Financial Data and Key Metrics Changes - The company reported a strong start to the year with positive traffic growth observed in July, attributed to improved operations and marketing efforts [4][5] - The company is confident in achieving low single-digit comparable sales growth for the year, with pricing expected to contribute approximately 2% [39] Business Line Data and Key Metrics Changes - The culinary roadmap introduced by the CEO has led to structured menu innovations, including the successful launch of the summer barbecue menu and the Dubai Shake, which have positively impacted traffic and check growth [6][7][16][20] - The company has seen high single-digit comparable sales in markets outside of New York and D.C., indicating strong performance in cities like Denver, Los Angeles, and Miami [12][14] Market Data and Key Metrics Changes - Urban markets like New York and D.C. have faced unique pressures, particularly from decreased international tourism, while other markets have shown significant momentum [14][15] - The company has a robust pipeline, with over 90% of future openings planned outside of New York and D.C., reflecting a strategic focus on diversifying market presence [14] Company Strategy and Development Direction - The company is focused on driving same-store sales growth, expanding unit count, and improving profitability through strategic investments in operations and marketing [16][41] - The introduction of a loyalty program and enhanced app features aims to increase customer frequency and engagement [31][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming current macroeconomic pressures and highlighted the importance of operational improvements to maintain guest experience and profitability [55][56] - The company is optimistic about future growth, particularly in new markets and through innovative menu offerings, while also addressing supply chain efficiencies [71][72] Other Important Information - The company has implemented a new labor model to optimize staffing and improve operational efficiency, resulting in record labor attainment [59][60] - A new kitchen testing facility has been established to enhance equipment optimization and kitchen layouts, which are expected to improve margins and reduce build costs [65][68] Q&A Session Summary Question: What drove the acceleration in July? - The acceleration was driven by improved operations, a structured culinary roadmap, and successful menu innovations like the summer barbecue and Dubai Shake [4][6][7] Question: How have urban markets performed? - Urban markets like New York and D.C. have faced challenges, but there has been significant growth in other markets, with high single-digit comps reported [12][14] Question: What are the company's growth expectations for unit openings? - The company expects to continue expanding unit openings, with a strong pipeline and strategic investments in site development [41][42] Question: How is the company addressing cost pressures? - The company is focusing on operational improvements and supply chain efficiencies to offset cost pressures without significantly increasing prices [53][71] Question: What role does the new loyalty program play? - The loyalty program is designed to enhance customer engagement and frequency, leveraging app features to incentivize repeat visits [31][34]

Financial Data and Key Metrics Changes - Fiscal year 2025 saw diluted earnings per share increase by 9% to $14.64, with net income reaching a record $547 million and EBITDA at $1.2 billion, up 13% from the previous year [8][19] - Total inside sales grew by 10.9%, with same-store sales up 2.6%, while prepared food and dispensed beverage sales increased by 10.3% [9][13] - Inside margin expanded by 50 basis points year-over-year to 41.5%, driven by effective vendor partnerships [9][10] Business Line Data and Key Metrics Changes - Total prepared food and dispensed beverage sales rose by 9.7% to $392 million, while grocery and general merchandise sales increased by 13.5% to $1.02 billion [13][14] - Same-store prepared food and beverage sales were up 1.5%, with an average margin of 57.8%, despite a 30 basis point decline from the previous year [14] - Same-store grocery and general merchandise sales increased by 1.8%, with an average margin of 34.8%, up 40 basis points year-over-year [15] Market Data and Key Metrics Changes - Fuel gross profit increased by 11%, with total fuel gallons sold up 13% and an average fuel margin of 38.7 cents per gallon [10][19] - Retail fuel sales rose by $162 million, primarily due to a 17.8% increase in total gallons sold, despite a 9% decline in average retail price [17] Company Strategy and Development Direction - The company emphasized a two-pronged approach of building and acquiring stores, achieving the largest store growth year in its history with 35 new builds and 235 units acquired [7][8] - The strategic plan focuses on accelerating food business, growing unit numbers, and enhancing operational efficiency, with a target of opening at least 80 stores in fiscal year 2026 [24][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model's strength and durability, anticipating EBITDA growth of 10% to 12% in fiscal year 2026 [21] - The company expects same-store sales growth of 2% to 5% and operating expenses to increase by approximately 8% to 10% [21][22] Other Important Information - The effective tax rate for the quarter was 23%, compared to 22.4% in the prior year, with net interest expense rising to $27.9 million due to financing associated with acquisitions [19][18] - The company plans to allocate approximately $125 million for share repurchases in fiscal year 2026, funded entirely by operating cash flow [21][85] Q&A Session Summary Question: Fuel margins performance and synergies - Management noted that fuel margins exceeded expectations due to effective pricing management and improved procurement capabilities [31][32] Question: Same-store sales outlook for fiscal year 2026 - Management expressed comfort with the guidance range, attributing conservatism to current economic conditions and customer behavior [42][43] Question: Impact of illicit vape on sales - Management acknowledged a negative impact from illicit vape but noted strong growth in nicotine alternatives [52][53] Question: Operating expenses guidance - Management indicated that operating expenses would see mid-teen increases in the first half of fiscal year 2026, primarily due to the integration of acquired stores [60][62] Question: Share buyback strategy - Management clarified that the $125 million share buyback would be funded by operating cash flow, with no debt draw required [81][85]

Financial Data and Key Metrics Changes - Total first quarter revenues were $282.2 million, an increase of 16.4% compared to the previous year [21] - Same restaurant sales growth was positive at 0.7%, while same restaurant traffic was down by 0.7% [21] - Adjusted EBITDA was $22.8 million, with adjusted EBITDA margins slipping to 8.1% from 11.8% [26][27] Business Line Data and Key Metrics Changes - The company opened 13 new system-wide restaurants during the quarter, including 10 company-owned and 3 franchise-owned [27] - Restaurant level operating profit margin decreased to 16.5% from 20.8% year-over-year [25] - Food and beverage expenses rose to 23.8% of sales compared to 21.8% in the same quarter last year, driven by commodity inflation [24] Market Data and Key Metrics Changes - The company reported a significant opportunity for expansion in the New England market, with successful openings in Massachusetts and plans for further locations in New Hampshire and Tennessee [12][13] - The Florida market has outperformed the rest of the country, with continued new restaurant openings [92] Company Strategy and Development Direction - The company is focused on growth through new restaurant openings and enhancing customer experiences, with a target of 59 to 64 net new system-wide restaurants for the year [30] - Strategic marketing efforts have been enhanced to drive brand awareness and customer engagement, particularly through digital and social media [10][11] - The company aims to maintain a long-term target of 18-20% on restaurant level operating profit margins [110] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the volatile macro environment affecting consumer demand and input costs, but expressed optimism about achieving positive traffic growth for the year [6][19] - The company expects commodity inflation to peak in the second quarter, with a forecast of high single-digit inflation for the full year [28][30] - Management remains confident in the brand's competitive positioning and customer service experience despite current margin pressures [19][90] Other Important Information - The company completed the acquisition of 16 restaurants in North and South Carolina and three in Missouri, enhancing its presence in key states [13] - The company is implementing a "surprise and delight" initiative to enhance customer loyalty, which has had a short-term impact on margins [17][74] Q&A Session Summary Question: Can you expand on the comment that sales turned positive in March and then traffic turned positive in April? - Management noted that traffic trends improved sequentially, with positive dine-in traffic improvement for all four quarters last year [36] Question: Can you talk more about the trade-off between driving traffic through third-party actions and other initiatives at a lower margin? - Management expressed confidence in the effectiveness of their strategies to drive traffic, despite cost pressures [38] Question: What are the learnings from the increased media spend and engagement following new media efforts? - Management reported positive results from the new media efforts, contributing to improved traffic trends [44] Question: Can you comment on the peak of commodity costs in Q2? - Management indicated that the peak is expected due to crop-related issues and rebuilding of egg flocks, but does not foresee this as a permanent issue [46] Question: How is the Florida market performing relative to the system? - Management stated that Florida has been performing well and continues to open new restaurants there [92]