The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Jake Rowland Bartlett - Truist Securities, Inc., Research Division - Analyst
: My first is about your expectations for the third quarter. And this kind of goes back to the February results. And I know you're not sharing them.
But -- because if we had those, we'd be able to understand what you expected for March and April. But can you just talk broadly even how close
to fully recovered, do you think you'll be by April? It seems like within this guidance, there's a scenario where you're actually very close. If you can
kind of speak to your the confidence of -- the speed of the recovery that you're expecting?
Question: Jake Rowland Bartlett - Truist Securities, Inc., Research Division - Analyst
: I am. I love it.
Question: Jake Rowland Bartlett - Truist Securities, Inc., Research Division - Analyst
: Okay. And the comment on margins, I think the comment was that you'd expect flat operating margins in '22, which I think sales were at '19 level.
Maybe if you can kind of repeat that. But I wanted to make sure I understood the moving piece is just in light of the margin savings, the $50 million
in savings that you've gotten. It seems like you could be at a higher margin in '22 than you were in '19. But maybe if you could just clarify that
comment.
Question: Jake Rowland Bartlett - Truist Securities, Inc., Research Division - Analyst
: Got it. So maybe to put it in another way, if -- would you expect margins to be higher or lower than '19 at the same sales levels, if '22 was the same
sales level as '19?
Question: Jake Rowland Bartlett - Truist Securities, Inc., Research Division - Analyst
: Okay. I was just trying to understand the moving pieces. But just lastly, Doug, if you can clarify where we are in the $50 million of savings. I think
you mentioned what was saved in G&A, but maybe I missed it, the impact in labor. So maybe just trying to make sure we understand what's left to
come of that in the third quarter. And then on pricing, I just want to make sure I understand I think what it implies a 3% pricing in the back half of
the year. And I just want to double check that. And is that -- what is driving -- if that is the case, what is driving the kind of much -- the more aggressive
pricing outlook?
|
