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Interim CEO & CFO Ken Cook and Chief Accounting Officer Suzie Thuerk affirmed their commitment to improving franchisee economics through new granular, restaurant-level data analytics to identify profit opportunities. Cook stated that improving restaurant economics is the key driver for future development. Regarding customer satisfaction, Cook described it as a 'flywheel' with a cumulative effect, noting that satisfaction scores are already up 140 basis points YoY for employee-assisted orders and even more for digital, which they believe will gradually build customer frequency.

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Kirk Tanner, President and CEO, stated that there are no changes to development plans beyond 2025. He contextualized the growth by noting that approximately 70% of new restaurants are planned for outside the U.S., where the international business is 'firing on all cylinders.' For the U.S., he expressed confidence that the 'model of excellence' and new hospitality initiatives will drive significant improvements to both sales and profitability.

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CEO Kirk Tanner stated that 2024 franchisee profitability data is still being collected but noted good improvement in 2023 and expects further improvement in 2024, using the 80 basis point expansion in global company restaurant margin as a proxy. He highlighted that new restaurants are opening with average unit volumes (AUVs) double those of the restaurants that were closed. He also mentioned the build-to-suit program is expanding the pool of franchisees who can develop new units.

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Co-Founder, CEO & Director Jonathan Neman stated that the best marketing is excellent in-store execution and menu newness, noting the success of the seasonal menu. CFO Mitch Reback explained the loyalty headwind will dissipate, as the deferred revenue component will turn neutral in late Q3 and become accretive, while frequency from former high-value members is recovering. He expects loyalty to be a tailwind by year-end.

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CEO Jonathan Neman confirmed that leveraging AI in marketing is a "huge opportunity." He mentioned the company is already using AI in workforce management and customer service and is actively exploring and testing its use in loyalty and customer acquisition. While still in the early days, he expressed hope that AI can help lower the cost per acquisition and improve retention, with several pilots currently underway.

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CEO Jonathan Neman stated that while the company's value proposition is strong, it will be enhanced by the new loyalty program and the reintroduction of mid-tier priced seasonal menu items. Regarding Ripple Fries, he noted it had the highest attach rate of any side tested and was fully incremental. A key learning was the need to strengthen culinary processes for hot items, which has improved overall operational quality. He did not comment on a loyalty app integration during the test.

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CEO Jonathan Neman explained that menu innovation, including protein plates, steak, and tests of items like RippleFries and handhelds, is key to broadening appeal. He stated that simplifying back-of-house prep, such as with de-stemmed kale, creates capacity for this innovation, allowing the company to improve food quality and capture productivity gains.

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CFO Dirk Locascio explained that the 2% productivity gain from Descartes is 'the start,' with more benefits expected in future years as the system is fully integrated. Regarding the Aurora facility, Locascio stated it is too early to share specific economics as it is in the initial ramp-up phase, but it is expected to improve customer experience, associate safety, and productivity, with learnings to be applied to future projects like the one in Austin.

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CEO Dave Flitman and CFO Dirk Locascio explained that the new tool, launched late last year, aims to boost sales force productivity by automating manual tasks like creating customer proposals. While it's early to quantify the impact, they are excited about its potential. They clarified that this specific tool was developed internally in close collaboration with business operators, and it represents an early stage of their broader strategy to leverage AI.

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President & CEO Joshua Charlesworth explained that DFD profitability is achieved in high-traffic doors with high visibility, and the shift to third-party logistics provides predictable costs. He also noted that the new COO is focused on optimizing production hub efficiency. CFO Raphael Duvivier added that the company is targeting one to two international refranchising deals to be completed within the current year, with proceeds used to pay down debt.

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CFO Jeremiah Ashukian stated that the top capital priority is strengthening the balance sheet and paying down debt, with the McDonald's rollout rephasing allowing for reduced spend. CEO Joshua Charlesworth added that the McDonald's partnership pause is a joint decision to ensure the model is profitable for both parties before further expansion.

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CFO Jeremiah Ashukian explained the average sales per door (APD) decline was driven by a shift in customer mix, as high-APD partners like Walmart now constitute a smaller percentage of the total DFD footprint. He did not quantify the 2025 EBITDA impact from the cyber incident but noted lingering operational inefficiencies in Q1. CEO Josh Charlesworth confirmed that business operations are now fully restored.

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CEO Joshua Charlesworth noted that while Krispy Kreme doesn't receive specific consumer attach rate data from McDonald's yet, sales tracking and positive feedback confirm the partnership is meeting projections. He praised McDonald's comprehensive digital and social media marketing support. CFO Jeremiah Ashukian quantified the vehicle accident headwind, stating it was an incremental expense of almost $3 million in Q3, which has been factored into the updated guidance.

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CEO Colleen Keating responded that the company's biggest competitor is the 'fear of walking in the front door,' positioning Planet Fitness's welcoming environment as a key differentiator. Regarding Spain, she stated the clubs are ramping on par with domestic locations and that they are in the very early stages of refranchising discussions to recycle capital.

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CEO Colleen Keating described the current franchise base as a 'nice complement' of individual and private equity owners, stating that PE owners have been well-capitalized and great development partners. On advertising, she noted the ad fund grows with revenue and that the company sees an opportunity to leverage its scale for more efficient ad procurement. She mentioned new CMO Brian Povinelli is actively engaged in optimizing both the efficiency and effectiveness of the marketing spend.

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CEO Colleen Keating stated it was too early to discuss the Q1 campaign's performance but noted new CMO Brian Povinelli is fully engaged. Regarding 'click to cancel,' which is active in 11 states and all corporate clubs, she explained they see a short-term (8-12 week) elevation in churn before it moderates back to normal. She emphasized the brand's value proposition and high rejoin rate (around 37-38%) as mitigating factors.

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CEO Colleen Keating confirmed they view retail closures as a significant opportunity and that their real estate team is actively pursuing these sites, noting Planet Fitness's resilience makes it an attractive tenant. Regarding 'click-to-cancel,' she stated it's available in all corporate clubs and across 35% of the system. The impact has been a small initial churn spike that normalizes, with Tennessee being the only state where churn has remained elevated.

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Matthew Clark, Executive VP & CFO, explained that the strike prices are around $70-$71. For the larger $575 million note, he noted that even at a stock price of $80, the resulting dilution would be a manageable 1.5%, which he termed a 'high-class problem' that would be favorable for all investors. He implied that the decision to extinguish the notes would be based on economic factors.

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EVP and CFO Matt Clark acknowledged the AUV modeling is conservative, noting some units exceed $6 million, and that mature margins are strong at 17% and accelerating. He highlighted the brand's unique competitive moat. He also stated that Flower Child's sales mix is approximately 50% on-premise and 50% off-premise, which is a unique hybrid model.

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CFO Mika Ware indicated CapEx could ramp up for reimages, with specifics to come next quarter. She reiterated the capital allocation priorities are investing in the business, paying down debt, and then returning cash to shareholders, likely via share repurchases. She stated M&A is not on the radar, as the current focus is on the turnaround and growth opportunities within the Maggiano's brand.

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CFO Katherine Fogertey confirmed that tourism pressures in key markets like NYC and LA impacted Q1 and that these pressures are factored into the full-year guidance. CEO Robert Lynch added that earned social media is a core marketing pillar, citing the viral success of the Dubai chocolate shake launch, which was heavily promoted through influencers and generated massive social engagement.

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CEO Rob Lynch clarified that the company is moving away from a 'headquarters' concept to 'Shack support centers' in New York, Hong Kong, and now Atlanta. Atlanta is not a relocation but an expansion to access a new talent pool more efficiently. He highlighted that the new Chief Information and Technology Officer will be based there, and the location provides access to a hotbed of restaurant, operations, and tech talent from over 60 nearby universities, aiding in recruitment for their tech build-out.

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Executive Michael Bailen explained that bump outs typically add 20 to 40 seats and that over half the system has already been expanded. CFO David Monroe added that new stores are now built with the capacity for future bump outs. Regarding remodels, David Monroe stated there is no top-down program; instead, they work with operators to keep stores fresh, safe, and enjoyable, ensuring capital is invested as needed based on individual store conditions.

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Executive Ricardo Cardenas stated that while reduced regulation would be beneficial, he would not speculate on policy. He reiterated that Darden is a full-service restaurant company and does not plan to enter the fast-casual space, noting that its scale and expertise are in full-service. He also argued that consumers age into casual dining, regardless of their preferences when younger.

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CFO Tricia Tolivar explained that the core strategy remains a balanced pipeline, but strong new store performance allows them to lean more heavily into greenfield markets. She revealed that they have not used significant incremental marketing for 2024 openings and even pulled back in Chicago due to overwhelming success. The key drivers remain their cost-effective community day events and social media engagement.

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CEO Christine Barone explained that the 7% mobile order mix is currently driven by organic adoption through the Dutch Rewards app, in-store signage, and word-of-mouth. She emphasized their careful, service-focused rollout, which included reinvesting labor savings into service, leveraging existing kitchen display systems for seamless integration, and pacing the launch based on direct feedback from shop crews to resolve issues proactively.

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