Financial Data and Key Metrics Changes - Consolidated revenues were $1,002 million, up 6% year over year or up 7% organically [6][21] - Non-GAAP earnings were $0.96, up 14% year over year [6][23] - Consolidated gross margin improved to 68%, up from 67.3% [21] - Operating expenses increased by 6%, but declined as a percentage of revenue to 43.1% [21] Business Line Data and Key Metrics Changes - CooperVision reported revenues of $670 million, up 5% or up 7% organically [6][21] - CooperSurgical posted revenues of $333 million, up 8% or up 7% organically [6][21] - Daily silicone hydrogel lenses grew 10%, with MyDay and Clarity leading the growth [7][9] - Myopia management portfolio grew 19%, with MiSight up 35% [7][11] Market Data and Key Metrics Changes - The Americas grew 8%, EMEA grew 6%, and Asia Pacific grew 5% [7] - Fertility revenues were $127 million, up 3% and up 2% organically, but lower than expected due to market softness in Asia Pacific [14][15] - Office and Surgical sales were $206 million, up 13% or up 10% organically [15][16] Company Strategy and Development Direction - The company is focusing on expanding its product availability in new markets and channels, particularly for MyDay and MiSight [8][9] - There is a strong emphasis on operational improvements and leveraging existing investments to drive growth [21][22] - The company is optimistic about long-term growth in fertility despite current market softness [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a more complex global operating environment but emphasized strong execution and market share gains [5][6] - The company is adjusting its revenue guidance to reflect solid Q2 performance and updated market assumptions [17][24] - Management expects organic growth in Q4 to be stronger than Q3, driven by product rollouts and improved fitting activity [24] Other Important Information - The company repurchased approximately 537,000 shares for roughly $40.6 million, leaving $215.8 million available under its repurchase plan [23] - Tariffs are expected to have a negative impact of roughly $4 million on the cost of goods this year [25] - Currency fluctuations are anticipated to have a 0.5% headwind to revenues and a 1% headwind to earnings [25] Q&A Session Summary Question: Contact lens end market performance - Management noted that channel inventory pressures are affecting growth rates, but fitting activity remains strong [29][30] Question: Lower market growth assumption for Vision Care - The reduction in guidance is attributed to general market softness rather than specific pricing or volume issues [33][36] Question: Changes in market behavior and consumer purchasing - Management confirmed that consumers are buying shorter supply durations, impacting revenue despite strong fitting activity [45][46] Question: Fertility market softness in Asia - The decline in fertility cycles in Asia Pacific is partly attributed to cultural factors, but management remains optimistic about long-term growth [39][42] Question: Future pricing opportunities - Management believes there are opportunities for inflationary price increases, but overall pricing remains solid [100][101] Question: Impact of tariffs on guidance - Tariffs are expected to impact costs, with potential adjustments in manufacturing and pricing strategies to mitigate effects [77][104]

Financial Data and Key Metrics Changes - Marvell reported record revenue of $1,895 million for the first quarter of fiscal year 2026, reflecting a 4% sequential increase and a strong 63% year-over-year growth [4][24] - Non-GAAP earnings per diluted share reached $0.62, representing a year-over-year growth of 158%, which is more than double the pace of revenue growth [24][26] - GAAP gross margin was 50.3%, while non-GAAP gross margin was 59.8% [24][25] Business Line Data and Key Metrics Changes - Data center revenue was $1,440 million, growing 5% sequentially and 76% year-over-year, driven by AI demand [7][24] - Enterprise networking revenue was $178 million, and carrier infrastructure revenue totaled $138 million, collectively growing by 14% sequentially [17] - Consumer revenue was $63 million, representing a 29% sequential decline, but is expected to grow by approximately 50% sequentially in the next quarter [18] - Automotive and industrial revenue was $76 million, declining by 12% sequentially, with expectations of flat revenue in the next quarter [18] Market Data and Key Metrics Changes - The data center end market contributed 76% of total revenue, indicating its dominance in Marvell's business [24] - The company anticipates continued growth in the data center market, particularly driven by custom AI silicon programs [19][22] Company Strategy and Development Direction - Marvell is focusing on expanding its custom silicon business, particularly in AI infrastructure, and plans to host an investor event to showcase its technology [20][22] - The company announced the sale of its Automotive Ethernet business to Infineon for $2,500 million, which will provide additional flexibility in capital allocation [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth despite macroeconomic uncertainties, with expectations for strong demand in AI and data center markets [19][22] - The company is closely monitoring the broader environment to assess potential long-term impacts on its business [19] Other Important Information - Marvell significantly increased stock repurchases to $340 million in the first quarter, up from $200 million in the prior quarter [5][27] - The company expects second quarter revenue to be around $2,000 million, representing a 57% year-over-year growth [6][28] Q&A Session Summary Question: What is the direction of content in next-generation programs? - Management indicated that they are the incumbent supplier for AI XPUs and expect revenue to continue to grow on a multiyear basis with their customers [33][36] Question: How does Marvell plan to support a broader customer base? - Management confirmed that they have the capacity to expand their portfolio and engage with multiple customers, particularly in the AI and data center space [41][42] Question: Can you discuss Marvell's service technology for 200 gig SerDes? - Management stated that their SerDes technology remains best in class, with strong performance and a solid roadmap for future developments [47][48] Question: Can you break down data center revenue and AI's contribution? - Management noted that AI has become the majority of data center revenue and expects this trend to continue, with strong growth anticipated in custom silicon [55][56] Question: What are the expectations for the second half of the year? - Management expects growth across all business segments, driven by strong demand in AI and a recovery in enterprise networking and carrier infrastructure [66][67] Question: Can you provide insights on the optical business and market share? - Management confirmed strong market share in the 800 gig segment and expects continued growth in the optical business, particularly with the transition to 1.6T [116][120]

Financial Data and Key Metrics Changes - Marvell reported record revenue of $1,895 million for Q1 FY2026, reflecting a 4% sequential increase and a 63% year-over-year growth [3][22] - Non-GAAP earnings per diluted share reached $0.62, representing a year-over-year growth of 158%, significantly outpacing revenue growth [24][22] - GAAP gross margin was 50.3%, while non-GAAP gross margin was 59.8% [22][24] - Cash flow from operations was $333 million, with total debt at $4,200 million and a gross debt to EBITDA ratio of 1.8 times [24][25] Business Line Data and Key Metrics Changes - Data center revenue was $1,440 million, growing 5% sequentially and 76% year-over-year, driven by AI demand [5][22] - Enterprise networking revenue was $178 million, and carrier infrastructure revenue totaled $138 million, collectively growing 14% sequentially [16] - Consumer revenue was $63 million, representing a 29% sequential decline, but is expected to grow by approximately 50% sequentially in Q2 [17] - Automotive and industrial revenue was $76 million, declining by 12% sequentially, with expectations of flat revenue in Q2 [17] Market Data and Key Metrics Changes - The data center end market contributed 76% of total revenue, with AI now representing the majority of data center revenue [22][18] - The company anticipates continued growth in the enterprise networking and carrier infrastructure markets, with a forecast for mid single-digit sequential growth [16][20] Company Strategy and Development Direction - Marvell is focusing on expanding its custom silicon business, particularly in AI, with significant investments in R&D and partnerships, such as with NVIDIA [8][41] - The company announced the sale of its Automotive Ethernet business to Infineon for $2,500 million, which will enhance its capital allocation flexibility [4][25] - Marvell is committed to driving innovation in optical interconnects and custom silicon solutions to meet the growing demands of AI and cloud infrastructure [8][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth despite macroeconomic uncertainties, with a strong outlook for the second quarter [18][20] - The company is closely monitoring the broader environment to assess potential long-term impacts on its business [18] - Management highlighted the robust capital expenditure plans from hyperscalers and the emergence of new data center opportunities as positive indicators for future growth [20] Other Important Information - Marvell plans to host an investor event on June 17 to provide deeper insights into its custom silicon market position and growth opportunities [19][20] - The company has significantly increased stock repurchases, buying back $340 million in Q1, up from $200 million in the previous quarter [4][25] Q&A Session Summary Question: What is the direction of content in next-generation programs? - Management stated that they are the incumbent supplier for the current generation of AI XPUs and expect revenue to continue to grow on a multiyear basis with their customers [31][35] Question: How does Marvell plan to support a broader customer base? - Management confirmed that they have the engineering capacity to expand their portfolio and support multiple engagements, particularly in the data center and AI sectors [40][41] Question: Can you discuss Marvell's positioning in service technology for 200 gig SerDes? - Management highlighted that their SerDes technology remains best in class, with strong performance and a roadmap for future advancements [44][45] Question: Can you break down data center revenue and AI's contribution? - Management indicated that AI has become the majority of data center revenue and expects this trend to continue, with significant growth anticipated in the coming years [51][53] Question: What are the expectations for the second half of the year? - Management expects growth across all business segments, driven by strong demand in AI and a recovery in enterprise networking and carrier infrastructure [62][63] Question: Can you elaborate on the optical business and market share? - Management confirmed strong market share in the 800 gig segment and expects continued growth in the optical business, particularly with the transition to 1.6T solutions [108][110]

Zscaler (ZS) Q3 2025 Earnings Call May 29, 2025 04:30 PM ET Company Participants Ashwin Kesireddy - Vice President of Investor Relations & Strategic FinanceJay Chaudhry - CEO, Chairman & FounderRemo Canessa - CFOKevin Rubin - CFOBrad Zelnick - Managing DirectorSaket Kalia - Managing DirectorRoger Boyd - Executive DirectorShaul Eyal - Managing Director - Equity ResearchMichael Richards - Equity Research Senior AssociateGray Powell - Managing Director Conference Call Participants Ittai Kidron - MD & Senior An ...

Financial Data and Key Metrics Changes - Revenue reached $23.4 billion, up 5%, driven by growth across all core markets [8][22] - Earnings per share increased by 17% to $1.55, growing three times faster than revenue [8][22] - Net income rose by 13% to $1.1 billion, primarily driven by stronger operating income [24][22] - Gross margin was $5.1 billion or 21.6% of revenue, down 80 basis points due to a competitive pricing environment [22][23] Business Line Data and Key Metrics Changes - ISG revenue was $10.3 billion, up 12%, with servers and networking revenue at a record $6.3 billion, up 16% [24][25] - CSG revenue rose by 5% to $12.5 billion, with commercial revenue up 9% to $11 billion, while consumer revenue declined 19% to $1.5 billion [27][22] - PowerStore demand rose double digits, growing for five consecutive quarters [13] Market Data and Key Metrics Changes - Strong demand for AI optimized servers, with $12.1 billion in orders booked in Q1, surpassing all shipments in FY 2025 [9][24] - Enterprise AI customers grew sequentially across key industry verticals including WebTech, financial services, manufacturing, media, and education [9][10] - Commercial demand was strongest in North America, with EMEA and APJ regions also showing double-digit growth [14] Company Strategy and Development Direction - The company is focused on expanding its leadership in AI, investing in innovation, and deepening customer partnerships [11][18] - The strategy includes modernizing the business and driving increased EPS growth through AI and infrastructure solutions [34][19] - The company aims to capture a substantial refresh opportunity with its sixteenth and seventeenth generation servers [12][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for AI servers and the ability to execute on large, complex customer deployments [39][40] - The company anticipates a continued PC refresh cycle and expects Q2 revenue to be between $28.5 billion and $29.5 billion, up 16% at the midpoint [30][32] - Management remains cautious about traditional server and storage performance due to the dynamic macro environment [32][34] Other Important Information - The company generated record cash flow from operations of $2.8 billion in Q1 [28] - A total of $2.4 billion was returned to shareholders through stock repurchases and dividends [29] - The company expects full-year revenue to be between $101 billion and $105 billion, with ISG expected to grow in the high teens [32][33] Q&A Session Summary Question: AI server revenues and fiscal 2026 targets - Management noted that the backlog for AI servers is healthy, with expectations to exceed $15 billion in revenue for fiscal 2026 [37][43] Question: Second half guidance and demand moderation - Management indicated that they expect to ship approximately $7 billion of AI servers in the first half, with optimism for converting more pipeline in the second half [46][49] Question: Storage and services attach opportunity alongside AI servers - Management highlighted improvements in storage and networking attach rates, emphasizing the importance of deployment and installation services [56][58] Question: Impact of tariffs on financials - Management confirmed that their guidance includes considerations for tariffs and that they have navigated the cost environment successfully [68][70] Question: AI server profit outlook and customer types - Management reiterated that AI server profitability is expected to contribute positively to overall margins, with a growing number of enterprise customers [75][80] Question: Customer behavior and demand pull forward - Management acknowledged some customers pulling forward demand but remains optimistic about growth despite a slowdown in traditional server business [84][88] Question: Competitive dynamics and pricing strategies - Management stated that ASPs remained stable, with no price increases, and noted competitive behavior in large deals [93][99] Question: Storage attach rate and object scale platform - Management expressed optimism about storage opportunities and the potential to improve attach rates through new product offerings [104][108] Question: Demand characteristics and backlog composition - Management characterized the backlog as primarily consisting of Blackwell technology, with a focus on engineering and innovation to meet customer needs [112][114]

Financial Data and Key Metrics Changes - The company reported a consolidated revenue of $1.1 billion, a decline of 5% compared to the previous year, with comparable sales decreasing by 3% [20][21] - Adjusted operating loss for the quarter was $68 million, with an adjusted loss per share of $0.29 [5][22] - Gross profit dollars were $322 million, with a gross margin of 29.6%, impacted by approximately $75 million in inventory write-downs [21][22] Business Line Data and Key Metrics Changes - American Eagle comparable sales were down 2%, while Aerie comparable sales declined by 4% [5][20] - Aerie faced challenges in soft apparel, particularly in fleece tops and shorts, while experiencing growth in intimates and offline categories [12][14] - American Eagle saw improvements in women's business, particularly in social casual dressing and achieved its best quarter ever in fleece [15][16] Market Data and Key Metrics Changes - Traffic was up across brands and channels, but the company faced pressure from lower average unit retails (AURs) and conversion rates [20][21] - The company is working to reduce sourcing exposure to China to under 10% this year, with plans to further diversify its supply chain [24] Company Strategy and Development Direction - The company is focused on optimizing operations and strengthening its supply chain, including closing two Edge fulfillment centers, which is expected to generate annualized savings of approximately $5 million [7][8] - Capital allocation priorities include investments for long-term growth while returning capital to shareholders, including a $200 million accelerated share repurchase program [9][23] - The company is committed to improving product performance and is preparing for the back-to-school season with fresh merchandise [24][38] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with first-quarter performance but remains optimistic about the second half of the year, hoping for economic stimulation from potential tax plans [28][29] - The company has paused full-year guidance until there is greater visibility but expects improvement as the year progresses [8][24] Other Important Information - The company recorded a $75 million inventory write-down due to product misses and higher costs, leading to increased promotions [5][12] - SG&A expenses increased by 2% due to higher advertising investments, with a focus on customer-facing spend [22][66] Q&A Session Summary Question: What is the company's view of the consumer today and its impact on the retail landscape? - Management is optimistic about the consumer outlook and believes that potential tax plans could stimulate the economy in the second half of the year [28][29] Question: Can you break down the assumptions for gross margin and promotional activity for the second quarter? - The company expects to maintain promotional activity to clean inventory for the back-to-school season, embedding a negative 3% comparable sales expectation [30][31] Question: What are the merchandising issues and how quickly can the company get back on trend? - Management acknowledged product issues but is working swiftly to address them, focusing on clean inventory for the back-to-school season [36][37] Question: How is the company planning its capital allocation and CapEx expenditures? - The company reduced its CapEx guidance to $275 million, recadencing projects to preserve cash in response to business conditions [46][47] Question: How did digital performance compare to stores during the quarter? - The company saw an uptick in digital channels and is leaning into this area for future growth [71] Question: What is the outlook for promotions and SG&A expenses? - The company anticipates continued promotional activity to clean inventory, with SG&A expected to remain flat for the year, focusing on advertising spend [62][66]

Ulta Beauty (ULTA) Q1 2026 Earnings Call May 29, 2025 04:30 PM ET Company Participants Kiley Rawlins - SVP - Investor RelationsKecia Steelman - President & CEOPaula Oyibo - Chief Financial OfficerOlivia Tong - Managing DirectorSimeon Siegel - Managing DirectorKate McShane - Managing DirectorSydney Wagner - Equity Research Senior Associate - Beauty & Personal Care Conference Call Participants Rupesh Parikh - Managing Director and Senior AnalystSusan Anderson - Managing Director & Senior AnalystKorinne Wolfme ...

Financial Data and Key Metrics Changes - Total revenues for Q1 2025 were $392.4 million, compared to $388.5 million in Q1 2024, reflecting an increase [11] - Comparable restaurant revenue increased by 3.1%, driven by a 6.8% increase in net menu price, despite a 3.5% decline in guest traffic [12] - Restaurant level operating profit as a percentage of restaurant revenue was 14.3%, an increase of 330 basis points compared to Q1 2024 [12] - Adjusted EBITDA was $27.9 million, an increase of $14.5 million versus Q1 2024, attributed to cost efficiency gains and menu price increases [13] - General and administrative costs rose to $27 million from $25.8 million in Q1 2024, while selling expenses decreased to $9.4 million from $13.5 million [13] Business Line Data and Key Metrics Changes - The revamped Red Robin Royalty program had approximately 15.3 million members at the end of Q1 2025, contributing to increased guest engagement [9] Market Data and Key Metrics Changes - The company anticipates annual comparable restaurant sales to remain generally unchanged at approximately 0% for 2025 [15] - Guest traffic trends are expected to continue at a decline of approximately 4% for the remainder of the year [34] Company Strategy and Development Direction - The company aims to maintain improvements in guest experience while implementing strategies for sustainable growth in restaurant traffic and profitability [20] - Key priorities include retaining operational execution, returning to sustainable traffic growth, strengthening financial position by reducing debt, and reinvesting in restaurant facilities [21][22] - The company is focused on enhancing marketing strategies to restore Red Robin as a preferred dining option [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's progress but acknowledged the need for further improvements in guest experience [19] - The company is cautious about the broader macro and consumer environment, which has led to a more conservative outlook for the remainder of the year [15][16] Other Important Information - The company ended Q1 2025 with $24.2 million in cash and cash equivalents, $9.1 million in restricted cash, and $35 million available under its revolving line of credit [14] - The company plans to refinance a term loan maturing in Q1 2027 and has made progress in reducing debt [14][76] Q&A Session Summary Question: Profitability in Q1 and guidance for the year - Management noted that efficiency gains in labor contributed significantly to Q1 profitability, despite anticipated pressure from tariffs and traffic declines [30][32] Question: Menu price contribution and expectations for the rest of the year - Management expects menu price contribution to decline throughout the year, with projected check growth of about 4% in Q2 and Q3, and 2% in Q4 [37] Question: Loyalty program performance and future opportunities - Management indicated that the loyalty program is performing well, with significant opportunities for further growth and engagement [39][40] Question: Traffic trends and promotional performance - Management confirmed that traffic trends are consistent with previous expectations, and the Hot Honey promotion exceeded expectations [46][48] Question: Restaurant closures and timing - The company expects to close 10 to 15 restaurants throughout the year, with closures spread evenly over the remaining months [49] Question: Selling expenses and media spend outlook - Management expects selling expenses to remain around $30 million for the year, with some variability quarter to quarter [71]

Financial Data and Key Metrics Changes - The company reported first quarter revenue of $85.9 million, which is up 2.2% sequentially and up 57.6% year over year, exceeding the midpoint of prior guidance [9][27] - Non-GAAP gross margin for fiscal Q1 was 62%, slightly above the midpoint of prior guidance due to a favorable product mix [27] - Non-GAAP net profit for Q1 was $3 million, or $0.07 per diluted share [28] - Cash and marketable securities reached $259.4 million, increasing by $9.1 million from the prior quarter and $56 million year over year [29] Business Line Data and Key Metrics Changes - AI revenue accounted for more than 75% of Q1 revenue, marking the fourth consecutive quarter of record AI revenue [9] - IoT applications increased to mid-single digits sequentially, now representing about three-quarters of total revenue [10] - Automotive revenue declined low single digits sequentially but was up more than 20% year over year [10] Market Data and Key Metrics Changes - The company is increasing its fiscal 2026 revenue growth estimate to a range of 19% to 25%, approximately $348 million at the midpoint [11] - The serviceable available market (SAM) for h AI applications is projected to reach almost $13 billion by fiscal 2031, with a five-year compounded annual growth rate in the high teens [12] Company Strategy and Development Direction - The company is focusing on expanding its edge AI infrastructure, developing a new AI SoC product family to enhance its offerings [12][21] - The company aims to leverage its existing technology to address new application verticals beyond its core enterprise security business [20] - Investment in technology and products is driving both current and future revenue growth opportunities [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term drivers of the h AI strategy despite geopolitical uncertainties [11][24] - The company is maintaining a conservative outlook for the second half of the fiscal year due to geopolitical uncertainties but remains optimistic about second-half growth [11][24] Other Important Information - The company has extended its share repurchase program for an additional twelve months, with approximately $48 million available under the repurchase authorization [29] - A logistics company, WT Microelectronics, represented 63.1% of revenue for the quarter [30] Q&A Session Summary Question: Clarification on full-year guidance and growth profile - Management indicated that there are no concerns about second-half strength, despite geopolitical uncertainties affecting guidance [36][37] Question: Explanation of edge infrastructure products - Management clarified that edge infrastructure involves integrating multiple endpoints to upgrade existing installations, which is a growing trend [46][47] Question: Impact of seasonality on revenue - Management acknowledged that seasonality is uncertain this year due to geopolitical factors but indicated that normal seasonality could still occur [56] Question: Supply chain conversations with customers - Management reported that customers are not building inventory and are closely monitoring the situation [85][86] Question: Gross margin expectations - Management explained that gross margin fluctuations are primarily driven by customer and product mix [88] Question: AI capabilities in cameras and infrastructure - Management emphasized the need for both AI in cameras and edge infrastructure to upgrade existing installations effectively [93][95] Question: Market share outside of China - Management stated that they hold a majority market share in the mid and high-end security camera market outside of China [97]

Financial Data and Key Metrics Changes - Total revenues for Q1 2025 were $392.4 million, an increase from $388.5 million in Q1 2024, primarily driven by a 3.1% increase in comparable restaurant revenue and a 6.8% increase in net menu price, despite a 3.5% decline in guest traffic [10][11] - Adjusted EBITDA for Q1 2025 was $27.9 million, an increase of $14.5 million compared to Q1 2024, attributed to cost efficiency gains and menu price increases [12] - Restaurant level operating profit as a percentage of restaurant revenue was 14.3%, an increase of 330 basis points compared to the same quarter last year [11] Business Line Data and Key Metrics Changes - The revamped Red Robin Royalty program had approximately 15.3 million members at the end of Q1 2025, contributing to increased guest engagement and frequency of visits [8] - The company has focused on operational efficiency through its managing partner program, which incentivizes restaurant leaders to achieve strong financial results [7] Market Data and Key Metrics Changes - The company anticipates comparable restaurant sales to remain generally unchanged at approximately 0% for the year, with expectations of a decline of about 3% in Q2 2025 due to headwinds from the loyalty program changes [14][16] - Guest traffic was down 3.5% in Q1 2025, with expectations of a continued decline of approximately 4% for the remainder of the year [32][34] Company Strategy and Development Direction - The company aims to strengthen its financial position by reducing debt and increasing free cash flow generation, allowing for greater flexibility in investment opportunities [22] - Key priorities for 2025 include retaining operational improvements, returning to sustainable traffic growth, and reinvesting in restaurant facilities and atmosphere [19][20] - The company is focused on enhancing guest engagement and marketing strategies to restore Red Robin as a preferred dining option [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's progress but acknowledged the need for continued improvement in guest experience and traffic growth [18][19] - The broader macroeconomic environment and consumer trends have led to a more cautious outlook for the remainder of the year, prompting a reduction in revenue guidance [14][15] Other Important Information - The company ended Q1 2025 with $24.2 million in cash and cash equivalents, $9.1 million in restricted cash, and $35 million available under its revolving line of credit [13] - The company plans to close 10 to 15 restaurants by the end of the year, with closures expected to be evenly spread throughout the year [48] Q&A Session Summary Question: Profitability in Q1 and maintaining guidance - Management noted that efficiency gains in labor contributed significantly to Q1 profitability, despite anticipated pressure from tariffs and traffic declines [30][31] Question: Menu price contribution throughout the year - Management expects menu price contribution to decline throughout the year, projecting about 4% check growth in Q2, 4% in Q3, and 2% in Q4 [35] Question: Loyalty program effectiveness - Management confirmed that the loyalty program is performing well, with significant opportunities for further growth and engagement [39] Question: Traffic trends and promotions - Management indicated that traffic trends are consistent with previous expectations, and the Hot Honey promotion has exceeded expectations [46][47] Question: Selling expenses and media spend outlook - Management expects selling expenses to remain around $30 million for the year, with some variability quarter to quarter [68] Question: Refinancing debt outlook - Management is optimistic about refinancing opportunities following strong Q1 results, but no specific timeline was provided [72][73]