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CFO Mika Ware advised that backing out the recent accelerated depreciation provides a good dollar run-rate for fiscal 2026. CEO Kevin Hochman explained the 'north of six' initiative involves applying best practices from restaurants with over $6M AUVs to the rest of the system. This includes operational changes like staffing, scheduling, and increasing delivery frequency to improve throughput within the existing restaurant footprint.

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CFO Mika Ware guided that Q4 G&A and D&A, in absolute dollar terms, would be very similar to Q3. Regarding traffic, she explained that with growth over 20%, it is coming from all sources: all income levels, all age groups, new guests trying the brand, and existing guests returning more frequently.

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CEO Kevin Hochman stated that the current marketing mix is working exceptionally well, so there are no plans for a major shift in the allocation between channels like TV and social media in the near term. CFO Mika Ware added that what is most encouraging is the consistency of growth across all segments: every income level, demographic, daypart, and service mode is growing, reinforcing the sustainability of the turnaround.

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Interim CEO & CFO Ken Cook confirmed that advertising spend is expected to be down in 2025 due to lower-than-expected sales, which compresses the ad fund budget, particularly in the second half. He stated the focus is on increasing media effectiveness through new data analytics and optimizing the media mix. While not committing to a specific contribution, he said the company will always evaluate investing company funds where there is a good ROI for the system, keeping the option on the table.

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Ken Cook, CFO, characterized Q1 as a 'noisy quarter' due to weather impacts early on. He noted that while the Thin Mints Frosty launch drove positive sales in late February, a significant deterioration in consumer confidence led to a pullback in March. Cook specified that the pressure was broad-based but more acute for households with incomes under $75,000, and that the breakfast daypart underperformed the rest of the day during this period.

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CEO Kirk Tanner explained the capital allocation policy provides flexibility to both pay an attractive dividend and accelerate growth investments in units and technology. He added that the current stock price presents an attractive opportunity for repurchases. CFO Ken Cook clarified the plan is to refinance $400 million of debt maturing in 2025 and 2026, while expecting total gross debt to decline slightly through amortization, aiming to lower the net leverage ratio via EBITDA growth.

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CFO Gunther Plosch reported that the Biggie Bag platform performed well, with its sales mix increasing year-over-year and helping to maintain market share. He outlined a holistic value strategy that extends beyond price, focusing on menu innovation, a strong core menu, and superior operational execution to win with value-seeking consumers.

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CFO Mitch Reback attributed the labor improvements to effective workforce management, lower team member turnover, and record-high head coach stability, stating he anticipates further gains. He clarified that the NYC closures were strategic relocations of older, smaller-footprint stores with expiring leases, not a sign of market trouble, and that only a handful of similar opportunities might exist in other mature urban centers.

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CFO Mitch Reback clarified that tariffs would add approximately $150,000 to a standard $1.5 million build-out and $100,000 to a $500,000 Infinite Kitchen, a total impact of just over 10%. CEO Jonathan Neman added that they have pre-purchased materials to mitigate the 2025 impact and are working on cost optimization. Regarding value offerings, Neman explained they would introduce items through seasonal menus and core offerings to fill price gaps, rather than a "value menu," and leverage the new loyalty program for targeted promotions.

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CEO Jonathan Neman explained that a key learning from 2024 was the importance of newness, leading to a strategy of creating a 'drumbeat' of new menu launches, including seasonal items, chef collaborations, and fries. This will be supported by a full-funnel marketing approach, with capital being shifted from G&A to marketing. CFO Mitch Reback added that the increased marketing spend will primarily occur from Q2 through the end of the year.

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CFO Mitch Reback stated that September was the strongest month of Q3 and that the momentum continued into October, with comps tracking within the updated 6-7% guidance. CEO Jonathan Neman added that the marketing strategy has shifted to a full-funnel approach, with a focus on local and community marketing, and highlighted the upcoming 2025 loyalty program as a key lever.

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CEO Lance Tucker explained that franchisees understand the need to drive traffic and that a balanced, profitable barbell strategy is key to gaining their support. He confirmed a third-party is helping review menu architecture to add more entry-level 'good' options. While menu size is being considered, he stressed that variety is a core brand equity. EVP Ryan Ostrom added the goal is to fill the value gap between the sub-$4 and $10+ price points.

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CEO Darin Harris explained their strategy focuses on brand positioning and optimizing media spend to target the right audience with tailored offers across dayparts and digital channels. CFO Brian Scott provided specific pricing guidance for FY2025: 3-4% for Jack in the Box and 5-6% for Del Taco, noting the Del Taco increase is partly tied to its new menu rollout.

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EVP & CFO Ian Borden confirmed that G&A spend is typically weighted to the second half of the year, particularly in 2025 due to the timing of transformation and tech projects. Chairman & CEO Chris Kempczinski explained that while some beverages will always be part of the value menu, the larger opportunity is in full-margin products. He noted that learnings from CosMc's suggest they can offer compelling beverages that are priced attractively relative to competitors but still deliver strong margins for the system.

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CEO Christopher Kempczinski described beverages as a significant, profitable growth opportunity where McDonald's is under-indexed. He shared that learnings from the CosMc's test showed that operational complexity is manageable and that consumers expect food with any McDonald's-branded beverage offering. These insights are informing the new in-restaurant test, though the ultimate investment requirements are still being determined.

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CEO Christopher Kempczinski reaffirmed that the company remains very bullish on the high-growth, high-margin beverage category. He noted that learnings from the CosMc's test are ongoing, with smaller-format stores with drive-thrus showing better performance. The company is still evaluating whether to capture the opportunity through stand-alone concepts like CosMc's or by enhancing offerings within existing McDonald's restaurants.

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CFO Ian Borden expressed confidence in driving margin growth as sales momentum is restored, emphasizing that volume is the key driver. Regarding pricing, he noted consumer resistance and stated that future price increases would be at 'more conservative levels' until momentum fully returns. He also highlighted influencing mix with full-margin promotions as another way to achieve 'effective pricing'.

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President & CEO Chris Tomasso indicated it was too soon to determine the exact impact on visit frequency but noted the company is getting 'first calls' on newly available high-quality sites, suggesting the trend will continue for the next few years. CFO Mel Hope added that the company has become very proficient at converting these larger, second-generation spaces quickly and profitably, which supports their development strategy.

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CFO Mel Hope stated it was too early to analyze consumer value scores but noted that higher labor costs are partly due to carrying extra managers to support rapid new unit growth. Hope also clarified that the tariff pressures relate primarily to supplies from Asia, such as packaging and paper goods.

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CEO Chris Tomasso stated that marketing spend is evaluated for efficiency, not as a fixed ratio, and is under review for 2025. CFO Mel Hope quantified the third-party traffic decline as mid-teens. Tomasso attributed new unit outperformance to improved site selection, restaurant design, and operational execution, leading to significantly higher AUVs.

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CEO Kelli Valade explained the promotional shift was to refresh the value offer for summer and balance franchisee profitability, noting the new offer was also margin-positive. She stated the pressure in key markets was tied to specific headlines that peaked in mid-June but have since shown signs of moderating. EVP & CFO Robert Verostek added that margin recovery is expected due to easing commodity costs and G&A savings.

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CFO Robert Verostek said the egg surcharge impact was minimal. CEO Kelli Valade detailed margin mitigation efforts, including promoting beverage add-ons, growing the high-margin off-premise business (now 22% of sales), and improving operational efficiency. She also expressed confidence in the 70-90 closure guidance. Robert Verostek noted the main tariff risk is macroeconomic rather than direct build costs.

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CEO & President Lyle Tick stated the Pizookie Meal Deal mixes at approximately 15% of total weekly sales and 22% during weekdays, with healthy checks in the high $40s. He emphasized that these guests return more frequently and often become high-value omnichannel customers. On the labor model, Tick clarified its primary goal is improving hospitality and sales, with labor efficiency being a secondary benefit. He also noted seeing no significant changes in restaurant closures or openings in their key markets.

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President Lyle Tick explained the menu strategy involves a category-by-category approach to eliminate the long tail of low-margin items, citing a reduction of three Pizookie SKUs as an example. On marketing, he stated there are no plans for material changes in spend, with a continued focus on targeted, narrowcast media and social listening. Regarding off-premise, CFO Tom Houdek noted it trended slightly better than the overall business, driven by third-party delivery, while Tick acknowledged there is still significant opportunity to reduce friction and optimize merchandising for that channel.

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CEO Brian Niccol explained that innovation will be designed to be relevant for specific dayparts and occasions, which may involve different sizes or price points. He stressed that while Starbucks is a premium brand, it can deliver value in premium ways. Regarding future pricing, he reiterated his philosophy that it is the 'last lever' to pull and will only be used when necessary and in the smallest amount possible.

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Chairman & CEO Brian Niccol explained that innovation will be tailored to specific dayparts and occasions, which could involve different sizes and price points. He stressed that as a premium brand, any value offered will be through a premium lens. Regarding future price increases, he reiterated his stance that pricing is the 'last lever' to pull and will be used as minimally as possible only when necessary.

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Brian Niccol, Chairman and Chief Executive Officer, confirmed the 'Green Apron service model' will roll out to all U.S. company-operated stores. He explained it will be adapted to fit different store formats, such as adding labor for mobile order fulfillment in busy urban cafes or dedicating a partner to the drive-thru in suburban locations. The goal is to improve service and drive transaction growth.

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CFO Rachel Ruggeri clarified that Q2 EPS will be the lowest of the year on an absolute basis and that year-over-year pressure will intensify. CEO Brian Niccol addressed the strategic question by emphasizing that innovation in both food and beverage is key. He explained that by innovating across occasions and taste profiles, the company can manage its pricing architecture to remain a premium, yet accessible, brand, even as it expands its physical footprint.

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CEO Brian Niccol expressed confidence that licensed partners like Target will embrace the 'back to Starbucks' strategy. While not quantifying the financial impact of menu simplification, he stated that removing the non-dairy upcharge is the 'right investment' to reengage customers. CFO Rachel Ruggeri noted that investments will be weighted to the first half of the fiscal year, with results expected to build in the second half.

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David Gordon, President, explained that the rewards program's data is key for targeted messaging to drive specific dayparts like lunch. Matthew Clark, CFO, added that the new 'bowls' are also designed to perform well in the delivery channel. Regarding Flower Child's growth, David Gordon stated that while they could build faster, they are comfortable with the current ~20% growth rate to ensure operational excellence and proper manager development, which is the key focus.

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EVP and CFO Matt Clark credited operators for productivity gains driven by improved retention, which led to lower training and overtime costs, but suggested the rate of improvement may taper. He quantified the marketing and rewards drag on other OpEx at about 15 basis points. Both Clark and President David Gordon humorously declined to provide a specific member count, stating only that it is 'a lot' and continues to grow.

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EVP and CFO Matt Clark confirmed the guidance includes assumptions for refinancing the convertible debt. President David Gordon stated the rewards program is performing well, with member acquisition exceeding expectations, but will remain focused on The Cheesecake Factory for now. Clark added that effective pricing in 2025 is expected to be around 4%, consistent with prior plans.

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CFO Jeff Uttz reiterated that taking price is a last resort for offsetting tariffs, noting they have some pricing power available as effective pricing drops to 1% in November. SVP Benjamin Porten described the 'light rice' option as a way for guests to order sushi with smaller rice portions, which he believes will drive higher plate consumption and average check. For FY26, the new store pipeline is expected to be 70% existing and 30% new markets. He added that having more IP campaigns provides more opportunities to find successful partners and repeat them.

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Jeff Uttz clarified that effective pricing was about 4.5% in Q1 and is expected to be slightly over 5% in Q2. He explained the revenue guidance is intentionally conservative to ensure targets are met, avoiding a repeat of a prior-year guidance reduction. Hajime Uba, through interpreter Benjamin Porten, stated that an IP collaboration costs approximately $200,000 more than a food-focused campaign. Benjamin Porten assured that the marketing calendar would remain packed with food-focused promotions even without an IP collaboration in Q2.

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CEO Hajime Uba, speaking through interpreter Benjamin Porten, confirmed the revenue guidance is conservative to avoid a repeat of last year's downward revision, citing the unpredictable macro environment. CFO Jeff Uttz added that while they don't give comp guidance, the assumption for fiscal 2025 is not negative. Mr. Uba stated that the labor-saving initiatives are structural and should lead to improved labor costs year-over-year. Mr. Uttz noted Q4 pricing was about 4% and that the company plans to take its next price increase before the end of the calendar year to capture holiday demand.

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CFO Sami Siddiqui expressed confidence in hitting the 8%+ AOI growth target through a combination of top-line growth and operating leverage. He cited improving sales trends and ~3% unit growth for a healthy system-wide sales increase. On the cost side, he highlighted a ~$20 million year-over-year decrease in segment G&A and a significant $60 million structural tailwind from advertising spend rolling off at Burger King U.S. This is partially offset by a $19 million headwind from the accounting treatment of BK China.

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CEO Josh Kobza confirmed the '$1 Million Whopper' campaign is on track for November. Regarding remodels, he stated the sales lifts are trending 'a little bit better' than the mid-teens percentage they had anticipated. This results in realized returns on capital that are also slightly ahead of their low-teens target. He also expressed excitement for the new 'Sizzle' image, which is showing 'tremendous results'.

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CEO Scott Boatwright indicated a potential future shift to a three LTO per year calendar to maintain consumer engagement more effectively. Regarding reinvestment, he suggested savings would likely be used to add labor during peak hours to improve throughput, but emphasized that plans are still in the testing phase and not finalized.

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CEO Scott Boatwright noted that permitting can be a factor but expressed confidence in the strong 2025 pipeline and the goal of getting closer to 10% annual growth. CFO Adam Rymer explained the lower marketing percentage reflects seeking leverage after past price increases, but emphasized that the absolute dollar spend is still up significantly and they will invest more if good return opportunities arise.

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President and CEO Ricardo Cardenas stated he was pleased with the performance of Darden's brands, particularly Olive Garden and LongHorn, which contributed to the Q4 same-restaurant sales growth guidance of over 3%. He noted that while the $50k-$100k consumer segment is still growing, its growth has moderated. After adjusting for weather, the only income demographic with negative trends was the under-$50,000 group.

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Executive Ricardo Cardenas confirmed gradual improvements in speed of service across all brands, which will be aided by the next-generation POS system. He also stated that Darden has been testing connected TV for years and finds it highly effective due to its targeting capabilities, making its cost comparable to linear TV when accounting for its effectiveness.

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President and CEO Rick Cardenas stated there are no plans to advertise on the Uber Eats platform itself. Instead, Darden will use marketing funds provided by Uber to drive traffic to its own websites and apps. He confirmed the Uber partnership is contemplated in the current guidance but will take time to build. Regarding service speed, Cardenas explained that improvements will be driven primarily by operational changes and leveraging their existing technology roadmap, and should not require major new capital or staffing investments.

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CFO Craig Pommells provided the comp breakdown (7.4% check, -2.7% traffic) and explained the negative traffic was partly due to a strategic deprioritization of lower-margin holiday business, which benefited dine-in. CEO Julie Masino described the service model change as a guest-centric evolution of standards. She reiterated that it is a test-and-learn year for remodels and a full update would be provided on the Q4 call, though they remain pleased with initial results.

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CFO Craig Pommels confirmed that pricing actions are small and frequent, with the 5% guidance representing a blended rate. CEO Julie Masino stated there is no planned increase in marketing spend as a percentage of sales for fiscal 2025, with a focus on refining the media mix. She noted that messaging for both value and new premium items is resonating. CFO Pommels said there are no currently planned closures. CEO Masino stated average frequency is just under 2x a year, with loyalty members visiting 50% more often.

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CEO Mike Spanos affirmed that restaurants have the necessary equipment and that moving away from LTOs actually reduces training costs associated with temporary items, allowing for better focus on core execution. He noted the shift away from LTOs could save approximately $10 million in non-working marketing spend, which can be re-invested into promoting everyday value or taken as savings.

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CFO Michael Healy stated that approximately $40 million in CapEx was allocated to the Brazil business over the past 12 months. CEO Mike Spanos acknowledged that Bloomin' Brands was a pioneer in off-premise and that it remains an important channel. He conveyed that operator feedback emphasizes the need for a great guest experience regardless of channel, which means being thoughtful about which menu items travel well and ensuring a positive delivery interaction. The goal is to balance the off-premise business with a focus on food quality and guest satisfaction.

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CEO Brett Schulman attributed the success to a combination of a balanced real estate portfolio strategy, significant brand awareness growth amplified by social and earned media, and effective community-based opening activities. He noted this approach creates strong initial demand in both new and existing markets.

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CEO Brett Schulman responded that the growth has been broad-based across all age groups and income levels, with the brand's appeal expanding down the income strata. He specifically highlighted that younger cohorts like Gen Z and Gen Alpha are growing at a faster rate, driven by strong momentum on social media channels.

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CFO Jeremiah Ashukian confirmed refranchising is not in the guide. CEO Josh Charlesworth explained the marketing pivot to the Original Glazed is because it's their most differentiated, affordable, and highest-margin product. He specified that consumer softness is primarily being seen in traditional retail doughnut shops, while the Delivered Fresh Daily and digital channels remain strong.

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CFO David Monroe confirmed that the nine planned relocations are not included in the 30 new company-owned restaurant openings for 2025. CEO Gerald Morgan explained their marketing strategy relies on local store marketing, early dine features, Wild West Wednesday promotions, and a $5 all-day everyday drink menu, including mocktails, to drive value and stay top-of-mind.

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CEO David Gibbs clarified that the risk to the 5% net unit growth target was minor, with projections landing in the 4.5% to 5.0% range, which would still round to 5%. He emphasized that closures were concentrated among lower-volume units and not a widespread issue. CFO Chris Turner added that approximately two-thirds of the deceleration in net new unit growth was tied to the Middle East conflict. He also noted that the closing units have an average unit volume of only 60% of the global average, minimizing the impact on system sales growth.

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