Release Date: March 10, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: How do you expect same-store sales to progress throughout the year given the current consumer uncertainty? A: Emanuel Hilario, President and CEO, explained that they anticipate a gradual improvement in same-store sales each quarter. For the first quarter, they project a decline of 3% to 4%, with full-year expectations ranging from a 3% decline to a 1% increase. The company is seeing sequential improvements and expects continued progress, especially in the second, third, and fourth quarters.
Q: Are there any concerns regarding equipment availability for new restaurant openings due to tariffs or other factors? A: Emanuel Hilario stated that three units are in the final stages of pre-opening operations, and equipment for these is already in place. They do not foresee any immediate impact on equipment availability for 2025 openings, as most equipment for later openings is also sorted out.
Q: Are there any significant shifts in commodity prices affecting your operations? A: Emanuel Hilario noted that while there are some concerns with commodities like eggs, beef, and seafood, they have managed to secure stable supply chains. The company has a strong supply chain team and processes in place to navigate any potential shifts due to tariffs or other factors.
Q: How are the new restaurant openings performing, particularly Kona and RA Sushi? A: Emanuel Hilario reported that the RA Sushi in Plantation is tracking well within expected revenue ranges, and the Tigard location in Oregon is performing well, especially during the holiday season. The STK openings continue to exceed expectations, and the Salt Water Social concept is performing exceptionally well.
Q: Can you provide an update on construction costs for new units? A: Emanuel Hilario mentioned that construction costs are in the high $600s to $700 per square foot, with tenant improvements bringing costs to the mid $500s. The company is focused on cost engineering to ensure efficient spending on new projects.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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