Margin Outlook
Q: Progress toward long-term margin target?
A: Management reported Q1 restaurant margins at 17.4%, squarely within the target range of 17–18% with expectations for modest year‐over‐year expansion despite upcoming commodity pressures.

Commodity Inflation
Q: What is expected quarterly commodity inflation?
A: They expect Q2 commodity inflation to be higher than Q1 yet still below the full year average, with Q3 and Q4 finishing slightly above a 3% annual estimate.

Beef Supply
Q: How will beef supply affect costs?
A: While an initially favorable beef supply lowered costs, management anticipates tightening later that could drive higher beef costs, with non‐beef items remaining flat.

Future Pricing
Q: When is the next pricing increase planned?
A: They will review pricing feedback from operators around August–September and consider adjustments in October while taking a conservative approach.

Jaggers/G&A
Q: Will Jaggers openings and G&A leverage improve?
A: With limited new Jaggers openings this year, management noted that G&A leverage might be harder to gain in Q2–Q3 due to ongoing technology investments and bonus accruals.

CapEx Cost
Q: Can new store capital costs be reduced?
A: They expect to maintain near-constant capital investment averaging around $8M per new Roadhouse, indicating little change in CapEx cost structure.

Labor Productivity
Q: What drives labor productivity gains?
A: Improvements stem from more stable staffing and longer-tenured teams, which reduce turnover and enhance operational efficiency.

Capital Allocation
Q: How will capital be balanced across brands?
A: The focus remains on core Roadhouse growth, with ongoing pipeline development for Bubba’s and accelerated franchise-backed Jaggers deployments, though no specific percentages were disclosed.

New Store Sales
Q: What explains new stores' weekly sales trends?
A: New stores demonstrated lower average weekly sales partly due to a high-performance anomaly from California outlets last year, yet overall performance remains satisfactory.

Unit Openings
Q: Will under-construction units open by year-end?
A: Management is confident in achieving roughly 30 company-owned openings this year by converting under construction units on schedule.

Operating Expenses
Q: Any changes in other operating expenses?
A: Expense increases were driven by higher general liability adjustments and sales-linked costs, while digital kitchen conversions are proceeding with notably positive feedback.

Brand Comparison
Q: Why is there a gap between brands?
A: The Texas Roadhouse brand benefits from a longer market legacy, whereas Bubba’s operates on a smaller scale with lower same-store comp growth, though both generate solid returns.

Mix & Pricing
Q: What was the menu pricing impact?
A: Menu pricing held steady at 4.9%, with an initial negative mix of 80 basis points narrowing to 20 basis points in early Q2.

Bubba’s Margins
Q: What margins are planned for Bubba’s?
A: Management is targeting margins in the 17–18% range for Bubba’s, mirroring Roadhouse, with strong local operator efforts driving improvements.

Commodity Contracts
Q: How fixed-price are beef purchases?
A: Only a small fraction of beef is purchased under fixed-price contracts, leaving the majority subject to market volatility.

Staffing Efficiency
Q: How are staffing hours tracking with traffic?
A: They aim to maintain staffing growth around 50% of traffic increases, ensuring operational efficiency as customer numbers rise.

Off-Premise Trends
Q: How did off-premise sales perform?
A: Off-premise, or to-go, sales expanded robustly, particularly in later periods of Q1, reflecting improved execution and guest convenience.

Competitive Advantage
Q: Can TRH attract peers’ customers?
A: Management remains confident that their strong focus on quality, value, and service will appeal to value-seeking customers, especially as macro conditions tighten.

Mix Trends
Q: What drove sequential mix improvement?
A: Sequentially, mix improved as negatives in alcohol and other add-on items flattened, underscoring the brand’s enduring everyday value proposition.

Extra Week Benefit
Q: What is the EPS boost from the extra week?
A: The additional operating week in the 53-week year is expected to boost EPS by roughly 4%, with some margin variability.

Butcher House
Q: What’s the aim of the Butcher House initiative?
A: The initiative is intended primarily to raise brand awareness, rather than to drive frequency or provide new customer data.

Bubba’s Breakdown
Q: What are the comp details for Bubba’s?
A: Management did not offer a detailed breakdown, only noting that Bubba’s comp performance is lower than Roadhouse’s due to scale differences.

Monthly Trends
Q: Any caution for monthly sales comparisons?
A: Typically, May outperforms April while June mirrors April, with regional sales trends remaining largely consistent across geographies.

Digital Payment
Q: What share uses digital table payment?
A: Approximately 80% of guests are using the digital, pay-at-the-table system, enhancing transaction speed and convenience.

Event Importance
Q: Are holiday events critical to performance?
A: Yes, key events like the Triple Crown and Mother’s Day are viewed as significant drivers of foot traffic and sales, playing an important role in overall performance.

Easter Impact
Q: Did the Easter shift affect sales?
A: No, because Easter fell squarely within the reporting period, it did not impact same-store sales performance.