Financial Data and Key Metrics Changes - In Q1 2025, total revenue increased by 29% year-over-year to $355 million, representing an $80 million increase compared to the same quarter last year [32] - Adjusted EBITDA for Q1 was $63 million, a 20% increase year-over-year, reflecting strong operational performance [34] - System same shop sales growth was 4.7%, with transaction growth of 1.3% and ticket growth of 3.4% [33] Business Line Data and Key Metrics Changes - Company-operated same shop sales grew by 6.9%, with transaction growth contributing 3.7% [35] - Company-operated shop contribution was $96 million, a 30% increase year-over-year [35] - Beverage, food, and packaging costs accounted for 25% of company-operated shop revenue, which is 70 basis points favorable year-over-year [35] Market Data and Key Metrics Changes - The company opened 30 new shops in Q1, bringing the total system shop count to 1,012 [32] - The company anticipates maintaining the pace of new shop openings in Q2 and expects to open at least 160 system shops in 2025 [32][42] Company Strategy and Development Direction - The company aims to open a total of 2,029 shops by 2029, focusing on sustainable transaction growth and addressing structural barriers [7] - A strategic investment in real estate capabilities and market planning is expected to enhance new shop productivity and support accelerated growth [16] - The company is focusing on foundational transaction-driving initiatives, including innovation, paid advertising, and the Dutch rewards program [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's ability to thrive despite a dynamic external environment, citing strong customer loyalty and brand enthusiasm [6] - The company is mindful of potential uncertainties in the broader consumer environment but has seen strong traffic trends into April [33][114] - Management believes that the combination of strong cash generation and liquidity will support continued growth [41] Other Important Information - The company has a robust training program for its employees, which is seen as a key differentiator in customer service [12] - The Dutch rewards program accounted for approximately 72% of system transactions, indicating its effectiveness in driving customer engagement [22] Q&A Session Summary Question: Clarification on second quarter expectations - Management feels good about the momentum into Q2, with traffic trends aligning with expectations despite rolling off about 150 basis points of price [45][46] Question: New store productivity - New shop productivity was strong in Q1, with some of the best openings recorded, and management expects this trend to continue throughout the year [50] Question: Mobile order incrementality - Management noted that mobile order is driving increased frequency and rewards sign-ups, particularly benefiting morning traffic [56][60] Question: Labor costs and leadership investments - Management indicated that recent investments in shop leadership compensation are expected to offset labor cost increases, maintaining a flat trajectory moving forward [66] Question: Food opportunity and margin profile - Management is strategically launching food offerings to capture additional beverage opportunities while managing complexity, with food margins being lower than beverage margins but still contributing positively overall [94] Question: Brand resilience in a slowing macro environment - Management expressed confidence in the brand's value proposition and its ability to resonate with customers despite broader economic challenges [105][108]