Financial Data and Key Metrics Changes - Total sales for the fiscal second quarter were $64.9 million, compared to $57.3 million in the prior year period, representing a growth of approximately 28% [25][28] - Comparable restaurant sales performance was negative 5.3%, with traffic down 8.5% and price/mix up 3.2% [11][25] - Restaurant-level operating profit margin was 17.3%, down from 19.6% in the prior year [13][28] - Adjusted net loss was $1.7 million or negative 14 cents per share, compared to an adjusted net loss of $1 million or negative 9 cents per share in the prior year [28] Business Line Data and Key Metrics Changes - The company opened 11 new restaurant units to date, with three openings during the second quarter [11][13] - The performance of new restaurant openings, particularly in Bakersfield, California, has been strong, indicating potential for future growth in new markets [14][15] Market Data and Key Metrics Changes - Regional comparable sales were negative 1.5% in the West Coast market and negative 8% in the Southwest market [25] - The company estimates that weather conditions in Q2 represented a comparable headwind of 400 to 500 basis points [12] Company Strategy and Development Direction - The company aims to return to a 50-50 split of new and existing markets by fiscal 2027, which is expected to serve as a comparable tailwind [16] - The company is focusing on building a strong pipeline of intellectual property (IP) collaborations, with seven to eight planned for fiscal 2026 [16][90] - The rollout of a new reservation system is a top priority, with positive initial feedback from testing in three restaurants [20][106] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a 20% restaurant-level operating profit margin for the full year, despite uncertainties related to tariffs [39][41] - The management noted that while there is uncertainty in consumer behavior due to recent market conditions, they remain optimistic about achieving positive comparable sales for the full year [61][63] Other Important Information - The company has $85.2 million in cash and cash equivalents and no debt, indicating a strong liquidity position [29][100] - The company expects total sales for fiscal year 2025 to be between $275 million and $279 million, with plans to open 14 new units [30] Q&A Session Summary Question: Performance through the quarter and weather impact - Management noted that performance improved in March after adverse weather conditions in January and February [35][36] Question: Margin expectations for 2025 - Management remains confident in achieving a 20% margin for the full year, although there is increased uncertainty due to tariffs [39][41] Question: Consumer spending concerns - Management indicated that they do not interpret recent performance as a slowdown in consumer spending, especially given the positive results in March [48][51] Question: Tariff implications on supply chain - Management is still assessing the impact of tariffs on costs and is in discussions with suppliers to mitigate potential increases [57][60] Question: New unit openings and development pipeline - Management confirmed plans to open one more store in Q3 and two stores in Q4, maintaining a strong unit growth rate [78][80] Question: IP partnerships and future collaborations - Management confirmed that they expect to run IP partnerships for the balance of the fiscal year, with a focus on impactful collaborations [123][126]