Financial Data and Key Metrics Changes - The company reported Q2 sales of $366 million, a 4.5% increase year-over-year, with comparable restaurant sales growth of 2.9% driven by a 3.3% increase in traffic [18][19] - Restaurant level cash flow margins improved to 17%, reflecting a 150 basis point year-over-year increase, while adjusted EBITDA margins reached 11.5%, up 120 basis points [5][19] - Net income for the quarter was $22.2 million, with diluted net earnings per share of $0.97, marking a 35% increase compared to $0.72 per share last year [24] Business Line Data and Key Metrics Changes - The Pizookie Meal Deal has been a significant driver of traffic and sales, contributing to a 42% increase in seated reservations compared to Q2 last year [8] - The company has seen a reduction in comped meals by 16%, which has positively impacted the cost of sales [21][22] - The introduction of new menu items, such as the smash burger, has also contributed to sales growth, with the Pizookie Meal Deal accounting for about 15% of weekly sales [34][45] Market Data and Key Metrics Changes - The company experienced strong performance during key celebration periods, including record-breaking sales on Mother's Day and Father's Day [7][8] - Traffic growth has been consistent across various segments, with notable performance in delivery and takeout channels [18][19] - The company reported a 2% year-over-year food cost inflation, down from 3% in Q1, indicating improved cost management [22] Company Strategy and Development Direction - The company has established four strategic priorities: enhancing team member experience, improving handcrafted food and beverages, delivering exceptional hospitality, and refreshing the restaurant atmosphere [5][12] - A revamp of the pizza platform is planned for Q4, aimed at enhancing quality and reinforcing the brand's core offerings [14][15] - The company is focusing on operational efficiencies through initiatives like the activity-based labor model, which is expected to expand to 20% of restaurants by Q4 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining earnings expectations and comparable restaurant sales growth of approximately 2% for the remainder of the year [25] - The company is optimistic about the rollout of longer-term strategic initiatives and believes it is on track for sustainable growth [27] - Management noted that while July experienced some noise due to the holiday, performance has returned to expectations, reinforcing confidence in the business's progress [11][25] Other Important Information - The company repurchased approximately 438,000 shares at a cost of $15.1 million during the quarter, with $57 million remaining under the share repurchase authorization [24] - Capital expenditures for 2025 are projected between $65 million and $75 million, focusing on new restaurant openings and remodels [25] Q&A Session Summary Question: What are the next steps in refining the everyday value proposition? - Management emphasized building platforms rather than relying on limited-time offers, highlighting the success of the Pizookie Meal Deal and its potential for growth [32][34] Question: What progress has been made on training improvements? - Management reported significant progress in training and operational excellence, reflected in high NPS scores and reduced comp meals [38][40] Question: How is the alcohol mix trending? - Alcohol incidents have been declining, but new items like hard root beer have performed well, and there is a focus on total beverage growth [92][96] Question: What are the expectations for the activity-based labor model? - The model aims to improve hospitality and efficiency, with expected benefits in sales and guest experience over time [49][50] Question: How is the competitive landscape evolving? - Management noted consistency in consumer behavior and did not observe significant changes in closures or openings in the market [51][52]