Transcript
Welcome to business pants, free floats, daily podcast, covering all things business news, all things, ESG news, all things corporate woke Wars. The Geniuses here at free flow. Ari, Jesse. And Matt believe in this stuff so much that they made a product to sell directly to you. It's called board sabermetrics. And it puts the who back into ESG. It's Tuesday, which means it's time for our business pants. Corporate theater America's longest running corporate theater. Troupe dedicated to dramatizing and satirizing, business news headlines, business pants, corporate theater will be performing live on stage in June, in the great city of Portland, Maine more details to come. If you were looking for a weekend, getaway from your corner office suite, high above Madison Avenue. But come on, let's get to the good stuff, our corporate theater players. Tonight are the extraordinary Courtney Cook. Phil Haack, Ashley kutzer, Mark McGee and Molly McGill. This week on the show. Earnings call, transcripts. Need, I say more. Why not? First. Quarter 2023 earnings call transcripts drama ties. Up first. of you ever wondered what dominoes pizzas, q1 2023 earnings conference call, it would sound like as a horrible game show filled with 493 random sound effects, Of course you have. So here you go. The Abridged version of dominoes earnings call from two weeks ago. Featuring actual language from the actual conference call. Thank you for standing by and welcome to Domino's Pizzas. First quarter 2023 earnings conference call. As a reminder, today's program is being recorded joining our call today from Domino's Pizza, chief executive officer Russell, weiner and Chief Financial Officer Sandeep, ready? In our first question comes from the line of Brian Bittner from up and your question, please. Brian Bittner. So, my main question to you, Taking market share. Can you just further elaborate on actions that you're taking inside the company to improve your competitive Advantage within delivery to set that business up for a strong turn? When these macro pressures received Russell weiner. Morning Brian. Wow. First we grew delivery, qsr, pizza, market, share last year. And so the point that you ask is, is what can we do? In addition to drive that it's driving value delivery service, we're a minute better than we were a year ago, Innovation and all areas, not just product, but we have actually delivery Innovation out there. Now with electric vehicles, we're up to 1,000 vehicles. Brian Bittner. Thank you one moment for our next question. I don't. Next question comes from the line of Sarah, Senator Torres from Bank of America. Your question, please. Sarah set a Torres. Higher than it was a share of sales pre-covid. Do you have? Thoughts on how long this shift, might last. What expect dine-in. Probably ends up as a lower share of the total mix, but trying to again understand how long that headwind persists in your view. Thanks Sandeep. Ready? Hi, Sarah on the topic of Shifting to dine in. I think our point when we actually did, the Q4 call was we've seen throughout 2022 a shift back to dine in and I think. But when we look at the values of where the diamond had reach, we were still, well below 2019 levels for dying in. Sarah. Thanks. Thank you. One moment for our next question. And the next question comes from the line of Dennis Geiger from UBS your question please. Dennis Geiger. Of like you Russell, you spoke to stepping up the place of innovation that you gave some good examples. I just wondering if you could touch a little bit more on what that means, and anything more, you can share in thinking about Innovation across menu and Technology, Russell weiner. Hey Chips. The majority of companies what they call it as a bounce back to bond. And what our marketing people did did a great job and they said, you know what, we're intention of calling it a three-dollar bounce back coupon where a delivery company and this case customers are delivering our pizza, let's call it a tip. They get to three dollars in the next week and it's in itches. And accident Innovation, thanks. Dennis Geiger. Thank you. Thank you one moment for our next question. And the next question comes from the line of Gregory Frankfurt. From Guggenheim your question, please Gregory Frankfort. Russell just can you talk more about what you think? The competitive differentiation is of the Dominos business today? But can you maybe help us understand the reasons for why you have kind of competitive differentiation versus those platforms? And if that's changed over the last four or five years or not, thanks Russell weiner. Sure. Good morning and thanks for the question. Actually, what I like to start out with is carryout. Let me talk a lot about the fact that there is not an overlap between delivery and Carry Out historically over 15%. Ooh. So if you look back in the last three years on our Us carry out business, it's almost 30% in the same store sales. Thank you. In the next question, comes from the line of Brian. Harbor for Morgan. Stanley your question, please. Brian Harbor. Yes, thank you. Good morning. One thing I was curious about just talking about Innovation is, could you talk about your market share at different day pots and whether you think that there's specific opportunities to lean into and one or two of those where you perhaps don't have as much shares, the others. Sunday, parade. Brian, are you there? Brian Harbor. Yes. Hello. Can you hear me Sunday, pretty? Yes. Sorry. We had a blip on the last question. Do you mind repeating the question, please? Brian Harbor. Sorry about that. I was curious just about if you could talk about day parts and how your market share might differ by day pod and whether you think that that's kind of an innovation opportunity as well to Target different day Parts differently blah blah blah Russell weiner. See, we're going to go into by the way. Sorry. Good morning. I don't think we're going to go into the detail of the specific number on our day Parts. But our answer is, or your, the answer to your question is absolutely Finding incremental drill sites has been gave for this brand. I remember when I joined in 2008 the majority of our stores weren't open for lunch, we gave them a product with sandwiches and then later pasta. Oh my God, thank you, I don't know. Next question comes from the line of David Palmer, from evercore, i s, i your question please. David Palmer. Yes. Thanks. You know that how you do it overseas but your previous answer. You said you're looking for stickiest sales or you found that those at the highest valued. Is that your way of saying you're kind of closing the book on this and that you kind of made up your mind. Thanks so much Russell. Weiner. I think, maybe the way to interpret what I said before is there are opportunities. And then we're also issues with competing with boats or working with folks. We're not going to think about going into business unless where are best dominoes? And the best dominoes were getting every day. Thank you. And our next question comes from the line of Joshua long from Stevens. Your question please. Joshua. Oh. Great. Thanks for taking my question. Excited to hear more about the summer service program. Understanding that all the french fries are gonna be walking away in individual plan. But this is certainly exciting, but curious, maybe maybe what you've learned from. All I think the best way to answer that question is to invite you to come up and join us for our investor day acute. Phone so maybe if there were videos and I'd be able to show you stuff a little bit more but this is the old school phone call and so you have to come up to an arbor and we look forward to seeing you Joshua. Oh Thank you. Thank you, ladies and gentlemen for your participation today is conference. This does conclude the program. You may not disconnect good day. Before I get to our last get, let me once again. Thank our business pants, corporate theater. in alphabetical order, they are Courtney Cook, Philip Hawk, Ashley kutzer, Mark McGee and Molly McGill. Let's end Today's Show with. Another earnings conference call. In honor of the pitiful. Scandal at Anheuser-Busch, involving trans activist Dylan Mulvaney and the triggered unwoke right wing. We decided to focus on a more light, hearted a fell. the earnings conference call at, The Boston Beer Company. From our very own home region of New England. And yes, you guessed it. We are so uncreative here at business pants, corporate theater, that we decided to dramatize the conference call as a bunch of drunken idiot. You're welcome. Greetings and welcome to the Boston beer. Company's first quarter 2023 earnings call. As a reminder, this conference is being recorded joining us from the company. Today are Mike Andrews associate general counsel and corporate secretary. Jim Koch founder and chairman, Dave Berwick chief executive officer. Matt Murphy Chief accounting. Officer in interim, Chief Financial Officer. Our first question comes from the line of Rob ottenstein with evercore. Please proceed with your question. Thank you very much Mike. My question is more about from you know, perspective perspective, recently and just sort of how the organization is doing the sales force, just kind of a sense of how your kind of keeping things together, giving kind of more recent Downs. Thank you. I think, yeah, we've been through some UPS. We've been through some down. I mean, obviously selling a lot of Twisted Tea but also getting very excited about what's to come with truly. And I think the truly plans, reflect some important insights of it, we've got it over the time and we're excited to see them, hit the marketplace and that's where the rubber meets the road. So I think we're ready. Sam is here. People are energized. We're ready to go. Can you just one of your greatest assets? Is your phenomenal sales force. Wish everybody tells me is the best and retailers is an amazing group we have here. Can you just give us a sense of the and a normal year whatever happened means the compensation mix between fix and memorable. Fix. Their own sort of what I call a normal bonus program. Mostly weighted toward fixed. And it's, it's a career. All our division directors have grown up that industry. So, It's unique culture and we're very proud of it. Terrific. That is thanks very helpful. Thank you. Our next question comes from the line of Kevin Grundy with Jeffries. Please proceed with your question. Great, thanks. Good evening guys. Question for Jim. So the social media Fallout the fall out for one of your king competitors. It seems to be largely impacting competing premium live brands. Can you Jim maybe just thoughts on the duration of the impact. I mean, how is this gonna play out with? He see any impact on the portfolio? Just thank you for that. On his lead. This is something we haven't seen before and here I've been making beer, 38 years, this is a first, we've all had missed it. We've had him and we all recover from them without any permanent damage. I was talking to some wholesale today and that told me that it's real. Okay, appreciate the thought. Thank you guys. Good luck. Our next question comes from the line of Vivian azer with Cohen. Please proceed with your question. Hi. Thank you. Good at oh boy. Good afternoon, Jim. I Jim, I was wondering if you could just reflect back on Learning from this feltzer proposition that I believe I believe you and Dean mutually agreed to pull from the market recently. Thanks. Yeah, the biggest learning is you've got to try stuff to see if it gets tricked. and we don't, Have a great deal of learning from it but I guess we'll talk about learning from it. It probably would indicate that it's hot to have a Maltese product that's liquor branded. So I think of those that would be it. I'm sorry. That's interesting. These are sharing that perspective. When we might follow up question, Dave for you, I'm curious to you guys kind of two weeks, your approach to the news really loud. In other words, Like, have you? Learned but like in other words like have you leaned towards more sales or smaller packs. The portfolio to the extent that economic headwinds become more and just for a consumer. Sure thing. Packs size. We're focusing a lot on single serve and convenience. And we're spending a lot of money. To really create. Really trying to bring attention back to those skus and back to the fun. I sleep fun, the fun, and the lightness of drinking, and drinking hard Seltzer. Oh, what? That's that's helpful. Thank you. Oh I'm sorry. Is it relates to the vodka soda transition? I mean I mean basically what we just decided we have got some learning at the end of last year. We are adding a couple of variety packs, sweet. We just decided to name the vodka soda. It was better than a vodka Seltzer. I'm not sure if we're actually talking about the exactly Yeah, just to add on its 100 basis points to 150 basis point, impacting q1 margin. If that helps Bonnie and then I understand Dave, will you mentioned about But is there a way or would you share with us if we were to exclude? Margarita? Let the rest of truly is doing. Yes, we are. Actually, I mean, if you look at the margarita overlap and q1 Add to the fact that we are discontinuing truly tea, that's over half the declines on the trademark right there. And if you look at the former IR, I circles 63 markets, That they track almost half of them. The total truly trademark is actually grown share in the last month. Okay. So they're green shoots now. Yeah, thank you. So to hit the midpoint of the range right now with Twisted Tea, is at the moment where truly is, truly doesn't really need to change the direction of the month. So they live. Well, that would mean losing his hair, right? So we factored that in, so we came out. Oh, Gardens lost. Cool. Thank you. So much. There are no further questions, I would like to hand it back to Mr. Coke for closing remarks. Thanks everybody. I won't talk again in a few months. Thanks for joining us. We are bored sabermetrics and we will be back tomorrow. Without this Silly voice, I promise. And please. Go ahead. 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