operations, as could other occurrences in Texas such as local strikes, energy shortages or extreme fluctuations in energy
prices, droughts, earthquakes, fires or other natural disasters.
Changes in consumer preferences and discretionary spending could adversely affect our business.
Our success depends, in part, upon the popularity of our food products. Continued social concerns or shifts in
consumer preferences away from our restaurants or cuisine, particularly beef, would harm our business. Also, our
success depends to a significant extent on discretionary consumer spending, which is influenced by general economic
conditions and the availability of discretionary income. Accordingly, we may experience declines in sales during
economic downturns or during periods of uncertainty. Any material decline in the amount of discretionary spending
could have a material adverse effect on our business, results of operations, financial condition or liquidity.
Our quarterly operating results may fluctuate significantly and could fall below the expectations of securities analysts
and investors due to a number of factors, some of which are beyond our control, resulting in a decline in our stock
price.
Our quarterly operating results may fluctuate significantly because of several factors, including:- the timing of new restaurant openings and related expenses;
- restaurant operating costs for our newly-opened restaurants, which are often materially greater during the first
several months of operation than thereafter; - labor availability and costs for hourly and management personnel including mandated changes in federal and/or
state minimum and tipped wage rates, overtime regulations, state unemployment taxes, or health benefits; - profitability of our restaurants, particularly in new markets;
- changes in interest rates;
- the impact of litigation, including negative publicity;
- increases and decreases in average unit volume and comparable restaurant sales growth;
- impairment of long-lived assets, including goodwill, and any loss on restaurant relocations or closures;
- general economic conditions which can affect restaurant traffic, local labor costs, and prices we pay for the
food products and other supplies we use; - negative publicity regarding food safety and other food and beverage related matters, including the integrity of
our, or our suppliers’ food processing; - negative publicity regarding health concerns and/or global pandemics;
- negative publicity relating to the consumption of beef or other products we serve;
- changes in consumer preferences and competitive conditions;
- expansion to new domestic and/or international markets;
- adverse weather conditions which impact guest traffic at our restaurants;
- increases in infrastructure costs;
- adoption of new, or changes in existing, accounting policies or practices;
- changes in and/or interpretations of federal and state tax laws;
- actual self-insurance claims varying from actuarial estimates;