Financial Data and Key Metrics Changes - Revenue for the second quarter grew to over $1,500,000,000 for the first time in company history, representing a 12.7% increase year-over-year [5][17] - Same store sales increased by 5.8%, driven by a 4% traffic growth and a 1.8% increase in average check [5][17] - Diluted earnings per share increased by 4% to $1.86 [17] - Restaurant margin dollars increased by 6.1% to $257,000,000, while restaurant margin as a percentage of total sales decreased by 108 basis points year-over-year to 17.1% [17][18] Business Line Data and Key Metrics Changes - Texas Roadhouse averaged approximately $172,000 in weekly sales, while Bubba's 33 averaged over $128,000 in weekly sales [6][7] - Jaggers delivered average weekly sales of nearly $76,000 in the second quarter [7] - The company plans to open approximately 30 company-owned restaurants this year, with a potential for double-digit openings for Bubba's next year [8][10] Market Data and Key Metrics Changes - Inflation for commodities was in line with expectations, with a full-year inflation guidance increased to approximately 5% due to higher beef inflation [14] - Labor inflation was also in line with expectations, with a full-year guidance lowered to approximately 4% [14] Company Strategy and Development Direction - The company is focused on a "people first" approach, emphasizing legendary food and service [11] - Plans to acquire additional franchise locations and continue expanding the Bubba's brand, aiming for 200 locations [7][10] - The company is committed to maintaining its capital allocation philosophy, prioritizing new restaurant development and existing restaurant care [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of operations and the commitment of the team, despite facing challenges [11] - The company is monitoring inflationary trends closely and adjusting strategies accordingly [14][28] - Management remains optimistic about the growth potential of Bubba's and Jaggers, with plans for increased openings in the coming years [42][126] Other Important Information - The company completed the acquisition of three franchised restaurants, bringing the total to 17 for the year, and plans to acquire three more in the fourth quarter [10] - The company is purchasing its support center buildings, which will save approximately $2,500,000 in rent annually [103] Q&A Session Summary Question: Insights on inflation dynamics - Management noted that strong retail demand for beef and tighter supply have driven inflation higher, with expectations of peak inflation in the third quarter [25][28] Question: Mix effect and consumer behavior - Negative mix pressure is primarily from the alcohol category, while positive trends are seen in entrees and mocktails [32][36] Question: Expectations for inflation in Q3 and Q4 - Anticipated commodity inflation could reach 7% in Q3, decreasing to 4-5% in Q4 [41] Question: Growth opportunities in California - The company is excited about acquiring remaining franchise units in California and plans to explore growth opportunities in the state [96][99] Question: Off-premise sales growth - Off-premise sales growth is attributed to improved operational efficiency, the mobile app, and better execution by staff [120][123] Question: Delivery considerations - Currently, the company is not pursuing delivery options broadly but is open to discussions based on individual unit needs [130][132]