Bravo Brio Restaurant Group's CEO Discusses Q1 2014 Results - Earnings Call Transcript

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 |  About: Bravo Brio Restaurant Group, Inc. (BBRG)
by: SA Transcripts

Operator

Please standby. We’re about to begin. Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Bravo Brio Restaurant Group First Quarter 2014 Earnings Conference Call. At this time, all participants have been placed in a listen-only mode. And the lines will be opened for your questions following the presentation. Please note that this conference call is being recorded today, April 29, 2014.

On the call, we have Saed Mohseni, President and Chief Executive Officer; Jim O'Connor, Chief Financial Officer; and Brian O’Malley, Chief Operating Officer.

Now, I would like to turn the call over to Jim O'Connor, Chief Financial Officer. Please go ahead, sir.

Jim O'Connor

Good afternoon, everyone, and thanks for joining us today. At the market close, we issued our earnings release for our first quarter 2014 financial results, which can also be found in the Investor Relations section of our corporate website at www.bbrg.com.

Please be aware that part of our discussion today will include forward-looking statements. These forward-looking statements are not guarantees of future performance and one should not place undue reliance upon them.

Forward-looking statements are also subject to numerous risks and uncertainties that can cause actual results to differ materially from what we expect. We refer you to our recent SEC filings for a more detailed discussion of the risks that could impact our future operating results and financial condition. And like all of our earnings and other press releases, webcasts and presentations, these filings can be accessed through our corporate website.

I would like to now turn the call over to Saed Mohseni, our President and Chief Executive Officer, for some opening remarks. Saed?

Saed Mohseni

Thank you, Jim, and good afternoon, everyone, and thank you for joining us today. We are pleased that our quarterly financial results were in line with our expectation given the extreme winter weather experienced by majority of our restaurants during the first quarter. Our restaurants’ operating team executed at the high level while effectively managing costs despite the significant fluctuation in sales caused by severe winter weather.

I would personally like to thank each of our team members for staying focused on running great restaurants and consistently delivering outstanding guest experience while managing their P&Ls. While the weather is beyond our control, we do note that comp sales at the restaurants in warmer climate such as Florida in Southwestern U.S. were generally positive.

This is why, among other reason, we continue to diversify our geographical footprint by building more restaurants in the South and West. In fact, five of the six restaurants opening this year are either in the Southern U.S. or in West Coast.

Guest counts declined at both brands during the first quarter. Although BRIO’s traffic benefited from its presence in Florida and other Southern states relative to BRAVO!, BRAVO! traffic was further impacted by more of its price-sensitive guests being enticed by competitive discounting or simply stayed home. The lower mix of aspirational guests did help raise BRAVO! average check by more than 6%, but that was not sufficient to offset the decline in traffic.

As always, BBRG mission is to be the best local Italian restaurant in every market, and we set ourselves apart within the upscale affordable segment through the quality of our food, quality of our service and our exceptional ambiance and value. These are the building blocks of every great restaurant company, the means through which our brands will be successful over the long term.

You may recall that we launched our Lighter Side of Tuscany and Lighter Side of Rome menu in early 2013. The popularity of these offerings, particularly among female guests, remains as strong as ever with dinner mix still tracking at over 20% at BRIO and 16% at BRAVO!

We have mitigated the impact of light menu mix on average check, particularly at BRIO, through the introduction of separate light side menu at lunch and dinner, but more importantly we view our emphasize on healthy dining within the Italian segment as an important attribute for both brands. Brian will detail other initiatives that we are working on or have recently implemented during his formal remark as well.

We continued to make progress and are repurchasing shares under our $20 million stock buyback authorization and we utilize all the means at our disposal to continue improve shareholder value.

And now, Jim O'Connor, our Chief Financial Officer, will provide a financial update. Jim?

Jim O'Connor

Thanks, Saed. Let’s now delve into our first quarter financial results for the 13-week period ended March 30, 2014. Total revenues decreased slightly to $102.6 million from $103.1 million. The top line decrease was a consequence of lower comparable restaurant sales, due largely to the weather, which was partially offset by 49 additional net operating weeks.

Consolidated comparable sales decreased 4.8% and consisted of a 7.7% decrease in guest counts partially offset by a 2.9% increase in average check. We had 93 restaurants in our comparable sales base at quarter end, consisting of 44 BRAVO!s and 49 BRIOs.

Restaurant revenues at BRAVO! decreased 7.6% to $37.1 million, compared to $40.2 million in the prior-year period. Comparable sales decreased 5.5% as guest counts declined 11.9% and was only partially offset by a 6.4% increase in average check.

Average weekly sales for comparable BRAVO! restaurants were $62,500. Restaurant revenues at BRIO increased 4.2% to $65.5 million, compared to $62.8 million in the prior-year period. Comparable sales decreased 4.4% due to softer guest counts, which were down 4.3% while average check fell 0.1%.

Average weekly sales for comparable BRIO restaurants were $86,000 even. Note that 18% of our BRIO restaurants are not included in the comparable base because of its higher rate of development than BRAVO! in the recent past.

Now, let's review our expenses in greater detail. Cost of sales, as a percentage of revenue, improved 40 basis points to 25.8% as we benefited from higher overall average check, which was only partially offset by higher commodity costs principally for seafood. As a percentage of revenue, labor costs rose only 10 basis points to 35.6%. We were pleased with how our operating teams managed labor costs given the challenges associated with staffing due to the extreme winter weather.

Operating costs rose 80 basis points to 16.4% and occupancy costs rose 60 basis points to 7.2% with both of these line items being negatively impacted by sales deleveraging.

Taken these four expense categories together, total restaurant operating cost increased $0.8 million or 0.9% to $87.3 million from $86.5 million in the same period last year. Our overall restaurant level operating profit decreased $1.3 million to $15.3 million from $16.6 million, while restaurant-level margins fell 110 basis points to 15% compared to 16.1% in the year-ago period.

General and administrative expenses decreased 2.1% to $5.7 million, compared to $5.9 million in the same period last year. This decrease was driven by lower salaries and wages, as well as lower travel costs. As a percentage of revenue, G&A decreased to 5.6% from 5.7% in the first quarter of last year.

Preopening costs, which are driven by the timing and number of restaurants openings in a given period, were $0.3 million compared to $0.7 million in the year-ago period. We did not open any restaurants in the first quarter this year but had three under construction, whereas last year we opened two restaurants and had one additional location under construction.

Depreciation and amortization expenses increased $0.1 million or 20 basis points to 4.9% of revenue due to deleveraging from lower comparable restaurant sales. Net interest expense declined to $256,000 from $317,000 because of lower average outstanding debt. Outstanding debt at quarter end was $11.2 million, compared to $15.7 million at the end of fiscal 2013. Net income was $2.9 million or $0.14 per diluted share compared to net income of $3.4 million or $0.17 per diluted share in the same period last year.

And now, let me review our annual expectations for 2014 that we first provided in February. Full-year revenues are anticipated between $420 million and $430 million, reflecting an estimated range for comparable sales of minus 2 to positive 1, as well as revenue contributions from six new restaurants, consisting of two BRIOs modeled at average unit volume of 85,000 per week and four BRAVO!s modeled at average unit volumes of 65,000 per week. These assumptions both reflect the historic median volumes at both brands and are unchanged from the prior year.

Preopening costs will be between $3.5 million and $4 million. Our net capital expenditures are projected between $22 million and $24 million and will be funded entirely through operating cash flows. We are raising our estimated annual commodity inflation range to 3% to 4% from 2.5% to 3.5%. While seafood, principally shrimp, is still the largest cost driver this year, we are seeing elevated cost pressures in beef, pork and dairy.

Our annual diluted earnings per share range is between $0.78 and $0.84, which assumes an estimated diluted share count of 20.2 million shares and an estimated annual effective tax rate of approximately 28%.

During the first quarter, we repurchased approximately 260,000 shares at a cost of $4 million. We currently have just under $14 million remaining on our $20 million share repurchase authorization, which expires at the end of fiscal 2014. Since our share repurchase program began in the fourth quarter of 2012, we have repurchased approximately 894,000 shares at a cost of $13.4 million.

Now, I would like to turn the call over to Brian O’Malley, our Chief Operating Officer, to discuss the operations. Brian?

Brian O’Malley - Chief Operating Officer

Thanks, Jim, and good afternoon. Earlier this month, we launched a weekend brunch program with an entirely new selection of classic dishes with premium quality ingredients such as house-made biscuits, Fontanini turkey sausage, cage-free eggs and more. We view brunch as an increasingly important day-part that has the opportunity to grow over the long term.

The new brunch dishes offer more flavor, value and variety for our guests and were added to our existing weekend lunch menu. Guests now have the option of choosing from our new selection of breakfast classics of any of their long-term favorites.

Brunch price points are between $7.99 and $10.99 at BRAVO! and $9.95 and $11.95 at BRIO. The quality and quantity of the food matches the rest of the core menu. My personal favorites are the Sicilian Omelette made with Cherrywood smoked ham, turkey sausage, bacon and tomato compote and the berries-and-cream French toast stuffed with mascarpone cream cheese, honey, cinnamon covered with fresh berries.

We think guests will come and view our brands as places to gather with friends and family and enjoy offerings that appeal to many different tastes. On March 19, we celebrated our fourth National Ravioli Day by offering 50% off all Ravioli entrees. This event was marketed 100% through public relations and social media and was very well received.

National Ravioli Day in March, National Lasagna Day in July and National Pasta Month in October have become traditions that our core guests look forward to each and every year. They are great locations through which to celebrate our talent and heritage and provide guests with not only great value, but an opportunity to enjoy a current favorite dish or perhaps experience something entirely new.

We also rolled out a new happy hour bar program in the first quarter between the hours of 3:30 and 6:30 PM called BRAVO! Hours for BRAVO! and BAR BRIOSO for BRIO. Price points are tiered between $4 and $6 and include several new items such as Crispy Eggplant Fries and Beef Carpaccio, along with a variety of specialty cocktails, beer and wine designed to drive trial and frequency.

Saed already referenced the popularity of our lighter side menus which were introduced about a year ago. Like all of our food and beverage offerings, we’re always striving to improve them in hopes for fostering greater royalty and encouraging more repeat business. We are, therefore, adding more variety to our lighter side offerings as well as incorporating these options into our core menu rather than the single-page handouts.

These initiatives are ongoing and geared towards positioning ours as the destination for healthy choices within the Italian dining segment. We’re, of course, continuing to execute our popular traditional Italian favorites.

Later this quarter, we’re going to be introducing a new BRIO menu with some seasonal summer offering such as the (indiscernible) pizza with roasted artichoke and truffle oil, as well as expanding the brand’s lighter side menu. Finally, we are in the process of testing a new feature of our loyalty program called the eat, repeat and reward. The goal of this feature is to both encourage repeat business and to thank our guests for their continued loyalty while ensuring that their expectations are exceeded each and every day.

So with that, I would like to turn the call over to Saed who will wrap up our formal comments. Saed?

Saed Mohseni

Thank you, Brian. Before taking your question, let me leave you with some concluding thoughts. Even with the weather issue now behind us, we’re still cautious on the state of casual dining consumer. Our comp restaurant sales range for the year suggests modest sequential improvement for the balance of the year, which we think is achievable given the initiatives that Brian just referenced.

Turning to development, our expansion plan for 2014 consists of six restaurants, two BRIO and four BRAVO!s. Our first opening of the year was just last week, a BRAVO! in Charlotte, North Carolina and it will be followed by a BRIO opening in Irvine, California in the third quarter.

In the fourth quarter, we are going to open four restaurants in markets such as Sarasota, Jupiter and Plantation in Florida. These are high-quality sites which we believe will be a great addition to our portfolio of restaurants.

And while it will be premature to discuss our 2015 plans, we are encouraged by the opportunities that are available to us. Before we take your question, I wanted to make a mention that Forbes Magazine recently named BBRG as being one of the Top 100 Most Trustworthy Companies in the United States and only one of the two restaurant chains with a $1 billion market capitalization. The ranking reviews thousands of companies for numerous factors over four quarters and we’re proud that BBRG was listed among the 100 companies with the most sterling reputation this year.

We think this recognition is a testimony to having two great brands and the people within our company who are committed to our shareholders, our guests and dedicated to quality. I thank each and every one of them for their hard work and dedication.

So with that said, let me thank each one of you for your time and interest in BBRG. Operator, would you please open the line for questions?

Question-and-Answer Session

Operator

Thank you. (Operator Instructions) We’ll take our first question from Andy Barish from Jefferies.

Unidentified Analyst

This is (indiscernible) for Andy. A couple of quick questions here, first, on the lighter side menu, as it goes into the regular menu and stops being a separate piece, I guess how do you think about what the long-term kind of mix should be there? And you talked about BRAVO! losing some of the aspirational guests and how they helped the mix? Once that traffic comes back, does that kind of change again?

Saed Mohseni

No. We actually believe that healthy dining is a trend for here to stay, and therefore our goal over the long term is to make sure that both BRIO and BRAVO! have substantial amount of options for guests on the regular menu. And therefore, rather than including the Lighter Side of Rome and Lighter Side of Tuscany as a separate program, our goal is to incorporate that into the body of the menu and continue to expand it, because we believe over the long term that is exactly what the guest is looking for; quality food with great flavors at the same time healthy products.

Unidentified Analyst

That makes sense. And I know it’s pretty early still, but can you guys talk a little about the new units, the Fort Worth in the Southern California, Philadelphia, Boston, sort of how last year’s second half openings have been doing, kind of suffered the weather impact?

Saed Mohseni

Sure. Ex weather, I think we’ve been pleased with the openings last year. I think we had a good development year in 2013. Our entree into California in Rancho Cucamonga was solid. And you mentioned our BRAVO! down in Texas, that was also a solid opening too. So, I think kind of broadly our 2013 class is shaping up to be pretty good.

Operator

We’ll take our next question from Michael Halen with Sidoti & Company.

Michael Halen - Sidoti & Company

Do you still expect 2014 restaurant operating margins to be similar to last year?

Jim O'Connor

We do. That is our plan. We obviously had a challenging first quarter with the weather, but I think that as you saw with how we managed the restaurant margin through a pretty tough sales quarter, I think our expectation is that we will meet or even exceed last year’s operating margin.

Saed Mohseni

While we were not pleased with the fills, we were quite pleased with how the company managed this quarter. So, our goal, our forecast right now for the year is to be similar margin profitability as last year.

Michael Halen - Sidoti & Company

And can you just remind me, does the share count guidance account for share repurchases?

Jim O'Connor

We did. We reflected what we repurchased in Q1.

Michael Halen - Sidoti & Company

And I guess on more, can you please break down the system-wide comp between check and traffic?

Jim O'Connor

System wide, we were 4.8% in terms of our overall comp, 7.7% -- down 7.7% in terms of traffic, and the difference at plus 2.9% is the overall check.

Operator

We’ll take our next question from Chris O'Cull from KeyBanc.

Chris O'Cull - KeyBanc

By our account, it looks like the brands have seen traffic decline, I guess, the past eight consecutive quarters. And I was just wondering if you guys had done any research of lapsed users to see why they are no longer visiting or why they’re not visiting us frequently?

Saed Mohseni

Yes. We’ve done studies through a third-party to evaluate both of the brands, and I think that again we saw some really great momentum in the latter part of the Q4 of last year and even the beginning of this year, the first three weeks of January was extremely good for us. Unfortunately, the latter part of the quarter, for various reasons, weather being the main reason, we lost some traction.

So, I think that the consumers still rate the concepts extremely well. I think that value, quality, ambiance still ranks extremely high among the group. Many programs that Brian talked about are intended to add other options for our guests to use us, i.e. brunch program, happy hour program. We recognized that people eat differently, and we -- our goal is to make sure that we provide all the options for them.

Chris O'Cull - KeyBanc

Saed, do you think the amount a guest spends per visit has become an issue for either brand, and I’m not talking really about what they get for what they pay, meaning value, but more around just the affordability of visiting the brands, has that become a factor at all?

Saed Mohseni

Obviously, there is for every segment of the society, for every market, there is a core guest who looks at a $25 at BRIO as expensive and at the same time looks at $25 as inexpensive. As a matter of fact, if you look through the sectors right now, the concepts that have done extremely well are the ones that have extremely high check, $45 plus.

So, I don’t think the value is the issue. I do think that it’s more about external effects that have an impact on it, while we are cautious of what the value is and that’s why over the last two years, you’ve seen us roll out happy hour program, you’ve seen us look at -- we’ve rolled $7.95 lunch at both concepts. So, we’ve continued to make sure that the value is still there on a day-to-day basis for the guest base that is more price sensitive.

With that said, we have always known that at times we do lose some aspirational guests, especially at BRAVO! which are more attractive to what we call, external deals, you can eat pastas for $7.95 or take one -- buy one, take one home, those kinds of promotions generally we have shied away from doing.

Chris O'Cull - KeyBanc

I was going to ask what’s the check average difference between BRIO and BRAVO! at this point?

Saed Mohseni

It’s about $5.

Chris O'Cull - KeyBanc

And then, moving to a question about the labor, I think, Brian, labor has been incredibly well -- I mean has been very well controlled. Given it’s not a linear function of guest count changes, have you -- how are you able to reduce the labor dollars per store so effectively?

Brian O’Malley

Well, I think the teams have done a great job of doing a couple of things. One, we implemented about a year and a half ago, two years ago a program, (indiscernible) program which also has helped us manage the business, kind of with the in-times and the out-times and given us a much better view of what we’re actually spending, what we’re actually scheduling versus what we’re looking at once we’re actually there.

So, labor performance programs have helped a lot. And just really an overall awareness to what it really does take to manage the business and the teams have really looked at what times they need to bring people in and then at the end of the shift, what we’re really doing is focusing on getting people out the door as quickly as possible. So, they’ve just done a really good job of managing day-to-day to be honest with you.

Chris O'Cull - KeyBanc

Jim, should we see - are you expecting labor to be relatively flat with flat comps this year?

Jim O'Connor

Yes, I think that if our trends continue, which I expect that they will, I think that with flat comps, I think you’ll see flat -- no worse than flat labor just because we’re running our restaurants at a very efficient pace right now.

Chris O'Cull - KeyBanc

Could you see labor costs down year-over-year with --?

Jim O'Connor

I don’t think so. I think that again keep in mind that this year there was also some minimum wage increases throughout some states that we operate in i.e. Florida, so I don’t think we’re going to see a downturn unless there is a substantial increase on the top line.

Saed Mohseni

And -- but the healthcare costs are also impacting us here this year, so --.

Operator

We’ll go next to Imran Ali from Wells Fargo.

Imran Ali - Wells Fargo

I think you touched on this earlier, but can you talk about your same-store sales progression through the quarter?

Saed Mohseni

Yes, I think the -- from a quarterly perspective, I certainly think the middle of the quarter was the most challenging when we hit the worst of the weather. We did -- have seen a little bit of sequential improvement since then, but I think each of the three periods was impacted at some level by weather.

Imran Ali - Wells Fargo

And then, have you or is it possible for you talk about how comps are trading so far in Q2?

Saed Mohseni

Sure. Right now, we’re looking at about 2.9% negative with BRAVO! or BRIO outperforming BRAVO! at this time.

Imran Ali - Wells Fargo

And lastly, I think you gave your updated commodity outlook earlier, can you talk about how much of your food needs are contracted at this time, and what the biggest food items might be?

Saed Mohseni

Yes, so we have about half of our total what can be contracted is contracted at this point of time, and then from just a mix perspective, we’re pretty well distributed that no single commodity really is significant that overrides the other, so a pretty good mix commodity basket. So, we’re looking at about 4% of sales between beef and produce and seafood and chicken, and about 3% to 4% for dairy, so we’re pretty well diversified in terms of our overall commodity basket.

Operator

We’ll go next to Peter Saleh from Telsey Advisory Group.

Peter Saleh - Telsey Advisory Group

Just wanted to ask about the Easter shift and how that may have impacted you in the first quarter and also the impact that you are expecting in 2Q of ’14?

Saed Mohseni

Easter shift is really not a huge impact for us, because what we gain on Sunday we sometimes lose on a Saturday, so really it’s not as impactful for us as one might expect. So it was kind of neutral in Q1 and it will be neutral in Q2.

Peter Saleh - Telsey Advisory Group

And then, can you just talk about the loyalty program and how that’s going to be -- is that going to be changing and the eat, repeat, reward, what exactly is going to be, I guess, changing from heron out?

Brian O’Malley

I think a good chunk would be us expanding. The eat, repeat, reward again is an expansion of that loyalty program. One of the things that our guests has talked about is that they like to see more for that guest that comes in and dines more frequently. So we will continue to do the surprise and delights that we’ve done with the loyalty program in the past. And the eat, repeat, reward is actually in test right now. We’re pleased with where we are and we look forward to expanding that program from even -- as the year progresses.

Peter Saleh - Telsey Advisory Group

And then Saed, can you just talk about the competitive environment and what you are seeing? Has that -- is that at all or we still seeing a lot of discounting in your view?

Saed Mohseni

I think that obviously there -- everybody had a harsh winter, everyone is focused on getting the comp sales and therefore even we have and I think on a short term will continue to see the discounting in our sector, but again that’s why we believe a bit of a point of differential here is for us is to focus on the quality, attracting the higher-end guests, people who are less sensitive to price point and not only we believe is the right business decision because it protects our margin, we also believe that’s a great way to build the company moving forward.

Operator

We’ll take our next question from Steve Anderson from Miller Tabak.

Steve Anderson - Miller Tabak

I constantly comment -- regarding certain -- particular commodities, but how is your overall view on commodities, I know last quarter you had 2.5% to 3.5%, has that changed at all?

Saed Mohseni

I’m sorry Steve.

Steve Anderson - Miller Tabak

You’re looking at 2.5% to 3.5% at the end of last quarter for your range of 2014.

Saed Mohseni

That’s right. We just updated that just modestly, raised it to reflect what we see as some current spot pressures in dairy and in beef and in pork. We’re optimistic that the circumstances that give rise to some of these current pressures right now will kind of fall off as the year goes on, but in those specific commodity items, we are seeing some pressure right now, that’s a little bit higher than it was, 30 to 45 days ago.

Steve Anderson - Miller Tabak

And what was the number you had on the weekly sales at BRAVO! kind of -- how about BRIO --?

Jim O'Connor

Yes, so 62,000.

Steve Anderson - Miller Tabak

And 864 on -- at BRIO.

Jim O'Connor

BRAVO! is 62,500.

Operator

We’ll take our next question from Will Slabaugh from Stephens.

J.R. Bizzell - Stephens

This is J.R. on for Will. I guess most of mine have been asked, but I kind of wanted to -- I know last quarter you talked to discrepancies across regions, I’m wondering if you can give us a little more detail. I know that Midwest is dramatically affected by weather, so just wondering if you can kind of talk to those regions outside of the Midwest.

Saed Mohseni

I think when you look at Florida, which has always been a very good market for us, the overall state was up -- was positive for the quarter, so we’re very pleased with that. I think when you look by brand, certainly BRAVO! with its geographic footprint was more impacted by the weather, but the big part of that was they just didn’t have the offset, BRAVO! didn’t have the offset that the BRIO had.

And then for some of the other restaurants that BRIO has in the Southwest, there was also pretty good performance in several of the restaurants out West, so I think from a geographic viewpoint we did see some outperformance where the weather was better.

J.R. Bizzell - Stephens Incorporated

And lastly, you spoke to April trends still negative, but I’m guessing obviously you said a sequential improvement and much more so than the beginning of the quarter, 1Q, I’m wondering if there are certain items, ex-weather that you are seeing that are helping drive that? I know you spoke to some on the call, but maybe a little more detail there.

Saed Mohseni

Sure. I mean obviously, what we mentioned is a number of different initiatives that we have rolled out. Our bar program for example, we continue to see traction on that. Bar sales are up for both brands which has been great to see. We believe that brunch program that has been put in place in the last month or so will be a good contributor going forward.

And I think that as we get more normal trend in business, we are seeing those days to be positive. And so going forward that’s why we say sequentially we expect to see improvement as the year goes by.

Operator

(Operator Instructions) We’ll take our next question from Paul Westra from Stifel Nicolaus.

Unidentified Analyst

This is (indiscernible) for Paul Westra. Just wanted to follow-up upon some of your guidance, you had said down to positive 1 for 2014, just wanted to see if you guys can give any color on any of the banquets, how that’s been contributing to your estimates for the full-year comp, and because I know you had mentioned on the prior calls that you kind of have a renewed interest in the banquets there?

Saed Mohseni

The banquet sales obviously continue to be a focus for us as the year progresses, but the core for us with our banquet results really comes from the fourth quarter and really more choice at December party, banquet at that time of the year, but it is still a focus for us, and but it’s just still a lower percentage of our business this time of the year than it is in the fourth quarter.

Unidentified Analyst

So no incremental sales during the Easter holiday, is it what you’re saying?

Saed Mohseni

No. We will find with the holidays along Easter and Mother’s Day, we’ll find just more typical a la carte dining in the dining room. We’ll have some larger parties, but the banquet business itself you wouldn’t see any sequential business or decline either way.

Operator

And at this time, with no further questions in the phone queue, I’d like to turn the call back over to management for any additional closing remarks.

Saed Mohseni

Well, thank you so much for joining us today. As always, Brian O’Malley, Jim O'Connor and myself will be available to answer any questions that you might have. Thank you for your interest in BBRG, and I look forward to see you at one of our restaurants. Have a great day.

Operator

This does conclude today’s conference. We thank you for your participation.

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