Fiesta Restaurant (FRGI)

Raphael Gross Managing Director, ICR
Rich Stockinger President and Chief Executive Officer
Cheri Kinder Vice President, Corporate Controller, Chief Accounting Officer
Dirk Montgomery Chief Financial Officer
Will Slabaugh Stephens, Inc.
Joshua Long Piper Jaffray
Brian Vaccaro Raymond James
Call transcript
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Good day and welcome to the Fiesta Restaurant Group, Incorporated Third Quarter 2019 Earnings Conference Call. [Operator Instructions]

I would now like to turn the call over to Raphael Gross, Managing Director at ICR. Please go ahead.

Raphael Gross

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

have already the you the If not Company’s found can website, on be www.frgi.com, under Investor section. accessed Relations it, it

begin, today Company not call based we during that information. historical various the I’d you will inform Before that to the on statements make are like

forward-looking plans management business These position to and to from financial the those statements, future that forward-looking Company’s strategy, prove be assurance correct. the projected no expressed outcomes may the budget, or Important future and differ materially statements of or include, what implied could Company differ statements in and results found can regarding without in by and costs can factors Actual be give actual operations. Company’s materially and of such will for such forward-looking is limitation, operations, objectives forward-looking filings. forecasted statements statements results that results expressed SEC the from cause

note be substitute in in certain a discussed, earnings not believes with such considered during should the Company financial as its or to the reconciliation which measures prepared GAAP will can Company’s be release. information Please conference in available Any comparable non-GAAP discussion in today’s be performance. for of and evaluating results is isolation a useful call accordance that GAAP, measures

Chief Financial Montgomery call the Dirk Chief today Executive On Officer, are Stockinger; President Chief Rich Cheri Accounting Officer, and Officer, Kinder. and

the will I turn now, over call Rich. to And

Rich Stockinger

exceptional to by two team. to I individuals our like Raph. leadership would begin you, Thank welcoming

operational chain Most various [ph] consumer at restaurant CFO he was $X includes XXX as Group. XX experience his Bringing countries. Hooters recently Financial Bloomin’ CFO. restaurant, units Chief Retail billion in public International, companies iconic products the with industries, new globally retail as apparel our us and of and as Ascena as Brands us such Officer joined the Montgomery a a and financial in Dirk significant this multiple executive First to

was Officer Second, Hope Popeyes. native and such joined in tremendously bold us that, our was CMO, we is benefit efforts talented of she Burger joining a campaigns with team. as [indiscernible] Popeyes at from Hope I’m an strategies their and Global Fiesta. a as which and a board Marketing have Most developing is marketing focused King. years brand recently Hope people very fan company. concepts effective executive to is marketing position and on Chief experience XX at all big for Diaz and successful excited proven Miami entirely our new she our already on before these will strengthening know over

is want Pollo Fiesta review achieve these its highlight full the the third of on the key I the and to strategic positioning The concept Tropical quarter the potential. state we future direction Before and business of to of company. the results, thoughts existing that business nurturing to

team Our continue to focused will priority. as business Pollo top be a on the has been and

sales Although including channels beginning in on continuing growth to sustainable refined delivery value growth we’re off at business turn year menu catering, to we’ve a simplification market and store challenges, had Tropical, the and accelerating corner a environment we’re comp optimistic tough online. premise by returning platform driven Pollo with offering that

the Pollo has markets. to potential and the continue also to new growth existing that We believe Tropical brand significant

brand party third This the throughout effort consumer beginning customer position early to broaden strong core of appeal while in research We’re will to XXXX. maintaining the firms stages better following. progress our work with

sales based seeing signs we’re early on recent of Cabana, Regarding transactions Taco results. stabilization

the a and in regaining efforts growth. long return in and sales on brand and in process to momentum. with and This to focused Texas will those We’re the to the very efficiency of improvement menu continued management channel legacy team off service market is the simplifying improve effectiveness has operations platform promotion and premise and customer successful combine

believe I we as strong we they management their being and considered settle the a what XXXX into veterans team a those all on of quarter year that, traction very to comprised continue will factors initiatives. lead discuss complete be now and With that We have will more gain company. results roles. mentioned, growth to As of into for our specific let’s details third industry better

compare Florida for since know sales domestic transaction comparable restaurant mainly Taco entire while operate benchmark Texas in versus their it’s Tropical national best which you the As We group peer and operate to and reporting peer their and we trends industry to Cabana think our respectively. with markets Pollo brands footprint.

faired to benchmark basis, by or two-year mind, Compared year benchmark sales a ended well due lapping casual on we a we Box in year during on versus quarter a was a fell when stronger at basis. the we September better but previous which Starting X.X% a than restaurant third below comparable position basis. the by restaurant restaurant third positive on in comparisons With this a notably X.X% rose quarter trends. with it despite both ago comparison Florida X.X% transaction alternatively X.X% formidable comparable Pollo comparable in Pollo Tropical stack slightly started Black markets really and fast for X.X% Tropical, from outperformed operate, the to the sales

basis X.X% basis comparable year-to-date. we from quarter. share restaurant transaction resulted comparison, focus new on comparable and were basis. restaurant transaction by planned outperformed slightly the a [ph] Our the we peers If market of impact the competitive basis our on a the third Black Box on to store in exclude by sales on cannibalization quarter X.X% a and growth driven gained $XXX for year-to-date versus We through both set initiatives sales points

Time [ph]. was Pollo in value the Churrasco cannibalization. Hurricane Pollo Tropical’s both successful our exceeding both including and release, and quarter sales strongest transaction As September LTO box we attribute platform Dorian restaurant excluding popularity the during third comparable noted a month the strength press the We in a and platter Black basis to Steak of volume

our $X.XX and $XX.XX meal a platform continued meal, as TV quality. dinner value days These on freshness on In original chicken seven Time family Pollo days and focus, campaign chicken terms featured everyday media emphasis on and week meal $X.XX real with half and a that’s primary are a guest weekends. items quarter lunch testimonials seven of week,

We make progress building our continue quarter online the including on to key and sales delivering catering, initiatives over sales.

Party marketplace new the BXB greater Catering Pollo various a platform compelling now of by catering. Catering Pollo emphasis the now corporate Pollo innings orders also and gatherings. features but sales as social is places on the by Tropical still at pace. a party a in broaden available our BXC September to are need and informal at to of Tropical price appeal healthy lower our meet and largest of early option platters design sizes menu sequential growing total on X.X% ezCater, for in

in this invested We our sales offering units become Pollo representing food of fact that in September. that sales only mix including are all the points And should through and XX% channel Tropical that fresh, flavorful delivery are we industry uphold data for is infancy very or our and operational is sales therefore so Delivery of delicious, within high known catering what DoorDash through its XX% in total infrastructure can these people, delivery vehicles currently increasingly our X.X% sales optimistic restaurants. for coupled the in available with brand. that can still the standards travels food given even reach the time of We as incremental. well But think sales that, the to catering this become restaurants. ensure to for

locations and We have have efficiency, we also displays pick as raised and DoorDash the DoorDash. restaurants many sales This well a core seen up online ordering prices of rolled by not QX, has complaints pick XXXX. out guest received for offset to at and to XX have rapid feature for via that up those result Pollo To of Pollo cost all for our delivery we’ve created been Tropical for increase. through high increase delivery Tropical

Although the have which very solid up. in seeing locations pick pick rapid rollout, we’re sales a in it is in early we added this

reach. and ends our February Cabana Tabo Pollo to with and in with our we Notably, additional service DoorDash begun have expand exclusivity Tropical discussions to delivery providers both

has largest We making for platforms on is our nascent believe leader market While important market marketplace DoorDash of and within to gaining presence good variety is delivery. meaningful a available a in markets well. in as a food the our Texas Florida the share

versus Turning to million in lease the of brand solid considering our last was versus more and been accounting adjusted slightly Dirk our provide will EBITDA margin $X.X profitability, Pollo the Absent have performance approximately and dollar a would have year moment. up comp been impact details impact, margins year. last would hurricane decline decline.

drive enabling of be The service front. the and next menu our preparation service efficiency. complexity menu item number our overselling out us year were improving that year and speed [ph] on earlier improving a to eliminating major in A operations simplifying remote that this underway of also guest operations We’ll add focus for and and and of platforms interactions. improve food by us is POS this operations are over we rolled initiatives have tablets speed

in third casual restaurant quality, [indiscernible] let’s Cabana. ended our two-year be year mirror when Box our by which with Tropical, by comparable restaurant food year a Cabana, this stack With them attention during started comparable Time the comparable Pollo many remodeling expect XX.X% its so operate, stronger X.X% disappears to Well comparison quarter Value Taco and for position markets sales third by of that, projects Taco platform, we Finally to better basis a Black the X.X% and fast rose it. up prior sales the we about match the X.X% TC our the year. wrap alternatively in brands a Texas September these for of on the underway Taco than transit we’ll compared basis. restaurant interior are it’s turn positive sister transaction versus to to on all a we restaurant Taco benchmark end. Cabana a At restaurants Like a dozen on driven launch fell quarter of comparable in sales a [indiscernible] basis Cabana we [ph] the underperformed

top key momentum the following Time which TC, transactions Based platform Box, on TC includes across very Texas Black The the platform. encouraging on September building Taco Time progress. Index line offerings exceeded the view occasions. the value we as Cabana Benchmark

$X.XX. tacos egg For and bacon, for breakfast, cheese two

$X.XX. ground two beef beans with and tacos for rice lunch, For

For dinner, beans $XX.XX. and for $X.XX six fajitas with chicken family and and two tacos rice tacos and weekend with dining for fajita six flautas chicken for rice beans

optimistic on price Similar very catering delivery. to have on quarter features Cabana building offering and ensure initiatives units catering the good progress for Similar delivery can of a to Pollo, delicious Tropical new Similar to Pollo, and low upholds for we Catering catering sales key now including in made invested menu known we’re represented launch of during to menu Taco as or standards by delicious, end as our sales our November. that flavorful during The and to X.X% fresh of high sales very restaurants been of vehicles flavorful September. cost. offset EzCater’s fresh, food rolled infrastructure at and in to online our social operation total Delivery and out what therefore become marketplace the is food restaurants. any all occasion. people, is September for business that for went this we’re the including within brand Pollo delivery expected to

negative lease delivery result. in perspective of changes. would restaurant flex Absent sales have response and as EBITDA menu, and to level pushback a absolute been last Cabana the lease declined. new storm adjusted the tropical see but year down dollars on prices fell flat restaurant the and raised margins Taco the no comp successfully versus we roughly due labor [indiscernible] prospect impact in of impact impact accounting to levels sales From brand We accounting

on accelerate As is strong financial initiatives restaurant progress dining delivery value building platforms remainder The improved consisting for initiatives. can all menu of results and we they XXXX. only level to quarter for growth the our partially into and a will third conclude, reminder, believe, and investing as these innovations, sales momentum in EBITDA accomplish across adjusted we’ve we the premise including been everyday measure. reflective We what of September To of catering. is non-GAAP off during year sales a made continue

grow further across Our by all store focus attractiveness that guest. off have and We brand to believe our to building minimize interactions to enhance premise opportunity and that Bottle Rocket, an and digital with will capabilities we connections therefore digital friction sales in our our design our both partner remain channels leading create company enhance within continuing to a on strategy business and digital digital development platform. experiences

greater to our over detail. financials to turn call Dirk in With the that, go let through me

Dirk Montgomery

and Rich September express and to support afternoon, we you. myself and our at have centers team spending team restaurants. belief to excited both my I as that interactions you, immersing These and at the to three in our all be part in strong things this showing with appreciate Thank opportunity great my been a Fiesta’s good I’d of how our I’ve everyone. Fiesta conference team. brands opportunities first and have leadership growth time of am members call CFO, to is very This validated Since speak like

all to a Financial thank the I has with and As I public job. who a as experience. my I the is open forward and transparent want some moment to proven constructive much dialog of an already to My to I have a roles, our up Chief Accounting forward engaging to forward also in to develop Kinder, Cheri partner. accessible. she philosophy you very Officer great great we I and did working her my whom analyst in community investment Controller Cheri know CFO Accounting be Interim Chief with of as to forward. partner and role going shareholder take Officer look and company look other Chief to stepped prior move and and be a from with good industry be our Officer to

we With Taco fewer restaurant that, due period. period the operated decreased quarterly revenues from let’s primarily to at with $XXX.X closures ago dive both Tropical results. Pollo XX sales to restaurant and of as versus quarter Total coupled the comparable end locations X% year declines Cabana year prior into million

respectively Tropical’s to continue which total of Tropical and restaurant favorably make consisting restaurant sales in orders quarter progress Pollo XXXX. in the and XXXX. to premise total during total X.X% in sales for the X.X% of We These off Pollo the sales and Cabana Cabana’s Taco catering third X.X% online sales delivery of compared results the of X.X% quarter in and third quarter comprise of restaurant Taco

net Our was $X.X or impact million closed to restaurant income net $X.XX million non-cash negative including $X.XX share $X million, charges. $X.X benefits impairment compared impairment in per million income and and goodwill or $XX.X of a $X.X share of or third $X.X loss diluted per of $XX.X diluted XXXX. tax rent million in per of diluted quarter charges, Net the million a share

accounting and $X.X non-GAAP income in release would share or adjusted the an quarter Please table third diluted higher $X.X to On earnings accounting per adjusted to This compared net the $X million income the basis, details. $X.XX of changes. significant quarter. XXXX. a was in few $X.X have more been per diluted items an our lease of absent share see net like highlight or for in reconciliation I’d million

our gains $X.X transactions approximately as benefit new sales Summary for As expense we Pollo deferred and months from and $X.X Tropical XX, lease Cabana impacted results totaled amortized level, Taco were lease the noted million leaseback respectively. a million for ended quarters, XXXX accounting to eliminated. September back of Amortization, deferred prior standard were previously rent three in gains operations. that

of restaurants close Tropical is respectively. now XX, expense months would period. standard had million the reserves of We expense million restaurants previous to Taco of also lease recognized standard. asset under adopted to lease Close number $X.X as period adjustment when September have Pollo and related account have three for rent a XXXX new we not closed This of ended write previous $X.X for sub accounting Cabana the we totaled reserve and which each an restaurant recorded expense was use rent current the and net for it recognized

quarter. Cabana full resulted in the on additional Finally, XXXX. per in non-cash quarter charge the million a $X.XX of or net goodwill impact The in million $XX.X impairment an unfavorable goodwill we reporting $X.XX for the share impairment Cabana an impairment of Taco of and Taco recorded third had diluted income

our can found as earnings Additional be details accounting items significant of regarding the in as well release these impact XX-Q.

our margins timing compared this hurricane. difficult down items, the year those EBITDA comparisons of would due to last decrease the last versus as noted have driven been year EBITDA by adjusted incentive compensation basis factoring well of and accounting impact After however as XXX company in slightly total adjusted the adjustments. changes accrual Consolidated the year-over-year only consolidated was margins are the decreased I’ve to

consolidated EBITDA As a non-GAAP reminder, adjusted is financial a measure.

mix. which X.X% last was price of to sales turning increase Now comparable lower of of restaurant decline year. which compared consisted mix. Pollo comparable in decrease decreased lower sales offerings our cause a individual approximately Tropical to to brands. primarily lower pricing, X.X% in by decrease for total inclusive average quarter third At Pollo than year’s X.X% Due of restaurant X.X% sales of check XX% a transactions offset and was the in to more X.X% accounted the Time This

impacted Dorian XXX comparable negatively basis Hurricane approximately restaurant by sales points.

basis We XX year opened third Tropical in also impact are past within Pollo yet County base. core in restaurants South cannibalization the we’ve point from comp and estimated Broward over three and during market experienced where an the Florida our half particularly quarter not a the

However new since growing excluding the our us view overall cannibalization total experience enhance a for the it we share brand development positive the while market. the as in allows to guest factor

the in both Black Box indicated, period with September. comparable basis Tropical sales Pollo after the and Rich we positive and the quarter momentum were sales comp outperformed as restaurant benchmarks we As the a positive ended hurricane on for the transaction

million year. defining $X.X level or $XX.X $XX.X the million a There’s adjusted EBITDA, decreased or of sales our a restaurant of Turning Absent by million negative negative measure of last of Tropical the to XX.X% impact million of restaurant margins million restaurant restaurant brands EBITDA adjusted non-GAAP to profitability, new accounting XX lease filings Pollo sales XX.X% $X.X an SEC would loss of changes, and by Hurricane accounting hurricane associated the profit adopting standard approximately improved impact basis lease and because $X.X points. the have estimated with level Dorian.

of and cost a R&M [ph] As particularly favorable percent Pollo of chicken discounting commodities internal expenses restaurant Tropical loyalty Time by higher outsourcing from offset sales lower benefited due reduced headcount. sales because Pollo of to and and

However wage increased The of due restaurant and blow operating higher services. to impact wages brand use other contract party greater cleaning to to comparable and delivery experienced higher to due negative a and sales. rising and in the related our raise overtime third and expenses restaurant expenses addition fees

EBITDA in the to would Pollo by third million XXXX $X.X of $XX decreased of absent lease million higher quarter been from $X.X new changes million Tropical adoption the but accounting standard. have adjusted resulting accounting

have In level adjusted accrual experience also restaurant compensation impact in accounting of slightly the lease we invested our ago, addition adjustments moment to higher to the last year. off due timing referenced margins Pollo support. D&A premise expenses would and the EBITDA incentive been versus for the EBITDA adjusted up Absent lower a of hurricane, in

last menu X.X% restaurant check the X.X% compared Cabana to increase discounted due increases XX.X% of transactions in year’s sales restaurant higher average The offset comparable value increase in the price Partially price by in X.X% decreased platform. increase decline This was for Taco the in offset TC check. of consisted time to increase primarily X.X% introduction items. by shareable and average comparable pricing year. of third quarter

negative due We Taco of sales improvement the comparable TC which sales Tropical of restaurant store impact Similar audited weather to solid by was months the resulted Cabana previous time. which points. also in approximately two quarter demonstrated the in of XX driven compared launch Pollo note comparable that to basis the September of restaurant closures form in of tropical the severe flooding storm to

SEC restaurant tropical level XX% million associated severe Turning the due flat $X.X changes measures with EBITDA, standard or non-GAAP adjusted period. the essentially lease year level storm $X.X restaurant have the impact decreased million compared from adopting to flooding sales defining EBITDA or restaurant accounting was absent million adjusted Cabana $X.X ago our the last by of of weather, the lease to negative of and been There filings impact restaurant margins sales million would our X.X% to brand’s year. a new accounting negative $X.X to profitability Taco

percent due to of and media As incurred due advertising in spend expense higher to discounting operating restaurant Taco other fees. increased expenses sales of cost third higher due activity, a increased party Cabana sales to delivery traditional higher

sales. the staffing restaurant and these addition wages sales wage by It In to higher percent impact related overtime to rates negative lower was improved expenses comparable and partially as were restaurant restaurant offset lower of due utilization. a partially offset by of

Taco lease higher in we Cabana investments from Absent million higher, million $X.X quarter the the to adoption the due resulting to in accounting of also D&A incentive accrual adjusted standard million decreased have compensation, off the adjustments third adjusted of XXXX. been accounting would of support. addition by EBITDA experienced expenses new premise and changes $X.X EBITDA timing in $X.X

of During to the impairment underperforming charge impairment Cabana non-cash write-down million goodwill restaurants related Cabana. to we quarter the $X.X primarily $XX.X charges of recorded and Taco non-cash Taco million for the value

progress comment third and One benefit we’re restaurant and a new comparable driving our result product premise the of sales of catering. trend the the promotion particularly on on as the business, only off innovations show quarter making investments began final of results in partial to

of in expect XXXX. that see benefits We the quarter attraction the fourth more pulley to [ph] and

an repurchase authorized of pulling items, for additional for program by authorization to a of bringing common press we additional to repurchase additional share million announced the forward. capital repurchases increase release returns now in our going total shares. the share our improve to continued shareholder stock few million This repurchase in intent shares shares Turning X.X financial X.X underscores

previous XXX,XXX our million February authorizations, common during shares shares third two itself. quarter over the approximately of X.X Under including we’ve XXXX stock since repurchased

and the time this may number the at the repurchases X.X modified has available be any Board repurchase. Please shares a It on terminated of also limit. number timing are the increase, factors Following program time of that depend will of that Directors. by of approximately there and and no million repurchased superseded shares also for now suspended, note or

million the to open $XX and XXXX year. three restaurants our half this $XX capital catering now including expect implement to it equipment. to for and Taco and of expenditure IT systems’ and bottom XXXX $X million and company previous new development to restaurants, this develop million to call range year. million Cabana million projects to be respect $XX three other to million in CapEx $XX Pollo we our $XX plan our expenditures, $XX at of We to million Tropical restaurants maintained With We

than We’re enhancements million $XX From $XX remodeling platforms perspective, including has support million by our available both of ratio as new facility the defined adequate $XX.X borrowing as times. revolver million equipment simple as more loan capital low in liquidity and EBITDA $XX as credit capacity also for provided X.XX at investing end company leverage at for to on the well other maintenance. our at defined our restaurant menu line the our as agreement brands to of million to adjusted million quarter. balance is $XX a of

for million Looking the to than and would equipment due year ahead facility to company be and our range year, lower lower expect about few expenditures million $X and new restaurant openings. our $XX to we current CapEx XXXX new to next enhancement

our place to prepared forward-looking on for versus stable this at we the specific expect based we’re we commitments XXXX remainder say, commentary supply year Directionally commodities. other Although of any can plans. food the key in cost XXXX prior that across not time and provide CapEx beyond

Fiesta at and We line We forward week many you provide at we Conference plans will Stephens our additional next the to for XXXX interest on Restaurant year. look early for your Group. for now of up Operator? questions. will Thank meeting the open details next you


first the Incorporated. ahead. comes Will with go Please Slabaugh Stephens, Instructions] [Operator question from

Will Slabaugh

I could additional You color improvement was Pollo. said some at at mentioned positive September time quarter-to-date wondering improvement into an you if that us just continued you of terms level period. in the if in one both I the and and think at of give brands there

Dirk Montgomery

date transaction of continued basis overall Taco we so sales Yes, October the outperformed in Pollo for we’ve the that, have comp positive the and and say on outperformed both benchmark can benchmark in our on the trend we’ve index comparison Tropical October trends the so a to traffic terms Cabana in basis. just

overall trend the the the at is this looking course third the in brands, the for two of quarter Just quarter. over

If September August September trend to within August points its you the the basis XXX and Pollo and combined from to the trend July Tropical improved from XXX August points trend Taco the on to trend July July, Cabana basis improved combined compare September. quarter

Will Slabaugh

that. one your could other current And how On recent you’re Thanks you’ve made that to there it. about [indiscernible], changes the changes any I bit I could. forward? to talk may we’ve had about more if you seen strategy Pollo, and little a some versus recently for that approach value? thinking going Got be know need

Rich Stockinger

Florida. Sure, Will. platform at At South now been It’s Rich. the significant we Especially brand. the has to right in as see Pollo Time times difficult

you Hawaii performing As the to Honolulu, just tie between and is Miami, Florida. know amount [ph] NavTrack year-to-date the worst ADI is a

company. now though value offerings and going [ph], down entire launch from to no $X.XX with in will that doubt Miami-Dade effected throughout $X.XX the did Pollo to has no been there’s that that the price here Time with I significant, we say that raised So test have today negative impact the $X.XX we

don’t a the is out. bit prices that reducing us discount helping like I but So raised

platform thing $X.XX boney it chicken that, our steak chicken, rice, today have happens but Grillmaster we price now Pollo see still food other what related is The beans as it Time for $X.XX. offsetting right chicken, was items Trio. Trio plantains launched higher Grillmaster some as as it that in and we’ve includes an item protein Early, and more includes includes we with just sausage, and well and quarter we’ll keep for platform

Will Slabaugh

Got you. it. Thank


Piper ahead. Please from Jaffray. Long The go Joshua next question with comes

Joshua Long

it’s is opportunity, for sense you model. to have to we if you longer what coming initiatives the think and brand brands term expect then teams what that be welcome ideas thoughts to might also, to see be on news might portfolio anything there’s you as a able outlined us give [indiscernible] where before executive the you you initiatives and Exciting the curious can some share Excited and but as operational early I early was aboard. on have, realize able

Dirk Montgomery

This is Dirk.

laid Hope quality I think, At would that the about team. Rich on team out are the the the one and along drivers strategies main the excited opportunities and general and and of with quality a can’t is were the about both of here I management of tell what really the entire that, priorities I call at opportunities that the really I that team. the the the level beginning you say are those frankly management focused of

Hope I I joining team. the in and both think

will us practices in seen of we’ve both think our perspective is I this that kind so best that effort I one that in revenue see optimization can from item at I is past, hone on, implement a other for we think my refine we opportunities more and think Hope fully analytics. restaurant us be more to and companies that working on joint effective and of

optimizing be strategies. So working to we’re going on promotion pricing our and our

us to of work and terms much I going repositioning efforts done, and both Also track Pollo we’re more again, level think of us some I think I Hope the right Tropical analytics. like feel on of in think I a effort repositioning that therefore that to, higher there to opportunities we be before experience I bring XXXX. brands very there’s to we I that head look and forward think both into involved different been to as get in in that think deploy we’re

Joshua Long

possible kind Great, optimization sense a of revenue thank to to investments fruition. of trying of lot sort timeline able a help additions on your come teams we just be when some for potential any Curios make you or the ideas see initiatives of these might to for of get the to on, that.

Dirk Montgomery

of front Sure, staff strategies. increases not implement I’d say staffing the on level those material a to

some in us of space retail in just companies the We’re which help firm required firms to do and research have third data analysis sensitivity evaluating run behind effort party analytics the the a of used lot restaurant big kind that to to do regression support really analytics. of actually bringing that the

Joshua Long

start we’ve term that and the for Pollo what and We’ve different going opportunity on due its thank a following grow core some now. in while one outside brand how then, both for in Great, learned in would seen thinking Curious been and diligence for doing and [indiscernible] research about one over the forward. of me opportunities like might overtime terms we you has years terms to existing brand markets, markets those of look where growth the expanded Pollo markets. new what larger have of

Rich Stockinger

talking we but your what strongly going Pollo [indiscernible] were as brand that’s we that’s and the We on do the it that of Pollo that that’s past we healthiness positioning It’s people major very products. to of forward. and in made any were want going we’ll food, brand positioning be we positioning focus to as this outside the taste And feel keep mistakes will potential the because core of the we Rich, not of move in to, to the the have determined, about our food the exactly the new repositioning do the make as what as as and forward, food to have as well as other relates markets. versus forward in to research abreast heavy be what need too brand need

Joshua Long

Great, what or year, should to and of some consistent the remodels anything this with XX thank one that me. kind and go or will going and base the there. be changes is you’d share how that new there’s previously seen thinking look units, whistles, we’ve you remodels about positioning, much bells on feel, in XX so through new at you this how test be Excited these that last able dozen needs Pollo one sense we of about be from to makes the after

Rich Stockinger

Well right it’s Rich. again now,

about We’re same what programs. work look now like, not done it’s so the of same the may new number, about for may the yet projecting the year, about again We spend amount just brand and positioning don’t have of right the we CapEx same remodels. the type remodel next or normal probably in that

Joshua Long

you Great, thank so much.


go the question with Instructions] Raymond ahead. James. next from comes Vaccaro Brian [Operator Please

Q –Brian Vaccaro

you elaborate Pollo value on and I Cabana mix the sales within days environment. do to that just think Time and Taco brand CT the programs on each I right balance it’s Time circle you’re know at could current you back wanted on there, seeing still and but those for that’s early each

Dirk Montgomery

the about perspective question? on of so part is but total the it’s mix of mix running X% second total Pollo at mix to could and In you September early sorry, Taco launched of at the Taco its in terms trending in I’m that the just XX% X% mix half revenue. we days the Sure, is about of repeat

Q –Brian Vaccaro

do sales Rich, current and that side you Taco, are need for with that in maybe on do early for right you the balance. environment. it’s struck comfortable to think, Pollo the just And level you you or that think mix any of move you’ve know of too I but the it’s

Rich Stockinger

we and very higher socioeconomic [indiscernible] right intrusion conditions, just comfortable we’re XX% that too think when that’s positioned value it’s to It’s has been do based on successful be and three have which if some the out. offering is guaranteed you conditions week because in again like what economic to-date would in we South impacted like upon Keep mind, doing items again. where now competitive a we Chick-fil-A. consistent I’m should [indiscernible] platform, to doing we early have your that are not. priced AKA we EBITDA Florida of where now the almost the counties business or currently in tell, platform negatively right in to are week offset it’s be, various but

Q –Brian Vaccaro

commodity could in XXXX? the little into bit that you proteins on contracts on then and the Okay the over a key outlook, looking are elaborate place

Dirk Montgomery

XX% with total of happy a the broad our we’re year about pretty in for Sure, locked we’ve that. so mean complex level commodity I

at schedule cost ahead XXXX. think out prior we’ve from been years as as look we of actually we’re through year-over-year pretty we stable we’re said, I where little and looking bit in

Q –Brian Vaccaro

you. thank right, All


Gross remarks. our Raphael conference any for like concludes question-and-answer closing session. over turn This I to to would back the

Raphael Gross

your Fiesta Thank have interest much good you a so evening, Group for everyone. Restaurant and in


concluded. now The Thank conference presentation. is you today’s for attending

You may now disconnect.