Welcome to the BJ's Restaurants Incorporated first quarter 2008 results conference call. (Operator Instructions). I would now like to turn the conference over to Mr. Jerry Deitchle, President and CEO. Please go ahead, sir.

Thanks, Joshua, and hello, everybody. I'm Jerry Deitchle with BJ's Restaurants and welcome to our quarterly investor conference call, which, as usual, we are broadcasting live over the Internet. With me on the call today are Greg Levin, our Executive VP and CFO; Greg Lynds, our Executive VP and Chief Development Officer; and Diane Scott, our Director of Corporate Relations. After the market closed today, BJ's released our financial results for the first quarter of 2008 that ended on April 1, 2008. So, if you haven't had a chance to see our press release yet today, you can view it on our website at www.bjsrestaurants.com. Our agenda today will be as follows. First, I'll provide a brief business and operational overview for the first quarter and then Greg Lynds will provide an update on the status of our new restaurant development pipeline, which continues to be in outstanding shape. Greg Levin will then comment on our consolidated income statement, summary balance sheet and liquidity position as of the end of the first quarter and then after that, we'll be happy to answer as many questions as we can. We'd like to complete the call in about an hour and we'll get started right after Diane provides our standard cautionary disclosure with respect to forward-looking statements. Diane?

Our comments on the conference call today will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements. Our forward-looking statements speak only as of today's date, April 24, 2008. We undertake no obligation to publicly update or revise any forward-looking statements or to make any other forward-looking statements whether as a result of new information, future events or otherwise, unless required to do so by the securities laws. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements contained in the company's filings with the Securities and Exchange Commission.

Thanks, Diane. Now to the call here. As we indicated in our press release today, we believe that our restaurant, brewery and infrastructure support teams did a very good job of executing and controlling the parts of our business that are within our control, and despite the pressures of the weakening economy and despite the steadily increasing pressure on the casual dining consumer in general, but particularly out here in California, during the first quarter just ended. Compared to the same quarter last year, our revenues for the first quarter increased a very strong 22% to $86.8 million. Our net income for the quarter was $3.1 million, compared to $1.6 million for the same quarter last year and our diluted net income per share was $0.12, compared to $0.06 for the same quarter last year. Now we should also note that our results for the same quarter last year do include a non-cash after-tax charge of about $1.3 million or $0.05 per diluted share related to asset disposals. We commented, on our last conference call in February, that going forward into 2008 our leadership team here at BJ's had never felt better about the factors in BJ's business that we can control and we still feel that way. Short-term among the operational execution front, we, along with all of our other casual dining competitors, are up against a slowing economy. We are up against a casual dining consumer that certainly is feeling more pressure to make ends meet today, in view of steadily increasing costs for the necessities of food and gasoline. This morning I paid $4 a gallon for gas for the first time in my life and it was a bit disheartening to have to pay $85 to fill up my own car this morning. So a lot…

Thank you, Jerry. As we mentioned in our press release today, our 2008 and 2009 new restaurant development pipeline remains in excellent shape and we continue to be very pleased with the quality of the new sites in our pipeline. Our internal goal is to maintain at least 18 months of forward visibility for specific new locations at all times and our development stays focused and works hard to stay on track with that goal. So far in 2008, as Jerry mentioned, we have opened two successful restaurants. On February 11th, we opened in Cincinnati, Ohio at the main entry of the Tri-County's Regional Mall and on February 25th, we opened in Louisville, Kentucky at the Oxmoor Center Regional Mall. All of our 2008 openings have been identified and secured with signed leases or letters of intent and nine of these restaurants are already under construction. We are currently under construction in Orlando, Florida; Indianapolis, Indiana; Baton Rouge, Louisiana; Torrance, California; Phoenix, Arizona; San Antonio, Texas; Houston, Texas; Seattle, Washington; and Modesto, California. We also plan to start construction on as many as four more restaurants within the next 60 to 90 days. As we've stated before, it's difficult to precisely predict the actual timing of our new restaurant openings, due to many factors that are outside of our control, including factors under the controls of our landlords, contractors and outside municipalities. With that in mind, as of today, we currently expect as many as four openings in the second quarter, as many as five in the third quarter and as many as four openings in the fourth quarter. Again, this opening schedule will fluctuate and we'll keep everyone advised of any future changes on our quarterly calls. As we indicated in our last call, our team views the current…

Hey, thanks for the update, Greg. That's a hell of an update and thank you and your team for putting us in an outstanding position here to execute our restaurant growth plan over the next couple of years. You know we've only got 69 restaurants open today and we're only in nine states, so we continue to believe that there is room for at least 300 BJ's restaurants of various sizes and site types, domestically. As Greg mentioned, our goal is to continue to increase our productive capacity as we measure it in total restaurant operating weeks by 20% to 25% for the next couple of years. But I think it's also important for our investors to understand that we are not growing just for the sake of growing. As long as we continue to have a high degree of confidence that our new restaurants in the aggregate can achieve our targeted returns on capital employed, we think it makes good business sense to continue to expand and strengthen our overall market share and to take advantage of the pullbacks and some the weaknesses of our competitors during these tough economic times. But having said that, we are going to maintain strong discipline to execute our growth plan in a very careful and controlled manner and only with the right operational talent and infrastructure and tool sets in place. Before I turn the call over to Greg Levin, I want to update you on a couple of other things. First, as most of our longer-term investors know that we've been intentionally strengthening our field supervision and home office support infrastructures to support a lot of our planned growth here. We've been strengthening those infrastructures during the past couple of years. We have written a lot of checks. We have made…

All right. Thanks, Jerry. Let me spend a couple minutes and I'll go through the highlights of the first quarter. I'll provide some forward-looking commentary for the remainder of 2008. As Jerry previously noted, our total revenues for BJ's first quarter of 2008 increased approximately 22% to approximately $86.8 million from $71.2 million in the prior year's comparable quarter. This increase is the result of approximately 24% more operating weeks, offset by a slight decrease in our weekly sales average of about 1.7%. The operating week increase is due to 13 new restaurants that we have opened since the first quarter of 2007. As Jerry mentioned, our aggregate comparable restaurant sales for the first quarter were approximately flat compared to last year's first quarter. What is notable about BJ's is the fact that we only have 50 restaurants in our comp base, so a change in sales impacting just a handful of comp restaurants can significantly impact the total company's comp sales metric. Also, because those 50 restaurants are spread between several markets with different economic pushes and pulls, we have an interesting mixture of comp sales increases and decreases as the economy begins to slow and slow faster in some markets than others. And unfortunately, California and Arizona appear to be those markets that fall into the slowing faster category right now and that's where we happen to have 37 of our 50 comp restaurants at present. We're not as geographically diversified as our larger competitors right now. So I think everybody needs to keep that in mind as we review our comp sales for this quarter. As we mentioned in today's press release, the softness in our comparable restaurant sales were primarily in Sacramento and the Inland Empire areas of California and the Phoenix, Arizona markets. And as…

Hey, thanks for that great review, Greg, and I'm just going to have one more comment here and then we'll open it up for questions. And we'll stay on the line as long as we need to today to answer all of your questions, because we've taken a lot of time during the call today in our prepared remarks to really give you a solid update on our business. And again, just to wrap it up, you know in a tough economy consumer spending is under pressure, the prime costs of business are continuing to be under pressure and we certainly haven't felt the bottom of this economic cycle yet. But having said all of that, the more successful casual dining concepts are going to be the ones that really work hard to protect their overall approachability for all dining occasions and continue to offer great quality, great differentiation and overall value to the consumer. And these have always been the long-term hallmarks of the BJ's concept and we are going to do everything that we can to protect and enhance those longer-term advantages and keep an eye on the long-term development of our business, while at the same time we're going to do what we can to prudently respond to all of these pressures here with respect to the economy and the consumer. We are not at the bottom of this economic cycle yet, in our view. We don't know when the consumer in general is going to start feeling better. So the only thing that we're going to commit to do is to do our absolute best to control what we can control and continue to do our best to drive sales. We've got some very good initiatives underway. We're going to do our best to become even more productive and efficient and frankly, we want to do our best to outperform our peers. And remember, our restaurant pipeline is in excellent shape for 2008 at this point and we've got a solid lineup of outstanding sites for this year and our 2009 pipeline is coming together very solidly at this point. We've got a comprehensive strategic and tactical plan in place, so now our challenge is to correctly and consistently execute out plan and keep steadily gaining market share. So that concludes our remarks. And now at this time, we'll open up the call for questions. So, Joshua, take it from here.

(Operator Instructions). Our first question comes from the line of Steve West, Stifel Nicolaus. Please go ahead. Steve West - Stifel Nicolaus & Co.: Hey guys. Just a couple quick questions on the sales boosting initiatives you're doing. We've seen some of these in other casual dining concepts. Some do well, some not so well. One of the things I'm really curious about is, have you tested these initiatives maybe in some of the Inland Empire stores and, if so, did you see any decent results to kind of help offset some of the negative trends you're seeing there? And then I got kind of a follow-up to that as well, please.

Sure. This is Jerry. Good to hear from you, Steve. With respect to the initiatives, the one that we've tested extensively in Sacramento and the Inland Empire would be our lunch initiative. We already have some lunch specials, but frankly, in this environment, I'm not -- and I think we all believe that they're probably not as impactful in terms of communicating great value and great quality for the consumer today. So we have tested a new lineup of lunch specials. Whenever you get into a lunch test or any type of test in our business, as you know, you're trying to balance turn and earn, because we're in a turn and earn business. So to the extent that you are going to give up a little bit of the earn per guest you've got to achieve at least an equal percentage increase in the turn of guests in order to breakeven. And we've seen in our lunch tests that we have achieved an increase in turn that exceeds the decrease in earn on that particular metric. And so we're very, very excited about that. There's some noise in the numbers, as we compare our numbers in the test to a control group and to the base performance of the restaurant. But nevertheless there's enough information at hand to be able to give us confidence to move forward and take this expanded lunch test out to another 20 or 21 restaurants, particularly those that are suffering the most at lunch. We have a number of restaurants outside of California where their lunch business is very, very steady and I don't think that we need to really introduce a new lunch test there, a new lunch program in those restaurants. But at this time, we'll keep our powder dry in that…

A couple of things there, Steve, in regards to our off premise. And we look at it as total off premise, meaning people coming and taking it out, as well as the delivery. Steve West - Stifel Nicolaus & Co.: Okay.

It's still in that kind of 4% to 5.0% range. And again, we think over time we can double that number. In regards to the delivery, that additional charge, if there is any additional charge, really comes from the third party delivery service. It's not something that we collect here at BJ's. So it just depends on the individual delivery service. Now what we've noticed is usually those third party delivery services really cater to the corporate consumer, to the businesses in the area and as a result, are really delivering to maybe like an office of seven or eight people at one time versus kind of a onesie-twosies that maybe we do in some of our older restaurants. Steve West - Stifel Nicolaus & Co.: Okay, great. I was just looking maybe if that was just kind of a system-wide thing, so I think I understand it more. Thank you very much.

Okay, Steve. Thank you.

Our next question is from the line of Jeff Farmer, Jefferies & Co. Please go ahead. Jeff Farmer- Jefferies & Co.: Hey guys, how are you?

Good, Jeff. Jeff Farmer- Jefferies & Co.: Greg, I'm just hoping you can do some of the math for me here. Can you sort of cut to the chase on the full year restaurant level margin and the EBIT margins for us, your rough executions?

I really can't. I mean, I try to give you guys enough pieces to kind of go through those numbers. I think what we saw here in the first quarter is probably going to be fairly indicative of what we're going to see through most of the year. Jeff Farmer- Jefferies & Co.: Okay, on both, though, well I'm assuming you're just referring to the EBIT margin?

Pretty much, yes. But I mean, we've talked about specifically where the cost of sales is going to be. It's going to be probably that low-to-mid 25% range. Could I tell you it's going to be 25% too every single quarter? I don't know. Labor, while it's in the mid-35% range, our WSA goes up a little bit here in Q2, just because of seasonality starts to drop a little bit in Q3. As you hit September, it goes, I think flat into the fourth quarter and that'll play into that a little bit. Jeff Farmer- Jefferies & Co.: Okay.

But again, I think the first quarter is somewhat indicative of where maybe margins are from most of this year. Jeff Farmer- Jefferies & Co.: Okay. And then sort of shifting gears on you, you referenced the 13 and 15 units in your comp base that have been impacted by the credit crunch. But what about the 19 units that are not in the comp base, do you see any of those being potentially impacted?

I think on those other restaurants, you've got your general pushes and pulls. You've got some that are doing really well. You've got others that might be kind of flattish or up, flat on guest traffic, seeing menu pricing coming through there. I wouldn't -- I guess what we're saying is those 13 aren't just the only 13 ones that are negative, from that standpoint. But the other ones that are negative aren't anything that we're too concerned about. They might just be competitive intrusion in the area, maybe a little weather plays into it or something else. Jeff Farmer- Jefferies & Co.: Okay. And then in terms of what you're willing to tell us on the intra-quarter same-store sales trends in the first quarter, considering that I think you were pointing to roughly a 1% comp for the full quarter, just check to assume that things got a little bit worse as we went from January to March?

No. They were actually pretty flat.

Traffic was pretty steady.

Pretty steady traffic throughout the third quarter. Jeff Farmer- Jefferies & Co: Okay. And then it sounds like it's been steady as we've rolled into April then?

Our results, April to-date, are representative of the first quarter's consolidated results. We've only got, what, three weeks in for the first quarter. Jeff Farmer- Jefferies & Co.: Right.

And our consolidated comparable sales metric is still flattish and we still see the same dispersion within the different regions. We still see the Inland Empire and parts of California, Phoenix under pressure. We still see Texas very, very strong. Jeff Farmer- Jefferies & Co.: Okay. And then a final question for me. I think it was the third quarter was the first time you actually referenced the Inland Empire units, so I'm assuming that that was actually the first units to break down, from a top-line perspective.

That's correct. Jeff Farmer- Jefferies & Co: With that have you seen any stabilization there? I mean, understanding that you don't have a perfect sort of crystal ball here, but in your estimation is sort of long-term, at least, Greg, California residents, do you think we're finding some stability at least on a two-year same-store sales basis?

I wish I could say that we're beginning to feel bottom there. But we're not and I think until we hit this summer and begin to roll over some of those initial pressures that we began to feel, again, in the third quarter last year, we'll certainly get a better sense of it. But if you drive those trade areas, if you're out there, and not just in our restaurants but in any casual dining restaurants, there have been, as Greg mentioned earlier, some structural changes in the economics of these trade areas. And every week out here, in the California papers anyway, they publish all of the subprime statistics and all of the foreclosure rates and all the housing price declines and its just report after report of negative news in that particular respect. And I think until that negative news begins to feel bottom, I think our sales are probably going to be under some continuing pressure. Although we're hopeful it'll be at (inaudible) rate, particularly as we move into the third quarter and bump up against those weaker comparisons. Jeff Farmer- Jefferies & Co.: Okay, thank you, guys.

Okay.

Our next question is from the line of Tony Brenner, Roth Capital Partners. Please go ahead.

Thank you.

Hey, Tony.

Hey, Tony.

Jerry, it sounds like you should walk away from your car.

Well, you know I'm not driving some big massive four wheel drive car, that's got a 35-gallon gas tank, believe me. For a guy that grew up in South Texas in the '60s and bought his first tank of gas for $0.20 a gallon back in 1966, when you hit $4 it got my attention.

I have two questions. One was sort of touched on but not exactly by a previous caller. Of the 19 stores that are not in the comp base and the 13 to be added this year, which was, I guess, a total of 32, how many of those 32 stores are in the Inland Empire, Sacramento and Phoenix markets?

Just looking quickly, as far as our new restaurant development for this year, of the 15 restaurants that we would expect to open there is only one that is scheduled to open in a suburb of Phoenix, in the Glendale market. Is that right, Greg?

Yes.

And that's under construction. We're highly confident about that particular opening. It's a densely populated trade area. We've got an outstanding developer there, backing us up. So we feel very, very strong there. I believe that is the only one that would fall into that classification for the 15 that we're opening this year.

Right. And I think, Tony, if you're asking as we're looking down the road what's coming into our comp base, we probably have, to make the comp base, probably about three to four restaurants that are kind of in the Sacramento, Inland Empire that'll be dropping into the comp base later this year at different times. Looking at those restaurants, though, again, like I think we've said, I mean, these are great restaurants for us to have, $6 million plus. In fact, Palmdale, which will probably drop in really towards the end of 2008, set an all-time record for us, opening up. So it was close to $190,000 a week in sales. So good restaurants in there, but they will be a little bit -- they will have some impact on comp sales, I guess, as they come into that base.

But I think the point, though, is that those particular restaurants represent a disproportionate percentage of our total additions coming into the comp base than what's currently represented by the restaurants that are having the most struggles in those particular markets.

Disproportionately low you mean?

Yes, disproportionately low, yes. I mean, when you look at 15 that we're opening this your and 19 or so to come into the comp base, when you total all of those up I think we, what, said about half a dozen or so that probably fall into that category.

Modesto is not considered close to the Sacramento market or?

I think it is its own separate trade area, don't you, Greg?

Yes. It's a separate trade area. It's not as impacted as some of the suburbs of Sacramento.

And frankly, we have a restaurant that we opened in Stockton last year and I know Stockton has gotten a lot of national press on being one of the highest cities or trade areas in the country, with the highest numbers of foreclosures. And yet our average sales in Stockton are still holding at about 120 a week. So again, once you get outside of some of these other areas, you see some different pressures.

Okay. So my second question relates to your financial condition. I understand that you've arranged for an expanded bank credit line to take you over the near-term. But I'm wondering, given the illiquidity of the cash on your balance sheet whether you might consider accelerating the timing of obtaining more permanent long-term financing?

Yes, it's a good question. Honestly, I don't think we have any answer for that right now. We went ahead and increased the line of credit up to $45 million. From what we understand in regards the auction rate securities market, they're expecting obviously that to fall out somewhere like here in the next 12 months. We'll have to see how that plays out. We feel based, at least this year and through 2009, even with just a line of credit, cash flow from operations, with the tenant improvement allowance that we're receiving from landlords that we've got more than enough capital at least for the next two years. Going into 2010, we don't really know what to think at that time. But again, as you start thinking about our growth and the amount of restaurants we're building and increasing cash so that differential becomes pretty small. And it might just as well be easy just to continue to fund it through the line of credit until we kind of go through that hurdle point or that inflection point where we're cash flow neutral.

And I would just add to that that, as we've clearly commented in all of our filings and at our investment conferences, based on our current expansion plans, we are not yet self-financing our growth. So, Tony, to answer your question, at some point in the future where we need one more, I hate to use gas tank, here top off our gas tank to get us to that point, where we do become self-financing, I think the answer to that is probably yes. When that'll occur and in what form that'll occur, we really haven't decided. But I think, as Greg mentioned, when you add up our operating cash flow, our landlord construction contributions, which, quite frankly, going forward, we're able to secure a minimum of $1 million landlord construction contribution for the vast majority of our new restaurants. We also have the cash and investments that we have on hand. We also have four restaurants where we own the underlying real estate fee simple and not only do we actually own that land, but those four restaurants have outstanding sales and cash flows. And those could be monetized in the 1031 market at a cap rate that I think could be very, very attractive to our company. So I think that we have several alternatives available to us and I think what we have to do is to watch the capital markets, watch our performance, be opportunistic where it makes the best sense for our stockholders. But in the interim here I think we can move forward and execute our expansion plan with great confidence with the resources that we have available.

Fair enough. Thank you very much.

Okay, Tony.

Our next question is from the line of [Julie Welcher], Piper Jaffray. Please go ahead.

Hi guys. Most of my questions have been answered, but I just have a couple quick ones here for you. First being the shift that you stir into the quarter, did that have an affect on the same-store sales?

It did. I think we calculated it somewhere to be a little, about a half a percent or so in the comp sales that were split from Q1 to Q2.

Okay. And can you talk a little bit more about the beverage program that you had mentioned as one of the initiatives?

Yes. Obviously, we continue to evolve our handcrafted beer program and we do that in-house with our base set of beverages and our seasonal program and that represents still about 11% of our sales. The beverage program that we're continuing to evolve would be our non-alcoholic beverages and our wine and spirits programs. So we have just engaged an outside, nationally recognized beverage consultant to provide us with data and resources and relationships with a lot of the vendor community out there so that we can bring our current non-alcoholic and alcoholic beverage programs up to a more contemporary positioning in the casual dining restaurant business. So I frankly think our current programs are okay, but we've been more of a follower than a leader in those programs and now that we've evolved our BJ's concept up to the full casual-plus level, I think we need to begin to show some more innovation, some more leadership in our wine and our spirits and in our non-alcoholic beverage programs. And we'll be in a position to begin testing some upgrades to those programs here before the end of the third quarter and depending on the results of those tests, obviously, I would expect that that would benefit our fiscal 2009 results. Our wine and spirit sales represent about another 9% of our sales. Our non-alcoholic beverage sales are probably, I would guess, around 4% or 5% of our total sales. So you've got a good chunk of business there that really needs to be worked and frankly, we haven't worked it aggressively as our competitors have. So that's really our strategy there.

All right. Thank you very much. That's it for me.

Okay. Thank you.

Our next question is from the line of Greg Ruedy, Stephens Incorporated.

Good afternoon.

Good afternoon.

A question on the brewing contract, I guess, more specifically your cost of sales guidance. When I take a look at where you guided, we look at theoretical yield. You have another couple of quarters of help from that. You've got commodity inflation running a little bit below and if you take some price, I'm wondering why you wouldn't get maybe a little bit of leverage on that line, given you've got a brewing contract now in place?

Everything else being equal, we would have gotten leverage this year. But as with commodity costs for food, we've seen also significant pressures on the commodities required to produce handcrafted, high quality beer. When you look at the situation of barley and hops in America today, those relationships, those availability and costs of those commodities are pretty much under the same pressure as corn and wheat and rice and everything else out there. Had those costs remained relatively flat with last year, we would have seen some leverage this year. But unfortunately, everything not being equal, we won't see that this year. And again, if we can get some relief on those commodities going forward, then we would expect to see a lower absolute production cost begin to manifest itself in our cost of sales beginning next year. But those markets for hop and barley, if you're as confused as I am about how the wheat markets work and the corn markets work and the rice markets work today, the barley and hops markets are even more confusing. But really, that's the best answer we can give you.

Okay. Shifting to the labor line, you came in below our expectation. I was just hoping for maybe some more color there. Is that better utilization at mature units, at higher capacity or are you realizing efficiencies at new units a little bit quicker than normal? Can you give us some color there?

I would just say that our operators are beginning to utilize some of the tool sets that we've provided them over the past couple of years. They've overcome their learning curves and are beginning to really fine tune our execution with respect to labor productivity. And that's really what was really the desired outcome here of what we've all been working on. As Greg mentioned earlier, our major labor productivity statistic that we use internally, we don't publish it. I think every company has its own labor productivity statistic. Most use guest per labor hour, but we kind of flip it at BJ's and we use labor hours per 100 guests. So that's something that you want to see decline to a certain point, over time, in your operations, but you don't want to get it too low, because then you're going to be interfering with great quality execution for our guests. And frankly, we put a lot of visibility of this particular statistic in all of the different work groups, in each of our restaurants, in the hands of our operators. And in our business any time that you're able to shine a flashlight on a particular area of the business and show your operators and compare them to sister restaurants in terms of labor productivity between the different work groups in a restaurant, between restaurants of similarly situated guest counts and sales, it is amazing how that flashlight, that illumination can create some changes in behaviors in terms of labor scheduling at a lot of our restaurants. So really, that's really what's happening here and I think that again, we always have room to improve our labor productivity going forward. Now we're never done. We never want our operators to think that they're done, but we have made a lot of progress in that respect, thanks to the system. Greg, is there anything else you want to add to that?

No. The only other comment that really, Greg, is that number also plays into how many restaurants get opened during a quarter and how many new restaurants you might have in your kind of space. And we opened two restaurants here in the first quarter, but because of Greg Lynds and his team to get all of our restaurants in 2007 open, really, in early November, those newer restaurants, again, they get really matured pretty quick. As they go into the first quarter there, you're only kind of set with two restaurants, possibly, that are going through learning curves. So that's plays into it as well and it's going to probably fluctuate a little bit more as we go into the rest of this year, just because of how the new restaurants play out.

That's very helpful. Thanks. Separately, on the development front, in the past you've mentioned that the strategy is kind of a one-third, one-third, one-third and given what you're experiencing in the California and Phoenix markets, do you revisit that for '09?

The answer is no, because of the particular trade areas that we're targeting in those particular states, Greg, and then projects that we're targeting. Greg, do you want to comment on that?

Yes. No, with our 15 restaurants that they're opening this year and our 20% to 25% capacity growth and the relationships that we have with our regional mall earners, we think we can continue with a third, a third, a third strategy. And for example, the Modesto restaurant that was brought up, that's a Macerich-owned mall in a very dense populated area and that will continue to be our strategy as we move forward to continue to leverage our relationships with the mall owners where we know the exact sale volumes of the retailers and the restaurants in the trade areas that we're going to enter.

And the other thing that I would add to that is that as we previously mentioned, our development strategy is targeting very densely populated, mature areas and mature projects. So as you looked at our lineup for this year, the ones that are going into California, for example, are going into Torrance, the Del Amo Fashion Center. We've been trying to get in. BJ's has been trying to get into that densely populated trade area forever. Thanks to our relationship with Simon Properties we're able to get in there now and boy, I'll tell you that is densely populated. The restaurants there get tremendous volumes. Another one here in Southern California we're going to do would be Chula Vista. Again one of the more densely populated mature trade areas in the San Diego area and that's really the hallmark of our development planning going forward. We don't have to go to the green areas and open new restaurants, because we've been able to elevate BJ's and get it into this exclusive club, if you will, and become a preferred tenant with the major developers, as they continue to remodel and add to their mature projects and add lifestyle centers. We're on their list and that's exactly the sweet spot for BJ's and that's exactly what we contemplated as we evolved the concept. It's a tremendous competitive advantage for us versus a lot of the other restaurant concepts out there that are trying to grow.

Those are all my questions. Thank you, gentlemen.

Do we have any further questions?

Ladies and gentlemen, that does conclude our question-and-answer session. I will turn the conference back over to management for closing remarks.

Well, thank you very much. Thank you for being on our call. We will be in our offices if you have any further questions. Thank you.

Ladies and gentlemen, that does conclude the BJ's Restaurants Incorporated first quarter 2008 results conference call. If you would like to listen to a replay of today's conference, please dial 303-590-3030 or 1-800-406-7325. The pass code is 3866823#. Once again, the pass code is 3866823#. We would like to thank you for your participation. Have a pleasant day. You may now disconnect.