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CFO Mika Ware indicated that while Texas, Florida, and California remain key, new analytics could open opportunities in other markets like the Northeast and Pacific Northwest. Regarding costs, she stated that most investments are spread evenly, though commodity inflation might be slightly heavier in Q1 and Q3.

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CFO Mika Ware confirmed the bulk of the positive mix was driven by the Triple Dipper, with sales for the platform having doubled year-over-year. Incremental appetizer sales, like the new mozzarella sticks, also contributed, while alcohol sales remained stable. Regarding capital, she stated that the company is focused on investing in the base business, including a new prototype design that will inform a future reimage program to enhance the "atmosphere" pillar of their strategy.

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CEO George Holm observed that while PFG is performing well with some higher-priced QSRs, the sit-down dining segment appears to be making a comeback as consumers seek experiences. On acquisitions, Holm explained that PFG's integration approach is gradual, typically taking about three years to fully materialize. He expressed high confidence in both acquired companies, noting Cheney is returning to its typical growth trajectory after facing increased market competition post-acquisition.

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CEO George Holm explained that while the industry remains rational, increased competition for growth has made upfront payments to customers more commonplace. For the Specialty segment, COO Scott McPherson acknowledged a pressured Q3, as expected, but expressed optimism for Q4 and beyond. He cited a strong content slate for theaters, growth in e-commerce, and a recovery in office coffee and vending as key positive drivers.

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CFO Patrick Hatcher confirmed that the Q2 figures for interest expense and D&A are a good baseline for future quarters. CEO George Holm clarified that the growth gap might widen slightly in Q3 due to the seasonality of the acquired businesses but will narrow in Q4 and beyond as PFG begins to lap the acquisition dates.

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CFO Patrick Hatcher reiterated an outlook of low-single-digit food inflation for Foodservice and Vistar, with mid-single digits for Convenience. He attributed Vistar's margin pressure to channel mix and consumer trends, with improvement expected in the second half from a recovery in the theater channel and growth in new channels. CEO George Holm added that weakness in the low-margin theater business is a key factor impacting Vistar's overall mix and profitability.

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CFO Tricia Tolivar explained that while the company is not immune to macro pressures, the main drivers of the quarterly result were the lapping of last year's successful steak launch and a 'honeymoon effect' from the exceptionally strong 2024 new store class entering the comparable base. She noted that sales trends reaccelerated exiting the quarter.

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CFO Tricia Tolivar detailed that the margin outlook includes the impact of steak costs in the first half of the year, low single-digit food inflation otherwise, and ongoing competitive wage investments. She also noted expectations for continued sales leverage on occupancy costs.

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CFO Tricia Tolivar explained that the new model redeploys existing hours to peak periods and clarifies team member roles. She noted that a pilot in lower-volume restaurants showed that adding a small amount of labor led to a modest increase in sales and improved guest scores. Tolivar emphasized the primary goal is to enhance speed of service, which benefits both customers and the company.

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Co-Founder, CEO & Director Jonathan Neman explained that despite good stability, there was a lack of clear standards around throughput and food quality, which new leadership is now addressing. He confirmed that many of the underperforming stores are newer and still ramping up. As part of the focus on core execution, he also announced the discontinuation of RippleFries to reduce operational complexity and improve customer satisfaction on core menu items.

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CEO Jonathan Neman stated that new COO Jason Cochran will focus on tightening standards for food quality and consistency, improving accuracy and portioning on digital make-lines, and unlocking the "people flywheel" to increase the rate of internal promotions for leadership roles from the current 50%. He emphasized that Cochran's experience at Chipotle and Pizza Hut would help instill discipline and elevate execution across the system.

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CFO Mitch Reback confirmed the 2025 margin guidance includes the impact from IKs. He acknowledged a desire to accelerate retrofits, particularly in high-volume stores, and expects the pace to increase in 2026 and 2027. The current constraints are the deployment capacity of the specialized IK team and the strategic decision to schedule retrofits during slower periods to minimize business disruption at these key locations.

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CFO Mitch Reback attributed labor optimization to changes in scheduling and head coach deployment, adding that new AI scheduling tools offer considerable room for future optimization. He stated that both food and labor inflation ran at approximately 2% in the quarter and are viewed as 'pretty tame' going forward.

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CEO Josh Kobza indicated that most of RBI's U.S. brands are currently running 'low single digits' on pricing. He stated that the company is not contemplating any large-scale changes to its pricing architecture, preferring to keep the 'on deal' portion of the business stable while managing baseline menu prices reasonably.

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CEO Christine Barone confirmed that new shop productivity remains elevated and is strong across various markets, not just established ones. She cited a new shop in Georgia as being the system's top performer in the previous week, underscoring the brand's strength and demand as it expands nationally.

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CEO Christine Barone stated that Q1 saw some of the best new shop openings in the company's history, indicating strong brand reception, though she noted Q1 had particular strength. CFO Josh Guenser explained that Q1 COGS were in line with expectations and that the forecasted pressure for the rest of the year from coffee prices was always anticipated. He added that they can now absorb estimated tariff impacts within the existing guidance.

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Chairman & CEO Chris Kempczinski detailed progress across three platforms. The Consumer platform is driving significant frequency increases via the loyalty program. The Restaurant platform is in 'early days' but showing speed of service improvements from 'Ready on Arrival.' The Company platform, with new finance and HR systems, is expected to deliver G&A cost savings over time. EVP & CFO Ian Borden clarified that 2025 and 2026 are significant 'investment years,' with more substantial efficiency benefits expected to materialize after this period.

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CEO Christopher Kempczinski emphasized the strategy of pairing value programs with full-margin marketing and menu innovation. President, IOM Ian Borden added that U.S. menu pricing was just under mid-single-digits in Q1, mostly from 2024 carryover, and is expected to moderate. He acknowledged a temporary negative mix impact until the company laps the $5 meal deal launch in Q3, but the ultimate goal is guest-count-led growth.

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CFO Ian Borden detailed plans for approximately 2,200 gross openings globally in 2025, with about a quarter in the U.S. and IOM markets combined. Of that portion, roughly 70% will be in the IOM segment. He confirmed that new unit performance is meeting expectations, achieving first-year returns in the low-to-mid teens, and that the company is on track to reach its 50,000 restaurant target by the end of 2027.

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CFO Ian Borden acknowledged the challenging IOM environment but noted 'early signs of progress' in gaining traffic share. For G&A, he expects to meet guidance through spending discipline and lower incentive costs. CEO Christopher Kempczinski added that while share is growing in major international markets, he is 'not satisfied with the pace' and is pushing for acceleration.

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CEO Michael Osanloo described the first in-line model in The Villages, Florida, as a 'gorgeous, experiential' end-cap, not a generic box, maintaining the brand's signature look and open-kitchen feel. CFO Michelle Hook added that the primary driver for these formats is their potential for superior unit economics and high cash-on-cash returns due to lower initial investment costs.

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CFO Michelle Hook explained that a permitting delay pushed one opening from Q1 to Q2, contributing to the back-loaded schedule, but affirmed that the cadence for 2026 is expected to be smoother. CEO Michael Osanloo stated the breakfast test is a response to strong consumer demand and an opportunity to leverage assets during the morning. The test is focused on operational execution and ensuring no negative impact on the core lunch business.

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CFO Michelle Hook explained the guidance implies positive pricing, slightly positive mix, and negative traffic for the full year, with traffic expected to improve in the second half. CEO Michael Osanloo detailed the Texas ad campaign, which uses billboards and TV ads with crowd-sourced content to build brand awareness, a key driver of sales in new markets.

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CEO Michael Osanloo explained that while the ad campaign was objectively strong and had a positive impact, its effect was muted by the 'noise' of heavy competitor discounting and political advertising. CFO Michelle Hook indicated that for 2025, she doesn't expect significant inflation overall but noted potential pressure from beef prices, with labor remaining moderate.

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CEO David Gibbs confirmed that value is a critical focus in the current global consumer environment. He cited Taco Bell's Cravings Value Menu as a model for success. He noted that new KFC CEO Scott Muzvinsky, who came from Taco Bell, is implementing a similar value-focused strategy at KFC globally. Gibbs stated that the business is already seeing strengthening results in the second half of the year as a direct result of this renewed emphasis on value.

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CFO Chris Turner confirmed that the integrated 'Bite' platform is expected to accelerate technology deployments over the long term and that its benefits are factored into the company's growth outlook. As an example beyond Taco Bell, he highlighted KFC International, where digital ordering driven by kiosks has boosted check sizes and productivity. He also pointed to the KFC loyalty program, now in 14 markets, which drove a 40% increase in loyalty sales in France.

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SVP & CFO Alex Kaleida confirmed that Smart Kitchen restaurants are outperforming in the delivery channel by a mid-single-digit growth rate and are also seeing an uptick in lunch and late-night performance, even without advertising. President and CEO Michael Skipworth stated there has been no material change in sales transfer from new units, attributing this to a well-defined, data-driven development strategy that supports the company's increased targets for both store count and average unit volumes.

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CEO Michael Skipworth confirmed the current consumer behavior in specific pockets feels similar to 2022. However, he noted the customer base has since diversified by attracting higher-income, heavy QSR users, which is why the pullback isn't broad-based. He stated that delivery growth remains consistent and represents a significant opportunity, evidenced by a test where the Smart Kitchen's faster delivery times drove a much higher conversion rate, proving the potential of improved speed.

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CEO Michael Skipworth confirmed the current environment feels similar to 2022's temporary pullback in specific consumer pockets. He noted that Wingstop's customer base has since diversified to include higher-income QSR users, making the current softness less broad-based. The primary difference today is the significantly tougher sales comparisons. He added that the delivery channel continues to show consistent growth, with the Smart Kitchen's ability to lower delivery times expected to further boost conversion and capture untapped demand.

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Executive Alex Kaleida explained that the supply chain strategy was highly effective, preventing food costs from being 500-600 basis points higher amid a spike in spot market wing prices. He also noted brand partners see food costs ~300 bps lower than company stores. He confirmed the G&A guidance increase was driven purely by performance-based stock compensation, while still showing leverage year-over-year.

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CEO Brian Niccol stated the Green Apron Service model will begin its system-wide rollout in mid-August. He noted that while it takes time for partners to adapt and for customers to notice the improved service, pilot results show a positive impact on transactions. He confirmed that adding assistant managers is part of the new roster model, supporting the company's goal of promoting from within and building a future leadership pipeline.

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Chairman & CEO Brian Niccol stated the rollout will begin in mid-August. He noted that while it takes time for staff and customers to adjust, pilot results show positive transaction movement. He confirmed that adding assistant managers is a key element of the new roster model, designed to build a strong internal promotion pipeline for future growth.

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Brian Niccol, Chairman and Chief Executive Officer, stated that menu simplification is creating space for more compelling platform innovations. He noted positive progress, with the percentage of stores having positive transaction comps nearly doubling from Q1 to Q2. He added that a 'stage gate process' is being used to build back a previously 'thin' innovation pipeline to ensure new items are impactful and executable.

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CEO Brian Niccol explained the changes are designed to increase accountability in key business lines, such as creating Chief Store Officer and Chief Development Officer roles. CFO Rachel Ruggeri added that while restructuring will cause a G&A spike in Q2, some savings should appear by Q4. However, she cautioned that full-year G&A will still be higher year-over-year due to lapping lower performance-based compensation.

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CFO Adam Rymer explained that the Q2 food cost beat was driven by both in-restaurant and supply chain initiatives. In-restaurant efforts focused on the 'flow of food' to reduce waste, while supply chain efforts included supplier diversification. These initiatives have yielded a net 30-40 basis point gain, more than offsetting a prior portioning investment. He also noted the new produce slicer drove about 20 basis points of labor execution efficiency.

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CEO Scott Boatwright explained the hospitality focus was a result of internal studies identifying opportunities in cleanliness and friendliness. CFO Adam Rymer specified that tariffs impact cost of sales for items like Australian beef, Asian packaging, and South American avocados, while also affecting components for new restaurant equipment like shelving.

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CFO Adam Rymer said Brisket performed very well, driving transactions and switching from all proteins, with sustained performance throughout the period. CEO Scott Boatwright added that the new equipment suite (slicer, plancha, rice cooker, fryer) will go into all new builds later this year. For existing stores, they are testing a 'high-efficiency equipment package' and will evaluate returns before deciding on a broader retrofit strategy.

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CFO Adam Rymer stated that based on initial views, the company expects low single-digit inflation for both food and wages to continue into next year. Interim CEO Scott Boatwright explained that new equipment like the dual-sided plancha and produce slicer will be deployed to improve the team member experience and drive efficiency, which in turn enhances the guest experience. He noted that some of these initiatives will also have margin improvement benefits.

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CFO Raj Vennam projected pricing in the mid-2% range for fiscal 2026, maintaining the philosophy of pricing below inflation. President & CEO Rick Cardenas elaborated that reinvestments could take various forms, such as enhancing affordability at Olive Garden, which might lower mix, or investing in labor to improve service, funded by sales growth.

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President and CEO Ricardo Cardenas attributed the momentum more to menu news, like the 'Fan Favorites' LTO, as the delivery rollout occurred late in the quarter. CFO Raj Vennam detailed that Q4 commodity inflation is being driven by chicken and seafood. He noted that labor inflation has stabilized in the mid-3% range, a level consistent with the pre-COVID environment.

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Executive Ricardo Cardenas reported the unpromoted pilot is about 1.5% of sales in test stores and is not yet considered incremental. A marketing push will follow the full system rollout, which is expected by the end of Q3. Executive Rajesh Vennam stated Olive Garden's pricing was 2.8-2.9% and that back-half pricing should remain in the mid-to-high 2s range.

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President and CEO Rick Cardenas clarified that the immediate focus for the Uber partnership is on Olive Garden. While Darden has the ability to pilot at other brands within the fiscal year, they first want to ensure a seamless experience. On service speed, Cardenas described it as a long-term strategic initiative to meet a changing guest need for faster experiences, not just a throughput tactic. He emphasized this is about capturing quicker meal occasions across all dayparts without making guests feel rushed, a process that will evolve over time.

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CEO Lance Tucker stated that the closures will be spread across the system and among a broad base of franchisees, driven primarily by unit economics, with more details to come in August. He reaffirmed the commitment to new market growth but noted it will become more franchisee-led rather than corporate-led, while still honoring existing commitments.

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CFO Brian Scott confirmed the guidance does not include any refranchising beyond the 13 units currently in process. Regarding capital allocation, he explained that the top priority is investing in strategic initiatives via CapEx, followed by dividends. The share repurchase guidance of ~$20 million represents the comfortable level of free cash flow remaining after these priorities.

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CEO Mike Spanos stated that mix was flat in Q1 but is expected to decline 1% to 2% in Q2 due to the Aussie 3 Course promotion and other value infusions needed to attract guests. He also confirmed they are testing new service models, including staffing levels and server ratios, but clarified that any potential labor investments resulting from these tests are not included in the current financial guidance.

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CEO Mike Spanos identified 'consistency of execution' as the primary gap in the guest experience, aiming to improve quality, value, and service to drive repeat visits. Regarding remodels, Spanos stated the plan is to 'touch' approximately 50% of stores, with a predominant focus on Outback, over the next two to three years.

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CEO Mike Spanos stated the company was not happy with its results and that the revised Q4 forecast reflects the continuation of year-to-date trends, as previous guidance had been too optimistic about an industry recovery. CFO Michael Healy added that the primary driver is lower traffic expectations. Regarding the menu, Spanos reiterated his focus on simplification, getting back to the core of steak and seafood, and executing fewer items more consistently to improve the guest experience, a sentiment echoed by operators.

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Kirk Tanner, President and CEO, agreed that the focus is on winning in the marketplace. He expressed confidence that the '100 days of summer' program is the right plan to do so. He outlined the recipe for success as a combination of incremental innovation on core brands, generating excitement through cultural collaborations, and, critically, delivering a great customer experience with improved hospitality. He stressed that the company has deployed resources specifically to enhance this in-restaurant experience.

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CEO Kirk Tanner stated that while the technology is still in development, the company is encouraged by the results. The primary goal is improving drive-thru efficiency, which directly impacts labor. He noted continuous improvements in accuracy and efficiency, giving them confidence in future labor savings and justifying a 'slow to go fast' deployment strategy.

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EVP and CFO Matt Clark confirmed that 4% pricing is a good estimate for modeling purposes for the balance of the year. He explained that while the other concepts have slightly different P&L structures, with a bit more in other OpEx and minor differences in COGS and labor, using The Cheesecake Factory's structure as a baseline provides a very close approximation for the overall business.

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EVP and CFO Matt Clark projected continued, though smaller, favorability in both COGS and labor for 2025 (20-30 bps each), potentially offset by pressure in other operating expenses. He explained that the impairment charge was primarily related to the closure of a Culinary Dropout restaurant in an underperforming development in Atlanta.

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CEO Josh Charlesworth attributed the conservative revenue guidance to a choppy start to the year and pressure on value-conscious consumers, necessitating a marketing pivot to the Original Glazed doughnut. CFO Jeremiah Ashukian stated a focus on improving EBITDA-to-free-cash-flow conversion and being more discerning with CapEx in 2025, noting that any refranchising proceeds would be incremental. Josh Charlesworth added that improved capacity utilization will reduce the need for new hub builds.

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CEO Joshua Charlesworth confirmed the McDonald's rollout is meeting original assumptions with a positive consumer response and no negative impact on existing stores. Regarding the international segment, he stated that while the U.K. is underperforming and has a new management team focused on core issues like menu and value perception, the company remains pleased with its overall international portfolio. He clarified that the management changes are about focusing capital on the U.S. and adopting a franchisor mindset internationally, not necessarily divesting owned markets.

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Executive Michael Bailen suggested an opportunity for leverage on the other operating expense line, contingent on traffic trends. Regarding labor, he indicated that early signs point to hour growth being slightly below 50% of traffic growth, though this can vary. With 4% to 5% labor inflation expected, he noted potential pressure on the labor line, particularly in the first half of 2025.

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CFO Katie Fogertey noted that underlying trends are consistent when adjusted for weather, with strength in markets like Florida where brand awareness is still growing. She highlighted a low single-digit traffic pressure in Q1 from lapping last year's successful Korean BBQ LTO without a new product launch. CEO Rob Lynch added this underscores the need for a more strategic culinary calendar, which is a key focus for 2025 to avoid such gaps in the future.

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CFO Dirk Locascio explained that growth in healthcare and hospitality comes from a combination of new business wins and increased penetration, and the company expects to continue growing at a healthy rate in these differentiated segments. He guided to a 2025 CapEx of $375 million to $425 million, an increase from 2024 to support fleet, IT, and capacity investments, which is in line with their long-range plan.

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CEO David Flitman reported that private label penetration with independent restaurants is approximately 52%, with no near-term ceiling anticipated due to strong product innovation. He also noted that after recent hurricane impacts, organic independent case growth has seen a significant 100 basis point acceleration, indicating positive momentum.

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CEO Kevin Hourican detailed a segmented approach: for small chains, where penetration dipped due to improved national brand fill rates, Sysco is using 'trade management deals' and product cuttings. For large non-commercial clients, the focus is on back-of-kitchen conversions. CFO Kenny Cheung added that strategic sourcing initiatives will benefit both Sysco and national brands, providing a broader tailwind to margins in the second half of the year.

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CEO Josh Kobza confirmed that the Middle East and China are the two main areas of focus for international growth challenges. He noted that development pipelines in some Middle East markets may be slower and that while China is a significant long-term opportunity, it will take time to get on the right track, with more updates to come.

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CEO Josh Kobza identified the Middle East and China as the two main areas of focus. He noted Middle East pipelines could see a slight slowdown and reiterated that while China is a significant long-term opportunity, it will take time to get on the right track, with more updates to come.

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