BJ’s Restaurants, Inc. (NASDAQ:BJRI) Q4 2022 Earnings Call Transcript

Thomas Houdek: No, I will just kind of add to what you said that with our current initiatives going on, we think, in 2024, we can get our total cost and that is our all in cost. So that is construction, FF&E, soft costs site work, everything back to that, six million, our target is net six million range, which still gives us great ROIs in that 20 to 30% range depending on landlord contributions and that kind of thing.

Sharon Zackfia: And then just two quick clarifying questions. The mid single-digit commodity inflation for this year, was that a gross or net of anticipated kind of cost savings that you identify? And then did you give traffic for the fourth quarter or can we get that?

Greg Levin: I will do the traffic one cause that is as simple. So for the fourth quarter we ended up with six, six comps and our traffic was around 2.5 or so, and the rest was the average check going up. And just to jump into the average check a little bit, we have mid five pricing, I think below the industry, our checks a little bit lower and that is really due to the fact that we have seen an outside growth in lunch in the fourth quarter and the late night business. So those areas have tend to have a little bit lower overall average check, and that is why our average checks more in the 4% range versus our 5% pricing. And then again, as our traffic was positive in the 2.5 plus percent range, – Tom hit on the commodities.

Thomas Houdek: And then on the commodity and inflation question, the mid-single-digits was a net number there is possible for upside, just depends on what else we are able to achieve in the margin improvement initiative. But right now, the mid single-digit was met but again, we are still evaluating a number of other attractive opportunities to save there. So it there could be some upside on top of that.

Sharon Zackfia: Thank you.

Thomas Houdek: Thank you.

Operator: Our next question is from Todd Brooks with the Benchmark Company. Please proceed.

Todd Brooks: Hey good evening everyone, this is Todd here. A couple questions. There is one variable and, and Greg you hinted at in your comments, but in talking about the recovery and the restaurant level margin and an exit rate for the year and the load mid teens, what is the assumption of sales as far as you talk about that as being your best driver of margin recovery and I know we have got the margin improvement program. I know we have got some pricing coming in, but what is the assumption for what you need for same store sales growth as a component of reaching that target or are you not expecting much on that front beyond Q1 and any increment there would be put you higher into that targeted range?

Greg Levin: Yes, it is a good question, Todd. And I think when we look at our business and think about the fact that we are looking somewhere in the seven to 8% menu pricing, so thinking about from the seven to 8% menu pricing, I think, we are thinking, you know, comp sales or revenue growth in the kind of maybe mid-single-digits or so, hopefully a little bit better. But we feel that there is opportunities that we can drive that margin by looking at our cost improvement initiatives to help manage that down. So I think we have got to get that, that, you know, that pricing to come through, in our business to kind of continue to move ourselves in the direction of those margins.