Financial Data and Key Metrics Changes - System wide sales increased by 10% to $890 million, and adjusted EBITDA rose by 12% considering refranchising impacts [6][14] - Adjusted net income was $61 million, with adjusted EPS of $0.47, an 18% increase year-over-year [18] - Gross margin rate increased by 80 basis points year-over-year to 40.5%, driven by labor leverage [15][18] - SG&A as a percentage of sales increased by 80 basis points year-over-year to 18.5% due to technology investments [16] Business Line Data and Key Metrics Changes - Same store sales increased by 4.9%, with transaction growth contributing approximately 25% to the comp [14][24] - The company added 46 new stores in the quarter, bringing the year-to-date total to 116 gross additions [10][11] - Premium product usage among customers grew both sequentially and year-over-year [7][8] Market Data and Key Metrics Changes - The company experienced strong customer demand with no evidence of customers trading down or delaying services [7] - The impact of tariffs on financials is expected to be minimal and unchanged [10] Company Strategy and Development Direction - The company is focused on driving core business potential and enhancing shareholder value through cost management and margin expansion [9][20] - The company is working with the FTC on the Breeze transaction, which may involve divesting certain stores to close the deal [12][94] - The company aims to improve return on invested capital through strategic store additions and refranchising efforts [11][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting same store sales expectations for the full year, narrowing guidance to 5.8% to 6.4% [9][20] - The company remains optimistic about transaction performance and overall business momentum moving into the summer season [32][34] - Management acknowledged the inflationary environment as a significant factor but believes the fundamentals of the business remain strong [38][88] Other Important Information - The company has paused share repurchases following the Grieve announcement, with $60 million in repurchases year-to-date [18] - The company expects SG&A leverage to return in fiscal year 2026 as technology investments are fully lapped [16][35] Q&A Session Summary Question: Can you discuss the scenarios for full year same store sales growth guidance? - Management noted good growth across all key metrics and expects consistent transaction growth, focusing on the midpoint of the narrowed range for Q4 [23][24] Question: What were the drivers of ticket growth? - Management indicated that premiumization, net pricing, and increased NOCR service penetration all contributed to ticket growth [27] Question: What impacted June's performance? - Management attributed the slower start in June to mild weather and timing, but noted strong customer resilience and improved performance in July [31][32] Question: How should investors think about same store sales planning for next year? - Management stated that while it's early to comment on fiscal 2026, they expect to see a return to SG&A leverage and continued strong same store sales growth [34][35] Question: Can you elaborate on the premium mix for oil changes? - Management reported that the premium mix is around 80%, driven by shifts from conventional to premium products as the car park ages [112]