performance.
Speaker Change: Okay, Yes.
Speaker Change: Very good.
Speaker Change: Good information there.
Speaker Change: One follow up question.
Speaker Change: I'm wondering if you guys have any kind of.
Speaker Change: It's not specific information anecdotal feel for the age groups that are your customers for both brands.
Speaker Change: So.
Speaker Change: It's interesting because at good times the.
Speaker Change: Research would indicate a slight female bent.
Speaker Change: <unk>.
Speaker Change: Really I would say in the Thirty's too early forties.
Speaker Change: The anecdotal evidence I would have from visiting restaurants is that theres actually a little slight mail bent to that concept and I think thats also indicated in our product mix and our release of the west slope is a double is really in part due to we have a disproportionate share of our mix that is into our.
Speaker Change: <unk>.
Speaker Change: Big data <unk> double cheeseburger, which is.
Speaker Change: A double Patty.
Speaker Change: Large cheeseburger and our.
Speaker Change: <unk>, which is also to Patty Burger.
Speaker Change: And so.
Speaker Change: I would tend to say that in spite of the.
Speaker Change: Research has been conducted at actually been slightly male and I would say and this is again specifically good times.
Speaker Change: And is still in that.
Speaker Change: 30% to 40 age group, we are looking at media.
Speaker Change: Whether that's social web.
Speaker Change: Whether that's things such as Youtube, which I discussed a little bit.
Speaker Change: My prepared remarks to try and reach out to get outreach and to attract.
Speaker Change: A younger.
Speaker Change: Audience, and I think our remodels are part and parcel with that to try and modernize the brand.
Speaker Change: And keep the brands attractive for a younger generation.
Speaker Change: Bad Daddy's.
Speaker Change: I think our customer base. There is very similar to any kind of casual diner, whether that's chili's, which has been in the news recently.
Speaker Change: Or Texas Roadhouse or those likes I would say, it's anywhere from 25 to 45.
Speaker Change: And really I would say, it's fairly evenly split between male and female.
Speaker Change: I think at bad Daddy's is really much more of a psychographic profile.
Speaker Change: And.
Speaker Change: In terms of.
Speaker Change: Just.
Speaker Change: People thought processes and the types of the types of work that they're in we tend to appeal to a.
Speaker Change: Or upper income.
Speaker Change: More blue collar type audience at bad Daddy's.
Speaker Change: And I think we view the brand through that lens more than we do traditional demographics.
Speaker Change: Got it okay. That's very helpful. I appreciate it thank you very much.
Speaker Change: Alright, Thank you and once again, if you would like to ask a question. Please press Star. One. Your next question comes from the line of David widespread Morningstar. Please go ahead.
David widespread: Hi, Thanks for taking my question I was wondering if you are planning to do anything with the menu or anything else at the good times brand offset some of the IND.
Speaker Change: Increases in occupancy and other costs that you discussed earlier.
Speaker Change: So we have.
Speaker Change: As I discussed in my prepared remarks, we're really take us having a focus on product quality.
Speaker Change: We have some experiments in the works with either.
Speaker Change: Product rationalization I E getting rid of some products.
Speaker Change: To make our menu a little more clear and to engineer the menu to drive.
Speaker Change: <unk> behavior into better margin products mhm.
Speaker Change: We have traditionally resisted discounting and we continue to do so.
Speaker Change: I think we.
Speaker Change: I think our products are engineered.
Speaker Change: Quite well.
Speaker Change: The issue at good times really comes to we don't have the purchasing scale.
Speaker Change: Some of the major <unk> and so we tend to stay away from discounting to preserve margin at a.
Speaker Change: Cost of sales line.
Speaker Change: But I think.
Speaker Change: Really leveraging.
Speaker Change: To make improvements on occupancy and other fixed costs, we really have to drive the sales up which is why we're experimenting with different types of media.
Speaker Change: And Additionally, why we are trying to.
Speaker Change: We're trying to look at menu rationalization.
Speaker Change: To try and attract.
Attract more customers through or track greater frequency through clearer menu ing.
Speaker Change: And through really trying to make the ordering process simple.
Speaker Change: And improve the product while at the same time delivering on the speed expectations of the <unk> user.
Speaker Change: Yeah that's helpful. Thanks.
Speaker Change: Secondly, I noticed that you didn't.
Speaker Change: Announce your comp sales before today's report or you're not going to be announcing that going forward.
Speaker Change: So yes, that's a great question someone else had reached out about that.
Speaker Change: To the call and.
Speaker Change: Well I think what we've.
Speaker Change: What we've observed and this was a quarter that may be a bit.
Speaker Change: Typical but what we've observed is that most companies in the space.
Speaker Change: It stopped pre releasing sales.
Speaker Change: And incidentally this quarter was the ICR conference and so a bunch of companies released preliminary results for their December quarter.
Speaker Change: Leading up to the ICR conference.
Speaker Change: In association with that presentation.
Speaker Change: We will continue to evaluate that and if companies have kind of reverted to pre announcing sales we might return to that.
Speaker Change: But R R.
Speaker Change: Our observation from last year was that most companies didnt do that and so that was the logic behind or are not pre releasing this quarter.
Speaker Change: Okay, Yes, you're right certainly it has sort of gone away in recent years, but.
Speaker Change: I do think that investors like to see it anyway.
Speaker Change: Thanks for taking my questions.
Speaker Change: Absolutely, Thanks, and Thats fair feedback and I will take that under consideration.
Ryan Zink: Great. Thank you and I'm showing no further questions at this time I would like to turn it back to Ryan Zink for closing remarks.
Ryan Zink: Thank you despite a tough January I know that our team is focused on the right initiatives to run great restaurants and to drive customer loyalty.
Ryan Zink: The operations initiatives targeted at improved execution at both brands ultimately aim at creating memorable guest experiences that drive increased traffic to our restaurants.
Ryan Zink: As always I extend my appreciation to the team members and leaders throughout our company for their passion and commitment to our brands to our guests and to excellent operations.
Finally, thank you all for joining us today.
Ryan Zink: Thank you and ladies and gentlemen. This concludes today's conference call. Thank you all for joining you may now disconnect.
Ryan Zink: [music].
Ryan Zink: Sure.
Ryan Zink: [music].