FRGI Fiesta Restaurant

Raphael Gross ICR LLC
Richard C. Stockinger Fiesta Restaurant Group, Inc.
Danny K. Meisenheimer Fiesta Restaurant Group, Inc.
Lynn S. Schweinfurth Fiesta Restaurant Group, Inc.
Nicole M. Miller Regan Piper Jaffray & Co.
Nick Setyan Wedbush Securities, Inc.
Jon Tower Wells Fargo Securities LLC
Call transcript
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Good afternoon, and welcome to the Fiesta Restaurant Group Inc.

Third Quarter 2017 Earnings Conference Call. Today's conference call is being recorded. At this time, all participants are in a listen-only mode.

Following our presentation, we'll conduct a question-and-answer session. for that provided be will you time. at Instructions conference to Raphael like to Managing over the turn ICR. I'd Gross, call Director at you. Thank

may begin. You

Raphael Gross

release Good quarter market Restaurant Fiesta today. was earnings close afternoon, the issued Group's after everyone. XXXX third

it If on be the Relations the accessed under found section., can you website, already have Investor not it, company's

and company's Any in actual believes reconciliation company's be as available considered Important the expressed GAAP budget, non-GAAP and in will include projected information statements Before which call in are factors what found and to call, that and in a will prepared statements company statements company that is can limitation, during today, note assurance discussion can useful not These no I'd the be today's company on isolation without from in make forward-looking the be release. results is and to and to information. outcomes implied for objectives that of operations, business measures comparable by forecasted measures you costs can operations. or will the inform correct. the financial the like substitute its give begin, strategy, Actual future regarding a certain in be should materially materially evaluating filings. such the we that the historical forward-looking based can performance. Please prove with those SEC company's financial from during accordance statements plans to may that expressed position or such of statements, differ various GAAP forward-looking of differ not discussed be earnings for statements forward-looking results or future management such results results cause

and Schweinfurth. now, Chief Pollo Vice turn President Officer, I Officer, Meisenheimer; the Lynn call President, Operating Vice Chief President, Rich. today Stockinger; Executive And Tropical Financial Senior President Officer On the and and over Rich to Senior are Danny Chief call and will

Richard C. Stockinger

flooding for Fiesta Raph. impacted Thank you, and QX as members team weeks the was Harvey Within the Irma, our communities operate. our and our into operations, Tropical hurricanes, Houston and Harvey's Hurricane of of restaurants restaurants majority Texas the in impact Irma. challenging closed destruction Florida quarter the and as to a severe where every San we they we two certainly area withstood and caused that in Antonio and Hurricane Atlanta of arrival prepared Pollo

their of team the I'm there report that Taco And for the after all have of severity that one Cabana we done and no had Resuming to planned all passed members. storms, to effort and the was by we our partners, storms pleased thank our a location. them that team full members by incurred operations tremendous were supplier with and exception of had tenacity. restaurants our Given injuries undertaken diligence the so, reopen

our website. We been Pollo served are in be video assessed proud efforts captured and meals responders evacuees both on and of on These Florida. Texas that first Taco and and to Tropical have in can thousands Cabana

we the assist In relative two Due storms. our our our Foundation, are hurricanes the of close repositioning our as as all to short-term damage to Family of permanently in but San to Antonio, needed brand who the Tropical awareness result property track well addition, and inventory Houston to Tropical as permanently close we resulted Harvey team limited through Texas related of locations. business and four high In on are of delayed aftermath non-profit Pollo focus restaurants suffered the continuing core personally back Hurricane decided strategy. and Fiesta the of the Pollo support we these have remaining and overhead markets decided to and loss members restaurants uncertainty, on brand Pollo some a six losses in now. we in revitalizing many Tropical The brand costs and re-launches, our

Danny menu and campaign. ad month new new we items As Pollo re-launched with a Tropical will last explain,

Importantly, better expected sales sales with still from discounts but low hurricane, experiencing and trends to several prior admittedly our single-digit had trends single-digit Taco comp for we we significantly this the at to were advertising months. promotional Tropical decline. sales just Cabana decline high improved Pollo reduced soft, that was were since

our hold strategic we we In strategic at leading key elements trends renewal build renewal Cabana. sales the our indicators so the made qualitative press of plan. Taco we have proceeded Pollo beginning remain However, plan out at Tropical release, taking laid improving to that as optimistic far accomplishments earnings now that is are significant across

to We trial guest improve every induce the day hard experience are working frequency. increase and fundamentally and

and in beginning in investment North we're Strategically, our financial Our superior of Florida area. in markets repositioning outside first. of with Metropolitan and locations markets, and markets guests, core our already brand particularly core efforts performance our in strong core the affinity focusing Pollo restaurants our have with coupled for that is why are brand Atlanta Tropical process we of these the

planning menu in stages, regionalize the starting to in quarter. are the We first

including line and completed chicken dishes desert like cobbler and of and We casserole peach an have pecan including potato pie. the recently potentially okra extension are fried our we new planning validates options, that to out, sweet products fried research roll side

marketing Before is President, than in COO, Taco years Cabana experience. role executives accomplished I Chuck of with XX who call on operations, welcome team. turn in additional three taken serving Chuck and Danny, leadership an the our to would more as like recently Tropical development, as company's finance Pollo Fiesta recently addition to respected over as I our to restaurant executive to was Locke highly named President.

a strengthen now across in Senior leading Vice at he of Human was She industry. Chang President Maria few overall to week. Communications. organizations the Officer Anthony's He's & concept of polished has to hard served experience Tony President as Florida. Before talent will Vice breadth he Fiesta over of strategy. our Resources, recently and joining Cable into Wireless Resources Senior Pizza, role recently, strategic us, Tony at multiple join named a years casual XX of our as our Human of new plan. Mayer Operating serve will is dining management and experience. as already bringing just Secretary, implementation us a Dinkins General of working based his overseeing working Coal South just Most Fired weeks resources Chief legal served in human impressive an new Counsel renewal

enhance that going passion for we our our Our implement core resolve and team and their to we models And as and our XXXX. business their efforts I to fundamentally plan. commitment that, the this that over they thank agree have enter in to believe when track. I'll performance overcoming I the actions members quarter, say Danny. are them call and on would past obstacles believe some know with me turn right we With are we very real the squarely

Danny K. Meisenheimer

Thank approximately included so Hurricane November sales hurricanes, brand X.X%. of believe which is of sentiments lightening ourselves part and that at impact due operator at sell you, the time base I build Taco evident at year physical Cabana. Taco establishing year our continued Despite we're Pollo Rich's our will Chuck's best-in-class It an discounts Cabana We by particularly I'd how the suspending we relaunch This of Matthew like Rich. on in teams. under year. Taco X, advertising Tropical as express to earlier softness expanded believe temporary where as ending customer believe in complete with a to were a take echo Pollo, next occurred we result in flat in and our am gaining implemented to our by is the traction comparable promotional leadership, approximately earlier positive Cabana last we're we and doing planned estimated will brought proud and setbacks guests. initiatives. And we restaurant

quarters, the positively the brand and importance of discussed approximately guidelines of freshness with XX% impact to we past high-quality two ingredients and our food respect natural menus. used these Over to our have have

our control supply new with flame-grilled three This especially chain. Jalapeno markets. us for plan means core month, power brand, of another On introduced differentiate feed all Ranch; Onions Last and We ever now toppings by in Pollo Poblano breed also provide and tacos Bacon a scale composed outside antibiotics We Ranchero. further. vertically be even integrate to Roasted October year. we evolved chicken with purchasing menus we & Grilled we with leveraged our chicken and Roja; restaurants, to Tropical's and Taco no Cabana, our at the time: our Salsa Peppers will limited to chicken next X served of

at Pollo fries, mashed represent promotions Kids' opportunity items. Tropical, improved & Pollo sales approximately We time, BLT to side greater our now our feature Lunazul XXX% at dish and variety Grilled patio Meal Sandwich, and enhanced Chicken a Bites and expanded brand, including Agave mac of of Chicken coleslaw. choices, which These enhancing casserole, the with On currently our XX, include Mango see special further which by Guava also we potatoes sales Tequila. we and activities Barbecue alcohol October use grow an encouraging We introduced and new margaritas, X% Salad. Over happy hour. corn Blue French Ribs, with cheese, gravy

prepared a new a strategies meal $X.XX advertising signature equities continues brands our we coincide freshly the will pie added being chicken and menu our in complement radio, resumed Through that positioning, reinforce launched lime supported the and family new on recently In billboard, Both that social also XX points. and by October updated communication and introduction place half-chicken Pollo will our putting a chocolate new in offerings cheesecake, are and with TV, we new across of positioning launched options key marketing addition, media fajita convey and advertising all cookies. campaign Pollo are platforms, platter. point-of-purchase to flame consumer dessert broadcast English campaign feature refined the touch brand meal these digital to Cabana advertising Taco campaigns. chip to Spanish. Tropical's grilled media with $XX.XX a and tacos. both

our access our can company spots on You current website. TV

now prepared in have menu our restaurants digital new food These will by offerings promotional of to of among Cabana in our installation feature systems these Tropical enhance in featuring the benefits. Pollo restaurants being menu Antonio Taco our place menu month. rotate made intend boards, our we kitchens video our video year-end. Our complete freshly We in and both to able this South boards San and boards day-part and Florida in us other across and display presentation menu

working Turning quality, environment. operations. embrace brand restaurant hospitality so high been standards and We've to on truly will that our culture our teams our for evolving food

to sampling to the pre-shift team added knowledge food enhance and to include our adherence ensure chefs and ensure and love promotions. food know meetings, with our food have training We're all to We which are product and our field now culinary regional food holding operating standards. structure and current familiar safety members

We that new will accuracy, service and have of hospitality, models are delivering labor ensure models consistently we brands. implemented high-quality both at food. enhance speed ensure These

have the optimized We can staffing, managers that also intensely so guest experience. focused on be

that quality the reinforcing food strict and to with safety adherence line are We consistently day. performed cleanliness, throughout checks have

deferred and improve adding exterior this of the and are both list We based our maintenance year priorities lighting XXXX to upon tier signage addressing and visibility. need in enhancing

third Turning company-owned opened Pollo Taco during two in the in three to Cabana portfolio. quarter. restaurant our restaurants Florida restaurants We Tropical company-owned Texas and

XX We also Taco quarter which Pollo in closed have through were three, and we Pollo's. Texas. remaining restaurants Tropical Year-to-date, restaurants, of the four XX end restaurants of closed the six Cabana

more this openings and accomplished, been We except Pollo Taco work has restaurant already To these Tropical much have up, Cabana have sum nine and one restaurant. XX to all there restaurants Pollo but of for opened it year, still do. six is Tropical

me shareholders is financial turn and process, brands our in believe and with proud our provide has with motivated our is Brand With for plan but trusted we are rejuvenation our and brands results. will restaurants. to opportunities of been investment. who the changes for a members through and our us for taken stick value if enthusiasm Our by food what team we positive renewed we this that the extremely doing, team our shape to discuss that, call that our Lynn growth over experience their have the our let guest deserve, certainly

Lynn S. Schweinfurth

decreased basis Pollo menu compared at third points. sales This the quarter decrease of last partially restaurant hurricane. transactions, impacted decline negatively quarter in to a third a comparable restaurants restaurant year. attributable XX were in decrease X% X.X% XXXX was year's included approximately X.X% impacted restaurant Comparable offset Danny. which in of check the average on X.X% increases. a XX.X% sales Comparable price you, by transaction by approximately restaurant Sales in for X.X% to XX.X% comparable negatively new by transactions cannibalization restaurants to increase and existing the Thank

compared impacted in quarter tiered to were in decreased Cabana. decline that in XX.X% at Harvey. both X.X% transactions, approximately at X.X% by elasticity approximately we Comparable pricing during included year's Hurricane by of the X% each individual offset the average negatively Comparable was X% completed to sales check XX.X% year. X% in third a restaurant Turning brands mid-October, a pricing. restaurant restaurant based out will We the believe third In a analysis to at restaurant changes quarter pricing pricing level to comparable brand. This a menu decrease rolled Taco QX. the last in result sales decrease price incremental transactions increase and effective upon due

brand Hurricane cost and Restaurant-level $X.X a offset items, in by in refer restaurant-level sales $X and that Restaurant-level Pollo, be negatively Please of by sales use restaurants. restaurant We as third and will restaurant-level of Hurricanes negatively restaurant-level approximately release was higher At negatively decline million. impacted impact sales restaurant-level expenses decreased of related maintenance in costs, expenses, a line restaurants and $X.X restaurant performance EBITDA highlighted million. as non-GAAP restaurant-level royalty by general of excluding was third fees, percentage costs, sales, as to non-GAAP adjusted advertising is and defined In was adjusted $X restaurant-level issued estimate of year-over-year this closing of EBITDA adjusted $X.X in including negatively financial a EBITDA At and Harvey million. explanations and maintenance Taco, decline XX-Q we general revenues that higher cost our expenses. adjusted and a was that level quarter corporate administrative EBITDA by a administrative measure as by all to preopening partially adjusted also have partially to EBITDA offset Irma by terms also impacted measure, impacted our sales, Harvey and costs a million and $X restaurant XX-Q wages percentage of variance million afternoon. and which the million. franchise to supplemental restaurant million. level and our EBITDA profitability We decreased restaurant the EBITDA We EBITDA, aggregate, by the on $X.X evaluate our consolidated quarter estimate repair of key by lower higher higher adjusted for reconciliation a unprofitable positive adjusted by impacted sales and earnings repair by by table. our

Now, other let's of the and will and We closed million, impairment lease, lease Tropical related approximately in operate, to Pollo all six utility $X and in charges net restaurants September and $X.X XXXX Pollo to have charges lease in other We restaurants. related ongoing third cash additional recoveries recognized the charges by Thus our and million and good closed impact that XXXX to leases that XXXX or partially recognized continue of we for million. restaurants quickly to excess of restaurants for obligations, lease that to subleasing closed estimate Taco other we during lease the additional previously quarter, tax, offset go be assuming million, over closures of terminations and properties. and restaurant primarily $X.X have quarter. received in charges $XX.X other payments Pollo related made terminating far, progress assignments of

a six and expense the restaurant pre-tax losses $X.X $X depreciation pre-tax of XXXX. of ended Adjusted six sales of Tropical of losses, $X.X purpose X, million This adjusted contributed sales segments. We net $X.X income the operating expense stock-based including million believes net and ongoing resources $X.X months and including or to million related compensation, XXXX. Pollo results restaurant of charges million of of $X.X lease approximately million million other the the financial expense that adjusted $X.X disclosed, July to In for $X.X restaurant-level previously in utilize related As for allocating restaurants $X.X and share operating approximately performance item million $X.XX in contributed compared change of of depreciation restaurant-level closed operation and non-GAAP diluted share assessing our the not restaurant income. costs other results impairment measure, EBITDA, adjustments restaurants and significant period. a these per was million to XXXX, to pre-opening to prior-year diluted to per to and/or are strategic management of $X.XX million income in includes or are addition for

During XX.X% both expenses, a Pollo adjusted related by result restaurant-level the regional G&A restaurant offset administration lower primarily partially costs driven lower to primarily to at Tropical $XX.X adjusted quarter, of lower consolidated EBITDA by million, brands, EBITDA as declined closures.

continue $XX corporate $XX annual expenditures to including menu for million costs. $XX $XX ongoing maintenance; For capital to expect million $X million, development remodeling million million of million to for XXXX, deferred systems to video $X be boards; and new approximately capital million $XX indoor we projects IT million restaurants; as $XX and to and $XX to to and for projects; such million other $XX for million

year, nine in Cabana Taco Next restaurants expect Tropical we converted. that will Tropical will The restaurants be company-owned restaurants new and to company-owned Florida include restaurants open seven Taco Pollo Cabana closed five in Texas. new Pollo

$XX For in leading million reinvestment in $XX and forward and capital approximately Thank management to look in restaurant momentum million million questions. Tropical $XX full promise to please include million approximately $X costs; approximately other systems deferred successful to senior and our $X team to million and information of restaurants, $X plan, remodeling your to $X time at to for including and you implement $XX place $XX Pollo a Taco $XX Matt, open needs; estimated show projects. Danny XXXX, to million, a expenditures, of Cabana afternoon. indicators million answer maintenance are ongoing this building including beginning of to any primarily Pollo, annual the Rich, to I line. our would development With million now, to technology we for your for XXXX. million the expenditures restaurants; $XX new at $XX to which million million be million happy be the for And up Taco


Thank you.

is Piper question from from go Nicole first ahead. Miller Jaffray. Our Please

Nicole M. Miller Regan

Good afternoon. you. Thank

quick couple questions. of a Just

comp, is or bump, if with in that of On that the getting to the could so, within Thank you And maybe trends expected? measure the you. Pollo but how question, media and if share it, support are reintroduction guess, not re-launch, I sure improvement kind you not, I'm that? us or current

Richard C. Stockinger

I our would but thought We have we we immediate, as renewal it We of at see is around improvement sales. the it current seeing we're at in campaign the offer, in message say, our we well in from we awareness the the trends. as moment, something is Pollo, ribs the the would. that in Building plan are renewal media getting is that because the average, not combination see combination as chicken offer. a which currently, the check that's and

of So strategy. that's our part

that the lift a see the take improvement to check, in in see awareness weeks media we in around just lift time So, sales. then But We're we campaign seed. that transactions into will and few campaign really message. clearly the

Nicole M. Miller Regan

that? make suggest of to on, based comparison start terms can on when totally onto question, just because here. lot get and of okay on your And I'm back Is recovery final going turnaround not, I just what's you There look we you at I to if is it's my to it guess Or a something fair with want (XX:XX)? going is adjustments positive get do the us? to going in modeling else comp it last territory? And modeling, might it ask in

Lynn S. Schweinfurth

modeling. I also year-over-year Nicole, you're we're at from build You would And know look is, numbers what the our perspective, momentum. a planning suggest, that to

atmosphere, They're momentum more quality back into guests a conservative time coming in build experiencing great see as So, with we hopefully food that and beginning improved and start better frequency. the more hospitality and are the planning are to coming restaurants. over

Nicole M. Miller Regan

just final question. then And my

what now, things out? two-brand you're said pulls in are portfolio? team that have? Thanks. you a fully What the strong As team the what that base running a you still field important the a pushes the like are learning to work things want challenges formed are you and And see would you employee very of maybe from

Richard C. Stockinger

in. it's can I Well, and then, Rich, then else it start and jump everybody can

We now Fiesta very strong team. have

et not need Chuck sales. the marketing. The specs, to can brand the the We expertise to two only two-brand it a that like food, is the cetera. The is At earlier the use we've we food now operations a but be resources His the from got He's is but Pollo. at He's but two positive that achieving beverage, I human get the He be him, able breakeven, expect excited, results. bring leader. the Chuck passionate to Chuck lines, to new. Danny. background weeks and have and we'll Pollo you a Pollo, legal, people all team first comp place the people's your to With also in team that store He's recipes, Pollo not resources, spent it, respect across significant kitchen. those is only significant. can question familiar in the and learned and level. name him. great is with impact. the leader, trajectory

to the we I and that results same team, experiencing a us bring its that So, there as as at of working passion expect Pollo. Taco will here same we're with currently type the get

Danny K. Meisenheimer

we're and us and And The there's that confirmed nearing the doing. grounded of research. extensive for it's in that we're has to is amount confirmed plan occurred that thing a taught research one a but about lot the I is an would that it's brand. add lot, also what been that completion And each

for see together a the really come said, be as confirmed. sharing building that's and it's teams, And plan brand. to these great Rich these so resources each And guidepost and nice

Lynn S. Schweinfurth

of it a the hold, we've the And add part And feels positive management plan the I they great to what will terms that now collaboration right the that team. of in be in finally among just put and there's has to team future everybody think deliver attitude would place. really

Nicole M. Miller Regan

Thank you your for time.


Setyan Please next Our Wedbush comes question ahead. from Nick Securities. go from

Lynn S. Schweinfurth



Okay. live with to is line questions. continue your Nick, your if like you'd

Nick Setyan

for I'm apologize I what's phones today. not on that, with guys. Thanks, sure going our Hey.

guys didn't new until guys obviously, trending was the mentioned ad launch You that you flat. campaign October, the XXrd. And

I guys of step a the from we from seen So, Or just there. of there bit a you last little lot revisiting a guess, flat up were that question, maybe year, those have hurricane over previous trends? is because going volatility

Lynn S. Schweinfurth

there when I the we lapping were we the the that been earlier from would we've say said build volatility we prior from now hurricane and were nearing today that around is that is, can where last seeing year. to we what results advertising, that building But at we hurricane, were we like so hopefully there. continue momentum feel momentum. And hope have we're

Danny K. Meisenheimer

that, from thought against last we're year additional on one as discount comparing of direct period just mail. in also And terms a

So, the we comparisons are not quite have apples-and-apples, progress. but seen

Nick Setyan

I Got of reset profile how think guess, we the margin about, it. kind environment, of in then should normalized Pollo? more And

Lynn S. Schweinfurth

is that big a Well, question.

better store with base I been healthier of think closed, is have terms we a lot having of so certainly a Pollo profile the today much sales. stores in unprofitable the

in we're terms of however, think an maintenance. restaurant-level low investments food made basis. We in and And in restaurants, in the in XXs I our labor performing we're So, and higher million were about running on sales we've higher previously in then, margins. average in $X.X

seeing we're impact that on So, margin. our

Nick Setyan

it. Got

the we of tracking high that are still So, kind low for just on in range sense. XX%-ish. Makes year? then G&A, XXs And

Lynn S. Schweinfurth

some toward bit this guided savings a next shared absorbed as but of specifically we savings year, we've we'll little year. G&A, haven't We see

a standpoint So appropriate. that directional from seems

Nick Setyan

much going Just to way think we've some about comp lower et right move because maybe the Is than what are stock cetera, is QX to it? to the volatility, that Or G&A so kind around? we seen. of that see

Lynn S. Schweinfurth

see of We the were stock of did this on some the based impacted grants comp some Yeah. just issued. that quarter timing

year bonus our of lower current performance. have payments also We this because

to that think year. about as you'll So, you want next take account into

Nick Setyan

it. Got you much. Thank very


next Jon Tower Our is Fargo. question go from from ahead. Please Wells

Jon Tower

taking Thanks the question. Hey. for

couple follow-ups. Just

how how the you about menu it board in that XXXX? XXXX? maybe the weeks menu tell coming new pulsing on think cadence it. of and through And remainder of the advertising launched the on air? new you the that's October think Can look that us along First, you versus at XXXX, advertising And with about the or you then perhaps how then, that into you

Richard C. Stockinger

opportunities. and feel us and and for and the a have with of let's months question. some larger continue presence as strong it's media well to We'll doing of in you more Atlanta, see we the for very look digital November year, then come to in balance six would months advertising advertising And provide windows next with of you'll for and some matter for also very the the this the throughout of a the as as would in that marketing us we year. the state into say, Florida of Well, of seven, but year. a and to days look promotional social pragmatic media good want We some target December users you these

Danny K. Meisenheimer

new lime about desserts check do a chicken. And I it's people well extremely is that new because the we of the talked new key add-on primarily with And size which not are as as as early the guest my as the And meal the it's not well out, It average, think we the it's pie. well menu to as new cheesecake well it's simpler, that well, doing earlier from with quarter price, desserts increased things has follow. that the up and leads the board, chicken are is on also much family early, as and the it which primarily and that opinion it's also the indications liking. are our has opinion trying desserts. half And

Jon Tower

guidance get cadence seven more in Okay. said obviously, promo about the detail and was to of guess XXXX maybe how a advertising? February XXXX terms for having in the to when about But XXXX, you everything. talk thinking windows, full-year I of think But very about, media of more you of to six funky we'll year in message terms just in reset thinking in

Richard C. Stockinger

will. we Yes,

Jon Tower

the TC. stores about know store new mentioned seven and thinking stores for Then nine Great. six, then year, for about PT I Okay. for next growth you'd

big can on on and that a, us could these the cash these the in right about money change on you a new base, such you've asset opening returns the and existing stores spend existing So, time help now really such new why turnaround money frankly, lot think even a stores? stores you're on focus through when going the spend when cash your you a stores of why

Lynn S. Schweinfurth


at targeting So, right we least are return. now XX%

the in returns And So, that seven investment are be the and require costs South Taco that then conversions in new are which five much stores a new on generate of investment that to which the up Florida, which restaurant. we're restaurant, excess the with number. a Pollo opening amount restaurants will open conversions, primarily much lower in opening, of of Taco Cabana, lower XXXX

Jon Tower

Okay, makes some sense. and in And think adding okra. I Rich new and you fried menu cobbler about you, earlier, had peach think like I this then potentially mentioned is just lastly, including items stuff Atlanta,

I that's correct. think

Richard C. Stockinger

Okra. Okra.

Jon Tower


that state-to-state. but with meeting potentially curious customer probably thing And those I we confusion from market? not go. one from I was mean, from being idea far and there leading there the you is market an issue away about the what the way, research brand echo just go one is Sorry, having this another of

Richard C. Stockinger

is by of by fried chicken to it rich this as the and in the breast. has go. but fried item way I be was way. done our research one some we're go, well major – boneless in, not industry looking already marinated will chicken, both bone This our is taste menu to need guests, way restaurant not one we fried going it'll but will people the that firms competitors' to chicken. research the that in like answer that using of not the non-external testing, will It's of and have guests the we're said as it our a research area geographic be Clearly, The showed us, will be internal our it at are chicken a and beginning another differentiation

we're core the So, Pollo keeping still of Tropical.

have the have marination chain. from throughout the the we still You'll flavor that

doing ability some chicken, in giving whole quarter chicken users and rice bone to and one-off else we're of try to half addition through the just of the items beans. our the some in are the And that that items with typical something more side local, chicken,

just we're more of and the to localized not bringing or of essence Pollo, So, outside brand. it core changing the we're

Jon Tower

on the different geographies? the about if or consistent were of say, the menu be be a but across XX% the menu percentage markets? Is thinking so So, XX% of markets markets, two would would or to consistent put you menu, it, across the what not two

Richard C. Stockinger

the be Yeah, up to menu XX%. across consistency flexibility that XX% the with geographies, range the in would

Jon Tower

Okay. much. Awesome. very Thank you


Thank the you. over I'd turn concludes any back comments. for floor session. our like question-and-answer management This to to closing

Lynn S. Schweinfurth

the and We'd and everyone in call you thank thank on very interest like today. their the investment for company, for to their much participating


you, for Thank today's This concludes teleconference. your again, participation.

disconnect your lines You may at this time.