Financial Data and Key Metrics Changes - The company experienced a slow start in Q1 2024, achieving only positive comp sales, but gained momentum throughout the year, with Q3 showing almost 5% comp sales and over 2% traffic growth [3][4] - The company increased its average build cost from approximately $2.4 million two years ago to just under $2 million in 2024, reflecting a 10% decrease in build costs without compromising quality [5][6] - The company achieved over 100 basis points of restaurant-level margin expansion in 2024, with guidance for an additional 50 basis points in 2025 [22][28] Business Line Data and Key Metrics Changes - The international business grew at a pace consistent with revenue growth in North America, indicating strong performance despite a challenging environment [7] - The company is focusing on menu innovation and premium offerings while also running price point promotions to attract new customers [12][13] Market Data and Key Metrics Changes - The company is investing heavily in targeted digital media to reach potential customers within five miles of each Shack, rather than national advertising [9][10] - Digital sales remained healthy even during adverse weather conditions in December, showcasing the brand's strong demand [10] Company Strategy and Development Direction - The company aims to build a foundation for future growth by improving operations, increasing margins, and enhancing guest experiences [4][5] - The development team is optimizing build costs and exploring smaller footprint formats to penetrate new markets and enhance returns [27][34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds in 2024 but expressed confidence in the operational improvements and marketing strategies that will drive future growth [3][4] - The company is optimistic about maintaining quality and consistency in its supply chain while mitigating risks associated with single-sourcing ingredients [19][20] Other Important Information - The company is testing new kitchen equipment to improve throughput and maintain quality, with expectations for additional innovations in 2025 [23][25] - Management emphasized that the increase in G&A is primarily due to underinvestment in marketing capabilities, not inefficiencies [29][30] Q&A Session Summary Question: What are the key changes made in labor deployment? - Management highlighted a disciplined approach to labor deployment, achieving over 90% labor attainment compared to 50% previously, which improved guest satisfaction metrics [15][16] Question: How does the company ensure quality in supply chain changes? - Management stated that quality and consistency are top priorities, and they are diversifying suppliers to mitigate risks while maintaining product quality [19][20] Question: What is the outlook for commodity inflation in 2025? - The company forecasts continued elevated pricing on beef but expects some deflation in other input costs, allowing for margin improvements [28]