Peter Soley

Peter Soley asked about the extent to which beef for next year is already locked in and if a potential moderation in beef prices could lead to a change in the 2026 inflation targets. He also inquired about the impact of the KDS rollout (95% complete) on table turns and how the company balances speed with maintaining the guest experience.

Answer

Michael Bailen, VP of Investor Relations, stated that approximately 40% of the overall commodity basket is locked for the first half of 2026, confirming that moderation in beef expectations could influence the inflation forecast. Jerry Morgan, CEO, noted that the KDS provides valuable information, helping to maintain a balanced guest experience of around 54 minutes, ensuring guests feel important but not rushed. He added that technology, including Roadhouse Pay, enhances the overall guest experience.

Peter Soley inquired about the percentage of beef locked for next year and the potential for moderation in 2026 inflation targets, as well as the impact of the digital kitchen system (KDS) on table turns and the overall guest experience.

Answer

Michael Bailen, VP of Investor Relations, stated that approximately 40% of the overall commodity basket is locked for the first half of 2026, but did not specify the beef percentage for competitive reasons. He confirmed that moderation in expectations could influence the 2026 inflation forecast. Jerry Morgan, CEO, noted that the KDS provides valuable information to balance speed with guest experience, maintaining an average visit time of 54 minutes, and enhancing the overall dining experience.