Financial Data and Key Metrics Changes - The company reported Q2 revenue of $416 million, representing a 28% increase year-over-year, or $91 million more than the same quarter last year [28] - Adjusted EBITDA for the quarter was $89 million, reflecting a 37% increase, or $24 million more than Q2 of the previous year [31] - Adjusted EPS was $0.26, up from $0.19, marking a 37% increase year-over-year [37] Business Line Data and Key Metrics Changes - Company-operated same shop sales growth was 7.8%, with 5.9% attributed to transaction growth [31] - System same shop sales growth was 6.1%, driven by a 3.7% increase in transactions [29] - The company opened 31 new shops in Q2, bringing the total system shop count to 1,043 [30] Market Data and Key Metrics Changes - System-wide average unit volumes (AUVs) were $2,050,000, consistent with record levels [9] - Approximately 72% of system transactions were attributed to the loyalty program, a five-point increase from the same period last year [19] Company Strategy and Development Direction - The company aims to open at least 160 new shops in 2025, with a long-term goal of reaching 2,029 shops by 2029 [14] - A focus on transaction-driving initiatives includes enhancing category-wide innovation, increasing paid advertising, and emphasizing the Dutch rewards program [15] - The company is expanding its competitive advantages through strategic investments in market planning and operational efficiency [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong performance and a robust operator pipeline [12][25] - The company is well-positioned to capture additional market share, driven by rising demand for cold beverages and energy drinks [27] - Management raised full-year guidance for total revenues, same shop sales growth, and adjusted EBITDA based on strong Q2 results [39] Other Important Information - The company successfully refinanced its credit facility, securing $650 million in total capacity, enhancing liquidity for long-term growth [37] - Labor costs were 26.6% of company-operated shop revenue, showing a favorable year-over-year change due to sales leverage [34] Q&A Session Summary Question: CPG strategy for next year - Management indicated that the CPG rollout will focus on areas where shops are located, with early rollout expected in 2026 [42][43] Question: Update on speed and throughput initiatives - Management noted ongoing efforts in labor deployment and the introduction of speed dashboards to improve throughput [48][49] Question: Market specifics on new shop productivity - New shop productivity remains elevated, with strong results across various markets, including a new shop in Georgia [51][52] Question: Innovation and resource allocation - Management described innovation as a mix of art and science, focusing on customer testing and market trends to maintain competitive advantage [54][56] Question: Mobile order mix expectations - The mobile order mix is currently at 11.5%, with some newer markets exceeding this average, and management is optimistic about future growth [60][61] Question: Food program rollout decision - The phased rollout of the food program is to ensure proper training and equipment installation in shops [65][66] Question: Q3 performance and marketing strategy - Management confirmed strong underlying traffic trends entering Q3, with plans for a more normalized marketing approach [71][72] Question: Mobile order contribution to transaction growth - Mobile order is driving transaction growth, particularly in the morning daypart, with a focus on enhancing customer experience [78][80] Question: Marketing spend efficiency - Management is currently on the lower end of marketing spend as a percentage of sales but sees potential for increased efficiency [92][95]