Financial Data and Key Metrics Changes - In Q4 2025, total revenue reached $355.4 million, a 3.2% increase year-over-year, with comparable restaurant sales growing by 2.6% driven by a 4.5% increase in traffic and a 1.9% decrease in average check [18][19] - Restaurant-level operating profit improved from 15.4% to 16.1%, with Adjusted EBITDA increasing by 14.5% to $134.1 million for the fiscal year [18][19] - Net income for Q4 2025 was $12.6 million, compared to a loss of $5.3 million in Q4 2024, and Adjusted EPS rose 40% to $0.66 per diluted share [22][23] Business Line Data and Key Metrics Changes - The Pizookie Meal Deal continued to resonate with customers, contributing to traffic growth, with PMD checks accounting for 16% of total checks in Q4, up nearly 2% from the previous year [71] - The company ended 2025 with a net reduction of 6 menu items and 4 ingredient SKUs, focusing on optimizing the menu for better performance [9] Market Data and Key Metrics Changes - The company experienced a 4.5% traffic growth in Q4, marking the sixth consecutive quarter of positive traffic growth [4][18] - The late-night segment showed significant growth, with the highest traffic increase coming from this time period [59] Company Strategy and Development Direction - The company remains focused on four strategic priorities: investing in people, advancing operational excellence, progressing menu renovations, and keeping the atmosphere fresh [12][16] - Plans for 2026 include opening up to 2 new restaurants in the second half of the year and piloting a refreshed prototype to set the foundation for future growth [17][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's plans for 2026, anticipating continued growth despite potential inflationary pressures [12][24] - The company expects comparable restaurant sales growth of 1%-3% in 2026, with traffic growth and a marginal increase in average check [24] Other Important Information - The company completed 19 remodels in 2025, modernizing nearly 50% of its pre-2016 fleet [11] - The balance sheet remains healthy, with net funded debt of $61.2 million at the end of Q4 2025 [24] Q&A Session Summary Question: Can you discuss the comp components and the balance of value versus premium? - Management clarified that the check compression observed in Q4 was not primarily due to increased reliance on value but rather a result of traffic growth driven by seasonal offerings [32][34] Question: What was the inflation impact in Q4 and outlook for 2026? - Total inflation for the commodity basket was about 2.5% in Q4, with labor inflation in the 2%-3% range [38] Question: How do you anticipate overall comp trends throughout 2026? - Management expects steady growth in comp sales and traffic across all quarters, with no significant movements anticipated [44] Question: What will drive margin expansion in 2026? - Key drivers include consistent sales growth, accountability in performance metrics, and the rollout of the activity-based labor model [45][50] Question: What engagement looks like with younger customers after LTOs? - Management noted increases in frequency across age and income cohorts, but it is too early to definitively assess long-term engagement [53] Question: Can you elaborate on the new restaurant prototype? - The new prototype aims to contemporize the brand while maintaining familiarity, with flexibility in size and design based on market needs [84][87]