Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Mr. Paul Wister - Cowan.
Paul Westra – SG Cowen
I wonder if you wouldn’t mind repeating your monthly comp trend conversation. You said February and March were a little better?
Ronald M. DiNella
Yes, that’s right. I will repeat it specifically, but January was generally consistent with December and soft and we saw mixed and slightly better results in February and March.
Thomas J. Baldwin
But, Paul, I think it’s important to note that there were no discernable trends to drop from. It was, I’ve heard the term lumpy used. So it was, I don’t know that we have any clear trends to drop from here.
Paul Westra – SG Cowen
I assume that excludes the January New Year’s effect.
Thomas J. Baldwin
Yes.
Paul Westra – SG Cowen
And then could you give a little color on the check change? I assume it was negative and to what degree it was?
Ronald M. DiNella
The average check was not negative. It was generally consistent and we do have some pricing that we have pricing in. And we’re seeing . . .
Paul Westra – SG Cowen
I’m sorry, not the check. The mixed. Excluding pricing.
Ronald M. DiNella
Not necessarily. No, we have not seen any significant change in our mix.
Paul Westra – SG Cowen
Is pricing still 4.2% in the first quarter from when? When was the price taking again?
Ronald M. DiNella
2% in June 2007, so that will roll off in June. 1.5% in December 2007. And 1% in February 2008.
Paul Westra – SG Cowen
With the current outlook I assume that’s a complete roll off with no additional pricing?
Ronald M. DiNella
Yes. That’s the current outlook.
Paul Westra – SG Cowen
And question on cost of goods. I’m a little confused. You mentioned beef costs. Even year to date, some of the trends we looked at, it looks like prime has been down, kind of all year, but more so here of late. Didn’t you see a benefit in the first quarter and then why would you predict up buy pricing for beef.
Ronald M. DiNella
First of all, if you recall, last year we were locked in for the full year. I think we had some very good prices last year, probably below market for most of the year. We have locked in some of our beef purchases and we did earlier in the year and some in December as well. And we also are anticipating that there will be an up tick in costs for the balance of the year. So we did see some benefits during the quarter, but generally that’s our guidance.
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