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CFO Mika Ware and CEO Kevin Hochman explained that the reimage program is in an early learning phase. The company will remodel four test restaurants in the Dallas area with varying scopes to determine the right package before scaling. They are focused on getting the plan right before moving with speed and do not expect to reach a 10% annual run rate until the start of calendar 2027. Specific investment and return details will be shared later.

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Co-Founder, CEO & Director Jonathan Neman reported that new member sign-ups remain strong at around 20,000 per week, primarily driven by in-store conversions. To further boost acquisition and improve experience, a scan-and-pay feature will be rolled out later this year. He added that the company is actively testing personalized offers for different customer cohorts to drive frequency and expects the loyalty program to become a significant digital flywheel for the business.

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CFO Mitch Reback stated that the Q3 opening pace was in line with internal models and expectations, with openings intentionally scheduled late in the quarter. He declined to provide specific 2025 margin guidance at this time, indicating it would be shared on a future earnings call.

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CFO Sami Siddiqui explained that the acceleration is a direct result of strong demand from multiple sources: internal leaders at Carrols, new prospective franchisees, and existing high-performing Burger King operators. Executive Chairman Patrick Doyle added that the opportunity for Carrols' own high-potential talent to become owners creates a powerful incentive that is driving strong operational performance within that portfolio.

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CEO Josh Kobza reported that Tim Hortons grew its dollar share in hot brewed coffee year-over-year. He acknowledged some softness in breakfast sandwiches but expects improvement from new promotions. He highlighted that the focus for the rest of the year will be on cold beverages for the summer and PM foods, with new launches planned for both. CFO Sami Siddiqui added that the PM food share did increase in the quarter, driven by the impact of flatbreads and loaded bowls, indicating successful growth in that daypart.

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CEO Josh Kobza provided a brief response, stating that there was 'nothing too new to call out this quarter in terms of income cohort performance' and that the trends observed have remained consistent over the last few months, indicating no significant shifts to report.

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CEO Shuky Nir explained the gap by noting that some distributors have not yet fully normalized inventory and that levels fluctuate based on seasonality and anticipation of new products. CFO Asaf Alperovitz confirmed that the company will lose its natural FX hedge but has an active policy to hedge major currencies and will adapt its methodology to manage the new revenue flows.

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CEO Yehoshua Nir stated that while the company is pleased with commercial battery growth, it does not provide specific product numbers. He confirmed the new Nexus battery is on track for Q4 2025 shipments. Regarding tariffs, he explained the margin impact estimate is based on known rates (145% from China, 10% from others) and that the supply chain team is actively seeking alternative sources without compromising quality.

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CFO Ariel Porat clarified that while some of the prepayment amount was related to safe harbor, it was not the full amount, as it also includes other customer agreements. Regarding 45X, he stated the company believes it can monetize credits in subsequent quarters, contingent on market demand.

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Interim CEO Ronen Faier asserted that the decision was business-driven, not accounting-driven. He explained that the company initially used promotions instead of permanent price cuts to avoid harming distributors holding higher-cost inventory. The decision to finally cut list prices was made after observing continued market decline in Europe and determining that the previous promotional strategy was no longer sufficient. He stated he was not sure the outcome would have been different if the cuts were made earlier.

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CEO Christine Barone described their innovation process as a mix of "art and science." It involves monitoring market trends, followed by rigorous customer panel testing, name testing, and concept testing. She emphasized that they innovate simultaneously across all platforms (coffee, energy, etc.) because customers drink across categories, allowing them to feature different innovations throughout the year.

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EVP & CFO Ian Borden expressed high confidence in meeting the 2025 target of 2,200 openings and the long-term goal of 50,000 restaurants. He stated that development decisions are based on long-term returns, which remain in line with expectations for new units. Chairman & CEO Chris Kempczinski added that a recent leadership review confirmed that multi-year development pipelines are in 'really good shape,' supported by granular analysis of open trading areas.

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CEO David Gibbs described Taco Bell as uniquely positioned for beverage growth, building on the success of Baja Blast. He explained that the Live Mas Cafe pilot produced 'stellar' results, prompting an aggressive expansion plan to 30 locations. The recent launch of Refrescas is another key part of this strategy. Gibbs also mentioned that KFC is testing a similar beverage program called 'Quench,' indicating a broader company focus on the category.

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CEO Rob Lynch explained the company is testing top-of-funnel paid media for the first time to support its 18-month culinary calendar, aiming to shift comp growth from pricing to traffic. CFO Katie Fogertey confirmed the higher G&A guidance reflects this incremental media investment but clarified that any potential revenue or profit lift from the new advertising is not yet included in the company's outlook.

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President and CEO Michael Skipworth stated that value bundles like '20 for 20' are a core part of their playbook and performed very well, noting they are designed to be margin-accretive and actually resulted in a higher average check than typical orders. SVP & CFO Alex Kaleida added that they have not seen a meaningful shift in deal mix, though the previously noted pressure on lower-income Hispanic consumers persists, with those guests managing their tickets but still engaging with the brand.

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CEO Brian Niccol explained the decision was driven by strong pilot results, which demonstrated the ability to effectively hire, train, and deploy partners, complemented by the success of the SmartQ order sequencing technology. This combination led to positive transaction movement. He stated that success will be tracked via a new 'growth scorecard' focusing on key drivers like customer metrics, staffing, and speed, which are proven to drive transaction growth.

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Chairman & CEO Brian Niccol explained the acceleration was due to strong pilot results demonstrating the ability to hire, train, and deploy effectively. The combination of new staffing models and SmartQ technology drove positive transaction movement. He added that ongoing success will be tracked via a new 'GROW report' focused on key drivers of same-store sales, allowing the new model to be in place for the critical fall season.

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CEO Brian Niccol reiterated that investments in throughput, pricing, marketing, and the cafe experience will drive traffic. CFO Rachel Ruggeri added that while efficiency remains a priority to fund investments, the specific $1 billion target will be reassessed as part of the new 'back to Starbucks' plan. The focus is on continuous efficiency to support growth and future margin expansion.

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CEO Scott Boatwright stated that Jason Kidd's extensive retail experience is expected to bring a fresh perspective and create a 'step change' in operational performance. Regarding marketing, he confirmed that learnings from 'Summer of Extras' will inform future digital strategy and that marketing spend could increase to 3% or more, provided it continues to be return-focused.

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CFO Raj Vennam responded that consumer behavior is primarily driven by household income rather than age. He reiterated that growth in casual dining is occurring across most income levels, with the exception of households earning below $50,000, and that higher-income households are showing more growth. He noted age is more of a correlation to income than a distinct factor.

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Chief Customer and Digital Officer Ryan Ostrom responded that sales pressure has been spread evenly across dayparts, with some weakness at lunch and dinner. He noted recent successes with LTOs like the Nashville hot mozzarella sticks and a Red Bull partnership. He reiterated the plan to focus on a barbell strategy balancing premium ticket-driving items with value offerings to drive traffic.

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CEO Julian Nebreda expressed confidence that the company's blending strategy will remain competitive, noting that Fluence will also benefit from lower global prices on the imported portion of its mix. He emphasized that Chinese producers have limited room for further price reductions. Nebreda dismissed the idea of customers mixing their own batteries, stating that Fluence's value is not in the commodity cells but in its proprietary Battery Management System (BMS), integration expertise, logistics, and service capabilities, which ensure high system availability.

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President and CEO Julian Nebreda confirmed the accelerated imports are factored into the working capital needs. He described customer demand for domestic content as 'very, very strong' and stated that this interest has not changed significantly since the election, as these are long-term project decisions.

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Executive Connor Teskey outlined two primary strategies: either locking in all costs upfront to transfer risk to the supplier, or embedding PPA price adjusters to pass costs to the customer. Executive Hannah Labuschagne added that contracts are specific, covering all tariff changes, and that strong global supplier relationships allow for swift renegotiations without significant delays. Teskey asserted there is 'more than enough' cushion to pass through costs, as renewables' cost advantage over other power sources is significant and growing.

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Connor Teskey, an executive, and Hannah Labuschagne, Global Head of Procurement, detailed two primary risk mitigation strategies: locking in fully wrapped EPC contracts where the supplier bears the risk, or embedding PPA price adjusters to pass costs to the customer. Labuschagne specified that contracts typically cover all tariff changes post-signature and that strong supplier relationships prevent significant delays. Teskey added there is 'more than enough' cushion to pass on costs, as renewables' cost advantage continues to widen.

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Connor Teskey, an executive, and Hannah Labuschagne, Global Head of Procurement, detailed two primary risk mitigation strategies: either locking in fully wrapped contracts where the supplier bears tariff risk, or embedding PPA price adjusters that pass costs to the offtaker. Labuschagne specified that contracts typically cover all tariff changes post-signature and that strong global supplier relationships prevent significant delays. Teskey added that there is 'more than enough' cushion to pass on costs, as renewables are significantly cheaper than alternatives, a margin that continues to widen.

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EVP and CFO Matt Clark agreed with the observation, suggesting several structural reasons. He noted a long-term consumer shift toward eating away from home, particularly in full-service, and that the casual dining consumer is less sensitive to economic pressures affecting lower-income cohorts. He also cited a cultural shift where dining out is an ingrained part of people's routines, supporting stability in the business.

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President David Gordon stated the goal for 2025 is to maintain the record-low attrition levels achieved in 2024, supported by a stable macro environment and strong internal programs. He explained that The Cheesecake Factory's value proposition is multi-faceted, including a broad range of price points, large shareable portions, and the overall dining experience, which resonates well with guests without changing key messaging.

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President and CEO Badri Kothandaraman confirmed the initial 10C rollout will be a non-domestic version, with a domestic content version to follow in 2-3 months. He explained the additional margin pressure in Q2 is because the new 4th-gen batteries, shipping in smaller initial quantities, will have a slightly higher tariff impact compared to the existing pre-tariff inventory of 3rd-gen products.

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Chief Products Officer Raghu Belur explained that after achieving the primary UL certification, Enphase is now engaged in utility-specific testing with all three California IOUs, which are at different stages. He described the experience as positive. President and CEO Badrinarayanan Kothandaraman added that the safe harbor deal was a broad 'risk mitigation strategy' that could encompass factors including domestic content and future ITC changes.

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President and CEO Badri Kothandaraman explained that Q3 battery shipments were for channel restocking, and Q4 shipments of 140-160 MWh reflect a normalized equilibrium between sell-in and sell-through. The 43% U.S. revenue increase in Q3 was due to ending the practice of under-shipping, aligning shipments with actual demand. In Europe, where sell-through fell 34%, Enphase is deliberately under-shipping to manage elevated channel inventory.

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CEO Mike Spanos explained that menu simplification is complementary to improving the guest experience. By removing low-mix, low-satisfaction items that also create operational complexity, the company can improve quality and consistency, which enhances guest perception and morale while also reducing back-of-house labor costs. This synergy is expected to support, not hinder, the value proposition.

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CEO Gerald Morgan explained that while corporate resources support all three brands, the strategy is to build separate support structures for each to understand their unique business needs. Growth is dictated by having the right people, strategy, and execution for each concept. He noted they have distinct Heads of Operations for Roadhouse, Bubba's, and Jaggers/International to ensure each business gets the investment and focus required to grow successfully.

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CEO Brandon Moss clarified that timelines are determined by weekly reviews of customer construction schedules, not company discretion. CFO Dominic Bardos explained that backlog is supported by firm contracts, making cancellations rare. Awarded orders, which are pre-contract, can be delayed or moved back to the pipeline if a project's status changes, but are not typically cancelled outright.

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CFO Chuck Boynton attributed the strong Q1 and Q2 margins to excellent execution, a significant uptake in high-margin TrueCapture software, and accumulated 45X benefits that will not repeat. He noted that about 300 basis points of Q2's outperformance are unlikely to recur. He defined 'structural gross margin' as the blended average margin profile (high 20s to low 30s) expected from the company's typical 2/3 U.S. and 1/3 international business mix.

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