Brinker International, Inc. (NYSE:EAT) Q4 2023 Earnings Call Transcript

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Joe Taylor: When we look at value in totality, it’s been relatively stable the last couple of quarters, it’s up a little bit relative to a couple of years ago, but again we’re, we’re still in that 30% range that we’ve talked about in the past. I think as relative to your comments on the consumer behavior. I think we’ve talked about in the past is there has been some episodic times that you see some skittishness driven – it could be gas prices last year, obviously had a period of time. The general macroeconomic commentary that goes on. I think we saw a little bit of that in the beginning of the quarter, when you think about the commentary in the April, May timeframe and I’ve heard other folks talk to that. But the resiliency of the consumer is definitely still there.

So, whenever we’ve seen these short periods of possible skittishness if you want to refer to that, we see it come back. We’ve definitely seen that happen as we move through this last fourth quarter and into the current fiscal year. So again, generally speaking, the consumer seems to be – where the consumer is, hanging in there, as Kevin said, we’re seeing continued traffic from the different cohorts we look at. We are seeing increased spend from a number of those cohorts. And it is interesting to see the upper-income visits start to head up. So clearly, whether that’s trading into the brand or not. It’s just, or just reaction to the marketing we’re doing, I think that’s a real positive to see, but right now the consumer environment, is there.

Jeffrey Bernstein: I mean the fact that the first seven weeks have been as much momentum, is an incredible testament to the resilience. So hopefully that whole. Yes, thank you.

Joe Taylor: Yes.

Operator: Your next question for today is coming from Eric Gonzalez with KeyBanc.

Eric Gonzalez: Hi, thanks for the question. I’m curious about one of the drivers you mentioned the prepared remarks. Can you give us some more detail on how you’re going to bring IJW into the real world? I’m wondering if you see that as a traffic driver or more of a check driver? And then, do you have the sufficient brand awareness, especially would it draw customers into the restaurants or is it something you might put advertising resources behind?

Kevin Hochman: Yes. So the way to think about it just from a what the customer is actually going to see when they come inside of Chili’s. It will show up in two areas. So one will be the new bar menus that will be placed on the bars and in the bar area. And there’ll be a prominent page on that menu that just talks about IJW and Chili’s collaborating on this, basically a lineup that would be It’s Just Wings. So it will be Boneless and Bone-In Wings, different piece counts, all the sauces that are available in It’s Just Wings. And so, that will be very prominent in the bar, because we know that Wings and Boneless Wings are a big thing that people eat at the bar, especially when they’re watching sporting occasions. We will also have a smaller section on the dining room menu in the appetizers section, because that would, that would either be an add-on to an existing meal or a trade up from appetizers, given the pricing of wings.

So those are the two areas that will show up for the guest. From outside the restaurant, so because that’s when we talk about driving traffic. It’s really about like what are we going to be talking about the guests to get them to come in for these Wings primarily it will start with our CRM program. So as I mentioned we have this new CRM agency coming online. And if you look at some of the wing competitors. A big part of their, of their traffic driving program is making sure that they are top of mind aware, during sporting occasions when you’re in the market for wings, whether they are to-go wings in off-premise occasion or coming into a bar sports bar to watch sports and eat wings. And so, we’ll have a heavy dose of that to start. And then eventually because it’s now a part of Chili’s, in theory we could eventually put that in the TV advertising.

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