Financial Data and Key Metrics Changes - Total revenues for Q3 2025 were $265.1 million, down from $274.6 million in Q3 2024, reflecting a comparable restaurant revenue decline of 1.2% [18][19] - Restaurant-level operating profit as a percentage of restaurant revenue increased by 90 basis points year-over-year to 9.9%, driven by labor efficiency gains [19] - Adjusted EBITDA for Q3 2025 was $7.6 million, an increase of $3.4 million compared to Q3 2024, attributed to cost efficiency gains and menu price increases [20] Business Line Data and Key Metrics Changes - The off-premise business accounted for approximately 25% of sales in Q3 2025, with traffic growth of 2.9% [11] - The Big Yum Burger deal launched in Q3 contributed to a 250-basis point sequential traffic improvement from Q2 to Q3 [7][19] - The company achieved a 1.7% increase in net menu price, offset by a 3% decline in guest traffic [18] Market Data and Key Metrics Changes - Guest traffic run rate improved from approximately down 7% at the beginning of Q3 to negative 1.4% by the end of the quarter [8] - The company expects comparable restaurant sales to decline approximately 3% in Q4 2025 [21][22] Company Strategy and Development Direction - The company is focused on its "first choice plan" to enhance guest experience, operational efficiency, and profitability [4][5] - A data-driven marketing initiative was launched to engage guests more personally and effectively, with plans to expand this approach [10][39] - The company is exploring various options to strengthen its balance sheet, including debt refinancing and refranchising efforts [12][14] Management's Comments on Operating Environment and Future Outlook - Management noted that while guest traffic trends have slowed recently, they remain optimistic about regaining traction as marketing spend increases [22][23] - The company is committed to maintaining a balance between investment priorities and profitability, expecting G&A savings of $3-$4 million in 2025 [12][20] - Management expressed confidence in the operational improvements and the positive impact of the Big Yum initiative on traffic trends [24][25] Other Important Information - The company completed refreshes in 20 restaurants during Q3, which are expected to enhance guest experience and drive sales [15][16] - Management announced the appointment of Jesse Griffith as Chief Operations Officer, recognizing the contributions of the operations team [26] Q&A Session Summary Question: Can you provide insights on the Big Yum initiative and its impact on sales? - The Big Yum deal is mixing at about 8% of total sales, performing as expected [28][29] Question: What are the expectations for food and beverage costs moving forward? - The company anticipates maintaining a 25% cost of goods in Q4, with measures in place to mitigate beef inflation [29] Question: What was the financial cost of extending the current debt agreement? - The extension cost was 50 basis points, deemed reasonable for the additional time [30] Question: How is the refranchising initiative progressing? - Interest in refranchising remains strong, with proposals being evaluated, but no firm announcements yet [31] Question: What are the expectations for G&A sustainability? - G&A levels are expected to remain similar to Q3, reflecting efficiencies captured this year [45] Question: Can you elaborate on the comp guidance for Q4? - The company expects same-store sales and traffic to decline by 3% in Q4, with a mix of menu price increases and traffic impacts [47]