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CFO Mika Ware confirmed the Triple Dipper remains strong at about 15% of total sales. CEO Kevin Hochman outlined plans to put the Triple Dipper on TV and leverage social media trends to drive further excitement. He also noted the server handheld update is a software upgrade, not hardware, expected to go live by Q3 to improve speed and accuracy. Ware guided fiscal 2026 G&A to be about 4% of total revenues.

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CFO Mika Ware confirmed Q4 pricing would moderate to the 2-3% range and that mix would roll off by about one point. She stated the 3 For Me mix was stable at 18-19%, with the $10.99 tier comprising 56% of that. For the Triple Dipper, menu mix increased from 11% to 12%, and it represented 15% of dollar sales.

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CEO Kevin Hochman reported that GWOK improved to 2.9% in Q2, down from 3.5% a year ago and over 5% when he started, despite the massive traffic increase. CFO Mika Ware explained that while labor leverage was high in Q2, she expects it to be about half that level in the back half of the year as they invest to support the volume. She also confirmed that advertising dollar spend was flat year-over-year in Q2, with incremental spending shifted to the second half of the fiscal year.

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CFO Mika Ware confirmed double-digit sales and positive traffic in October but declined to be more specific. She noted that alcohol mix is flattish but more profitable, and the new lunch combos are a positive mix driver, shifting the full-year mix outlook from flat/negative to flat/positive. She also confirmed advertising dollars were flat year-over-year in Q1 and that R&M spend was up as expected, with savings to be realized in the back half of the year.

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CFO Tricia Tolivar reported no significant shifts in daypart performance and noted that sales transfer is a natural part of their growth strategy. She explained that infill locations ultimately grow the total market, stating that 'one plus one ends up being three,' which reinforces their confidence in the long-term white space opportunity.

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CFO Tricia Tolivar confirmed that the Q1 three-year same-store sales stack is expected to be in the high 30s, reflecting continued business strength. While not providing specific regional figures, she stated that AUV growth has been strong across all regions, underscoring the brand's proven portability.

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CFO Tricia Tolivar stated that sales strength is broad-based across all restaurant vintages, geographies, and income cohorts. She mentioned that dinner is increasing modestly but that there is a good balance between dayparts with no single area driving outsized growth. She confirmed new unit AUVs are exceeding expectations but did not provide a specific number.

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CEO Gerald Morgan expressed excitement about owning all California stores, noting the company is actively discussing how to accelerate its presence there. Interim CFO Keith Humpich stated that G&A should see leverage for the rest of the year, especially in Q4, and highlighted an annual rent savings of about $2.5 million from purchasing the support center.

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An executive clarified that the Easter shift had a 20 basis point positive impact on Q1 comps and a 50 basis point negative impact on the first five weeks of Q2. Regarding beef, the outlook remains for tightening supply and robust demand, with these factors and potential supplier production cuts incorporated into the updated 4% commodity inflation guidance.

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Executive Michael Bailen projected mid-single-digit dollar growth for G&A in 2025, which should allow for leverage, particularly in the second half of the year. CEO Gerald Morgan stated that on delivery, the company is 'continuing to learn' but is maintaining its current limited approach, with availability at Jaggers, most Bubba's locations, and only one Texas Roadhouse.

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President & CEO Chris Tomasso guided that adjusted EBITDA for the second half of the year is expected to be split about evenly between Q3 and Q4. CFO Mel Hope clarified that the impact from tariffs has become less significant, now estimated to be an immaterial 10 basis points for the full year, a notable reduction from previous concerns.

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CEO Chris Tomasso and CFO Mel Hope clarified that while almost the entire system receives some marketing support, there are targeted 'heavy ups' in specific markets. Regarding the macro environment, Mel Hope stated the belief that First Watch's higher-income customer demographic provides some protection against the spending pullbacks seen elsewhere in the industry.

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CFO Mel Hope noted that new units are typically larger, often successful second-generation conversions. CEO Chris Tomasso highlighted their proven ability to open successfully in diverse geographies due to disciplined site selection. Regarding guidance, Mel Hope stated that all cost factors are incorporated into the full-year adjusted EBITDA forecast of $124 million to $130 million, which serves as the primary financial guardrail.

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CEO Chris Tomasso highlighted that in-restaurant traffic turned positive in September and direct off-premise stabilized, indicating the improvement from July's lows. He confirmed weekends continue to outperform weekdays. Regarding value offerings, Tomasso stated the company's strategy is to use data for targeted messaging rather than pursuing a discount-led approach.

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CEO Rob Lynch attributed labor gains to a new performance scorecard, improved staffing metrics, and a new labor model. CFO Katie Fogertey added that while they expect continued labor wins, a heavier new opening schedule in Q3/Q4 is a factor in the guidance. Regarding kitchen innovation, Rob Lynch highlighted the new Atlanta Battery location, which uses new equipment prototypes for fry, make, and cold stations that have significantly improved service times and throughput.

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CEO Robert Lynch attributed the improved outlook to significant operational gains. In the near-term, a new labor model implemented in Q4 has materially improved productivity and agility. For the long-term, Lynch highlighted further process and equipment enhancements and major untapped opportunities in supply chain efficiency, including procurement and distribution, giving them confidence to raise guidance.

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CFO Katie Fogertey stated that the new labor scheduling system's success is directly coupled with operational strength. CEO Rob Lynch added that the improvement is driven by great operational discipline, particularly better adherence to allocated labor hours, which was not a focus in the past. He confirmed that lower-performing Shacks now have much better adherence, directly boosting profitability and confidence in margin expansion.

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Matthew Clark, Executive VP & CFO, explained that they are taking less effective pricing in the back half, with headline pricing dropping to around 3.5% and effective pricing closer to 2-2.5% due to the introduction of lower-priced menu items. He attributed North Italia's margin gains to operational execution, pricing flow-through, and favorable commodity costs. He also clarified that North Italia's comp would have been flat excluding the LA unit's impact.

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EVP and CFO Matt Clark stated that Q1 commodity costs were near breakeven and are expected to remain in the low single-digit range for the year, even with potential tariffs. He confirmed the Seattle closure and noted no others are planned. President David Gordon attributed Flower Child's success to its food quality, strong operational execution driven by a stable team, and the brand's overall appeal to today's consumer.

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EVP and CFO Matt Clark attributed margin strength to strong sales flow-through and record-high staff retention, which improved labor productivity. He provided comp details for The Cheesecake Factory (Price +4.2%, Traffic -0.4%, Mix -2.0%). President David Gordon noted strong North Italia openings were in existing markets with high brand awareness. Clark added that North Italia's margin improvement was driven by seasonality, strong volumes, and catching up on pricing.

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EVP and CFO Matt Clark projected a 25 to 35 basis point improvement in company-level four-wall margin for 2025. He attributed this to expected leverage on commodities, a tailwind on labor, relatively flat other operating expenses, and a 10 basis point improvement in G&A. He noted that while North Italia has more room for improvement, Cheesecake Factory's scale gives its margin changes a larger weighted impact.

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CFO Raj Vennam provided the breakdown for LongHorn's 6.7% same-restaurant sales growth, stating it was composed of 3.3% pricing and 3.4% traffic, with the overall check being flat to pricing.

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CFO Raj Vennam agreed that a bifurcation exists, with well-executing brands winning and chains taking share from independents, partly due to more moderate pricing. President and CEO Ricardo Cardenas added that the Q4 guidance is supported by a favorable comparison; last year featured a standard value message, whereas this year's 'Buy One, Take One' is a stronger traffic-driving promotion, complemented by the new delivery initiative.

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President and CEO Rick Cardenas clarified that Olive Garden's off-premise business is approximately 80% small orders and 20% catering. For Never Ending Pasta Bowl, he explained that while overall preference is up slightly, the more significant change is the increase in guests trading up to add a protein, with 60-65% of NEPB customers now doing so, which is an increase versus last year.

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CFO Darin Harper explained that higher other OpEx was driven by a $4.7 million increase in marketing and some incremental R&M spend. He noted that the special events business outpaced walk-in traffic and that while both brands performed similarly, there are 'greener shoots' appearing in the D&B business due to targeted initiatives.

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CFO Darin Harper stated he could not speculate on the exact impact but acknowledged the company may have 'overcorrected' by shifting almost entirely to digital from a previously heavy linear TV mix. He explained that recent testing indicates a need to rebalance the media mix to better drive top-of-funnel awareness. He concluded that the true test will be observing performance as the company implements this rebalanced strategy moving forward.

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CFO Darin Harper clarified that a $4 million gain from a lease termination was included in the 'other operating cost' line but is excluded from adjusted EBITDA. He quantified the impact of the two extra, low-volume operating days as approximately $4 million in incremental sales and $2 million in EBITDA. CEO Christopher Morris declined to disclose the specific impact of pricing on comps but stated there are no plans for meaningful price adjustments for the remainder of the year.

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CFO Vance Chang estimated remodel costs at $200k-$300k and explained that the P&L impact of incentives depends on franchise agreement extensions. CEO John Peyton added that renovated stores show a positive ROI. For Q1, Chang noted Applebee's check increased slightly while IHOP's declined due to mix shift from its value menu, with overall pricing normalizing in the low-single-digit range.

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CFO Vance Chang explained that IHOP's low-to-mid single-digit commodity inflation forecast is primarily driven by egg prices. He confirmed that franchisees have not implemented surcharges, as the company's supply chain co-op, CSCS, is effectively managing supply and securing competitive pricing despite the challenging market.

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CFO Vance Chang stated Q3 pricing was 2.7% at Applebee's and 6.0% at IHOP, with both expected to moderate to low-single-digits. On franchisee health, he noted that based on Q2 data, EBITDA dollars are steady but margin percentages are pressured. He highlighted that cost pressures are easing and the company's supply chain co-op has delivered $42 million in annualized savings to support franchisee P&Ls.

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CEO Mike Spanos identified the under-$100k household as the biggest pain point and area of customer loss since 2019. CFO Michael Healy clarified that the full-year guidance includes the negative impact from the 33% Brazil ownership but excludes any potential impact from tariffs due to uncertainty. Healy also confirmed there are no changes to the commodity outlook, noting that beef prices are well-protected through their contracting strategy.

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CEO Mike Spanos declined to share competitive details on the Outback lab but noted encouraging results in traffic and visit frequency. He affirmed the company feels good about its steak quality but is always working to improve. CFO Michael Healy confirmed the $225M G&A guidance includes a $12M bonus reload and $10M in IT investments, offset by $17M in savings from the organizational redesign.

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CFO Michael Healy declined to provide after-tax proceeds for the Brazil deal at this time. He stated that new domestic restaurants are hitting their expected returns, but the company will walk away from deals if rising build costs compromise those returns. He confirmed that Carrabba's is a potential growth engine, and the team is working to refine its investment return profile. For pricing, Healy reported it was approximately 4% in Q3 and expects it to be in a similar range, with a goal to take as little pricing as possible going forward.

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Executive Alex Kaleida noted that spot market wing inflation was over 100% in the quarter, but the company's supply chain strategy successfully mitigated the impact, and he expects food costs to step down in Q4. CEO Michael Skipworth added that the business has seen growth across every customer cohort and maintains strong quality and value scores, which he attributes to a disciplined pricing strategy.

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