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CFO Tricia Tolivar confirmed the current trend aligns with full-year guidance. CEO Brett Schulman added that no internal metrics have weakened; in fact, brand health scores and NPS have improved, and they have not observed any negative shifts in consumer behavior like trade-down.

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CFO Tricia Tolivar clarified that the guidance reflects current business trends, as the quarter ended April 20. She reported that new restaurants in markets like Indianapolis and South Florida are performing exceptionally well, meeting or exceeding the high performance of the 2023 and 2024 cohorts, which demonstrates the brand's expansive white space opportunity.

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CFO Tricia Tolivar confirmed that the exceptional performance of recent new restaurant classes, including the 2024 cohort, directly informed the decision to raise the targets for year 1 and year 2 average unit volumes and restaurant-level profit margins. She also confirmed the 2025 guidance assumes these new targets.

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CFO Tricia Tolivar described the current ~25% restaurant-level margin as outstanding. She explained that while the model has inherent leverage with AUV growth, the company's strategy is to reinvest potential gains back into team members and guests to drive long-term value and avoid 'overheating the engine.' She affirmed the model's power but stressed a mindful approach to leveraging it.

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Michael Bailen, Senior Director & Head of IR, projected commodity inflation could be as high as 7% in Q3 before moderating to the 4-5% range in Q4. CEO Gerald Morgan added that with the acceleration of Bubba's 33, total company openings could be on the high side of the approximate 30-unit target next year.

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Executive Michael Bailen acknowledged the softness, attributing it to a choppy start to the year and difficult comparisons to a strong 2024. CEO Gerald Morgan added that future pricing decisions will adhere to their established, methodical philosophy, considering the business climate, consumers, and operators before making changes.

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CEO Gerald Morgan expressed high confidence, citing strong Valentine's Day week sales ($183,000 average) as evidence of underlying demand. CFO David Monroe provided specifics, noting Q1 sales were negatively impacted by at least 1.5% due to calendar shifts and storm-related closures, but that the core business across all three brands remains strong.

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President & CEO D. Scott Barbour and VP Michael Higgins explained the infrastructure sales drop was due to tough comparisons against large airport projects from the prior year. Higgins noted that while overall project identification is flat, they are seeing more activity at the local level. For non-residential, Higgins stated that forward-looking indicators align with a tepid environment but highlighted strong sales and share gains in key southern states like Florida, Texas, and Tennessee.

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Executive Michael Higgins noted that adverse weather impacts all outdoor-installed products and that the Q4 guidance accounts for various weather scenarios. CEO D. Barbour clarified that the infrastructure decline was due to a difficult comparison against lumpy airport projects from the prior year, not a weakening of core IIJA-funded road and highway work, which remains consistent.

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CEO Scott Barbour affirmed that while performance ebbs and flows, he does not expect margins to revert to the levels guided at the 2022 Investor Day, and the company will present an updated long-term plan at the next Investor Day. He noted the current $250 million CapEx level is a reasonable baseline going forward and confirmed that share buybacks remain an option in the company's capital allocation mix, depending on market conditions and internal needs.

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CFO Josh Guenser clarified that while underlying traffic trends from Q2 continued into July, the Q2 results were exceptionally strong due to outperforming promotions. The Q3 guidance assumes a more normalized, yet still positive, impact from marketing. CEO Christine Barone added that they are maintaining a thoughtful balance with marketing to keep the customer experience fun and avoid becoming too predictable, which they feel is the right cadence for the business.

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CFO Josh Guenser confirmed that Q2 momentum is in line with expectations and that the company is rolling off approximately 150 basis points of price. He clarified that the ongoing traffic trend is normalized to adjust for the Q1 leap day. CEO Christine Barone added that the company feels very positive about the underlying traffic trends early in Q2.

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CEO Christine Barone attributed the Q4 strength to a combination of factors, including brand resonance, the Dutch Rewards program, effective paid advertising in new markets, and the successful ramp-up of mobile ordering, particularly in the morning. CFO Josh Guenser added that strong traffic allowed for reduced discounting, which benefited the average ticket. Christine Barone confirmed that the positive momentum continued into January.

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CEO Christine Barone expressed confidence in accelerating growth due to significant investments in the real estate team, data analytics, and construction processes. CFO Josh Guenser added that while progress is being made toward more capital-efficient leases, a specific timeline for achieving free cash flow breakeven will be provided at the early 2025 Investor Day, though he highlighted the positive $20 million cash addition in Q3.

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EVP & CFO Ian Borden attributed the strength to a solid foundation of value and affordability, including EDAP platforms and entry-level meal bundles, which has improved value scores across all large IOM markets. This was paired with strong menu and marketing execution, such as the global Minecraft campaign and the successful Chicken Big Mac in Germany. Chairman & CEO Chris Kempczinski added that success requires executing on all three pillars—value, menu, and marketing—and praised international franchisees for their pricing discipline despite significant cost inflation.

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CEO Christopher Kempczinski explained that the McValue platform is designed for long-term flexibility. He confirmed the $5 meal deal is performing well and will continue through 2025. However, he noted the 'buy 1, add on for $1' offer is not driving sufficient incrementality and that the U.S. team will evaluate if it's the best investment of margin dollars.

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CEO Christopher Kempczinski clarified that the impact is now localized to the Rocky Mountain region, where trends are improving. He defined a 'full recovery' as returning the business to delivering both positive guest counts and positive check growth. CFO Ian Borden added that customer trust levels have returned to pre-incident levels nationally and that the U.S. business ended December with slightly positive comparable guest counts.

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CEO Christopher Kempczinski framed the approach as an 'and,' not an 'or.' He asserted that McDonald's has ample resources to simultaneously reassure the public on safety while also continuing to drive its value and marketing initiatives. He confirmed that the U.S. team and franchisees are actively discussing the appropriate marketing plans moving forward.

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CEO Michael Osanloo acknowledged that a key lesson from Texas was the need for sustained marketing after a big opening, noting they had pulled back too much after the initial success of The Colony. He conceded that the pace of openings is a fair question and described finding the right balance between building density and supporting it with marketing as a 'nuanced balancing act' the company is actively evaluating.

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CEO Michael Osanloo asserted that neither the prototype nor the menu was the cause, instead pointing to site-specific issues like road construction and less aggressive pre-opening marketing compared to Dallas. Regarding the loyalty program, he expressed high confidence in meeting enrollment goals but stated it was too early to share detailed metrics, as the current phase is focused on testing and learning.

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CEO Michael Osanloo reported that the 'Restaurant of the Future' prototype is performing well in terms of revenue and traffic, comparable to traditional stores, and has emboldened the company to pursue a more aggressive 2.0 version. He also noted that the streamlined menu test in Houston, which removed 15-20% of SKUs, has been successful in reducing complexity and aiding throughput without significant negative feedback, but it remains a new-market strategy for now.

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CFO Michelle Hook explained the Q4 guidance is cautious due to macroeconomic pressures, competitor discounting, and tough year-over-year comparisons, which offset some kiosk benefits. CEO Michael Osanloo characterized the Dallas advertising as an opportunistic, brand-building move to drive trial and awareness as the market scales to 8-10 restaurants.

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CFO Chris Turner expressed confidence in meeting the 8% growth target. He stated that the second half does not require a significant sales acceleration and will be supported by stronger company store profit growth at Taco Bell and KFC UK, lapping approximately $30 million in prior-year bad debt, and back-half weighted refranchising gains. Turner noted that Q3 G&A is expected to increase by double digits, making Q4 profit growth stronger.

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CFO Christopher Turner expressed confidence in the full-year plan, noting the strong 8% start in Q1. He explained that while Q1 company store margins are seasonally low, they are on plan for the full year, including 24-25% for Taco Bell U.S. He mentioned that Pizza Hut had an $8 million negative impact from strategic moves in Q1 but has favorable profit laps in the second half, expecting roughly flat profit for the full year. Turner emphasized the plan is not dependent on sequential same-store sales acceleration.

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CFO Chris Turner explained that while 2025 G&A will increase by a low single-digit percentage (plus a ~$35M headwind from resetting incentive compensation), the long-term expectation is for G&A as a percentage of system sales to decline. He stated that the company will continue to gain leverage on its G&A as the top line grows, while still making strategic investments in capabilities like AI and supply chain to support long-term health.

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CEO David Gibbs clarified that his comment about sales momentum continuing from Q3 into Q4 was specific to the Taco Bell brand. For KFC, he noted that forecasting is more difficult due to its exposure to the Middle East conflict. While the year-over-year sales comparison for KFC will become easier in Q4, he stated it is still uncertain how sales will behave once the company begins to lap the most significant impacts of the conflict.

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President and CEO Bill Waltz explained that the majority of the unmitigated $50 million headwind for FY26 is a mathematical year-over-year impact from lower 2025 pricing, primarily in PVC. He expects steel conduit pricing to be up year-over-year. CFO John Deitzer added that the net $50 million figure already includes assumptions for normal productivity and volume growth. Regarding capital allocation, Waltz reaffirmed the full-year $150 million share buyback target and stated that the framework for next year has not yet been set.

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President and CEO William Waltz noted that while PVC imports were up significantly, steel conduit imports were down year-over-year. He explained that the 25% tariff on steel conduit is a net positive for Atkore. CFO John Deitzer added that steel commodity volatility makes pre-pandemic price comparisons difficult, but they are seeing sequential improvement. Waltz stated the volume outlook balances cautiously optimistic customer feedback against negative macro indicators like the Dodge Momentum Index.

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CEO William Waltz responded that the PVC pricing pressure is from a combination of both increased imports and domestic competitors expanding their market presence. CFO John Deitzer detailed the volume outlook, identifying metal framing, cable management, and construction services as key growth drivers fueled by data center and large manufacturing projects. He stated the next largest contributor would be the plastic pipe category, driven by new water-related products expected to ramp up in the second half of the year, which should help the company achieve its low to mid-single-digit full-year volume growth target.

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EVP & CFO Michael Lucareli cited new program wins and customers accelerating orders as key growth drivers. President & CEO Neil Brinker highlighted the successful introduction of chiller technology in North America. Lucareli estimated the recent acquisitions would add about $100M in partial-year revenue and announced a temporary pause on M&A to focus on integration and the data center expansion. Capital will be heavily prioritized for data center growth.

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Chairman, President & CEO Aaron Jagdfeld stated that home standby is holding a new, higher baseline of demand despite light outage activity in the first half of the year. He noted that installations were up year-over-year and the dealer network continues to grow. While home consultations were down against a strong prior-year comparable, the Southeast region remains robust. He also highlighted strong market share gains in portable generators, with inventories being replenished for the storm season, which impacted Q2 working capital.

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President and CEO Michael Skipworth explained that the outlook for a return to growth in late Q3 is based on current trends running against easing prior-year comparisons, not an assumed acceleration, acknowledging some consumer softness early in the quarter. Regarding the Smart Kitchen, Skipworth noted that while it's too early to formally quantify a lift for guidance, markets like Dallas-Fort Worth are seeing meaningful sales outperformance after about four months of implementation, validating its game-changing potential.

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Executive Alex Kaleida stated that while there is a slight lag, restaurants with the Smart Kitchen are showing a positive sales divergence versus control groups, citing a 5% conversion lift in a Dallas delivery test. CEO Michael Skipworth clarified that the 2025 guidance does not include any benefit from the Smart Kitchen rollout, attributing the expected back-half acceleration to easing comps and existing strategies. He noted the rollout is ahead of schedule, targeting completion by year-end.

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CFO Alex Kaleida explained that while there is a slight lag, restaurants with the Smart Kitchen are showing a positive sales divergence versus control groups. He cited a Dallas-Fort Worth test that saw a 5% increase in delivery conversion. CEO Michael Skipworth clarified that the 2025 guidance does not include any benefit from the Smart Kitchen rollout, positioning it as a potential upside and a long-term catalyst for growth.

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CEO Michael Skipworth suggested that looking at the business on a three-year same-store sales stack would show no material change in the underlying trend, emphasizing continued healthy transaction growth. He clarified that the 750-unit opportunity includes newly signed agreements for France, several Gulf Coast countries, and Australia.

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EVP & CFO Cathy Smith explained that the investment in the 'Green Apron Service' model is foundational. She stated that the company is actively working on cost efficiencies across the entire P&L, including COGS, operating expenses, and G&A, to offset the investment. While not quantifying the exact offset, she emphasized that they see significant long-term opportunities to build a more durable and efficient cost structure that will improve flow-through as top-line growth returns.

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CFO Cathy Smith explained that the Green Apron service investment is a foundational operating model. To offset the cost, she stated the company is pursuing efficiencies across the entire P&L, including cost of goods sold, operating expenses, and G&A. While not quantifying the exact offset, she noted significant opportunities for both short and long-term savings are being pursued to improve flow-through as top-line growth returns.

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Brian Niccol, Chairman and Chief Executive Officer, explained that new build and renovation costs have become too high. As a result, Starbucks is temporarily slowing its development pace to engineer a new, more cost-effective store design. He reaffirmed the long-term goal of doubling the U.S. store count but emphasized the need to do so with improved unit economics.

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CEO Brian Niccol attributed the improvement to a shift from discounting to broad-based marketing, which resonated with non-Rewards customers and boosted morning daypart traffic. He noted that partners are embracing the new strategy, enhancing the in-store experience, and creating positive momentum, describing them as 'baby steps' in the right direction.

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CEO Brian Niccol outlined that the redesign aims to reduce renovation costs while enhancing the 'coffee house' feel with more comfortable seating. A critical goal is to physically separate the in-store counter from the mobile order pickup area. Operationally, the redesign supports the sub-4-minute service goal. A broader remodel schedule is still under consideration.

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CEO Scott Boatwright attributed the current performance largely to the macroeconomic environment, noting that low-income consumers are currently prioritizing value as a price point. He expressed strong confidence that as consumer sentiment improves, the business will return to its mid-single-digit growth trajectory, and that the leadership team has a clear path to achieve this.

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CEO Scott Boatwright asserted the brand has never been stronger, citing record performance in brand perception KPIs and strong operational metrics, leading him to conclude the slowdown is external. CFO Adam Rymer confirmed that the current trend line supports the Q2 outlook and a slightly positive full-year comp, with planned initiatives expected to lift results to the low single-digit guidance.

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CFO Adam Rymer detailed that Q1 comps are expected to be flattish due to tough comparisons from prior successful campaigns and a later Easter, with Q2 being a low point before reaccelerating in the second half. CEO Scott Boatwright clarified that the upcoming LTO, expected around mid-to-late March, is not included in the current guidance, expressing confidence in the full-year marketing calendar.

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CFO Adam Rymer confirmed there was nothing unusual in new unit performance, with productivity remaining in the low 80% range. Interim CEO Scott Boatwright added that year-two ROI is holding steady. On margins, Scott Boatwright expressed confidence in reaching the high-20s, stating the long-term algorithm of 30% margins at $4 million AUVs still holds, supported by future efficiencies. Adam Rymer noted that Q3 margin was impacted by temporary factors like portion investments and avocado cost comparisons.

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President and CEO Kevin Holleran noted that after a slow start to the year, March was a 'really strong sales out month,' and April trends are reflected in the confirmed guidance. He added that the new OmniX platform is expected to be a tailwind. CFO Eifion Jones detailed other cost levers, including variabilizing production inputs to avoid fixed costs, SKU rationalization programs, value engineering, and investing in automation as production is transferred to U.S. facilities.

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EVP and CFO Matt Clark acknowledged that while Q1 results were stable, the environment feels less robust than a few months prior, making a prudent outlook necessary. He confirmed that the math behind the revised revenue guidance aligns with a lower comparable sales assumption, reflecting updated forecasts for GDP and disposable income.

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EVP and CFO Matt Clark explained the higher revenue forecast is due to increased unit growth and more front-loaded openings, resulting in more operating weeks. He noted that the margin outlook is tempered by higher preopening expenses and the impact of a greater number of less-mature restaurants, though he reiterated confidence in 30-40 basis points of margin expansion at the mature restaurant level.

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CFO Raj Vennam explained that Darden's exposure is limited, as approximately 80% of its cost basket is sourced domestically. For the 20% that is imported, the company is not the importer of record for most products and has flexibility to switch some items to domestic sources. He confirmed the supply chain team is actively working on mitigation strategies, including inventory management, alternative sourcing, and vendor negotiations.

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Executive Rajesh Vennam attributed the CapEx increase to the Chuy's acquisition and accelerated spending to build the new unit pipeline for next year. He clarified that the future run rate depends on the pace of new unit growth, with the base for maintenance and IT CapEx remaining around $300 million annually.

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President and CEO Rick Cardenas explained that avoiding the marketplace was crucial to protect margins, given Olive Garden's existing $1 billion to-go business which operates without delivery fees. He stated that being on a marketplace would be a significant margin disruptor unless it was massively incremental. Cardenas positioned the Uber Direct partnership as Darden's strategic entry into delivery, allowing them to maintain control over data and the guest experience, while leaving the door open to re-evaluate a marketplace presence in the future.

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CFO Anselm Wong confirmed that New Construction is slowing while R3 is picking up, which is factored into the 2025 guidance. CEO Ramey Jackson added that the company's focus on well-capitalized customers is advantageous in the current climate. Regarding margins, Anselm Wong projected high single-digit price declines for the storage business and explained that due to a six-month lag in steel purchasing, a large portion of the year's costs are already set. Both executives noted that while steel producers may raise prices, ultimate costs will depend on market demand, but they do not foresee prices decreasing.

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CEO Sean Bagan stated that end-market performance is more impactful than typical seasonality. The back-half weighted outlook is supported by current order trends, OEM forecasts, and improving macro indicators. Corporate Controller Jeremy Evans added that distributor inventory levels saw their first decline in several quarters. Regarding margins, Bagan identified volume as the primary driver for the guidance range. He also confirmed the systems-oriented approach remains unchanged and is central to becoming a preferred supplier by designing integrated solutions for customers.

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CEO Rob Lynch highlighted that taking approximately one minute off average wait times in a year was a significant achievement, but emphasized they are 'not even close' to industry standards. He stated they still have 'another minute to go' before getting into the ballpark of where he wants to be. He explained that improving speed drives throughput at peak hours and also increases lifetime value by reducing a key barrier to frequency. Short-term process and equipment changes, plus long-term kitchen designs, are aimed at this goal.

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CFO Shashank Patel explained that margin expansion will be driven by price increases and broad productivity savings, which are expected to more than offset inflation and slight volume deleverage. Regarding Europe, both he and CEO Robert Pagano noted the first half will be the most challenged due to heat pump destocking, with the full-year decline being front-loaded in Q1, leading to easier comps in the second half.

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