Financial Data and Key Metrics Changes - For the third quarter, the company reported sales of $172.4 million, a slight decrease from $173.4 million last year, with a same-store sales decline of 9.5% [22][24] - Restaurant-level margin was 13.1%, down from 20.1% a year ago, and adjusted EBITDA was a loss of $4.4 million compared to positive $6.8 million last year [22][25] - The net loss for the third quarter was $36.1 million, compared to a net loss of $20.8 million last year, primarily due to a decrease in restaurant-level profit and increased impairment charges [25] Business Line Data and Key Metrics Changes - Performance was impacted by softer sales trends in the Northeast and Los Angeles markets, which together represent about 60% of the company's comp base [4] - The company experienced an 11.7% decrease in traffic, partially offset by a 2.2% benefit from menu price increases [22][23] Market Data and Key Metrics Changes - The 25 to 35 age group, which over-indexes for the company, showed lighter spending, contributing to the overall sales decline [4] - The Northeast and LA markets contributed approximately 800 basis points of negative comp compared to the rest of the fleet [34] Company Strategy and Development Direction - The company is implementing the "Sweet Growth Transformation Plan," focusing on operational excellence, brand relevance, food quality and menu innovation, personalized digital experience, and disciplined, profitable investment [5][14] - The company plans to open 17 new restaurants in Q4 and enter three new markets, with a total of 40 new restaurants expected to be completed by the end of 2025 [13][28] - A strategic decision was made to sell the Spice business unit to Wonder, expected to infuse the balance sheet with approximately $100 million in liquidity [16][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the headwinds from the current operating environment and emphasized the need for agility and focus in operations [4] - The company expects to see improvements in restaurant-level performance as turnover and retention continue to improve [8] - Management remains confident in the brand's resonance across markets and demographics, with a focus on combining creativity with greater discipline [18][19] Other Important Information - The company has launched a new protein-focused campaign to highlight the quality of its ingredients and is introducing a macros calculator in its digital experience [9][10] - The company is reviewing its menu and pricing architecture to strengthen its value proposition and create clear entry prices [11][30] Q&A Session Summary Question: Scope of menu and pricing architecture review - The company is evaluating pricing ladders and new entry points, with opportunities for different price points and better communication of value [30][31] Question: Current environment and consumer demand - The company has seen a step down in sales, particularly among the 25 to 35 age group, with declines noted in dinner sales [34] Question: Impact of the infinite kitchen agreement - The agreement with Wonder is expected to reduce G&A by about $8 million and allow the company to focus on customer experience while maintaining technology costs [35] Question: Net cash proceeds from the Spice sale - The company is still assessing the tax implications but does not expect material tax costs from the sale [40] Question: Update on loyalty program - The loyalty program has seen continued activations and frequency increases, with plans to leverage data for personalized offers [45] Question: Drivers of restaurant-level margin decline - The decline is attributed to sales deleverage and increased protein costs, with plans to offset these through supply chain initiatives [46]