Earnings call · Chipotle
Wed Oct 28, Saidwire live coverage archive
https://saidwire.com/archive/earnings-cmg-oct28

STORY (final version)

Chipotle Q3 comps rise 2.1%, but margin falls; Q4 comps seen near 2%, margin under 22%
Executives said industry headwinds slowed sales from mid-July and that October softened, with a smoked brisket launch next week expected to lift the fourth quarter's exit rate.

Chipotle Mexican Grill reported third-quarter comparable restaurant sales growth of 2.1% on sales of $3.3 billion, up 9.6%, and guided to fourth-quarter comps of "around a plus 2%" with a restaurant-level margin just under 22%, executives said on the company's earnings call. Adjusted diluted earnings per share fell 7% from a year earlier, and restaurant-level margin was 23.3%, down 120 basis points.

OCTOBER SOFTNESS, BRISKET LAUNCH
Chief Financial Officer Adam Rymer said industry headwinds beginning in mid-July slowed the company's momentum, prompting promotional offers, and that trends normalized by late August and improved further in September. "October trends have softened consistent with the broader industry," he said. CEO Scott Boatwright said the company finished September with comps up 3.8% and "very little promo activity," and that it has since "regained positive transactions" after a pullback in early October. The company expects an exit rate of 3% to 4% for the year, fueled by the smoked brisket launch next week, and reiterated its low-single-digit comp guidance for 2026. Third-quarter transactions rose 0.8%, and digital sales were 38.8% of the total.

MARGINS, PRICING AND 2027
Third-quarter cost of sales was 29.5%, down about 50 basis points, as menu pricing and tariff relief more than offset inflation driven mainly by beef and freight. Labor was 25.7%, up about 50 basis points, and other operating costs were 16%, up about 100 basis points on marketing, delivery mix and inflation. For the fourth quarter, the company expects cost of sales near 30.5% because of brisket, and marketing in the high-3% range of sales. Rymer said about half of the roughly 150-basis-point year-over-year margin decline is a gift card breakage benefit in the prior year, with the remainder tied to brisket marketing and sales volume. Pricing was about 2.7% in the third quarter and is expected near 3% in the fourth, bringing 2026 pricing to around 2%. For 2027, the company anticipates overall inflation in the low-to-mid single-digit range and said a nominal comp of about 4% would be needed to stabilize margins at 3% inflation. Rymer said a mid-24% margin is a baseline for 2027 if pricing offsets inflation and the company adds at least a point of transaction growth. No 2027 comp guidance was given. Boatwright put 2027 marketing at around 3% of sales.

EXPANSION, BUYBACKS AND INTERNATIONAL
Chipotle opened 84 company-owned and five partner-operated restaurants in the quarter, entering Mexico, Saudi Arabia and South Korea, and now operates in 11 countries. It plans about 350 openings this year and 340 to 360 company-owned openings in the U.S. and Canada in 2027, plus 15 to 25 partner-operated restaurants abroad. Asked about the pace of Middle East growth, Boatwright said it "will really depend on what's going on with the conflict in the Middle East." The company ended the quarter with $1 billion in cash and investments and no debt, has repurchased $1.4 billion of stock this year, and has about $1.6 billion remaining under its authorization. Rymer said a blackout period kept it out of the market for part of the quarter. Boatwright said catering and group occasions represent 2% to 3% of sales and will roll out nationally in the first quarter.

BULLETINS
4:32:31 PM ET  CHIPOTLE CEO: Q3 REVENUE GROWTH 9.6%, POSITIVE COMPARABLE SALES AND TRANSACTIONS
4:34:42 PM ET  CHIPOTLE CEO: HIGH EFFICIENCY EQUIPMENT PACKAGE NOW INSTALLED IN OVER 1,700 RESTAURANTS
4:36:06 PM ET  CHIPOTLE CEO: AIMS FOR ABOUT 2,000 RESTAURANTS WITH HIGH EFFICIENCY EQUIPMENT BY YEAR END
4:37:31 PM ET  CHIPOTLE CEO: TASTE OF FOOD SCORES UP NEARLY A POINT YEAR OVER YEAR
4:38:12 PM ET  CHIPOTLE CEO: AI-ENABLED COOK-TO-NEEDS TOOL, PILOTED IN Q3, NOW IN OVER 500 RESTAURANTS
4:38:54 PM ET  CHIPOTLE CEO: PLANS NATIONAL ROLLOUT OF AI COOK-TO-NEEDS TOOL EARLY NEXT YEAR
4:40:25 PM ET  CHIPOTLE: LOYALTY SHARE OF SALES RISES TO OVER 33%, HIGHEST EVER; 24 MILLION+ ACTIVE MEMBERS
4:44:37 PM ET  CHIPOTLE CEO: LOWER INCOME COHORTS OUTPERFORMED HIGHER INCOME COHORTS FOR FIRST TIME THIS YEAR
4:46:04 PM ET  CHIPOTLE CEO: POLLO ASADA ATTACHMENT RATE IN LOW TWENTY PERCENT RANGE, ABOVE PRIOR LAUNCH
4:46:52 PM ET  CHIPOTLE CEO: TO BEGIN NATIONAL CATERING ROLLOUT IN Q1 2027; SMOKED BRISKET RETURNS NEXT WEEK
4:50:14 PM ET  CHIPOTLE: OPENED 83 NEW RESTAURANTS IN Q3 IN U.S. AND CANADA, INCLUDING 53 CHIPOTLANES
4:51:40 PM ET  CHIPOTLE CEO: EXPECTS TO OPEN ABOUT 350 RESTAURANTS THIS YEAR; 340-360 COMPANY-OWNED IN 2027
4:53:05 PM ET  CHIPOTLE CEO: EXPECTS TO OPEN AROUND 15-25 RESTAURANTS OUTSIDE US AND CANADA IN 2027
4:53:45 PM ET  CHIPOTLE CEO: 18 RESTAURANTS IN MIDDLE EAST; 8 OPENED OUTSIDE US AND CANADA SO FAR IN 2026
4:54:28 PM ET  CHIPOTLE CFO: Q3 SALES GREW 9.6% TO $3.3 BLN, COMPARABLE RESTAURANT SALES +2.1%
4:55:15 PM ET  CHIPOTLE CFO: Q3 RESTAURANT-LEVEL MARGIN 23.3%, DOWN 120 BASIS POINTS YEAR OVER YEAR
4:55:57 PM ET  CHIPOTLE CFO: ADJ Q3 EPS $0.27, DOWN 7% VS LAST YEAR; TRANSACTION COMP +0.8%
4:56:37 PM ET  CHIPOTLE: CONFIDENT IT WILL DELIVER ON LOW SINGLE DIGIT COMPS GUIDANCE FOR 2026
4:57:25 PM ET  CHIPOTLE: OCTOBER TRENDS HAVE SOFTENED, CONSISTENT WITH BROADER INDUSTRY
4:58:01 PM ET  CHIPOTLE CFO: Q3 COST OF SALES 29.5%; SEES Q4 AROUND 30.5% ON SMOKED BRISKET LTO
4:58:53 PM ET  CHIPOTLE CFO: Q3 LABOR COSTS 25.7%; SEES Q4 LABOR AROUND 26%
5:00:07 PM ET  CHIPOTLE CFO: SEES Q4 RESTAURANT-LEVEL MARGIN JUST UNDER 22%, ABOUT 150 BPS LOWER YOY
5:00:46 PM ET  CHIPOTLE CFO: Q3 OTHER OPERATING COSTS 16%; SEES Q4 AROUND 16%, MARKETING HIGH-3% RANGE
5:01:32 PM ET  CHIPOTLE CFO: Q3 G&A $185 MLN GAAP, $184 MLN NON-GAAP; SEES Q4 NON-GAAP G&A ~$189 MLN
5:02:14 PM ET  CHIPOTLE CFO: YTD BUYBACKS $1.4 BLN AT AVG $34.32; ABOUT $1.6 BLN LEFT UNDER AUTHORIZATION
5:02:52 PM ET  CHIPOTLE CFO: Q3 EFFECTIVE TAX RATE 25.6%; SEES FY26 UNDERLYING RATE 24%-26%
5:03:37 PM ET  CHIPOTLE CFO: ENDED Q3 WITH $1 BLN IN CASH, RESTRICTED CASH AND INVESTMENTS, NO DEBT
5:05:01 PM ET  CHIPOTLE CEO: SEPTEMBER COMPS UP 3.8%, REGAINED POSITIVE TRANSACTIONS AFTER OCTOBER PULLBACK
5:05:43 PM ET  CHIPOTLE CFO: SEES Q4 COMPS AROUND +2%; EXIT RATE 3%-4% ON BRISKET LAUNCH NEXT WEEK
5:06:25 PM ET  CHIPOTLE CFO: TOO EARLY TO GUIDE 2027 COMPS, WILL DO SO AT NEXT CALL
5:07:52 PM ET  CHIPOTLE CEO: ~1,700 RESTAURANTS HAVE FULLY LOADED HEAP, SEEING PLUS TWO ENTREES VS BASE
5:10:31 PM ET  CHIPOTLE CEO: HAS HAD POSITIVE TRANSACTIONS ALL THREE QUARTERS OF 2026 SO FAR
5:12:39 PM ET  CHIPOTLE CFO: SEES Q4 TRANSACTIONS ABOUT FLAT, MIX -1%; FY26 MARGIN MID-23% RANGE
5:14:09 PM ET  CHIPOTLE CFO: 2027 MARGIN BASELINE MID-24%; NEEDS ~4% NOMINAL COMP TO STABILIZE MARGIN
5:14:51 PM ET  CHIPOTLE CMO: 2027 MARKETING BASELINE ~3% OF SALES, CAN FLEX UP OR DOWN
5:17:08 PM ET  CHIPOTLE CEO: TESTING REMODELS IN CA, TX, FL; WILL UPDATE ON REMODEL STRATEGY ON Q1 CALL
5:17:51 PM ET  CHIPOTLE CEO: SEES ABOUT FOUR CENTER-OF-PLATE LTOS IN 2027, MIX OF NEW AND RETURNING ITEMS
5:18:33 PM ET  CHIPOTLE CEO: WILL BE MORE FRONT-FOOTED ON BEVERAGE INNOVATION IN 2027 VIA BEVERAGE PARTNERS
5:21:25 PM ET  CHIPOTLE CFO: 2% PRICING RATE NOT EXPECTED IN 2027; WILL GIVE MORE COLOR LATER
5:22:07 PM ET  CHIPOTLE CFO: PRICING FLEXIBLE, CAN BE DISCONTINUED ALTOGETHER BASED ON CONSUMER ENVIRONMENT
5:22:52 PM ET  CHIPOTLE: HEAP RESTAURANTS SEEING COMP LIFTS SUSTAIN IN COUPLE HUNDRED BASIS POINT RANGE
5:23:32 PM ET  CHIPOTLE CFO: Q3 MIX IMPACT ABOUT -1.4%; REWARDS ~33% OF SALES VS ~30%-31% LAST YEAR
5:25:39 PM ET  CHIPOTLE CFO: EXPECTS ROUGHLY 100 BPS DRAG FROM GROUP SIZE TO CONTINUE AS REWARDS GROW
5:26:19 PM ET  CHIPOTLE: REWARDS PROGRAM HAS 24 MILLION MEMBERS DRIVING 33% OF TRANSACTIONS; SEES MUCH HIGHER
5:27:45 PM ET  CHIPOTLE: CATERING SEEN AS NATIONAL ROLLOUT IN Q1; GROUP OCCASIONS 2%-3% OF SALES TODAY
5:28:25 PM ET  CHIPOTLE: 15-25 INTERNATIONAL OPENINGS NEXT YEAR ALL PARTNER OPERATED; 340-360 EQUITY OWNED
5:29:06 PM ET  CHIPOTLE: COMPANY-OPERATED EUROPE COMPS LOW DOUBLE DIGITS IN Q3, HIGH SINGLE DIGITS IN Q2
5:29:50 PM ET  CHIPOTLE CEO: POSITIVE TRANSACTIONS IN EVERY QUARTER OF 2026; 140,000 TEAM MEMBERS

POSTS (quotes verbatim; each shows when the words were said and when we drafted it)

Chipotle CEO Scott Boatwright said on the company's earnings call that "broader consumer and industry headwinds may continue," after citing third-quarter revenue growth of 9.6%.
  said 4:33:04 PM ET · drafted 4:33:20 PM ET

Chipotle CEO Scott Boatwright said restaurants with its high efficiency equipment package are "delivering hundreds of basis points of comparable sales uplift" during the company's third-quarter earnings call.
  said 4:34:29 PM ET · drafted 4:34:39 PM ET

Chipotle said its high efficiency equipment package, known as HEEP, is now installed in "over 1700 restaurants" and that it continues to work toward approximately 2,000 restaurants by year end.
  said 4:34:42 PM ET · drafted 4:37:27 PM ET

Chipotle's AI-enabled cook-to-needs tool, which entered pilot in the third quarter, is "now rolled out to over 500 restaurants," CEO Scott Boatwright said. A national rollout is planned for early next year.
  said 4:38:11 PM ET · drafted 4:38:26 PM ET

Chipotle plans to have its digital make line interface, Chipotle Kitchen, in "several 100" restaurants by year end, an executive said on the earnings call. The rollout is currently underway.
  said 4:39:05 PM ET · drafted 4:39:24 PM ET

Chipotle said loyalty members accounted for "over 33%" of sales in the third quarter, its highest share ever, an executive said on the company's earnings call Wednesday.
  said 4:40:10 PM ET · drafted 4:40:27 PM ET

"We saw lower income cohorts outperform higher income cohorts for the first time this year," a Chipotle executive said, with the greatest strength in September when promotional activity was at its lowest.
  said 4:42:28 PM ET · drafted 4:42:58 PM ET

Chipotle said its pollo asada limited-time offer is "driving incremental transactions and an attachment rate in the low 20% range," which it said was significantly higher than its prior launch.
  said 4:44:27 PM ET · drafted 4:45:02 PM ET

Chipotle said it will bring back smoked brisket for a limited time next week, "with a new and even more delicious recipe," an executive said on the company's third-quarter earnings call.
  said 4:45:01 PM ET · drafted 4:46:05 PM ET

Chipotle says it intends to begin rolling out national catering in Q1 of 2027. An executive said on the earnings call, "we intend to begin rolling it out in q1 of" 2027.
  said 4:46:03 PM ET · drafted 4:46:52 PM ET

Chipotle said early results from its "enormous bag" family meal campaign showed "a step up of over 30% in family meal sales." Catering and family meals are about 3% of sales, it said.
  said 4:47:04 PM ET · drafted 4:47:54 PM ET

Chipotle said three-quarters of its restaurants have apprentices and "we will begin expanding coverage incrementally in 2027." It said general manager and crew turnover are down year over year.
  said 4:48:10 PM ET · drafted 4:48:54 PM ET

Chipotle opened "83 new restaurants during the quarter, including 53 chipotlanes," an executive said on the Q3 earnings call. The company also opened its 1,500th Chipotlane.
  said 4:50:06 PM ET · drafted 4:50:16 PM ET

Chipotle executive on the Middle East, where it has 18 restaurants: "Our long term outlook in the region remains unchanged and we continue to believe it can support hundreds of chipotle restaurants over time."
  said 4:52:08 PM ET · drafted 4:52:20 PM ET

Chipotle said it expects to open "around 15 to 25 restaurants outside the us and Canada" in 2027. It also expects 340 to 360 company-owned openings in the U.S. and Canada.
  said 4:53:05 PM ET · drafted 4:53:23 PM ET

Chipotle CFO Adam Rymer said, "we are confident we will deliver on our guidance of low single digit comps for 2026," referring to full-year comparable sales. He said October trends have softened.
  said 4:55:46 PM ET · drafted 4:55:53 PM ET

"We currently anticipate overall inflation to remain in the low to mid single digit range," Chipotle CFO Adam Rymer said on the earnings call, referring to 2027. Pricing is expected to be about 3% in Q4.
  said 4:56:08 PM ET · drafted 4:56:39 PM ET

Chipotle's chief financial officer said "the benefits of menu pricing and tariff relief were more than enough to offset inflation." Q3 cost of sales was 29.5%, down about 50 basis points. Q4 is guided to around 30.5%.
  said 4:57:50 PM ET · drafted 4:58:54 PM ET

Chipotle's CFO said fourth-quarter margins will be "just under" 22%, roughly 150 basis points lower than last year after normalizing for a 70 basis point gift card breakage benefit in the prior year.
  said 4:59:22 PM ET · drafted 5:00:08 PM ET

"We ended the quarter with $1 billion in cash, restricted cash and investments and no debt," Chipotle's CFO said on the company's third-quarter earnings call.
  said 5:01:24 PM ET · drafted 5:01:33 PM ET

Chipotle says it has repurchased $1.4 billion in stock this year and has about $1.6 billion left. "We believe our shares are undervalued and we look forward to returning to the market as soon as the earnings blackout lifts."
  said 5:01:54 PM ET · drafted 5:02:46 PM ET

"We anticipate that our q4 comps will actually be around a plus 2%," a Chipotle executive said on the earnings call, citing a choppy start to October. The exit rate is expected to be 3% to 4%.
  said 5:05:20 PM ET · drafted 5:05:38 PM ET

Chipotle CEO Scott Boatwright said the company finished September comparable sales up 3.8%, saw "some broader industry pullback in the first part of October" and has since regained positive transactions.
  said 5:04:38 PM ET · drafted 5:07:05 PM ET

Chipotle CEO Scott Boatwright said stores with new equipment fully loaded, about 1,700, are seeing "plus two entrees in those restaurants as compared to the base." Rollout is near complete by end of 2027.
  said 5:07:43 PM ET · drafted 5:08:38 PM ET

Chipotle CFO Adam Rymer said that with brisket launching in November, there is "a little bit more spend in the last two months of the year," adding, "we expect marketing cost to be a little bit" in Q4.
  said 5:09:00 PM ET · drafted 5:09:51 PM ET

Chipotle's Scott Boatwright said the company has had "positive transactions all three quarters of the year thus far," responding to an analyst's question on traffic. He said the company is not giving 2027 guidance.
  said 5:10:05 PM ET · drafted 5:11:06 PM ET

Chipotle's CFO said 2026 margin should land in the "mid-twenty 3% range" and that "call it a mid-twenty four margin is kind of the baseline" for 2027. He said a 4% comp may be needed to stabilize margin.
  said 5:12:37 PM ET · drafted 5:14:10 PM ET

Chipotle CEO Scott Boatwright said 2027 marketing spend should be around 3% of sales, a range that "could flex up or down." An analyst noted spending is up more than 20% this year.
  said 5:14:14 PM ET · drafted 5:15:25 PM ET

"I think it could be a really big opportunity for the brand," Chipotle CEO Scott Boatwright said Wednesday of remodeling older restaurants. He said the company is "in the very early days of testing" them.
  said 5:15:55 PM ET · drafted 5:16:26 PM ET

Chipotle CEO Scott Boatwright said the chain is "setting up the calendar to have about four center of the plate ltos" in 2027. He said Chipotle will be "more front footed on beverage innovation."
  said 5:18:19 PM ET · drafted 5:19:54 PM ET

Chipotle executive on returning to roughly 2% annual price increases: "It's just not looking like that's gonna happen in 2027 at this point." The company said it will raise prices in a "measured patient way."
  said 5:20:45 PM ET · drafted 5:21:19 PM ET

"Those comp lifts have sustained in that couple 100 basis point range," a Chipotle executive said of restaurants with new high-efficiency equipment. Only about half of 1,700 equipped sites are seasoned enough.
  said 5:22:30 PM ET · drafted 5:22:47 PM ET

Chipotle executive: "Mix impact in the quarter, for example, was about a minus 1.4%." He said lower group size, driven by increased rewards engagement, drove the mix impact.
  said 5:23:07 PM ET · drafted 5:24:05 PM ET

"It's more of a national rollout in the upcoming quarter," Chipotle's executive said of catering. He said group occasions today represent "two to 3% of sales."
  said 5:26:28 PM ET · drafted 5:26:58 PM ET

"We actually had comps in the low double digit range in q3," a Chipotle executive said of company-operated restaurants in Europe. He said comps were in the "high single digit range in q2."
  said 5:28:53 PM ET · drafted 5:29:51 PM ET

Chipotle CEO Scott Boatwright said in closing remarks that the company has seen "positive transactions in every quarter" across 2026. He said Chipotle remains a growth brand with industry-leading economics.
  said 5:29:49 PM ET · drafted 5:31:11 PM ET

TRANSCRIPT (copy-edited; times Eastern)

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[4:30:11 PM ET] Good
[4:30:12 PM ET] afternoon and welcome to the next
[4:30:13 PM ET] Chipotle,
[4:30:13 PM ET] Mexican
[4:30:14 PM ET] Grills
[4:30:14 PM ET] Third
[4:30:14 PM ET] good afternoon and welcome to
[4:30:15 PM ET] quarter fiscal
[4:30:17 PM ET] 2026
[4:30:17 PM ET] Earnings
[4:30:18 PM ET] chipotle mexican grills third quarter fiscal twenty twenty six earnings call
[4:30:18 PM ET] call.
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[4:30:45 PM ET] Christian
[4:30:46 PM ET] D'Souza, Vice
[4:30:47 PM ET] President of the United
[4:30:48 PM ET] Investor
[4:30:49 PM ET] turn the conference over to christian d'souza vice president investor relations
[4:30:49 PM ET] Relations.
[4:30:49 PM ET] Please go
[4:30:49 PM ET] ahead and invest in the
[4:30:50 PM ET] please go ahead
[4:30:51 PM ET] Hello
[4:30:51 PM ET] everyone and welcome to the next
[4:30:52 PM ET] Chipotle,
[4:30:53 PM ET] Mexican
[4:30:53 PM ET] Girls
[4:30:53 PM ET] Third
[4:30:54 PM ET] Quarter
[4:30:54 PM ET] Fiscal
[4:30:55 PM ET] hello everyone and welcome to chipotle mexican grill's third quarter
[4:30:55 PM ET] 2026
[4:30:55 PM ET] earnings
[4:30:56 PM ET] fiscal twenty twenty six earnings call
[4:30:56 PM ET] call.
[4:30:56 PM ET] By
[4:30:56 PM ET] now,
[4:30:57 PM ET] you should be able to do
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[4:31:01 PM ET] investor
[4:31:01 PM ET] Relations
[4:31:02 PM ET] website
[4:31:02 PM ET] at
[4:31:04 PM ET] if not it can be found on our investor relations website at ir chipotle dot
[4:31:04 PM ET] com
[4:31:05 PM ET] ir.chupotle.com.
[4:31:05 PM ET] Additionally,
[4:31:06 PM ET] supplemental
[4:31:06 PM ET] investor
[4:31:06 PM ET] information is a very important thing to
[4:31:07 PM ET] information
[4:31:07 PM ET] is
[4:31:07 PM ET] available
[4:31:07 PM ET] on
[4:31:08 PM ET] our
[4:31:08 PM ET] site as a
[4:31:08 PM ET] reference to the
[4:31:09 PM ET] for
[4:31:09 PM ET] today's
[4:31:09 PM ET] additionally supplemental investor information is available on our site as a reference for today's
[4:31:10 PM ET] call
[4:31:10 PM ET] call.
[4:31:11 PM ET] I will begin by reminding
[4:31:12 PM ET] you
[4:31:12 PM ET] that today's call is a very important part of the
[4:31:12 PM ET] discussion is thing to
[4:31:13 PM ET] includes
[4:31:13 PM ET] forward
[4:31:14 PM ET] forward-looking
[4:31:14 PM ET] statements,
[4:31:15 PM ET] including
[4:31:15 PM ET] i will begin by reminding you that today's discussion includes forward looking statements
[4:31:15 PM ET] projections
[4:31:15 PM ET] about
[4:31:15 PM ET] our
[4:31:16 PM ET] future
[4:31:16 PM ET] business
[4:31:17 PM ET] financial,
[4:31:17 PM ET] and
[4:31:17 PM ET] other
[4:31:18 PM ET] performance
[4:31:18 PM ET] including projections about our future business financial and other performance results
[4:31:19 PM ET] results.
[4:31:19 PM ET] These
[4:31:19 PM ET] statements
[4:31:19 PM ET] are
[4:31:20 PM ET] based on the
[4:31:20 PM ET] management's
[4:31:21 PM ET] current
[4:31:21 PM ET] business
[4:31:21 PM ET] and
[4:31:21 PM ET] market
[4:31:22 PM ET] expectations and
[4:31:22 PM ET] are
[4:31:23 PM ET] actual
[4:31:23 PM ET] results are not
[4:31:23 PM ET] could differ from the
[4:31:23 PM ET] these statements are based on management's current business and market
[4:31:24 PM ET] materially from the
[4:31:25 PM ET] those
[4:31:25 PM ET] projected in the
[4:31:26 PM ET] forward
[4:31:26 PM ET] forward-looking
[4:31:26 PM ET] expectations and our actual results could differ materially from those projected in the forward
[4:31:27 PM ET] statements
[4:31:27 PM ET] statements.
[4:31:28 PM ET] Please see
[4:31:28 PM ET] today's
[4:31:28 PM ET] earnings
[4:31:29 PM ET] release
[4:31:29 PM ET] and
[4:31:29 PM ET] the risk of
[4:31:30 PM ET] factors
[4:31:30 PM ET] to
[4:31:30 PM ET] contained in
[4:31:30 PM ET] our annual
[4:31:31 PM ET] report
[4:31:31 PM ET] on
[4:31:32 PM ET] Form
[4:31:32 PM ET] please see today's earnings release and the risk factors contained in our
[4:31:32 PM ET] annual report on form ten ks
[4:31:33 PM ET] 10K and in
[4:31:33 PM ET] our Form
[4:31:34 PM ET] 10Qs for
[4:31:34 PM ET] a
[4:31:35 PM ET] discussion
[4:31:35 PM ET] of
[4:31:35 PM ET] risks
[4:31:35 PM ET] that may be a very important
[4:31:36 PM ET] cause
[4:31:36 PM ET] our
[4:31:36 PM ET] actual
[4:31:37 PM ET] results
[4:31:37 PM ET] to
[4:31:37 PM ET] vary
[4:31:37 PM ET] from
[4:31:37 PM ET] these
[4:31:38 PM ET] and in our form ten qs for a discussion of risks that may cause our actual results to vary from
[4:31:38 PM ET] forward
[4:31:38 PM ET] forward-looking
[4:31:39 PM ET] forward looking statements
[4:31:39 PM ET] statements.
[4:31:40 PM ET] Our discussion
[4:31:40 PM ET] today
[4:31:40 PM ET] will
[4:31:40 PM ET] include
[4:31:41 PM ET] non-GAP
[4:31:41 PM ET] financial
[4:31:42 PM ET] our discussion today will include non gaap financial measures
[4:31:42 PM ET] measures.
[4:31:43 PM ET] a reconciliation of the measure of the
[4:31:43 PM ET] to
[4:31:44 PM ET] GAAP
[4:31:44 PM ET] measures
[4:31:44 PM ET] can
[4:31:44 PM ET] be found in the
[4:31:44 PM ET] United
[4:31:45 PM ET] via
[4:31:45 PM ET] link to
[4:31:45 PM ET] the
[4:31:45 PM ET] in closed
[4:31:45 PM ET] United
[4:31:45 PM ET] the
[4:31:45 PM ET] on
[4:31:46 PM ET] previous
[4:31:46 PM ET] presentation's
[4:31:47 PM ET] page
[4:31:47 PM ET] with
[4:31:47 PM ET] a reconciliation to gaap measures can be found via the link in
[4:31:47 PM ET] the
[4:31:48 PM ET] investor
[4:31:48 PM ET] relations
[4:31:48 PM ET] section of
[4:31:49 PM ET] our
[4:31:49 PM ET] included on the presentations page within the investor relations section of our website
[4:31:50 PM ET] website.
[4:31:50 PM ET] We will
[4:31:50 PM ET] start
[4:31:51 PM ET] today's
[4:31:51 PM ET] call
[4:31:51 PM ET] with
[4:31:52 PM ET] prepared
[4:31:52 PM ET] remarks
[4:31:52 PM ET] from
[4:31:52 PM ET] Scott
[4:31:53 PM ET] we will start today's call with prepared remarks from scott boatwright
[4:31:53 PM ET] Boatwright,
[4:31:54 PM ET] Chief
[4:31:54 PM ET] Executive
[4:31:55 PM ET] Officer
[4:31:55 PM ET] and
[4:31:55 PM ET] Adam
[4:31:56 PM ET] Reimer, Chief Executive
[4:31:56 PM ET] Financial
[4:31:57 PM ET] chief executive officer and adam reimer chief financial officer
[4:31:57 PM ET] Officer, after
[4:31:58 PM ET] which
[4:31:58 PM ET] we
[4:31:58 PM ET] will
[4:31:58 PM ET] take care of the
[4:31:58 PM ET] your
[4:31:59 PM ET] after which we will take your questions
[4:31:59 PM ET] questions.
[4:31:59 PM ET] And with
[4:31:59 PM ET] that
[4:32:00 PM ET] I
[4:32:00 PM ET] will turn to the next
[4:32:00 PM ET] call
[4:32:00 PM ET] over
[4:32:00 PM ET] to
[4:32:01 PM ET] and with that i will turn the call over to scott
[4:32:02 PM ET] Scott.
[4:32:03 PM ET] Thank
[4:32:03 PM ET] you,
[4:32:04 PM ET] Christian, and good
[4:32:04 PM ET] afternoon
[4:32:05 PM ET] thank you christian and good afternoon everyone
[4:32:06 PM ET] everyone.
[4:32:06 PM ET] We are
[4:32:06 PM ET] pleased to see
[4:32:07 PM ET] the
[4:32:07 PM ET] momentum in
[4:32:07 PM ET] our
[4:32:08 PM ET] business
[4:32:08 PM ET] continue in the
[4:32:08 PM ET] course of
[4:32:09 PM ET] quarter
[4:32:09 PM ET] as
[4:32:09 PM ET] we
[4:32:10 PM ET] delivered
[4:32:10 PM ET] we are pleased to see the momentum in our business continue in the quarter
[4:32:10 PM ET] revenue
[4:32:10 PM ET] growth
[4:32:11 PM ET] of
[4:32:12 PM ET] 9.6%.
[4:32:12 PM ET] as we delivered revenue growth of nine point six percent
[4:32:13 PM ET] Once
[4:32:13 PM ET] again
[4:32:13 PM ET] including
[4:32:14 PM ET] positive
[4:32:14 PM ET] comparable
[4:32:15 PM ET] sales
[4:32:15 PM ET] and
[4:32:16 PM ET] once again including positive comparable sales and transactions
[4:32:17 PM ET] transactions.
[4:32:18 PM ET] These
[4:32:18 PM ET] results
[4:32:18 PM ET] were failed to be
[4:32:18 PM ET] by the sales of the
[4:32:19 PM ET] our
[4:32:19 PM ET] recipe for the rest of the
[4:32:20 PM ET] growth
[4:32:20 PM ET] these results were fueled by our recipe for growth strategy
[4:32:21 PM ET] strategy
[4:32:21 PM ET] as
[4:32:21 PM ET] we
[4:32:21 PM ET] continue
[4:32:21 PM ET] to be able to receive the
[4:32:22 PM ET] improve
[4:32:22 PM ET] restaurant
[4:32:23 PM ET] as we continued to improve restaurant execution
[4:32:24 PM ET] execution.
[4:32:24 PM ET] deepen
[4:32:25 PM ET] engagement
[4:32:25 PM ET] with
[4:32:25 PM ET] our
[4:32:25 PM ET] rewards
[4:32:26 PM ET] deepen engagement with our rewards members
[4:32:27 PM ET] members.
[4:32:27 PM ET] bring
[4:32:27 PM ET] new
[4:32:28 PM ET] craveable
[4:32:28 PM ET] innovation to the
[4:32:29 PM ET] bring new craveable innovation to the menu
[4:32:30 PM ET] menu
[4:32:30 PM ET] and
[4:32:30 PM ET] expand
[4:32:31 PM ET] and expand occasions
[4:32:32 PM ET] occasions.
[4:32:33 PM ET] Additionally,
[4:32:33 PM ET] our market is a very important
[4:32:34 PM ET] connection
[4:32:34 PM ET] with consumers are not
[4:32:35 PM ET] in
[4:32:35 PM ET] new
[4:32:36 PM ET] and
[4:32:36 PM ET] culturally
[4:32:36 PM ET] relevant
[4:32:36 PM ET] additionally our marketing connected with consumers in new and
[4:32:37 PM ET] culturally relevant ways
[4:32:37 PM ET] ways.
[4:32:38 PM ET] including
[4:32:38 PM ET] through
[4:32:38 PM ET] our
[4:32:39 PM ET] 100
[4:32:39 PM ET] Creators
[4:32:40 PM ET] including through our one hundred creators campaign
[4:32:41 PM ET] campaign.
[4:32:42 PM ET] and we've been opening
[4:32:42 PM ET] a
[4:32:42 PM ET] new
[4:32:42 PM ET] restaurant
[4:32:43 PM ET] nearly
[4:32:43 PM ET] every
[4:32:43 PM ET] day of the
[4:32:44 PM ET] and we've been opening a new restaurant nearly every day of the year
[4:32:44 PM ET] year.
[4:32:44 PM ET] and
[4:32:45 PM ET] see
[4:32:45 PM ET] tremendous
[4:32:46 PM ET] opportunity
[4:32:46 PM ET] to
[4:32:46 PM ET] continue
[4:32:46 PM ET] to
[4:32:47 PM ET] do
[4:32:47 PM ET] and see tremendous opportunity to continue to do so
[4:32:48 PM ET] so
[4:32:48 PM ET] even
[4:32:48 PM ET] in
[4:32:48 PM ET] our
[4:32:48 PM ET] most
[4:32:49 PM ET] dense
[4:32:50 PM ET] even in our most dense markets
[4:32:50 PM ET] markets.
[4:32:51 PM ET] Our
[4:32:51 PM ET] focus
[4:32:51 PM ET] remains
[4:32:52 PM ET] our focus remains clear
[4:32:53 PM ET] clear.
[4:32:53 PM ET] Strengthen what you can
[4:32:54 PM ET] differentiates
[4:32:55 PM ET] strengthen what differentiates chipotle
[4:32:55 PM ET] Chipotle.
[4:32:56 PM ET] Execute
[4:32:56 PM ET] with greater
[4:32:58 PM ET] consistency,
[4:32:58 PM ET] and
[4:32:58 PM ET] create
[4:32:58 PM ET] more
[4:32:59 PM ET] reasons
[4:32:59 PM ET] for
[4:32:59 PM ET] guests
[4:33:00 PM ET] to
[4:33:00 PM ET] execute with greater consistency and create more reasons for guest
[4:33:00 PM ET] choose
[4:33:00 PM ET] to choose us
[4:33:01 PM ET] us.
[4:33:02 PM ET] Broader
[4:33:02 PM ET] consumer
[4:33:02 PM ET] and
[4:33:03 PM ET] industry
[4:33:03 PM ET] headwinds
[4:33:03 PM ET] make
[4:33:03 PM ET] continue to be a good
[4:33:04 PM ET] broader consumer and industry headwinds may continue
[4:33:04 PM ET] but
[4:33:05 PM ET] initiatives
[4:33:05 PM ET] across
[4:33:06 PM ET] our
[4:33:06 PM ET] recipe
[4:33:06 PM ET] for
[4:33:06 PM ET] growth
[4:33:07 PM ET] strategy
[4:33:07 PM ET] are
[4:33:08 PM ET] but initiatives across our recipe for growth strategy are building
[4:33:08 PM ET] building
[4:33:08 PM ET] and
[4:33:08 PM ET] giving
[4:33:08 PM ET] us
[4:33:09 PM ET] more
[4:33:09 PM ET] tools
[4:33:09 PM ET] to
[4:33:10 PM ET] win
[4:33:10 PM ET] in
[4:33:10 PM ET] any
[4:33:11 PM ET] giving us more tools to win in any environment
[4:33:12 PM ET] environment.
[4:33:13 PM ET] We are still in
[4:33:13 PM ET] the early
[4:33:13 PM ET] stages of the
[4:33:14 PM ET] this
[4:33:14 PM ET] we are still in the early stages of this work
[4:33:15 PM ET] work
[4:33:15 PM ET] and
[4:33:15 PM ET] it's
[4:33:15 PM ET] gaining
[4:33:16 PM ET] and it's gaining traction
[4:33:17 PM ET] traction.
[4:33:17 PM ET] The progress we have to do
[4:33:18 PM ET] delivered
[4:33:18 PM ET] this
[4:33:19 PM ET] quarter
[4:33:19 PM ET] gives
[4:33:19 PM ET] us
[4:33:19 PM ET] even greater
[4:33:20 PM ET] conviction
[4:33:20 PM ET] in
[4:33:20 PM ET] our
[4:33:21 PM ET] the progress we delivered this quarter gives us even greater conviction in our
[4:33:22 PM ET] strategy
[4:33:22 PM ET] strategy and
[4:33:22 PM ET] the
[4:33:22 PM ET] multiple
[4:33:23 PM ET] avenues
[4:33:23 PM ET] we
[4:33:23 PM ET] have
[4:33:23 PM ET] to
[4:33:24 PM ET] drive
[4:33:24 PM ET] sustained
[4:33:25 PM ET] growth
[4:33:25 PM ET] at
[4:33:26 PM ET] and the multiple avenues we have to drive sustained growth at scale
[4:33:26 PM ET] scale.
[4:33:27 PM ET] In
[4:33:27 PM ET] in short
[4:33:27 PM ET] short,
[4:33:27 PM ET] we
[4:33:28 PM ET] are
[4:33:28 PM ET] a
[4:33:28 PM ET] category of
[4:33:28 PM ET] a group
[4:33:29 PM ET] we are a category leader
[4:33:30 PM ET] leader.
[4:33:30 PM ET] We have
[4:33:30 PM ET] a
[4:33:30 PM ET] uniquely
[4:33:31 PM ET] differentiated
[4:33:31 PM ET] brand
[4:33:32 PM ET] with strong
[4:33:33 PM ET] we have a uniquely differentiated brand with strong fandom
[4:33:33 PM ET] fandom.
[4:33:34 PM ET] and we
[4:33:34 PM ET] believe
[4:33:34 PM ET] much
[4:33:34 PM ET] of
[4:33:34 PM ET] our
[4:33:35 PM ET] growth
[4:33:36 PM ET] opportunity
[4:33:36 PM ET] is
[4:33:36 PM ET] still
[4:33:36 PM ET] in front of
[4:33:37 PM ET] and we believe much of our growth opportunity is still in front of us
[4:33:37 PM ET] of
[4:33:38 PM ET] us.
[4:33:38 PM ET] Now I'll walk
[4:33:39 PM ET] through
[4:33:39 PM ET] our
[4:33:40 PM ET] progress
[4:33:40 PM ET] across
[4:33:40 PM ET] each of
[4:33:40 PM ET] the
[4:33:41 PM ET] five
[4:33:41 PM ET] strategic
[4:33:42 PM ET] now i'll walk through our progress across
[4:33:42 PM ET] each of the five strategic pillars
[4:33:42 PM ET] pillars.
[4:33:43 PM ET] starting
[4:33:43 PM ET] with
[4:33:43 PM ET] our
[4:33:43 PM ET] first
[4:33:44 PM ET] starting with our first pillar
[4:33:44 PM ET] pillar,
[4:33:45 PM ET] protecting
[4:33:45 PM ET] and
[4:33:45 PM ET] strengthening
[4:33:45 PM ET] the
[4:33:46 PM ET] protecting and strengthening the core
[4:33:46 PM ET] core.
[4:33:47 PM ET] because
[4:33:47 PM ET] everything
[4:33:48 PM ET] begins with the core
[4:33:48 PM ET] running
[4:33:49 PM ET] great
[4:33:50 PM ET] because everything begins with running great restaurants
[4:33:51 PM ET] restaurants.
[4:33:51 PM ET] For our
[4:33:52 PM ET] guests that
[4:33:52 PM ET] means
[4:33:53 PM ET] delicious
[4:33:53 PM ET] food made
[4:33:54 PM ET] from
[4:33:54 PM ET] high
[4:33:54 PM ET] quality
[4:33:54 PM ET] for our guests that means delicious food made from
[4:33:55 PM ET] high quality ingredients
[4:33:55 PM ET] ingredients,
[4:33:56 PM ET] generous
[4:33:56 PM ET] and
[4:33:57 PM ET] consistent
[4:33:58 PM ET] generous and consistent portions
[4:33:58 PM ET] portions,
[4:33:59 PM ET] exceptional
[4:33:59 PM ET] exceptional throughput
[4:34:00 PM ET] throughput,
[4:34:00 PM ET] on top of the
[4:34:01 PM ET] and
[4:34:01 PM ET] accurate
[4:34:01 PM ET] digital
[4:34:02 PM ET] on time and accurate digital orders
[4:34:03 PM ET] orders
[4:34:03 PM ET] clean
[4:34:04 PM ET] clean restaurants
[4:34:04 PM ET] restaurants,
[4:34:04 PM ET] and
[4:34:04 PM ET] genuine
[4:34:06 PM ET] and genuine hospitality
[4:34:06 PM ET] hospitality.
[4:34:07 PM ET] These
[4:34:07 PM ET] are
[4:34:07 PM ET] fundamental to the human
[4:34:07 PM ET] our
[4:34:08 PM ET] brand
[4:34:09 PM ET] promise
[4:34:09 PM ET] and
[4:34:09 PM ET] we
[4:34:09 PM ET] remain focused on our
[4:34:09 PM ET] the
[4:34:10 PM ET] delivering
[4:34:10 PM ET] them
[4:34:11 PM ET] these are fundamental to our brand promise and we remain focused
[4:34:11 PM ET] consistently throughout the
[4:34:12 PM ET] on delivering them consistently throughout the day
[4:34:12 PM ET] day across the
[4:34:12 PM ET] every
[4:34:13 PM ET] restaurant
[4:34:14 PM ET] across every restaurant globally
[4:34:15 PM ET] globally.
[4:34:16 PM ET] Our high efficiency
[4:34:17 PM ET] equipment package
[4:34:17 PM ET] is
[4:34:18 PM ET] showing
[4:34:18 PM ET] how
[4:34:18 PM ET] targeted
[4:34:18 PM ET] investors
[4:34:19 PM ET] in
[4:34:19 PM ET] our high efficiency equipment package is showing how targeted investments in
[4:34:19 PM ET] our restaurants
[4:34:20 PM ET] our restaurants
[4:34:20 PM ET] can
[4:34:21 PM ET] drive
[4:34:21 PM ET] better
[4:34:21 PM ET] outcomes
[4:34:21 PM ET] for
[4:34:22 PM ET] our
[4:34:22 PM ET] can drive better outcomes for our guests
[4:34:23 PM ET] guests.
[4:34:23 PM ET] Our
[4:34:23 PM ET] teams,
[4:34:23 PM ET] and
[4:34:24 PM ET] our
[4:34:24 PM ET] our teams and our business
[4:34:25 PM ET] business.
[4:34:26 PM ET] Restaurants
[4:34:26 PM ET] would
[4:34:26 PM ET] heap
[4:34:26 PM ET] or
[4:34:26 PM ET] are
[4:34:27 PM ET] delivering
[4:34:27 PM ET] hundreds of
[4:34:28 PM ET] bases
[4:34:28 PM ET] points
[4:34:28 PM ET] of
[4:34:29 PM ET] comparable
[4:34:29 PM ET] sales
[4:34:29 PM ET] up
[4:34:30 PM ET] restaurants with heap are delivering hundreds of basis points of comparable sales uplift
[4:34:30 PM ET] left.
[4:34:31 PM ET] Improvements in
[4:34:32 PM ET] guest
[4:34:32 PM ET] satisfaction
[4:34:32 PM ET] and
[4:34:33 PM ET] taste
[4:34:33 PM ET] of
[4:34:33 PM ET] food
[4:34:34 PM ET] improvements in guest satisfaction and taste of food scores
[4:34:34 PM ET] scores.
[4:34:35 PM ET] and over
[4:34:35 PM ET] two
[4:34:35 PM ET] additional
[4:34:36 PM ET] entrees
[4:34:36 PM ET] during
[4:34:36 PM ET] the
[4:34:37 PM ET] peak
[4:34:37 PM ET] 15
[4:34:37 PM ET] minute
[4:34:38 PM ET] and over two additional entrees during the peak fifteen minute period
[4:34:39 PM ET] period.
[4:34:41 PM ET] Keep is now installed in over
[4:34:41 PM ET] 70
[4:34:41 PM ET] 1700
[4:34:42 PM ET] keep is now installed in over seventeen hundred restaurants
[4:34:43 PM ET] restaurants and we
[4:34:43 PM ET] continue to do
[4:34:43 PM ET] work
[4:34:44 PM ET] toward
[4:34:44 PM ET] a
[4:34:45 PM ET] approximately
[4:34:45 PM ET] 2,000
[4:34:46 PM ET] restaurants
[4:34:46 PM ET] by
[4:34:46 PM ET] year
[4:34:47 PM ET] and we continue to work toward approximately two thousand restaurants by year end
[4:34:47 PM ET] end.
[4:34:49 PM ET] KEAP is designed to simplify
[4:34:50 PM ET] morning
[4:34:50 PM ET] prep
[4:34:51 PM ET] and
[4:34:51 PM ET] grill
[4:34:52 PM ET] keep is designed to simplify morning prep and grill operations
[4:34:52 PM ET] operations.
[4:34:53 PM ET] improve color, and
[4:34:53 PM ET] correct the
[4:34:54 PM ET] consistency,
[4:34:54 PM ET] improve culinary consistency
[4:34:55 PM ET] and
[4:34:55 PM ET] and flavor
[4:34:56 PM ET] flavor.
[4:34:57 PM ET] reduce
[4:34:57 PM ET] menu out of
[4:34:57 PM ET] the
[4:34:58 PM ET] reduce menu outages
[4:34:58 PM ET] outages,
[4:34:58 PM ET] and
[4:34:58 PM ET] help
[4:34:59 PM ET] our
[4:34:59 PM ET] teams
[4:34:59 PM ET] deploy
[4:35:00 PM ET] more
[4:35:00 PM ET] effectively during the
[4:35:01 PM ET] and help our teams deploy more effectively during peaks
[4:35:02 PM ET] peaks.
[4:35:03 PM ET] Importantly,
[4:35:03 PM ET] we
[4:35:04 PM ET] to do
[4:35:04 PM ET] reach the peak of the
[4:35:04 PM ET] reinvest
[4:35:04 PM ET] late 19th
[4:35:05 PM ET] labor
[4:35:05 PM ET] efficiencies created by the
[4:35:06 PM ET] importantly we continue to reinvest the labor efficiencies
[4:35:07 PM ET] equipment
[4:35:07 PM ET] back in the
[4:35:07 PM ET] into our
[4:35:08 PM ET] created by the equipment back into our restaurants
[4:35:09 PM ET] restaurants.
[4:35:09 PM ET] giving our
[4:35:09 PM ET] teams greater than the
[4:35:10 PM ET] capacity
[4:35:11 PM ET] giving our teams greater capacity
[4:35:11 PM ET] to focus on the
[4:35:12 PM ET] to focus on throughput
[4:35:12 PM ET] throughput
[4:35:12 PM ET] and
[4:35:13 PM ET] and hospitality
[4:35:14 PM ET] hospitality.
[4:35:15 PM ET] Throughput
[4:35:15 PM ET] remains
[4:35:15 PM ET] a
[4:35:15 PM ET] key
[4:35:16 PM ET] focus
[4:35:16 PM ET] and
[4:35:16 PM ET] one of
[4:35:16 PM ET] the
[4:35:16 PM ET] most
[4:35:17 PM ET] important
[4:35:17 PM ET] ways
[4:35:17 PM ET] we
[4:35:18 PM ET] believe
[4:35:18 PM ET] we
[4:35:18 PM ET] throughput remains a key focus and one of the most important ways we believe we can
[4:35:18 PM ET] can
[4:35:18 PM ET] improve
[4:35:19 PM ET] the
[4:35:19 PM ET] guest
[4:35:20 PM ET] experience
[4:35:20 PM ET] and
[4:35:20 PM ET] drive
[4:35:21 PM ET] incremental
[4:35:22 PM ET] improve the guest experience and drive incremental transactions
[4:35:23 PM ET] transactions.
[4:35:23 PM ET] When we have
[4:35:24 PM ET] the four
[4:35:24 PM ET] pillars
[4:35:24 PM ET] of
[4:35:25 PM ET] throughput
[4:35:25 PM ET] in
[4:35:25 PM ET] when we have the four pillars of throughput in place
[4:35:25 PM ET] place,
[4:35:26 PM ET] our team is
[4:35:26 PM ET] can
[4:35:26 PM ET] move
[4:35:27 PM ET] guests
[4:35:27 PM ET] through
[4:35:27 PM ET] the
[4:35:27 PM ET] line
[4:35:28 PM ET] faster
[4:35:28 PM ET] while
[4:35:28 PM ET] creating
[4:35:29 PM ET] more
[4:35:29 PM ET] opportunities
[4:35:29 PM ET] to
[4:35:30 PM ET] engage
[4:35:30 PM ET] with
[4:35:31 PM ET] our teams can move guests through the line faster while creating more opportunities to engage with them
[4:35:31 PM ET] them
[4:35:31 PM ET] in a general
[4:35:32 PM ET] and
[4:35:32 PM ET] hospitable
[4:35:33 PM ET] a genuine and hospitable way
[4:35:34 PM ET] way.
[4:35:34 PM ET] We have
[4:35:35 PM ET] been focused
[4:35:35 PM ET] on
[4:35:35 PM ET] line by
[4:35:36 PM ET] and
[4:35:36 PM ET] expanding
[4:35:37 PM ET] deployment for the next
[4:35:37 PM ET] past several
[4:35:38 PM ET] we have been focused on linebacker and expo deployment
[4:35:38 PM ET] quarters and
[4:35:38 PM ET] have
[4:35:38 PM ET] made
[4:35:38 PM ET] great
[4:35:39 PM ET] progress
[4:35:39 PM ET] on
[4:35:40 PM ET] for the past several quarters and have made great progress on execution
[4:35:41 PM ET] execution.
[4:35:41 PM ET] We are now
[4:35:42 PM ET] expanding
[4:35:42 PM ET] our
[4:35:42 PM ET] focus on the
[4:35:42 PM ET] to
[4:35:43 PM ET] drive
[4:35:43 PM ET] consistent
[4:35:44 PM ET] execution
[4:35:44 PM ET] across the
[4:35:45 PM ET] all
[4:35:45 PM ET] four
[4:35:46 PM ET] we are now expanding our focus to drive consistent execution across all four pillars
[4:35:46 PM ET] pillars
[4:35:46 PM ET] including
[4:35:47 PM ET] these
[4:35:47 PM ET] Niesen
[4:35:47 PM ET] including mise en place
[4:35:48 PM ET] PLAS
[4:35:48 PM ET] and
[4:35:48 PM ET] Aces and
[4:35:48 PM ET] in
[4:35:48 PM ET] their
[4:35:49 PM ET] and aces in their places
[4:35:50 PM ET] places.
[4:35:50 PM ET] which is
[4:35:50 PM ET] happening
[4:35:51 PM ET] in
[4:35:51 PM ET] fewer
[4:35:51 PM ET] than half a
[4:35:51 PM ET] our
[4:35:52 PM ET] restaurants
[4:35:53 PM ET] which is happening in fewer than half our restaurants today
[4:35:53 PM ET] today.
[4:35:54 PM ET] We
[4:35:54 PM ET] fully recognize that we have to be able to do
[4:35:54 PM ET] that we restart
[4:35:54 PM ET] have restore the rest
[4:35:55 PM ET] importance of
[4:35:55 PM ET] rest the
[4:35:55 PM ET] accepting the rest of the
[4:35:57 PM ET] we fully recognize the importance of exceptional throughput
[4:35:57 PM ET] throughput
[4:35:57 PM ET] and
[4:35:57 PM ET] know
[4:35:57 PM ET] this
[4:35:57 PM ET] is
[4:35:58 PM ET] our
[4:35:58 PM ET] strategic
[4:35:59 PM ET] and know this is our strategic advantage
[4:36:00 PM ET] advantage.
[4:36:00 PM ET] While we've
[4:36:01 PM ET] made progress,
[4:36:01 PM ET] while we've made progress
[4:36:02 PM ET] I know that
[4:36:02 PM ET] we can't do
[4:36:02 PM ET] be
[4:36:02 PM ET] can
[4:36:03 PM ET] i know we can be better
[4:36:04 PM ET] better.
[4:36:04 PM ET] We will be
[4:36:05 PM ET] emphasizing
[4:36:05 PM ET] this
[4:36:05 PM ET] evolution
[4:36:05 PM ET] in
[4:36:06 PM ET] we will be emphasizing this evolution in q four
[4:36:07 PM ET] Q4.
[4:36:07 PM ET] so we
[4:36:07 PM ET] are
[4:36:07 PM ET] well
[4:36:08 PM ET] prepared for the
[4:36:08 PM ET] seasonal
[4:36:09 PM ET] ramp
[4:36:09 PM ET] in
[4:36:10 PM ET] so we are well prepared for the seasonal ramp in twenty twenty seven
[4:36:10 PM ET] 2027.
[4:36:11 PM ET] and
[4:36:11 PM ET] we
[4:36:11 PM ET] entered
[4:36:11 PM ET] the
[4:36:11 PM ET] new
[4:36:11 PM ET] year
[4:36:12 PM ET] with
[4:36:12 PM ET] a
[4:36:12 PM ET] the momentum
[4:36:13 PM ET] necessary
[4:36:13 PM ET] to
[4:36:13 PM ET] be
[4:36:14 PM ET] and we enter the new year with the momentum necessary to be great
[4:36:14 PM ET] be
[4:36:15 PM ET] great.
[4:36:16 PM ET] At the same
[4:36:17 PM ET] time, we
[4:36:17 PM ET] are re-influenced by the
[4:36:19 PM ET] accountability around the
[4:36:19 PM ET] at the same time we are reinforcing accountability
[4:36:20 PM ET] hospitality
[4:36:20 PM ET] and
[4:36:21 PM ET] around hospitality and execution
[4:36:21 PM ET] execution.
[4:36:22 PM ET] I attended
[4:36:22 PM ET] our
[4:36:22 PM ET] team
[4:36:23 PM ET] director's
[4:36:23 PM ET] conference during the
[4:36:24 PM ET] i attended our team director conference during the quarter
[4:36:24 PM ET] quarter
[4:36:25 PM ET] and this
[4:36:25 PM ET] year's
[4:36:25 PM ET] agenda
[4:36:26 PM ET] was focused on the
[4:36:26 PM ET] being
[4:36:27 PM ET] brilliant
[4:36:27 PM ET] at
[4:36:27 PM ET] the
[4:36:28 PM ET] basics
[4:36:28 PM ET] that
[4:36:28 PM ET] bring
[4:36:28 PM ET] guests
[4:36:29 PM ET] and this year's agenda was focused on being brilliant at the basics that bring guests back
[4:36:29 PM ET] back
[4:36:29 PM ET] time
[4:36:29 PM ET] after
[4:36:30 PM ET] time after time
[4:36:30 PM ET] after
[4:36:31 PM ET] time.
[4:36:32 PM ET] Preparing
[4:36:32 PM ET] exceptional food
[4:36:33 PM ET] is central to the
[4:36:34 PM ET] preparing exceptional food is central to this
[4:36:34 PM ET] to
[4:36:34 PM ET] this, and
[4:36:34 PM ET] Jason
[4:36:35 PM ET] Kidd
[4:36:35 PM ET] our
[4:36:35 PM ET] chief
[4:36:36 PM ET] operating
[4:36:37 PM ET] and jason kidd our chief operating officer
[4:36:37 PM ET] officer
[4:36:37 PM ET] had
[4:36:37 PM ET] a
[4:36:37 PM ET] simple
[4:36:38 PM ET] message for
[4:36:38 PM ET] our
[4:36:39 PM ET] had a simple message for our teams
[4:36:39 PM ET] teams.
[4:36:40 PM ET] run to the
[4:36:40 PM ET] run to the food
[4:36:41 PM ET] food
[4:36:41 PM ET] Taste
[4:36:41 PM ET] it
[4:36:42 PM ET] every
[4:36:42 PM ET] time and
[4:36:42 PM ET] ensure
[4:36:42 PM ET] it's
[4:36:43 PM ET] delicious for
[4:36:43 PM ET] a good
[4:36:44 PM ET] our
[4:36:44 PM ET] taste it every time and ensure it's delicious for our guests
[4:36:45 PM ET] guests.
[4:36:46 PM ET] That focus is a good
[4:36:46 PM ET] already
[4:36:46 PM ET] paying
[4:36:48 PM ET] off.
[4:36:48 PM ET] With taste of
[4:36:48 PM ET] Food
[4:36:49 PM ET] scores
[4:36:49 PM ET] up
[4:36:49 PM ET] nearly all the
[4:36:49 PM ET] that focus is already paying off
[4:36:49 PM ET] a
[4:36:50 PM ET] point
[4:36:50 PM ET] year over
[4:36:50 PM ET] with taste of food scores up nearly a point year over year
[4:36:51 PM ET] year.
[4:36:52 PM ET] We're proud of
[4:36:52 PM ET] that
[4:36:53 PM ET] progress, but
[4:36:53 PM ET] just
[4:36:53 PM ET] like
[4:36:54 PM ET] we're proud of that progress but just like throughput
[4:36:54 PM ET] throughput, we're going to be able to do
[4:36:54 PM ET] know
[4:36:55 PM ET] we can
[4:36:55 PM ET] be
[4:36:55 PM ET] even
[4:36:56 PM ET] we know we can be even better
[4:36:57 PM ET] even
[4:36:57 PM ET] better.
[4:36:57 PM ET] Great
[4:36:58 PM ET] execution
[4:36:58 PM ET] starts
[4:36:58 PM ET] with
[4:36:59 PM ET] great
[4:36:59 PM ET] leadership
[4:36:59 PM ET] in
[4:36:59 PM ET] the
[4:36:59 PM ET] rustic
[4:37:01 PM ET] restaurants.
[4:37:01 PM ET] and we continue to do
[4:37:01 PM ET] great execution starts with great leadership in the restaurants
[4:37:01 PM ET] optimize the rest of the
[4:37:02 PM ET] general
[4:37:03 PM ET] manager
[4:37:03 PM ET] and
[4:37:03 PM ET] apprentice
[4:37:04 PM ET] and we continue to optimize general manager and apprentice deployment
[4:37:04 PM ET] deployment
[4:37:04 PM ET] to
[4:37:05 PM ET] ensure
[4:37:05 PM ET] our
[4:37:05 PM ET] busiest
[4:37:06 PM ET] day
[4:37:06 PM ET] parts
[4:37:06 PM ET] are
[4:37:07 PM ET] to ensure our busiest day parts are supported
[4:37:08 PM ET] supported.
[4:37:08 PM ET] These
[4:37:08 PM ET] efforts
[4:37:08 PM ET] are
[4:37:09 PM ET] collectively leading to the
[4:37:10 PM ET] better
[4:37:10 PM ET] outcome of the
[4:37:10 PM ET] we
[4:37:10 PM ET] are
[4:37:11 PM ET] these efforts are collectively leading to the better outcomes we are seeing
[4:37:11 PM ET] seeing
[4:37:11 PM ET] in
[4:37:12 PM ET] operational
[4:37:13 PM ET] operational metrics
[4:37:13 PM ET] metrics.
[4:37:14 PM ET] and we have
[4:37:14 PM ET] made
[4:37:14 PM ET] meaningful
[4:37:15 PM ET] and we have made meaningful progress
[4:37:15 PM ET] progress, but
[4:37:15 PM ET] we
[4:37:16 PM ET] know
[4:37:16 PM ET] there's
[4:37:16 PM ET] more
[4:37:17 PM ET] opportunity
[4:37:17 PM ET] we know there's more opportunity ahead
[4:37:18 PM ET] ahead.
[4:37:19 PM ET] Our
[4:37:19 PM ET] goal is to be able to do
[4:37:19 PM ET] deliver the
[4:37:20 PM ET] Chapter
[4:37:21 PM ET] experience
[4:37:21 PM ET] our goal is to deliver the chipotle experience
[4:37:21 PM ET] with
[4:37:22 PM ET] consistency
[4:37:22 PM ET] in every
[4:37:23 PM ET] consistency in every restaurant
[4:37:23 PM ET] restaurant,
[4:37:23 PM ET] every
[4:37:24 PM ET] every day
[4:37:25 PM ET] day.
[4:37:26 PM ET] Turning to our
[4:37:27 PM ET] second
[4:37:27 PM ET] turning to our second pillar
[4:37:28 PM ET] pillar.
[4:37:29 PM ET] modernizing
[4:37:29 PM ET] our
[4:37:29 PM ET] business
[4:37:29 PM ET] through
[4:37:30 PM ET] technology
[4:37:30 PM ET] and
[4:37:30 PM ET] digital
[4:37:31 PM ET] modernizing our business through technology and digital innovation
[4:37:32 PM ET] innovation.
[4:37:32 PM ET] Our goal is
[4:37:33 PM ET] our goal is straightforward
[4:37:34 PM ET] straightforward.
[4:37:34 PM ET] Use
[4:37:35 PM ET] technology
[4:37:35 PM ET] to make sure that we're going
[4:37:35 PM ET] our
[4:37:35 PM ET] team
[4:37:36 PM ET] teams
[4:37:36 PM ET] more
[4:37:37 PM ET] use technology to make our teams more effective
[4:37:37 PM ET] effective
[4:37:37 PM ET] and
[4:37:37 PM ET] make
[4:37:37 PM ET] the
[4:37:38 PM ET] Chipotle
[4:37:38 PM ET] experience
[4:37:39 PM ET] easier,
[4:37:40 PM ET] faster,
[4:37:40 PM ET] and make the chipotle experience easier faster
[4:37:40 PM ET] and
[4:37:41 PM ET] more
[4:37:41 PM ET] rewarding
[4:37:41 PM ET] for
[4:37:41 PM ET] our
[4:37:42 PM ET] more rewarding for our guests
[4:37:43 PM ET] guests.
[4:37:44 PM ET] Under cheap
[4:37:45 PM ET] Digital
[4:37:45 PM ET] Officer,
[4:37:45 PM ET] Arlie
[4:37:46 PM ET] Sissims,
[4:37:47 PM ET] under chief digital officer arlie sisson's leadership
[4:37:48 PM ET] leadership, we
[4:37:48 PM ET] are
[4:37:48 PM ET] building the
[4:37:49 PM ET] capabilities
[4:37:49 PM ET] to
[4:37:50 PM ET] accelerate
[4:37:51 PM ET] we are building the capabilities to accelerate progress
[4:37:51 PM ET] progress
[4:37:51 PM ET] in our
[4:37:52 PM ET] early
[4:37:52 PM ET] a
[4:37:52 PM ET] is
[4:37:52 PM ET] strengthening
[4:37:52 PM ET] her
[4:37:53 PM ET] team
[4:37:53 PM ET] with
[4:37:53 PM ET] the additional
[4:37:53 PM ET] of
[4:37:54 PM ET] AI and
[4:37:55 PM ET] architecture
[4:37:56 PM ET] and arlie is strengthening her team with the addition of ai and architecture leadership
[4:37:56 PM ET] leadership to
[4:37:56 PM ET] help
[4:37:57 PM ET] accelerate
[4:37:57 PM ET] innovation across the
[4:37:59 PM ET] to help accelerate innovation across the business
[4:38:00 PM ET] business.
[4:38:01 PM ET] We are still in the early
[4:38:01 PM ET] stages of the
[4:38:02 PM ET] what we're
[4:38:02 PM ET] AI
[4:38:02 PM ET] can
[4:38:03 PM ET] we are still in the early stages of what ai can do
[4:38:04 PM ET] do.
[4:38:04 PM ET] One example is that we can do
[4:38:04 PM ET] our
[4:38:05 PM ET] AI
[4:38:06 PM ET] cooked and
[4:38:06 PM ET] needs
[4:38:06 PM ET] one example is our ai enabled cook to needs tool
[4:38:07 PM ET] tool,
[4:38:08 PM ET] which enters the
[4:38:08 PM ET] pilot
[4:38:08 PM ET] during
[4:38:08 PM ET] the
[4:38:09 PM ET] third
[4:38:09 PM ET] quarter in
[4:38:09 PM ET] is
[4:38:10 PM ET] now
[4:38:10 PM ET] rolled
[4:38:10 PM ET] out
[4:38:10 PM ET] to
[4:38:11 PM ET] over
[4:38:11 PM ET] five
[4:38:12 PM ET] which entered pilot during the third quarter and is now rolled out to over
[4:38:12 PM ET] five hundred restaurants
[4:38:13 PM ET] 500 restaurants.
[4:38:14 PM ET] The
[4:38:14 PM ET] tool,
[4:38:14 PM ET] which
[4:38:14 PM ET] we plan to do is to use the
[4:38:15 PM ET] roll
[4:38:15 PM ET] out
[4:38:15 PM ET] nationally
[4:38:16 PM ET] early next
[4:38:17 PM ET] the tool we plan to roll out nationally early next year
[4:38:17 PM ET] year,
[4:38:17 PM ET] uses
[4:38:18 PM ET] AI-based
[4:38:18 PM ET] demand
[4:38:19 PM ET] forecasts
[4:38:19 PM ET] to
[4:38:20 PM ET] recommend
[4:38:20 PM ET] the
[4:38:20 PM ET] right amount of
[4:38:21 PM ET] freshly
[4:38:21 PM ET] prepared
[4:38:22 PM ET] uses ai based demand forecast to recommend the right amount of freshly
[4:38:22 PM ET] prepared food
[4:38:22 PM ET] food
[4:38:22 PM ET] the
[4:38:22 PM ET] right amount of
[4:38:23 PM ET] at the right time
[4:38:23 PM ET] right
[4:38:24 PM ET] time.
[4:38:24 PM ET] This
[4:38:25 PM ET] helps
[4:38:25 PM ET] reduce
[4:38:25 PM ET] manual
[4:38:26 PM ET] data
[4:38:26 PM ET] this helps reduce manual data entry
[4:38:27 PM ET] entry.
[4:38:27 PM ET] increase
[4:38:27 PM ET] prep of the
[4:38:28 PM ET] efficiency
[4:38:28 PM ET] and reduce the
[4:38:29 PM ET] increase prep efficiency and readiness
[4:38:29 PM ET] readiness,
[4:38:30 PM ET] reduce
[4:38:31 PM ET] reduce waste
[4:38:31 PM ET] waste,
[4:38:31 PM ET] and
[4:38:31 PM ET] support
[4:38:32 PM ET] better
[4:38:32 PM ET] deployment
[4:38:32 PM ET] and
[4:38:33 PM ET] more
[4:38:33 PM ET] consistent
[4:38:34 PM ET] culinary
[4:38:35 PM ET] and support better deployment and more consistent culinary execution
[4:38:36 PM ET] execution.
[4:38:36 PM ET] Alongside
[4:38:37 PM ET] this,
[4:38:37 PM ET] we
[4:38:37 PM ET] are
[4:38:38 PM ET] also developing the
[4:38:39 PM ET] alongside this we are also developing avocado
[4:38:40 PM ET] avocado.
[4:38:40 PM ET] our
[4:38:41 PM ET] in-restaurant
[4:38:41 PM ET] AI
[4:38:42 PM ET] our in restaurant ai assistant
[4:38:43 PM ET] assistant.
[4:38:43 PM ET] and
[4:38:43 PM ET] see
[4:38:43 PM ET] the
[4:38:44 PM ET] potential
[4:38:44 PM ET] to
[4:38:44 PM ET] expand
[4:38:44 PM ET] its
[4:38:45 PM ET] scope
[4:38:45 PM ET] and
[4:38:45 PM ET] assist
[4:38:45 PM ET] general
[4:38:46 PM ET] managers
[4:38:47 PM ET] with
[4:38:47 PM ET] and see the potential to expand its scope and assist general managers
[4:38:47 PM ET] operational
[4:38:48 PM ET] with operational insights
[4:38:49 PM ET] insights
[4:38:49 PM ET] and
[4:38:49 PM ET] actionable
[4:38:50 PM ET] coaching
[4:38:50 PM ET] that
[4:38:50 PM ET] can help
[4:38:50 PM ET] our
[4:38:51 PM ET] team
[4:38:51 PM ET] leaders
[4:38:51 PM ET] make
[4:38:52 PM ET] better
[4:38:52 PM ET] decisions
[4:38:52 PM ET] and actionable coaching that can help our team leaders make better decisions
[4:38:53 PM ET] in real
[4:38:54 PM ET] in real time
[4:38:54 PM ET] real
[4:38:54 PM ET] time.
[4:38:56 PM ET] Our
[4:38:56 PM ET] proprietary digital
[4:38:57 PM ET] make
[4:38:57 PM ET] line in the middle of the
[4:38:57 PM ET] interface,
[4:38:57 PM ET] which
[4:38:58 PM ET] we
[4:38:58 PM ET] call
[4:38:58 PM ET] Chipotle
[4:38:59 PM ET] our proprietary digital make line interface we call chipotle
[4:38:59 PM ET] Kitchen,
[4:38:59 PM ET] kitchen
[4:39:00 PM ET] is
[4:39:00 PM ET] also currently
[4:39:01 PM ET] rolling
[4:39:01 PM ET] out to
[4:39:01 PM ET] our
[4:39:02 PM ET] is also currently rolling out to our restaurants
[4:39:03 PM ET] restaurants.
[4:39:03 PM ET] with plans to
[4:39:04 PM ET] reach
[4:39:04 PM ET] several
[4:39:04 PM ET] hundred
[4:39:04 PM ET] by a
[4:39:05 PM ET] year
[4:39:05 PM ET] the
[4:39:05 PM ET] with plans to reach several hundred by year end
[4:39:05 PM ET] end.
[4:39:07 PM ET] The
[4:39:07 PM ET] technology is
[4:39:07 PM ET] designed to be a very important
[4:39:08 PM ET] around the
[4:39:08 PM ET] improving
[4:39:09 PM ET] the
[4:39:09 PM ET] outcome of the
[4:39:09 PM ET] that
[4:39:09 PM ET] matter
[4:39:10 PM ET] most
[4:39:10 PM ET] for
[4:39:10 PM ET] our
[4:39:10 PM ET] the technology is designed around improving the outcomes that matter most
[4:39:11 PM ET] teams
[4:39:11 PM ET] and
[4:39:12 PM ET] our teams and guests
[4:39:13 PM ET] guests.
[4:39:13 PM ET] Order
[4:39:14 PM ET] accuracy
[4:39:14 PM ET] on
[4:39:14 PM ET] time for the first
[4:39:15 PM ET] order accuracy on time fulfillment
[4:39:15 PM ET] fulfillment,
[4:39:16 PM ET] speed
[4:39:16 PM ET] speed.
[4:39:16 PM ET] ease
[4:39:17 PM ET] of
[4:39:17 PM ET] integrating
[4:39:17 PM ET] new
[4:39:18 PM ET] menu
[4:39:18 PM ET] items,
[4:39:19 PM ET] and
[4:39:19 PM ET] guest
[4:39:20 PM ET] ease of integrating new menu items and guest satisfaction
[4:39:21 PM ET] satisfaction.
[4:39:21 PM ET] We will
[4:39:22 PM ET] continue
[4:39:22 PM ET] scaling
[4:39:22 PM ET] to
[4:39:22 PM ET] the
[4:39:23 PM ET] entire
[4:39:23 PM ET] system throughout the
[4:39:25 PM ET] we will continue scaling to the entire system throughout twenty twenty seven
[4:39:25 PM ET] 2027.
[4:39:27 PM ET] In April
[4:39:28 PM ET] in april
[4:39:28 PM ET] we have to be able to do
[4:39:28 PM ET] a very good
[4:39:28 PM ET] the United
[4:39:29 PM ET] Chapter
[4:39:30 PM ET] we revamped chipotle rewards
[4:39:30 PM ET] Rewards in
[4:39:30 PM ET] are continuing to reward the
[4:39:31 PM ET] be
[4:39:31 PM ET] able do
[4:39:31 PM ET] see
[4:39:32 PM ET] strong
[4:39:32 PM ET] results from
[4:39:32 PM ET] the
[4:39:33 PM ET] and are continuing to see strong results from the program
[4:39:33 PM ET] program.
[4:39:34 PM ET] with our
[4:39:34 PM ET] highest
[4:39:34 PM ET] comps
[4:39:34 PM ET] consistent with the
[4:39:35 PM ET] coming
[4:39:35 PM ET] from
[4:39:36 PM ET] loyalty
[4:39:37 PM ET] with our highest comps consistently coming from loyalty occasions
[4:39:37 PM ET] occasions.
[4:39:38 PM ET] In-store
[4:39:39 PM ET] enrollment
[4:39:39 PM ET] has also been a lot of the
[4:39:39 PM ET] remained
[4:39:40 PM ET] in store enrollment has also remained elevated
[4:39:41 PM ET] elevated.
[4:39:41 PM ET] driving
[4:39:41 PM ET] our
[4:39:42 PM ET] active
[4:39:42 PM ET] membership
[4:39:42 PM ET] to reach
[4:39:43 PM ET] over
[4:39:43 PM ET] 24
[4:39:44 PM ET] million
[4:39:44 PM ET] guests
[4:39:44 PM ET] for
[4:39:44 PM ET] the
[4:39:45 PM ET] driving our active membership to reach over twenty four million guests for the quarter
[4:39:46 PM ET] quarter.
[4:39:46 PM ET] And we continue
[4:39:46 PM ET] to
[4:39:46 PM ET] see
[4:39:47 PM ET] significant
[4:39:48 PM ET] opportunity
[4:39:48 PM ET] to
[4:39:48 PM ET] deepen
[4:39:49 PM ET] engagement
[4:39:49 PM ET] with
[4:39:50 PM ET] and we continue to see significant opportunity to deepen engagement with members
[4:39:51 PM ET] members.
[4:39:52 PM ET] Summer of extras was
[4:39:52 PM ET] a
[4:39:52 PM ET] strong
[4:39:52 PM ET] example of the members of the
[4:39:53 PM ET] with
[4:39:54 PM ET] 6.8
[4:39:55 PM ET] million
[4:39:55 PM ET] summer of extras was a strong example with
[4:39:55 PM ET] rewards
[4:39:56 PM ET] members
[4:39:56 PM ET] opting
[4:39:56 PM ET] into
[4:39:56 PM ET] the
[4:39:57 PM ET] six point eight million rewards members opting into the program
[4:39:58 PM ET] program.
[4:39:58 PM ET] an
[4:39:58 PM ET] increase
[4:39:58 PM ET] over
[4:39:59 PM ET] last
[4:39:59 PM ET] an increase over last year
[4:40:00 PM ET] year.
[4:40:01 PM ET] Members
[4:40:01 PM ET] earned
[4:40:01 PM ET] 20
[4:40:02 PM ET] million
[4:40:03 PM ET] badges
[4:40:03 PM ET] and
[4:40:03 PM ET] can be a good
[4:40:04 PM ET] approximately
[4:40:04 PM ET] 200
[4:40:04 PM ET] 6
[4:40:04 PM ET] 600
[4:40:04 PM ET] members earned twenty five million badges
[4:40:06 PM ET] and completed approximately six hundred thousand challenges
[4:40:07 PM ET] challenges.
[4:40:07 PM ET] Most
[4:40:08 PM ET] importantly
[4:40:08 PM ET] our
[4:40:08 PM ET] loyalty is a lot of the
[4:40:09 PM ET] should be very important
[4:40:09 PM ET] share
[4:40:09 PM ET] of
[4:40:09 PM ET] sales
[4:40:10 PM ET] increased
[4:40:10 PM ET] to over
[4:40:11 PM ET] most importantly our loyalty share of sales increased
[4:40:11 PM ET] 33%.
[4:40:12 PM ET] to over thirty three percent
[4:40:12 PM ET] our
[4:40:12 PM ET] highest
[4:40:13 PM ET] our highest ever
[4:40:14 PM ET] ever.
[4:40:14 PM ET] This is exactly what we're
[4:40:15 PM ET] the economy
[4:40:15 PM ET] program
[4:40:15 PM ET] is
[4:40:15 PM ET] designed to
[4:40:17 PM ET] this is exactly what the program is designed to do
[4:40:17 PM ET] to
[4:40:17 PM ET] do.
[4:40:17 PM ET] Deepen
[4:40:18 PM ET] engagement
[4:40:18 PM ET] and
[4:40:18 PM ET] give
[4:40:19 PM ET] guests
[4:40:19 PM ET] more
[4:40:19 PM ET] reasons for the
[4:40:20 PM ET] to
[4:40:20 PM ET] visit
[4:40:21 PM ET] deepen engagement and give guests more reasons to visit chipotle
[4:40:21 PM ET] Chipotle.
[4:40:23 PM ET] We also continue
[4:40:23 PM ET] to provide a lot of the private
[4:40:23 PM ET] progress with
[4:40:24 PM ET] our
[4:40:24 PM ET] frictionless
[4:40:25 PM ET] rewards
[4:40:25 PM ET] we also continue to progress with our frictionless rewards pilot
[4:40:26 PM ET] pilot.
[4:40:26 PM ET] Around 30%
[4:40:27 PM ET] of
[4:40:27 PM ET] our
[4:40:27 PM ET] guests
[4:40:28 PM ET] use
[4:40:28 PM ET] Apple
[4:40:28 PM ET] Pay
[4:40:28 PM ET] in
[4:40:29 PM ET] around thirty percent of our guests use apple pay in store
[4:40:29 PM ET] in-store.
[4:40:29 PM ET] and
[4:40:29 PM ET] they
[4:40:29 PM ET] will
[4:40:30 PM ET] be able to do
[4:40:31 PM ET] automatically
[4:40:31 PM ET] earn
[4:40:31 PM ET] points
[4:40:32 PM ET] while paying
[4:40:32 PM ET] and they will be able to automatically earn points while paying
[4:40:33 PM ET] eliminating the need for
[4:40:33 PM ET] to
[4:40:34 PM ET] a
[4:40:34 PM ET] separate
[4:40:35 PM ET] reward
[4:40:35 PM ET] eliminating the need for a separate reward scan
[4:40:36 PM ET] scan.
[4:40:37 PM ET] It's a
[4:40:37 PM ET] simple
[4:40:38 PM ET] it's a simple change
[4:40:38 PM ET] change, but it's a very simple
[4:40:38 PM ET] important thing is that important
[4:40:38 PM ET] one a
[4:40:39 PM ET] because it really
[4:40:39 PM ET] requires
[4:40:39 PM ET] the
[4:40:40 PM ET] a key
[4:40:40 PM ET] friction
[4:40:41 PM ET] but an important one because it reduces a key friction point
[4:40:41 PM ET] point while
[4:40:41 PM ET] also
[4:40:41 PM ET] supporting the
[4:40:43 PM ET] while also supporting throughput
[4:40:43 PM ET] throughput.
[4:40:44 PM ET] We will
[4:40:44 PM ET] advance
[4:40:44 PM ET] the
[4:40:45 PM ET] test
[4:40:45 PM ET] through
[4:40:45 PM ET] stage
[4:40:45 PM ET] gate
[4:40:45 PM ET] and
[4:40:46 PM ET] in
[4:40:46 PM ET] we will advance the test through stage gate in q4
[4:40:46 PM ET] Q4
[4:40:46 PM ET] and plan to
[4:40:47 PM ET] test the
[4:40:47 PM ET] take technical
[4:40:48 PM ET] technology across the
[4:40:49 PM ET] enterprise
[4:40:49 PM ET] in
[4:40:50 PM ET] and plan to take the technology across the enterprise in twenty twenty seven
[4:40:51 PM ET] 2027.
[4:40:52 PM ET] Longer
[4:40:53 PM ET] term, we have to do
[4:40:53 PM ET] see a significant number of
[4:40:54 PM ET] opportunity
[4:40:54 PM ET] for
[4:40:55 PM ET] longer term we see a significant
[4:40:55 PM ET] technology
[4:40:55 PM ET] to
[4:40:56 PM ET] make
[4:40:56 PM ET] rewards
[4:40:57 PM ET] increasingly
[4:40:58 PM ET] opportunity for technology to make rewards increasingly personalized
[4:40:58 PM ET] personalized.
[4:40:59 PM ET] improve
[4:40:59 PM ET] in
[4:40:59 PM ET] restaurant
[4:41:01 PM ET] identification, and help you get a lot of
[4:41:01 PM ET] us
[4:41:01 PM ET] more
[4:41:02 PM ET] effectively
[4:41:03 PM ET] improve in restaurant identification and help us more effectively reengage
[4:41:03 PM ET] re-engage
[4:41:03 PM ET] lapsed
[4:41:04 PM ET] lapsed members
[4:41:05 PM ET] members.
[4:41:06 PM ET] Our third
[4:41:06 PM ET] strategic
[4:41:06 PM ET] pillar
[4:41:07 PM ET] is
[4:41:07 PM ET] evolving
[4:41:07 PM ET] our
[4:41:07 PM ET] brand
[4:41:08 PM ET] our third strategic pillar is evolving our brand messaging
[4:41:09 PM ET] messaging.
[4:41:10 PM ET] accelerating menu
[4:41:10 PM ET] innovation,
[4:41:11 PM ET] and
[4:41:11 PM ET] expanding
[4:41:11 PM ET] the
[4:41:12 PM ET] occasions
[4:41:12 PM ET] were given to
[4:41:12 PM ET] guests
[4:41:13 PM ET] choose
[4:41:13 PM ET] to
[4:41:13 PM ET] accelerating menu innovation and expanding the occasions where guests
[4:41:13 PM ET] choose chipotle
[4:41:14 PM ET] potlay.
[4:41:16 PM ET] At the center of
[4:41:16 PM ET] this
[4:41:16 PM ET] work
[4:41:16 PM ET] is
[4:41:16 PM ET] the value of
[4:41:17 PM ET] proposition
[4:41:17 PM ET] that
[4:41:18 PM ET] is
[4:41:18 PM ET] defined by the value of the value
[4:41:18 PM ET] Chipotle for the value of the value
[4:41:19 PM ET] at the center of this work is the value proposition that has
[4:41:19 PM ET] more than 10
[4:41:19 PM ET] three
[4:41:20 PM ET] defined chipotle for more than three decades
[4:41:21 PM ET] decades.
[4:41:21 PM ET] Real
[4:41:21 PM ET] food
[4:41:22 PM ET] made
[4:41:22 PM ET] with
[4:41:22 PM ET] high
[4:41:22 PM ET] quality
[4:41:23 PM ET] real food made with high quality ingredients
[4:41:24 PM ET] ingredients.
[4:41:24 PM ET] freshly
[4:41:25 PM ET] prepared
[4:41:25 PM ET] using
[4:41:25 PM ET] classic
[4:41:26 PM ET] culinary
[4:41:27 PM ET] freshly prepared using classic culinary techniques
[4:41:27 PM ET] techniques.
[4:41:28 PM ET] served
[4:41:28 PM ET] with
[4:41:28 PM ET] generous
[4:41:28 PM ET] portions of the
[4:41:28 PM ET] corner
[4:41:29 PM ET] and
[4:41:30 PM ET] speed,
[4:41:30 PM ET] and an
[4:41:30 PM ET] accessible
[4:41:31 PM ET] price
[4:41:31 PM ET] served with generous portions and speed and an accessible price point
[4:41:32 PM ET] point.
[4:41:33 PM ET] Our
[4:41:33 PM ET] brand tracking is a very good
[4:41:33 PM ET] revealed that the brand
[4:41:34 PM ET] our
[4:41:34 PM ET] value
[4:41:35 PM ET] scores
[4:41:35 PM ET] an overview of
[4:41:35 PM ET] brand new scores are
[4:41:36 PM ET] health
[4:41:36 PM ET] remain
[4:41:36 PM ET] remained
[4:41:36 PM ET] strong
[4:41:36 PM ET] our brand tracker revealed that our value scores and overall brand health remain
[4:41:36 PM ET] in
[4:41:37 PM ET] strong in q3
[4:41:38 PM ET] Q3.
[4:41:38 PM ET] with
[4:41:38 PM ET] sequential
[4:41:39 PM ET] gains
[4:41:39 PM ET] in
[4:41:39 PM ET] both
[4:41:40 PM ET] amount
[4:41:40 PM ET] of
[4:41:40 PM ET] qual
[4:41:40 PM ET] amount and
[4:41:41 PM ET] quality
[4:41:41 PM ET] of
[4:41:41 PM ET] food for
[4:41:41 PM ET] the
[4:41:42 PM ET] with sequential gains in both amount and quality of food for the money
[4:41:43 PM ET] money.
[4:41:45 PM ET] Under Chief Brand Officer
[4:41:46 PM ET] Fernando
[4:41:46 PM ET] Machado's
[4:41:47 PM ET] under chief brand officer fernando machado's leadership
[4:41:47 PM ET] leadership,
[4:41:47 PM ET] we
[4:41:48 PM ET] are
[4:41:48 PM ET] super
[4:41:48 PM ET] how we can do
[4:41:49 PM ET] communicate
[4:41:49 PM ET] our
[4:41:49 PM ET] value
[4:41:51 PM ET] we are supercharging how we communicate our value proposition
[4:41:51 PM ET] proposition
[4:41:51 PM ET] and connect our
[4:41:52 PM ET] what
[4:41:52 PM ET] makes
[4:41:52 PM ET] Chipotle
[4:41:53 PM ET] different
[4:41:53 PM ET] with
[4:41:53 PM ET] what
[4:41:53 PM ET] matters
[4:41:54 PM ET] to
[4:41:54 PM ET] consumers
[4:41:55 PM ET] and connecting what makes chipotle different with what matters to consumers today
[4:41:56 PM ET] today.
[4:41:56 PM ET] and
[4:41:56 PM ET] we are
[4:41:57 PM ET] doing
[4:41:57 PM ET] it in ways
[4:41:57 PM ET] that are
[4:41:58 PM ET] more
[4:41:58 PM ET] and we are doing it in ways that are more ambitious
[4:41:59 PM ET] ambitious.
[4:41:59 PM ET] culturally
[4:41:59 PM ET] relevant,
[4:42:00 PM ET] culturally relevant
[4:42:00 PM ET] and
[4:42:01 PM ET] distinctive to
[4:42:01 PM ET] the
[4:42:02 PM ET] and distinctive to the brand
[4:42:03 PM ET] brand.
[4:42:03 PM ET] the brand new brand.
[4:42:03 PM ET] We are
[4:42:03 PM ET] showing
[4:42:04 PM ET] up
[4:42:04 PM ET] across
[4:42:04 PM ET] creator
[4:42:05 PM ET] we are showing up across creator content
[4:42:06 PM ET] content,
[4:42:06 PM ET] sport
[4:42:06 PM ET] and
[4:42:07 PM ET] sports and entertainment
[4:42:07 PM ET] entertainment,
[4:42:08 PM ET] gaming,
[4:42:08 PM ET] fashion, and
[4:42:09 PM ET] and
[4:42:10 PM ET] other
[4:42:10 PM ET] spaces
[4:42:10 PM ET] to
[4:42:10 PM ET] meet
[4:42:11 PM ET] guests
[4:42:11 PM ET] where
[4:42:11 PM ET] they
[4:42:12 PM ET] gaming fashion and other spaces to meet guests where they are
[4:42:12 PM ET] are.
[4:42:13 PM ET] And guests are
[4:42:13 PM ET] recognizing
[4:42:13 PM ET] the
[4:42:14 PM ET] and guests are recognizing the differentiation
[4:42:15 PM ET] differentiation.
[4:42:16 PM ET] We saw
[4:42:16 PM ET] stable
[4:42:16 PM ET] or improved
[4:42:17 PM ET] wallet
[4:42:17 PM ET] share
[4:42:17 PM ET] across
[4:42:17 PM ET] the
[4:42:18 PM ET] we saw stable or improving wallet share across the quarter
[4:42:18 PM ET] quarter
[4:42:19 PM ET] with
[4:42:19 PM ET] broad
[4:42:19 PM ET] strength across
[4:42:20 PM ET] income
[4:42:20 PM ET] and
[4:42:21 PM ET] age
[4:42:22 PM ET] with broad strength across income and age cohorts
[4:42:22 PM ET] cohorts.
[4:42:23 PM ET] importantly
[4:42:23 PM ET] Importantly,
[4:42:23 PM ET] we
[4:42:24 PM ET] saw
[4:42:24 PM ET] lower
[4:42:24 PM ET] income
[4:42:25 PM ET] cohorts out of the
[4:42:25 PM ET] higher
[4:42:26 PM ET] higher-income
[4:42:26 PM ET] income
[4:42:27 PM ET] cohorts for
[4:42:27 PM ET] the first
[4:42:27 PM ET] time this
[4:42:28 PM ET] we saw lower income cohorts outperform higher income cohorts for the first time this year
[4:42:29 PM ET] year.
[4:42:29 PM ET] with the
[4:42:29 PM ET] greatest
[4:42:29 PM ET] strength
[4:42:30 PM ET] in
[4:42:30 PM ET] September
[4:42:31 PM ET] when
[4:42:31 PM ET] promotional
[4:42:32 PM ET] activity
[4:42:32 PM ET] was
[4:42:32 PM ET] at its
[4:42:33 PM ET] with the greatest strength in september when promotional activity was at its lowest
[4:42:34 PM ET] lowest.
[4:42:35 PM ET] Driving this in
[4:42:35 PM ET] Q3
[4:42:35 PM ET] was
[4:42:35 PM ET] our
[4:42:36 PM ET] 100
[4:42:36 PM ET] creators
[4:42:37 PM ET] driving this in q3 was our one hundred creators campaign
[4:42:38 PM ET] campaign,
[4:42:38 PM ET] which
[4:42:38 PM ET] brought
[4:42:39 PM ET] popular
[4:42:39 PM ET] creators directly to the
[4:42:40 PM ET] into
[4:42:40 PM ET] Chipotle
[4:42:41 PM ET] Kitchen.
[4:42:41 PM ET] to
[4:42:42 PM ET] experience
[4:42:42 PM ET] the
[4:42:42 PM ET] which brought popular creators directly into chipotle kitchens
[4:42:42 PM ET] brand
[4:42:43 PM ET] to experience the brand firsthand
[4:42:43 PM ET] firsthand
[4:42:44 PM ET] and capture the
[4:42:45 PM ET] care,
[4:42:45 PM ET] and capture the care
[4:42:46 PM ET] craft
[4:42:46 PM ET] craft,
[4:42:46 PM ET] and
[4:42:46 PM ET] fresh
[4:42:47 PM ET] preparation
[4:42:47 PM ET] that goes to the
[4:42:47 PM ET] into
[4:42:47 PM ET] our
[4:42:48 PM ET] food every
[4:42:48 PM ET] and fresh preparation that goes into our food every day
[4:42:49 PM ET] every
[4:42:49 PM ET] day.
[4:42:50 PM ET] Our work
[4:42:50 PM ET] with cartoons is a very important
[4:42:51 PM ET] B
[4:42:51 PM ET] and
[4:42:51 PM ET] the
[4:42:51 PM ET] DeBardi
[4:42:52 PM ET] Bowl created a new
[4:42:52 PM ET] another
[4:42:53 PM ET] meaningful
[4:42:53 PM ET] our work with cardi b and the bardi bowl created
[4:42:54 PM ET] another meaningful connection
[4:42:54 PM ET] connection
[4:42:54 PM ET] while
[4:42:54 PM ET] promoting
[4:42:54 PM ET] our
[4:42:55 PM ET] chili
[4:42:55 PM ET] lime.
[4:42:56 PM ET] while promoting our chili lime chips
[4:42:57 PM ET] chips.
[4:42:58 PM ET] The Salish Matter kids
[4:42:58 PM ET] meal
[4:42:58 PM ET] helped
[4:42:59 PM ET] us
[4:42:59 PM ET] engage in the middle of the
[4:43:00 PM ET] families
[4:43:00 PM ET] with
[4:43:00 PM ET] young
[4:43:00 PM ET] younger
[4:43:01 PM ET] the salish matter kids meal helped us engage families with younger guests
[4:43:01 PM ET] guests.
[4:43:02 PM ET] while
[4:43:02 PM ET] our
[4:43:02 PM ET] PGA
[4:43:04 PM ET] 2K25
[4:43:04 PM ET] integration
[4:43:04 PM ET] allowed us
[4:43:05 PM ET] to
[4:43:05 PM ET] tap
[4:43:05 PM ET] into
[4:43:05 PM ET] the
[4:43:06 PM ET] strong
[4:43:06 PM ET] while our pga two k twenty five integration allowed us to tap into
[4:43:07 PM ET] affinity
[4:43:07 PM ET] between
[4:43:08 PM ET] Chipotle
[4:43:08 PM ET] and
[4:43:08 PM ET] the
[4:43:08 PM ET] Gulf of United
[4:43:09 PM ET] the strong affinity between chipotle and the golf community
[4:43:10 PM ET] community.
[4:43:10 PM ET] And
[4:43:11 PM ET] recently, we reviewed the
[4:43:12 PM ET] that
[4:43:12 PM ET] music
[4:43:12 PM ET] within
[4:43:13 PM ET] our
[4:43:13 PM ET] 100
[4:43:14 PM ET] creators can be
[4:43:14 PM ET] and recently we revealed that the music within our one hundred creators'
[4:43:14 PM ET] campaign
[4:43:14 PM ET] was
[4:43:14 PM ET] the result of
[4:43:15 PM ET] the
[4:43:15 PM ET] a
[4:43:16 PM ET] partnership
[4:43:16 PM ET] with
[4:43:16 PM ET] the
[4:43:17 PM ET] London
[4:43:17 PM ET] Vegetable
[4:43:18 PM ET] campaign was the result of a partnership with the london vegetable orchestra
[4:43:19 PM ET] Orchestra.
[4:43:19 PM ET] We enlisted
[4:43:20 PM ET] them
[4:43:20 PM ET] to
[4:43:21 PM ET] record
[4:43:21 PM ET] an
[4:43:21 PM ET] original
[4:43:21 PM ET] track
[4:43:21 PM ET] at
[4:43:22 PM ET] the
[4:43:22 PM ET] legendary Abby
[4:43:23 PM ET] Road
[4:43:23 PM ET] we enlisted them to record an original track at
[4:43:24 PM ET] the legendary abbey road studios
[4:43:24 PM ET] Studios
[4:43:24 PM ET] with
[4:43:25 PM ET] instruments
[4:43:25 PM ET] made
[4:43:25 PM ET] from
[4:43:25 PM ET] our
[4:43:26 PM ET] 53
[4:43:26 PM ET] reel and
[4:43:27 PM ET] with instruments made from our fifty three real ingredients
[4:43:28 PM ET] ingredients.
[4:43:29 PM ET] These
[4:43:29 PM ET] activations
[4:43:29 PM ET] are the same as the
[4:43:30 PM ET] designed to be a very important
[4:43:30 PM ET] do more than
[4:43:31 PM ET] generate
[4:43:32 PM ET] these activations are designed to do more than generate attention
[4:43:32 PM ET] attention.
[4:43:33 PM ET] They
[4:43:33 PM ET] help
[4:43:33 PM ET] us
[4:43:33 PM ET] tell
[4:43:33 PM ET] the
[4:43:34 PM ET] story
[4:43:34 PM ET] and
[4:43:34 PM ET] in fresh
[4:43:35 PM ET] ways brought
[4:43:36 PM ET] broaden our
[4:43:36 PM ET] they help us tell the story in fresh ways broaden our reach
[4:43:36 PM ET] reach,
[4:43:36 PM ET] and
[4:43:37 PM ET] keep
[4:43:37 PM ET] the
[4:43:37 PM ET] brand
[4:43:37 PM ET] top of the
[4:43:38 PM ET] and keep the brand top of mind
[4:43:39 PM ET] mind.
[4:43:41 PM ET] Menu innovation is
[4:43:41 PM ET] another
[4:43:41 PM ET] important
[4:43:42 PM ET] factor
[4:43:42 PM ET] in
[4:43:42 PM ET] enhancing the
[4:43:42 PM ET] our
[4:43:43 PM ET] value
[4:43:43 PM ET] menu innovation is another important factor
[4:43:44 PM ET] in enhancing our value proposition
[4:43:44 PM ET] proposition.
[4:43:45 PM ET] attracting
[4:43:45 PM ET] new
[4:43:46 PM ET] attracting new guests
[4:43:46 PM ET] guests,
[4:43:46 PM ET] and giving us a new
[4:43:47 PM ET] existing
[4:43:47 PM ET] guests
[4:43:48 PM ET] more
[4:43:48 PM ET] reason
[4:43:48 PM ET] to
[4:43:49 PM ET] and giving existing guests more reason to visit
[4:43:49 PM ET] visit.
[4:43:50 PM ET] all while
[4:43:50 PM ET] staying true to the
[4:43:51 PM ET] our
[4:43:51 PM ET] food
[4:43:51 PM ET] within
[4:43:52 PM ET] integrity
[4:43:52 PM ET] all while staying true to our food with integrity commitment
[4:43:52 PM ET] commitment
[4:43:52 PM ET] and
[4:43:53 PM ET] to come
[4:43:53 PM ET] colour of the
[4:43:53 PM ET] principles the
[4:43:54 PM ET] that define
[4:43:54 PM ET] our
[4:43:55 PM ET] Chibot
[4:43:55 PM ET] and the culinary principles that define chipotle
[4:43:55 PM ET] Le.
[4:43:58 PM ET] On August
[4:43:59 PM ET] 31st,
[4:43:59 PM ET] we brought up the first
[4:43:59 PM ET] new
[4:44:00 PM ET] ground
[4:44:00 PM ET] by launching a new
[4:44:00 PM ET] on august thirty first
[4:44:00 PM ET] two
[4:44:01 PM ET] limited
[4:44:02 PM ET] time
[4:44:02 PM ET] offerings
[4:44:02 PM ET] we broke new ground by launching two limited time offerings together
[4:44:03 PM ET] together.
[4:44:03 PM ET] bringing
[4:44:03 PM ET] back
[4:44:04 PM ET] polio
[4:44:04 PM ET] asada
[4:44:04 PM ET] with
[4:44:04 PM ET] an
[4:44:05 PM ET] all-new
[4:44:06 PM ET] bringing back pollo asada with an all new recipe
[4:44:06 PM ET] recipe and
[4:44:06 PM ET] our
[4:44:07 PM ET] chili
[4:44:07 PM ET] lime
[4:44:07 PM ET] chips
[4:44:07 PM ET] are
[4:44:08 PM ET] our
[4:44:08 PM ET] first
[4:44:08 PM ET] innovation
[4:44:08 PM ET] in
[4:44:08 PM ET] the
[4:44:09 PM ET] and our chili lime chips our first innovation in the category
[4:44:10 PM ET] category.
[4:44:12 PM ET] Poyo Asada features freshly
[4:44:12 PM ET] grilled
[4:44:12 PM ET] adobo
[4:44:13 PM ET] chicken
[4:44:13 PM ET] pollo asada features freshly grilled adobo chicken
[4:44:14 PM ET] seasoned
[4:44:14 PM ET] with
[4:44:14 PM ET] garlic
[4:44:15 PM ET] and
[4:44:15 PM ET] Mexican
[4:44:16 PM ET] seasoned with garlic and mexican spices
[4:44:16 PM ET] spices.
[4:44:16 PM ET] hand
[4:44:17 PM ET] cut
[4:44:17 PM ET] cilantro,
[4:44:17 PM ET] and
[4:44:18 PM ET] bright
[4:44:19 PM ET] hand cut cilantro and bright citrus
[4:44:19 PM ET] citrus.
[4:44:20 PM ET] Guest
[4:44:20 PM ET] response is
[4:44:21 PM ET] has
[4:44:21 PM ET] exceeded
[4:44:21 PM ET] our
[4:44:22 PM ET] guest response has exceeded our expectations
[4:44:22 PM ET] expectations.
[4:44:23 PM ET] driving
[4:44:23 PM ET] incremental
[4:44:24 PM ET] transactions
[4:44:24 PM ET] and
[4:44:24 PM ET] an
[4:44:25 PM ET] attachment
[4:44:25 PM ET] rate in
[4:44:25 PM ET] the
[4:44:26 PM ET] low
[4:44:26 PM ET] twenty
[4:44:27 PM ET] percent
[4:44:27 PM ET] driving incremental transactions and an attachment rate in the low twenty percent range
[4:44:28 PM ET] range.
[4:44:28 PM ET] which
[4:44:28 PM ET] is
[4:44:28 PM ET] significantly
[4:44:29 PM ET] higher than the
[4:44:29 PM ET] range of
[4:44:29 PM ET] our
[4:44:30 PM ET] prior
[4:44:31 PM ET] which is significantly higher than our prior launch
[4:44:31 PM ET] launch.
[4:44:33 PM ET] Chili lime chips were
[4:44:33 PM ET] inspired by the
[4:44:33 PM ET] a
[4:44:34 PM ET] viral
[4:44:34 PM ET] fan
[4:44:34 PM ET] food
[4:44:35 PM ET] chili lime chips were inspired by a viral fan food hack
[4:44:35 PM ET] hack
[4:44:35 PM ET] and
[4:44:35 PM ET] are made of a
[4:44:36 PM ET] fresh
[4:44:36 PM ET] daily
[4:44:36 PM ET] in
[4:44:37 PM ET] hand
[4:44:37 PM ET] seasoned
[4:44:37 PM ET] and are made fresh daily and hand seasoned
[4:44:38 PM ET] with
[4:44:38 PM ET] fresh
[4:44:38 PM ET] squeezed
[4:44:38 PM ET] lime.
[4:44:39 PM ET] and
[4:44:39 PM ET] chili
[4:44:40 PM ET] with fresh squeezed lime and chili peppers
[4:44:41 PM ET] peppers.
[4:44:42 PM ET] Yes response has been very
[4:44:43 PM ET] positive.
[4:44:43 PM ET] driving
[4:44:44 PM ET] incremental
[4:44:44 PM ET] growth
[4:44:44 PM ET] and over the
[4:44:45 PM ET] chip
[4:44:46 PM ET] guest response has been very positive driving incremental growth in overall
[4:44:46 PM ET] incidents
[4:44:47 PM ET] incidence.
[4:44:48 PM ET] The
[4:44:48 PM ET] launcher
[4:44:49 PM ET] lime sauce
[4:44:49 PM ET] also remains a lot of the same
[4:44:49 PM ET] on
[4:44:49 PM ET] menu throughout the
[4:44:50 PM ET] quarter
[4:44:50 PM ET] and
[4:44:51 PM ET] has made
[4:44:51 PM ET] maintained
[4:44:51 PM ET] cilantro lime sauce also remained on the menu throughout the quarter and has maintained
[4:44:51 PM ET] a
[4:44:51 PM ET] strong
[4:44:52 PM ET] attachment to the
[4:44:53 PM ET] a strong attachment rate
[4:44:53 PM ET] rate.
[4:44:54 PM ET] While
[4:44:54 PM ET] outperforming
[4:44:54 PM ET] the
[4:44:54 PM ET] benchmark
[4:44:55 PM ET] set
[4:44:55 PM ET] by
[4:44:55 PM ET] prior
[4:44:56 PM ET] sauce
[4:44:56 PM ET] in
[4:44:57 PM ET] while outperforming the benchmark set by prior sauce innovation
[4:44:57 PM ET] Innovation.
[4:44:59 PM ET] Next
[4:44:59 PM ET] week
[4:44:59 PM ET] we are excited to be able to do
[4:45:00 PM ET] bring it
[4:45:00 PM ET] you the next
[4:45:00 PM ET] to
[4:45:00 PM ET] back some of the other
[4:45:01 PM ET] brisket
[4:45:01 PM ET] for a little
[4:45:01 PM ET] limited
[4:45:02 PM ET] next week we are
[4:45:02 PM ET] time
[4:45:02 PM ET] with
[4:45:02 PM ET] a
[4:45:03 PM ET] new and
[4:45:03 PM ET] even
[4:45:03 PM ET] more
[4:45:04 PM ET] delicious
[4:45:05 PM ET] excited to bring back smoked brisket for a limited time with a new and even more delicious recipe
[4:45:05 PM ET] recipe.
[4:45:06 PM ET] Featuring
[4:45:07 PM ET] responsibly
[4:45:07 PM ET] raised
[4:45:07 PM ET] beef
[4:45:08 PM ET] that
[4:45:08 PM ET] is
[4:45:08 PM ET] seasoned
[4:45:08 PM ET] with
[4:45:09 PM ET] featuring responsibly raised beef that is seasoned with spices
[4:45:09 PM ET] spices
[4:45:09 PM ET] including the
[4:45:10 PM ET] smoked
[4:45:11 PM ET] serrana
[4:45:11 PM ET] and
[4:45:11 PM ET] chipotle
[4:45:12 PM ET] chili
[4:45:12 PM ET] including smoked serrano and chipotle chili peppers
[4:45:12 PM ET] peppers
[4:45:13 PM ET] before
[4:45:13 PM ET] being
[4:45:13 PM ET] smoked
[4:45:14 PM ET] over
[4:45:14 PM ET] mesquite
[4:45:15 PM ET] before being smoked over mesquite wood
[4:45:16 PM ET] wood.
[4:45:16 PM ET] Once in
[4:45:16 PM ET] our
[4:45:17 PM ET] once in our restaurants
[4:45:17 PM ET] restaurants,
[4:45:18 PM ET] teams seek to be a little bit more than a
[4:45:18 PM ET] the rest of the
[4:45:18 PM ET] brisket on the
[4:45:19 PM ET] teams sear the brisket on the plancha
[4:45:20 PM ET] plancha, finish the
[4:45:20 PM ET] it with
[4:45:21 PM ET] finish it with spices
[4:45:22 PM ET] spices, toss
[4:45:22 PM ET] it in the
[4:45:22 PM ET] a
[4:45:22 PM ET] savory
[4:45:23 PM ET] sauce
[4:45:23 PM ET] made with a
[4:45:24 PM ET] smoky
[4:45:24 PM ET] chili
[4:45:25 PM ET] toss it in a savory sauce made with smoky chili peppers
[4:45:25 PM ET] peppers
[4:45:25 PM ET] and
[4:45:25 PM ET] hand-chopped
[4:45:25 PM ET] chop
[4:45:26 PM ET] it
[4:45:26 PM ET] and smoke
[4:45:26 PM ET] small
[4:45:27 PM ET] batches
[4:45:27 PM ET] throughout the
[4:45:28 PM ET] and hand chop it in small batches throughout the day
[4:45:28 PM ET] day.
[4:45:30 PM ET] Smoked brisket
[4:45:30 PM ET] is
[4:45:30 PM ET] demonstrated
[4:45:30 PM ET] in
[4:45:30 PM ET] both
[4:45:31 PM ET] broth
[4:45:31 PM ET] broad
[4:45:31 PM ET] guest
[4:45:32 PM ET] appeal
[4:45:32 PM ET] and
[4:45:32 PM ET] incremental
[4:45:33 PM ET] smoked brisket has demonstrated both broad guest appeal and
[4:45:33 PM ET] transaction
[4:45:33 PM ET] incremental transaction growth
[4:45:33 PM ET] growth
[4:45:34 PM ET] in
[4:45:34 PM ET] the
[4:45:35 PM ET] in the past
[4:45:35 PM ET] past and
[4:45:35 PM ET] we
[4:45:35 PM ET] look
[4:45:35 PM ET] forward
[4:45:36 PM ET] to
[4:45:36 PM ET] bringing
[4:45:36 PM ET] it
[4:45:36 PM ET] and we look forward to bringing it back
[4:45:37 PM ET] it
[4:45:37 PM ET] back.
[4:45:38 PM ET] We have been
[4:45:38 PM ET] hard at
[4:45:39 PM ET] work this
[4:45:39 PM ET] year on
[4:45:40 PM ET] our
[4:45:40 PM ET] innovation
[4:45:41 PM ET] we have been hard at work this year on our innovation pipeline
[4:45:41 PM ET] pipeline,
[4:45:42 PM ET] which
[4:45:42 PM ET] remains
[4:45:43 PM ET] which remains strong
[4:45:43 PM ET] strong.
[4:45:43 PM ET] in
[4:45:44 PM ET] 2027
[4:45:44 PM ET] and
[4:45:45 PM ET] beyond,
[4:45:45 PM ET] in twenty twenty seven and beyond
[4:45:45 PM ET] we
[4:45:45 PM ET] see
[4:45:46 PM ET] considerable
[4:45:47 PM ET] opportunity across the
[4:45:48 PM ET] proteins,
[4:45:48 PM ET] sides,
[4:45:49 PM ET] and
[4:45:50 PM ET] we see considerable opportunity across proteins sides and beverages
[4:45:50 PM ET] beverages,
[4:45:50 PM ET] giving
[4:45:50 PM ET] us more than a lot of the same
[4:45:51 PM ET] multiple ways to do
[4:45:51 PM ET] create
[4:45:52 PM ET] fresh
[4:45:52 PM ET] news around the
[4:45:53 PM ET] Chipotle
[4:45:53 PM ET] while
[4:45:54 PM ET] staying
[4:45:54 PM ET] true to
[4:45:54 PM ET] who we
[4:45:55 PM ET] giving us multiple ways to create fresh news around chipotle while
[4:45:55 PM ET] staying true to who we are
[4:45:56 PM ET] we
[4:45:56 PM ET] are.
[4:45:56 PM ET] We also continue to be able to do
[4:45:57 PM ET] make
[4:45:57 PM ET] progress on the
[4:45:58 PM ET] our
[4:45:58 PM ET] efforts
[4:45:58 PM ET] to
[4:45:59 PM ET] expand
[4:45:59 PM ET] catering
[4:46:00 PM ET] we also continue to make progress on our efforts to expand catering nationally
[4:46:00 PM ET] nationally and
[4:46:01 PM ET] we intend to be able to do
[4:46:01 PM ET] begin
[4:46:01 PM ET] rolling
[4:46:01 PM ET] it
[4:46:02 PM ET] out
[4:46:02 PM ET] in
[4:46:02 PM ET] Q1 of
[4:46:04 PM ET] twenty twenty
[4:46:04 PM ET] and we intend to begin rolling it out in q1 of twenty twenty seven
[4:46:05 PM ET] We have been
[4:46:05 PM ET] working
[4:46:05 PM ET] on
[4:46:06 PM ET] refining
[4:46:06 PM ET] our approach to the
[4:46:06 PM ET] and developing
[4:46:07 PM ET] bespoke
[4:46:08 PM ET] load
[4:46:08 PM ET] balancing
[4:46:08 PM ET] tools
[4:46:09 PM ET] we have been working on refining our approach and developing the
[4:46:09 PM ET] to
[4:46:09 PM ET] help
[4:46:09 PM ET] optimize
[4:46:09 PM ET] the
[4:46:10 PM ET] bespoke load balancing tools to help optimize the process
[4:46:11 PM ET] the
[4:46:11 PM ET] process.
[4:46:12 PM ET] And our pilots
[4:46:12 PM ET] have
[4:46:12 PM ET] delivered
[4:46:12 PM ET] the option to provide
[4:46:13 PM ET] operational
[4:46:14 PM ET] marketing,
[4:46:14 PM ET] and
[4:46:15 PM ET] technology
[4:46:15 PM ET] insights we
[4:46:15 PM ET] and our pilots have delivered the operational marketing
[4:46:15 PM ET] need to
[4:46:16 PM ET] fill
[4:46:16 PM ET] feel
[4:46:17 PM ET] and technology insights we need to feel confident
[4:46:17 PM ET] confident we
[4:46:17 PM ET] can
[4:46:17 PM ET] grow
[4:46:18 PM ET] without
[4:46:18 PM ET] disrupting
[4:46:18 PM ET] the
[4:46:19 PM ET] core
[4:46:19 PM ET] lunch
[4:46:19 PM ET] and
[4:46:19 PM ET] dinner
[4:46:20 PM ET] we can grow without disrupting the core lunch and dinner business
[4:46:21 PM ET] business.
[4:46:22 PM ET] Catering guests have
[4:46:23 PM ET] heightened
[4:46:24 PM ET] expectations and
[4:46:24 PM ET] we intend to be able to get a lot of
[4:46:25 PM ET] deliver
[4:46:25 PM ET] catering guests have heightened expectations
[4:46:25 PM ET] flawless
[4:46:26 PM ET] and we intend to deliver flawless execution
[4:46:26 PM ET] execution
[4:46:26 PM ET] as
[4:46:27 PM ET] we
[4:46:27 PM ET] as we scale
[4:46:28 PM ET] scale.
[4:46:30 PM ET] additionally
[4:46:31 PM ET] Additionally,
[4:46:31 PM ET] Chipotle for the
[4:46:31 PM ET] Family
[4:46:31 PM ET] Meal
[4:46:32 PM ET] chipotle family meals
[4:46:32 PM ET] meals
[4:46:32 PM ET] which
[4:46:32 PM ET] are
[4:46:33 PM ET] also
[4:46:33 PM ET] available for
[4:46:33 PM ET] in
[4:46:34 PM ET] Canada,
[4:46:34 PM ET] are ready to be
[4:46:34 PM ET] with the Canadian
[4:46:35 PM ET] as
[4:46:35 PM ET] a
[4:46:36 PM ET] which are also available in canada are resonating as a convenient
[4:46:36 PM ET] convenient,
[4:46:36 PM ET] high
[4:46:37 PM ET] solution
[4:46:37 PM ET] for
[4:46:37 PM ET] groups
[4:46:38 PM ET] of
[4:46:38 PM ET] four
[4:46:38 PM ET] to
[4:46:39 PM ET] high value solution for groups of four to six
[4:46:39 PM ET] 6.
[4:46:40 PM ET] To drive
[4:46:40 PM ET] awareness
[4:46:41 PM ET] for
[4:46:41 PM ET] the
[4:46:41 PM ET] family
[4:46:41 PM ET] meal
[4:46:42 PM ET] to drive awareness for the family meal offering
[4:46:42 PM ET] offering,
[4:46:43 PM ET] this
[4:46:43 PM ET] month
[4:46:43 PM ET] we
[4:46:44 PM ET] launched
[4:46:44 PM ET] a member of
[4:46:45 PM ET] marketing
[4:46:45 PM ET] campaign
[4:46:46 PM ET] this month launched a memorable marketing campaign
[4:46:46 PM ET] which
[4:46:46 PM ET] I'll
[4:46:46 PM ET] just
[4:46:47 PM ET] say
[4:46:47 PM ET] like
[4:46:47 PM ET] it's
[4:46:47 PM ET] its
[4:46:48 PM ET] which i'll just say like its name
[4:46:48 PM ET] name
[4:46:48 PM ET] isn't
[4:46:48 PM ET] an
[4:46:49 PM ET] enormous
[4:46:49 PM ET] bag
[4:46:49 PM ET] to
[4:46:50 PM ET] highlight
[4:46:50 PM ET] the
[4:46:50 PM ET] oversized meal.
[4:46:52 PM ET] is an enormous bag to highlight the oversized meal offering
[4:46:52 PM ET] offering.
[4:46:53 PM ET] This was
[4:46:53 PM ET] a
[4:46:53 PM ET] fun
[4:46:53 PM ET] and
[4:46:54 PM ET] distinctive
[4:46:54 PM ET] way
[4:46:54 PM ET] to connect to the
[4:46:55 PM ET] brand
[4:46:55 PM ET] to
[4:46:56 PM ET] this was a fun and distinctive way to connect the brand to culture
[4:46:56 PM ET] culture,
[4:46:56 PM ET] drive bugs, and brand new
[4:46:57 PM ET] drive buzz
[4:46:57 PM ET] buzz,
[4:46:57 PM ET] and
[4:46:58 PM ET] showcase
[4:46:59 PM ET] and showcase value
[4:46:59 PM ET] value.
[4:47:00 PM ET] Early results
[4:47:00 PM ET] have shown
[4:47:01 PM ET] a steady
[4:47:01 PM ET] up
[4:47:01 PM ET] of over $2.5
[4:47:02 PM ET] 30% of the value of the
[4:47:03 PM ET] in favor of the
[4:47:03 PM ET] meals.
[4:47:04 PM ET] meal
[4:47:04 PM ET] early results have shown a step up of over thirty percent in family meal sales
[4:47:05 PM ET] sales.
[4:47:07 PM ET] Together, catering and
[4:47:07 PM ET] chapter
[4:47:08 PM ET] family
[4:47:08 PM ET] meals
[4:47:08 PM ET] represent the
[4:47:09 PM ET] a
[4:47:09 PM ET] approximately a
[4:47:09 PM ET] together catering and chipotle family meals represent
[4:47:10 PM ET] approximately
[4:47:10 PM ET] 3% of the
[4:47:11 PM ET] sales
[4:47:11 PM ET] three percent of sales today
[4:47:12 PM ET] today.
[4:47:13 PM ET] Both
[4:47:13 PM ET] remain
[4:47:13 PM ET] highly
[4:47:14 PM ET] incremental
[4:47:14 PM ET] and I'm not
[4:47:14 PM ET] operationally
[4:47:15 PM ET] both remain highly incremental and operationally efficient
[4:47:15 PM ET] efficient,
[4:47:16 PM ET] giving
[4:47:16 PM ET] us
[4:47:16 PM ET] another
[4:47:17 PM ET] meaningful
[4:47:17 PM ET] runway
[4:47:17 PM ET] for
[4:47:18 PM ET] giving us another meaningful runway for growth
[4:47:19 PM ET] growth.
[4:47:20 PM ET] Turning to our
[4:47:20 PM ET] fourth
[4:47:21 PM ET] pillar,
[4:47:21 PM ET] cultivating
[4:47:21 PM ET] the
[4:47:22 PM ET] best
[4:47:22 PM ET] talent in the
[4:47:23 PM ET] turning to our fourth pillar cultivating the best talent in the industry
[4:47:24 PM ET] industry.
[4:47:24 PM ET] Our people
[4:47:24 PM ET] remain
[4:47:25 PM ET] our
[4:47:25 PM ET] greatest
[4:47:25 PM ET] competitive
[4:47:26 PM ET] our people remain our greatest competitive advantage
[4:47:27 PM ET] advantage.
[4:47:28 PM ET] Quality of our restaurants are a very
[4:47:29 PM ET] teams and
[4:47:30 PM ET] leadership
[4:47:30 PM ET] quality of our restaurant teams and leadership
[4:47:30 PM ET] directly
[4:47:31 PM ET] influences
[4:47:32 PM ET] directly influences consistency
[4:47:32 PM ET] consistency, cost, and
[4:47:34 PM ET] restaurants,
[4:47:35 PM ET] hospitality restaurant performance
[4:47:35 PM ET] performance,
[4:47:35 PM ET] and
[4:47:36 PM ET] our ability to do
[4:47:36 PM ET] sustain
[4:47:37 PM ET] and our ability to sustain growth
[4:47:38 PM ET] growth.
[4:47:39 PM ET] We continue to
[4:47:40 PM ET] make
[4:47:40 PM ET] progress
[4:47:40 PM ET] building
[4:47:41 PM ET] the
[4:47:41 PM ET] pipeline
[4:47:41 PM ET] of
[4:47:41 PM ET] general
[4:47:42 PM ET] we continue to make progress building the pipeline of general managers
[4:47:42 PM ET] managers, apprentices, and authorities, and the
[4:47:43 PM ET] apprentices
[4:47:44 PM ET] and
[4:47:44 PM ET] field
[4:47:44 PM ET] leaders
[4:47:45 PM ET] needed
[4:47:45 PM ET] to
[4:47:45 PM ET] support
[4:47:45 PM ET] new
[4:47:46 PM ET] restaurant
[4:47:47 PM ET] and field leaders needed to support new restaurant openings
[4:47:47 PM ET] openings.
[4:47:47 PM ET] and
[4:47:47 PM ET] were proud
[4:47:48 PM ET] to
[4:47:48 PM ET] see
[4:47:48 PM ET] both
[4:47:49 PM ET] general
[4:47:49 PM ET] manager
[4:47:49 PM ET] and
[4:47:49 PM ET] crew
[4:47:49 PM ET] turn
[4:47:50 PM ET] turnover
[4:47:51 PM ET] down
[4:47:51 PM ET] year
[4:47:51 PM ET] over
[4:47:52 PM ET] and we're proud to see both general manager and crew turnover down year over year
[4:47:52 PM ET] year.
[4:47:53 PM ET] We also understand that we have
[4:47:54 PM ET] the value of the
[4:47:54 PM ET] a
[4:47:55 PM ET] second 10 year old
[4:47:55 PM ET] manager in the
[4:47:56 PM ET] rest of
[4:47:56 PM ET] we also understand the value of a second tenured manager in the restaurant
[4:47:57 PM ET] restaurant.
[4:47:58 PM ET] With better
[4:47:58 PM ET] operational engagement, the rest of the world is a
[4:47:59 PM ET] guest
[4:47:59 PM ET] spacing out
[4:47:59 PM ET] outcomes
[4:48:00 PM ET] occurring
[4:48:00 PM ET] in roughly a
[4:48:01 PM ET] with better operational and guest facing outcomes occurring in restaurants
[4:48:01 PM ET] restaurants
[4:48:01 PM ET] that
[4:48:01 PM ET] do
[4:48:01 PM ET] have
[4:48:01 PM ET] an
[4:48:02 PM ET] that do have an apprentice
[4:48:03 PM ET] apprentice.
[4:48:04 PM ET] Three-quarters of
[4:48:04 PM ET] our
[4:48:05 PM ET] restaurants have a great
[4:48:06 PM ET] apprentices to
[4:48:07 PM ET] three quarters of our restaurants have apprentices today
[4:48:07 PM ET] today, and we
[4:48:07 PM ET] will
[4:48:07 PM ET] begin
[4:48:08 PM ET] expanding
[4:48:08 PM ET] coverage
[4:48:09 PM ET] incrementally
[4:48:09 PM ET] in
[4:48:10 PM ET] and we will begin expanding coverage incrementally in twenty twenty seven
[4:48:11 PM ET] 2027.
[4:48:11 PM ET] We will keep
[4:48:11 PM ET] a
[4:48:12 PM ET] keen focus on the coverage of the coverage
[4:48:13 PM ET] focus
[4:48:13 PM ET] on
[4:48:14 PM ET] hospitality
[4:48:14 PM ET] and
[4:48:14 PM ET] measuring
[4:48:14 PM ET] the
[4:48:15 PM ET] sustained benefit of the
[4:48:15 PM ET] we will keep a keen focus on hospitality
[4:48:16 PM ET] this
[4:48:16 PM ET] and measuring the sustained benefit of this investment
[4:48:17 PM ET] investment.
[4:48:17 PM ET] And we believe the return of the investment is the most
[4:48:18 PM ET] will be a good
[4:48:19 PM ET] justify
[4:48:19 PM ET] further
[4:48:20 PM ET] expansion across the
[4:48:21 PM ET] and we believe the returns will justify further expansion across the year
[4:48:21 PM ET] the
[4:48:21 PM ET] year.
[4:48:23 PM ET] Central to our
[4:48:23 PM ET] people
[4:48:24 PM ET] strategy
[4:48:24 PM ET] is
[4:48:24 PM ET] offering
[4:48:25 PM ET] world-class
[4:48:25 PM ET] central to our people strategy is offering world class benefits
[4:48:26 PM ET] benefits
[4:48:26 PM ET] and
[4:48:27 PM ET] educational
[4:48:27 PM ET] assistance
[4:48:28 PM ET] continues to be a good
[4:48:28 PM ET] strong
[4:48:29 PM ET] driver
[4:48:29 PM ET] of
[4:48:30 PM ET] and educational assistance continues to be a strong driver of retention
[4:48:30 PM ET] retention.
[4:48:31 PM ET] In
[4:48:31 PM ET] August,
[4:48:32 PM ET] we said that we had a very important part of the
[4:48:32 PM ET] rest
[4:48:32 PM ET] 10 years of the
[4:48:33 PM ET] anniversary
[4:48:33 PM ET] the
[4:48:33 PM ET] of
[4:48:33 PM ET] August
[4:48:33 PM ET] our
[4:48:34 PM ET] partnership
[4:48:34 PM ET] with
[4:48:35 PM ET] in august we celebrated the ten year anniversary of our
[4:48:35 PM ET] partnership with guild
[4:48:35 PM ET] Guild.
[4:48:36 PM ET] which provides a new part of the
[4:48:36 PM ET] depth for the
[4:48:37 PM ET] education
[4:48:38 PM ET] and
[4:48:38 PM ET] greater
[4:48:38 PM ET] career
[4:48:39 PM ET] mobility
[4:48:39 PM ET] for our
[4:48:39 PM ET] team
[4:48:40 PM ET] which provides debt free education and greater career mobility for our team members
[4:48:41 PM ET] members.
[4:48:42 PM ET] Nearly
[4:48:42 PM ET] nearly twenty five thousand
[4:48:42 PM ET] 25,000
[4:48:42 PM ET] team
[4:48:43 PM ET] members
[4:48:43 PM ET] have
[4:48:43 PM ET] enrolled in the
[4:48:44 PM ET] education
[4:48:45 PM ET] members have enrolled in the education program
[4:48:45 PM ET] program and more than
[4:48:46 PM ET] 14,000 have
[4:48:47 PM ET] completed
[4:48:48 PM ET] and more than fourteen thousand have completed one
[4:48:48 PM ET] one.
[4:48:50 PM ET] Those programs
[4:48:50 PM ET] reinforce the
[4:48:50 PM ET] some of
[4:48:51 PM ET] something
[4:48:51 PM ET] fundamental to our
[4:48:52 PM ET] culture.
[4:48:53 PM ET] those programs reinforce something fundamental to our culture
[4:48:53 PM ET] Chipotle
[4:48:53 PM ET] is
[4:48:53 PM ET] a
[4:48:53 PM ET] place
[4:48:54 PM ET] where people
[4:48:54 PM ET] build
[4:48:55 PM ET] meaningful,
[4:48:55 PM ET] long-term
[4:48:56 PM ET] chipotle is a place where people build meaningful long term careers
[4:48:57 PM ET] careers.
[4:48:59 PM ET] And as we
[4:48:59 PM ET] strengthen
[4:48:59 PM ET] leadership
[4:49:00 PM ET] across the
[4:49:01 PM ET] organization,
[4:49:01 PM ET] we're going to be able to do
[4:49:01 PM ET] and as we strengthen leadership across the organization
[4:49:02 PM ET] continuing
[4:49:02 PM ET] add
[4:49:03 PM ET] capabilities
[4:49:03 PM ET] and
[4:49:04 PM ET] expertise
[4:49:04 PM ET] at
[4:49:04 PM ET] the
[4:49:04 PM ET] board
[4:49:05 PM ET] level
[4:49:05 PM ET] we're continuing to add capabilities and expertise at the board level
[4:49:05 PM ET] to support the
[4:49:06 PM ET] our
[4:49:06 PM ET] long-term
[4:49:07 PM ET] to support our long term ambitions
[4:49:08 PM ET] ambitions.
[4:49:09 PM ET] In
[4:49:09 PM ET] September, we
[4:49:10 PM ET] added
[4:49:10 PM ET] sober
[4:49:10 PM ET] Sammy
[4:49:10 PM ET] to
[4:49:11 PM ET] our
[4:49:11 PM ET] board
[4:49:11 PM ET] of
[4:49:12 PM ET] in september we added saber sandy to our board of directors
[4:49:13 PM ET] directors.
[4:49:13 PM ET] Saber
[4:49:14 PM ET] brings
[4:49:14 PM ET] extensive
[4:49:14 PM ET] global
[4:49:15 PM ET] restaurant
[4:49:15 PM ET] leadership
[4:49:16 PM ET] and
[4:49:16 PM ET] operating
[4:49:17 PM ET] sabra brings extensive global restaurant leadership and operating experience
[4:49:17 PM ET] experience
[4:49:17 PM ET] with
[4:49:18 PM ET] capabilities
[4:49:18 PM ET] that
[4:49:18 PM ET] align
[4:49:19 PM ET] with
[4:49:19 PM ET] our
[4:49:19 PM ET] international
[4:49:20 PM ET] growth
[4:49:21 PM ET] with capabilities that align with our international growth ambitions
[4:49:21 PM ET] ambitions.
[4:49:24 PM ET] Finally,
[4:49:24 PM ET] to the next
[4:49:25 PM ET] our
[4:49:25 PM ET] fifth
[4:49:26 PM ET] finally turning to our fifth pillar
[4:49:26 PM ET] pillar, we
[4:49:26 PM ET] are explaining to
[4:49:27 PM ET] our
[4:49:27 PM ET] global
[4:49:28 PM ET] we are expanding our global footprint
[4:49:29 PM ET] footprint
[4:49:29 PM ET] Our
[4:49:29 PM ET] approach
[4:49:29 PM ET] to
[4:49:29 PM ET] development is a global global
[4:49:30 PM ET] remains
[4:49:31 PM ET] our approach to development remains disciplined
[4:49:32 PM ET] disciplined, cyclical,
[4:49:32 PM ET] and
[4:49:32 PM ET] the
[4:49:33 PM ET] selection,
[4:49:33 PM ET] restaurant economic, and the
[4:49:34 PM ET] site selection restaurant economics
[4:49:34 PM ET] economics,
[4:49:35 PM ET] expected
[4:49:36 PM ET] expected returns
[4:49:36 PM ET] returns,
[4:49:36 PM ET] and
[4:49:36 PM ET] the strength of
[4:49:37 PM ET] our
[4:49:37 PM ET] talent
[4:49:38 PM ET] pipeline
[4:49:38 PM ET] all
[4:49:38 PM ET] inform
[4:49:39 PM ET] the
[4:49:39 PM ET] pace of
[4:49:40 PM ET] and the strength of our talent pipeline all inform the pace of growth
[4:49:40 PM ET] growth.
[4:49:40 PM ET] and
[4:49:40 PM ET] each
[4:49:41 PM ET] remains
[4:49:41 PM ET] and each remains strong
[4:49:42 PM ET] strong.
[4:49:44 PM ET] Dipult lanes continue to be an
[4:49:44 PM ET] important part of the
[4:49:45 PM ET] that
[4:49:46 PM ET] chipotle lanes continue to be an important part of that model
[4:49:46 PM ET] model.
[4:49:46 PM ET] They
[4:49:47 PM ET] provide
[4:49:47 PM ET] greater
[4:49:48 PM ET] they provide greater convenience
[4:49:48 PM ET] convenience,
[4:49:48 PM ET] drive
[4:49:48 PM ET] higher digital
[4:49:49 PM ET] drive higher digital mix
[4:49:50 PM ET] mix, generate a lot of
[4:49:50 PM ET] stronger
[4:49:51 PM ET] sales,
[4:49:51 PM ET] and
[4:49:52 PM ET] generate stronger sales and returns
[4:49:52 PM ET] returns,
[4:49:52 PM ET] and
[4:49:52 PM ET] reduce
[4:49:53 PM ET] friction
[4:49:53 PM ET] for
[4:49:53 PM ET] our
[4:49:54 PM ET] and reduce friction for our guests
[4:49:54 PM ET] guests.
[4:49:55 PM ET] During the
[4:49:55 PM ET] third
[4:49:56 PM ET] quarter,
[4:49:56 PM ET] during the third quarter
[4:49:56 PM ET] we reached the best of the first
[4:49:57 PM ET] an
[4:49:57 PM ET] important
[4:49:57 PM ET] milestone
[4:49:58 PM ET] with
[4:49:58 PM ET] the
[4:49:58 PM ET] opening
[4:49:58 PM ET] of
[4:49:59 PM ET] our fifth
[4:50:00 PM ET] 1500th
[4:50:00 PM ET] Chipotle
[4:50:01 PM ET] Lane.
[4:50:01 PM ET] reached an important milestone with the opening of our fifteen hundredth chipotle lane
[4:50:03 PM ET] In the
[4:50:03 PM ET] U.S. and
[4:50:04 PM ET] Canada, we
[4:50:04 PM ET] opened
[4:50:04 PM ET] 83% of the
[4:50:05 PM ET] new
[4:50:06 PM ET] restaurants during the
[4:50:06 PM ET] in the u s and canada we opened eighty three new restaurants
[4:50:07 PM ET] during the quarter
[4:50:07 PM ET] quarter,
[4:50:07 PM ET] including
[4:50:08 PM ET] 53
[4:50:08 PM ET] Chipotle
[4:50:09 PM ET] Lanes.
[4:50:09 PM ET] including fifty three chipotlanes
[4:50:10 PM ET] We continue
[4:50:10 PM ET] to
[4:50:11 PM ET] see
[4:50:11 PM ET] significant
[4:50:12 PM ET] white
[4:50:12 PM ET] space
[4:50:12 PM ET] boat
[4:50:12 PM ET] both
[4:50:13 PM ET] countries
[4:50:13 PM ET] and
[4:50:13 PM ET] remain
[4:50:14 PM ET] confident they will be able
[4:50:14 PM ET] we continue to see significant white space in both countries and remain confident
[4:50:15 PM ET] open up the
[4:50:15 PM ET] around
[4:50:16 PM ET] 350
[4:50:17 PM ET] restaurants this
[4:50:17 PM ET] we will open around three fifty restaurants this year
[4:50:18 PM ET] year.
[4:50:19 PM ET] Looking ahead
[4:50:19 PM ET] to
[4:50:21 PM ET] looking ahead to twenty twenty seven
[4:50:21 PM ET] 2027,
[4:50:21 PM ET] we expect that we have to be able to do
[4:50:21 PM ET] open up
[4:50:22 PM ET] a
[4:50:22 PM ET] 20
[4:50:23 PM ET] 340
[4:50:24 PM ET] to
[4:50:24 PM ET] 360
[4:50:25 PM ET] company
[4:50:26 PM ET] we expect to open approximately three forty to
[4:50:26 PM ET] company-owned
[4:50:26 PM ET] restaurants in
[4:50:26 PM ET] the
[4:50:26 PM ET] U.S. and
[4:50:27 PM ET] three hundred and sixty company owned restaurants in the us and canada
[4:50:28 PM ET] Canada.
[4:50:29 PM ET] Our
[4:50:29 PM ET] company
[4:50:29 PM ET] owned
[4:50:30 PM ET] international
[4:50:30 PM ET] business
[4:50:31 PM ET] also can be used
[4:50:31 PM ET] to able to do
[4:50:32 PM ET] expand during the
[4:50:32 PM ET] course of
[4:50:32 PM ET] our company owned international business also continue to
[4:50:32 PM ET] expand during the quarter
[4:50:33 PM ET] quarter with a
[4:50:33 PM ET] new
[4:50:33 PM ET] restaurant
[4:50:34 PM ET] in
[4:50:34 PM ET] the
[4:50:35 PM ET] with a new restaurant in the uk
[4:50:35 PM ET] UK.
[4:50:35 PM ET] which
[4:50:35 PM ET] is
[4:50:36 PM ET] has seen over the
[4:50:36 PM ET] before
[4:50:37 PM ET] performance consisting of the same
[4:50:37 PM ET] with
[4:50:38 PM ET] our
[4:50:38 PM ET] strongest
[4:50:38 PM ET] London
[4:50:39 PM ET] which has seen opening performance consistent with our strongest london restaurants
[4:50:40 PM ET] restaurants.
[4:50:42 PM ET] Alongside our couple
[4:50:42 PM ET] company
[4:50:42 PM ET] grocery
[4:50:43 PM ET] alongside our company owned growth
[4:50:43 PM ET] growth,
[4:50:43 PM ET] our partners are aware of our
[4:50:44 PM ET] operations a lot
[4:50:44 PM ET] models are of our
[4:50:45 PM ET] model is allowed to be a lot of the
[4:50:45 PM ET] us
[4:50:45 PM ET] to
[4:50:45 PM ET] enter
[4:50:46 PM ET] new
[4:50:46 PM ET] markets
[4:50:46 PM ET] with
[4:50:47 PM ET] experienced
[4:50:47 PM ET] local
[4:50:48 PM ET] our partner operated model is allowing us to enter new markets
[4:50:48 PM ET] operators
[4:50:48 PM ET] with experienced local operators
[4:50:48 PM ET] and expand the
[4:50:49 PM ET] access to the
[4:50:50 PM ET] Chipotle
[4:50:50 PM ET] around the
[4:50:51 PM ET] and expand access to chipotle around the world
[4:50:52 PM ET] the
[4:50:52 PM ET] world.
[4:50:53 PM ET] The third
[4:50:53 PM ET] quarter marked the first
[4:50:53 PM ET] an
[4:50:54 PM ET] important step to the next
[4:50:54 PM ET] forward
[4:50:54 PM ET] in
[4:50:54 PM ET] our
[4:50:55 PM ET] ambition
[4:50:55 PM ET] to
[4:50:55 PM ET] build Chapter
[4:50:56 PM ET] the third quarter marked an important step forward in our ambition to build chipotle
[4:50:56 PM ET] into
[4:50:56 PM ET] an
[4:50:57 PM ET] iconic
[4:50:57 PM ET] global
[4:50:58 PM ET] into an iconic global brand
[4:50:58 PM ET] brand as
[4:50:58 PM ET] we
[4:50:59 PM ET] entered
[4:50:59 PM ET] as we entered mexico
[4:51:00 PM ET] Mexico, South
[4:51:00 PM ET] Arabia, and the
[4:51:01 PM ET] saudi arabia
[4:51:01 PM ET] and Saudi
[4:51:01 PM ET] South
[4:51:02 PM ET] and south korea
[4:51:03 PM ET] Korea.
[4:51:04 PM ET] Meaning Chipotle is not a very important
[4:51:04 PM ET] now
[4:51:05 PM ET] available
[4:51:05 PM ET] to
[4:51:06 PM ET] meaning chipotle is now available to enjoy
[4:51:06 PM ET] enjoy in
[4:51:06 PM ET] an
[4:51:06 PM ET] 11
[4:51:07 PM ET] countries across the
[4:51:08 PM ET] eleven countries across the globe
[4:51:09 PM ET] the globe.
[4:51:09 PM ET] Each region has a lot of
[4:51:10 PM ET] demonstrated
[4:51:10 PM ET] strong
[4:51:11 PM ET] local
[4:51:12 PM ET] each region has demonstrated strong local demand
[4:51:12 PM ET] demand,
[4:51:12 PM ET] which
[4:51:12 PM ET] can
[4:51:12 PM ET] be
[4:51:13 PM ET] seen
[4:51:13 PM ET] in
[4:51:13 PM ET] the
[4:51:13 PM ET] long
[4:51:13 PM ET] lines
[4:51:14 PM ET] of
[4:51:14 PM ET] guests
[4:51:14 PM ET] waiting
[4:51:14 PM ET] for
[4:51:14 PM ET] us
[4:51:14 PM ET] to open
[4:51:15 PM ET] the
[4:51:15 PM ET] doors
[4:51:16 PM ET] on
[4:51:16 PM ET] day
[4:51:16 PM ET] which can be seen in the long lines of guests waiting for us to open the doors on day one
[4:51:16 PM ET] one
[4:51:17 PM ET] and
[4:51:17 PM ET] each
[4:51:17 PM ET] new
[4:51:17 PM ET] market
[4:51:18 PM ET] we
[4:51:18 PM ET] in each new market we enter
[4:51:19 PM ET] enter.
[4:51:21 PM ET] In
[4:51:21 PM ET] Mexico, our maintenance is a very important
[4:51:22 PM ET] first
[4:51:22 PM ET] round of the market is a very good
[4:51:22 PM ET] opened
[4:51:23 PM ET] in
[4:51:23 PM ET] July
[4:51:24 PM ET] to an
[4:51:24 PM ET] extremely
[4:51:24 PM ET] in mexico our first restaurant opened in july to an
[4:51:24 PM ET] positive
[4:51:25 PM ET] reception in the middle of
[4:51:26 PM ET] Monterey
[4:51:26 PM ET] Metropolitan
[4:51:27 PM ET] extremely positive reception in the monterrey metropolitan area
[4:51:27 PM ET] area
[4:51:28 PM ET] with
[4:51:28 PM ET] our
[4:51:28 PM ET] partner
[4:51:28 PM ET] Al
[4:51:29 PM ET] with our partner al saya
[4:51:29 PM ET] Halcea.
[4:51:30 PM ET] opening
[4:51:31 PM ET] volumes
[4:51:31 PM ET] exceeded
[4:51:32 PM ET] our
[4:51:32 PM ET] initial
[4:51:33 PM ET] expectations
[4:51:33 PM ET] and
[4:51:33 PM ET] this
[4:51:34 PM ET] is
[4:51:34 PM ET] reinforced the
[4:51:35 PM ET] appeal
[4:51:35 PM ET] opening volumes exceeded our initial expectations
[4:51:35 PM ET] of
[4:51:35 PM ET] the
[4:51:35 PM ET] Chipotle
[4:51:36 PM ET] brand
[4:51:36 PM ET] within
[4:51:36 PM ET] the
[4:51:37 PM ET] and this has reinforced the appeal of the chipotle brand within the country
[4:51:37 PM ET] the
[4:51:38 PM ET] country.
[4:51:38 PM ET] We plan
[4:51:38 PM ET] to
[4:51:38 PM ET] open
[4:51:38 PM ET] our
[4:51:39 PM ET] next
[4:51:39 PM ET] restaurant
[4:51:40 PM ET] we plan to open our next restaurant nearby
[4:51:40 PM ET] nearby
[4:51:40 PM ET] as
[4:51:40 PM ET] well
[4:51:41 PM ET] our
[4:51:41 PM ET] first
[4:51:42 PM ET] location in
[4:51:42 PM ET] Mexico
[4:51:43 PM ET] City
[4:51:43 PM ET] in
[4:51:44 PM ET] as well as our first location in mexico city in twenty twenty seven
[4:51:45 PM ET] 2027.
[4:51:46 PM ET] He entered
[4:51:46 PM ET] Saudi
[4:51:47 PM ET] Arabia,
[4:51:47 PM ET] this
[4:51:47 PM ET] quarter
[4:51:47 PM ET] in
[4:51:48 PM ET] partnership
[4:51:48 PM ET] with
[4:51:48 PM ET] Al
[4:51:49 PM ET] Al-Shia
[4:51:49 PM ET] entered saudi arabia this quarter in partnership with al shia group
[4:51:50 PM ET] Group and
[4:51:50 PM ET] we
[4:51:50 PM ET] were
[4:51:50 PM ET] thrilled
[4:51:50 PM ET] to
[4:51:51 PM ET] see
[4:51:51 PM ET] new
[4:51:51 PM ET] opening
[4:51:52 PM ET] volumes
[4:51:52 PM ET] set
[4:51:52 PM ET] yet
[4:51:53 PM ET] another
[4:51:54 PM ET] and we were thrilled to see new opening volumes set yet another record
[4:51:54 PM ET] record
[4:51:54 PM ET] and
[4:51:54 PM ET] build
[4:51:54 PM ET] on
[4:51:54 PM ET] the
[4:51:55 PM ET] demand
[4:51:55 PM ET] we have
[4:51:55 PM ET] seen
[4:51:56 PM ET] across
[4:51:56 PM ET] the
[4:51:56 PM ET] Middle
[4:51:56 PM ET] East.
[4:51:57 PM ET] and build on the demand we have seen across the middle east
[4:51:57 PM ET] East.
[4:51:58 PM ET] We
[4:51:58 PM ET] open
[4:51:59 PM ET] new
[4:51:59 PM ET] restaurants in
[4:51:59 PM ET] the
[4:52:00 PM ET] UAE
[4:52:00 PM ET] and
[4:52:01 PM ET] we also opened new restaurants in the uae and kuwait
[4:52:01 PM ET] Kuwait.
[4:52:02 PM ET] bring
[4:52:02 PM ET] your
[4:52:02 PM ET] total
[4:52:02 PM ET] across
[4:52:03 PM ET] the
[4:52:03 PM ET] region
[4:52:03 PM ET] to
[4:52:04 PM ET] 18
[4:52:04 PM ET] rust
[4:52:05 PM ET] bringing our total across the region to eighteen restaurants
[4:52:05 PM ET] restaurants.
[4:52:06 PM ET] However
[4:52:06 PM ET] long
[4:52:06 PM ET] term
[4:52:07 PM ET] outlook
[4:52:07 PM ET] in
[4:52:07 PM ET] the
[4:52:07 PM ET] region
[4:52:08 PM ET] remains
[4:52:09 PM ET] our long term outlook in the region remains unchanged
[4:52:09 PM ET] unchanged.
[4:52:09 PM ET] and we
[4:52:09 PM ET] continue
[4:52:09 PM ET] to
[4:52:10 PM ET] believe
[4:52:10 PM ET] it
[4:52:10 PM ET] can
[4:52:10 PM ET] support
[4:52:11 PM ET] hundreds
[4:52:11 PM ET] of
[4:52:11 PM ET] Chipotle
[4:52:12 PM ET] restaurants
[4:52:12 PM ET] over
[4:52:13 PM ET] and we continue to believe it can support hundreds of chipotle restaurants over time
[4:52:13 PM ET] time.
[4:52:15 PM ET] additionally
[4:52:15 PM ET] Additionally,
[4:52:15 PM ET] our
[4:52:15 PM ET] first
[4:52:16 PM ET] restaurant
[4:52:16 PM ET] in
[4:52:16 PM ET] South
[4:52:17 PM ET] Korea over the last
[4:52:17 PM ET] opened
[4:52:17 PM ET] month
[4:52:18 PM ET] near
[4:52:18 PM ET] Gongum
[4:52:19 PM ET] our first restaurant in south korea opened last month near gangnam station
[4:52:19 PM ET] Station.
[4:52:20 PM ET] We're line
[4:52:20 PM ET] stretched
[4:52:21 PM ET] several
[4:52:21 PM ET] city
[4:52:21 PM ET] blocks
[4:52:21 PM ET] a
[4:52:21 PM ET] for
[4:52:22 PM ET] where lines stretched several city blocks for weeks
[4:52:22 PM ET] weeks
[4:52:22 PM ET] and
[4:52:22 PM ET] average
[4:52:23 PM ET] daily
[4:52:23 PM ET] sales
[4:52:24 PM ET] trends
[4:52:24 PM ET] belt
[4:52:24 PM ET] throughout
[4:52:24 PM ET] the
[4:52:25 PM ET] and average daily sales trends built throughout the quarter
[4:52:26 PM ET] quarter.
[4:52:26 PM ET] You
[4:52:26 PM ET] In
[4:52:26 PM ET] in fact
[4:52:27 PM ET] fact,
[4:52:27 PM ET] earlier
[4:52:28 PM ET] today,
[4:52:28 PM ET] we opened the
[4:52:28 PM ET] our
[4:52:28 PM ET] second
[4:52:29 PM ET] location
[4:52:29 PM ET] in
[4:52:30 PM ET] earlier today we opened our second location in seoul
[4:52:30 PM ET] Soul
[4:52:30 PM ET] and
[4:52:30 PM ET] have
[4:52:30 PM ET] a
[4:52:31 PM ET] additional
[4:52:31 PM ET] restaurants and
[4:52:32 PM ET] in
[4:52:32 PM ET] development as
[4:52:32 PM ET] we
[4:52:32 PM ET] build
[4:52:32 PM ET] the
[4:52:33 PM ET] business
[4:52:33 PM ET] with
[4:52:33 PM ET] SPC
[4:52:34 PM ET] and have additional restaurants in development as we build the business with sbc group
[4:52:34 PM ET] group.
[4:52:35 PM ET] including
[4:52:35 PM ET] our
[4:52:35 PM ET] planned
[4:52:36 PM ET] opening
[4:52:36 PM ET] and
[4:52:36 PM ET] in
[4:52:36 PM ET] Singapore
[4:52:37 PM ET] next
[4:52:37 PM ET] including our planned opening in singapore next spring
[4:52:38 PM ET] spring.
[4:52:38 PM ET] So
[4:52:38 PM ET] far
[4:52:38 PM ET] in
[4:52:39 PM ET] so far in twenty twenty six
[4:52:39 PM ET] 2026,
[4:52:40 PM ET] eight
[4:52:40 PM ET] restaurants
[4:52:40 PM ET] have
[4:52:41 PM ET] opened
[4:52:41 PM ET] outside
[4:52:41 PM ET] the
[4:52:42 PM ET] U.S. in
[4:52:42 PM ET] and
[4:52:42 PM ET] eight restaurants have opened outside the us and canada
[4:52:43 PM ET] Canada
[4:52:43 PM ET] and the
[4:52:43 PM ET] response
[4:52:44 PM ET] we
[4:52:44 PM ET] are
[4:52:44 PM ET] seeing
[4:52:44 PM ET] across
[4:52:45 PM ET] markets,
[4:52:45 PM ET] reinforces
[4:52:46 PM ET] our
[4:52:46 PM ET] and the response we are seeing across markets reinforces our belief
[4:52:46 PM ET] belief
[4:52:47 PM ET] the
[4:52:47 PM ET] appeal
[4:52:47 PM ET] of
[4:52:48 PM ET] chipotle
[4:52:48 PM ET] is
[4:52:49 PM ET] that the appeal of chipotle is borderless
[4:52:50 PM ET] borderless.
[4:52:50 PM ET] Simmers
[4:52:50 PM ET] around
[4:52:50 PM ET] the
[4:52:51 PM ET] globe,
[4:52:51 PM ET] value
[4:52:52 PM ET] high
[4:52:52 PM ET] quality
[4:52:52 PM ET] food
[4:52:53 PM ET] prepared
[4:52:53 PM ET] fresh
[4:52:53 PM ET] with
[4:52:54 PM ET] real and
[4:52:54 PM ET] consumers around the globe value high quality food prepared fresh
[4:52:54 PM ET] with real ingredients
[4:52:55 PM ET] ingredients
[4:52:55 PM ET] giving
[4:52:55 PM ET] us
[4:52:56 PM ET] confidence
[4:52:56 PM ET] that
[4:52:56 PM ET] our
[4:52:56 PM ET] model
[4:52:56 PM ET] can
[4:52:57 PM ET] resonate
[4:52:57 PM ET] well
[4:52:57 PM ET] around
[4:52:58 PM ET] the
[4:52:58 PM ET] giving us confidence that our model can resonate well around the globe
[4:52:59 PM ET] globe.
[4:52:59 PM ET] in
[4:53:00 PM ET] 2020
[4:53:00 PM ET] in twenty twenty seven
[4:53:01 PM ET] we
[4:53:01 PM ET] expect
[4:53:01 PM ET] to
[4:53:01 PM ET] open
[4:53:02 PM ET] around
[4:53:02 PM ET] 15 to
[4:53:03 PM ET] 25
[4:53:03 PM ET] restrictions
[4:53:04 PM ET] outside
[4:53:04 PM ET] the
[4:53:04 PM ET] US and
[4:53:05 PM ET] we expect to open around fifteen to twenty five restaurants outside the us and canada
[4:53:06 PM ET] in
[4:53:06 PM ET] Canada.
[4:53:07 PM ET] The
[4:53:07 PM ET] close.
[4:53:08 PM ET] are
[4:53:08 PM ET] third
[4:53:08 PM ET] quarter
[4:53:09 PM ET] results,
[4:53:09 PM ET] reinforce
[4:53:09 PM ET] that
[4:53:10 PM ET] our
[4:53:10 PM ET] rest and
[4:53:10 PM ET] to close our third quarter results
[4:53:10 PM ET] people
[4:53:10 PM ET] pee for
[4:53:10 PM ET] growth
[4:53:11 PM ET] reinforce that our recipe for growth strategy
[4:53:12 PM ET] strategy
[4:53:12 PM ET] is
[4:53:12 PM ET] gaining
[4:53:12 PM ET] traction
[4:53:13 PM ET] and
[4:53:13 PM ET] creating
[4:53:13 PM ET] multiple
[4:53:14 PM ET] levers
[4:53:14 PM ET] to
[4:53:14 PM ET] navigate
[4:53:14 PM ET] a
[4:53:15 PM ET] dynamic
[4:53:16 PM ET] is gaining traction and creating multiple levers to navigate a dynamic industry
[4:53:16 PM ET] industry
[4:53:16 PM ET] and
[4:53:17 PM ET] comsumer
[4:53:17 PM ET] and consumer environment
[4:53:18 PM ET] environment
[4:53:18 PM ET] and
[4:53:18 PM ET] Drive
[4:53:19 PM ET] Sustained
[4:53:19 PM ET] and drive sustained growth
[4:53:20 PM ET] growth.
[4:53:21 PM ET] or
[4:53:21 PM ET] and
[4:53:21 PM ET] proving
[4:53:21 PM ET] rush on
[4:53:22 PM ET] x
[4:53:22 PM ET] we are improving restaurant execution
[4:53:23 PM ET] Execution,
[4:53:23 PM ET] through
[4:53:24 PM ET] throughput
[4:53:24 PM ET] putt
[4:53:24 PM ET] and
[4:53:24 PM ET] host the
[4:53:25 PM ET] and hospitality
[4:53:26 PM ET] We
[4:53:26 PM ET] our
[4:53:26 PM ET] are
[4:53:26 PM ET] scaling
[4:53:27 PM ET] tech
[4:53:27 PM ET] and
[4:53:28 PM ET] AI,
[4:53:28 PM ET] well
[4:53:28 PM ET] building
[4:53:28 PM ET] and
[4:53:29 PM ET] more
[4:53:29 PM ET] were
[4:53:29 PM ET] engaging
[4:53:29 PM ET] we
[4:53:30 PM ET] we are scaling technology and ai while building a more engaging
[4:53:30 PM ET] Zico
[4:53:31 PM ET] rewards ecosystem
[4:53:31 PM ET] system.
[4:53:32 PM ET] Cell
[4:53:33 PM ET] Rating, Man,
[4:53:33 PM ET] Many
[4:53:34 PM ET] and
[4:53:34 PM ET] a
[4:53:34 PM ET] Evolving,
[4:53:34 PM ET] our
[4:53:35 PM ET] motting
[4:53:35 PM ET] to
[4:53:35 PM ET] keep
[4:53:36 PM ET] Chipota,
[4:53:36 PM ET] a
[4:53:36 PM ET] relevant
[4:53:36 PM ET] and
[4:53:37 PM ET] top
[4:53:37 PM ET] of
[4:53:37 PM ET] we are accelerating menu innovation and evolving our marketing to keep chipotle relevant
[4:53:37 PM ET] and top of mind
[4:53:38 PM ET] mind.
[4:53:39 PM ET] Also
[4:53:39 PM ET] building
[4:53:39 PM ET] new
[4:53:40 PM ET] accases
[4:53:40 PM ET] through
[4:53:40 PM ET] catering
[4:53:41 PM ET] and
[4:53:41 PM ET] family
[4:53:42 PM ET] we are also building new occasions through catering and family meals
[4:53:43 PM ET] melt.
[4:53:43 PM ET] to
[4:53:44 PM ET] develop
[4:53:44 PM ET] deep
[4:53:44 PM ET] Pipeline
[4:53:45 PM ET] of
[4:53:45 PM ET] we continue to develop a deep pipeline of talent
[4:53:45 PM ET] Towat,
[4:53:45 PM ET] it
[4:53:46 PM ET] our
[4:53:46 PM ET] and
[4:53:47 PM ET] Global
[4:53:47 PM ET] with
[4:53:48 PM ET] this
[4:53:48 PM ET] and are expanding globally with discipline
[4:53:49 PM ET] discipline.
[4:53:50 PM ET] we
[4:53:50 PM ET] have
[4:53:50 PM ET] to
[4:53:51 PM ET] write
[4:53:51 PM ET] strategy,
[4:53:51 PM ET] a
[4:53:52 PM ET] write
[4:53:52 PM ET] leaders
[4:53:52 PM ET] shit
[4:53:53 PM ET] i'm confident we have the right strategy the right leadership team
[4:53:53 PM ET] said,
[4:53:53 PM ET] team
[4:53:53 PM ET] and
[4:53:54 PM ET] a
[4:53:54 PM ET] it
[4:53:54 PM ET] again
[4:53:54 PM ET] it
[4:53:55 PM ET] opportunity
[4:53:55 PM ET] a
[4:53:55 PM ET] as
[4:53:55 PM ET] we
[4:53:55 PM ET] can
[4:53:56 PM ET] you
[4:53:56 PM ET] to
[4:53:56 PM ET] a be
[4:53:56 PM ET] bill
[4:53:57 PM ET] chimpal
[4:53:57 PM ET] and a significant opportunity ahead as we continue to build chipotle
[4:53:57 PM ET] a
[4:53:57 PM ET] and to and
[4:53:58 PM ET] i caught
[4:53:58 PM ET] it
[4:53:58 PM ET] Global
[4:53:59 PM ET] into an iconic global brand
[4:53:59 PM ET] Brain.
[4:54:00 PM ET] I'll
[4:54:01 PM ET] turn it
[4:54:01 PM ET] over
[4:54:01 PM ET] to
[4:54:02 PM ET] with that i'll turn it over to adam
[4:54:03 PM ET] at
[4:54:03 PM ET] Add.
[4:54:04 PM ET] get
[4:54:04 PM ET] to
[4:54:04 PM ET] AddTourney,
[4:54:05 PM ET] everyone,
[4:54:05 PM ET] thanks scott and good afternoon everyone
[4:54:06 PM ET] Third
[4:54:07 PM ET] all, sure, they
[4:54:07 PM ET] the
[4:54:07 PM ET] you
[4:54:08 PM ET] of
[4:54:08 PM ET] our
[4:54:09 PM ET] Sepe for
[4:54:09 PM ET] gos
[4:54:10 PM ET] strategy as
[4:54:10 PM ET] our third quarter results reflect the continued traction of our recipe for growth strategy
[4:54:10 PM ET] well
[4:54:10 PM ET] our
[4:54:11 PM ET] Bill
[4:54:11 PM ET] Ede
[4:54:11 PM ET] us
[4:54:12 PM ET] Quickly, and
[4:54:12 PM ET] to
[4:54:13 PM ET] size
[4:54:13 PM ET] ofly with
[4:54:13 PM ET] we
[4:54:13 PM ET] see
[4:54:14 PM ET] shit to
[4:54:14 PM ET] as well as our ability to respond quickly and decisively when we see shifts in demand
[4:54:14 PM ET] me
[4:54:16 PM ET] may
[4:54:16 PM ET] -
[4:54:17 PM ET] in the third quarter
[4:54:17 PM ET] and Kwater
[4:54:17 PM ET] Sails
[4:54:17 PM ET] Elsa,
[4:54:17 PM ET] name him
[4:54:18 PM ET] point,
[4:54:18 PM ET] want to express
[4:54:19 PM ET] se.
[4:54:19 PM ET] to three
[4:54:19 PM ET] point
[4:54:20 PM ET] three
[4:54:20 PM ET] Billia
[4:54:21 PM ET] dollars,
[4:54:21 PM ET] including
[4:54:21 PM ET] to
[4:54:21 PM ET] a
[4:54:21 PM ET] can hear
[4:54:22 PM ET] sales grew nine point six percent to three point three billion dollars
[4:54:22 PM ET] Reshron
[4:54:22 PM ET] on
[4:54:22 PM ET] sales,
[4:54:23 PM ET] increase
[4:54:23 PM ET] to 2
[4:54:23 PM ET] two
[4:54:24 PM ET] point
[4:54:24 PM ET] One
[4:54:24 PM ET] first
[4:54:24 PM ET] including a comparable restaurant sales increase of two point one percent
[4:54:25 PM ET] and
[4:54:25 PM ET] a
[4:54:25 PM ET] possit
[4:54:26 PM ET] of trends
[4:54:26 PM ET] abshing
[4:54:27 PM ET] and a positive transaction comp
[4:54:27 PM ET] comes a
[4:54:27 PM ET] zero
[4:54:27 PM ET] point
[4:54:27 PM ET] a
[4:54:28 PM ET] eight
[4:54:28 PM ET] per
[4:54:28 PM ET] person.
[4:54:28 PM ET] of zero point eight percent
[4:54:29 PM ET] price.
[4:54:30 PM ET] of
[4:54:30 PM ET] one
[4:54:30 PM ET] point,
[4:54:30 PM ET] three,
[4:54:30 PM ET] a
[4:54:31 PM ET] Bali and
[4:54:31 PM ET] Dows,
[4:54:32 PM ET] with
[4:54:32 PM ET] 38
[4:54:32 PM ET] Point
[4:54:32 PM ET] a
[4:54:33 PM ET] of
[4:54:33 PM ET] digital sales of one point three billion dollars were
[4:54:33 PM ET] tovell
[4:54:34 PM ET] thirty eight point eight percent of total sales
[4:54:34 PM ET] sales
[4:54:34 PM ET] compared
[4:54:34 PM ET] the
[4:54:34 PM ET] to
[4:54:35 PM ET] 36
[4:54:35 PM ET] six
[4:54:35 PM ET] points,
[4:54:35 PM ET] seven
[4:54:36 PM ET] percent and
[4:54:36 PM ET] in the
[4:54:36 PM ET] prior
[4:54:37 PM ET] compared to thirty six point seven percent in the prior year
[4:54:37 PM ET] e-
[4:54:39 PM ET] to Pron
[4:54:39 PM ET] Lev
[4:54:39 PM ET] William
[4:54:39 PM ET] Marjion with
[4:54:40 PM ET] was
[4:54:40 PM ET] twenty
[4:54:40 PM ET] to three
[4:54:40 PM ET] point
[4:54:41 PM ET] restaurant level margin was twenty three point three percent
[4:54:41 PM ET] at the
[4:54:42 PM ET] line of
[4:54:42 PM ET] a
[4:54:42 PM ET] hundred
[4:54:43 PM ET] in
[4:54:43 PM ET] I
[4:54:43 PM ET] basis
[4:54:43 PM ET] points
[4:54:44 PM ET] of
[4:54:44 PM ET] a
[4:54:44 PM ET] a decline of one hundred and twenty basis points year over year
[4:54:45 PM ET] the
[4:54:45 PM ET] is
[4:54:46 PM ET] was to it,
[4:54:46 PM ET] Di
[4:54:46 PM ET] Luddy
[4:54:47 PM ET] for
[4:54:47 PM ET] I
[4:54:47 PM ET] find
[4:54:48 PM ET] seven
[4:54:48 PM ET] adjusted diluted earnings per share was zero two seven dollars
[4:54:48 PM ET] sounds. I
[4:54:49 PM ET] I'm
[4:54:49 PM ET] seven
[4:54:49 PM ET] per
[4:54:50 PM ET] percent, versus
[4:54:50 PM ET] I see
[4:54:51 PM ET] down seven percent versus last year
[4:54:51 PM ET] year.
[4:54:51 PM ET] and
[4:54:52 PM ET] Leo
[4:54:52 PM ET] upin 80 for
[4:54:53 PM ET] can come
[4:54:53 PM ET] by ALL
[4:54:54 PM ET] for
[4:54:54 PM ET] dress
[4:54:54 PM ET] and
[4:54:55 PM ET] five, her
[4:54:55 PM ET] Operate
[4:54:56 PM ET] we opened eighty four company owned restaurants and five partner operated restaurants
[4:54:56 PM ET] Restrust.
[4:54:57 PM ET] Strasins,
[4:54:57 PM ET] the Suri,
[4:54:58 PM ET] new
[4:54:58 PM ET] mark us
[4:54:58 PM ET] expanding into three new markets
[4:54:58 PM ET] to
[4:54:59 PM ET] mexico
[4:54:59 PM ET] saw
[4:54:59 PM ET] O
[4:55:00 PM ET] radias, a
[4:55:00 PM ET] sell for
[4:55:01 PM ET] saudi arabia and south korea
[4:55:02 PM ET] Christ
[4:55:03 PM ET] South
[4:55:03 PM ET] Coyle Why
[4:55:04 PM ET] all
[4:55:06 PM ET] we entered the quarter with strong sales trends
[4:55:06 PM ET] what I was see for growth and
[4:55:06 PM ET] supported by our recipe for growth initiatives
[4:55:07 PM ET] a
[4:55:07 PM ET] s.
[4:55:08 PM ET] like
[4:55:09 PM ET] than
[4:55:09 PM ET] they
[4:55:10 PM ET] I
[4:55:10 PM ET] so.
[4:55:10 PM ET] however industry headwinds beginning in mid july slowed our momentum
[4:55:11 PM ET] all
[4:55:11 PM ET] this.
[4:55:11 PM ET] was
[4:55:12 PM ET] to
[4:55:13 PM ET] Sou
[4:55:13 PM ET] a
[4:55:14 PM ET] House has
[4:55:15 PM ET] we quickly acted to reengage our guests with promotional offers
[4:55:16 PM ET] ours I have
[4:55:17 PM ET] us.
[4:55:17 PM ET] sound
[4:55:17 PM ET] and i am proud of how thoughtfully our teams responded
[4:55:20 PM ET] to
[4:55:20 PM ET] all I have to
[4:55:20 PM ET] we were pleased to see trends normalize by late august
[4:55:20 PM ET] a lot
[4:55:22 PM ET] this is
[4:55:22 PM ET] See,
[4:55:23 PM ET] and we saw further improvement in september
[4:55:23 PM ET] I
[4:55:24 PM ET] to
[4:55:25 PM ET] after the launch of pollo asada
[4:55:27 PM ET] ISSES was.
[4:55:28 PM ET] and chili lime chips as well as our one hundred creators campaign
[4:55:29 PM ET] a
[4:55:31 PM ET] has
[4:55:32 PM ET] october trends have softened consistent with the broader industry
[4:55:37 PM ET] however we continue to see positive underlying engagement with our menu innovation and activation
[4:55:38 PM ET] Suss.
[4:55:38 PM ET] a
[4:55:41 PM ET] How
[4:55:42 PM ET] to
[4:55:42 PM ET] we look forward to building momentum with the launch of smoked brisket next week
[4:55:45 PM ET] Sister.
[4:55:46 PM ET] a guest lose a house to
[4:55:47 PM ET] twenty
[4:55:47 PM ET] it's
[4:55:47 PM ET] and we are confident we will deliver on our guidance of low single digit comps for twenty twenty six
[4:55:51 PM ET] How do I
[4:55:51 PM ET] does
[4:55:52 PM ET] on pricing the impact in q3 was around
[4:55:53 PM ET] two point seven percent
[4:55:55 PM ET] Syncs.
[4:55:56 PM ET] say
[4:55:57 PM ET] we anticipate it will increase to about three percent in q4
[4:55:59 PM ET] System.
[4:56:01 PM ET] bringing total pricing in twenty twenty six to around two percent
[4:56:01 PM ET] Sus
[4:56:02 PM ET] As a
[4:56:02 PM ET] a
[4:56:03 PM ET] as we look ahead to twenty twenty seven
[4:56:04 PM ET] Having
[4:56:07 PM ET] Sasse
[4:56:08 PM ET] we currently anticipate overall inflation to remain in the low to mid single digit range
[4:56:09 PM ET] S.
[4:56:10 PM ET] As
[4:56:10 PM ET] Ss.
[4:56:11 PM ET] to say
[4:56:13 PM ET] and expect to continue managing that inflation over the long run with our new approach
[4:56:14 PM ET] to menu pricing
[4:56:14 PM ET] As I
[4:56:18 PM ET] The
[4:56:19 PM ET] Has
[4:56:19 PM ET] before i walk through the p and l i want to take a moment to highlight the
[4:56:19 PM ET] Sis.
[4:56:21 PM ET] Sisters.
[4:56:23 PM ET] behind our promotional strategy and how we approach our overall marketing investment
[4:56:24 PM ET] Sassy sus
[4:56:28 PM ET] promotions such as our buy one get one activations
[4:56:28 PM ET] S
[4:56:29 PM ET] S.
[4:56:30 PM ET] and protein limited time offers
[4:56:31 PM ET] Sister
[4:56:33 PM ET] are designed to connect with our guests in a culturally relevant way
[4:56:34 PM ET] Help
[4:56:34 PM ET] a
[4:56:37 PM ET] Tery
[4:56:37 PM ET] they do more than drive a single day or a single quarter of sales
[4:56:37 PM ET] Has
[4:56:39 PM ET] How
[4:56:40 PM ET] they bring new and lapsed guests into our restaurants
[4:56:42 PM ET] See.
[4:56:43 PM ET] increase frequency among existing guests
[4:56:44 PM ET] and keep chipotle top of mind
[4:56:46 PM ET] As a
[4:56:46 PM ET] it
[4:56:47 PM ET] as we shared earlier this year
[4:56:49 PM ET] our protein limited time offers
[4:56:53 PM ET] typically generate a few hundred basis points of transaction lift
[4:56:54 PM ET] over the life of the promotion
[4:56:55 PM ET] As a
[4:56:56 PM ET] Has
[4:56:57 PM ET] as
[4:56:58 PM ET] and we generally sustain part of that lift longer term
[4:57:01 PM ET] as
[4:57:01 PM ET] as many new guests continue to dine with us after the offer ends
[4:57:02 PM ET] As
[4:57:03 PM ET] Has
[4:57:04 PM ET] Happy to
[4:57:05 PM ET] our buy one get one activations have followed a similar pattern
[4:57:10 PM ET] and the benefit is amplified when we find opportunities to connect with a cultural moment
[4:57:10 PM ET] Sister.
[4:57:13 PM ET] Her
[4:57:13 PM ET] System.
[4:57:14 PM ET] it is this stickiness that makes these investments so productive over time
[4:57:14 PM ET] Sass.
[4:57:15 PM ET] Sussex.
[4:57:18 PM ET] Has
[4:57:19 PM ET] Self
[4:57:19 PM ET] we evaluate marketing and promote
[4:57:19 PM ET] promotional investments through a return focused lens
[4:57:22 PM ET] Has
[4:57:22 PM ET] Sass.
[4:57:24 PM ET] System.
[4:57:25 PM ET] when we have great ideas that deliver attractive returns we will lean in
[4:57:25 PM ET] as we did this quarter
[4:57:27 PM ET] Sass.
[4:57:30 PM ET] Setce.
[4:57:30 PM ET] this discipline gives us the flexibility to respond quickly to shifts in demand
[4:57:33 PM ET] Soul.
[4:57:33 PM ET] while protecting the long term strength of our economic model
[4:57:38 PM ET] with that i will go through the key p and l line items beginning with cost of sales
[4:57:39 PM ET] Has
[4:57:40 PM ET] Hester
[4:57:42 PM ET] Has.
[4:57:43 PM ET] to sleep.
[4:57:44 PM ET] cost of sales in the quarter was twenty nine point five percent
[4:57:45 PM ET] a decrease of about fifty basis points from last year
[4:57:46 PM ET] His.
[4:57:47 PM ET] His sister
[4:57:50 PM ET] the benefits of menu pricing and tariff relief were more than enough to offset inflation
[4:57:51 PM ET] System.
[4:57:53 PM ET] which was primarily driven by beef and freight
[4:57:54 PM ET] Has
[4:57:58 PM ET] for q4 we anticipate cost of sales to be around thirty point five percent
[4:58:00 PM ET] See,
[4:58:01 PM ET] primarily due to the impact of our smoked brisket limited time offer
[4:58:01 PM ET] Tesla.
[4:58:05 PM ET] on an underlying basis this puts cost of sales inflation
[4:58:07 PM ET] at around three percent for q4
[4:58:07 PM ET] Has.
[4:58:08 PM ET] Ha!
[4:58:09 PM ET] How
[4:58:12 PM ET] labor costs for the quarter were twenty five point seven percent
[4:58:14 PM ET] Syst
[4:58:15 PM ET] an increase of about fifty basis points from last year
[4:58:15 PM ET] Size
[4:58:16 PM ET] Sass.
[4:58:17 PM ET] the increase was driven by sales volumes
[4:58:18 PM ET] wage inflation
[4:58:19 PM ET] Self.
[4:58:22 PM ET] and higher labor usage in support of promotional activity
[4:58:22 PM ET] As
[4:58:26 PM ET] in addition we recognize some discrete costs related to insurance
[4:58:26 PM ET] Sergeous
[4:58:27 PM ET] I
[4:58:30 PM ET] these factors were partially offset by the benefit of menu price increases
[4:58:30 PM ET] Set.
[4:58:35 PM ET] excluding these discrete impacts we saw underlying inflation in the lows
[4:58:36 PM ET] single digit range
[4:58:36 PM ET] Sassy size!
[4:58:38 PM ET] and we expect this to continue into q4
[4:58:41 PM ET] with labor costs around twenty six percent
[4:58:44 PM ET] Systems.
[4:58:46 PM ET] other operating costs for the quarter were sixteen percent
[4:58:48 PM ET] an increase of about one hundred basis points from last year
[4:58:49 PM ET] Set.
[4:58:50 PM ET] primarily driven by higher marketing
[4:58:50 PM ET] Says!
[4:58:51 PM ET] delivery mix
[4:58:52 PM ET] Stas.
[4:58:53 PM ET] inflation across several items
[4:58:55 PM ET] including utilities and maintenance
[4:58:58 PM ET] CSC.
[4:59:00 PM ET] Happy
[4:59:00 PM ET] marketing costs were in the mid three percent range during the quarter
[4:59:02 PM ET] an increase of about forty basis points from last year
[4:59:07 PM ET] as we leaned into promotional activity to reengage guests
[4:59:08 PM ET] following the industry headwinds mid quarter
[4:59:08 PM ET] Sisters.
[4:59:10 PM ET] SCESCESS
[4:59:11 PM ET] in support of the brisket campaign in q4
[4:59:14 PM ET] we expect marketing cost to land in the high three percent range
[4:59:17 PM ET] bringing other operating costs to around sixteen percent
[4:59:22 PM ET] altogether this will put q4 margins at just under twenty two percent
[4:59:26 PM ET] which is roughly one hundred and fifty basis points lower than last year
[4:59:31 PM ET] after normalizing for a seventy basis point gift card breakage benefit in the prior year
[4:59:31 PM ET] Sels.
[4:59:33 PM ET] and the shift in marketing spend to support brisket
[4:59:36 PM ET] the decline is driven by sales volume
[4:59:37 PM ET] Sex
[4:59:41 PM ET] with pricing now in line with inflation our unit economic model remains intact
[4:59:45 PM ET] and we expect margins to expand as we drive additional transaction growth
[4:59:46 PM ET] Set.
[4:59:50 PM ET] g and a for the quarter was one hundred and eighty five million dollars on a gaap basis
[4:59:51 PM ET] Syst.
[4:59:51 PM ET] Syst.
[4:59:53 PM ET] or one hundred and eighty four million dollars on a non gaap basis
[4:59:58 PM ET] excluding retention equity awards granted to key executives
[4:59:58 PM ET] in august of twenty twenty four
[5:00:01 PM ET] His
[5:00:03 PM ET] g and a included one hundred and fifty five million dollars of underlying g and a
[5:00:07 PM ET] dollars twenty nine million of non cash stock compensation
[5:00:07 PM ET] Sister.
[5:00:10 PM ET] Tess.
[5:00:12 PM ET] offset by half a million dollars related to lower bonus accruals and payroll taxes
[5:00:12 PM ET] SES.
[5:00:17 PM ET] for q4 we expect g and a to be around one
[5:00:17 PM ET] hundred and eighty nine million dollars on a non gaap basis
[5:00:18 PM ET] which will include
[5:00:21 PM ET] hundred and fifty six million dollars in underlying g and a
[5:00:23 PM ET] Sister.
[5:00:26 PM ET] dollars thirty one million in non cash stock compensation although this amount could move
[5:00:29 PM ET] up or down based on our actual performance
[5:00:32 PM ET] and two million dollars in higher bonus accruals and payroll taxes
[5:00:37 PM ET] as we continue to scale our g and a growth is predominantly driven by
[5:00:37 PM ET] Sales.
[5:00:39 PM ET] field leadership roles supporting new restaurants
[5:00:40 PM ET] Self-structure.
[5:00:44 PM ET] and we have leveraged g and a over the past several years thanks to our disciplined approach
[5:00:46 PM ET] to investments in technology and other areas
[5:00:46 PM ET] She's a very good
[5:00:47 PM ET] not
[5:00:51 PM ET] in twenty twenty seven and beyond we intend to fuel our
[5:00:51 PM ET] Seven yeah
[5:00:52 PM ET] for growth strategy while also leveraging g and a
[5:00:53 PM ET] no strategy but also leveraging a
[5:00:57 PM ET] depreciation for the quarter was one hundred and three million dollars or three point one percent of
[5:00:58 PM ET] sales
[5:00:59 PM ET] Yeah.
[5:01:00 PM ET] it
[5:01:01 PM ET] yeah.
[5:01:02 PM ET] and in q4 we expect it to remain in the low three percent range
[5:01:02 PM ET] yeah, yeah.
[5:01:03 PM ET] million.
[5:01:04 PM ET] tax rate
[5:01:04 PM ET] for
[5:01:05 PM ET] was
[5:01:05 PM ET] but I think it's a good
[5:01:06 PM ET] say
[5:01:07 PM ET] percent, I
[5:01:07 PM ET] our effective tax rate for q3 was twenty five point
[5:01:09 PM ET] six percent on a gaap and non gaap basis
[5:01:10 PM ET] I think that's the same thing.
[5:01:11 PM ET] yeah,
[5:01:11 PM ET] yeah,
[5:01:12 PM ET] yeah,
[5:01:12 PM ET] that I think it's
[5:01:12 PM ET] realized that
[5:01:12 PM ET] a little bit of a matter of
[5:01:13 PM ET] yeah,
[5:01:13 PM ET] that.
[5:01:14 PM ET] yeah, yeah,
[5:01:14 PM ET] for fiscal twenty twenty six we continue to expect
[5:01:14 PM ET] yeah,
[5:01:15 PM ET] it,
[5:01:16 PM ET] our underlying effective tax rate to be in the twenty four percent to twenty six percent range
[5:01:17 PM ET] yeah, yeah,
[5:01:17 PM ET] yeah,
[5:01:19 PM ET] they don't say that.
[5:01:19 PM ET] though it may vary based on discrete items
[5:01:20 PM ET] items.
[5:01:21 PM ET] shape the
[5:01:22 PM ET] remained
[5:01:22 PM ET] Amazon
[5:01:22 PM ET] as
[5:01:22 PM ET] we
[5:01:22 PM ET] ended
[5:01:22 PM ET] the
[5:01:24 PM ET] our balance sheet remains strong as we ended the quarter with one billion dollars in
[5:01:27 PM ET] cash restricted cash and investments and no debt
[5:01:29 PM ET] Yeah.
[5:01:29 PM ET] uh
[5:01:29 PM ET] Uh
[5:01:32 PM ET] share repurchases are an important part of our capital allocation
[5:01:34 PM ET] program and a meaningful way to return value to shareholders
[5:01:35 PM ET] Uh yeah,
[5:01:35 PM ET] is.
[5:01:35 PM ET] yeah.
[5:01:38 PM ET] Yay
[5:01:39 PM ET] year to date we've repurchased one point four billion dollars at an average price
[5:01:41 PM ET] thirty four point three two dollars
[5:01:45 PM ET] and we have about one point six billion dollars remaining under authorization
[5:01:47 PM ET] Yeah, but we
[5:01:50 PM ET] during the quarter there was a period where we were unable to repurchase our stock
[5:01:55 PM ET] however we believe our shares are undervalued and we look forward to returning to the market
[5:01:57 PM ET] as soon as the earnings blackout lifts
[5:02:02 PM ET] to close this quarter demonstrated the strength of our recipe
[5:02:06 PM ET] growth strategy and our ability to respond quickly and effectively when we see shifts in demand
[5:02:07 PM ET] He was a little bit of a
[5:02:07 PM ET] a
[5:02:09 PM ET] I
[5:02:09 PM ET] few brands can invest in the highest quality ingredients
[5:02:09 PM ET] quality
[5:02:10 PM ET] there.
[5:02:10 PM ET] if I can
[5:02:10 PM ET] a good idea.
[5:02:14 PM ET] offer an accessible price point and still deliver industry leading economics
[5:02:19 PM ET] that unique model gives us the flexibility to invest behind our guests
[5:02:20 PM ET] while protecting the long term strength of the business
[5:02:24 PM ET] we are optimistic about closing out twenty twenty six on a strong note
[5:02:27 PM ET] May
[5:02:29 PM ET] and we remain well positioned to continue creating long term value for our guests
[5:02:30 PM ET] our teams and our shareholders
[5:02:31 PM ET] and with that
[5:02:32 PM ET] Yeah, I don't know when I went
[5:02:33 PM ET] can open it up for questions
[5:02:35 PM ET] in other
[5:02:35 PM ET] for questions. Thank you. We
[5:02:35 PM ET] will
[5:02:35 PM ET] now
[5:02:36 PM ET] begin
[5:02:36 PM ET] the
[5:02:37 PM ET] question
[5:02:37 PM ET] and
[5:02:37 PM ET] answer
[5:02:38 PM ET] thank you we will now begin the
[5:02:38 PM ET] session,
[5:02:39 PM ET] to
[5:02:39 PM ET] ask
[5:02:39 PM ET] a
[5:02:39 PM ET] the
[5:02:40 PM ET] you may
[5:02:40 PM ET] press
[5:02:41 PM ET] start
[5:02:41 PM ET] or
[5:02:41 PM ET] are
[5:02:41 PM ET] then
[5:02:41 PM ET] why
[5:02:41 PM ET] you question and answer session
[5:02:42 PM ET] women of the
[5:02:42 PM ET] you are afraid
[5:02:42 PM ET] talk
[5:02:43 PM ET] I think that's the only thing that we
[5:02:45 PM ET] if you're using a
[5:02:46 PM ET] speak or not, it's not
[5:02:46 PM ET] yourself, you can see
[5:02:47 PM ET] he
[5:02:47 PM ET] hands that
[5:02:48 PM ET] be
[5:02:48 PM ET] before pressing
[5:02:48 PM ET] if you're using a speakerphone please pick up your handset
[5:02:48 PM ET] the
[5:02:49 PM ET] keys, if it is a
[5:02:49 PM ET] any
[5:02:50 PM ET] at time
[5:02:50 PM ET] it
[5:02:50 PM ET] require the
[5:02:50 PM ET] has
[5:02:51 PM ET] in
[5:02:51 PM ET] been
[5:02:52 PM ET] it would be a very good
[5:02:52 PM ET] before pressing the keys if at any time your
[5:02:52 PM ET] like to question of the
[5:02:52 PM ET] have a
[5:02:53 PM ET] your
[5:02:53 PM ET] you have to be a very good
[5:02:54 PM ET] question
[5:02:55 PM ET] But he
[5:02:55 PM ET] draw it in the middle of the
[5:02:56 PM ET] them
[5:02:56 PM ET] into.
[5:02:56 PM ET] too.
[5:02:57 PM ET] please, what make
[5:02:57 PM ET] your
[5:02:57 PM ET] it
[5:02:57 PM ET] yourself to one of the things that you have to
[5:02:58 PM ET] one
[5:02:58 PM ET] question.
[5:02:59 PM ET] please press star then two please limit yourself to one question and
[5:02:59 PM ET] and one
[5:02:59 PM ET] follow what you
[5:03:00 PM ET] up.
[5:03:01 PM ET] at this
[5:03:01 PM ET] the same
[5:03:02 PM ET] we will pass from the
[5:03:03 PM ET] voluntarily to
[5:03:03 PM ET] a symbol where we
[5:03:04 PM ET] our
[5:03:04 PM ET] a roster, which
[5:03:04 PM ET] to assemble our roster
[5:03:05 PM ET] it.
[5:03:07 PM ET] This question
[5:03:07 PM ET] comes
[5:03:08 PM ET] from David
[5:03:08 PM ET] Palmer with a
[5:03:09 PM ET] ever
[5:03:09 PM ET] core
[5:03:09 PM ET] I
[5:03:10 PM ET] ass
[5:03:10 PM ET] the first question comes from david palmer with evercore isi
[5:03:10 PM ET] as I?
[5:03:11 PM ET] Please go
[5:03:11 PM ET] please go ahead
[5:03:12 PM ET] ahead.
[5:03:14 PM ET] Thank
[5:03:15 PM ET] you.
[5:03:15 PM ET] Uh
[5:03:15 PM ET] what did
[5:03:16 PM ET] to ask
[5:03:16 PM ET] about
[5:03:18 PM ET] thank you i wanted to ask about this fourth
[5:03:22 PM ET] quarter and what you think it means so far
[5:03:22 PM ET] Uh it's you know
[5:03:22 PM ET] that
[5:03:23 PM ET] this this quarter
[5:03:23 PM ET] was supposed to
[5:03:23 PM ET] I'm not
[5:03:24 PM ET] be
[5:03:24 PM ET] I'm not
[5:03:25 PM ET] quarter
[5:03:25 PM ET] of
[5:03:25 PM ET] a sort
[5:03:25 PM ET] for
[5:03:25 PM ET] i think you know that this quarter was supposed to be a payoff quarter of sorts where
[5:03:26 PM ET] praying was
[5:03:30 PM ET] pricing was ramping through the year you got the new kitchen equipment do you have more
[5:03:34 PM ET] That market
[5:03:34 PM ET] stores with that the marketing improvement the
[5:03:35 PM ET] from me.
[5:03:36 PM ET] Uh
[5:03:37 PM ET] renewed focus on operations that diminishing cyclospora
[5:03:40 PM ET] Or had winds and parasites
[5:03:41 PM ET] and and it was
[5:03:41 PM ET] does uh so
[5:03:42 PM ET] like a little bit of a picture of
[5:03:42 PM ET] headwinds and comparisons and i think there was some expectation
[5:03:42 PM ET] the things that I've
[5:03:46 PM ET] is a very good thing.
[5:03:46 PM ET] out there that the comps would continue to ramp maybe three percent
[5:03:47 PM ET] the microphone
[5:03:47 PM ET] place, and you go in
[5:03:48 PM ET] to be a little bit more than
[5:03:48 PM ET] the third
[5:03:49 PM ET] I don't
[5:03:50 PM ET] plus and you were kind of going there it looked like in the third quarter
[5:03:51 PM ET] I think there's a perception that counted
[5:03:52 PM ET] it down so that it's
[5:03:52 PM ET] far
[5:03:53 PM ET] in
[5:03:53 PM ET] our
[5:03:54 PM ET] i think there's a perception that comps are down so far in october
[5:03:55 PM ET] October
[5:03:55 PM ET] and
[5:03:55 PM ET] so
[5:03:56 PM ET] that was
[5:03:56 PM ET] making
[5:03:57 PM ET] people down
[5:03:57 PM ET] was the same.
[5:03:58 PM ET] and so that's making people jump to conclusions about
[5:03:58 PM ET] the
[5:04:01 PM ET] whether what working was not
[5:04:03 PM ET] time
[5:04:03 PM ET] wondering what's working what's not working
[5:04:06 PM ET] Help
[5:04:06 PM ET] Helen
[5:04:07 PM ET] so perhaps you can comment more specifically on october to date
[5:04:11 PM ET] what's happened and then what's your diagnosis what is what
[5:04:11 PM ET] Um what invocation does it
[5:04:12 PM ET] have for
[5:04:12 PM ET] your
[5:04:13 PM ET] And
[5:04:14 PM ET] what sort
[5:04:14 PM ET] of same strategy is
[5:04:15 PM ET] sales
[5:04:15 PM ET] does this have for your strategy and what
[5:04:16 PM ET] expectation you
[5:04:16 PM ET] might
[5:04:18 PM ET] sort of same store sales expectation you might have for twenty seven and thank you
[5:04:20 PM ET] have
[5:04:20 PM ET] for twenty-seven, and thank you.
[5:04:20 PM ET] Hi,
[5:04:21 PM ET] David, it's got
[5:04:21 PM ET] here. Thank
[5:04:21 PM ET] you for
[5:04:21 PM ET] the
[5:04:22 PM ET] hi david scott here thank you for the question
[5:04:23 PM ET] question.
[5:04:23 PM ET] Um, you
[5:04:23 PM ET] know I'll tell
[5:04:24 PM ET] you
[5:04:25 PM ET] the
[5:04:25 PM ET] what I told
[5:04:26 PM ET] you how we fed
[5:04:26 PM ET] finished
[5:04:27 PM ET] September
[5:04:27 PM ET] up
[5:04:27 PM ET] three point eight
[5:04:27 PM ET] i'll tell you we entered the quarter well i'll tell you we finished september up
[5:04:28 PM ET] three point eight percent
[5:04:28 PM ET] with
[5:04:29 PM ET] a
[5:04:29 PM ET] uh
[5:04:29 PM ET] little
[5:04:30 PM ET] too
[5:04:30 PM ET] very
[5:04:30 PM ET] little
[5:04:30 PM ET] problem with
[5:04:31 PM ET] activity,
[5:04:32 PM ET] which
[5:04:32 PM ET] gave
[5:04:32 PM ET] us
[5:04:32 PM ET] a
[5:04:32 PM ET] lot
[5:04:32 PM ET] of kind
[5:04:33 PM ET] confidence that
[5:04:33 PM ET] we
[5:04:33 PM ET] were
[5:04:33 PM ET] on
[5:04:33 PM ET] with little to very little promo activity
[5:04:33 PM ET] the
[5:04:33 PM ET] right
[5:04:34 PM ET] which gave us a lot of confidence that we're on the right track
[5:04:34 PM ET] track.
[5:04:35 PM ET] Uh we saw
[5:04:35 PM ET] some
[5:04:36 PM ET] broader in the middle of the
[5:04:36 PM ET] industry
[5:04:37 PM ET] pullback at
[5:04:37 PM ET] the first
[5:04:37 PM ET] part of
[5:04:38 PM ET] we saw some broader industry pullback in the first part of october
[5:04:39 PM ET] October.
[5:04:39 PM ET] Uh I'll tell you what I'm
[5:04:40 PM ET] we have a lot of people who are going to be
[5:04:40 PM ET] sent a lot of
[5:04:41 PM ET] three
[5:04:41 PM ET] regained
[5:04:41 PM ET] part of
[5:04:42 PM ET] i'll tell you we have since regained positive transactions
[5:04:43 PM ET] transactions
[5:04:43 PM ET] and
[5:04:43 PM ET] we
[5:04:43 PM ET] have
[5:04:43 PM ET] high
[5:04:44 PM ET] confidence in
[5:04:44 PM ET] the
[5:04:44 PM ET] balance of
[5:04:45 PM ET] the
[5:04:45 PM ET] and we have high confidence in the balance of the quarter
[5:04:46 PM ET] quarter.
[5:04:46 PM ET] Uh, on
[5:04:46 PM ET] the
[5:04:46 PM ET] back
[5:04:47 PM ET] of what
[5:04:47 PM ET] is
[5:04:47 PM ET] an
[5:04:48 PM ET] it next?
[5:04:48 PM ET] extraordinary
[5:04:49 PM ET] product
[5:04:49 PM ET] in
[5:04:49 PM ET] brisket, which
[5:04:50 PM ET] on the back of what is an extraordinary product in brisket which is
[5:04:50 PM ET] is
[5:04:50 PM ET] has
[5:04:50 PM ET] had
[5:04:51 PM ET] incredible
[5:04:52 PM ET] had incredible demand
[5:04:52 PM ET] demand
[5:04:52 PM ET] of
[5:04:52 PM ET] the
[5:04:52 PM ET] past
[5:04:53 PM ET] few
[5:04:53 PM ET] years when
[5:04:53 PM ET] we
[5:04:54 PM ET] offered
[5:04:54 PM ET] over the past few years when we offered it
[5:04:54 PM ET] it.
[5:04:55 PM ET] Uh we
[5:04:55 PM ET] see
[5:04:55 PM ET] no different
[5:04:56 PM ET] difference this
[5:04:56 PM ET] year. We think
[5:04:56 PM ET] the
[5:04:57 PM ET] product's
[5:04:57 PM ET] improved
[5:04:58 PM ET] and
[5:04:58 PM ET] even
[5:04:59 PM ET] better.
[5:04:59 PM ET] And so we
[5:04:59 PM ET] feel
[5:04:59 PM ET] we see no difference this year we think the products improved and even better
[5:04:59 PM ET] very
[5:05:00 PM ET] confident
[5:05:01 PM ET] and so we feel very confident that
[5:05:01 PM ET] that,
[5:05:01 PM ET] I
[5:05:01 PM ET] uh
[5:05:02 PM ET] November and
[5:05:02 PM ET] December set
[5:05:02 PM ET] up
[5:05:02 PM ET] very
[5:05:03 PM ET] well for
[5:05:03 PM ET] november and december set up very well for us
[5:05:04 PM ET] us.
[5:05:04 PM ET] but the
[5:05:04 PM ET] potential
[5:05:05 PM ET] exit
[5:05:05 PM ET] rate on the
[5:05:05 PM ET] ear
[5:05:06 PM ET] of three
[5:05:06 PM ET] to five
[5:05:06 PM ET] four
[5:05:06 PM ET] percent of the earth is a very good
[5:05:07 PM ET] with a potential exit rate on the year of three to four percent
[5:05:07 PM ET] percent
[5:05:08 PM ET] Yeah, no, I had
[5:05:09 PM ET] to that
[5:05:09 PM ET] they just give you a little bit of a
[5:05:09 PM ET] another
[5:05:09 PM ET] an
[5:05:10 PM ET] idea for the
[5:05:10 PM ET] Q
[5:05:11 PM ET] four,
[5:05:11 PM ET] So, take a look at the
[5:05:11 PM ET] him into
[5:05:12 PM ET] account
[5:05:12 PM ET] yeah and i'll add to that david just to give you an idea
[5:05:12 PM ET] the
[5:05:12 PM ET] choppy
[5:05:13 PM ET] start, for
[5:05:13 PM ET] the
[5:05:13 PM ET] for q4 so taking into account the choppy start for the quarter
[5:05:14 PM ET] quarter
[5:05:14 PM ET] ended
[5:05:14 PM ET] the
[5:05:15 PM ET] dynamic
[5:05:15 PM ET] consumer
[5:05:16 PM ET] and the dynamic consumer environment
[5:05:16 PM ET] environment.
[5:05:16 PM ET] we
[5:05:17 PM ET] anticipate
[5:05:17 PM ET] that
[5:05:17 PM ET] our cube is a very important
[5:05:17 PM ET] for
[5:05:17 PM ET] four
[5:05:18 PM ET] from the
[5:05:18 PM ET] console
[5:05:18 PM ET] will actually be a very good
[5:05:18 PM ET] around the
[5:05:19 PM ET] plus
[5:05:19 PM ET] two
[5:05:20 PM ET] 2%.
[5:05:20 PM ET] but
[5:05:20 PM ET] like
[5:05:20 PM ET] Scott
[5:05:21 PM ET] said,
[5:05:21 PM ET] well, I don't know if I can do
[5:05:21 PM ET] have
[5:05:21 PM ET] we anticipate that our q4 comps will actually be around a plus two percent
[5:05:21 PM ET] an
[5:05:21 PM ET] excess of
[5:05:22 PM ET] rate in
[5:05:22 PM ET] that
[5:05:22 PM ET] 3 to
[5:05:23 PM ET] 4 percent
[5:05:23 PM ET] range
[5:05:24 PM ET] And again, that's
[5:05:24 PM ET] going to
[5:05:24 PM ET] be
[5:05:24 PM ET] fueled
[5:05:24 PM ET] by
[5:05:24 PM ET] the
[5:05:25 PM ET] but like scott said we'll have an exit rate in that three percent to four percent range and again that's going
[5:05:25 PM ET] launch of
[5:05:25 PM ET] brisket
[5:05:25 PM ET] next
[5:05:26 PM ET] be fueled by the launch of brisket next week
[5:05:26 PM ET] As well as
[5:05:27 PM ET] several
[5:05:27 PM ET] more
[5:05:27 PM ET] market
[5:05:28 PM ET] initiatives that
[5:05:28 PM ET] we
[5:05:28 PM ET] have
[5:05:29 PM ET] as well as several marketing initiatives that we have planned
[5:05:29 PM ET] You know, we have to do
[5:05:30 PM ET] we're con
[5:05:30 PM ET] gonna
[5:05:30 PM ET] just
[5:05:30 PM ET] really
[5:05:30 PM ET] excuse
[5:05:31 PM ET] really to
[5:05:31 PM ET] continue
[5:05:31 PM ET] to
[5:05:32 PM ET] build upon
[5:05:32 PM ET] this
[5:05:33 PM ET] momentum in
[5:05:34 PM ET] and we're really excited really to continue to build upon this momentum in twenty twenty seven
[5:05:34 PM ET] 2027.
[5:05:34 PM ET] Too early to
[5:05:35 PM ET] give
[5:05:35 PM ET] any kind of a good
[5:05:35 PM ET] guide to this
[5:05:36 PM ET] point
[5:05:36 PM ET] for
[5:05:36 PM ET] calm, so we'll do
[5:05:37 PM ET] that at the
[5:05:37 PM ET] next
[5:05:38 PM ET] too early to give any kind of guide at this point for comps we'll do that at the next call
[5:05:38 PM ET] call.
[5:05:38 PM ET] I think I'm going to go to the next one.
[5:05:38 PM ET] But it's still
[5:05:39 PM ET] early
[5:05:39 PM ET] days with the
[5:05:39 PM ET] many of things that we
[5:05:39 PM ET] we're
[5:05:39 PM ET] our
[5:05:40 PM ET] sales
[5:05:40 PM ET] building
[5:05:41 PM ET] in
[5:05:41 PM ET] initiatives
[5:05:41 PM ET] from a
[5:05:41 PM ET] our
[5:05:41 PM ET] recipe
[5:05:42 PM ET] for
[5:05:42 PM ET] growth
[5:05:43 PM ET] but it's still early days with many of our sales building initiatives from a recipe for growth strategy
[5:05:43 PM ET] So you can do
[5:05:43 PM ET] imagine that we're going to be able to do
[5:05:43 PM ET] when you're
[5:05:44 PM ET] works
[5:05:44 PM ET] excited as
[5:05:44 PM ET] this can be
[5:05:45 PM ET] to
[5:05:45 PM ET] build and
[5:05:45 PM ET] 20
[5:05:46 PM ET] 2027 and
[5:05:47 PM ET] you can imagine that we're excited as this continues to build into twenty twenty seven and beyond
[5:05:47 PM ET] beyond.
[5:05:48 PM ET] Yeah, David, I'll be able to do
[5:05:48 PM ET] just
[5:05:48 PM ET] was
[5:05:48 PM ET] I'll one
[5:05:48 PM ET] more
[5:05:49 PM ET] on
[5:05:49 PM ET] out there, don't
[5:05:49 PM ET] the other
[5:05:50 PM ET] there.
[5:05:50 PM ET] I think it's a really good
[5:05:50 PM ET] important
[5:05:51 PM ET] note
[5:05:51 PM ET] to
[5:05:51 PM ET] yeah david i'll just one more i'll add on there i think it's a really important note to say
[5:05:52 PM ET] say
[5:05:52 PM ET] that there's a lot of things
[5:05:52 PM ET] only one thing that I have to
[5:05:52 PM ET] a lot of people who are not a good
[5:05:52 PM ET] few that little bit
[5:05:53 PM ET] core
[5:05:53 PM ET] of the
[5:05:54 PM ET] poles
[5:05:54 PM ET] strategy there,
[5:05:54 PM ET] are
[5:05:55 PM ET] actually
[5:05:55 PM ET] working
[5:05:55 PM ET] for
[5:05:56 PM ET] that there's only a few core tent poles of the strategy that are actually working for us
[5:05:56 PM ET] us here
[5:05:56 PM ET] in
[5:05:57 PM ET] twenty twenty
[5:05:58 PM ET] six.
[5:05:58 PM ET] might
[5:05:58 PM ET] of
[5:05:58 PM ET] us are
[5:05:59 PM ET] is
[5:05:59 PM ET] yet
[5:05:59 PM ET] to
[5:06:00 PM ET] continue to be a very good
[5:06:00 PM ET] build
[5:06:00 PM ET] scale,
[5:06:01 PM ET] here in twenty twenty six much of the strategy is yet to
[5:06:01 PM ET] and
[5:06:02 PM ET] unfold.
[5:06:02 PM ET] And most of it is a very good
[5:06:02 PM ET] groups are going to be able to do
[5:06:03 PM ET] that's
[5:06:03 PM ET] is a little bit of a little bit of a
[5:06:03 PM ET] still
[5:06:03 PM ET] well ahead of the
[5:06:04 PM ET] other
[5:06:04 PM ET] continue to build scale and unfold and most of the growth is still well ahead of us
[5:06:04 PM ET] us.
[5:06:07 PM ET] Thank
[5:06:08 PM ET] you.
[5:06:08 PM ET] Thank you,
[5:06:09 PM ET] i appreciate it thank you thank you david
[5:06:09 PM ET] David.
[5:06:10 PM ET] Thank
[5:06:10 PM ET] The next question
[5:06:11 PM ET] come
[5:06:12 PM ET] from
[5:06:12 PM ET] Sarah
[5:06:14 PM ET] thank you the next question comes from sara senatore with
[5:06:14 PM ET] bank of america
[5:06:15 PM ET] please go ahead
[5:06:16 PM ET] Please go ahead.
[5:06:16 PM ET] said
[5:06:17 PM ET] Thank
[5:06:17 PM ET] you.
[5:06:18 PM ET] Um
[5:06:18 PM ET] just make a
[5:06:18 PM ET] quite an
[5:06:20 PM ET] I'm grouping
[5:06:20 PM ET] and then uh
[5:06:20 PM ET] oh thank you just maybe a question on throughput and then a quick
[5:06:20 PM ET] a quick question
[5:06:21 PM ET] on
[5:06:21 PM ET] um
[5:06:21 PM ET] Adam
[5:06:22 PM ET] your your
[5:06:22 PM ET] comment
[5:06:23 PM ET] on
[5:06:23 PM ET] I'm
[5:06:23 PM ET] I think that's a good
[5:06:24 PM ET] question.
[5:06:24 PM ET] Yeah, I think with
[5:06:25 PM ET] yeah,
[5:06:25 PM ET] the
[5:06:25 PM ET] question on adam your comment on marketing
[5:06:25 PM ET] throughput piece, I think it's a little bit
[5:06:26 PM ET] one of
[5:06:26 PM ET] the
[5:06:26 PM ET] things
[5:06:26 PM ET] that
[5:06:26 PM ET] we've done is we have to do
[5:06:27 PM ET] heard
[5:06:27 PM ET] from
[5:06:27 PM ET] others
[5:06:27 PM ET] that may
[5:06:28 PM ET] maybe you
[5:06:28 PM ET] i think with the throughput piece one of the things that we've
[5:06:28 PM ET] know, there's
[5:06:29 PM ET] been
[5:06:29 PM ET] too
[5:06:29 PM ET] much
[5:06:30 PM ET] focus,
[5:06:30 PM ET] on,
[5:06:31 PM ET] um
[5:06:31 PM ET] heard from others is that maybe there's been too much focus on
[5:06:32 PM ET] focus at the expense of
[5:06:33 PM ET] hospitality.
[5:06:34 PM ET] was just
[5:06:34 PM ET] it
[5:06:35 PM ET] curious,
[5:06:35 PM ET] um you
[5:06:35 PM ET] know I know
[5:06:35 PM ET] you mentioned
[5:06:36 PM ET] speed of service at the expense of hospitality just curious
[5:06:36 PM ET] it
[5:06:37 PM ET] both,
[5:06:37 PM ET] but
[5:06:37 PM ET] I
[5:06:37 PM ET] do
[5:06:38 PM ET] think about
[5:06:39 PM ET] measuring
[5:06:39 PM ET] some of
[5:06:39 PM ET] i know you mentioned both but as you think about measuring
[5:06:40 PM ET] the
[5:06:40 PM ET] other
[5:06:41 PM ET] in
[5:06:44 PM ET] of these other metrics to ensure that you're the
[5:06:45 PM ET] You're um
[5:06:46 PM ET] the the experience is that a you know, it's that change.
[5:06:47 PM ET] Or, you know,
[5:06:47 PM ET] your your
[5:06:47 PM ET] you're
[5:06:48 PM ET] chocolate or your
[5:06:48 PM ET] experience is better you know has that changed what you are you know your
[5:06:48 PM ET] metrics that
[5:06:49 PM ET] you
[5:06:49 PM ET] like
[5:06:50 PM ET] for
[5:06:50 PM ET] or
[5:06:51 PM ET] um
[5:06:52 PM ET] checklist or your metrics that you measure for
[5:06:52 PM ET] For your
[5:06:52 PM ET] management
[5:06:53 PM ET] teams
[5:06:53 PM ET] or
[5:06:53 PM ET] how
[5:06:53 PM ET] they
[5:06:53 PM ET] are
[5:06:53 PM ET] your
[5:06:54 PM ET] said
[5:06:55 PM ET] And
[5:06:56 PM ET] then the question is, I think that's a good
[5:06:56 PM ET] I've been
[5:06:56 PM ET] was very
[5:06:56 PM ET] a good
[5:06:56 PM ET] your management teams or how they're compensated
[5:06:56 PM ET] you
[5:06:57 PM ET] mentioned no, I think it was a very good
[5:06:57 PM ET] normal
[5:06:58 PM ET] a very good
[5:06:59 PM ET] force?
[5:06:59 PM ET] for
[5:06:59 PM ET] marketing
[5:06:59 PM ET] and then the question for adam was you mentioned normalizing for
[5:06:59 PM ET] behind
[5:07:00 PM ET] iron brisket, I
[5:07:01 PM ET] guess I'm not sure if I can do
[5:07:01 PM ET] would have to say
[5:07:01 PM ET] trying get a little bit of a
[5:07:02 PM ET] to
[5:07:02 PM ET] understand
[5:07:03 PM ET] marketing behind brisket i guess i was trying to understand that
[5:07:04 PM ET] um that that comment about
[5:07:04 PM ET] more
[5:07:04 PM ET] I
[5:07:08 PM ET] that comment about normalizing since it sort of seems like just
[5:07:11 PM ET] this is a step up in spending around marketing that has worked for you it's
[5:07:11 PM ET] stuff up in in spending a lot marketing that that has worked for
[5:07:13 PM ET] Only one
[5:07:13 PM ET] it's not necessarily one time
[5:07:14 PM ET] time.
[5:07:16 PM ET] Sarah's got here
[5:07:17 PM ET] I'll
[5:07:17 PM ET] start
[5:07:17 PM ET] with the
[5:07:17 PM ET] three
[5:07:17 PM ET] throughput
[5:07:18 PM ET] question
[5:07:18 PM ET] I'll flip over to the
[5:07:18 PM ET] hi sarah scott here i'll start with
[5:07:19 PM ET] it
[5:07:19 PM ET] Adam
[5:07:20 PM ET] on
[5:07:20 PM ET] promo
[5:07:21 PM ET] throughput question i'll flip over to adam on promo spending
[5:07:21 PM ET] spending.
[5:07:22 PM ET] Um I think
[5:07:22 PM ET] it's important
[5:07:22 PM ET] to
[5:07:22 PM ET] note
[5:07:23 PM ET] that
[5:07:23 PM ET] two
[5:07:23 PM ET] is
[5:07:24 PM ET] performance
[5:07:24 PM ET] and
[5:07:24 PM ET] in
[5:07:24 PM ET] throughput
[5:07:24 PM ET] was very
[5:07:25 PM ET] consistent
[5:07:25 PM ET] with
[5:07:26 PM ET] what
[5:07:26 PM ET] i think it's important to note that q3's performance and throughput was very
[5:07:26 PM ET] we
[5:07:27 PM ET] saw in
[5:07:27 PM ET] and
[5:07:27 PM ET] you
[5:07:27 PM ET] do.
[5:07:29 PM ET] Bonus
[5:07:29 PM ET] is the
[5:07:29 PM ET] old
[5:07:29 PM ET] tied, so
[5:07:30 PM ET] crew
[5:07:30 PM ET] consistent with what we saw in q2 bonus
[5:07:30 PM ET] bonus
[5:07:30 PM ET] is
[5:07:30 PM ET] still
[5:07:31 PM ET] tied, of
[5:07:31 PM ET] according
[5:07:31 PM ET] link
[5:07:32 PM ET] Throughput and
[5:07:33 PM ET] measures.
[5:07:33 PM ET] is still tied so crew bonus is still tied to quarterly throughput measures
[5:07:33 PM ET] Uh in the
[5:07:34 PM ET] rest of day, I'm not sure if I
[5:07:34 PM ET] where we're going to be able to do
[5:07:34 PM ET] we
[5:07:34 PM ET] have
[5:07:35 PM ET] how he's going to
[5:07:35 PM ET] into
[5:07:36 PM ET] fully
[5:07:37 PM ET] loaded, it's
[5:07:37 PM ET] about
[5:07:37 PM ET] in the restaurants where we have heat into
[5:07:38 PM ET] 1700
[5:07:38 PM ET] restaurants
[5:07:39 PM ET] today.
[5:07:39 PM ET] we're
[5:07:40 PM ET] seeing
[5:07:40 PM ET] uh plus
[5:07:40 PM ET] two
[5:07:40 PM ET] fully loaded it's about seventeen hundred restaurants today
[5:07:41 PM ET] aren't
[5:07:41 PM ET] in the middle of the
[5:07:41 PM ET] those
[5:07:42 PM ET] restaurants that come
[5:07:42 PM ET] compared to the rest of the rest of the
[5:07:43 PM ET] to
[5:07:43 PM ET] the
[5:07:44 PM ET] we're seeing plus two entrees in those restaurants as compared to
[5:07:44 PM ET] base.
[5:07:44 PM ET] which gives
[5:07:44 PM ET] us kind of a bad
[5:07:44 PM ET] lot
[5:07:45 PM ET] confidence that
[5:07:45 PM ET] the heat is a
[5:07:45 PM ET] heap
[5:07:45 PM ET] and the
[5:07:46 PM ET] investment
[5:07:46 PM ET] from
[5:07:46 PM ET] why didn't
[5:07:47 PM ET] he invests me at
[5:07:47 PM ET] for
[5:07:47 PM ET] a
[5:07:48 PM ET] the base which gives us confidence that the heap investment is the right investment for our brand
[5:07:48 PM ET] Brian?
[5:07:48 PM ET] And we'll
[5:07:49 PM ET] finish
[5:07:49 PM ET] that right
[5:07:49 PM ET] real
[5:07:49 PM ET] as we
[5:07:49 PM ET] we've talked
[5:07:50 PM ET] about
[5:07:50 PM ET] or
[5:07:51 PM ET] and you can put
[5:07:51 PM ET] that
[5:07:51 PM ET] roll
[5:07:52 PM ET] and we'll finish that rollout as we've talked about or near complete that rollout
[5:07:52 PM ET] by the end of the
[5:07:53 PM ET] twenty twenty
[5:07:54 PM ET] seven. I assure you that I'm not sure if
[5:07:54 PM ET] we are going to do
[5:07:55 PM ET] as
[5:07:56 PM ET] absolutely
[5:07:56 PM ET] fast as we
[5:07:56 PM ET] possibly
[5:07:57 PM ET] by the end of twenty twenty seven i assure you we are going as
[5:07:57 PM ET] can
[5:07:58 PM ET] absolutely fast as we possibly can there
[5:07:58 PM ET] there.
[5:07:59 PM ET] Also important to know
[5:07:59 PM ET] no
[5:08:00 PM ET] we were
[5:08:00 PM ET] the
[5:08:00 PM ET] there's Jason and
[5:08:00 PM ET] Tim
[5:08:00 PM ET] are about to be able to do
[5:08:01 PM ET] are
[5:08:01 PM ET] about
[5:08:01 PM ET] go under
[5:08:01 PM ET] the
[5:08:02 PM ET] also important to note we are jason and team are about to go under the tent
[5:08:02 PM ET] tet.
[5:08:02 PM ET] once
[5:08:03 PM ET] again with
[5:08:03 PM ET] through
[5:08:04 PM ET] point through
[5:08:04 PM ET] three two
[5:08:04 PM ET] point
[5:08:05 PM ET] oh and
[5:08:06 PM ET] Cafe with
[5:08:07 PM ET] once again with throughput two point o
[5:08:07 PM ET] the throughput
[5:08:07 PM ET] point one
[5:08:08 PM ET] back to
[5:08:08 PM ET] the
[5:08:08 PM ET] through
[5:08:09 PM ET] organization
[5:08:09 PM ET] once
[5:08:10 PM ET] again.
[5:08:10 PM ET] Would
[5:08:10 PM ET] is
[5:08:10 PM ET] and cascade the throughput fundamentals back through the organization once again
[5:08:10 PM ET] something
[5:08:10 PM ET] we
[5:08:11 PM ET] do
[5:08:11 PM ET] on and in the middle of the
[5:08:11 PM ET] annual
[5:08:12 PM ET] which is something we do on an annual basis
[5:08:12 PM ET] basis that we cannot
[5:08:13 PM ET] work
[5:08:13 PM ET] is
[5:08:13 PM ET] starting
[5:08:13 PM ET] here
[5:08:13 PM ET] this
[5:08:14 PM ET] quarter or
[5:08:14 PM ET] ensure that we're going to be able to do
[5:08:15 PM ET] ensure we
[5:08:15 PM ET] are
[5:08:15 PM ET] front
[5:08:16 PM ET] footed,
[5:08:16 PM ET] uh
[5:08:17 PM ET] going in
[5:08:17 PM ET] the twenty
[5:08:17 PM ET] that work is starting here this quarter to ensure we are front footed
[5:08:17 PM ET] to do
[5:08:18 PM ET] going into twenty twenty seven
[5:08:19 PM ET] seven uh can
[5:08:19 PM ET] we get back to the bottom of the
[5:08:19 PM ET] next
[5:08:19 PM ET] I think that's a good
[5:08:20 PM ET] am
[5:08:20 PM ET] absolutely
[5:08:21 PM ET] positive we get
[5:08:21 PM ET] can
[5:08:21 PM ET] can we get better i am absolutely positive we can get better
[5:08:22 PM ET] better.
[5:08:22 PM ET] Is it still
[5:08:22 PM ET] an
[5:08:22 PM ET] absolutely
[5:08:23 PM ET] focal
[5:08:23 PM ET] point for
[5:08:23 PM ET] this
[5:08:25 PM ET] organization?
[5:08:25 PM ET] It
[5:08:25 PM ET] is
[5:08:26 PM ET] cool and
[5:08:26 PM ET] is it still an absolute focal point for this organization
[5:08:27 PM ET] centre
[5:08:27 PM ET] to
[5:08:27 PM ET] you
[5:08:28 PM ET] Jason's
[5:08:28 PM ET] operational
[5:08:29 PM ET] it is core and center to jason's operational strategy
[5:08:29 PM ET] strategy.
[5:08:30 PM ET] We all
[5:08:30 PM ET] know
[5:08:30 PM ET] full
[5:08:30 PM ET] well
[5:08:30 PM ET] how
[5:08:31 PM ET] critical it
[5:08:31 PM ET] it's
[5:08:31 PM ET] important it
[5:08:31 PM ET] for
[5:08:32 PM ET] to
[5:08:32 PM ET] operational
[5:08:32 PM ET] brand and
[5:08:32 PM ET] we're
[5:08:32 PM ET] going to lose
[5:08:32 PM ET] leave
[5:08:32 PM ET] lean on
[5:08:33 PM ET] into
[5:08:34 PM ET] that
[5:08:34 PM ET] we all know full well how critically important it is to our brand and we're gonna lean into that
[5:08:34 PM ET] momentum
[5:08:34 PM ET] that's
[5:08:35 PM ET] building
[5:08:35 PM ET] and it
[5:08:35 PM ET] a really meaningful
[5:08:36 PM ET] way
[5:08:36 PM ET] here in
[5:08:37 PM ET] momentum that's building in a really meaningful way here in q four
[5:08:37 PM ET] Q4.
[5:08:38 PM ET] and
[5:08:39 PM ET] then hey Sarah
[5:08:39 PM ET] Adam
[5:08:39 PM ET] So to
[5:08:40 PM ET] answer your
[5:08:40 PM ET] question,
[5:08:40 PM ET] on
[5:08:41 PM ET] yeah and then hey sarah it's adam so to answer your question on marketing
[5:08:41 PM ET] marketing, you have
[5:08:41 PM ET] to think about
[5:08:42 PM ET] the
[5:08:42 PM ET] fact
[5:08:43 PM ET] that Switch is a very good
[5:08:43 PM ET] you think
[5:08:43 PM ET] to
[5:08:43 PM ET] this
[5:08:44 PM ET] the
[5:08:44 PM ET] for
[5:08:44 PM ET] four
[5:08:45 PM ET] protein
[5:08:45 PM ET] L T
[5:08:45 PM ET] strategy
[5:08:45 PM ET] that
[5:08:46 PM ET] we've
[5:08:46 PM ET] had this
[5:08:46 PM ET] you have to think about the fact that switching to this four protein lto strategy that we
[5:08:47 PM ET] year is
[5:08:47 PM ET] causing
[5:08:47 PM ET] some
[5:08:48 PM ET] shifts in
[5:08:48 PM ET] marketing.
[5:08:49 PM ET] So with
[5:08:49 PM ET] brisket
[5:08:49 PM ET] coming
[5:08:50 PM ET] on in
[5:08:50 PM ET] I think it's a very good
[5:08:50 PM ET] had this year is causing some shifts in marketing with brisket coming on in november
[5:08:51 PM ET] there's
[5:08:51 PM ET] little bit of a
[5:08:51 PM ET] lot
[5:08:51 PM ET] more
[5:08:52 PM ET] spend in
[5:08:52 PM ET] the
[5:08:52 PM ET] last two
[5:08:53 PM ET] months of the
[5:08:53 PM ET] year than kind
[5:08:54 PM ET] cannot
[5:08:54 PM ET] of
[5:08:54 PM ET] prior
[5:08:54 PM ET] years so
[5:08:55 PM ET] that's
[5:08:55 PM ET] 's a little bit more spend in the last two months of the year than kind of prior year so that's where
[5:08:55 PM ET] where
[5:08:56 PM ET] we kind
[5:08:56 PM ET] of
[5:08:56 PM ET] talk
[5:08:56 PM ET] about
[5:08:56 PM ET] it and
[5:08:56 PM ET] the
[5:08:56 PM ET] of
[5:08:57 PM ET] that
[5:08:58 PM ET] campaign.
[5:08:58 PM ET] we
[5:08:58 PM ET] expect
[5:08:59 PM ET] market
[5:08:59 PM ET] cars to be able
[5:08:59 PM ET] a little
[5:08:59 PM ET] bit
[5:09:00 PM ET] higher
[5:09:00 PM ET] aren't
[5:09:00 PM ET] too
[5:09:00 PM ET] we kind of talk about in support of that campaign we expect marketing cost to be a little bit
[5:09:00 PM ET] far
[5:09:01 PM ET] so
[5:09:01 PM ET] that that
[5:09:01 PM ET] was for
[5:09:01 PM ET] of
[5:09:02 PM ET] comment
[5:09:02 PM ET] was based
[5:09:02 PM ET] in q4 so that was where that comment was based on
[5:09:03 PM ET] on.
[5:09:04 PM ET] the music.
[5:09:04 PM ET] Thank
[5:09:08 PM ET] Next question.
[5:09:08 PM ET] oh
[5:09:10 PM ET] thank you the next question comes from
[5:09:11 PM ET] Come from
[5:09:12 PM ET] danilo gargiulo with bernstein
[5:09:12 PM ET] Please go ahead.
[5:09:14 PM ET] and see what the hell is the matter.
[5:09:14 PM ET] get a picture of city.
[5:09:16 PM ET] great scott i wanted to
[5:09:16 PM ET] I want to explain
[5:09:17 PM ET] on the other
[5:09:17 PM ET] comment that
[5:09:17 PM ET] you
[5:09:17 PM ET] were
[5:09:18 PM ET] making
[5:09:18 PM ET] earlier.
[5:09:20 PM ET] um regarding
[5:09:20 PM ET] your
[5:09:20 PM ET] bias to the
[5:09:21 PM ET] expand on the comment that you were making earlier
[5:09:21 PM ET] watch.
[5:09:21 PM ET] I mean it's a very important
[5:09:22 PM ET] clear
[5:09:22 PM ET] that so
[5:09:22 PM ET] far you have a lot of things that you have to
[5:09:23 PM ET] you've
[5:09:23 PM ET] demonstrated a
[5:09:23 PM ET] greater bias to
[5:09:24 PM ET] regarding your bias to action i mean it's clear that so far you've demonstrated greater bias to
[5:09:24 PM ET] action as you
[5:09:25 PM ET] had, know, four L T
[5:09:25 PM ET] greater
[5:09:26 PM ET] graded
[5:09:26 PM ET] marketing
[5:09:26 PM ET] to
[5:09:27 PM ET] spending, more than
[5:09:27 PM ET] of a good
[5:09:28 PM ET] occasions
[5:09:28 PM ET] being
[5:09:28 PM ET] been
[5:09:29 PM ET] you had four ltos greater marketing spending more occasion being driven
[5:09:29 PM ET] driven.
[5:09:29 PM ET] Um
[5:09:30 PM ET] yet the
[5:09:30 PM ET] uh on on a
[5:09:31 PM ET] traffic
[5:09:31 PM ET] level, you
[5:09:32 PM ET] especially on the left, the
[5:09:32 PM ET] third
[5:09:33 PM ET] quarter, it
[5:09:33 PM ET] has
[5:09:33 PM ET] been very
[5:09:33 PM ET] relevant to the fact that it is a good
[5:09:33 PM ET] at
[5:09:33 PM ET] yet the on a traffic level especially on the third quarter
[5:09:34 PM ET] sadish this
[5:09:35 PM ET] So, I think that's a good
[5:09:35 PM ET] know you are not going to be able to do
[5:09:36 PM ET] sure if you have a lot of people who are
[5:09:36 PM ET] but I think it is very good
[5:09:36 PM ET] getting a lot of
[5:09:36 PM ET] giving
[5:09:36 PM ET] any
[5:09:37 PM ET] um you
[5:09:37 PM ET] know got to be a little bit
[5:09:38 PM ET] for
[5:09:38 PM ET] it has been relatively flattish this year so i know you're not giving any
[5:09:38 PM ET] trying do
[5:09:39 PM ET] but
[5:09:39 PM ET] just tell
[5:09:39 PM ET] the
[5:09:39 PM ET] they're
[5:09:40 PM ET] reactionary.
[5:09:40 PM ET] What do you
[5:09:40 PM ET] expect
[5:09:41 PM ET] is the
[5:09:41 PM ET] from
[5:09:41 PM ET] on
[5:09:41 PM ET] guidance for twenty twenty seven but just directionally
[5:09:42 PM ET] traffic?
[5:09:42 PM ET] um
[5:09:43 PM ET] meaning
[5:09:43 PM ET] do do you think
[5:09:43 PM ET] that
[5:09:44 PM ET] they
[5:09:44 PM ET] can get into the
[5:09:44 PM ET] what's your expectations on traffic meaning
[5:09:45 PM ET] part of
[5:09:45 PM ET] this
[5:09:46 PM ET] traffic
[5:09:46 PM ET] over
[5:09:46 PM ET] there
[5:09:46 PM ET] even if you have a lot of
[5:09:47 PM ET] the
[5:09:48 PM ET] do you think that you can get into positive traffic over there even if the market
[5:09:48 PM ET] market
[5:09:48 PM ET] over the
[5:09:48 PM ET] is
[5:09:49 PM ET] not in the
[5:09:50 PM ET] improving.
[5:09:50 PM ET] the
[5:09:51 PM ET] understand maybe that
[5:09:52 PM ET] the building
[5:09:52 PM ET] blocks are
[5:09:52 PM ET] of the
[5:09:52 PM ET] this
[5:09:53 PM ET] overall is not improving and if so can you help us understand maybe the building blocks
[5:09:53 PM ET] traffic?
[5:09:54 PM ET] uh of
[5:09:54 PM ET] this
[5:09:54 PM ET] positive
[5:09:55 PM ET] traffic
[5:09:55 PM ET] rule is
[5:09:55 PM ET] into
[5:09:55 PM ET] two twenty
[5:09:56 PM ET] of this traffic of this positive traffic growth into twenty twenty seven
[5:09:56 PM ET] Thank
[5:09:57 PM ET] thank you
[5:09:57 PM ET] you.
[5:09:58 PM ET] Yeah, you know
[5:09:58 PM ET] I think I heard
[5:09:59 PM ET] you um asking about
[5:10:02 PM ET] yeah danilo i think i heard you asking about traffic
[5:10:03 PM ET] I think I
[5:10:03 PM ET] traffic. You know, I told you we've heard about the
[5:10:04 PM ET] transactions all three quarters of the
[5:10:05 PM ET] year,
[5:10:05 PM ET] thus
[5:10:05 PM ET] you know i'll tell you we've had positive transactions all three quarters of the year thus far
[5:10:06 PM ET] far, and
[5:10:06 PM ET] we feel like
[5:10:07 PM ET] we're
[5:10:07 PM ET] all the
[5:10:07 PM ET] middle of the
[5:10:08 PM ET] rest
[5:10:08 PM ET] of the
[5:10:08 PM ET] for
[5:10:09 PM ET] go
[5:10:09 PM ET] strategy, which
[5:10:10 PM ET] is
[5:10:10 PM ET] designed
[5:10:10 PM ET] to
[5:10:10 PM ET] do
[5:10:10 PM ET] just
[5:10:10 PM ET] and we feel like we're in early days of the recipe for growth strategy which is designed to do just
[5:10:11 PM ET] that.
[5:10:11 PM ET] that
[5:10:12 PM ET] It's a
[5:10:12 PM ET] domain
[5:10:12 PM ET] driving
[5:10:13 PM ET] strategy of
[5:10:13 PM ET] it's a demand driving strategy across
[5:10:14 PM ET] you
[5:10:14 PM ET] know, the driving
[5:10:14 PM ET] core
[5:10:14 PM ET] tenants
[5:10:14 PM ET] of
[5:10:15 PM ET] technology
[5:10:16 PM ET] rush on
[5:10:16 PM ET] Yeah, yeah,
[5:10:18 PM ET] Innovation
[5:10:18 PM ET] brand
[5:10:18 PM ET] the core tenets of technology restaurant execution
[5:10:19 PM ET] messaging,
[5:10:19 PM ET] group of
[5:10:20 PM ET] occasions.
[5:10:21 PM ET] and we feel like
[5:10:22 PM ET] we're in the early
[5:10:22 PM ET] innovation brand messaging group occasions
[5:10:22 PM ET] days of the
[5:10:22 PM ET] that's
[5:10:22 PM ET] that
[5:10:23 PM ET] strategy so if
[5:10:23 PM ET] you're
[5:10:24 PM ET] and we feel like we're in early days of that strategy so if you're asking
[5:10:24 PM ET] asking,
[5:10:24 PM ET] uh,
[5:10:24 PM ET] can
[5:10:24 PM ET] we
[5:10:25 PM ET] drive
[5:10:25 PM ET] transactions, we
[5:10:26 PM ET] a
[5:10:26 PM ET] rule
[5:10:26 PM ET] really challenging
[5:10:27 PM ET] consumer
[5:10:28 PM ET] I think we have a lot of
[5:10:28 PM ET] done
[5:10:28 PM ET] demonstrated that we very good
[5:10:29 PM ET] can we drive transactions in a really challenging consumer environment i think we've demonstrated
[5:10:29 PM ET] for
[5:10:29 PM ET] the
[5:10:29 PM ET] past three
[5:10:30 PM ET] quarters of the
[5:10:30 PM ET] we
[5:10:30 PM ET] can
[5:10:30 PM ET] do
[5:10:31 PM ET] for the past three quarters we can do that
[5:10:31 PM ET] that.
[5:10:31 PM ET] and
[5:10:32 PM ET] the
[5:10:32 PM ET] strategy
[5:10:32 PM ET] is
[5:10:32 PM ET] only in
[5:10:33 PM ET] the
[5:10:33 PM ET] early
[5:10:33 PM ET] days, and we
[5:10:33 PM ET] can
[5:10:34 PM ET] take
[5:10:34 PM ET] the
[5:10:34 PM ET] build
[5:10:34 PM ET] and
[5:10:35 PM ET] scale.
[5:10:35 PM ET] as the
[5:10:36 PM ET] year
[5:10:36 PM ET] and the strategy is only in the early days and will continue to build and scale
[5:10:36 PM ET] unfolds
[5:10:36 PM ET] and as the
[5:10:37 PM ET] we end up with
[5:10:37 PM ET] twenty
[5:10:37 PM ET] in
[5:10:38 PM ET] twenty
[5:10:38 PM ET] as the year unfolds and as we enter twenty twenty seven
[5:10:38 PM ET] seven.
[5:10:38 PM ET] So if you're
[5:10:39 PM ET] asking
[5:10:39 PM ET] me if
[5:10:39 PM ET] I
[5:10:39 PM ET] have
[5:10:40 PM ET] confidence in
[5:10:40 PM ET] this
[5:10:40 PM ET] team's
[5:10:40 PM ET] ability
[5:10:41 PM ET] to
[5:10:41 PM ET] drive
[5:10:41 PM ET] trains
[5:10:41 PM ET] to
[5:10:42 PM ET] and
[5:10:42 PM ET] actions, in this
[5:10:43 PM ET] if you're asking me if i have confidence in this team's ability to drive transactions
[5:10:43 PM ET] environment.
[5:10:43 PM ET] The
[5:10:44 PM ET] answer
[5:10:44 PM ET] is I don't
[5:10:44 PM ET] absolutely
[5:10:45 PM ET] in this environment the answer is absolutely yes
[5:10:45 PM ET] yes.
[5:10:49 PM ET] thank you
[5:10:51 PM ET] The next question
[5:10:51 PM ET] comes from Dennis Geiger with
[5:10:51 PM ET] he
[5:10:52 PM ET] the next question comes from dennis geiger with ubs
[5:10:53 PM ET] please go ahead
[5:10:54 PM ET] Please go ahead.
[5:10:56 PM ET] Thanks guys.
[5:10:56 PM ET] What was
[5:10:57 PM ET] if you could talk about
[5:10:57 PM ET] a little bit the
[5:10:57 PM ET] more
[5:10:57 PM ET] about
[5:10:58 PM ET] the
[5:10:58 PM ET] i wonder
[5:10:58 PM ET] four
[5:10:59 PM ET] 4Q
[5:11:00 PM ET] margin
[5:11:01 PM ET] expectations I don't
[5:11:01 PM ET] I'm going
[5:11:01 PM ET] if you could talk a little bit more about the 4q
[5:11:02 PM ET] great, you
[5:11:02 PM ET] know,
[5:11:02 PM ET] colour on my
[5:11:03 PM ET] by
[5:11:03 PM ET] line,
[5:11:03 PM ET] I don't
[5:11:03 PM ET] I'm
[5:11:04 PM ET] always
[5:11:04 PM ET] margin expectations adam great color by line item always
[5:11:04 PM ET] help.
[5:11:04 PM ET] I guess I can do
[5:11:05 PM ET] it's
[5:11:05 PM ET] what I'm
[5:11:05 PM ET] to the fact that not sure if
[5:11:05 PM ET] to
[5:11:06 PM ET] the
[5:11:06 PM ET] uh
[5:11:06 PM ET] the
[5:11:07 PM ET] complex cookies are not the
[5:11:07 PM ET] for a little
[5:11:08 PM ET] helpful i guess just relative to the comp expectation for the quarter
[5:11:09 PM ET] quarter. Any
[5:11:09 PM ET] of
[5:11:09 PM ET] other m
[5:11:09 PM ET] moving
[5:11:10 PM ET] pieces.
[5:11:11 PM ET] I I guess that's the
[5:11:12 PM ET] marketing
[5:11:12 PM ET] uh it seems like
[5:11:13 PM ET] I'm a
[5:11:13 PM ET] any other moving pieces i get that the marketing seems like
[5:11:13 PM ET] pretty
[5:11:13 PM ET] big
[5:11:14 PM ET] piece of
[5:11:14 PM ET] I
[5:11:14 PM ET] the
[5:11:15 PM ET] Any of things that you can do is that you can
[5:11:15 PM ET] to with
[5:11:15 PM ET] piece of
[5:11:15 PM ET] the piece the
[5:11:16 PM ET] for
[5:11:16 PM ET] four
[5:11:16 PM ET] floor she
[5:11:17 PM ET] gonna
[5:11:17 PM ET] then you
[5:11:17 PM ET] a pretty big piece of this any other moving pieces for the 4q margins that maybe you didn't touch
[5:11:17 PM ET] didn't touch
[5:11:18 PM ET] about
[5:11:18 PM ET] if
[5:11:19 PM ET] anything
[5:11:19 PM ET] on.
[5:11:20 PM ET] I think that's what I'm saying.
[5:11:21 PM ET] uh
[5:11:22 PM ET] our investment
[5:11:22 PM ET] in
[5:11:22 PM ET] on if anything on labor hours investment in
[5:11:23 PM ET] the middle of the
[5:11:23 PM ET] some
[5:11:24 PM ET] way I
[5:11:24 PM ET] that you
[5:11:24 PM ET] have
[5:11:25 PM ET] got. Anything
[5:11:25 PM ET] on
[5:11:25 PM ET] the promo in the middle of the
[5:11:25 PM ET] went
[5:11:26 PM ET] and
[5:11:26 PM ET] pack, yeah,
[5:11:26 PM ET] anything
[5:11:26 PM ET] else
[5:11:27 PM ET] to
[5:11:27 PM ET] the
[5:11:27 PM ET] in some of the labor programs that you've got anything on promo impacts anything else to
[5:11:27 PM ET] flag,
[5:11:27 PM ET] be
[5:11:28 PM ET] beyond
[5:11:28 PM ET] uh some of
[5:11:28 PM ET] those
[5:11:28 PM ET] items
[5:11:29 PM ET] you
[5:11:29 PM ET] you've
[5:11:29 PM ET] called that
[5:11:30 PM ET] or
[5:11:30 PM ET] earlier? Thank
[5:11:30 PM ET] flag beyond some of those items you called out earlier thank you
[5:11:31 PM ET] time?
[5:11:32 PM ET] Sure,
[5:11:33 PM ET] then what we call
[5:11:33 PM ET] that over earlier I guess, you
[5:11:34 PM ET] know, when you're coming
[5:11:34 PM ET] kind of walking in the middle of the
[5:11:34 PM ET] out
[5:11:35 PM ET] yeah sure dennis so yeah what we called out earlier of course
[5:11:35 PM ET] at it on a year over your
[5:11:36 PM ET] bases, it's down about
[5:11:36 PM ET] a
[5:11:36 PM ET] hundred and
[5:11:37 PM ET] fifty
[5:11:37 PM ET] basis
[5:11:38 PM ET] points after
[5:11:38 PM ET] of
[5:11:38 PM ET] when you're kind of looking at it on a year over year basis it's down about one
[5:11:38 PM ET] that is that you're going to
[5:11:39 PM ET] be able do
[5:11:39 PM ET] card
[5:11:39 PM ET] benefit that we
[5:11:40 PM ET] got the
[5:11:40 PM ET] prayer
[5:11:41 PM ET] So you kind of have to do
[5:11:41 PM ET] look at
[5:11:41 PM ET] and fifty basis points half of that is that gift card benefit that we got in
[5:11:41 PM ET] that
[5:11:42 PM ET] as
[5:11:42 PM ET] a as
[5:11:43 PM ET] the screen
[5:11:43 PM ET] I
[5:11:43 PM ET] item, you
[5:11:44 PM ET] based on
[5:11:44 PM ET] of
[5:11:44 PM ET] that
[5:11:45 PM ET] the prior year so you kind of have to look at that as discrete item based off of that
[5:11:45 PM ET] comparison
[5:11:45 PM ET] comparison.
[5:11:46 PM ET] and then the way they add
[5:11:46 PM ET] pro
[5:11:46 PM ET] promo should
[5:11:47 PM ET] shift to the
[5:11:47 PM ET] some of things
[5:11:47 PM ET] support
[5:11:48 PM ET] brisket, you
[5:11:48 PM ET] know call
[5:11:48 PM ET] that
[5:11:49 PM ET] another
[5:11:49 PM ET] 30
[5:11:50 PM ET] basis
[5:11:50 PM ET] points or
[5:11:50 PM ET] then really the ad promo shift to support brisket you know call that another thirty base
[5:11:50 PM ET] basis points or so
[5:11:51 PM ET] so.
[5:11:51 PM ET] And then the
[5:11:51 PM ET] remainder of the case is the
[5:11:52 PM ET] or it was really
[5:11:52 PM ET] well as I'm
[5:11:53 PM ET] okay, so I think that's a good
[5:11:53 PM ET] talk about
[5:11:53 PM ET] I am
[5:11:54 PM ET] him, so we're
[5:11:54 PM ET] back
[5:11:54 PM ET] and then the remainder is really sales volume so we're expecting you
[5:11:54 PM ET] in you
[5:11:55 PM ET] know what I
[5:11:55 PM ET] with that
[5:11:55 PM ET] true
[5:11:56 PM ET] ish per
[5:11:56 PM ET] cent
[5:11:56 PM ET] guy would
[5:11:56 PM ET] to
[5:11:56 PM ET] at about
[5:11:57 PM ET] a
[5:11:57 PM ET] that
[5:11:58 PM ET] know with that two ish percent guide about a flat transaction
[5:11:58 PM ET] but I'm
[5:11:59 PM ET] mix
[5:11:59 PM ET] them a little
[5:12:00 PM ET] is probably about
[5:12:00 PM ET] a minus
[5:12:00 PM ET] one
[5:12:01 PM ET] 1%.
[5:12:01 PM ET] but a mix impact of probably about a minus one percent
[5:12:01 PM ET] percent.
[5:12:02 PM ET] and then of course...
[5:12:02 PM ET] you've got the European
[5:12:03 PM ET] year
[5:12:03 PM ET] impact from the
[5:12:03 PM ET] New
[5:12:04 PM ET] restaurant
[5:12:04 PM ET] openings and so
[5:12:05 PM ET] then of course you've got the year over year impact from new restaurant openings and so
[5:12:05 PM ET] that gives you a good
[5:12:06 PM ET] the
[5:12:06 PM ET] bridge,
[5:12:06 PM ET] that gives you the bridge but
[5:12:07 PM ET] but taking a look at the
[5:12:07 PM ET] step
[5:12:07 PM ET] back
[5:12:08 PM ET] and really
[5:12:08 PM ET] think I'm
[5:12:08 PM ET] about
[5:12:09 PM ET] thinking why
[5:12:09 PM ET] origins
[5:12:09 PM ET] in terms
[5:12:10 PM ET] taking a step back and really thinking about margins in total
[5:12:10 PM ET] how
[5:12:10 PM ET] total
[5:12:10 PM ET] that
[5:12:11 PM ET] will get
[5:12:11 PM ET] you, but I think that's a good
[5:12:12 PM ET] best off about
[5:12:12 PM ET] our
[5:12:12 PM ET] see
[5:12:13 PM ET] the same
[5:12:13 PM ET] get
[5:12:13 PM ET] you to other
[5:12:13 PM ET] a
[5:12:14 PM ET] the twenty
[5:12:14 PM ET] six
[5:12:14 PM ET] margin and
[5:12:15 PM ET] or somewhere in
[5:12:15 PM ET] that will get you based off of our guidance it'll get you to about a twenty twenty six margin
[5:12:15 PM ET] that
[5:12:15 PM ET] like
[5:12:16 PM ET] mid twenty
[5:12:16 PM ET] three
[5:12:16 PM ET] percent right
[5:12:17 PM ET] somewhere in that like mid-twenty three percent range
[5:12:17 PM ET] I have a lot of
[5:12:18 PM ET] you can see that you can see that you can see
[5:12:18 PM ET] it's a very good
[5:12:18 PM ET] have to be able to do
[5:12:18 PM ET] remember
[5:12:18 PM ET] that that's a good
[5:12:18 PM ET] includes
[5:12:19 PM ET] bunch
[5:12:19 PM ET] about
[5:12:19 PM ET] a hundred and a
[5:12:20 PM ET] bases
[5:12:21 PM ET] points
[5:12:21 PM ET] however you have to remember that that includes about a hundred basis points of
[5:12:22 PM ET] of...
[5:12:22 PM ET] how did
[5:12:22 PM ET] that
[5:12:23 PM ET] price
[5:12:23 PM ET] inflation.
[5:12:23 PM ET] just
[5:12:24 PM ET] right because
[5:12:25 PM ET] we're going to
[5:12:25 PM ET] be
[5:12:25 PM ET] around
[5:12:26 PM ET] 2%
[5:12:26 PM ET] percent
[5:12:26 PM ET] price
[5:12:26 PM ET] kind of that price inflation dislocation right because we're
[5:12:27 PM ET] in this
[5:12:27 PM ET] year but
[5:12:27 PM ET] gonna be around two percent pricing this year but our
[5:12:28 PM ET] our
[5:12:28 PM ET] up
[5:12:28 PM ET] ex
[5:12:28 PM ET] inflation is
[5:12:29 PM ET] closer to
[5:12:29 PM ET] a
[5:12:30 PM ET] three
[5:12:30 PM ET] opex inflation is closer to three percent
[5:12:30 PM ET] I think that's a good
[5:12:30 PM ET] And so when
[5:12:30 PM ET] you think about it, you can't do
[5:12:31 PM ET] thinking
[5:12:31 PM ET] twenty
[5:12:31 PM ET] two, I'm going to say
[5:12:32 PM ET] you're going to have to do
[5:12:32 PM ET] I would say that I'm not be able
[5:12:32 PM ET] I
[5:12:32 PM ET] would say going to
[5:12:32 PM ET] consider
[5:12:32 PM ET] the
[5:12:33 PM ET] you
[5:12:33 PM ET] know that twenty seven seven seven seven seven
[5:12:34 PM ET] 23 and a
[5:12:34 PM ET] half
[5:12:35 PM ET] plus
[5:12:35 PM ET] that
[5:12:35 PM ET] so when you're thinking about twenty twenty seven i would consider you know that twenty three point five percent plus that
[5:12:35 PM ET] oh the
[5:12:35 PM ET] basis
[5:12:36 PM ET] points, you call
[5:12:36 PM ET] them
[5:12:36 PM ET] a mid
[5:12:37 PM ET] did twenty
[5:12:37 PM ET] and my
[5:12:38 PM ET] one hundred basis points so call it a mid-twenty four margin
[5:12:38 PM ET] margin.
[5:12:39 PM ET] It's kind of the
[5:12:39 PM ET] is kind of the baseline
[5:12:40 PM ET] a baseline.
[5:12:40 PM ET] assuming that
[5:12:40 PM ET] we're
[5:12:40 PM ET] able to do
[5:12:41 PM ET] utilize
[5:12:42 PM ET] price
[5:12:42 PM ET] to offset inflation.
[5:12:43 PM ET] and
[5:12:43 PM ET] then
[5:12:43 PM ET] drive
[5:12:44 PM ET] at least
[5:12:44 PM ET] the point of
[5:12:44 PM ET] assuming that we're able to utilize price to offset inflation and then drive at least a point of
[5:12:45 PM ET] trans
[5:12:45 PM ET] to offset the inflation.
[5:12:46 PM ET] in
[5:12:46 PM ET] trans to offset the impact
[5:12:46 PM ET] of our
[5:12:47 PM ET] NROs next
[5:12:47 PM ET] year,
[5:12:47 PM ET] of our nros next year
[5:12:48 PM ET] And then any
[5:12:49 PM ET] additional
[5:12:49 PM ET] traffic
[5:12:49 PM ET] grow up on
[5:12:50 PM ET] top of
[5:12:50 PM ET] that, that's
[5:12:51 PM ET] that'll
[5:12:51 PM ET] be more
[5:12:51 PM ET] gonna
[5:12:52 PM ET] an
[5:12:52 PM ET] and then any additional traffic growth on top of that that'll be margin accretive
[5:12:52 PM ET] a kind of
[5:12:53 PM ET] I don't
[5:12:53 PM ET] usually
[5:12:53 PM ET] pass-through of
[5:12:54 PM ET] somewhere
[5:12:54 PM ET] around
[5:12:55 PM ET] forty
[5:12:55 PM ET] percent,
[5:12:55 PM ET] so I
[5:12:56 PM ET] think that's
[5:12:56 PM ET] give
[5:12:56 PM ET] you
[5:12:56 PM ET] the piece of
[5:12:57 PM ET] pieces, not only for
[5:12:57 PM ET] at our usual pass through of somewhere around forty percent so
[5:12:57 PM ET] Q4,
[5:12:57 PM ET] but kind of like the same
[5:12:57 PM ET] a QR
[5:12:58 PM ET] look at
[5:12:58 PM ET] for
[5:12:58 PM ET] those give you the pieces not only for q four but kinda looking forward
[5:12:59 PM ET] forward.
[5:13:00 PM ET] like a 2008?
[5:13:01 PM ET] very helpful thank you
[5:13:01 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:13:02 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:13:04 PM ET] The next question comes to
[5:13:06 PM ET] thank you the next question comes from chris o'cull with
[5:13:06 PM ET] baird
[5:13:07 PM ET] please go ahead
[5:13:07 PM ET] Oh, I'm going to go to the next store.
[5:13:09 PM ET] Ah, please go ahead.
[5:13:09 PM ET] music.
[5:13:10 PM ET] the house.
[5:13:11 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:13:11 PM ET] bit of a
[5:13:12 PM ET] up um
[5:13:13 PM ET] on that on the
[5:13:14 PM ET] ones in the
[5:13:14 PM ET] marginal
[5:13:15 PM ET] question.
[5:13:15 PM ET] just as a follow-up adam on the response to the margin question
[5:13:15 PM ET] you know there can't
[5:13:16 PM ET] been
[5:13:16 PM ET] making
[5:13:16 PM ET] some
[5:13:17 PM ET] sizable
[5:13:17 PM ET] bone dust and stuff
[5:13:17 PM ET] I've been
[5:13:18 PM ET] just
[5:13:18 PM ET] increased
[5:13:19 PM ET] traffic. What?
[5:13:19 PM ET] Do you
[5:13:20 PM ET] want
[5:13:20 PM ET] the company has been making some sizable investments obviously they increased
[5:13:20 PM ET] I'm not sure if I can do
[5:13:23 PM ET] traffic what comp do you believe is necessary
[5:13:23 PM ET] They will always warn them
[5:13:24 PM ET] perform
[5:13:25 PM ET] with this inflation
[5:13:25 PM ET] to stabilize margin performance with this inflation outlook
[5:13:26 PM ET] outlook.
[5:13:27 PM ET] that
[5:13:28 PM ET] work
[5:13:28 PM ET] we're
[5:13:28 PM ET] cover
[5:13:28 PM ET] aren't
[5:13:29 PM ET] inflation
[5:13:29 PM ET] with
[5:13:29 PM ET] price here,
[5:13:29 PM ET] which
[5:13:30 PM ET] is
[5:13:30 PM ET] what we
[5:13:30 PM ET] intend to
[5:13:30 PM ET] yeah i mean assuming that we're covering our inflation with pricing which is what we
[5:13:31 PM ET] do we might not
[5:13:31 PM ET] get that
[5:13:31 PM ET] right, every
[5:13:32 PM ET] next one.
[5:13:33 PM ET] but we intend to get
[5:13:33 PM ET] that
[5:13:33 PM ET] right over
[5:13:34 PM ET] the
[5:13:34 PM ET] to do we might not get that right every quarter but we intend to get that right over time
[5:13:34 PM ET] time.
[5:13:35 PM ET] We need
[5:13:35 PM ET] about
[5:13:35 PM ET] one
[5:13:35 PM ET] point of
[5:13:36 PM ET] at a
[5:13:36 PM ET] trend
[5:13:36 PM ET] to
[5:13:37 PM ET] ask
[5:13:37 PM ET] the
[5:13:37 PM ET] impact
[5:13:38 PM ET] of new
[5:13:39 PM ET] restaurant
[5:13:39 PM ET] we need about one point of trans to offset the impact of new restaurant openings
[5:13:39 PM ET] openings.
[5:13:40 PM ET] So when you get north of
[5:13:41 PM ET] that
[5:13:41 PM ET] one
[5:13:41 PM ET] 1%.
[5:13:42 PM ET] percent
[5:13:42 PM ET] transcomp,
[5:13:42 PM ET] that's
[5:13:42 PM ET] when
[5:13:43 PM ET] you
[5:13:43 PM ET] start
[5:13:43 PM ET] to
[5:13:43 PM ET] see
[5:13:43 PM ET] that
[5:13:44 PM ET] 1%
[5:13:44 PM ET] so when you get north of that one percent trans comp that's when you start to see that forty percent
[5:13:44 PM ET] 40%
[5:13:44 PM ET] percent,
[5:13:44 PM ET] flow
[5:13:44 PM ET] flow through
[5:13:47 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:13:47 PM ET] Three percent of
[5:13:48 PM ET] closure they
[5:13:48 PM ET] of
[5:13:49 PM ET] know, four percent
[5:13:50 PM ET] so if you're looking at three percent inflation you're thinking a four percent nominal
[5:13:50 PM ET] nominal car might be
[5:13:50 PM ET] that
[5:13:50 PM ET] the third
[5:13:51 PM ET] to
[5:13:51 PM ET] stabilise
[5:13:52 PM ET] comp might be necessary to stabilize margin
[5:13:52 PM ET] margin.
[5:13:54 PM ET] yes that's correct
[5:13:55 PM ET] And
[5:13:56 PM ET] How do you
[5:13:57 PM ET] think about
[5:13:57 PM ET] overall
[5:13:57 PM ET] level
[5:13:58 PM ET] marketing
[5:13:58 PM ET] investment
[5:13:58 PM ET] that's
[5:13:59 PM ET] right for
[5:13:59 PM ET] the
[5:13:59 PM ET] okay and then how are you thinking about overall level of marketing investment
[5:14:00 PM ET] business
[5:14:00 PM ET] as you go
[5:14:00 PM ET] into the
[5:14:01 PM ET] I think that's a good
[5:14:02 PM ET] you're
[5:14:02 PM ET] spend
[5:14:02 PM ET] is up a
[5:14:03 PM ET] over
[5:14:03 PM ET] twenty
[5:14:03 PM ET] that's right for the business as you go into 'twenty seven i think you're
[5:14:03 PM ET] percent year to
[5:14:03 PM ET] the
[5:14:04 PM ET] I'm just
[5:14:05 PM ET] curious if
[5:14:05 PM ET] you expect it to
[5:14:05 PM ET] see
[5:14:06 PM ET] this other
[5:14:06 PM ET] way of doing
[5:14:06 PM ET] spend is up over twenty percent year to date so i'm just curious
[5:14:07 PM ET] growth,
[5:14:08 PM ET] in
[5:14:08 PM ET] marketing
[5:14:09 PM ET] for
[5:14:09 PM ET] spend next
[5:14:09 PM ET] if you expect a similar rate of growth in marketing spend next year
[5:14:09 PM ET] year.
[5:14:12 PM ET] Yeah, I think it's a very good
[5:14:12 PM ET] little
[5:14:13 PM ET] I'm not
[5:14:13 PM ET] um, I think I think I think I think I
[5:14:14 PM ET] the
[5:14:14 PM ET] three percent
[5:14:14 PM ET] hi chris this is scott i think three percent is
[5:14:14 PM ET] is
[5:14:14 PM ET] the
[5:14:15 PM ET] right
[5:14:15 PM ET] wing
[5:14:16 PM ET] for
[5:14:16 PM ET] us to
[5:14:16 PM ET] think
[5:14:16 PM ET] about
[5:14:16 PM ET] like a
[5:14:17 PM ET] can
[5:14:17 PM ET] flight
[5:14:17 PM ET] up
[5:14:18 PM ET] or
[5:14:18 PM ET] down.
[5:14:19 PM ET] we will leave
[5:14:19 PM ET] into
[5:14:19 PM ET] it
[5:14:19 PM ET] the right range for us to think about and that could flex up or down
[5:14:19 PM ET] the
[5:14:20 PM ET] but it's
[5:14:21 PM ET] we will lean into return generating opportunities
[5:14:23 PM ET] And pull back over.
[5:14:24 PM ET] we all see that same
[5:14:24 PM ET] is how it
[5:14:25 PM ET] would think about
[5:14:25 PM ET] and pull back when we don't see that same opportunity is how i would think about it
[5:14:26 PM ET] it.
[5:14:26 PM ET] Um right
[5:14:27 PM ET] now the
[5:14:30 PM ET] can you be
[5:14:30 PM ET] right now the baseline for that budget for the upcoming year will be in that three percent range and
[5:14:31 PM ET] I guess that's all I've
[5:14:32 PM ET] all
[5:14:33 PM ET] think that gives us a really strong calendar to support
[5:14:34 PM ET] calendar of support.
[5:14:34 PM ET] uh
[5:14:35 PM ET] what I believe to be a best in
[5:14:36 PM ET] class
[5:14:36 PM ET] I'll tell you
[5:14:36 PM ET] oh
[5:14:36 PM ET] but
[5:14:37 PM ET] one to the
[5:14:37 PM ET] yeah, come
[5:14:38 PM ET] what i believe to be a best in class lto platform for the upcoming year
[5:14:39 PM ET] We'll
[5:14:41 PM ET] but we'll see there could be opportunities where we want to lean in
[5:14:44 PM ET] we know there will be a return to be gained
[5:14:46 PM ET] So that's
[5:14:47 PM ET] or to be had and so that's where we'll spend our dollars
[5:14:49 PM ET] what
[5:14:49 PM ET] was the most important thing.
[5:14:51 PM ET] great thanks guys
[5:14:56 PM ET] thank you the next question comes from john
[5:14:56 PM ET] ivankoe with
[5:14:57 PM ET] jpmorgan
[5:14:58 PM ET] please go ahead
[5:15:02 PM ET] Well I think you I'm not sure I said
[5:15:03 PM ET] hi thank you the question is on the physical asset
[5:15:05 PM ET] I think it's a good
[5:15:07 PM ET] wear the
[5:15:07 PM ET] package.
[5:15:07 PM ET] itself outside of the high efficiency equipment package
[5:15:07 PM ET] and
[5:15:08 PM ET] Well, what do
[5:15:08 PM ET] you like?
[5:15:11 PM ET] at the aesthetics of the box, and we have to do the
[5:15:11 PM ET] such
[5:15:12 PM ET] really looking at the aesthetics of the box we have talked about
[5:15:12 PM ET] about
[5:15:12 PM ET] this
[5:15:14 PM ET] before.
[5:15:16 PM ET] this before but it's over two thousand
[5:15:17 PM ET] Is over 2,000 chip away restaurants are over 10 years
[5:15:18 PM ET] old
[5:15:18 PM ET] how much
[5:15:18 PM ET] of
[5:15:19 PM ET] an
[5:15:20 PM ET] chipotle restaurants or over ten years old how much of an opportunity
[5:15:20 PM ET] opportunity?
[5:15:20 PM ET] both
[5:15:22 PM ET] the
[5:15:22 PM ET] of
[5:15:22 PM ET] touches
[5:15:23 PM ET] more
[5:15:24 PM ET] perspective might have really been a lot of the
[5:15:25 PM ET] from both the employee and the customer perspective
[5:15:25 PM ET] refresh gives it to the same
[5:15:26 PM ET] give
[5:15:27 PM ET] you a
[5:15:27 PM ET] that bit
[5:15:27 PM ET] because of
[5:15:28 PM ET] a vast
[5:15:28 PM ET] majority
[5:15:28 PM ET] perspective might a refresh give you
[5:15:28 PM ET] of
[5:15:29 PM ET] Chipotle they
[5:15:29 PM ET] make
[5:15:29 PM ET] are
[5:15:30 PM ET] may
[5:15:30 PM ET] not
[5:15:30 PM ET] die
[5:15:30 PM ET] dying
[5:15:30 PM ET] in
[5:15:31 PM ET] any.
[5:15:31 PM ET] of that
[5:15:31 PM ET] i say that because the vast majority of chipotle customers they might not
[5:15:32 PM ET] else that they
[5:15:32 PM ET] actually
[5:15:32 PM ET] come
[5:15:33 PM ET] to you
[5:15:33 PM ET] as
[5:15:33 PM ET] long they
[5:15:34 PM ET] that would have.
[5:15:35 PM ET] not dine in your restaurants but they actually come to your restaurants whether they order on premise
[5:15:35 PM ET] I understand
[5:15:35 PM ET] will take
[5:15:36 PM ET] picked up a
[5:15:36 PM ET] digital
[5:15:37 PM ET] word, so that must be a digital digital
[5:15:38 PM ET] very important
[5:15:38 PM ET] touch
[5:15:39 PM ET] point.
[5:15:40 PM ET] or pick up a digital order so that must be a very important touch point
[5:15:40 PM ET] you know, a lot of
[5:15:40 PM ET] people
[5:15:41 PM ET] so as
[5:15:41 PM ET] you begin to think about the fact that you have
[5:15:42 PM ET] begun to
[5:15:42 PM ET] the
[5:15:43 PM ET] stage
[5:15:43 PM ET] you
[5:15:43 PM ET] know
[5:15:44 PM ET] the
[5:15:44 PM ET] process
[5:15:44 PM ET] for a lot of people so as you've begun the stage gate the process
[5:15:44 PM ET] and comes
[5:15:44 PM ET] terms
[5:15:45 PM ET] of
[5:15:45 PM ET] it
[5:15:45 PM ET] refash
[5:15:46 PM ET] how big is
[5:15:46 PM ET] even I think that's a good
[5:15:47 PM ET] know what they
[5:15:47 PM ET] do you
[5:15:48 PM ET] think it might
[5:15:48 PM ET] be
[5:15:48 PM ET] the
[5:15:49 PM ET] to
[5:15:49 PM ET] terms of refreshes how big of an opportunity do you think
[5:15:49 PM ET] modernise the
[5:15:50 PM ET] brand
[5:15:50 PM ET] of the
[5:15:51 PM ET] it might be to modernize the brand further
[5:15:51 PM ET] brand
[5:15:52 PM ET] money.
[5:15:53 PM ET] Thank you.
[5:15:53 PM ET] um I
[5:15:53 PM ET] think it was a very good
[5:15:53 PM ET] could be little bit of
[5:15:54 PM ET] a
[5:15:54 PM ET] really good
[5:15:55 PM ET] opportunity for
[5:15:55 PM ET] the
[5:15:55 PM ET] hi john thank you i think it could be a really big opportunity for the brand
[5:15:56 PM ET] brand
[5:15:56 PM ET] one of the
[5:15:56 PM ET] barely
[5:15:57 PM ET] early
[5:15:57 PM ET] days
[5:15:57 PM ET] of
[5:15:58 PM ET] we're in the very early days of testing
[5:15:58 PM ET] testing,
[5:15:59 PM ET] um
[5:15:59 PM ET] a group of
[5:16:00 PM ET] rastolites here and a
[5:16:00 PM ET] in
[5:16:01 PM ET] California
[5:16:01 PM ET] Florida
[5:16:02 PM ET] and
[5:16:03 PM ET] Texas.
[5:16:03 PM ET] a group of restaurants here in california florida and texas
[5:16:03 PM ET] I was
[5:16:04 PM ET] almost
[5:16:04 PM ET] done
[5:16:05 PM ET] the
[5:16:05 PM ET] I checked
[5:16:06 PM ET] this
[5:16:06 PM ET] up and
[5:16:06 PM ET] was
[5:16:07 PM ET] running.
[5:16:07 PM ET] we're almost through we're done with california texas is up and running
[5:16:07 PM ET] I think
[5:16:07 PM ET] then
[5:16:07 PM ET] four is
[5:16:08 PM ET] still an early
[5:16:08 PM ET] days of the
[5:16:09 PM ET] remote
[5:16:10 PM ET] i think florida is still in early days of the remodel program
[5:16:10 PM ET] program.
[5:16:10 PM ET] and what we're looking
[5:16:11 PM ET] to
[5:16:11 PM ET] do
[5:16:11 PM ET] is
[5:16:11 PM ET] really
[5:16:12 PM ET] razz
[5:16:12 PM ET] a
[5:16:12 PM ET] back some of
[5:16:12 PM ET] the
[5:16:12 PM ET] like
[5:16:13 PM ET] legacy
[5:16:13 PM ET] a thing
[5:16:13 PM ET] rash
[5:16:13 PM ET] rats
[5:16:14 PM ET] that
[5:16:14 PM ET] than
[5:16:14 PM ET] and what we're looking to do is really resurrect some of the legacy restaurants that are
[5:16:14 PM ET] are, let's call
[5:16:15 PM ET] it
[5:16:15 PM ET] the
[5:16:15 PM ET] first
[5:16:15 PM ET] one
[5:16:16 PM ET] 1,000
[5:16:16 PM ET] restaurants
[5:16:17 PM ET] we
[5:16:18 PM ET] built.
[5:16:18 PM ET] in
[5:16:18 PM ET] a bunch of
[5:16:19 PM ET] brand
[5:16:19 PM ET] uh
[5:16:19 PM ET] gosh,
[5:16:19 PM ET] let's call it the first one thousand restaurants we built
[5:16:19 PM ET] now
[5:16:20 PM ET] over, you
[5:16:20 PM ET] know
[5:16:21 PM ET] 20, 30 years
[5:16:22 PM ET] I was like, I'm not sure if I can do
[5:16:22 PM ET] in the brand gosh now over twenty thirty years ago
[5:16:22 PM ET] it
[5:16:22 PM ET] And what we're looking
[5:16:22 PM ET] to
[5:16:23 PM ET] do is bring
[5:16:23 PM ET] them
[5:16:23 PM ET] up
[5:16:23 PM ET] to
[5:16:24 PM ET] date
[5:16:24 PM ET] more than a
[5:16:25 PM ET] open
[5:16:25 PM ET] for
[5:16:25 PM ET] them that
[5:16:26 PM ET] more
[5:16:26 PM ET] modern, more
[5:16:27 PM ET] what we're looking to do is bring them up to date more open format more modern more
[5:16:27 PM ET] differentiated
[5:16:27 PM ET] differentiated,
[5:16:28 PM ET] we
[5:16:28 PM ET] think there's
[5:16:28 PM ET] a
[5:16:29 PM ET] strategic
[5:16:29 PM ET] opportunity, we
[5:16:29 PM ET] we're
[5:16:30 PM ET] saying
[5:16:30 PM ET] seeing early
[5:16:31 PM ET] signs that
[5:16:31 PM ET] give
[5:16:31 PM ET] we think there's a strategic opportunity we're seeing early signs that give us
[5:16:31 PM ET] us
[5:16:32 PM ET] confidence that we're going to be able to do
[5:16:32 PM ET] we're
[5:16:32 PM ET] on the
[5:16:32 PM ET] right
[5:16:33 PM ET] confidence that we're on the right track
[5:16:34 PM ET] track.
[5:16:34 PM ET] Uh but we
[5:16:35 PM ET] but we will
[5:16:35 PM ET] all
[5:16:35 PM ET] we'll have
[5:16:35 PM ET] more
[5:16:35 PM ET] to
[5:16:36 PM ET] say
[5:16:36 PM ET] the
[5:16:37 PM ET] probably in the middle of the
[5:16:37 PM ET] key
[5:16:37 PM ET] one or
[5:16:38 PM ET] anything's
[5:16:38 PM ET] and
[5:16:38 PM ET] how
[5:16:38 PM ET] he think about
[5:16:39 PM ET] a
[5:16:39 PM ET] we
[5:16:39 PM ET] remodel
[5:16:40 PM ET] have more to say in the probably in the q1 earnings call and how we think about a remodel
[5:16:40 PM ET] program
[5:16:40 PM ET] if you
[5:16:41 PM ET] will, or a
[5:16:41 PM ET] remote
[5:16:41 PM ET] as
[5:16:42 PM ET] strategy,
[5:16:42 PM ET] but
[5:16:42 PM ET] we think about a
[5:16:42 PM ET] around the
[5:16:43 PM ET] right
[5:16:43 PM ET] program if you will or a remodel strategy but we think we're on the right track
[5:16:44 PM ET] track
[5:16:44 PM ET] We know there's not a
[5:16:45 PM ET] opportunity to
[5:16:46 PM ET] make,
[5:16:46 PM ET] the
[5:16:47 PM ET] environment
[5:16:47 PM ET] that more
[5:16:47 PM ET] a
[5:16:48 PM ET] appealing
[5:16:48 PM ET] uh
[5:16:48 PM ET] we know there's an opportunity to make the environment more appealing
[5:16:48 PM ET] soften up the
[5:16:49 PM ET] environment a
[5:16:50 PM ET] soften up the environment a bit
[5:16:50 PM ET] bit
[5:16:50 PM ET] and
[5:16:51 PM ET] make
[5:16:51 PM ET] the
[5:16:51 PM ET] consumer
[5:16:51 PM ET] feel
[5:16:51 PM ET] more
[5:16:52 PM ET] welcome and
[5:16:52 PM ET] a
[5:16:52 PM ET] our
[5:16:53 PM ET] and make the consumer feel more welcome in our restaurants
[5:16:53 PM ET] restaurants.
[5:16:55 PM ET] thank you
[5:16:58 PM ET] Thank you.
[5:16:59 PM ET] I think it's a very good
[5:16:59 PM ET] US
[5:17:00 PM ET] bait
[5:17:00 PM ET] Me
[5:17:00 PM ET] thank you the next question comes from peter saleh with
[5:17:01 PM ET] u s bank btig
[5:17:01 PM ET] the
[5:17:01 PM ET] TIG.
[5:17:01 PM ET] Please
[5:17:01 PM ET] go
[5:17:02 PM ET] please go ahead
[5:17:03 PM ET] ahead
[5:17:04 PM ET] thanks
[5:17:05 PM ET] for
[5:17:05 PM ET] taking the
[5:17:06 PM ET] question
[5:17:06 PM ET] Scar
[5:17:07 PM ET] you
[5:17:07 PM ET] just
[5:17:08 PM ET] mentioned
[5:17:08 PM ET] great thanks for taking the question scott
[5:17:09 PM ET] the
[5:17:09 PM ET] a
[5:17:09 PM ET] great
[5:17:10 PM ET] uh
[5:17:10 PM ET] LTO
[5:17:11 PM ET] line
[5:17:11 PM ET] up
[5:17:11 PM ET] you just mentioned a great lto lineup
[5:17:11 PM ET] for
[5:17:13 PM ET] 2027
[5:17:13 PM ET] I just
[5:17:14 PM ET] trying
[5:17:14 PM ET] to
[5:17:14 PM ET] understand
[5:17:15 PM ET] if
[5:17:15 PM ET] you
[5:17:15 PM ET] guys can
[5:17:15 PM ET] help
[5:17:16 PM ET] us
[5:17:16 PM ET] out
[5:17:16 PM ET] for twenty twenty seven just trying to understand if you guys can help us out
[5:17:16 PM ET] with
[5:17:17 PM ET] with
[5:17:17 PM ET] how
[5:17:17 PM ET] many of us
[5:17:18 PM ET] those
[5:17:18 PM ET] out
[5:17:18 PM ET] LTOs
[5:17:19 PM ET] next
[5:17:19 PM ET] year will
[5:17:20 PM ET] how many of those ltos next year will be
[5:17:20 PM ET] be
[5:17:20 PM ET] at
[5:17:20 PM ET] new
[5:17:21 PM ET] products
[5:17:22 PM ET] new products versus
[5:17:22 PM ET] versus
[5:17:23 PM ET] uh is
[5:17:23 PM ET] this thing
[5:17:23 PM ET] out
[5:17:23 PM ET] that
[5:17:24 PM ET] are
[5:17:24 PM ET] I
[5:17:24 PM ET] coming
[5:17:25 PM ET] back
[5:17:25 PM ET] to
[5:17:25 PM ET] the
[5:17:26 PM ET] existing ltos that are coming back to the menu
[5:17:26 PM ET] menu.
[5:17:28 PM ET] Um yes
[5:17:29 PM ET] a
[5:17:29 PM ET] great
[5:17:29 PM ET] question
[5:17:29 PM ET] for
[5:17:30 PM ET] you,
[5:17:30 PM ET] so
[5:17:30 PM ET] we'll
[5:17:30 PM ET] bring
[5:17:30 PM ET] in
[5:17:31 PM ET] some
[5:17:31 PM ET] yeah it's a great question
[5:17:31 PM ET] new
[5:17:32 PM ET] innovation. You'll
[5:17:32 PM ET] see on
[5:17:32 PM ET] the
[5:17:33 PM ET] counter,
[5:17:33 PM ET] you
[5:17:33 PM ET] will
[5:17:33 PM ET] see
[5:17:33 PM ET] to on
[5:17:33 PM ET] the
[5:17:34 PM ET] counter
[5:17:34 PM ET] peter so we'll bring in some new innovation you'll see on the calendar well you won't see it on the calendar but
[5:17:34 PM ET] but
[5:17:34 PM ET] you
[5:17:34 PM ET] see
[5:17:35 PM ET] as
[5:17:35 PM ET] you can't do
[5:17:35 PM ET] you'll see it as we
[5:17:35 PM ET] as
[5:17:36 PM ET] we
[5:17:36 PM ET] lost
[5:17:36 PM ET] those
[5:17:37 PM ET] products in
[5:17:37 PM ET] the
[5:17:37 PM ET] marketplace and then
[5:17:38 PM ET] you'll
[5:17:38 PM ET] see
[5:17:38 PM ET] some
[5:17:38 PM ET] tried
[5:17:39 PM ET] and true
[5:17:39 PM ET] to
[5:17:39 PM ET] save
[5:17:40 PM ET] at
[5:17:40 PM ET] as we launch those products in the marketplace and then you'll see some tried and true favorites
[5:17:40 PM ET] the I
[5:17:41 PM ET] items
[5:17:41 PM ET] that
[5:17:41 PM ET] we
[5:17:41 PM ET] know
[5:17:42 PM ET] consumers
[5:17:42 PM ET] I think I
[5:17:42 PM ET] because
[5:17:42 PM ET] they
[5:17:43 PM ET] to do
[5:17:43 PM ET] can
[5:17:44 PM ET] wa
[5:17:44 PM ET] bring them
[5:17:44 PM ET] items that we know consumers want because they tell us daily to bring them back
[5:17:46 PM ET] I we
[5:17:46 PM ET] and so we have
[5:17:47 PM ET] out the counter to
[5:17:48 PM ET] have
[5:17:48 PM ET] about
[5:17:48 PM ET] four
[5:17:48 PM ET] center of
[5:17:49 PM ET] the
[5:17:49 PM ET] to plate
[5:17:50 PM ET] ltos
[5:17:50 PM ET] and
[5:17:51 PM ET] then
[5:17:51 PM ET] what
[5:17:51 PM ET] setting up the calendar to have about four center of the plate ltos and then
[5:17:51 PM ET] could
[5:17:51 PM ET] I deal
[5:17:52 PM ET] lay
[5:17:52 PM ET] lead into
[5:17:52 PM ET] two
[5:17:52 PM ET] his
[5:17:53 PM ET] eyes
[5:17:53 PM ET] we'll continue to lean into sides dips
[5:17:53 PM ET] I'm not going to let you get
[5:17:54 PM ET] and
[5:17:54 PM ET] I
[5:17:54 PM ET] we're
[5:17:55 PM ET] gonna really
[5:17:55 PM ET] be a
[5:17:55 PM ET] little
[5:17:56 PM ET] put it
[5:17:57 PM ET] was a bit of a
[5:17:57 PM ET] in the
[5:17:57 PM ET] upcoming
[5:17:58 PM ET] I am not a
[5:17:58 PM ET] and we're going to really be a little more front footed on beverage innovation in the upcoming year
[5:17:58 PM ET] year, we
[5:17:59 PM ET] think there's
[5:17:59 PM ET] a
[5:17:59 PM ET] really
[5:17:59 PM ET] way
[5:18:02 PM ET] race to
[5:18:03 PM ET] I am very happy to be able to do it.
[5:18:03 PM ET] we think there's a really strategic opportunity for our brand
[5:18:03 PM ET] what to write is it's a me for
[5:18:04 PM ET] way
[5:18:04 PM ET] I am a very good
[5:18:04 PM ET] I'm going to go to the next
[5:18:04 PM ET] I
[5:18:04 PM ET] with
[5:18:05 PM ET] our
[5:18:05 PM ET] beverage
[5:18:05 PM ET] partners
[5:18:06 PM ET] to drive incidents in a meaningful way through our partnerships with our beverage partners
[5:18:06 PM ET] and I
[5:18:07 PM ET] I'm not sure if I can do
[5:18:08 PM ET] Oh you
[5:18:09 PM ET] I am not going to be able to do
[5:18:10 PM ET] I'll see you
[5:18:10 PM ET] i get
[5:18:10 PM ET] this
[5:18:10 PM ET] all the
[5:18:11 PM ET] so you'll see more of that but i don't want you to think that lto and i get this all the time
[5:18:11 PM ET] time
[5:18:11 PM ET] in
[5:18:12 PM ET] additional
[5:18:12 PM ET] complexity
[5:18:13 PM ET] necessarily
[5:18:13 PM ET] for our
[5:18:14 PM ET] rash
[5:18:14 PM ET] to
[5:18:15 PM ET] teams I should
[5:18:15 PM ET] the
[5:18:15 PM ET] plate
[5:18:15 PM ET] means additional complexity necessarily for our restaurant teams
[5:18:16 PM ET] played
[5:18:17 PM ET] lto
[5:18:17 PM ET] be right
[5:18:17 PM ET] a
[5:18:18 PM ET] sauce
[5:18:18 PM ET] change
[5:18:18 PM ET] on
[5:18:18 PM ET] our
[5:18:19 PM ET] core
[5:18:19 PM ET] our center of the plate ltos are really just a soft change on our core protein
[5:18:20 PM ET] protein I
[5:18:20 PM ET] think's
[5:18:20 PM ET] are
[5:18:21 PM ET] like doing
[5:18:21 PM ET] that
[5:18:21 PM ET] with
[5:18:21 PM ET] ease
[5:18:22 PM ET] in our
[5:18:22 PM ET] restaurants
[5:18:22 PM ET] and
[5:18:23 PM ET] to
[5:18:23 PM ET] trade
[5:18:24 PM ET] from one to the
[5:18:24 PM ET] our teams are executing that with ease in our restaurants and transition from one to the next
[5:18:24 PM ET] next
[5:18:25 PM ET] is
[5:18:25 PM ET] more
[5:18:26 PM ET] simple.
[5:18:26 PM ET] than
[5:18:26 PM ET] you
[5:18:26 PM ET] would
[5:18:27 PM ET] find
[5:18:27 PM ET] in
[5:18:27 PM ET] most
[5:18:28 PM ET] brands that
[5:18:28 PM ET] have
[5:18:28 PM ET] an L
[5:18:29 PM ET] LTO
[5:18:29 PM ET] is more simple than you would find in most brands
[5:18:29 PM ET] O strategy.
[5:18:29 PM ET] that have an lto strategy so
[5:18:30 PM ET] So,
[5:18:30 PM ET] don't
[5:18:30 PM ET] be
[5:18:31 PM ET] discouraged
[5:18:31 PM ET] by
[5:18:31 PM ET] the
[5:18:32 PM ET] pace of
[5:18:32 PM ET] I think that's the only thing that
[5:18:33 PM ET] don't be discouraged by the pace of innovation there
[5:18:34 PM ET] I want to
[5:18:34 PM ET] put
[5:18:34 PM ET] forward
[5:18:34 PM ET] products
[5:18:35 PM ET] that
[5:18:35 PM ET] I'm not sure if I can do
[5:18:35 PM ET] are on
[5:18:36 PM ET] trend on
[5:18:36 PM ET] market
[5:18:37 PM ET] on
[5:18:37 PM ET] brand
[5:18:37 PM ET] and
[5:18:37 PM ET] that
[5:18:38 PM ET] just know that we're gonna put forward products that are on trend on market on brand
[5:18:38 PM ET] will
[5:18:38 PM ET] drive
[5:18:38 PM ET] to
[5:18:38 PM ET] the
[5:18:39 PM ET] and that will drive demand
[5:18:39 PM ET] demand
[5:18:39 PM ET] and
[5:18:40 PM ET] great
[5:18:40 PM ET] that
[5:18:41 PM ET] I'm not sure if I can do
[5:18:41 PM ET] and create value we've learned that
[5:18:43 PM ET] our consumers are looking at value a different way
[5:18:44 PM ET] I
[5:18:44 PM ET] the other
[5:18:44 PM ET] way they
[5:18:44 PM ET] look
[5:18:45 PM ET] at
[5:18:45 PM ET] our consumers are looking at value in different ways price isn't the only way they look at value
[5:18:46 PM ET] value it
[5:18:46 PM ET] look
[5:18:46 PM ET] at
[5:18:46 PM ET] you
[5:18:46 PM ET] know,
[5:18:47 PM ET] innovation
[5:18:47 PM ET] then
[5:18:48 PM ET] innovation, is a
[5:18:49 PM ET] really
[5:18:49 PM ET] que
[5:18:49 PM ET] they look at innovation menu innovation is a really meaningful point
[5:18:50 PM ET] point
[5:18:50 PM ET] in
[5:18:50 PM ET] knew about
[5:18:51 PM ET] that you
[5:18:51 PM ET] in the overall value equation
[5:18:51 PM ET] I am a very good
[5:18:53 PM ET] you
[5:18:54 PM ET] very
[5:18:54 PM ET] thank you very much
[5:18:54 PM ET] Yeah, I can't use
[5:19:07 PM ET] Let's
[5:19:07 PM ET] goes to the next
[5:19:08 PM ET] you may
[5:19:10 PM ET] the next question comes from andrew charles with td cowen
[5:19:11 PM ET] please go ahead
[5:19:12 PM ET] Oh, he had
[5:19:13 PM ET] Thank
[5:19:14 PM ET] you talk
[5:19:15 PM ET] talks about high 3% of
[5:19:15 PM ET] sales
[5:19:15 PM ET] spent
[5:19:16 PM ET] great thank you you talked about high three percent of sales spent on marketing
[5:19:18 PM ET] marketing my marketing
[5:19:18 PM ET] fourth quarter
[5:19:18 PM ET] I'm
[5:19:20 PM ET] they
[5:19:21 PM ET] the four
[5:19:21 PM ET] or plan for marketing in the fourth quarter and i'm curious with fernando in place for the full quarter
[5:19:21 PM ET] uh
[5:19:21 PM ET] order,
[5:19:22 PM ET] you!
[5:19:22 PM ET] should expect this to be
[5:19:22 PM ET] with
[5:19:22 PM ET] a fair
[5:19:22 PM ET] run,
[5:19:23 PM ET] raid for
[5:19:23 PM ET] the first
[5:19:23 PM ET] half,
[5:19:23 PM ET] steps
[5:19:24 PM ET] of
[5:19:24 PM ET] 2020
[5:19:24 PM ET] Kevin be a
[5:19:25 PM ET] should we expect this to be a fair run rate for the first half of twenty twenty seven and beyond
[5:19:25 PM ET] and
[5:19:26 PM ET] answer.
[5:19:26 PM ET] me at
[5:19:27 PM ET] to
[5:19:27 PM ET] the
[5:19:27 PM ET] point
[5:19:27 PM ET] here
[5:19:27 PM ET] where
[5:19:28 PM ET] we're
[5:19:28 PM ET] going to kind of
[5:19:29 PM ET] we haven't gotten to the point yet where we're going
[5:19:30 PM ET] an idea of how
[5:19:31 PM ET] has
[5:19:31 PM ET] it's gonna be you know
[5:19:33 PM ET] kind of give an idea of how it's gonna be you know from quarter to quarter
[5:19:33 PM ET] from quarter to quarter next year, but it's got set
[5:19:33 PM ET] said
[5:19:35 PM ET] that
[5:19:36 PM ET] will reapers
[5:19:36 PM ET] that rage or
[5:19:37 PM ET] around
[5:19:37 PM ET] year but as scott said earlier we're somewhere in that low three percent range or around three
[5:19:38 PM ET] three percent for next
[5:19:39 PM ET] year
[5:19:39 PM ET] or
[5:19:39 PM ET] ebb and
[5:19:39 PM ET] all
[5:19:40 PM ET] as
[5:19:40 PM ET] we
[5:19:40 PM ET] for next year but we'll ebb and flow that as we see
[5:19:41 PM ET] see
[5:19:42 PM ET] fit uh
[5:19:42 PM ET] whether
[5:19:42 PM ET] a
[5:19:42 PM ET] when
[5:19:43 PM ET] lines with you
[5:19:44 PM ET] in from a
[5:19:44 PM ET] you
[5:19:45 PM ET] know
[5:19:45 PM ET] he is
[5:19:45 PM ET] there for
[5:19:45 PM ET] it
[5:19:45 PM ET] fit whether it aligns with what we're doing from a
[5:19:46 PM ET] or from
[5:19:46 PM ET] a
[5:19:46 PM ET] big
[5:19:47 PM ET] advertising
[5:19:47 PM ET] standpoint where I
[5:19:48 PM ET] I'm
[5:19:48 PM ET] tv standpoint or from a big advertising standpoint around when
[5:19:48 PM ET] when
[5:19:48 PM ET] certain
[5:19:49 PM ET] LTO
[5:19:49 PM ET] is
[5:19:49 PM ET] you
[5:19:49 PM ET] you're
[5:19:49 PM ET] certain ltos drop
[5:19:51 PM ET] different things that we want to make
[5:19:52 PM ET] that
[5:19:52 PM ET] we believe
[5:19:52 PM ET] could
[5:19:52 PM ET] a
[5:19:53 PM ET] great
[5:19:53 PM ET] return
[5:19:53 PM ET] or different investments that we wanna make that we believe we can get a great return from
[5:19:53 PM ET] not
[5:19:56 PM ET] helpful and then
[5:19:56 PM ET] just
[5:19:56 PM ET] other than
[5:19:57 PM ET] price
[5:19:57 PM ET] so I
[5:19:57 PM ET] as
[5:19:58 PM ET] well,
[5:19:58 PM ET] we
[5:19:58 PM ET] know
[5:19:58 PM ET] there
[5:19:58 PM ET] is
[5:19:58 PM ET] the
[5:19:58 PM ET] okay that's helpful and then just on the pricing side as well we know there was
[5:19:58 PM ET] Rams
[5:19:59 PM ET] throughout
[5:19:59 PM ET] this
[5:20:00 PM ET] year.
[5:20:00 PM ET] Either tap
[5:20:00 PM ET] with
[5:20:01 PM ET] the
[5:20:01 PM ET] between
[5:20:02 PM ET] I have a lot of
[5:20:02 PM ET] think
[5:20:02 PM ET] I I'm going to go to the
[5:20:03 PM ET] I am a very good
[5:20:03 PM ET] a ramp throughout this year are you guys happy with the two percent rate do this as
[5:20:03 PM ET] don't
[5:20:03 PM ET] will be able to do
[5:20:04 PM ET] you talk
[5:20:04 PM ET] talked about
[5:20:04 PM ET] I think I have
[5:20:05 PM ET] I'm going to go to the
[5:20:05 PM ET] I have
[5:20:06 PM ET] Lord of
[5:20:06 PM ET] to
[5:20:07 PM ET] is it insulation for
[5:20:07 PM ET] sustainable level i know you talked about adam for instance low to mid single digit inflation for twenty twenty
[5:20:08 PM ET] I am not going to be able to do
[5:20:08 PM ET] I'm go the next
[5:20:09 PM ET] I apply to the
[5:20:09 PM ET] you
[5:20:09 PM ET] and
[5:20:09 PM ET] of price
[5:20:10 PM ET] was
[5:20:10 PM ET] look
[5:20:10 PM ET] seven what's kind of your philosophy on pricing as you look ahead
[5:20:11 PM ET] ahead.
[5:20:11 PM ET] you.
[5:20:12 PM ET] Yeah, yeah,
[5:20:12 PM ET] really
[5:20:12 PM ET] hasn't
[5:20:12 PM ET] to
[5:20:13 PM ET] change.
[5:20:13 PM ET] I mean I'd
[5:20:14 PM ET] they, you know,
[5:20:15 PM ET] all
[5:20:15 PM ET] woo
[5:20:15 PM ET] yeah i mean it really hasn't changed i mean i'd say
[5:20:16 PM ET] why when I went continue to
[5:20:17 PM ET] look
[5:20:17 PM ET] at
[5:20:17 PM ET] you know
[5:20:17 PM ET] I didn't do
[5:20:18 PM ET] price
[5:20:18 PM ET] in
[5:20:19 PM ET] but
[5:20:19 PM ET] we
[5:20:19 PM ET] you know over the long run we're gonna continue to look at utilizing price offset
[5:20:19 PM ET] want to do
[5:20:19 PM ET] it in
[5:20:20 PM ET] a
[5:20:20 PM ET] very
[5:20:21 PM ET] as a
[5:20:21 PM ET] I'm not sure if I can do
[5:20:21 PM ET] inflation but we wanna do it in a very measured patient way
[5:20:22 PM ET] I'm not
[5:20:23 PM ET] is
[5:20:23 PM ET] and i say that because if there's
[5:20:23 PM ET] the
[5:20:23 PM ET] if there's
[5:20:23 PM ET] you
[5:20:23 PM ET] know,
[5:20:24 PM ET] temporary
[5:20:24 PM ET] or
[5:20:25 PM ET] transitory
[5:20:26 PM ET] increases in
[5:20:26 PM ET] a
[5:20:26 PM ET] which you
[5:20:28 PM ET] you know temporary or transitory increases in inflation that we know is only gonna last
[5:20:28 PM ET] oil last a few
[5:20:28 PM ET] last a few months
[5:20:29 PM ET] We are
[5:20:31 PM ET] utilize that all the days that I'll
[5:20:31 PM ET] We won't utilize
[5:20:32 PM ET] those
[5:20:32 PM ET] cars
[5:20:32 PM ET] to
[5:20:33 PM ET] So it's
[5:20:33 PM ET] not
[5:20:33 PM ET] we won't utilize that opportunity of course to pass it on we'll we'll eat those costs and so it's more of that
[5:20:34 PM ET] want
[5:20:34 PM ET] longer
[5:20:34 PM ET] longer term
[5:20:34 PM ET] term, and then
[5:20:35 PM ET] you get
[5:20:35 PM ET] and
[5:20:35 PM ET] inflation but
[5:20:36 PM ET] hey
[5:20:36 PM ET] know you
[5:20:36 PM ET] in the
[5:20:37 PM ET] primarily in the past
[5:20:37 PM ET] past
[5:20:37 PM ET] it's
[5:20:38 PM ET] been
[5:20:38 PM ET] go to
[5:20:38 PM ET] that
[5:20:38 PM ET] two
[5:20:38 PM ET] percent,
[5:20:39 PM ET] range, and
[5:20:39 PM ET] so we hope to
[5:20:40 PM ET] get it
[5:20:40 PM ET] back
[5:20:40 PM ET] to
[5:20:40 PM ET] that
[5:20:41 PM ET] sooner rather
[5:20:41 PM ET] than
[5:20:41 PM ET] later
[5:20:41 PM ET] it's
[5:20:42 PM ET] just
[5:20:42 PM ET] not
[5:20:42 PM ET] it's been closer to that two percent range and so we hope to get back to that
[5:20:42 PM ET] looking
[5:20:42 PM ET] like
[5:20:42 PM ET] a
[5:20:43 PM ET] gonna
[5:20:43 PM ET] happen in
[5:20:44 PM ET] I think it's a very good
[5:20:45 PM ET] this
[5:20:45 PM ET] sooner rather than later it's just not looking like that's gonna happen in twenty twenty seven at this point
[5:20:46 PM ET] I think that's a good
[5:20:49 PM ET] Boy,
[5:20:49 PM ET] point of
[5:20:49 PM ET] to know
[5:20:49 PM ET] that
[5:20:49 PM ET] but we'll give more color on that as we get into next year
[5:20:50 PM ET] the
[5:20:50 PM ET] way
[5:20:50 PM ET] we're
[5:20:50 PM ET] rolling
[5:20:50 PM ET] out
[5:20:51 PM ET] price thing of
[5:20:51 PM ET] the
[5:20:51 PM ET] course
[5:20:52 PM ET] is
[5:20:52 PM ET] the
[5:20:52 PM ET] allows
[5:20:53 PM ET] but i think it's important to note that the way we're rolling out pricing across the system allows us
[5:20:56 PM ET] I like that by the
[5:20:56 PM ET] like
[5:20:56 PM ET] to measure pre and post net of control the impact of that price lift
[5:20:57 PM ET] I am a little bit of a
[5:20:57 PM ET] ex
[5:20:57 PM ET] and so we
[5:20:58 PM ET] think it's a very good
[5:20:59 PM ET] ensure we don't see resistance greater than we
[5:20:59 PM ET] they we
[5:21:00 PM ET] uh
[5:21:01 PM ET] wear a
[5:21:01 PM ET] to
[5:21:02 PM ET] flex
[5:21:02 PM ET] price
[5:21:03 PM ET] in up or
[5:21:03 PM ET] you
[5:21:03 PM ET] down
[5:21:03 PM ET] with
[5:21:04 PM ET] should and so we're able to flex pricing up or down
[5:21:04 PM ET] the tiny
[5:21:05 PM ET] all
[5:21:05 PM ET] the
[5:21:05 PM ET] s
[5:21:07 PM ET] discontinue altogether based on what we're seeing happening in the consumer environment
[5:21:07 PM ET] they don't have
[5:21:08 PM ET] in the Katuma dharma
[5:21:10 PM ET] or
[5:21:10 PM ET] day.
[5:21:10 PM ET] that's helpful thanks
[5:21:12 PM ET] I have a lot of
[5:21:15 PM ET] thank you the next question comes from brian harbour with morgan
[5:21:17 PM ET] stanley
[5:21:17 PM ET] I
[5:21:18 PM ET] I think that's the only thing that I've
[5:21:22 PM ET] yes thanks hi guys the
[5:21:22 PM ET] Hey
[5:21:23 PM ET] I think it's a very good
[5:21:24 PM ET] Yeah, yeah,
[5:21:25 PM ET] high efficiency equipment package is
[5:21:30 PM ET] Hey, hey, hey, hey, hey, hey,
[5:21:30 PM ET] does that comp list that you talked about sustain
[5:21:30 PM ET] Yeah, I think it's a good
[5:21:31 PM ET] that's
[5:21:35 PM ET] nicely i mean this has this been like an increasing contributor through the course
[5:21:36 PM ET] of this year to your
[5:21:40 PM ET] WHY
[5:21:40 PM ET] your same store sales is that what you expect in twenty seven as well
[5:21:41 PM ET] I think it's a very good
[5:21:42 PM ET] think it's a very good
[5:21:42 PM ET] that's the only thing that I've
[5:21:43 PM ET] think
[5:21:43 PM ET] that's
[5:21:43 PM ET] the
[5:21:43 PM ET] be a very good
[5:21:45 PM ET] yeah i mean expect it to continue to build so as we talked about on
[5:21:49 PM ET] the call or in the prepared comments we're at about seventeen hundred restaurants but as we said in the past
[5:21:49 PM ET] I where
[5:21:49 PM ET] I said, I'd rather take up
[5:21:50 PM ET] for
[5:21:50 PM ET] so
[5:21:53 PM ET] to really start to see that comp with coming fruition,
[5:21:53 PM ET] right
[5:21:53 PM ET] there the
[5:21:54 PM ET] takes a few months for us to really start to see that comp lift coming to fruition right the
[5:21:54 PM ET] teams have
[5:21:54 PM ET] got to
[5:21:54 PM ET] get
[5:21:54 PM ET] used
[5:21:54 PM ET] to
[5:21:55 PM ET] the
[5:21:55 PM ET] new
[5:21:55 PM ET] quote
[5:21:56 PM ET] and
[5:21:56 PM ET] then
[5:21:56 PM ET] it's
[5:21:57 PM ET] takes a while
[5:21:57 PM ET] for
[5:21:57 PM ET] the
[5:21:57 PM ET] guests to
[5:21:57 PM ET] really
[5:21:58 PM ET] see kind
[5:21:58 PM ET] of
[5:21:58 PM ET] teams have got to get used to the new equipment and then it takes a little while for the guests to really
[5:21:59 PM ET] see kind of that
[5:21:59 PM ET] that
[5:22:00 PM ET] better.
[5:22:00 PM ET] um
[5:22:02 PM ET] hospital
[5:22:02 PM ET] you know
[5:22:02 PM ET] taste
[5:22:02 PM ET] the
[5:22:02 PM ET] to
[5:22:02 PM ET] food
[5:22:02 PM ET] going
[5:22:03 PM ET] up
[5:22:03 PM ET] all
[5:22:03 PM ET] of
[5:22:03 PM ET] the
[5:22:03 PM ET] those
[5:22:03 PM ET] and
[5:22:03 PM ET] that better hospitality you know taste of food going up all of those elements
[5:22:04 PM ET] like a
[5:22:04 PM ET] little
[5:22:04 PM ET] bit
[5:22:04 PM ET] longer
[5:22:05 PM ET] I'm not sure if I can do
[5:22:05 PM ET] a little bit longer as well
[5:22:05 PM ET] so
[5:22:05 PM ET] there's
[5:22:05 PM ET] a
[5:22:05 PM ET] bit
[5:22:06 PM ET] of
[5:22:06 PM ET] a lag
[5:22:07 PM ET] and
[5:22:07 PM ET] so there's a bit of a lag and so
[5:22:07 PM ET] so
[5:22:07 PM ET] i
[5:22:07 PM ET] would
[5:22:07 PM ET] look
[5:22:08 PM ET] at
[5:22:08 PM ET] it as
[5:22:08 PM ET] you
[5:22:08 PM ET] even
[5:22:09 PM ET] though it
[5:22:09 PM ET] was
[5:22:09 PM ET] seventy
[5:22:10 PM ET] would look at it as even though we're through seventeen hundred restaurants
[5:22:11 PM ET] restaurants.
[5:22:11 PM ET] as well I
[5:22:11 PM ET] half
[5:22:12 PM ET] of
[5:22:12 PM ET] those
[5:22:13 PM ET] restaurants that
[5:22:13 PM ET] are
[5:22:13 PM ET] were
[5:22:13 PM ET] actually
[5:22:14 PM ET] know it's probably only half of those restaurants that we're actually seeing
[5:22:14 PM ET] I'm not sure if I can do it.
[5:22:14 PM ET] don't know.
[5:22:15 PM ET] twice
[5:22:15 PM ET] one
[5:22:15 PM ET] enough to
[5:22:16 PM ET] get
[5:22:16 PM ET] that
[5:22:17 PM ET] complicated so i expect us
[5:22:17 PM ET] to
[5:22:17 PM ET] continue
[5:22:18 PM ET] the
[5:22:18 PM ET] build and
[5:22:19 PM ET] everything
[5:22:19 PM ET] you know that have been in place long enough to get that accomplished so i expect this to continue to build
[5:22:19 PM ET] that
[5:22:19 PM ET] we
[5:22:19 PM ET] look
[5:22:19 PM ET] at
[5:22:20 PM ET] whether
[5:22:20 PM ET] it's
[5:22:20 PM ET] that
[5:22:20 PM ET] first
[5:22:21 PM ET] phase or
[5:22:21 PM ET] of
[5:22:21 PM ET] was
[5:22:21 PM ET] and everything that we look at whether it's that first phase of restaurants
[5:22:21 PM ET] I am not sure if I can do
[5:22:22 PM ET] don't
[5:22:22 PM ET] whatever
[5:22:22 PM ET] the
[5:22:22 PM ET] ones that have
[5:22:22 PM ET] kind
[5:22:22 PM ET] of
[5:22:23 PM ET] hit
[5:22:23 PM ET] that
[5:22:23 PM ET] two or
[5:22:23 PM ET] three
[5:22:24 PM ET] more two or
[5:22:24 PM ET] three
[5:22:25 PM ET] month
[5:22:25 PM ET] mark
[5:22:26 PM ET] was
[5:22:26 PM ET] those
[5:22:26 PM ET] comp
[5:22:26 PM ET] or the ones that have kinda hit that two or three mark two or three month mark
[5:22:27 PM ET] with
[5:22:27 PM ET] as
[5:22:27 PM ET] a
[5:22:27 PM ET] saying
[5:22:27 PM ET] that
[5:22:28 PM ET] I think that's the same
[5:22:29 PM ET] point
[5:22:30 PM ET] I am very happy to be able to do it.
[5:22:30 PM ET] I'm not sure if I can
[5:22:30 PM ET] those comp lifts have sustained in that couple hundred basis point range
[5:22:30 PM ET] think it's a very good
[5:22:32 PM ET] I think it's a very good
[5:22:33 PM ET] I think I have
[5:22:34 PM ET] so we're excited to continue to build on this because i think it'll build on our comps in twenty twenty seven and also in
[5:22:34 PM ET] twenty eight
[5:22:35 PM ET] I think it's a very good
[5:22:37 PM ET] I find out there is
[5:22:37 PM ET] as
[5:22:37 PM ET] well to
[5:22:37 PM ET] follow
[5:22:37 PM ET] I think I'll be able to do
[5:22:38 PM ET] as
[5:22:38 PM ET] we are seeing the
[5:22:38 PM ET] in
[5:22:39 PM ET] those
[5:22:39 PM ET] restaurants
[5:22:39 PM ET] yeah and an important note there as well to follow on is we're seeing in those restaurants
[5:22:39 PM ET] where we're
[5:22:40 PM ET] fully
[5:22:40 PM ET] really
[5:22:40 PM ET] where we're fully loaded
[5:22:41 PM ET] loaded.
[5:22:41 PM ET] Stronger
[5:22:41 PM ET] guesses that
[5:22:41 PM ET] is
[5:22:42 PM ET] fast as
[5:22:42 PM ET] score
[5:22:43 PM ET] Strawberry
[5:22:43 PM ET] tastes
[5:22:43 PM ET] of
[5:22:43 PM ET] food
[5:22:43 PM ET] load
[5:22:44 PM ET] scores,
[5:22:44 PM ET] and
[5:22:45 PM ET] better
[5:22:45 PM ET] through
[5:22:45 PM ET] stronger guest satisfaction scores stronger taste of food scores
[5:22:46 PM ET] throughput.
[5:22:46 PM ET] at
[5:22:46 PM ET] Max
[5:22:47 PM ET] 15,
[5:22:47 PM ET] which
[5:22:47 PM ET] tells
[5:22:47 PM ET] us
[5:22:47 PM ET] on
[5:22:47 PM ET] the
[5:22:48 PM ET] right
[5:22:48 PM ET] track and
[5:22:48 PM ET] as
[5:22:49 PM ET] that can be a
[5:22:49 PM ET] and better throughput at max fifteen which tells us we're on the right track and as that
[5:22:49 PM ET] the
[5:22:50 PM ET] to rule
[5:22:50 PM ET] out
[5:22:50 PM ET] to the
[5:22:50 PM ET] entire
[5:22:51 PM ET] system will continue to be a
[5:22:52 PM ET] scale
[5:22:52 PM ET] and
[5:22:52 PM ET] continues to roll out to the entire system we'll continue to scale and build
[5:22:53 PM ET] him.
[5:22:53 PM ET] visit.
[5:22:55 PM ET] Do you still have to do
[5:22:55 PM ET] like the
[5:22:55 PM ET] can't
[5:22:56 PM ET] can't do
[5:22:57 PM ET] okay great do you still expect
[5:23:00 PM ET] I am just yeah what I say I
[5:23:01 PM ET] kind of the mix dynamics that you've been seeing just within same store sales do you still expect
[5:23:02 PM ET] I am a man of the world.
[5:23:02 PM ET] that to continue
[5:23:03 PM ET] continuous
[5:23:04 PM ET] for
[5:23:04 PM ET] the
[5:23:05 PM ET] near term
[5:23:05 PM ET] I
[5:23:05 PM ET] do
[5:23:05 PM ET] so
[5:23:05 PM ET] make
[5:23:06 PM ET] them
[5:23:06 PM ET] and
[5:23:06 PM ET] tag in a
[5:23:06 PM ET] quarter for
[5:23:07 PM ET] example, was
[5:23:07 PM ET] yeah i mean for the near term do so mix impact in the quarter
[5:23:07 PM ET] about a
[5:23:08 PM ET] minus one
[5:23:08 PM ET] to
[5:23:09 PM ET] think it's a very good
[5:23:11 PM ET] for example was about a minus one point four percent it's still driven
[5:23:12 PM ET] Said
[5:23:13 PM ET] Driven by lower groups, which
[5:23:13 PM ET] is not a very
[5:23:13 PM ET] to
[5:23:14 PM ET] by lower group size which again is being driven by increased rewards engagement
[5:23:15 PM ET] the nature.
[5:23:15 PM ET] and you
[5:23:15 PM ET] know,
[5:23:15 PM ET] rewards
[5:23:16 PM ET] within the
[5:23:16 PM ET] tales
[5:23:16 PM ET] had
[5:23:17 PM ET] been growing
[5:23:17 PM ET] nicely
[5:23:17 PM ET] and grow
[5:23:18 PM ET] it round
[5:23:18 PM ET] what,
[5:23:19 PM ET] and you know rewards percent of sales has been growing nicely i think we're at around
[5:23:19 PM ET] 33 percent or
[5:23:20 PM ET] I think I'm not
[5:23:21 PM ET] thirty three percent or so right now we were at about a thirty or thirty one
[5:23:22 PM ET] now we were
[5:23:23 PM ET] every one
[5:23:23 PM ET] percent last year
[5:23:27 PM ET] at that same time nice improvement there's a thing that people coming in
[5:23:28 PM ET] at that same time and so seeing nice improvement there so think of that as people coming in and
[5:23:29 PM ET] But they mean
[5:23:29 PM ET] for
[5:23:31 PM ET] that
[5:23:31 PM ET] lowering
[5:23:31 PM ET] in
[5:23:32 PM ET] that
[5:23:32 PM ET] group
[5:23:32 PM ET] redeeming for free entrees or certain elements there that's lowering that group size
[5:23:32 PM ET] size.
[5:23:33 PM ET] and so
[5:23:33 PM ET] that
[5:23:33 PM ET] we
[5:23:34 PM ET] expect
[5:23:34 PM ET] to
[5:23:34 PM ET] continue,
[5:23:35 PM ET] especially as we
[5:23:36 PM ET] continuing to win and
[5:23:36 PM ET] it
[5:23:36 PM ET] on for
[5:23:36 PM ET] the
[5:23:37 PM ET] and so that we expect to continue especially as we continue to lean in on rewards
[5:23:37 PM ET] words
[5:23:37 PM ET] but we're also
[5:23:37 PM ET] the
[5:23:38 PM ET] seeing an
[5:23:38 PM ET] nice
[5:23:38 PM ET] offset
[5:23:39 PM ET] from extramed
[5:23:39 PM ET] for
[5:23:40 PM ET] example
[5:23:40 PM ET] So
[5:23:41 PM ET] still
[5:23:41 PM ET] up
[5:23:41 PM ET] what
[5:23:41 PM ET] about
[5:23:42 PM ET] we're also seeing a nice offset from extra meat for example so
[5:23:42 PM ET] money
[5:23:42 PM ET] still up about twenty percent
[5:23:47 PM ET] from the protein campaign that we launched in january we'll of course start to lap that this january
[5:23:48 PM ET] Anyway,
[5:23:48 PM ET] well the
[5:23:48 PM ET] same
[5:23:49 PM ET] you know all
[5:23:50 PM ET] but we're also seeing you know offsets in cilantro lime sauce
[5:23:50 PM ET] I'm not going to be able
[5:23:50 PM ET] had about a
[5:23:51 PM ET] I'm not going to be able
[5:23:51 PM ET] or
[5:23:51 PM ET] of
[5:23:51 PM ET] chili lime.
[5:23:52 PM ET] I think it's a very good
[5:23:52 PM ET] with
[5:23:53 PM ET] we only had about a month of chili lime chips but that was in there as well
[5:23:55 PM ET] but that was in as well and then of course family
[5:23:55 PM ET] But
[5:23:56 PM ET] then of course family meals but again
[5:23:56 PM ET] yeah.
[5:23:56 PM ET] I
[5:23:57 PM ET] expect
[5:23:57 PM ET] that
[5:23:57 PM ET] to be a very
[5:23:57 PM ET] know we're
[5:23:58 PM ET] rough
[5:23:58 PM ET] a
[5:23:58 PM ET] hundred
[5:23:59 PM ET] days at
[5:23:59 PM ET] a
[5:23:59 PM ET] point
[5:23:59 PM ET] right from
[5:24:00 PM ET] good.
[5:24:00 PM ET] the
[5:24:01 PM ET] i i expect that you know roughly hundred basis points
[5:24:02 PM ET] I
[5:24:02 PM ET] drag from group size to continue as we continue to lean into rewards
[5:24:02 PM ET] I don't
[5:24:03 PM ET] am a very good person.
[5:24:03 PM ET] the city, the family of the family is
[5:24:04 PM ET] I
[5:24:05 PM ET] it'll ebb and flow based off of some of this lto activity
[5:24:05 PM ET] okay.
[5:24:06 PM ET] of the
[5:24:10 PM ET] It is.
[5:24:13 PM ET] thank you the next question comes from john tower with citi
[5:24:14 PM ET] please go ahead
[5:24:16 PM ET] Ways he
[5:24:17 PM ET] Please go ahead and
[5:24:17 PM ET] Let's take a question.
[5:24:18 PM ET] First, if you speak to the
[5:24:18 PM ET] delivery that
[5:24:19 PM ET] great thanks for taking the question i'm curious if you could speak to the delivery business
[5:24:19 PM ET] ways
[5:24:20 PM ET] thought i
[5:24:22 PM ET] with any
[5:24:23 PM ET] channels yes you're saying with
[5:24:23 PM ET] what you saw in the quarter and frankly if there's any channel shifts you're seeing with consumers
[5:24:24 PM ET] considered
[5:24:24 PM ET] and
[5:24:24 PM ET] so very, very,
[5:24:25 PM ET] there
[5:24:25 PM ET] were any in
[5:24:25 PM ET] and it
[5:24:26 PM ET] nation is on a
[5:24:26 PM ET] and specifically are there any initiatives underway to
[5:24:26 PM ET] underway
[5:24:26 PM ET] to try
[5:24:27 PM ET] try and
[5:24:29 PM ET] tryin'. Ye builded by you,
[5:24:29 PM ET] uh
[5:24:29 PM ET] perception
[5:24:30 PM ET] with
[5:24:30 PM ET] to
[5:24:30 PM ET] consumers in
[5:24:31 PM ET] that
[5:24:31 PM ET] kennel
[5:24:31 PM ET] specific
[5:24:32 PM ET] you know build the value perception with consumers in that channel specifically
[5:24:33 PM ET] kind of
[5:24:33 PM ET] start with
[5:24:33 PM ET] just kind
[5:24:34 PM ET] of
[5:24:34 PM ET] what
[5:24:34 PM ET] we're
[5:24:34 PM ET] seeing I
[5:24:34 PM ET] a
[5:24:34 PM ET] mean
[5:24:35 PM ET] it
[5:24:35 PM ET] was kind
[5:24:35 PM ET] of
[5:24:35 PM ET] you
[5:24:36 PM ET] low
[5:24:36 PM ET] single digit kind
[5:24:37 PM ET] cart
[5:24:37 PM ET] yeah i i kinda start with just kinda what we're seeing i mean it was kind of a low single digit
[5:24:37 PM ET] but an
[5:24:39 PM ET] I want to see with
[5:24:39 PM ET] the
[5:24:40 PM ET] in terms of the
[5:24:41 PM ET] growth in the
[5:24:41 PM ET] comp but in all honesty it was the least in terms of growth
[5:24:41 PM ET] digital
[5:24:42 PM ET] channels
[5:24:42 PM ET] Order
[5:24:42 PM ET] ahead was
[5:24:42 PM ET] with
[5:24:43 PM ET] our
[5:24:43 PM ET] primary
[5:24:44 PM ET] growth, and there's a
[5:24:44 PM ET] lot
[5:24:44 PM ET] I don't
[5:24:44 PM ET] going
[5:24:45 PM ET] on in
[5:24:45 PM ET] there
[5:24:45 PM ET] especially
[5:24:45 PM ET] in the digital channels order ahead was our our primary grower i mean there's a lot of things going on in
[5:24:46 PM ET] around the
[5:24:47 PM ET] wards and a
[5:24:47 PM ET] scout
[5:24:47 PM ET] mentioned
[5:24:47 PM ET] earlier,
[5:24:48 PM ET] 50
[5:24:49 PM ET] 1500,
[5:24:49 PM ET] Chipotle
[5:24:49 PM ET] Lanes.
[5:24:49 PM ET] that's
[5:24:49 PM ET] driving
[5:24:49 PM ET] a
[5:24:50 PM ET] lot of
[5:24:50 PM ET] there especially around rewards and as scott mentioned earlier fifteen hundred chipotlanes that's driving a lot of
[5:24:50 PM ET] people
[5:24:50 PM ET] to
[5:24:51 PM ET] order a
[5:24:51 PM ET] people to order ahead
[5:24:51 PM ET] head. I
[5:24:51 PM ET] then
[5:24:51 PM ET] And
[5:24:52 PM ET] catering
[5:24:52 PM ET] actually
[5:24:52 PM ET] out-comped a
[5:24:53 PM ET] delivery as
[5:24:53 PM ET] then catering actually outcomp delivery as well
[5:24:54 PM ET] well.
[5:24:54 PM ET] a
[5:24:54 PM ET] delivery
[5:24:54 PM ET] is
[5:24:55 PM ET] still, you
[5:24:55 PM ET] know,
[5:24:55 PM ET] seeing
[5:24:55 PM ET] growth
[5:24:55 PM ET] on
[5:24:56 PM ET] a year over
[5:24:56 PM ET] of your
[5:24:56 PM ET] basis
[5:24:56 PM ET] just
[5:24:57 PM ET] not
[5:24:57 PM ET] as
[5:24:57 PM ET] much
[5:24:57 PM ET] the
[5:24:57 PM ET] other
[5:24:58 PM ET] digital
[5:24:58 PM ET] but delivery is still you know seeing growth on a year over year basis just not as much as the other digital channels
[5:24:59 PM ET] channels. God don't
[5:24:59 PM ET] know you
[5:24:59 PM ET] want
[5:24:59 PM ET] anything
[5:25:00 PM ET] to
[5:25:00 PM ET] the head.
[5:25:01 PM ET] Yeah, I think I
[5:25:01 PM ET] the Lord is a very good
[5:25:01 PM ET] important
[5:25:02 PM ET] still
[5:25:02 PM ET] a
[5:25:03 PM ET] huge
[5:25:03 PM ET] growth
[5:25:03 PM ET] scott don't know if you want anything to add yeah i delivery is still a huge growth channel
[5:25:04 PM ET] channel,
[5:25:04 PM ET] and
[5:25:04 PM ET] we
[5:25:04 PM ET] sent
[5:25:04 PM ET] a lot of
[5:25:05 PM ET] and we've seen a lot of growth
[5:25:05 PM ET] roads
[5:25:06 PM ET] over
[5:25:06 PM ET] the
[5:25:06 PM ET] over
[5:25:07 PM ET] o
[5:25:07 PM ET] the
[5:25:07 PM ET] last
[5:25:07 PM ET] week
[5:25:08 PM ET] over the last three quarters
[5:25:08 PM ET] quarters.
[5:25:08 PM ET] but you
[5:25:09 PM ET] know, we're
[5:25:09 PM ET] seeing
[5:25:09 PM ET] a
[5:25:09 PM ET] lot of
[5:25:10 PM ET] progress
[5:25:10 PM ET] with
[5:25:11 PM ET] loyalty i
[5:25:11 PM ET] think
[5:25:11 PM ET] loyalty
[5:25:12 PM ET] comes
[5:25:12 PM ET] are
[5:25:12 PM ET] up
[5:25:13 PM ET] but we're seeing a lot of progress with loyalty i think loyalty comps are up over
[5:25:13 PM ET] over
[5:25:13 PM ET] uh
[5:25:13 PM ET] in
[5:25:13 PM ET] rest
[5:25:14 PM ET] restaurant
[5:25:14 PM ET] camps
[5:25:14 PM ET] for
[5:25:15 PM ET] the
[5:25:16 PM ET] quarter,
[5:25:16 PM ET] They
[5:25:17 PM ET] relax
[5:25:17 PM ET] has
[5:25:17 PM ET] really
[5:25:17 PM ET] paid
[5:25:18 PM ET] in restaurant comps for the quarter
[5:25:18 PM ET] his
[5:25:18 PM ET] these
[5:25:18 PM ET] dividends right
[5:25:18 PM ET] now
[5:25:19 PM ET] have
[5:25:19 PM ET] $24
[5:25:19 PM ET] million
[5:25:21 PM ET] the relaunch has really paid huge dividends we now have twenty four million people
[5:25:21 PM ET] people in.
[5:25:21 PM ET] a rewards
[5:25:21 PM ET] program and a
[5:25:22 PM ET] are
[5:25:22 PM ET] draw.
[5:25:23 PM ET] driving
[5:25:23 PM ET] 33%
[5:25:23 PM ET] of
[5:25:23 PM ET] our
[5:25:24 PM ET] in the rewards program that are driving thirty three percent of our transactions
[5:25:24 PM ET] transactions.
[5:25:25 PM ET] for
[5:25:25 PM ET] the
[5:25:25 PM ET] entire
[5:25:26 PM ET] system, we
[5:25:26 PM ET] think
[5:25:26 PM ET] that
[5:25:27 PM ET] number
[5:25:27 PM ET] to
[5:25:27 PM ET] move
[5:25:27 PM ET] much
[5:25:28 PM ET] higher if you want
[5:25:28 PM ET] talk to
[5:25:28 PM ET] all
[5:25:29 PM ET] Oly
[5:25:29 PM ET] for the entire system we think that number can move much higher if you talk to arlie
[5:25:29 PM ET] it
[5:25:30 PM ET] say.
[5:25:30 PM ET] tell
[5:25:30 PM ET] me we are the
[5:25:30 PM ET] all
[5:25:30 PM ET] 50
[5:25:31 PM ET] percent
[5:25:31 PM ET] range
[5:25:32 PM ET] and
[5:25:32 PM ET] has
[5:25:32 PM ET] aspirations
[5:25:33 PM ET] and
[5:25:33 PM ET] in
[5:25:33 PM ET] plans
[5:25:33 PM ET] to
[5:25:33 PM ET] get
[5:25:34 PM ET] there,
[5:25:34 PM ET] she'd tell you it should be in the forty fifty percent range and has aspirations
[5:25:34 PM ET] and plans to get there but
[5:25:34 PM ET] but
[5:25:34 PM ET] uh
[5:25:35 PM ET] oh, there's a
[5:25:35 PM ET] lot
[5:25:35 PM ET] of
[5:25:35 PM ET] under
[5:25:35 PM ET] the
[5:25:36 PM ET] hood
[5:25:36 PM ET] that's
[5:25:36 PM ET] big
[5:25:37 PM ET] worked
[5:25:37 PM ET] on
[5:25:37 PM ET] to
[5:25:38 PM ET] continue
[5:25:38 PM ET] to
[5:25:38 PM ET] drive
[5:25:38 PM ET] man
[5:25:38 PM ET] through
[5:25:38 PM ET] the
[5:25:39 PM ET] there's a lot under the hood that's that's being worked on to continue to drive demand through the channel
[5:25:39 PM ET] to
[5:25:39 PM ET] channel
[5:25:41 PM ET] We got a
[5:25:41 PM ET] Should take
[5:25:41 PM ET] taking the
[5:25:42 PM ET] got it thanks for taking the question
[5:25:42 PM ET] question
[5:25:42 PM ET] quick
[5:25:44 PM ET] The next
[5:25:45 PM ET] question
[5:25:45 PM ET] comes from
[5:25:46 PM ET] Brian
[5:25:47 PM ET] thank you the next question comes from brian bittner
[5:25:47 PM ET] dear? With
[5:25:48 PM ET] with oppenheimer and company
[5:25:48 PM ET] me,
[5:25:49 PM ET] please go
[5:25:50 PM ET] please go ahead
[5:25:50 PM ET] said
[5:25:50 PM ET] went
[5:25:51 PM ET] Thank
[5:25:52 PM ET] you.
[5:25:52 PM ET] Um.
[5:25:53 PM ET] It's
[5:25:53 PM ET] interestingly he's
[5:25:53 PM ET] hear
[5:25:54 PM ET] here they
[5:25:54 PM ET] they're gonna
[5:25:54 PM ET] going to
[5:25:55 PM ET] thank you it's interesting to hear that that you're gonna be
[5:25:55 PM ET] begin
[5:25:55 PM ET] this
[5:25:55 PM ET] catering
[5:25:56 PM ET] roll
[5:25:56 PM ET] out
[5:25:57 PM ET] and in
[5:25:57 PM ET] the
[5:25:57 PM ET] first
[5:25:58 PM ET] quarter. Can you
[5:25:58 PM ET] talk about
[5:25:58 PM ET] to
[5:25:58 PM ET] us
[5:25:59 PM ET] about what you're
[5:25:59 PM ET] percentage of the
[5:25:59 PM ET] this catering rollout in the first quarter can you talk to us
[5:26:00 PM ET] your
[5:26:01 PM ET] markets
[5:26:01 PM ET] you
[5:26:01 PM ET] can sign
[5:26:02 PM ET] about what percentage of your markets you can scale
[5:26:02 PM ET] scale.
[5:26:02 PM ET] The case is a little bit more than a little bit
[5:26:03 PM ET] strategy
[5:26:04 PM ET] to
[5:26:04 PM ET] or should
[5:26:04 PM ET] we
[5:26:05 PM ET] actually
[5:26:05 PM ET] be
[5:26:05 PM ET] thinking
[5:26:05 PM ET] of
[5:26:05 PM ET] this
[5:26:06 PM ET] as
[5:26:06 PM ET] a
[5:26:06 PM ET] national
[5:26:07 PM ET] the catering strategy to or should we actually be thinking of this as a national strategy
[5:26:07 PM ET] strategy?
[5:26:08 PM ET] and
[5:26:08 PM ET] And can
[5:26:08 PM ET] you get a
[5:26:08 PM ET] me little bit of
[5:26:09 PM ET] us
[5:26:09 PM ET] an
[5:26:09 PM ET] idea
[5:26:10 PM ET] of
[5:26:10 PM ET] the
[5:26:11 PM ET] performance
[5:26:11 PM ET] you've
[5:26:11 PM ET] been
[5:26:11 PM ET] seeing
[5:26:11 PM ET] in
[5:26:11 PM ET] these
[5:26:12 PM ET] pilot
[5:26:12 PM ET] markets
[5:26:13 PM ET] can you give us an idea of the performance you've been seeing in these pilot markets that
[5:26:13 PM ET] that
[5:26:14 PM ET] maybe get a lot of
[5:26:14 PM ET] you
[5:26:14 PM ET] the same
[5:26:15 PM ET] confidence to be able to do
[5:26:15 PM ET] really
[5:26:15 PM ET] get
[5:26:16 PM ET] after
[5:26:17 PM ET] maybe give you the confidence to really get after
[5:26:17 PM ET] after this
[5:26:18 PM ET] this opportunity
[5:26:18 PM ET] opportunity.
[5:26:19 PM ET] thanks
[5:26:19 PM ET] Thanks.
[5:26:21 PM ET] Me.
[5:26:21 PM ET] A day for the
[5:26:22 PM ET] question. We
[5:26:22 PM ET] think
[5:26:22 PM ET] um, if we think about
[5:26:23 PM ET] a
[5:26:23 PM ET] really
[5:26:23 PM ET] strategic
[5:26:24 PM ET] yeah thanks for the question we think it's a really
[5:26:24 PM ET] opportunity, you
[5:26:24 PM ET] for
[5:26:25 PM ET] strategic opportunity for us
[5:26:25 PM ET] us.
[5:26:25 PM ET] So
[5:26:25 PM ET] it's
[5:26:25 PM ET] more of
[5:26:26 PM ET] than
[5:26:26 PM ET] a
[5:26:26 PM ET] that
[5:26:26 PM ET] roll
[5:26:27 PM ET] and the
[5:26:27 PM ET] upcoming
[5:26:28 PM ET] quarter,
[5:26:28 PM ET] it's more of a national rollout in the upcoming quarter but
[5:26:29 PM ET] but we'll
[5:26:29 PM ET] continue
[5:26:29 PM ET] to
[5:26:30 PM ET] add
[5:26:30 PM ET] on
[5:26:31 PM ET] elements
[5:26:31 PM ET] of
[5:26:31 PM ET] the
[5:26:32 PM ET] offering that will be
[5:26:33 PM ET] continue
[5:26:33 PM ET] to
[5:26:33 PM ET] we'll continue to add elements of the offering that will continue to
[5:26:33 PM ET] have its
[5:26:34 PM ET] scale
[5:26:34 PM ET] and
[5:26:35 PM ET] ramp for
[5:26:35 PM ET] the
[5:26:35 PM ET] have it scale and ramp for the consumer
[5:26:36 PM ET] because
[5:26:36 PM ET] consumer.
[5:26:36 PM ET] whether
[5:26:36 PM ET] that's
[5:26:36 PM ET] no
[5:26:37 PM ET] why
[5:26:37 PM ET] whether that's third party marketing
[5:26:38 PM ET] marketing
[5:26:38 PM ET] i
[5:26:38 PM ET] third
[5:26:38 PM ET] party
[5:26:39 PM ET] third party delivery
[5:26:39 PM ET] delivery
[5:26:40 PM ET] and
[5:26:40 PM ET] or
[5:26:40 PM ET] the
[5:26:41 PM ET] technology
[5:26:41 PM ET] of
[5:26:41 PM ET] advancements we
[5:26:42 PM ET] need
[5:26:42 PM ET] to
[5:26:42 PM ET] make
[5:26:42 PM ET] ensure
[5:26:43 PM ET] we're
[5:26:43 PM ET] low
[5:26:43 PM ET] load balancing
[5:26:44 PM ET] correctly
[5:26:44 PM ET] and or the technology advancements we need to make to ensure we're load balancing
[5:26:44 PM ET] across
[5:26:45 PM ET] correctly across restaurants
[5:26:45 PM ET] restaurant
[5:26:46 PM ET] are
[5:26:46 PM ET] We think
[5:26:46 PM ET] made
[5:26:46 PM ET] today
[5:26:47 PM ET] so group
[5:26:48 PM ET] occasionally represents
[5:26:48 PM ET] represent
[5:26:49 PM ET] two to three
[5:26:49 PM ET] percent
[5:26:49 PM ET] of
[5:26:50 PM ET] say
[5:26:50 PM ET] we think today so group occasions today represent two to three percent of sales
[5:26:50 PM ET] sales.
[5:26:51 PM ET] with
[5:26:51 PM ET] if you look
[5:26:51 PM ET] at what
[5:26:52 PM ET] art some
[5:26:52 PM ET] of
[5:26:52 PM ET] our
[5:26:52 PM ET] competitors
[5:26:53 PM ET] in
[5:26:53 PM ET] the
[5:26:53 PM ET] space are
[5:26:54 PM ET] doing.
[5:26:54 PM ET] upwards
[5:26:54 PM ET] a
[5:26:55 PM ET] of
[5:26:55 PM ET] if you look at what our some of our competitors in the space are doing
[5:26:55 PM ET] 510
[5:26:55 PM ET] there I
[5:26:55 PM ET] say
[5:26:56 PM ET] a
[5:26:56 PM ET] fifteen
[5:26:57 PM ET] of
[5:26:57 PM ET] total
[5:26:57 PM ET] sales
[5:26:57 PM ET] in
[5:26:57 PM ET] and
[5:26:58 PM ET] catering we
[5:26:58 PM ET] know
[5:26:59 PM ET] there's
[5:26:59 PM ET] upwards of five ten dare i say fifteen percent of total sales in catering
[5:26:59 PM ET] an
[5:26:59 PM ET] enormous
[5:27:00 PM ET] we know there's an enormous opportunity
[5:27:02 PM ET] opportunity.
[5:27:02 PM ET] We're not trying to get to
[5:27:03 PM ET] 15
[5:27:03 PM ET] tomorrow
[5:27:03 PM ET] morning well
[5:27:04 PM ET] What we'd like to do
[5:27:04 PM ET] is
[5:27:04 PM ET] see
[5:27:05 PM ET] what it
[5:27:05 PM ET] or
[5:27:05 PM ET] are
[5:27:05 PM ET] we're not trying to get to fifteen tomorrow morning what we'd like to do is
[5:27:05 PM ET] two points
[5:27:05 PM ET] of
[5:27:06 PM ET] growth
[5:27:06 PM ET] year
[5:27:06 PM ET] over
[5:27:07 PM ET] year and the
[5:27:07 PM ET] next
[5:27:07 PM ET] couple
[5:27:08 PM ET] of
[5:27:08 PM ET] years
[5:27:08 PM ET] we
[5:27:09 PM ET] continue to
[5:27:09 PM ET] ramp
[5:27:09 PM ET] and
[5:27:09 PM ET] one or two points of growth year over year in the next couple of years and we continue to ramp
[5:27:10 PM ET] scale
[5:27:11 PM ET] uh the
[5:27:11 PM ET] goal
[5:27:11 PM ET] here
[5:27:11 PM ET] is
[5:27:11 PM ET] to
[5:27:12 PM ET] ensure
[5:27:12 PM ET] we
[5:27:12 PM ET] can
[5:27:13 PM ET] scale the goal here is to ensure we can deliver
[5:27:13 PM ET] deliver
[5:27:13 PM ET] say
[5:27:14 PM ET] have to
[5:27:14 PM ET] raised
[5:27:15 PM ET] consumer
[5:27:15 PM ET] experience
[5:27:15 PM ET] and
[5:27:16 PM ET] not disrupt
[5:27:17 PM ET] the poor
[5:27:17 PM ET] whole
[5:27:17 PM ET] I am afraid of the
[5:27:18 PM ET] an incredible consumer experience and not disrupt the core business
[5:27:18 PM ET] would
[5:27:18 PM ET] just probably
[5:27:19 PM ET] number
[5:27:19 PM ET] one for
[5:27:19 PM ET] which is priority number one for us
[5:27:20 PM ET] us
[5:27:21 PM ET] Women.
[5:27:22 PM ET] my
[5:27:24 PM ET] I
[5:27:24 PM ET] under
[5:27:25 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:27:26 PM ET] for one
[5:27:26 PM ET] last
[5:27:27 PM ET] questioner that
[5:27:27 PM ET] will
[5:27:27 PM ET] thank you and i understand there is time for one last questioner
[5:27:28 PM ET] wu
[5:27:28 PM ET] be
[5:27:28 PM ET] a
[5:27:28 PM ET] Gregory
[5:27:29 PM ET] Frankfort
[5:27:31 PM ET] that will be gregory frankfurt with guggenheim securities
[5:27:32 PM ET] was
[5:27:32 PM ET] please go ahead
[5:27:33 PM ET] Wis
[5:27:33 PM ET] WAEEEEES WEEK.
[5:27:35 PM ET] eh eh, that
[5:27:35 PM ET] thanks for sneaking me
[5:27:36 PM ET] My question was
[5:27:36 PM ET] just on
[5:27:37 PM ET] hey thanks for sneaking me in my question is just on
[5:27:37 PM ET] um
[5:27:38 PM ET] International
[5:27:38 PM ET] and
[5:27:38 PM ET] maybe
[5:27:39 PM ET] which
[5:27:39 PM ET] what you
[5:27:39 PM ET] are
[5:27:39 PM ET] seeing
[5:27:40 PM ET] I
[5:27:40 PM ET] think
[5:27:40 PM ET] y
[5:27:41 PM ET] you
[5:27:41 PM ET] call
[5:27:41 PM ET] that
[5:27:41 PM ET] kinda opening
[5:27:42 PM ET] up
[5:27:42 PM ET] fifteen
[5:27:42 PM ET] to
[5:27:42 PM ET] international and maybe what you're seeing there i think
[5:27:42 PM ET] twenty
[5:27:43 PM ET] five
[5:27:43 PM ET] stores
[5:27:44 PM ET] overseas
[5:27:44 PM ET] next
[5:27:45 PM ET] you called out kind of opening up fifteen to twenty five stores overseas next year
[5:27:45 PM ET] year.
[5:27:46 PM ET] I am not sure if I can do
[5:27:46 PM ET] the store is a good
[5:27:46 PM ET] you have
[5:27:46 PM ET] get
[5:27:46 PM ET] visit the
[5:27:47 PM ET] willing
[5:27:47 PM ET] to break
[5:27:47 PM ET] the
[5:27:48 PM ET] out, how
[5:27:48 PM ET] many of
[5:27:48 PM ET] those
[5:27:48 PM ET] might
[5:27:48 PM ET] be
[5:27:49 PM ET] company
[5:27:50 PM ET] i'm not sure if you guys are willing to break out how many of those might be company operated
[5:27:50 PM ET] operated,
[5:27:50 PM ET] um
[5:27:50 PM ET] and then kind
[5:27:51 PM ET] of
[5:27:51 PM ET] what's the
[5:27:51 PM ET] of
[5:27:51 PM ET] ramps are the same as the
[5:27:52 PM ET] and then kind of what sort of ramp
[5:27:52 PM ET] maybe
[5:27:52 PM ET] we
[5:27:52 PM ET] should explain to the majority of the
[5:27:53 PM ET] expect
[5:27:53 PM ET] from
[5:27:54 PM ET] there the next
[5:27:54 PM ET] couple of
[5:27:55 PM ET] years.
[5:27:55 PM ET] maybe we should expect from there in the next couple of years thanks
[5:27:56 PM ET] next
[5:27:57 PM ET] for
[5:27:57 PM ET] 15
[5:27:57 PM ET] to
[5:27:58 PM ET] 25
[5:27:58 PM ET] will
[5:27:58 PM ET] be
[5:27:59 PM ET] all
[5:27:59 PM ET] partner
[5:28:00 PM ET] yeah so those fifteen to twenty five will be all partner operated
[5:28:00 PM ET] operated
[5:28:00 PM ET] across
[5:28:00 PM ET] the
[5:28:01 PM ET] region of
[5:28:01 PM ET] where
[5:28:01 PM ET] we're
[5:28:01 PM ET] open
[5:28:02 PM ET] across the regions where we're open today
[5:28:02 PM ET] w
[5:28:03 PM ET] today.
[5:28:03 PM ET] I.
[5:28:04 PM ET] have a
[5:28:05 PM ET] not sure if I can do
[5:28:05 PM ET] I'm
[5:28:05 PM ET] the way, have a very good
[5:28:05 PM ET] like I'm going to be able to do
[5:28:05 PM ET] not sure if I can
[5:28:06 PM ET] I'm going to be a little bit
[5:28:06 PM ET] owned
[5:28:06 PM ET] of
[5:28:07 PM ET] to
[5:28:07 PM ET] the three hundred forty to three hundred sixty will be equity owned so they
[5:28:07 PM ET] they
[5:28:07 PM ET] uh
[5:28:08 PM ET] U.S.
[5:28:08 PM ET] Canada, and
[5:28:08 PM ET] western
[5:28:09 PM ET] us canada western europe
[5:28:09 PM ET] Euro
[5:28:09 PM ET] Europe I was
[5:28:10 PM ET] some
[5:28:10 PM ET] limited
[5:28:10 PM ET] they rode and
[5:28:10 PM ET] Western
[5:28:11 PM ET] yup,
[5:28:12 PM ET] with some limited growth in western europe we are now
[5:28:12 PM ET] we are
[5:28:12 PM ET] now
[5:28:13 PM ET] are Adam
[5:28:13 PM ET] go there we
[5:28:14 PM ET] either of
[5:28:15 PM ET] pipeline
[5:28:15 PM ET] there
[5:28:15 PM ET] we
[5:28:15 PM ET] which
[5:28:15 PM ET] takes
[5:28:16 PM ET] time as you
[5:28:16 PM ET] can
[5:28:17 PM ET] actively building a development pipeline there which takes time as you can imagine
[5:28:17 PM ET] a
[5:28:20 PM ET] I wait I wait
[5:28:21 PM ET] I and
[5:28:21 PM ET] so most of that growth will come through partner operated al shia group
[5:28:22 PM ET] don't
[5:28:22 PM ET] in the middle east our middle eastern partner
[5:28:23 PM ET] What know
[5:28:24 PM ET] as well.
[5:28:24 PM ET] a
[5:28:24 PM ET] to go to the next
[5:28:25 PM ET] has really aggressive plans for growth there
[5:28:25 PM ET] I'm not sure if I can do
[5:28:29 PM ET] I am not afraid of the money.
[5:28:30 PM ET] up
[5:28:30 PM ET] we'll expand to singapore in q1 with our partner spc and then open up
[5:28:30 PM ET] I am not sure if I can do
[5:28:30 PM ET] mexico city
[5:28:32 PM ET] I'm not
[5:28:32 PM ET] what you want to do
[5:28:33 PM ET] early q1 as well or q1 q2 of next year
[5:28:35 PM ET] make a
[5:28:35 PM ET] So that one is all
[5:28:36 PM ET] goes coming
[5:28:36 PM ET] in they go
[5:28:37 PM ET] faster,
[5:28:38 PM ET] so that's where the growth is coming can they go faster perhaps
[5:28:40 PM ET] How
[5:28:41 PM ET] it'll really depend on what's going on with the conflict in the middle east
[5:28:42 PM ET] I already know what's going on with the car.
[5:28:43 PM ET] and I've had a part of
[5:28:43 PM ET] there's
[5:28:43 PM ET] in
[5:28:43 PM ET] Latin
[5:28:43 PM ET] the first
[5:28:44 PM ET] in Southeast
[5:28:44 PM ET] be
[5:28:44 PM ET] a good
[5:28:45 PM ET] it's a
[5:28:45 PM ET] get
[5:28:45 PM ET] to
[5:28:45 PM ET] and how fast our partners in latin america and southeast asia can get up to speed
[5:28:50 PM ET] yeah and i i would just add one thing on our company operated in europe we
[5:28:54 PM ET] continue to show better economics and we actually had comps in the low
[5:28:54 PM ET] Tow
[5:28:56 PM ET] Set
[5:28:57 PM ET] double digit range in q3 i think we mentioned they were in the high single digit range in q2
[5:29:02 PM ET] so that is driving increased restaurant margins and our cash on cash
[5:29:06 PM ET] returns in central london and frankfurt are still very attractive so like scott mentioned we're going to continue to grow in
[5:29:06 PM ET] Sister
[5:29:06 PM ET] those areas
[5:29:08 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:29:09 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:29:10 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:29:12 PM ET] this
[5:29:13 PM ET] can your
[5:29:13 PM ET] question
[5:29:13 PM ET] and
[5:29:14 PM ET] her
[5:29:14 PM ET] thank you this concludes our question and answer session
[5:29:15 PM ET] a
[5:29:15 PM ET] lies
[5:29:17 PM ET] like to turn the conference back over to Scott
[5:29:18 PM ET] bolt right
[5:29:18 PM ET] for
[5:29:19 PM ET] i would like to turn the conference back over to scott boatwright for any closing remarks
[5:29:22 PM ET] In.
[5:29:23 PM ET] Six
[5:29:23 PM ET] says, Since
[5:29:23 PM ET] not a diamond drive to the
[5:29:23 PM ET] Proud Referred
[5:29:24 PM ET] well thank you for joining us today i'm really proud of the progress our team
[5:29:24 PM ET] to
[5:29:25 PM ET] has delivered in third quarter
[5:29:25 PM ET] team delivered third order,
[5:29:26 PM ET] other
[5:29:30 PM ET] the one hundred and forty thousand team members out in our restaurants that worked so hard for us
[5:29:30 PM ET] every single day
[5:29:33 PM ET] Sets
[5:29:35 PM ET] deliver an incredible experience to our support center staffs
[5:29:35 PM ET] See
[5:29:36 PM ET] I have to say that I have to do
[5:29:36 PM ET] you
[5:29:37 PM ET] really
[5:29:37 PM ET] in the early days
[5:29:38 PM ET] of
[5:29:39 PM ET] here in newport beach in columbus you know we're in the early days of our
[5:29:39 PM ET] for growth strategy
[5:29:42 PM ET] and believe much of the growth is still to come
[5:29:45 PM ET] the
[5:29:47 PM ET] think that's a really important note and we've seen measurable progress
[5:29:50 PM ET] across twenty twenty six with positive transactions in every quarter
[5:29:53 PM ET] and we've seen promising results in multiple areas of the five pillars of our strategy
[5:29:55 PM ET] Hist
[5:29:58 PM ET] looking forward we're gonna continue to build momentum in this dynamic environment
[5:30:01 PM ET] and many of our initiatives are in early stages of the rollout
[5:30:03 PM ET] Six.
[5:30:06 PM ET] as i said earlier i know we have the right strategy and the right team and more growth levers
[5:30:08 PM ET] in place today than any point in our history
[5:30:11 PM ET] Sic
[5:30:12 PM ET] and i'm confident in our ability to build chipotle into a global iconic brand
[5:30:15 PM ET] while creating long term value for our guests our teams
[5:30:16 PM ET] Bakoi, a long time value, that teams, age
[5:30:17 PM ET] air
[5:30:18 PM ET] I think it's
[5:30:18 PM ET] a really
[5:30:18 PM ET] of
[5:30:18 PM ET] that I
[5:30:19 PM ET] loaded
[5:30:19 PM ET] didn't
[5:30:20 PM ET] perfect
[5:30:20 PM ET] that we
[5:30:21 PM ET] and our shareholders i think it's a really important note to to say that
[5:30:21 PM ET] are
[5:30:21 PM ET] should
[5:30:21 PM ET] still
[5:30:23 PM ET] we are still a category defining brand
[5:30:23 PM ET] define my
[5:30:28 PM ET] that is the way people wanna eat in the world today
[5:30:29 PM ET] The world
[5:30:30 PM ET] Today, and you have to kill.
[5:30:31 PM ET] and looked.
[5:30:31 PM ET] hoo-rogen
[5:30:31 PM ET] and so i think that's an important note and that there's more growth in front of us
[5:30:32 PM ET] and I like
[5:30:32 PM ET] behind
[5:30:35 PM ET] it been
[5:30:35 PM ET] the whole
[5:30:36 PM ET] we
[5:30:36 PM ET] have a little bit of a little bit of a
[5:30:36 PM ET] than there is behind us and if you're asking a question are we still a growth brand
[5:30:37 PM ET] all we have
[5:30:38 PM ET] initially linked
[5:30:38 PM ET] we absolutely are we have industry leading economics
[5:30:40 PM ET] at
[5:30:42 PM ET] I'm not sure if I can do
[5:30:42 PM ET] we have incredible growth in front of us and an extraordinary team of professionals
[5:30:43 PM ET] look at
[5:30:44 PM ET] that are committed to our strategy
[5:30:45 PM ET] coming across that
[5:30:45 PM ET] there was
[5:30:45 PM ET] is once
[5:30:48 PM ET] ho
[5:30:48 PM ET] you can't
[5:30:48 PM ET] it, and you
[5:30:48 PM ET] your
[5:30:48 PM ET] of
[5:30:48 PM ET] all
[5:30:49 PM ET] that said i just wanna say thank you for your continued support your confidence in chipotle
[5:30:50 PM ET] and we look
[5:30:50 PM ET] ward up any
[5:30:50 PM ET] or
[5:30:51 PM ET] contained
[5:30:51 PM ET] progress
[5:30:52 PM ET] we look forward to updating you on our continued progress next quarter
[5:30:52 PM ET] of
[5:30:53 PM ET] next
[5:30:53 PM ET] quarter.
[5:30:54 PM ET] not sure if I can do it.
[5:30:57 PM ET] the conference has now concluded
[5:30:57 PM ET] The conference has now concluded. Thank you for attending to
[5:30:57 PM ET] these
[5:30:59 PM ET] wide.
[5:31:00 PM ET] thank you for attending today's presentation you may now disconnect
[5:31:01 PM ET] disconnect.
[5:31:04 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:31:05 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:31:22 PM ET] The
[5:31:23 PM ET] Ha.
[5:31:24 PM ET] Huh,
[5:31:26 PM ET] the other
[5:31:32 PM ET] Shush.
[5:31:32 PM ET] yes.
[5:31:32 PM ET] yes, yes,
[5:31:34 PM ET] yes.
[5:31:37 PM ET] Here
[5:31:38 PM ET] be
[5:31:46 PM ET] See
[5:31:49 PM ET] his
[5:31:54 PM ET] But
[5:31:59 PM ET] Get, kick, kick,
[5:31:59 PM ET] yeah,
[5:32:00 PM ET] D, D, D, T, T,
[5:32:02 PM ET] and
[5:32:02 PM ET] yet.
[5:32:02 PM ET] you
[5:32:03 PM ET] I say
[5:32:07 PM ET] S
[5:32:07 PM ET] Shifts
[5:32:13 PM ET] Better.
[5:32:14 PM ET] The size
[5:32:19 PM ET] Um
[5:32:25 PM ET] Yes, yes, yes.
[5:32:25 PM ET] ha ha ha ha ha ha ha ha ha ha ha
[5:32:26 PM ET] yeah, yeah, yeah,
[5:32:34 PM ET] Mm,
[5:32:35 PM ET] Never
[5:32:42 PM ET] The
[5:32:44 PM ET] Our
[5:32:44 PM ET] On the south
[5:32:51 PM ET] He
[5:32:52 PM ET] Hmm.
[5:32:53 PM ET] s
[5:32:53 PM ET] And
[5:32:54 PM ET] And
[5:33:02 PM ET] Was
[5:33:02 PM ET] Little
[5:33:03 PM ET] be
[5:33:08 PM ET] Y
[5:33:08 PM ET] Yelling film.
[5:33:10 PM ET] the
[5:33:18 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:33:18 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:33:19 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:33:20 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:33:20 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:33:25 PM ET] It
[5:33:27 PM ET] Her
[5:33:27 PM ET] Really?
[5:33:31 PM ET] Richard
[5:33:32 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:33:33 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:33:34 PM ET] we have a number of
[5:34:13 PM ET] The
[5:34:27 PM ET] His finger
[5:34:35 PM ET] Singing the
[5:34:52 PM ET] Oh,
[5:34:55 PM ET] By the
[5:35:19 PM ET] Cell
[5:35:59 PM ET] Better.
[5:36:06 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:36:07 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:36:07 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:36:26 PM ET] Help.
[5:36:26 PM ET] Helped
[5:36:27 PM ET] him.
[5:37:17 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:17 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:22 PM ET] Show
[5:37:22 PM ET] Hi
[5:37:25 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:26 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:26 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:27 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:28 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:28 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:29 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:29 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:30 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:31 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:31 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:32 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:32 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:33 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:33 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:34 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:34 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:35 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:36 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:36 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:37 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:37 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:38 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:39 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:39 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:40 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:40 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:40 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:41 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:37:42 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:38:02 PM ET] You
[5:38:03 PM ET] are at
[5:38:03 PM ET] lead
[5:38:03 PM ET] entry number
[5:38:04 PM ET] has
[5:38:04 PM ET] been
[5:38:05 PM ET] confirmed. You will
[5:38:05 PM ET] be
[5:38:05 PM ET] joined to
[5:38:06 PM ET] the
[5:38:06 PM ET] your elite entry number has been confirmed you will be joined to the conference
[5:38:11 PM ET] at the tone please state your name and spell
[5:38:11 PM ET] Least your
[5:38:12 PM ET] it then press pound to continue
[5:38:13 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:02 PM ET] You
[5:39:03 PM ET] are
[5:39:03 PM ET] late and
[5:39:03 PM ET] three number
[5:39:04 PM ET] has
[5:39:04 PM ET] been
[5:39:05 PM ET] confirmed. You will
[5:39:05 PM ET] be
[5:39:06 PM ET] joined to
[5:39:06 PM ET] the
[5:39:06 PM ET] hard for
[5:39:06 PM ET] the
[5:39:06 PM ET] your elite entry number has been confirmed you will be joined to the conference
[5:39:09 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:09 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:09 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:10 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:11 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:12 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:12 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:13 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:13 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:14 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:14 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:15 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:16 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:16 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:17 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:17 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:18 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:19 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:19 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:20 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:21 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:22 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:23 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:24 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:24 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:25 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:25 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:26 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:27 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:27 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:28 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:28 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:29 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:29 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:31 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:31 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:32 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:32 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:33 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:34 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:34 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:35 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:35 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:36 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:36 PM ET]  ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇   ⁇ 
[5:39:37 PM ET] excuse me

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