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CFO Tricia Tolivar attributed the July improvement to getting past the difficult comparison of the prior year's steak launch. Regarding the long-term sales algorithm, she acknowledged the outsized early returns from new stores and stated they will continue to monitor the dynamic but sees no cause for concern about the business.

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CFO Tricia Tolivar countered the premise, stating that after accounting for the 1.7% menu price increase, the remaining mix impact was still 'fairly healthy.' She emphasized that mix continues to be supported by strong and increasing premium attachments, including high incidence for items like steak.

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CEO Brett Schulman acknowledged a significant opportunity to reduce walkaways at high-volume locations but stressed the importance of maintaining a positive guest experience, especially for new customers. He noted that the new labor deployment model is already showing early improvements in speed and service scores.

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CFO Tricia Tolivar clarified that on a two-year stacked basis, the trend was very consistent, at approximately 33% in Q2 and 32% in Q3. She highlighted the strong 12.9% traffic growth in Q3 as a clear indicator of sustained business momentum and guest enjoyment of the brand.

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Co-Founder, CEO & Director Jonathan Neman responded that the company maintains strong conviction in its long-term growth potential of at least 1,000 stores and is being highly disciplined with its 2026 pipeline. CFO Mitch Reback explained the margin guidance reduction is primarily due to sales deleverage, compounded by a roughly 120 basis point impact from the protein portioning investment and a 40 basis point impact from tariffs.

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CEO Jonathan Neman confirmed that handheld menu items are not included in the 2025 guidance but will be tested this year. CFO Mitch Reback detailed that Q1 faced significant headwinds from the L.A. wildfires, weather, and a holiday calendar shift, collectively impacting comps by approximately 700 basis points. He noted the underlying business comp was about +1% through February and expects sales to strengthen sequentially throughout the year driven by new initiatives.

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CFO Mitch Reback explained that retrofit decisions are based on store AUVs, concentrated sales periods, and challenging labor markets. He confirmed the 700 basis points of labor savings at Penn Plaza and suggested there is likely more room for improvement over time as teams become more efficient with the new system, similar to the labor ramp period in new store openings.

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CEO Josh Kobza responded that the company's vision to modernize approximately 85% of the U.S. system remains unchanged. He stressed that the consistent mid-teen sales uplifts from completed remodels provide the confidence to 'stay the course' with the current strategy, despite short-term market fluctuations, and there are no immediate plans to alter the pace or increase CapEx beyond the plan.

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CFO Sami Siddiqui affirmed high confidence in reaching 5% NRG towards the end of the 2027-2028 timeframe. He broke down the path, targeting 400 net new units from North America (driven by Tims and Firehouse), 1,100 from international markets excluding China (with Popeyes contributing over a third), and 300 from China in aggregate. Siddiqui noted that RBI achieved 300 units from China in 2022-23 even without all brands firing on all cylinders, expressing confidence in the region's long-term potential post-cleanup.

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CFO Sami Siddiqui confirmed that deleveraging is the current priority but did not rule out opportunistic share repurchases. He stated the company plans to complete around 400 Burger King U.S. remodels in 2025, an increase from 2024, to advance toward its long-term modern image goal.

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CEO Christine Barone explained the deliberate pace is to ensure proper training and set teams up for success, similar to their successful mobile order rollout. She also cited logistical factors, including the time required to install necessary equipment like freezers and ovens in shops and to coordinate with distributors in each market. This staged approach also allows them to test the program under different market conditions.

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CEO Christine Barone explained that the current focus is on the 32-shop market test to validate assumptions before mapping out a full 2026 rollout plan. Regarding mobile order, she clarified that while the walk-up window helps balance production, it is not the primary tool for measuring incrementality; instead, they analyze pre- and post-adoption customer behavior.

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CFO Josh Guenser explained the guidance accounts for a 3-point net pricing roll-off and a very difficult comparison in Q1, but still assumes positive traffic. CEO Christine Barone outlined that the 2025 advertising plan will apply learnings from 2024, focusing on targeted digital ads to acquire new customers and drive Rewards enrollment. She noted they will lean into more spending if ROI proves favorable.

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CEO Christine Barone detailed three ways mobile order incrementality is measured: a 5% frequency lift in existing users, new customer acquisition through rewards sign-ups, and early signs of improved throughput. She attributed traffic gains to the successful execution of their own playbook, emphasizing that the brand's focus on iced drinks, customization, speed, and authentic service is resonating strongly with customers.

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Chairman & CEO Chris Kempczinski stated that the primary focus of the test will be on consumer reaction, product uptake, and its interaction with the rest of the menu, such as whether it drives add-on purchases. He expressed confidence in the operational aspects of the test. The goal is to use the 500-restaurant pilot to validate the scale of the opportunity and inform a decision on a full market launch, rather than pursuing a slower, incremental expansion.

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An executive, likely CEO Christopher Kempczinski, stated that the full-year 2025 U.S. McOpCo margins are expected to be slightly up on a percentage basis compared to 2024. While acknowledging environmental uncertainty, he expressed confidence in the marketing and innovation pipeline for the remainder of the year, noting that strong top-line growth is the ultimate driver of margins.

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CFO Ian Borden acknowledged inflationary pressures for 2025 but expressed confidence in driving cash flow improvement through top-line volume and slightly higher McOpCo margins. CEO Christopher Kempczinski added that despite 2024 headwinds, U.S. franchisee cash flows remained strong, averaging north of $500,000 per unit, and are expected to improve as headwinds subside and momentum returns.

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SVP & CFO Alex Kaleida clarified that the guidance does not factor in any potential benefit from the Smart Kitchen or a worsening of macro pressures, and confidence in their strategies supports the outlook. President and CEO Michael Skipworth added that the company's playbook, including flavor innovation like the recent Mexican Street Spice, is the primary tool to engage guests, and he reiterated the belief that the softness in certain consumer pockets is temporary.

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CEO Michael Skipworth acknowledged that some sales transfer is intentional to relieve high-volume stores but stated the overall impact on comps is not materially different from historical levels. Executive Alex Kaleida explained the shift to a loyalty program is a natural evolution to drive frequency and retention. The design is informed by insights from the 50 million-user WingID database, particularly the desire of Gen Z and Millennial consumers for experiential brand engagement, allowing for a unique, non-transactional approach.

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CEO Michael Skipworth stated that while some intentional openings occur to relieve high-volume stores, the overall impact from sales transfer on comps is not materially different from historical levels. CFO Alex Kaleida explained that launching a loyalty program is a natural evolution built upon the foundation of their WingID platform. He noted the program will be designed to be more experiential than transactional, leveraging deep customer insights to appeal to their growing Gen Z and Millennial base and drive frequency.

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CEO Michael Skipworth declined to provide 2025 guidance but expressed confidence in the long-term runway of strategies like brand awareness and the MyWingstop platform, which is driving record digital guest retention. He stated there is "a lot of gas left in the tank" for AUV growth, citing strong performance from the newest vintage and double-digit comps across all vintages as support for the $3 million AUV target.

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CEO Brian Niccol stated there are 'roughly eighty, ninety stores' in the mobile order pickup-only format. Regarding the bonus, he described incentives as a 'powerful tool' to galvanize the organization around cost reduction. The goal is to create a better cost structure so that future top-line growth flows more efficiently to the bottom line.

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Chairman & CEO Brian Niccol stated there are approximately 80-90 mobile order and pickup-only stores, which are planned to be sunset. Regarding the bonus, he described incentives as a 'powerful tool' to motivate the organization to focus on cost savings but did not disclose the specific financial targets, reiterating the goal is to build a better long-term cost structure.

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Brian Niccol, Chairman and Chief Executive Officer, responded that the company's best offense is to focus on its 'third place' value proposition: providing a great experience, connection, and speed. He positioned this as an 'everyday luxury' that can remain resilient. He also mentioned that the innovation pipeline contains items that could be accelerated to 'cut through in any environment' if necessary.

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CEO Brian Niccol explained the strategy involves shifting funds from discounting to 'working dollars' for brand experience, highlighting recent ads focused on the barista-customer connection. CFO Rachel Ruggeri clarified that while marketing as a percentage of revenue is nearly doubling, the reduction in discounts makes the overall promotional spend neutral to the business, though it will appear differently on the P&L.

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CEO Brian Niccol described the Siren Craft system as a 'key unlock' for achieving the sub-4-minute service goal for cafe orders and for better sequencing of mobile orders. He stated the rollout will be prioritized based on which stores have the biggest throughput bottlenecks, rather than a one-size-fits-all approach. The focus is on using the system as a tool to solve the specific problem of throughput.

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CFO Adam Rymer explained it's early for specific sales lift numbers but expects a labor efficiency of 2-3 hours per day per restaurant, driving a strong return. He highlighted that improved prep enables better deployment, with 70% of restaurants now having an expo in place during peak times. This operational improvement is expected to drive throughput and unlock future platforms like catering.

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CEO Scott Boatwright expressed high confidence, attributing it to Chipotle's superior value proposition, speed of service, and the fact that new competitors do not materially impact sales. CFO Adam Rymer added that tariffs are expected to increase new store CapEx in the mid-single-digit range, but noted the situation remains fluid.

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CEO Scott Boatwright explained the March timing was chosen to align with stronger reach and frequency on linear TV, comparing it to 'fishing when the fish are biting.' Regarding the expediter, he said the main challenge is getting all prep done and breaks deployed before peak hours. He believes the back-of-house equipment innovation will drive efficiency to solve this and create a step change in throughput.

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Interim CEO Scott Boatwright stated that no price increase is currently planned due to the competitive environment, but the company is monitoring inflation. CFO Adam Rymer added that underlying inflation is in the low single-digits. Regarding development, Scott Boatwright explained that the 2025 guidance represents significant year-over-year growth, moving closer to the 10% target, and the 8-10% range ensures high-quality execution for new locations.

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President & CEO Rick Cardenas clarified that the current priority is to continue monitoring the performance of Uber Direct at Olive Garden and Cheddar's, as the marketplace model still presents challenges. CFO Raj Vennam provided the inflation breakdown for fiscal 2026, projecting approximately 2.5% for food and 3.5% for labor.

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Executive Rajesh Vennam provided updated expectations: G&A is now forecasted at approximately $470 million, interest expense for the second half is expected to be around $47 million per quarter, and D&A as a percentage of sales will be slightly higher year-over-year.

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Interim CFO Dawn Hooper clarified that the Q2 increase was similar to Q1's and related to a single, specific franchise matter. She stated that she does not anticipate the planned store closure program will accelerate or increase this expense.

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CEO Darin Harris stated the strategy is to remain 'uniquely Jack' by leveraging its all-day menu, innovation, and advancing its digital capabilities. CFO Brian Scott acknowledged that while the competitor's issues likely provided some industry-wide lift, Jack's positive sales trend had already begun, so it was not the primary driver. He noted this uncertainty contributes to their cautious full-year guidance.

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CFO Mel Hope confirmed that underlying traffic trends were positive even after accounting for holiday shifts. CEO Chris Tomasso added that the focus on driving traffic is working, as evidenced by encouraging results, and stated that the associated cost pressures are viewed as temporary, justifying the focus on top-line growth.

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CFO Mel Hope explained that eggs and potatoes constitute about 15% of their commodity basket and that supplemental spot market egg purchases are driving inflation. CEO Chris Tomasso stated they will maintain their disciplined pricing cadence with a mid-year review, preferring not to implement permanent price hikes for what they view as transitory inflation, a strategy that has previously helped them gain market share.

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Kirk Tanner, President and CEO, confirmed that chicken is a 'major opportunity' and that the company will announce plans later in the year to 'holistically look at' the category, teasing a future 'best chicken sandwich in the industry.' Ken Cook, CFO, then explained that the $4 million claim was a planned settlement with credit card providers that was anticipated and came in as expected.

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CEO Kirk Tanner expressed strong satisfaction with the AI pilot's results, leading to an expansion from 100 to 500-600 locations in the current year. He noted the technology continuously improves, provides an 'exceptional' experience, and drives sales by intelligently upselling and building orders. Tanner also highlighted that order accuracy is improving, providing a strong proof point for a broader system rollout.

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CEO Kirk Tanner reiterated that breakfast sales are 'incredibly incremental' to the rest of the business. He explained that the daypart leverages existing restaurant assets and labor, and its growth rate—ahead of the overall business and the category—provides a strong tailwind and reinforces the company's long-term commitment to the strategy.

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CEO David Gibbs praised Taco Bell's 'standout' 9% growth and confirmed that the general trends from Q1 continued into April. While not giving specific full-year guidance, he noted the current environment favors Taco Bell due to its strong value proposition (e.g., $5, $7, $9 boxes), increasing customer penetration, and unique innovation like Cantina Chicken, which he described as a 'category of one.' He acknowledged that year-over-year comparisons get tougher as they lap the Cantina Chicken launch.

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Hajime Uba, via interpreter Benjamin Porten, explained that both January and February faced significant weather pressure, but March performance was very smooth until recent tariff announcements created uncertainty. Regarding margins, Uba stated that while 20% remains the goal, tariff uncertainty and higher-than-expected wage inflation (high single-digits) have reduced visibility. He noted that technology initiatives are key levers to offset these pressures.

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CFO Katie Fogertey confirmed that while advertising investment will grow in 2025, the rate of increase will be less significant than in 2024. She noted the spend will be more evenly paced throughout the year, impacting both other operating expenses and G&A. CEO Rob Lynch added that the strategy is to balance marketing spend with foundational investments in operations, development, and tech to ensure a higher lifetime value from marketing-driven customer acquisition.

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CEO Josh Kobza acknowledged the overall industry softening but expressed confidence in the outlook. He pointed to RBI's Q1 consolidated comparable sales of 4.6% as evidence that the company's strategies are allowing it to outperform the market and remain on track to meet its guidance.

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CEO Josh Kobza acknowledged the industry-wide softening but highlighted RBI's strong Q1 performance of 4.6% consolidated comparable sales, which is comfortably above the 3% target. He expressed confidence in the outlook for the year, despite the broader consumer environment.

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