Sharon Zackfia • William Blair

Answer

CEO Brett Schulman explained the AGM role is both a pipeline and operational initiative. He stated that with new stores generating very high volumes, the role provides necessary leadership support, especially on nights and weekends, while also building a deeper bench of future General Managers to support growth.

Ask Fintool Equity Research AI

Answer

CEO Brett Schulman explained that the loyalty program's success, marked by a 340 basis point increase in revenue contribution, stems from a new earn-and-bank model that lowered the reward threshold for mid-frequency guests. He noted the program is adding over 50,000 members weekly, approaching 8 million total. The next phase involves a tiered structure to offer enhanced benefits to the most frequent and passionate guests.

Ask Fintool Equity Research AI

Answer

CFO Tricia Tolivar clarified that when excluding stock-based compensation, G&A is expected to grow at a slower rate than revenue, ensuring leverage over time. She emphasized that the company is strategically investing ahead of its growth curve to build a foundation for long-term success.

Ask Fintool Equity Research AI

Answer

Co-Founder, CEO & Director Jonathan Neman confirmed that Sweetgreen has seen a modest improvement in Q3 same-store sales, driven by the seasonal menu and loyalty program. He stated the main operational focus is on people and culture, highlighting that head coach stability is at an all-time high. He also introduced 'Project One Best Way,' an initiative led by the new COO to improve throughput and elevate food standards, which includes a 25% increase in chicken and tofu portions to enhance value.

Ask Fintool Equity Research AI

Answer

CEO Jonathan Neman attributed the weakness in core markets to several factors. He noted that the removal of the seasonal menu, which historically drove frequency, has impacted habituated users. He also pointed to the transition to a new, broader loyalty program as a key opportunity to re-engage customers. Finally, he acknowledged operational opportunities, particularly in improving portioning, accuracy, and speed on the digital make-lines in dense urban environments.

Ask Fintool Equity Research AI

Answer

CFO Mitch Reback confirmed that the company rolled off one point of price. To bridge from the current trend to the full-year guidance, he detailed a sequence of growth drivers: the launch of Ripple Fries in March, a new loyalty program in April, a major chef collaboration in May, and the reintroduction of popular summer and fall seasonal menus. These initiatives are expected to lift transaction volumes and comps sequentially through the year.

Ask Fintool Equity Research AI

Answer

CFO Mitch Reback stated that retrofit downtime is store-dependent but the current standard is around 6-7 weeks. He noted that steak has higher COGS and exerted slight upward pressure on the COGS line, but the impact was not overly significant.

Ask Fintool Equity Research AI

Answer

CEO Christine Barone described their current efforts as "basic blocking and tackling" with a long runway for improvement. She attributed recent transaction growth to a combination of factors, particularly better labor deployment to match demand during promotions. She also highlighted the recent rollout of "speed dashboards" that provide teams with real-time performance data to motivate improvement.

Ask Fintool Equity Research AI

Answer

CEO Christine Barone explained that they de-risk the development schedule by maintaining a pipeline that is larger than their annual opening target, which provides flexibility for shops to roll into the following year if needed. Regarding mobile ordering, she reiterated that the internal focus is on ensuring steady, manageable growth to maintain high service levels and operational stability, rather than pushing for rapid acceleration.

Ask Fintool Equity Research AI

Answer

CEO Colleen Keating confirmed that overall utilization and visits per club are rising, suggesting the new format is resonating. She said they are evaluating adding more of specific high-demand equipment and have also increased floor space for functional training. CFO Jay Stasz noted the new system-wide NPS survey helps gather this feedback.

Ask Fintool Equity Research AI

Answer

CEO Colleen Keating stated that reiterating guidance reflects their confidence in consumer resilience, noting the business performed well during the Great Financial Crisis. She highlighted that fitness is a lifestyle for Gen Z and millennials, who prioritize experiences over products. CFO Jay Stasz added that the brand's value proposition positions it well to potentially benefit from members trading down from higher-priced gyms.

Ask Fintool Equity Research AI

Answer

CFO Jay Stasz confirmed the Black Card pricing test is ongoing through at least Q1 and that the company is seeing a nice lift in Black Card penetration to 64%, attributing it to the strong value proposition given the small price gap with the Classic Card. CEO Colleen Keating added that while it's too early to comment on the new marketing campaign's performance, social sentiment has been very favorable regarding the shift to more strength equipment.

Ask Fintool Equity Research AI

Answer

CFO Tom Fitzgerald explained that while he could not provide specific quarterly guidance, the increased SG&A spend is for strategic investments to support the new CEO's initiatives. This includes marketing to evolve the brand's positioning ahead of Q1 and certain IT investments to prepare for 2025. He clarified that the spend is not for direct franchise development incentives, as member growth is the primary driver for that.

Ask Fintool Equity Research AI

Answer

CEO Michael Osanloo expressed confidence in reaching mid-teens revenue growth in 2026 by building momentum in newer markets like Texas through sustained marketing and loyalty programs. CFO Michelle Hook clarified that the negative mix was due to consumer trade-downs (e.g., smaller-sized items), which offset the lift in items per transaction driven by kiosks.

Ask Fintool Equity Research AI

Answer

CEO Michael Osanloo attributed the slower start to lower brand awareness in new markets rather than a portability issue, noting that guest satisfaction metrics remain high. He outlined plans to increase field marketing to build awareness. CFO Michelle Hook clarified that the revised revenue guidance primarily reflects the performance of the 'class of 2024' restaurants and is not a downward revision of expectations for future openings.

Ask Fintool Equity Research AI

Answer

CFO Michelle Hook stated that while the weather impact was not quantified, the company remains confident in its full-year 0% to 2% comp guidance, with momentum expected in the latter half of the year. CEO Michael Osanloo added that every 30-second improvement in drive-thru speed equates to approximately one point of comp, with a full rollout of speed initiatives expected to impact the back half of the year.

Ask Fintool Equity Research AI

Answer

President and CEO Michael Osanloo stated that the company is making good progress on a loyalty program and expects to make an announcement in early 2025. Regarding operations, he noted that while the 'low-hanging fruit' for improving drive-thru speed has been captured, more work is needed on complex issues to drive further momentum.

Ask Fintool Equity Research AI

Answer

CEO & President Lyle Tick acknowledged a long-term decline in alcohol incidence but highlighted the success of new items like hard root beer and a focus on 'total beverage,' including non-alcoholic options. He stated the beer club is being evaluated for expansion. For new units, the strategy is to build out from existing core markets. For the back half, he reiterated the full-year comp sales expectation of approximately 2%, which accounts for a slow start to July and the timing of new initiatives.

Ask Fintool Equity Research AI

Answer

President Lyle Tick responded that while there's slightly more traffic growth from lower-income cohorts during the week, the overall customer income mix has not fundamentally changed, with traffic growing across all cohorts. Regarding site selection, Interim CEO Brad Richmond and Lyle Tick explained the near-term focus is on infill in existing markets to leverage brand awareness, infrastructure, and operational supervision, which helps drive consideration in non-California markets.

Ask Fintool Equity Research AI

Answer

President Lyle Tick affirmed that pizza and craft beverages remain core equities, though pizza has a stronger association in California. He highlighted a major initiative to 'renovate' the pizza platform to improve guest satisfaction. Regarding the consumer, Tick stated that on balance, the consumer remains resilient, especially in higher-income households, and that recent sales softness was primarily attributed to weather, not a major shift in consumer behavior.

Ask Fintool Equity Research AI

Answer

President Lyle Tick responded that the company's strategy work will involve reviewing the brand's authentic origins, including its brewhouse DNA, to inform future direction, but he did not commit to a specific focus on beer and pizza without further data. Interim CEO Brad Richmond added that any menu changes must be guided by consumer research. Regarding the portfolio, Richmond stated that virtually no restaurants are cash-flow negative and there is no compelling urgency for widespread closures, though they will continue to evaluate underperforming locations.

Ask Fintool Equity Research AI

Answer

CEO Rob Lynch confirmed this is their strategy, detailing a recent test across 15 markets. Some markets promoted the Dubai Shake with a culinary brand message, while others promoted a 'Dollar Drink' offer to drive app downloads. He noted they are gathering data from these tests to refine their targeted messaging for future campaigns.

Ask Fintool Equity Research AI

Answer

CEO Robert Lynch stressed that the focus is on innovation that simplifies, not complicates, operations. He explained that the company is building a process to ensure new items are operationally sound before launch, using the limited Dubai Chocolate Shake as an example of an item that required operational simplification before a wider rollout could be considered. The goal is to support innovation with equipment, processes, and supply chain management.

Ask Fintool Equity Research AI

Answer

CEO Rob Lynch stated that the vast majority of ingredients for company-operated Shacks are sourced domestically, so direct exposure is not significant. However, he explained that indirect impacts are possible, as shifts in the broader market (e.g., other restaurants substituting away from high-cost items) can affect domestic pricing. He emphasized that their supply chain strategy focuses on creating multiple sources of supply to mitigate such risks.

Ask Fintool Equity Research AI

Answer

CEO Ernie Garcia explained that the goal of increased marketing is to build a foundation for long-term growth, leveraging the large gap between GPU and operating expenses. He confirmed they are testing both brand and direct channels to improve awareness, understanding, and trust, but politely declined to provide specific internal metrics.

Ask Fintool Equity Research AI

Answer

CEO Ernie Garcia explained the goal of marketing is to lay the foundation for long-term growth by investing in awareness, understanding, and trust. He confirmed they are testing a mix of direct and brand marketing channels, including a new brand campaign, but purposely declined to provide specific brand awareness metrics.

Ask Fintool Equity Research AI

Answer

CEO Ernie Garcia confirmed there is no plan for an "imminent reduction in margin," clarifying that the strategy is to share *future* fundamental gains with customers. He explained that reinvestments can be in value (price, rates) or experience (simplicity, speed), with a focus on what best drives the business. He declined to provide a specific definition for "reasonable margin ranges," emphasizing the need for long-term flexibility while prioritizing growth.

Ask Fintool Equity Research AI

Answer

CEO Ernie Garcia stated that while fundamental gains are still possible across all GPU components, he expects the majority of future gains will be passed on to customers to drive growth. He highlighted that the path to the high end of their long-term EBITDA margin target is clear through SG&A leverage. Garcia confirmed that reduced delivery times materially improve conversion but declined to provide a specific quantification, noting it remains a key focus for improvement.

Ask Fintool Equity Research AI

Answer

CEO Ernie Garcia explained that the current ADESA integrations are a 'lighter CapEx version' to quickly unlock benefits, with plans to circle back for more investment later. He noted same-day delivery is available to 35% of the US population but is still a small fraction of sales, with a phased rollout planned. CFO Mark Jenkins reiterated the minimal CapEx due to using existing ADESA land and buildings.

Ask Fintool Equity Research AI

Answer

President and CEO Michael Skipworth responded that the company is just 'scratching the surface' with existing platforms like tenders and the chicken sandwich, which have massive addressable markets, suggesting significant runway without needing a wave of new items. He and SVP & CFO Alex Kaleida added that for dayparts like lunch, the focus may be more on packaging and combos for existing products rather than entirely new menu items, as tenders and sandwiches already index well in those periods.

Ask Fintool Equity Research AI

Answer

David Gordon, President, kept details high-level but confirmed that rewards members show higher frequency, check average, and NPS scores. He noted a shift to targeted, data-driven offers has increased redemption rates to 4% or higher, up from 1% with broad-based offers. He explained that Flower Child's program is a traditional, app-based points system for spend and visitation, fundamentally different from Cheesecake Factory's non-points-based program.

Ask Fintool Equity Research AI

Answer

EVP and CFO Matt Clark stated that tariffs would primarily impact other operating expenses and that the company is well-positioned to absorb the impact through existing efficiencies, cost reductions, vendor negotiations, and potential minor pricing adjustments. President David Gordon added that the Cheesecake Rewards program is exceeding acquisition expectations and that a new, more personalized offer strategy is driving higher engagement, positioning it as a promising lever for 2025.

Ask Fintool Equity Research AI

Answer

EVP and CFO Matt Clark affirmed that North Italia's margin target is 16-18%, in line with Cheesecake Factory, and that its margins will improve with pricing catch-up and operational initiatives. He noted Cheesecake's margin is on an upward trajectory. President David Gordon explained that a limited number of reservations are offered per hour and tables are not held, which protects restaurant throughput and sales.

Ask Fintool Equity Research AI

Answer

CEO Josh Weinstein affirmed the goal is to increase engagement and that earning points through spending is a positive incentive, but deferred detailed discussion until the program launches. He explained the primary driver for the change was operational, as the high number of guests in top loyalty tiers made it difficult to deliver benefits effectively. He also stated that the pre-booked onboard revenue percentage is slightly higher but more or less the same as the previously mentioned 35%, with the focus being on total onboard spend growth rather than a specific pre-booking target.

Ask Fintool Equity Research AI

Answer

CEO Josh Weinstein explained that a key goal of the new program is to increase guest engagement, and rewarding total spend is a positive element. He noted the program also helps manage the operational challenge of having a very high number of guests in top loyalty tiers. Regarding pre-cruise sales, he stated the percentage is 'more or less the same' as the roughly 35% figure from a year ago, emphasizing the focus is on providing guest choice rather than hitting a specific pre-booking target.

Ask Fintool Equity Research AI

Answer

EVP of Auto Finance Jon Daniels stated that while growth was muted in Q1 by external factors, the company has made progress and expects material growth in penetration in the quarters to come, though the 50% target won't be hit this year. President & CEO Bill Nash added that penetration speed is governed by both funding availability and credit model testing.

Ask Fintool Equity Research AI

Answer

CEO William Nash explained that a significant price correction late in the prior year masked underlying improvements in the first half. The second-half acceleration was driven by better execution, efficiency gains, expanded inventory sourcing, and a more stable pricing environment. He noted that lessons learned include sharpening their focus on 6-to-10-year-old vehicles, expanding sourcing channels like Max offer, and gaining financing flexibility through a new non-prime ABS structure to capture more sales.

Ask Fintool Equity Research AI

Answer

CEO William Nash stated that the performance was primarily driven by improved conversion, as web traffic was relatively flat. He described the success as a combination of external factors, like vehicle price stabilization, and significant internal execution improvements, such as the new customer shopping hub that reduces friction.

Ask Fintool Equity Research AI

Answer

SVP Jon Daniels explained that while Net Interest Margin (NIM) has been stable around 6%, the loan loss provision was impacted by an 'outsized' $52 million adjustment on the existing portfolio this quarter due to observed performance changes. EVP & CFO Enrique Mayor-Mora added that this adjustment was roughly $30 million larger than what might have been typical in recent quarters, suggesting it may not be a recurring event at that magnitude.

Ask Fintool Equity Research AI

Answer

President of Americas David Kahan confirmed that membership is growing in both the Americas and Europe. He stated the company will soon be 'fully omni-capable' for in-store sign-ups but emphasized that the key benefit comes from personalized engagement with these 'brand fans,' which drives higher spending and return on investment.

Ask Fintool Equity Research AI

Answer

Executive Leonard Fluxman responded that pre-booking remains strong and consistent at 23% of revenues, with a recent rollout on Virgin Voyages expected to help. He confirmed that cruise lines are not pulling back on their focus on pre-booking technology. Furthermore, he noted that cruise lines have not yet started using onboard credits more aggressively, as booking trends remain robust across the industry.

Ask Fintool Equity Research AI

Answer

CEO Leonard Fluxman attributed the Medi-Spa growth to a strategic focus on the modality, including adding more doctors and nurses to meet demand and optimizing facility utilization. Regarding margins, Fluxman clarified that there were no fundamental pressures and that the variance from Q3 was due to revenue levels impacting fixed cost absorption.

Ask Fintool Equity Research AI

Answer

CFO Stephen Lazarus stated that the company does not anticipate a significant impact from tariffs, as most products are handled in bonded warehouses for international distribution. He also affirmed the company is comfortable with its high single-digit long-term revenue growth algorithm for now. Regarding capital allocation, he explained the focus will shift from aggressive debt paydown to a more balanced approach that includes share repurchases and dividends.

Ask Fintool Equity Research AI

Answer

Executive Chairman Leonard Fluxman attributed productivity gains to higher guest traffic and menu simplification, clarifying that AI initiatives are in early development and not yet impacting results. CFO Stephen Lazarus added that improved product margin is driven by productivity and reduced discounting, not Medi-Spa attachment, and is supported by a favorable long-term supply agreement.

Ask Fintool Equity Research AI

Answer

CEO Scott Boatwright and CFO Adam Rymer confirmed the slowdown is broad-based, with no notable divergence by income or geography. Scott Boatwright acknowledged some softness in white-label delivery as customers shift to pickup, and detailed ongoing efforts to improve the digital experience through AI-driven personalization and customer journey optimization.

Ask Fintool Equity Research AI

Answer

CFO Adam Rymer confirmed the 'first half, second half' story for margins, with pressure early and relief later as the portion investment is offset. He stated the ultimate goal is to drive incremental margins through transaction growth. He detailed that of the 60 basis point portion investment, about 10bps is being recovered, with the rest to be offset by produce slicer efficiencies and supply chain initiatives, which will fully materialize in the second half of the year.

Ask Fintool Equity Research AI

Answer

Interim CEO Scott Boatwright confirmed the Alshaya partnership is performing exceptionally well and that Chipotle will strategically look for other global partners, while continuing to own its restaurants in North America and Europe. Regarding Hyphen, he explained that its primary benefit is unlocking digital demand and improving order accuracy for bowls and salads, which frees up employees to focus on other tasks, thereby improving overall capacity and the guest experience.

Ask Fintool Equity Research AI

Answer

CEO Brian Niccol identified mobile ordering as the biggest challenge due to its 'first in, first out' nature with no sequencing, which creates congestion at the handoff counter. He contrasted this with the more controlled, governed flow of the drive-thru. The key focus is to fix the mobile ordering process to eliminate this choke point, which will improve the experience for both mobile and in-cafe customers, allowing for better service and connection.

Ask Fintool Equity Research AI

Answer

Hajime Uba, via interpreter Benjamin Porten, expressed confidence that the period of significant negative mix is over, crediting successful marketing and lapping previous side-menu price hikes. Regarding delivery, Benjamin Porten described it as incremental but noted that its potential is currently limited because high in-store traffic often forces them to cap delivery throughput to prioritize in-restaurant guests.

Ask Fintool Equity Research AI

Answer

CEO Hajime Uba, via interpreter Benjamin Porten, stated that the company's thinking aligns with the industry view that the slowdown was a national macro factor, though IP collaborations also played a role. Regarding tech savings, Mr. Uba explained the initial goal is to return labor levels to what was seen in fiscal '23. CFO Jeff Uttz provided the Q4 traffic figure, which was negative 2.4%.

Ask Fintool Equity Research AI

Answer

CFO Darin Harper responded that consumer research shows customers love the brands and that relevancy is driven by entertainment innovation, which is the focus of their strategy. Regarding the new social bays and arenas, he noted that utilization varies by store due to different layouts and placements. He stated that the company is still 'scratching the surface' on guest usage and is focused on improving engagement through training, staffing, and pricing to drive more traffic.

Ask Fintool Equity Research AI

Answer

CFO Meghan Frank stated that the company is monitoring the situation and has very limited direct exposure, with approximately 3% of goods sourced from China and less than 0.5% from Mexico. She believes this positions them favorably relative to some competitors. While a broad-based tariff on all imports would have a more significant impact, she noted the company would seek opportunities across its P&L to manage through it.

Ask Fintool Equity Research AI

Answer

CEO Andrew Carnie confirmed plans to open the Soho Mews House in London this year, with Manchester and Barcelona slated for next year, followed by Madrid, Milan, and Tokyo. Regarding the Hollywood strike, he stated that while the industry is still in transition, member spend improved across all houses in the quarter and he is confident this will continue.

Ask Fintool Equity Research AI

Answer

CEO Andrew Carnie explained that while satisfaction is measured globally, the most significant improvement was seen in North America, which he attributed to recent leadership changes and targeted improvement initiatives. CFO Thomas Allen clarified that the decline in Soho Friends members is intentional, resulting from a strategic de-emphasis to focus resources on the core Soho House membership.

Ask Fintool Equity Research AI

Answer

CEO Andrew Carnie responded that while satisfaction is measured globally, the most marked improvement was seen in North America, which he attributed to recent leadership changes and targeted improvement initiatives. CFO Thomas Allen explained that the decline in Soho Friends members is intentional, reflecting a strategic de-emphasis to focus resources on the core Soho House membership.

Ask Fintool Equity Research AI