Financial Data and Key Metrics Changes - The company reported Q1 sales of $348 million, a 3.2% increase year-over-year, with comparable restaurant sales up 1.7% driven by 2.7% traffic growth [30][31] - Restaurant level cash flow margin improved to 16%, marking a 100 basis point increase from the previous year [31] - Net income for the quarter was $13.5 million, with diluted net income per share rising 80% to $0.58 compared to $0.32 last year [35][36] Business Line Data and Key Metrics Changes - The restaurant level operating profit increased by 10% to $55.6 million, the highest Q1 profit recorded [32] - Adjusted EBITDA was $35.4 million, representing 10.2% of sales, which is $6 million higher than the previous year [35] Market Data and Key Metrics Changes - The company experienced strong traffic growth, outperforming the industry average by approximately 320 basis points [11] - Comp sales were negatively impacted in February due to adverse weather and delayed tax refunds, but rebounded in March with a 3% increase [6][30] Company Strategy and Development Direction - The company is focused on operational excellence and enhancing guest satisfaction, which is expected to drive future sales growth [8][12] - Strategic initiatives include a brand refresh and menu optimization, particularly around core offerings like pizza and Pizookie [21][22] - The company plans to continue investing in marketing and operational improvements while maintaining a balanced approach to pricing [44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic headwinds and continue expanding margins [8][39] - There is an expectation of modest inflation in the second half of the year, but the company feels comfortable with its current guidance [37][38] Other Important Information - The company has raised its profit guidance for 2025, expecting restaurant level operating profit between $210 million and $219 million [37] - Approximately 85% of food is sourced from the US, Canada, or Mexico, mitigating the impact of proposed tariffs [17][38] Q&A Session Summary Question: Can you frame the impact of simplification and process changes on margins? - Management indicated that half of the 100 basis point margin improvement was due to leveraging sales and traffic, with ongoing initiatives expected to sustain these levels [41][43] Question: What are the dynamics behind check and mix components? - Management noted that while traffic growth was strong, the mix was slightly lighter due to various factors, including the timing of holidays [49][52] Question: Why is the casual dining customer performing better than quick service? - Management attributed the resilience of casual dining customers to higher income demographics and a strong value proposition [56][60] Question: What drives the reduction in per store labor costs? - Management highlighted improved scheduling and increased focus on operational efficiencies as key drivers of reduced labor costs [64][66] Question: How is the company addressing macroeconomic challenges? - Management stated that there have been no significant changes in consumer behavior, and the Pizookie Meal Deal has been effective in driving traffic [74][78] Question: What is the outlook for unit growth? - Management expressed optimism about unit growth opportunities, focusing on existing markets with brand awareness and operational efficiencies [84][86] Question: What is the importance of the pizza platform to the brand? - Management emphasized that pizza is a core association with the brand, particularly in California, and is a significant traffic driver [101][102]