Q1 2022 Sweetgreen Inc Earnings Call
Thank you and good afternoon, everyone here with me today are Jonathan even co founder and CEO and Ms <unk> <unk> CFO .
Before we begin we have a couple of reminders our earnings release is available on our website at Investor <unk> Sweet Green Dot com. During this call we will be making comments of a forward looking nature.
<unk> results may differ materially from those expressed or implied as a result of various risks and uncertainties for more information about some of these risks. Please review the company's SEC filings, including the section titled Risk factors in our latest annual report on Form 10-K filing and subs.
<unk> filed quarterly report on Form 10-Q.
These forward looking statements are based on information as of March 27, 2022, and we assume no obligation to publicly update or revise our forward looking statements. Additionally, we will be discussing certain non-GAAP financial measures.
These non-GAAP financial measures are in addition to and not a substitute for measures of financial performance prepared in accordance with GAAP.
A reconciliation of these items to the nearest U S. GAAP measure can be found in this afternoons press release available on our IR website.
With that it's my pleasure to turn the call over to Jonathan to kick things off.
Thank you Rebecca and good afternoon, everyone I.
I want to start with a moment of gratitude and thank our restaurant teams for how they continue to deliver a win win win for our customers communities and stakeholders.
I also want to give a shot out to the more than 200 sustainable farmers producers and distribution partners, who supply us with fresh local and organic ingredients every day.
Our differentiated and local supply chain is built on long term partnerships that have continued to allow us to serve delicious sustainable and healthy meals amidst global supply chain issues.
Our sourcing approach is core to us will be dose and key to supporting the long term growth and health of the planet our communities and our business.
We are pleased to report another quarter of strong results.
In the first quarter, we reported sales of $102 6 million, representing a 67% year over year growth fueled by same store sales growth of 35%.
Total digital sales represented 66% of our Q1 total revenue with approximately two thirds of those sales coming via our own digital channels.
Average unit volumes grew to $2 8 million.
Up from $2 1 million last year and profitability to improve.
Restaurant level margins were 13% for the quarter.
Our operators with an incredible job leading their teams through COVID-19, driven turbulence and managing our restaurants efficiently.
Our team remains focused on executing our vision to redefine our.
Our fourth strategic objective to achieve our vision include one expand and evolve our footprint in new and existing markets to connect more communities to real food.
To enhance our digital experience with a focus on one digital relationships, allowing us to add new customer channels.
Frequency and additional restaurant volumes.
Three solidify our brand as the industry leader and inspire customers to live healthier lives without compromising their values.
Great five star team member experiences and mix, we agree the employer of choice.
Let me provide a brief update on each of these objectives, starting with our footprint.
In Q1, we opened eight restaurants positive customer response to new openings, particularly in our suburban and residential market demonstrates the power and reach of our brands we.
We had a strong opening in San Diego, a new market in the quarter and we are excited to bring sweet green to four additional new markets. This year.
Campus, Indianapolis, Detroit and Minneapolis.
Expanding our Midwest presence provides us with the opportunity to meet the growing national demand for healthy fast food.
We remain on pace to open at least 35, new restaurants, this year and have a robust and sustainable pipeline in both existing and new markets for the next few years.
As we expand we continue to innovate on restaurant formats to reach new customers and increased access ease and satisfaction I'm excited to share two new formats. We are testing that lean into our digital leadership and direct connection we have to our customers.
This August we will be opening our first we agree we pickup kitchen and the Mount Vernon area of Washington, DC exclusively servicing digital orders placed ahead via the <unk> App website for third party platforms.
While still offering an outdoor patio for dining dislocation will have a smaller square footage and our typical store due to no frontline ordering or inside dining room with.
With two thirds of our sales already coming from digital channels, we have the unique opportunity to use this format to create hyper convenience for our digital pickup and delivery customers.
Additionally, within the next year, we will be opening our first restaurants, featuring the sweetland and order ahead drive thru pickup lane in Schaumburg, Illinois.
To utilize the suite lane customers, who placed orders in advance exclusively through our digital channels.
As we continue our suburban and residential expansion, we believe suite lanes will unlock additional convenience with less friction for a diverse group of sweet green customers.
Both of these new formats highlight how we can expand our digital platform to reflect our commitment to a convenient multichannel approach that meets our customers wherever they are.
Investing in our digital experience with a focus on one digital relationships continues to be a key pillar for us.
I'll share some of the results we're seeing from the teams work on.
Native delivery channel was our fastest growing channel in the quarter outpacing third party marketplace growth.
Ordering delivery via our App is the best way to have Sweden delivered it provides a superior ordering experience a broader menu and better value.
Native delivery times are now faster more reliable and we have expanded delivery availability to as far as 10 months.
We marketed this improved delivery experience to customers in Q1 and early results are promising we have seen a 20% average lift to revenue per user from those who redeemed a free delivery promotion.
Done all of this while improving sweet green cost per delivery by 20% to make the channel more profitable.
Our output channel also continues to recover since the end of Q4, we added 98 outposts ending the quarter with 579, we continue to be excited about the opportunity to expand outflows and connect more businesses to real food.
Our new loyalty program presents another huge opportunity to drive our digital flywheel, given the strength of our own digital channels are healthy and craveable menu and our highly engaged cohort of habitual sweet green customers with.
We plan to develop a program that gives customers access to exclusive rewards and personalized offerings that align to their preferences and values. This.
This is why we are testing various loyalty frameworks and features throughout 2022.
In January we piloted suite past, a limited time subscription product where for $10 purchasers earned up to one $3 credit per day for 30 days.
We wanted to learn crude the past resonated with and most importantly, I would influence their frequency.
Despite the omicron Serge we exceeded our target and sold 16600 passes during the three week purchase period.
90% of customers surveyed indicated interest in purchasing in the past again.
We were delighted with the response, particularly from new labs, and low frequency customers, who made up 60% of total past purchasers.
Compared to the average monthly frequency in Q4 of 2021 Sui pass users placed an additional five orders on average during the 30 day trial, almost tripling their frequency and more than doubling their spending.
We're continuing to see positive results from the three pass purchaser's, even after the pilot program has concluded.
We've retained more than half of the new labs, and low frequency customers, who bought a free pass and they continue to engage with our brand more than they did prior to the program.
We believe that our re imagine loyalty program that features both subscription and personalized promotional capabilities. We will have a force multiplier effect when you combine it with our healthy menu designed to be eaten every day.
As we continue to build our brand awareness I want to spend a moment celebrating our recently launched brand campaign and welcome Phoenix, SUNS shooting guard and Sweet Green customer Devin Booker as our latest partner and inspiring a healthier future.
Together with Naomi Osaka, we are excited to highlight our menu versatility and seamless customization experience via suite Green's digital channels.
Our menu features over 40, freshly prepared or cooked ingredients, including our newest seasonal dressing freshen irby chimichurri cut.
Customers can create millions of unique customized orders to accommodate almost any flavor profile, our dietary preference and make their bull exactly how they like it.
The create your own bowls is our most popular menu items and over 75% of orders have at least one modification.
Today as part of the 2020 to create your own brand campaign, you can go into our App and be inspired to create your own menu item, just like Naomi <unk> or try theirs.
We're also proud to feature our Sweet Green team members alongside Naomi and Devon in this brand campaign over the next several weeks youll be able to find their delicious custom orders on kicked off.
Our team members are our best brand ambassadors and the foundation of our success for many a job at Sweet Green is the beginning of our career journey and we're proud to be part of that path to opportunity or.
A growing pace of new restaurant openings means more opportunities for our team members to become a head coach and as few as three years.
Today about one third of our store leadership started as hourly team members.
One of our values at <unk> is to act like an owner and we are proud that all of our head coaches have sweet green equity and in total earn a six figure package.
It is important to us that our head coaches are rewarded for sweet Greens growth and success.
To attract and retain the best talent, we go beyond offering competitive wages and benefits we invest in our team members experienced in other important ways.
Expanding rewards and recognition.
<unk> to advance diversity equity and inclusion to make sure we're broadening representation across the company.
Cultivating an inclusive culture built on trust and two way communication and.
Good evening everyone.
I'm pleased with our first quarter results total revenue in the first quarter reached $102.6 million up from $61.4 million in the first quarter of 2021 60.
67% year over year.
This growth is primarily driven by same store sales growth of 35% consisting of a 25% increase in transactions and mix and a benefit from price increases of 10% of which approximately 6% was taken in January 2022, and 4% in the first quarter of 2021.
Like most businesses during the beginning of the quarter, we saw significant impact for a moment crowned the impact was felt across many areas, including lower demand reduced staffing and in some cases temporarily leading to limited operating hours and reduced lung capacity.
Even with the impact of Omicron or average unit volume grew to $2.8 million up from 2.1 million in Q1 2021 or.
<unk> now exceed R Q1, 2019, pre pandemic level of 2.7 million.
General revenue in Q1 with 66% of total revenue in our own digital revenue that is transactions made on the <unk> website was 43% of revenue.
<unk> total digital dollars grew 44% year over year.
We open to eight new restaurants this quarter up from one in the first quarter of 2021, we opened when new market San Diego with a very strong opening in Carlsbad. We are now on track to open at least an additional 27, new restaurants, this year and both new and existing markets.
We continued to be pleased with our performance of our suburban in residential new openings given us confidence in our suburban in residential focus development pipeline.
Restaurant margins improved throughout the quarter as volumes recovered from the impact of omicron rest.
Restaurant level margins in the first quarter were 13% rebounding from 3% in 2021.
The margin improvement was largely the result of sales leverage the impact of our price increases and the reduction of our discount line.
Factors led to an improvement across all major line items food and beverage labor occupancy and other costs for a reconciliation of restaurant level margin to comparable depth figures. Please refer to the earnings release.
Food beverage and packaging cost for 26% of revenue and improvement of 200 basis points from 2021, we expect cost an inflationary pressures to increased throughout the remainder of 2022, we continue to believe that as a percentage of sales are food beverage and packaging costs for 2022.
Be in line with 2021.
Labor and related costs for 33% of revenue and improvement of 300 basis points from 2021, this margin improvement, resulting from greater sales leverage and simplification of our operating model.
During the quarter, we increase the average wage rate, 4% to just under $17 an hour.
Additionally, we concluded our first quarter retention bonus program in January and I'm pleased to say, 88% of team members, who received a bonus are still with us.
We also saw a steady improvement in team member applicant flow by.
By the end of the first quarter, our stores were 95% staffed we expect labor and related costs as a percent of revenue to be in line with 2021.
Occupancy and related expenses were 14% of revenue and improvement of 200 basis points from 2021. This improvement is the result of sales leverage from higher volumes.
Our general and administrative expense for the quarter was 49 $7 million compared to $2003 4 million Q1, 2021. This $26.3 million increase in G&A is primarily attributable to a $21 million increase in stock based compensation expense one six mil.
Spice related Cos and $1.3 million in public company expenses, excluding these items G&A for the quarter was $24 $2 million compared to $21.7 million in 2021.
This was an 11% increase compared to a revenue increase of 67%. We believe we will continue to experience meaningful leveraging G&A, excluding stock based compensation Spice in public company expenses as we move forward.
Our net loss for the quarter was $49.2 million compared to $30 million in 2021.
This change is primarily attributable to a $21 million increase in stock based compensation.
Just the EBITDA for the quarter was a loss of 16 and a half million dollars narrowing the year over year quarterly loss by four and a half million dollars.
This improvement as a result of higher sales and improved restaurant level margins for a reconciliation of adjusted EBITDA comparable gap figures. Please refer to our earnings release.
Turning the guidance and our outlook, we are reiterating our recently provided 2022 fiscal year guidance.
35, new restaurant openings revenue ranging from 515 million 535 million same store sales growth between 20, and 26% restaurant level margins of 16% to 17% and adjusted EBITDA between a loss of $40 million to a loss of 33 mail yet.
The path to recovery has been neither linear nor consistent we continue to see variability in our customer traffic patterns. While there are short term challenges and the operating environment. We are focused on building the company for the long term the strength of our brand product digital platform and team gives us.
Confidence in reaching our goal of 1000 restaurants across the United States by the end of the decade.
With our expanding restaurant level of profits and disciplined approach to G&A, we continue to make steady progress on our path to profitability. We are well equipped and keenly focused on growing and profitable business with that I'll turn to call back to the operator to start Q&A.
Thank you, Sir and as a reminder.
You have a question and we do ask that you limit yourself to one question.
Let's go first to Sharon vaccine William Blair.
Hi, Good afternoon, I did not expect to be first thank you for that easily that's D. As our last.
So you you sound kind of unusually confident about your knee that pipeline for 22, I remember hearing a lot of companies talk about permitting delays and so on so can you help us understand what kind of Christian you've embedded in that guidance for 22 for at least 35 locations and then separately, but really.
<unk> cost likely to end up this year and how did these new formats like sweet lane or they'll pick up kitchen kind of compare.
What you would expect a donut machine.
Yes, Hi, Sharon how did I get that question so from the new unit pipeline.
A lot of confidence in the 35 store guidance that we've given while it's been a very challenging environment, we've been ramping up development in our pipeline over the past couple of years and have a I'd say, we just have a pretty deep pipeline that gives us the confidence of while permitting part.
And a lot of it costs around construction continue to be challenged our team has done an incredible job, which gives us the confidence to keep that guidance in terms of course, we have seen some inflation, but again Rachel to plan ahead with a lot of mass buying and procurement here. So we are seeing unique inflation in the single digits.
Compared to an industry, that's being probably somewhere in the team to feel pretty good about that and with that are able to maintain the return on capital is that we've got it too.
As it as it relates to the new new store innovations, both Sweet Lane and.
And what we're calling our pickup kitchen I'd say those are both very early pilot. So we're testing those really really to understand both the consumer experience the team member experienced and of course ultimately.
Return on capital, but we do expect those to meet or exceed our current.
Capital, we wouldn't roll them out if they didn't meet our threshold. So we do like you've seen with the rest of the industry with Sweet Lang.
Lot of excitement around that convenience factor and we think given the digital penetration we have performed very well and again, we see given the digital penetration that pickup channels should be a great way for us to ink failing create more convenient.
Thank you.
Next could I hear from Anthony Charles Kelly.
Great. Thanks, guys and thanks for the positive updates it was great to see you guys beat your guidance across the board in one queue, but just wanted to ask about the rationale for keeping 2022 guidance intact.
Just conservatism in the investment community, having confidence in the high end of guidance or is there something you are seeing in two key trends that led you decided not to raise the guidance range.
Andrew Thank you very much for the question.
I think it's a great question and <unk>, we spent a lot of time, reflecting on the question and let me say that we are seeing nothing recently that would have caused us to change the guidance to have any more optimism work conservatism.
We look at the business the factors we control on the inside we're very very happy with her very happy with the restaurant operations. The restaurant level margins disciplined and rigorous approach tree pattern G&A really the shrieking losses at the company has what causes us a little bit of concern quite frankly or the X.
Maternal factors.
Frankly, many of the things we read from the analysts so as we look at the outside World. We see a shakiness, we look at our inside we see the execution steadily improving and as we noted the two together we thought the best path for US at this point for us to hold the guidance that we gave really about eight weeks ago.
Okay I appreciate the cautious optimism Mitch that's helpful.
A follow up with the rebound in urban mobility post on Mccaughan in February March and April are you are you seeing any sales transfer from suburban to urban markets commuters kind of intensify the return to office, maybe one way to look at it look at it as if the growth in sales volumes. After omicron in January grew to similar cliff between central business district in suburban locations.
Andrew I'll tell Ya as our urban stores have recovered we have seen no change in the suburban stores.
We're really encouraged by that trend.
Super Thanks, guys I'll pass it off.
John <unk> from J P. Morgan has the next question.
Hi, Thank you.
The comments.
I guess on the first quarter of 2002 openings I guess being <unk>.
In line or ahead of expectations, particularly new market like San Diego.
But can we go back and review the 21 class can you talk about the performance.
Of what you've seen in suburban residential areas and if it's possible that maybe highlight how some of the performance as we stand in May of 2002 have been for some of the newer markets that you opened and 21 and if there's any information that you gleaned from the success or lack thereof in some of those openings over the past.
Eight quarters, six or eight quarters or so.
John Thanks for the question.
It's an interesting question and what we found with our new stores from the class of 2021 is they perform almost exactly like the rest of the fleet, which means it really proportional to where the kennedys dropped the suburban stores continued to outperform are pro forma model the urban stores lag slightly.
Leave behind it and it's almost in keeping with the whole portfolio, but we found with the new markets as some of the new markets have been exceptionally good performers for us most notably would be Colorado for example.
Florida and market like Texas has lagged a little bit which is really just the latest towards the pins got dropped in urban centers.
Okay and in terms of informing what what you see going forward I mean, dropping a pin doesn't necessarily mean that you get to the 99.999%.
Accurate C. So how has the experience.
That you have in the marketplace over the last.
Number of quarters, perhaps influencing some of your strike your site strategy excuse me as you begin to think about 23 and 24 openings.
Okay I'll give an example of how that's impacting the 2022 openings, 90% of our pipeline is suburban focused for 2022 and what we're finding is acid results continued to get better in those markets and in that category. We continue to have our capital flow into it to the higher return markets.
And I know one of them.
I guess the discussion points as part of the IPO, we talk about suburban as you presumably.
Need to have frequencies are drawing customers from a wider area. So can you talk about I guess, the the demographics that may different they differ were in fact, even similar.
To the urban consumer I mean, I guess, how does the consumer base of sweet cream changing as go from urban and suburban are you seeing.
Wealthier customers come more often or are you seeing a broader customer.
Coming less often I mean, how does that actually shifting relative.
I guess the experience that the brand was built on.
Yeah, Hi, John it's Jonathan here. So we are seeing really a broadening of our consumer and that's been very intentional you see it in a lot of the brand positioning what we're doing with our menu as well as with our channels and the more convenience were driving so one of the really strong parts of our suburban footprint has been our delivery channel both on the market.
<unk> and are needed and so overall, just broadening demographic for our consumer and gives us a lot of confidence to continue our development there.
Thank you.
And next step will you'll hear from John glass.
One digital channels.
The mix between your own digital in total digital hasn't really changed that much over the last.
Quarters I understand your overall volumes, Ohio, So what <unk> what are you doing intentionally to move to the next higher on digital and I assume part of that you're Gonna make me talk about loyalty and some of those programs.
Is this a testing year in 2023 is a launch your how long does it take I guess is the question to sort of get through what you're working on to where you can be system wide and on a program that might improve the.
And digital mix. Thanks.
Yeah.
That is two parts first around only digital we've been there at the reason we reasonably sure that number that it's something we're very intentional and focused on and driving and we want to make the <unk> app the best place to order Sweet Green. So we do a lot today to drive that that includes a better ordering experience a broader menu better value.
And we've done a lot we did a lot in the last quarter around improving the delivery experienced specifically so today on the speaker an app as an example, you have right of delivery Radiuses of 10 miles are on our marketplace, it's about half that.
Not a lot to improve our speed of delivery we've done a lot and just include the satisfaction of that channel. So again, we're going to continue to make our own channel a better place to order sweet green as it relates to to loyalty as we as you mentioned in the remarks. He gets a really big opportunity for US we think the opportunity to speak.
Because one it's a brand new with a lot of habituation in frequency largely due to the menu and the fact that you can see it every day to the high digital penetration. So we think there is a really unique opportunity to do something special as it relates to loyalty and you can kind of see the hearts coming together and you said it right the tears.
Testing in Thailand, highlighting year, leading to 23, which would be more of a launch here. So we did we tested sweet pass as we mentioned very very successful really encouraged by the results and then later this summer Relaunching digital challenges, which is more around personalized CRM. So.
Really excited to see what that you can imagine loyalty being almost a combination of the two had a personalised CRM component for everyone and then for those users that want to sign up to sweep pass you have that component as well.
Can you just remind us what you'll have the little department stopped it was it can you just remind us why you didn't like that one or what what was it too crude with it not advanced like you're talking about right now yes, yes.
Yeah.
That's exactly right. It was it was really a discount program. So it wasn't personalized in nature.
Didn't find it cuts it didn't seem that consumers loved it it was and didn't do much for the company to be honest. So we saw a way to create something that was more delightful for our consumers and was real win win win.
Something that that really made sense for the company. So we really really happy with it that always painful for a moment and get it cleared the deck for us to come up with something really special and we think this loyalty program will not only be a really big sales driver for us that would be something that consumers really love and will continue to drive our digital penetration and leadership.
Thank you.
Next definitely hear from Karyn Carberry Goldman Sachs.
Just one moment everyone.
Mr Forever. Your line is okay.
Can you hear me yeah.
Yes.
Okay great.
Maybe a few questions and I'm, sorry, if I messed with on the first one.
John <unk> can you give an update on an outpost I know there's been a big push to accelerate that program as the urban environment start to normalize. It you can just give us an update bear on maybe how many new outpost, you opened and a quarter or where you are sitting now at the end of the quarter or in the second quarter here and then to I just want.
To get a sense of the announcement with a partnership with <unk>, obviously, if it's really cold breath.
Just wanted to get a sense of why maybe he was the right partner if that's a strategy to maybe bring in some different kind of consumers to the brand.
Hi, Jerry.
In terms of the outpost, we ended the quarter with 579 output. So we added almost 100 outposts in the quarter and as the World has opened up and people are getting back to work, we're seeing a lot of excitement from businesses really wanting to bring sweet green in as an amenity. So feel very very early and that recovery and we'll get back to their normal.
Routine, but we're pretty encouraged by the number of sign ups and the acceleration of businesses signing us to have outposts.
As it relates to the brand campaign at lunch on Monday, we're really excited about it and really.
Two are greater vision of redefining fast food and a lot of that is about changing the way people think about food.
This is about about sports and brand sponsorships and partnerships for so long you had.
Fast food brands and brands that really these athletes, we're not actually eating they were promoting them and we find that we're trying to support this paradigm shift around people like that who actually eat sweet green use it to fuel their lifestyle partnering.
Partnering with bands like sweet to support healthier eating.
So.
Terms of whether to go in the future. It's not just seven right now seven and Naomi back Naomi you can expect over the years for us to continue to lead to culture to tell stories about the future of food.
Great. Thanks, so much.
And next step will hear from Brian Bittner Oppenheimer.
Thanks, Thank you for all the updates.
As we as we dive into the results this quarter.
It's hard not to notice how impressive the restaurant level margins were.
Particularly on the Cogs line, where you leveraged margins no-one's really leveraging that line item you leveraged them about 170 basis points year over year and I know you said Mitch that for the full year you do expect cause margins to be more in line with last year, but I guess the question is can you unpack those assumptions.
Behind that outlook, just given how strong the first quarter was it seems like you have strong pricing out there. It seems like you have a food basket that is not growing as fast on the continent as your peers. So any more color you give on how to think about that line item relative to first quarter.
Thank you Brian .
Really really good and important question.
Time, but I would say is we have to remind everybody that we have a very plant forward menu and have to plant forward menu, that's locally sourced and in the environment that we're in those had been to really really significant advantages for us finally, we have about 88% of our food is under contract.
Where we have long term relationships with our suppliers and farmers many of which have helped to those contract price during the first quarter. When we look out right now what we see is pressure in our costs, we see it really specifically and chicken.
Sunflower oil and distribution.
Don't read that those pressures are going to build throughout the year is what led me to stick to the guidance of course be 28% of revenue.
Versus the 26% of revenue that it wasn't the first quarter. So essentially the first quarter. If you do the math shop virtually no inflationary pressures against the 6% price increase and we see some of that reversing in the next three quarters.
That makes sense and just a quick follow up to that is on the pricing.
Your pricing is not that different from your peers everyone's taking price, but I'd love to know what your own analysis says about customer resistance or lack thereof to your recent pricing actions and what is your research tell you about your pricing power into the future if you need it.
So let me say, we've seen really no signs of any resistance to the price increase.
Talked a little bit about this that our last call. We historically have not seen much resistance, we believe our customers understand the cost of real food.
Freshly prepared food.
What I would say is when we set in the last call that we're open to a further price increase if we saw inflationary pressures build at this point in time, we don't see a need for that in 2022, we think we're probably okay with where we're at.
Great. Thank you.
Next step is Christmas Carol RBC capital market.
Hi, Thanks for the question just following up on earlier comments around execution I wanted to ask about capacity and throughput just giving a you vs are continuing on the upward steady trend here and we're up to $2.8 million now just curious to hear more about throughput levels, particularly in the front.
The line, just giving digital mix is remaining strong here.
Yeah, absolutely hi, Chris So something that that we think a lot about both cap capacity, Andrew foot and very early on and three creams trajectory. We understood that digital revenue is going to be a huge part of huge part of our growth.
<unk> built a lot of additional capacity and all of our restaurants, so we feel especially on the digital side.
Very well.
Very well prepared for any increases and digital revenue.
You can see in our lines is not and definitely not made it back to pre COVID-19 levels. So we've actually had a a number of throughput initiatives that we're going to share on the frontline in the future quarter, but we feel like there's a lot of room to grow on the frontline spill and a number of throughput initiatives add that comes back.
Great. Thank you.
And next to like other 30 finally.
Hi, Thanks for taking the question.
I was just curious if you can see any distinct differences in either day part or day week.
Thank you.
Hi.
Nice to meet you.
I would say when when we said that they.
Recovery has been neither linear nor consistent that would be an interesting example is.
<unk> pre pandemic Monday was always the biggest day of the week Tuesday was a big day in the week.
Through the volume began to taper down what we now find is the business of stronger Tuesday, Wednesday, Thursday, and in particular in the urban locations. So as people have changed their work patterns. We are seeing a change in the pattern in our business in terms of day part we have not really seen a significant change in the.
Dave part mixed in the business.
Awesome. Thank you.
And everyone that does conclude the question and answer session. At this time I would like to hand, the conference over to Mister Jonathan named him for any additional or closing remark.
Thank you so much I just wanted to thank everyone for your time here.
While it was really great quarter that we're proud of were more excited than ever about our long term vision of redefining fast food and our mission of connecting people to real food.
Again, I want to thank all of our restaurant teams in our head coaches and our three creams support center for their tireless work it's been.
It's been a lot of fun working together and we're excited about what we're going to build together. Thank you guys. So much.
Everyone that does conclude today's conference he would like to thank you all for your participation today you may now disconnect.
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