Please standby, we’re about to begin. Good day and welcome to the BJ's Restaurants Incorporated Second Quarter 2015 Earnings Release Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Greg Trojan, President and Chief Executive Officer. Please go ahead, sir.

Thank you, Operator. Good afternoon, everyone, and welcome to BJ's Restaurants fiscal 2015 second quarter investor conference call and webcast. I'm Greg Trojan, BJ's Chief Executive Officer. And joining me on the call today is Greg Levin, our Chief Financial Officer. We also have Greg Lynds, our Chief Development Officer on hand for Q&A. After the market close today, we released our financial results for the second quarter of fiscal 2015, which ended on Tuesday, June 30. You can view the full text of our earnings release on our website at www.bjsrestaurants.com. Our agenda today will start with Rana Schirmer, our Director of SEC Reporting, providing our standard cautionary disclosure with respect to forward-looking statements. I will then provide an update on our business and current initiatives. And then Greg Levin, our Chief Financial Officer, will provide a recap of the quarter and some commentary regarding the remainder of fiscal 2015. After that we'll open it up to questions. So Rana, go ahead please.

Thanks, Greg. 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, July 23, 2015. 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 the forward-looking statements contained in the Company's filings with the Securities and Exchange Commission.

Thanks, Rana. Q2 of 2015 was the most profitable quarter in our company’s history. Our net income increased 55% versus last year to $12.4 million driven by operating income growth of 65% versus last year’s Q2. Restaurant level cash flow margins of 20.9% also set a new record and year-to-date; our net income has grown an impressive 74%. Our ability to generate record financial results based on a combination of modest comparable restaurant sales growth, margin improvements and the ongoing expansion of the concept highlights the opportunity to continue to grow earnings and cash flow well into the future. Comparable restaurant sales were positive 0.5% for the quarter marking the fourth consecutive quarter of positive comp restaurant sales and reflect an increase in average guest check offset by lower guest traffic of around 2%. Greg Levin will provide additional detail on comps for the quarter, but overall the quarter was somewhat impacted by calendar shifts such as Easter being earlier in the quarter compared to last year as well as the calendar for high profile sporting events. As most of you know, although our restaurants appeal is far broader than ahead of sports bar, we are a great place for fans to meet and watch their favorite sporting event and as such are sales and traffic can be influenced by shifts in the sporting world’s calendar. The Pacquiao and Mayweather fight on Saturday, May 2 along with the month long World Cup events in June of last year both impacted sales and traffic versus year ago. That said from a traffic perspective, we continue to outperform the industry as measured by both Knapp-Track and Black Box for April and May, but fell behind the industry in June as we lost last year’s World Cup benefit. The industry as a whole…

All right. Thanks, Greg. Revenues for the 2015 second quarter increased approximately 5.8% year-over-year to $232 million while net income and diluted net income per share increased to $12.4 million and $0.47 respectively. Both of which are record results for BJ’s and mark year-over-year gains of 55% and 68% respectably for these metrics. As reflected by our Q2 EPS outperformance and as Greg Trojan noted, we continue to make solid progress on our well defined strategic initiatives. Specifically we are succeeding and creating more efficient organization while leveraging our industry leading guest traffic levels. At the same time, we are executing on our long-term expansion program and driving comp sales gains. As a result, we ended the second quarter with four wall margins of 20.9% which are the strongest in the company’s history. Included in the restaurant level margins is 2.3% of marketing spend which many other companies include in G&A. Therefore excluding marketing spend our four fall restaurant level margins for Q2 were 23.2% which we believe are among the highest across the entire casual dining sector. Consistent with Q1 and a strategic plan for growth that we communicated over 18 months ago, our emphasis on improving return on invested capital resulted in continued leverage in G&A as well as in depreciation and amortization. Leading to 64.5% raise in income from operations to $17.6 million or 7.6% of revenue, an impressive increase compared to 4.9% last year. The increase in second quarter revenues reflects an approximate 6.5% increase in total operating weeks and a 0.8% decline in average weekly sales. Comparable restaurant sales rose 0.5% during the quarter and that’s compared with the decline of 1.7% in last year’s second quarter. As indicated on our first quarter conference call, sales started out slightly positive in early April and then…

Thank you. [Operator Instructions] And we’ll go first to Jeff Farmer with Wells Fargo.

Thanks and good afternoon. You did touch on Greg but over the trailing four quarters, it looks like you reduced labor cost as a percent of sales like something close to 90 basis points. So really the question is what’s the opportunity over the next four quarters essentially what anything - on the labor side in terms of reducing cost.

Yes, Jeff, this is Greg Levin. We get to ask question lot about earnings not standpoint and I don’t know the exact answer for that. Obviously we are not in the first one, two or three innings or further along than that. We still have a couple other initiatives that we’re working through right now that I think can provide us some upside going forward. We don’t necessarily have a magic basis points that we’re going out; I think ultimately we think about our margins and keeping our margins into that 19% to 20% range. We ultimately got to get labor back down into that kind of mid-to-low 34% range. And you just kind of line that up with a 25% food cost in that 34% range labor and consistently in an operating occupancy cost, starting to be in that 21% overall. That starts to be very consistent into that kind of 19% to 20% range and that ultimately I think it’s a target that we’re going after and there is going to be pushes and falls. I’m sure one of the questions out there will be around minimum wage and like I think our peers out there will continue to look at what is going on from a macro standpoint and accordingly will adjust pricing efficiency and so on to handle that and even today we have locations that are in higher cost areas from a minimum wage standpoint and we have menus to take care of that and like our peers we will continue with more localized pricing and other things to offset that to continue work on labor from a right percent of sales perspective to make sure we are taking care of our guests.

That’s helpful and just one more. I mean you gave us a lot of color on same-store sales, you called out July, you pointed to the Halloween and Christmas calendar day shifts but you also mentioned this ultimately your comparisons are 300 basis points more challenging than the back half of 2015 than they were in the front half of 2015, so even with little bit of color that you gave us again on July and Halloween and Christmas notably how should we thinking about same-store sales trends on a two year basis as we move into the back half of the year?

Well it is always hard for us to predict where comparable restaurant sales go and I think we have always talked about the fact that shooting par in this course is more or less holding on the guest traffic and right now if you kind of do the math guest traffic is little bit on the negative side and getting to your pricing.

Okay. Thank you, Greg.

We will go next to Matt DiFrisco with Guggenheim.

Thank you. Pricing, can you just be more specific and then I have a question just as far as the detail in that comp, you have given it historically. So I’m just curious on what you had for pricing and what was mixed in 2Q?

Pricing was somewhere around upper twos or so in Q2 overall right now it is right in the middle of the two things, right at 2.4, 2.5 that menu method you saw that came out in May I think held our point eight of food on there and 1.1 pricing from last year dropped off, so that is a net kind of 30, 20, 30 basis points there. So I think we went from kind of 2.7, 2.8 to 2.5-ish.

Okay.

The mix is pretty neutral in the quarter; we are seeing some early positive moves on mix earlier on with the newer menu items in July.

So then was I guess the rest was all traffic then was together was negative, 1.2 or so I’m sorry 2.2?

Yes somewhere it is in the negative two range and again we pull out just those nine specific days helped us a lot last year in that regard as we are rolling out our new menu and taking some I guess deflation from a pricing standpoint, you pull out those nine days and 100 basis points from that you get traffic negative 1.2 or so from the quarter standpoint.

And then you have obviously improved to get to one, you are still better than negative, you are probably between somewhere negative one and zero right now to get to about 1.5 is what is embedded in there?

Somewhere in that range yes.

And then is it correct to assume that from your comments that mix could mix turn positive with this menu in the second half of the year?

But mix can, I mean as we started to think about some of the items that we mentioned on the call appetizers coming on board with some other positive dishes, we are testing some of those things, your appetizers if we get more people buying appetizers obviously that increases your incident rate which if you put that as part of mix that would be beneficial for us, if they are training around on appetizers the new ones coming on aren’t necessarily higher priced appetizers but they are not designed to be lower priced appetizers, in general tend to be kind of medium price for us but not necessarily center of the plate signature entrees. So I don’t think ultimately appetizers are going to help us little better.

Yes burgers could help a little bit but I think ultimately where I am thinking about this is we shouldn’t have a drag from mix, let’s say mix should be neutral to positive.

We will have another menu, I will hit out in the fall, we haven’t made any final pricing decision. So we are not going to give you any specific numbers at this point. But we are going to look at where all the labor pressures are falling out and as Greg mentioned I think in his remarks we do have an opportunity and have started and we talked about in the past a little bit more regional pricing ability, we were fairly flat across our all of our markets in terms of pricing and we started differentiating our pricing based upon obvious demographics and most importantly our cost structure, so we plan to continue that, if that only makes sense to take pricing where we have more competitive pricing room and the cost structure dictates it. So it is ongoing work as we look at next year and where labor ends up really falling out is going to be a big influence on that.

The only other thing I would add to it is I think relative to our peers or some of our peers in the industry, our fundamental strong value proposition and are just absolute price points for casual, we think do we give us some room over the medium and long term to make the right pricing decisions hopefully with less impact than others. Right. So it could end up being no one is a fan of increased labor cost. So but on a relative basis it could end up benefiting us given where we are on the pricing curve relative to competition.

Excellent, well. I think we are all waiting to see what happens when you guys start getting back to mid single digit or even low single digit our same-store sales in the environment that you have already done the margin improvement. So congratulations on the margin turnaround.

Thank you.

Thank you.

We will go next to Brian Bittner with Oppenheimer.

Great, thanks. This is Mike Tamas on for Brian. Just a quick clarification on the question, did you say that you are targeting $120 million of EBITDA for this year?

I don’t know if I just really said that was the target but for the first six months of this year we are at $60 million of EBITDA. So if you just kind of doubled it you get to $120 million from that standpoint.

It is more of a run rate than it is here.

Okay, okay. Got it thanks. And then the real question was sort of like on labor margins overall, I mean your per unit labor cost were down nearly 4% which is pretty impressive, was there anything sort of one timer in there, can we sort of expect those type of numbers going forward in the next couple of quarters?

Well Mike as I mentioned and I think this is important in the sense that the second quarter for us generally is our best margin quarter, BJ’s is a place that I guess lot of people coming for Father’s Day and Graduation you got Mothers Day in there, it is a very celebratory quarter so to speak and as a result our weekly sales average goes up into the $111,000, $112,000, $113,000 range we get some restaurants that do $160,000 actually even $200,000 sales weeks and you are going to leverage your business from that standpoint. So the 34% I think to some degree is going to be a low, it is going to be the high watermark for fiscal 2015. I do think as you look at our business quarter-over-quarter being comparing Q3 to Q3 of last year and Q4 2015 over Q4 of 2014 from last year, we will get some margin improvement assuming we can maintain relatively modest comps in the 1.5% range that we are seeing right now, I think we still have some opportunity for some improvements there. So there was anything that was specific in Q2 that drove down those labor percentage to 34% but I want to just make sure you are clear that 34% is based on the fact that our weekly sales average in Q2 is some of our highest weekly sales averages.

Great, thanks very much guys.

We will go next to Will Slabaugh with Stephens.

Yes thanks guys. I wanted to ask what you saw geographically, we have heard a number of other companies mentioned whether in Texas et cetera which may have weighed on patio sales and sales and discounts in general, some curious if that or other factors impacted your sales along with those events that you mentioned.

I think results would be consistent with what you are hearing elsewhere, we think weather certainly a factor. Texas was softer, we’ve mentioned that before California is the both Northern and Southern California have been strong markets and continue to perform the best of all of our markets. Texas have been a bit soft and Florida has been softer relative to California as well which I think it’s more of a function of business, the newness in the markets in Florida and some of our relatively newer restaurants coming into the comp base which are restaurants typically come into the company, a little bit negative. That gives a little color on the dynamics of the major markets.

Just adding onto Greg’s comment there, as a copy with the growth that we have and the amount of new restaurants coming with comp base, we’ve talked about this before because we get a lot of questions in regards to new unit productivity. Our new restaurants come in at the comp base negative, and that’s a drag on us, it’s probably a drag of somewhere in the neighborhood of about 50 to 75 basis points first quarter. We started seeing this really as we moved outside of California, a few years back and it impacts us first when we talked about 2011, or 2013 and in the class of 2011 came in at a comp base negative and we to break that out, the class of 2011 has performed in a positive comp sales perspective from that stand point. The class of 2012 as I came into the comp based back at last year, it came in negative. It’s coping positive and now we’ve got all the 2013 restaurants coming in and those 2013 restaurants ultimately right now are about a 50 basis points drag in our comp sales. And while I don’t like to get so specific that we’re always looking for excuses, trying to carve things out. But if we start to look at our trend basis and we start to think about the nine days in the quarter. that were 50 basis points, got the class of 2013 fits in there worth about 50 basis points. Both comparing ourselves maybe to more mature restaurant companies I’d probably think of our comp sales being colder that 0.5% range which we’re seeing now even with kind of the drag from the class of 13 into July. And that’s going to be with us. As I mentioned, class of 2011 as they cycled through it and they get to about I would say 30 months out of their opening time frame. They come positive and we’re seeing over the class of 2012 and it was 2013 class matures, I expect them to turn over just start to come positive just as the other classes have done as well.

Got it. That’s helpful. And update if you could on the mobile app, you didn’t mention at this quarter and you’ve given some stat in the past, just curious if you had any numbers around, kind of customer acceptance, you guys have signed up for. And then also any benefits that you may be able to see or speak to at this point, just frequency check average, table turn improvements et cetera.

It’s been we continue to be a bullish on what the app is going to do and me and for the business, it’s still at a very low level. It’s been pretty consistent on a percent of sales basis, it’s still 5%, in terms of overall app usage, and by the way we were proponents of seeing other concepts of spread similar kind of app adoption, we love that StarBucks is doing an order ahead up because that’s such a new concept, if people aren’t used to ordering ahead and actually dining in or even carrying out with the app. So we look forward to more adoption there, because as we said before and we think we have more to gain from a capacity [indiscernible] perspective than most other concepts given the kind of volumes we’re going, right. So we are continuing to add features to the app and working on that and think it will go. But it’s had a lower acceptance rate than we’d like to see because we are just impatient about it. But we continue to get really positive feedback and the folks that are using it, use it quite often. It’s just spreading that word and getting people more comfortable with its use on the phone.

Got it. Thanks, Greg.

Welcome.

We’ll go next to Nicole Miller with Piper Jaffray.

Thanks, good afternoon. Alcohol sales, what are they as a percent of sales fees and maybe what kind of trends are you seeing in beer, wine and spirits and what is the real long term opportunity?

Thank you and can we just also please get an update about off premise sales and where that is tracking and how you see the long term opportunity?

Off premise sales for us is somewhere is in the kind of 4% to 5% range fairly consistent it was in the 3%, 3.5% range and then about I would say maybe five years ago we put some emphasis behind it moves it up into the 4% or 5% range one of the areas that we think we got opportunity with off premise sales frankly is the mobile app, it is amazing we are able to place your order on the mobile app, pay on the mobile app and just tick it up and people that we see in our direct connect results that is kind of our daily surveys, I will do it this way, love the off premise side of our business in that regards, so we think there is opportunity to continue to increase that and in fact we are working on some catering and some other things that we are just kind of changing at the menu making little bit easier that we expect to have rolled out here towards the second half of 2015.

I think I personally think given the amount of carry take out business the world of fast casuals doing is making it even more common place and is an opportunity for us in casual dining that and giving like Greg said the app and the variety of menu food on our menu were a great option for family and large group seating, so I am actually pretty bullish about the opportunity for that aspect of our business to grow.

Thank you very much.

We will go next to Sam Beres with Robert W. Baird.

Hi good afternoon. Thanks for taking the question. First Greg Levin in terms of the restaurant level margin for this year, I think you previously mentioned kind of thinking of a mid to high 18% range assuming a specific level of comps, so just wondering if you could provide a little more perspective on your head maybe in terms of where you think you will end up for the year there and kind of what level of comps you are assuming in the back half in terms of that perspective?

Well couple of things, one is we don’t really comment on comps that give kind of where we are seeing comps right now for menu pricing and some of the mixed terms that we talked about from that standpoint, I do think though that we kind of talked about getting this year into the 18 and next year being our bogey year to get back into the 19. I would expect Q3 and Q4 just restaurant level margins in general probably be back into the 18% ranges or so and that is more predicated on our weekly sales averages coming down. If you look historically our BJ’s Q3 and Q4 are two lowest weekly sales average quarters of the year and as a result margins come down a little bit but because we started this year pretty strong where we started with an 18.9 in Q1 and 20.9 in Q2 I would tend to think that generally speaking we will probably be close to that 19% range or better than it, when you aggregate the full-year fiscal 2015, however I think our goal is to be consistently over 19% each and every quarter and I am not sure where they were yet, that is why I think you will start to see some other operational improvements we have lined up going into next year.

That is a great perspective, thanks and you guys have been mentioned in terms of where you have seen test metrics trending lately just given continued menu innovation, some of the other drivers and offering such as the mobile app, so maybe you could talk about what you have seen lately in terms of guest metrics and early just your confidence in being able to continue to margin expansion without impacting any of the guest experience. Thanks.

I’m not sure Sam what you mean by guest metrics, you have given fair amount of details on comps and traffic side, we do track feedback from our guest through our loyalty program and we are looking at those every single day and it tracks the fundamental components of the guest experience in our restaurants including food quality and speed and cleanliness of the server et cetera, cleanliness so we continue to form very, very well we keep obviously a very, very close eye on those metrics because we want to make sure particularly as we are pursuing a more efficient restaurant operations that we are not doing that at the expense of the guest experience on quite the contrary we want to see that moving towards the improvement side of things. So we are very, very confident as I said that this is the new food and the improvements we have made in the menu are resonating by what we see selling on each of our restaurants and overall guest experience is improving as well.

Great that is what I was looking for, thank you.

Thank you.

We will go next to Chris O'Cull with KeyBanc. Christopher O’Cull: Thanks good afternoon guys. Greg in the past you have talked about shifting marketing dollars, would you talk a little bit about how the spend is allocation I guess is marketing has changed and maybe what impact you are seeing from it?

We have continued to emphasize a in general shift away from traditional most notably and into digital and our loyalty marketing Chris, so lot of that is continues to be test and learn but I can say that we continue to be very pleased with kind of activity levels we are able to generate when we talk to folks in our loyalty program, so that has become an increasingly valuable weapon if you will both from a surprise and delay perspective and to get more targeted and promotional activity. So that is clearly becoming a bigger part of what we do and then we are emphasizing just general digital we are out there both socially but also through taking video content and using digital distribution to spread our brand as you know we don’t have the kind of density for TV to work consistently much outside certainly our California market, so we are pushing hard on both traditional SEO, traditional SEM side of digital but also some of the new channels in terms of video, video content in particular. Christopher O’Cull: Okay. And then can you talk a little bit about the opportunity to improve throughput in other than the app and capacity utilization during peak periods, I would think given the performance in California that would be one of your biggest opportunities to grow traffic is to just reduce the wait time period California in particular.

It is not just California by the way; I mean we run lot of ways in Texas and all of our markets. So in general it is one of the biggest opportunities that we have and… Christopher O’Cull: Outside of the app, what are you doing to improve it?

We are continuing through Project Q and the work that we are doing on the kitchen side is looking at literally every recipe and sub recipe to see how we can attack that speed to the guest without sacrificing quality, so lot of Project Q, we do talk about the quality and efficiency side of it but speed, sped is part of it and I would say fairness we made more progress on fundamental quality in innovation and the efficiency side, we’ve but speed is part of that. And there is still lies an opportunity there, I give you an example have not cracked a code on but if we could take our deep dish pizza from two passes in the oven to one, it would be life changing, right? And so it’s things like that I mean, looking at our kitchen times for every one of these recopies and seeing how we can work on that. And then just the fundamental front of house getting better at the block and tackling of server deployment and making sure we’re turning tables as quickly we can always get better at that kind of and I mean we’re looking at all the signs of that deployment, and seeing if there are things that we can do even with technology to improve speed in the front of the house and that’s in the serve times. Christopher O’Cull: Pay at the table top tablets, I mean why isn’t that something that you guys are considering I mean the adoption rates are really high, when you have tablets at the table. Why not consider that as a way to speed up the meal duration period.

Well, what we’ve said before is we haven’t ruled it out, we haven’t pursued that aggressively or just haven’t pursued it because of the concerns around first of space on the table top and we have actually have some brand concerns about it, right, but that said we are not saying never and we are looking at it closely the only other thing I would add there is we do believe we have great functionality in our app and eventually the market is going to go to tablet and phones, right. And so our concern there it is to be honestly is from a cost structure perspective as well as are we taking on technology that’s not going to be two or three from now or name your timeframe. The way these transactions are conducted, so we may be a little ahead of our time here but it may be worth being patients in return for not being committed to technology that’s going to be obsolete soon or rather than later. And look I’m not a forecaster, I’m not saying that’s the case but I’m telling how we’re thinking about the pros and cons. Christopher O’Cull: Thanks, guys.

We’ll go next to Nick Setyan with Wedbush Securities.

Hey, guys. Thanks for taking my question. If I’m not mistaken last year Q3 transactions were positive 70 basis points and given that kind of color you gave on the quarter kind of mix and average track and pricing break down. That kind of implies more or less a flat transaction on a three year basis, is that kind of a correct assumption.

Actually that’s pretty, that’s somewhat reasonable half.

I mean the guy has always been to cash which stabilize the business I guess on a two year basis and I mean are we kind of there yet, already and kind of going forward I mean given some of these drivers there even with some of the mix shift on the calendar and so on. But on a two year basis, I mean is that kind of correct assumption are you guys are pretty much at least flat, you guys have already gotten the business there?

I think there is a always opportunity for us to improve the business, Nick. But we do look at that three year guest traffic metric either instant of things and as well as comp sales topline and so on. And I think underlying some of those metrics on a two year basis, we are pretty consistent in that regards and what makes us feel good about those obviously we’ve been able to stabilize that but then we’ve been able to get some great leverage out of business based on everything that we put in place. That being said, we continue to work on one the branding and marketing of our business, strive more awareness because BJ’s what we have seen over the years is better awareness at BJ’sthose drive traffic or drives trial which ultimately drives traffic into our restaurants. We continue to work on menu mix and coming up with creative new menu items and I think it can get us may be above kind of the incentive rates and other things to drive comp sales maybe above where they are currently, but I do look at some of the things are you talking about there which we do look at that’s your assumption to analysis is not far off.

When does the other way that we look at it is like everyone we pay close attention to what the industry is doing, right. And we want to be leading the industry on traffic and that’s why we call out that we’ve done that 10 out or last 12 periods and June was one of the misses but we think more driven by the calendar and sporting events but aside there is just certain element of what is going on in the industry in macro economy that we control or can’t control, so we want to be taking share at the end of the day and so we do look at on a absolute basis obviously but that relative metric is important to us.

Do you guys really talk about I mean it is great to see, I mean you guys are down mid single digits and then low single on to your base and now you are flat, I mean maybe you guys could talk about some specific example of some drivers where we currently see and I guess year-over-year accounts have shipped and so on but I mean are we kind of poised here in your opinion to get the three year transaction front positive even starting in Q4 maybe or early 2016?

We wish we had that crystal ball. I can say there's no one thing that we do to drive traffic, it is the combination of the fundamentals in the restaurant business are serve great food, we made really good progress and are very proud of what we have done from our menu perspective and the distinctness of those items, I think we are getting better in the data would suggest from a hospitality perspective, if marketing is better and important part of what we are doing and our teams are getting more experienced, it is like we are in a people business here and we continued to get better at helping them do their jobs better and executing our restaurants. So we wish we have the arithmetic formula that could tell you exactly what has been driving the improvement one versus the other because then we focus on that item even more but it is a combination of all that results in a guest experience that people say look I want to go back there and we continue to be think we are headed in the right direction on that front.

Great, thank you.

Ladies and gentlemen we have time for one last question; our final question will come from Paul Westra with Stifel.

Great thank you. Good afternoon. Just couple of clarifications and maybe one more question. On the menu management efforts as far as the quantity of menu items you said down to 139, recall I think your brand new stores opening with menu a little lower than 120 and then you have some legacy stores higher as it still got decent distribution there?

No thank you for asking that Paul and this latest menu go round we sort of equalized everyone, so we are managing a number of permutations of menu and we still do have quite a few permutations for other reasons but everyone is on just about essentially the same, the same menu now and we are looking at and working on the next test iteration to bring that down on a net basis we will add items like we have in the past, we will take out more than we added and test that before we roll that out nationally but thanks for that clarification. Just everyone is on that basically that same food and menu items on the food basis.

And the trajectory is still down I think from here but not suspect?

Yes look my perspective is we still have room but we got to be careful, I mean we are not going to build sales by taking items off our menu right, so the trick here is like I just mentioned we are going to add a few more and then take off slightly more than we are adding to get there, because there are fans out there of everything that is on menu right now, we hear that every day in our direct connect surveys and people are still asking for the [indiscernible] we took off before even joining BJ’s and so we are very conscious of that but I do think the optimal guest experience that we can provide there is still room that we can get that number down.

And then just a more follow up on pricing, it sounds like recent new initiative, you have been implementing little more sort of regional pricing safe to say just preparing perhaps to get much more reasonable pricing perhaps in the 16, you get the wide variety of the wage changes throughout the States needs.

Yes I think that is fair, look we can’t get the kind of again we don’t have a magic number there but conceptually we are not going to get to the kind of spreads we think are appropriate all that once because for obvious reasons I think right. So we are getting there a bit out of time and that will be with emphasized somewhat by what is happening in the differential and labor markets right.

Okay. And maybe last question on the labor market, your overall turnover [indiscernible] incremental pickup of wage rate inflation but is the turnover being impacted as well?

Yes so my summary there would be we have actually held a line on wage it is pretty well and this started in effort last year as we gotten more given our operators more guidance around what competitive wage rates are at the market level and that is something we have been working on that helped us offset some of the pressures where we have to increase wage rates. So year-to-date our wage rate number is has not grown much at all but we don’t expect that to continue frankly, I mean there is increasing wage pressure for all the reasons, you guys know and you have heard about the general economy plus, the number of restaurant openings out there put pressures particularly on the back of house right and so we don’t think that is a sustainable condition for sure, so and in terms of turnover we heard us talk about this consistently through the year as you followed BJ’s long time. We have maintained turnover rates at the manager level and at the hourly team member level that have been pretty significantly below the industry and from latest data that we see we continue to do that but we have seen an uptick in turnover at both levels and it is something we are obviously keeping a close watch on but look we review turnover at the manager level by person and it is a combination of it is certainly competition and new openings and new concepts that are out there on the scene but surprising number I think we surprised you guys how many people that are leaving the industry as more opportunities as the economy improves and people are just I want to try different in my career and I’m going to go and do something very, very different as probably I don’t know I’m same [indiscernible] but I don’t know it surprises if it is 40% or 50% of the turnover we are seeing.

Okay. It is helpful and then thanks.

Thanks Paul.

Thanks Paul. All right. Operator we thank everyone for attending our call and we are on if anybody has got questions, feel free to call the office.

Thank you.

And Ladies and gentlemen once again that does conclude today’s call. We do appreciate everyone’s participation.