Q2 2024 Denny's Corp Earnings Call

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Operator: Greetings and welcome to Denny's Corporation's second quarter 2024 earnings conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Kayla Money. Thank you.

Speaker Change: Greetings and welcome to Denny's Corporation's 2nd Quarter 2024 Earnings Conference Call.

Speaker Change: At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation.

Speaker Change: If anyone should require operator assistance during the conference, please press star zero on your telephone keypad.

Speaker Change: As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Kayla Money. Thank you.

Kayla Money: Good afternoon. Thank you for joining us for Denny's second quarter 2024 earnings conference call. With me today for management are Kelli Valade, Denny's President and Chief Executive Officer, and Robert Verostek, Denny's Executive Vice President and Chief Financial Officer. Please refer to our website at investor.denny's.com to find our second quarter earnings press release along with the reconciliation of any non-GAAP financial measures mentioned on today's call. This call will be webcast, and an archive of the webcast will be available on our website later today.

Speaker Change: Good afternoon. Thank you for joining us for Denny's second quarter 2024 earnings conference call. With me today for management are Kelli Valade, Denny's President and Chief Executive Officer, and Robert Verostek, Denny's Executive Vice President and Chief Financial Officer.

Speaker Change: Please refer to our website at www.investor.denny's.com to find our second quarter earnings press release along with the reconciliation of any non-GAAP financial measures mentioned on today's call. This call will be webcast and an archive of the webcast will be available on our website later today.

Kayla Money: Kelli will begin today's call with a business update, then Robert will provide a recap of our second quarter financial results and a development update before commenting on guidance. After that, we will open the call up for questions.

Speaker Change: Kelli will begin today's call with a business update, then Robert will provide a recap of our second quarter financial results and the development update before commenting on guidance. After that, we will open it up for questions.

questions.

Operator: Before we begin, let me remind you that, in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the company knows that certain matters to be discussed by members of management during this call may constitute forward-looking statements. Management urges caution in considering its current trends and any outlook on earnings provided during this call. Such statements are subject to risk, uncertainties, and other factors that may cause the actual performance of Denny's to be materially different from the performance indicated or implied by such statements.

Kayla Money: Before we begin, let me remind you that, in accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, the company knows that certain matters to be discussed by members of management during this call may constitute forward-looking statements. Management urges caution in considering its current trends and any outlook on earnings provided during this call. Such statements are subject to risk, uncertainties, and other factors that may cause the actual performance of Denny's to be materially different from the performance indicated or implied by such a statement.

Speaker Change: Before we begin, let me remind you that in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the company knows that certain matters to be discussed by members of management during this call may constitute forward-looking statements.

Speaker Change: Management urges caution in considering its current trends and any outlook on earnings provided during this call. Such statements are subject to risk, uncertainties, and other factors that may cause the actual performance of Denny's to be materially different from the performance indicated or implied by such statements.

Operator: Such risks and factors are set forth in the company's most recent annual report on Form 10-K for the year end of December 27th, 2023, and in any subsequent Forms 8-K and quarterly reports on Form 10-K.

Kayla Money: Such risks and factors are set forth in the company's most recent annual report on Form 10-K for the year ended December 27, 2023, and in any subsequent Forms 8-K and quarterly reports on Form 10-Q. With that, I will now turn the call over to Kelli Valade, Denny's President and Chief Executive Officer.

Speaker Change: Such risks and factors are set forth in the company's most recent annual report on Form 10-K for the year ended December 27, 2023, and in any subsequent Forms 8-K and quarterly reports on Form 10-Q .

Kelli Valade: With that, I will now turn the call over to Kelli Valade, Denny's President and Chief Executive Officer. Thank you, Kayla. Good afternoon, everyone, and thank you for joining us. Today's discussion will focus on the exciting progress we have made to bring profitable traffic-driving initiatives to our flagship Denny's restaurants. We'll also talk about our continued optimism for our growth brand, Kiki's Breakfast Cafe. After that, we'll provide updates on our quarterly financial results and our full-year 2024 guidance expectations.

Kelli F. Valade: With that, I will now turn the call over to Kelli Valade, Denny's President and Chief Executive Officer.

Kelli F. Valade: Thank you, Kayla. Good afternoon, everyone, and thank you for joining us. Today's discussion will focus on the exciting progress we have made to bring profitable traffic-driving initiatives to our flagship Denny's restaurants. We'll also talk about our continued optimism for our growth brand, Kiki's Breakfast Cafe. After that, we'll provide updates on our quarterly financial results and our full year 2024 guidance expectations. With that, we'll get started

Kelli F. Valade: Thank you Kayla. Good afternoon everyone and thank you for joining us. Today's discussion will focus on the exciting progress we've made to bring profitable traffic driving initiatives to our flagship Denny's restaurants. We'll also talk about our continued optimism for our growth brand Kiki's Breakfast Cafe.

Speaker Change: After that, we'll provide updates on our quarterly financial results and our full year 2024 guidance expectations. With that, let's get started.

Kelli Valade: With that, let's get started. The first half of this year has been intensely competitive on value across the industry, and we're very pleased that Denny's outperformed the BVI family dining sales index for the second consecutive quarter, proving that even in the toughest of environments, we continue to still share. Specifically, Denny's system-same restaurant sales decline of 0.6 percent included chopperness from Easter and spring break in April, strong momentum in May, and then an overall industry softening in June that was further impacted by a tougher prior year comparison. Importantly, though, on a regional basis, we continue to outperform or gain market share relative to BVI family dining sales and our key states of California, Texas, Florida, and Arizona.

Kelli F. Valade: The first half of this year has been intensely competitive on value across the industry, and we are very pleased that Denny's outperformed the BBI Family Dining Sales Index for the second consecutive quarter, proving that even in the toughest of environments, we continue to steal shows. Specifically, Denny's system same-restaurant sales decline of 0.6% included choppiness from Easter and Spring Break in April, strong momentum in May, and then an overall industry softening in June that was further impacted by a tougher prior-year comparison.

Speaker Change: The first half of this year has been intensely competitive on value across the industry and we are very pleased that Denny's outperformed the BBI Family Dining Sales Index for the second consecutive quarter, proving that even in the toughest of environments, we continue to steal share.

Speaker Change: Specifically, Denny's system same restaurant sales decline of 0.6% included choppiness from Easter and Spring Break in April , strong momentum in May, and then an overall industry softening in June that was further impacted by a tougher prior year comparison.

Kelli F. Valade: Importantly, though, on a regional basis, we continue to outperform or gain market share relative to BVI family dining sales in our key states of California, Texas, Florida, and Arizona. And lastly, we are very pleased so far with third-quarter sales trends as we continue to outpace benchmarks, proving we are winning the summer with our game. I want to commend and thank our teams and our franchisees for their dedication, focus, and execution that continues to propel us ahead of the competition.

Speaker Change: Importantly, though, on a regional basis, we continue to outperform or gain market share relative to BBI family dining sales in our key states of California, Texas, Florida, and Arizona. And lastly, we are very pleased so far with third quarter sales trends as we continue to outpace benchmarks, proving we are winning the summer with our guests.

Kelli Valade: And lastly, we are very pleased so far with third quarter sales trends as we continue to outpace benchmarks, proving we are winning the summer with our guests. I want to commend and thank our teams and our franchisees for their dedication, focus, and execution that continues to propel us ahead of the competition. Denny's is America's diner, and we want to dominate the breakfast occasion. This is evidenced by our year-to-date outperformance relative to BVI family dining breakfast traffic of over 200 basis points. But we also continue to innovate as we are determined to drive traffic during all day parts.

Speaker Change: I want to commend and thank our teams and our franchisees for their dedication, focus, and execution that continues to propel us ahead of the competition.

Kelli F. Valade: Denny's is America's diner, and we want to dominate the breakfast occasion. This is evidenced by our year-to-date outperformance relative to BBI family dining breakfast traffic of over 200. But we also continue to innovate as we are determined to drive traffic during all dayparts. Most recently, this has entailed the expansion of our third virtual brand, Banda Burrito, which helps maximize labor productivity by over-indexing at weekday, dinner, and late night, while providing convenience and meeting guests where they are. Throughout Q2, we expanded Banner Burrito to over 300 restaurants, prioritizing California's expansion first to provide additional revenue channels given the potential impact of AB 1228.

Speaker Change: Denny's is America's diner, and we want to dominate the breakfast occasion. This is evidenced by our year-to-date outperformance relative to BBI family dining breakfast traffic of over 200 basis points.

Kelli Valade: Most recently, this has entailed the expansion of our third virtual brand, Band of Burrito, which helps maximize labor productivity by over-indexing at weekday, dinner, and late night, while providing convenience and meeting guests where they are. Throughout Q2, we expanded Band of Burrito to over 300 restaurants, prioritizing California's expansion first to provide additional revenue channels, given the potential impact of AB 1228. We saw the traffic gap compared to QSR and California cut in half during that quarter as a result of lowering price relative to QSR and the expansion of this additional revenue channel. We remain encouraged by the early results and expect this new virtual brand to deliver similar incremental sales volumes and margins as our other successful virtual brands, the Burger Den, and the Meltdown.

Speaker Change: But we also continue to innovate as we are determined to drive traffic during all day parts. Most recently, this has entailed the expansion of our third virtual brand, Banda Burrito, which helps maximize labor productivity by over-indexing at weekday, dinner, and late night while providing convenience and meeting guests where they are.

Speaker Change: Throughout Q2, we expanded Banner Burrito to over 300 restaurants, prioritizing California's expansion first to provide additional revenue channels given the potential impact of AB 1228.

Kelli F. Valade: We saw the traffic gap compared to QSR in California cut in half during that quarter as a result of lowering prices relative to QSR and the expansion of this additional revenue. We remain encouraged by the early results and expect this new virtual brand to deliver similar incremental sales volumes and margins as our other successful virtual brands, The Burger Den and The Milk. This confidence has driven us to accelerate and expand Vanderburto to a nationwide rollout that is already well underway and expected to be completed by the fall. Turning to Value

Speaker Change: We saw the traffic gap compared to QSR in California cut in half during that quarter as a result of lowering price relative to QSR and the expansion of this additional revenue channel.

Speaker Change: We remain encouraged by the early results and expect this new virtual brand to deliver similar incremental sales volumes and margins as our other successful virtual brands, the Burger Den and the Meltdown.

Kelli Valade: This confidence has driven us to accelerate and expand Band of Burrito to a nationwide rollout that is already well underway and expected to be completed by the fall.

Speaker Change: This confidence has driven us to accelerate and expand Vanderburto to a nationwide rollout that is already well underway and expected to be completed by the fall.

Kelli Valade: Turning to value, Denny's has always been known as a value leader in the industry, serving quality affordable meals. to our guests. Q2 was no different as we highlighted our reprised all-day diner deals menu that featured Super Slam, a fan favorite, as well as other famous breakfast plates and value options for lunch and dinner. During the all-day diner deals promotional timeframes, Denny's share of wallet expanded and was among the top full service performers. We attribute this directly to our highly successful Barbell strategy, which advertises traffic-driving value messages and ensures our in-restrum merchandising entices guests with irresistible, incredible premium products, such as our new Barry Waffle Slam and the sweet and smoky BLT&E.

Kelli F. Valade: Denny's has always been known as a value leader in the industry, serving quality, affordable meals to our guests. Q2 was no different as we highlighted our reprised all-day diner deals menu that featured Super Slam, a fan favorite, as well as other famous breakfast plates and value options for lunch and dinner. During the all-day Diner Deals promotional timeframe, Denny's share of wallet expanded and was among the top full-service performers. We attribute this directly to our highly successful barbell strategy, which advertises traffic-driving value messages and ensures our in-restaurant merchandising entices guests with irresistible and craveable premium products such as our new Berry Waffle Slam and the sweet and smoky BLT We've also highlighted our delicious new dessert options and milkshakes that are still proven to be highly incremental at home. And we aren't done innovating yet.

Speaker Change: Turning to value. Denny's has always been known as a value leader in the industry, serving quality, affordable meals to our guests.

Speaker Change: Q2 was no different as we highlighted our reprised all-day diner deals menu that featured Super Slam, a fan favorite, as well as other famous breakfast plates and value options for lunch and dinner.

Speaker Change: During the all-day diner deals promotional timeframe, Denny's share of wallet expanded and was among the top full-service performers.

Speaker Change: We attribute this directly to our highly successful barbell strategy, which advertises traffic-driving value messages and ensures our in-restaurant merchandising entices guests with irresistible and craveable premium products such as our new Berry Waffle Slam and the sweet and smoky BLT&E.

Kelli Valade: We've also highlighted our delicious new dessert options and milkshakes that are still proven to be highly incremental add-ons. And we aren't done innovating it. We're about to go even deeper into value, bringing back a key brand differentiator in a big way. In just a few short weeks, we will officially relaunch and go national with our 2468 menu with an added $10 category. This was a value platform unique to Denny's that launched years ago to amazing results, and it's a unique equity only we have. We're thrilled to bring back this consumer-friendly traffic driving platform based on extensive testing and re-engineering.

Speaker Change: We've also highlighted our delicious new dessert options and milkshakes that are still proven to be highly incremental add-ons.

Kelli F. Valade: We're about to go even deeper into value, bringing back a key brand differentiator in a big way. In just a few short weeks, we will officially relaunch and go national with our 2468 menu and an added $10 category. This was a value platform unique to Denny's that launched years ago with amazing results, and it's a unique equity we only have. We're thrilled to bring back this consumer-friendly traffic-driving platform based on extensive testing and re-engineering. This evolved platform has a top-rated value concept across multiple options we tested.

Speaker Change: And we aren't done innovating yet. We're about to go even deeper into value, bringing back a key brand differentiator in a big way.

Speaker Change: In just a few short weeks, we will officially relaunch and go national with our 2468 menu with an added $10 category. This was a value platform unique to Denny's that launched years ago to amazing results, and it's a unique equity only we have.

Speaker Change: We're thrilled to bring back this consumer-friendly, traffic-driving platform based on extensive testing and re-engineering. This evolved platform with a top-rated value concept across multiple options we tested.

Kelli Valade: This evolved platform with the top-rated value concept across multiple options we tested. Consumer research validated and increased likelihood of guest ordering and making a special visit to Denny's due to positive perceptions around variety, relative value, and the inclusion of fresh, high-quality ingredients. Our test results suggest that not only can this revamp platform drive incremental traffic and incite new customer trial, but is also engineered to protect profitability. We are truly optimistic about what this can do for the back half of our year.

Kelli F. Valade: Consumer research validated an increased likelihood of guests ordering and making a special visit to Denny's due to positive perceptions around variety, relative value, and the inclusion of fresh, high-quality ingredients. Our test results suggest that not only can this revamped platform drive incremental traffic and incite new customer trial, but it is also engineered to protect profitability. We are truly optimistic about what this can do for the back half of our year. Additionally, during the quarter, we began reinvigorating our local co-ops by re-establishing those that had disbanded during the pandemic.

Speaker Change: Consumer research validated an increased likelihood of guests ordering and making a special visit to Denny's due to positive perceptions around variety, relative value, and the inclusion of fresh, high-quality ingredients.

Speaker Change: Our test results suggest that not only can this revamped platform drive incremental traffic and incite new customer trial, but it is also engineered to protect profitability. We are truly optimistic about what this can do for the back half of our year.

Kelli Valade: Additionally, during the quarter, we began reigniting our local co-ops by re-establishing those that had disbanded during the pandemic. This local advertising investment by the system represents $12 million annually, approximately half of which is incremental. An immense amount of work has been done with our agency partners as we learned more about our specific Denny's guests. Our data suggests we can speak more effectively to our target guests through a larger focus on local media. Q2 was a transitional quarter with many co-ops restarting in mid-April and more rolling in throughout the quarter and into early July. With the time it takes to receive the funds and then deploy them against media, we believe the full weight of co-op advertising will be realized in Q3 and beyond.

Speaker Change: Additionally, during the quarter, we began reigniting our local co-ops by reestablishing those that had disbanded during the pandemic. This local advertising investment by the system represents $12 million annually, approximately half of which is incremental.

Kelli F. Valade: This local advertising investment by the system represents $12 million annually, approximately half of which is incremental. An immense amount of work has been done with our agency partners as we learn more about our specific Denny's guests. Our data suggests we can speak more effectively to our target guests through a larger focus on local media. Q2 was a transitional quarter with many co-ops restarting in mid-April and more rolling in throughout the quarter and into early July.

Speaker Change: An immense amount of work has been done with our agency partners as we learned more about our specific Denny's guests. Our data suggests we can speak more effectively to our target guests through a larger focus on local media.

Speaker Change: Q2 was a transitional quarter with many co-ops restarting in mid-April and more rolling in throughout the quarter and into early July . With the time it takes to receive the funds and then deploy them against media, we believe the full weight of co-op advertising will be realized in Q3 and beyond.

Kelli F. Valade: With the time it takes to receive the funds and then deploy them against media, we believe the full weight of co-op advertising will be realized in Q3 and beyond. And we believe it's also why we are continuing to see momentum in July. And finally, we are very pleased to have completed the rollout of our new cloud-based POS system in all company restaurants, and we're continuing to expand this in franchises. We now have approximately 130 restaurants on the new platform, and it is opening the door to provide future labor savings, smart upsell opportunities, server handhelds, and payment at the table.

Kelli Valade: We believe it's also why we are continuing to see momentum in July.

Kelli Valade: And finally, we are very pleased to have completed the rollout of our new cloud-based POS system in all company restaurants, and we are continuing to expand this in franchise restaurants. We now have approximately 130 restaurants on the new platform, and it is opening the door to provide future labor savings, smart upsell opportunities, server handhelds, and payment at the table. Additionally, our new cloud-based POS is an even bigger benefit for our franchise restaurants as the new equipment package comes with an upgraded kitchen visualization system or KBS, which provides meaningful waste saving opportunities.

Speaker Change: We believe it's also why we are continuing to see momentum in July . And finally, we are very pleased to have completed the rollout of our new cloud-based POS system in all company restaurants, and we're continuing to expand this in franchise restaurants.

Speaker Change: We now have approximately 130 restaurants on the new platform, and it is opening the door to provide future labor savings, smart upsell opportunities, server handhelds, and payment at the table.

Kelli F. Valade: Additionally, our new cloud-based POS is an even bigger benefit for our franchise restaurants as the new equipment package comes with an upgraded Kitchen Visualization System, or KVS, which provides meaningful waste-saving opportunities. In summary, Q2 was another competitive quarter where we continue to outpace the industry and execute our playbook.

Speaker Change: Additionally, our new cloud-based POS is an even bigger benefit for our franchise restaurants as the new equipment package comes with an upgraded Kitchen Visualization System, or KVS, which provides meaningful waste-saving opportunities.

Kelli Valade: In summary, Q2 is another competitive quarter where we continue to outpace the industry and execute our playbook. We have made significant progress thus far in the year, driving incremental traffic, introducing new cravable menu items, launching our third virtual brand, reigniting incremental co-op investments, finalizing testing of our revamped remodel program, and completing the rollout of our new cloud-based POS system in all company restaurants. We remain confident in our strategies and initiatives as we enter the second half of the year with a fan favorite value platform, realizing the full benefit of incremental advertising, introducing new incentives to ignite our remodel program and POS installation, and a national rollout of our third virtual brand, fan-of Burrito.

Speaker Change: In summary, Q2 is another competitive quarter where we continue to outpace the industry and execute our playbook.

Kelli F. Valade: We've made significant progress thus far in the year, driving incremental traffic, introducing new craveable menu items, launching our third virtual brand, reigniting incremental co-op investments, finalizing testing of our revamped remodel program, and completing the rollout of our new cloud-based POS system in all company restaurants. We remain confident in our strategies and initiatives as we enter the second half of the year with a fan favorite value platform, realize the full benefit of incremental advertising, introduce new incentives to ignite our remodel program and POS installation, and a national rollout of our third virtual brand, Banda Burrito.

Speaker Change: We've made significant progress thus far in the year driving incremental traffic, introducing new craveable menu items, launching our third virtual brand, reigniting incremental co-op investments, finalizing testing of our revamped remodel program, and completing the rollout of our new cloud-based POS system in all company restaurants.

Speaker Change: We remain confident in our strategies and initiatives as we enter the second half of the year with a fan favorite value platform, realizing the full benefit of incremental advertising, introducing new incentives to ignite our remodel program and POS installation, and a national rollout of our third virtual brand, Banda Burrito.

Kelli Valade: The future is definitely bright for Flagship Denny's brand.

Kelli F. Valade: The future is definitely bright for our flagship Denny's brand. Now, moving on to the Kiki's brand. During the quarter, Kiki's continued to make progress, narrowing the gap to BBI family dining sales in Florida. And over the last year, we have cut the gap by over 400 basis points, with momentum that has continued in the third quarter.

Kelli Valade: And now moving on to the Kiki's brand. During the quarter, Kiki's continued to make progress narrowing the gap to BVI family dining sales in Florida, and over the last year, we have cut the gap by over 400 basis points, with momentum that has continued in the third quarter. The Kiki's brand has accomplished so much in such a brief time, building out the operations support team, and the data is clear that we are making headway. During the quarter, Kiki's continued to innovate and update their menu with new options like Gritz and gluten-free toast, and also revamp the kids' meals to serve families more value.

Speaker Change: The future is definitely bright for our flagship Denny's brand. And now moving on to the Kiki's brand. During the quarter, Kiki's continued to make progress, narrowing the gap to BBI family dining sales in Florida. And over the last year, we have cut the gap by over 400 basis points with momentum that has continued in the third quarter.

Kelli F. Valade: The Kikis brand has accomplished so much in such a brief time, building out the operations support team, and the data is clear that we are making headway. During the quarter, Kiki's continued to innovate and update their menu with new options like grits and gluten-free toast, and also revamped the kids' meals to serve families more value. These small, simple changes have been additive to the guest check average and resulted in improved guest satisfaction.

Speaker Change: The Kikis brand has accomplished so much in such a brief time, building out the operations support team, and the data is clear that we are making headway.

Speaker Change: During the quarter, Kiki's continued to innovate and update their menu with new options like grits and gluten-free toast, and also revamped the kids' meals to serve families more value. These small, simple changes have been accretive to guest check average and resulted in improved guest satisfaction scores.

Kelli Valade: These small, simple changes have been accreted to guest check average and resulted in improved guest satisfaction scores. Turning to Kiki's development, we opened our second corporate cafe in Tennessee, just outside of Nashville and Gallatin. As excited as we were about our Henderson-Tennessee Cafe, being on pace to deliver approximately two million in annualized sales volume, Gallatin is proving to be even better and bolstered by expanded outdoor patio seating capacity. On top of that, we also completed our first remodel test at our largest volume corporate cafe in Orlando during June, and while it's still very early, we are extremely encouraged by the trend shift at that location and look forward to sharing more in the future.

Kelli F. Valade: Turning to Kiki's development, we opened our second corporate cafe in Tennessee, just outside of Nashville and Gallatin. As excited as we were about our Henderson, Tennessee cafe being on pace to deliver approximately $2 million in annualized sales volume, Gallatin is proving to be even better and bolstered by expanded outdoor patio seating capacity.

Speaker Change: Turning to Kiki's development, we opened our second corporate cafe in Tennessee, just outside of Nashville and Gallatin.

Speaker Change: As excited as we were about our Henderson, Tennessee cafe being on pace to deliver approximately $2 million in annualized sales volume, Gallatin is proving to be even better and bolstered by expanded outdoor patio seating capacity.

Kelli F. Valade: On top of that, we also completed our first remodel test at our largest volume corporate cafe in Orlando in June, and while it's still very early, we are extremely encouraged by the trend shift at that location and look forward to sharing more in the future. This new image will be just what we need to refresh and update Kiki's Cafes in Florida, and there's big upside when we do that. We have so much to look forward to with the Kiki's brand because we know Kiki's is poised to continue stealing share from the competition while also growing into new markets like California and Texas later this year.

Speaker Change: On top of that, we also completed our first remodel test at our largest-volume corporate cafe in Orlando during June , and while it's still very early, we are extremely encouraged by the trend shift at that location and look forward to sharing more in the future.

Kelli Valade: This new image will be just what we need to refresh and update Kiki's cafes in Florida, and there's big upside when we do this. We have so much to look forward to with the Kiki's brand because we know Kiki's is poised to continue stealing share from the competition while also growing into new markets like California and Texas later in this year. This brand continues to amaze me with the steadfast commitment and enthusiasm from our teams and our franchisees, all working toward the goal of becoming one of the largest competitors in the fastest growing daytime eatery segment.

Speaker Change: This new image will be just what we need to refresh and update Kiki's Cafes in Florida, and there's big upside when we do this. We have so much to look forward to with the Kiki's brand because we know Kiki's is poised to continue stealing share from the competition while also growing into new markets like California and Texas later this year.

Kelli F. Valade: This brand continues to amaze me with the steadfast commitment and enthusiasm from our teams and our franchisees, all working towards the goal of becoming one of the largest competitors in the fastest growing daytime eatery sector. In closing, we are in the final stages of launching many initiatives that will move the needle for years to come for both brands. From our proven remodel programs, new technology platforms, incremental investments in advertising, and new revenue channels through virtual brand offerings, there is so much to look forward to in both of our brands.

Speaker Change: This brand continues to amaze me with the steadfast commitment and enthusiasm from our teams and our franchisees, all working toward the goal of becoming one of the largest competitors in the fastest-growing daytime eatery segment.

Kelli Valade: In closing, we are in the final stages of launching many initiatives that will move the needle for years to come for both brands. From our proven remodel programs, new technology platforms, incremental investments in advertising, and new revenue channels through virtual brand offerings, there is so much to look forward to in both of our brands. I can now be more proud of our teams, our franchise partners, and all those leading these amazing brands, taking great care of our guests every single day.

Speaker Change: In closing, we are in the final stages of launching many initiatives that will move the needle for years to come for both brands.

Speaker Change: From our proven remodel programs, new technology platforms, incremental investments in advertising, and new revenue channels through virtual brand offerings, there is so much to look forward to in both of our brands. I could not be more proud of our teams, our franchise partners, and all those leading these amazing brands, taking great care of our guests every single day.

Kelli F. Valade: I could not be more proud of our teams, our franchise partners, and all those leading these amazing brands, taking great care of our guests every single day. I'll now turn the call over to our CFO, Robert Verostek.

Robert Verostek: I'll now turn the call over to our CFO, Robert Barostick. Thank you, Kelly, and good afternoon everyone. Denny's reported Q2 domestic system-wide same restaurant sales of negative 0.6%. Denny's domestic system-wide same restaurant sales were comprised of approximately 5% in pricing, net of changes in product mix related to increased value offerings. Approximately half of the pricing for the quarter was carryover from Fiscal 2023. Denny's domestic average weekly sales per restaurant for their second quarter were $38,000, including off-premises sales of approximately $8,000, or approximately 20% of total sales. Kiki's delivered system-wide same cafe sales of negative 4.6% for the quarter, but as Kelly mentioned, the brand continues to make great progress closing the gap to the Florida index.

Robert P. Verostek: Thank you, Kelli, and good afternoon, everyone. Denny's reported Q2 domestic system-wide same restaurant sales of negative 0.6%. Denny's domestic system-wide same-restaurant sales were comprised of approximately 5% in pricing, net of changes in product mix related to increased value offered, approximately half of the pricing for the quarter, with carryover from fiscal 2023. Denny's domestic average weekly sales per restaurant for their second quarter were $38,000, including off-premises sales of approximately $8,000, or approximately 20% of total sales. Kiki's delivered system-wide same cafe sales of negative 4.6% for the quarter. But, as Kelli mentioned, the brand continues to make great progress closing the gap with the Florida index.

Speaker Change: I'll now turn the call over to our CFO , Robert Verostek.

Robert P. Verostek: Thank you, Kelli, and good afternoon, everyone.

Robert P. Verostek: Denny's reported Q2 domestic system-wide same-restaurant sales of negative 0.6 percent.

Robert P. Verostek: Denny's domestic system-wide same restaurant sales were comprised of approximately 5% in pricing net of changes in product mix related to increased value offerings.

Speaker Change: Approximately half of the pricing for the quarter was carryover from fiscal 2023.

Speaker Change: Denny's Domestic averaged weekly sales per restaurant for their second quarter were $38,000, including off-premises sales of approximately $8,000, or approximately 20% of total sales.

Speaker Change: Kiki's delivered system-wide same cafe sales of negative 4.6% for the quarter. But as Kelli mentioned, the brand continues to make great progress closing the gap to the Florida Index.

Robert Verostek: Kiki's expanded the roll-out of alcoholic beverages to over 40% of the system, providing check-building opportunities in those locations, and we look forward to continuing the expansion.

Robert P. Verostek: Kiki's expanded the rollout of alcoholic beverages to over 40% of the system, providing check-building opportunities in those locations, and we look forward to continuing the expansion. Now, turning to our second quarter financial details. Total operating revenue was $115.9 million compared to $116.9 million for the prior year quarter. Franchise and license revenue was $61.6 million compared to $62 million for the prior year quarter. This change was driven by decreases in franchise occupancy revenue and franchise sales, partially offset by an increase in franchise advertising revenue primarily related to higher local advertising co-op contributions for the current quarter. Adjusted Franchise Operating Margin was $30.8 million, or 50% of franchise and license revenue, compared to $31.6 million, or 50.9% for the prior year quarter. The margin change was primarily due to lower sales and lease terminations.

Speaker Change: Kiki's expanded the rollout of alcoholic beverages to over 40% of the system, providing check building opportunities in those locations, and we look forward to continuing the expansion.

Robert Verostek: Turning to our second quarter financial details. Total operating revenue was $115.9 million, compared to $116.9 million for the prior year quarter.

Robert P. Verostek: Additionally, the margin rate was impacted by approximately 80 basis points related to higher advertising, which increases revenue but is margin neutral. Company restaurant sales were $54.3 million, compared to $54.9 million for the prior year quarter. This was primarily driven by a decrease in same restaurant sales, partially offset by three additional Kiki's equivalent units for the current quarter, adjusted company restaurant operating margin of $7.2 million or 13.2% of company restaurant sales compared to $8.5 million or 15.4% for the prior year quarter.

Robert P. Verostek: This margin change was primarily due to a decrease in same restaurant sales and increases in marketing and general liability insurance costs for the current quarter. Approximately 80 basis points of the unfavorable change in margin rate was the result of an increase in marketing expenses, while general liability and medical insurance adjustments negatively impacted the rate by approximately 50 basis points for the current quarter. Commodity inflation was approximately 1% for the quarter, an improvement over the approximately 2% we have experienced over the last two quarters. Additionally, team labor inflation was 3% in Q2, unchanged from Q1.

Speaker Change: Turning to our second quarter financial details.

Speaker Change: Total operating revenue was $115.9 million compared to $116.9 million for the prior year quarter.

Robert Verostek: Order. Franchise and license revenue was $61.6 million compared to $62 million for the prior year quarter. This change was driven by decreases in franchise occupancy revenue and franchise sales. Partially offset by an increase in franchise advertising revenue, primarily related to higher local advertising co-op contributions for the current quarter. Adjusted franchise operating margin was $30.8 million, or 50% of franchise and license revenue, compared to $31.6 million, or 50.9%, for the prior year quarter. The margin change was primarily due to lower sales and lease terminations. Additionally, the margin rate was impacted by approximately 80 basis points related to higher advertising, which increases revenue but is margin neutral.

Speaker Change: Franchise and license revenue was $61.6 million compared to $62 million for the prior year quarter.

Speaker Change: This change was driven by decreases in franchise occupancy revenue and franchise sales.

Speaker Change: Partially offset by an increase in franchise advertising revenue primarily related to higher local advertising co-op contributions for the current quarter.

Speaker Change: Adjusted franchise operating margin was $30.8 million, or 50% of franchise and license revenue, compared to $31.6 million, or 50.9% for the prior year quarter.

Speaker Change: The margin change was primarily due to lower sales and lease terminations.

Speaker Change: Additionally, the margin rate was impacted by approximately 80 basis points related to higher advertising, which increases revenue, but is margin neutral.

Robert Verostek: Company restaurant sales were $54.3 million compared to $54.9 million for the prior year quarter. This was primarily driven by a decrease in same restaurant sales, partially offset by three additional keys equivalent units for the current quarter. Adjusted company restaurant operating margin was $7.2 million, or 13.2% of company restaurant sales, compared to $8.5 million, or 15.4%, for the prior year quarter. This margin change was primarily due to a decrease in same restaurant sales and increases in marketing and general liability insurance costs for the current quarter. Approximately 80 basis points of the unfavorable change in margin rate was the result of increase in marketing expenses, while general liability and medical insurance adjustments negatively impacted the rate by approximately 50 basis points for the current quarter.

Speaker Change: Company restaurant sales were $54.3 million compared to $54.9 million for the prior year quarter.

Speaker Change: This was primarily driven by a decrease in same restaurant sales, partially offset by three additional Kiki's equivalent units for the current quarter.

Speaker Change: Adjusted company restaurant operating margin was $7.2 million or 13.2% of company restaurant sales, compared to $8.5 million or 15.4% for the prior year quarter.

Speaker Change: This margin change was primarily due to a decrease in same restaurant sales and increases in marketing and general liability insurance costs for the current quarter.

Speaker Change: Approximately 80 basis points of the unfavorable change in margin rate was the result of increase in marketing expenses, while general liability and medical insurance adjustments negatively impacted the rate by approximately 50 basis points for the current quarter.

Robert Verostek: Commodity inflation was approximately 1% for the quarter and improvement over the approximately 2% we have experienced over the last two quarters. Additionally, team labor inflation was 3% in Q2, unchanged from Q1. We have not experienced a material increase in team wages at our 22 California company restaurants as a result of AB 1228. We believe this is in part due to our servers earning well above the AB 1228 minimum wage when factoring in tip income. General and administrative expenses for Q2 totaled $20.5 million compared to $20.2 million for the prior year quarter. Primarily driven by an increase in corporate administrative expenses.

Speaker Change: Commodity inflation was approximately 1% for the quarter, an improvement over the approximately 2% we have experienced over the last two quarters.

Speaker Change: Additionally, team labor inflation was 3% in Q2, unchanged from Q1.

Robert P. Verostek: We have not experienced a material increase in team wages at our 22 California company restaurants as a result of AB 1228. We believe this is in part due to our servers earning well above the AB 1228 minimum wage when factoring in TIP income. General and administrative expenses for Q2 totaled $20.5 million compared to $20.2 million for the prior year quarter, primarily driven by an increase in corporate administrative expenses. These results collectively contributed to a justed EBITDA of $20.3 million. The effective income tax rate was 25.1% compared to 23.8% for the prior year quarter.

Speaker Change: We have not experienced a material increase in team wages at our 22 California company restaurants as a result of AB 1228.

Speaker Change: We believe this is in part due to our servers earning well above the AB 1228 minimum wage when factoring in tip income.

Speaker Change: General and administrative expenses for Q2 totaled $20.5 million compared to $20.2 million for the prior year quarter.

Robert Verostek: These results collectively contributed to adjusted EBITDA of $20.3 million. The effective income tax rate was 25.1% compared to 23.8% for the prior year quarter. This change in rate was primarily due to discrete items related to share-based compensation for the prior year quarter. Adjusted net income per share was 13 cents in the current year quarter compared to 15 cents for the prior year quarter. Our quarter end total debt leverage ratio was 3.7.

Speaker Change: primarily driven by an increase in corporate administrative expenses.

Speaker Change: These results collectively contributed to a justed EBITDA of $20.3 million.

Speaker Change: The effective income tax rate was 25.1% compared to 23.8% for the prior year quarter.

Robert P. Verostek: This change in rate was primarily due to discrete items related to share-based compensation for the prior year quarter. Adjusted net income per share was $0.13 in the current year quarter compared to $0.15 for the prior year quarter. Our quarter-end total debt leverage ratio was 3.7 times. We had approximately $267 million of total debt outstanding, including $258 million borrowed under our credit facility.

Speaker Change: This change in rate was primarily due to discrete items related to share-based compensation for the prior year quarter.

Speaker Change: Adjusted net income per share was $0.13 in the current year quarter compared to $0.15 for the prior year quarter.

Robert Verostek: Times. We had approximately $267 million of total debt outstanding, including $258 million borrowed under our credit facility. We continued our commitment to returning capital to our shareholders through share repurchases while also balancing our longer-term goal of growing the Kiki's brand, which will contribute additional incremental adjusted EBITDA and cash flow in the near future. During the quarter, we allocated $4.7 million to share repurchases while also investing $5 million in cash capital expenditures primarily related to Kiki's development. At the end of the quarter, we had approximately $91 million remaining under our existing repurchase authorization.

Speaker Change: Our quarter-end total debt leverage ratio was 3.7 times. We had approximately $267 million of total debt outstanding, including $258 million borrowed under our credit facility.

Robert P. Verostek: We continue our commitment to returning capital to our shareholders through share repurchases while also balancing our longer-term goal of growing the Kiki's brand, which will contribute additional incremental adjusted EBITDA and cash flow in the near future. During the quarter, we allocated $4.7 million to share purchases or distributions, while also investing $5 million in cash capital expenditures, primarily related to Kiki's development. At the end of the quarter, we had approximately $91 million remaining under our existing repurchase authorization.

Speaker Change: We continue our commitment to returning capital to our shareholders through share repurchases, while also balancing our longer-term goal of growing the Kiki's brand, which will contribute additional incremental adjusted EBITDA in cash flow in the near future.

Speaker Change: During the quarter, we allocated $4.7 million to share or purchases, while also investing $5 million in cash capital expenditures, primarily related to Kiki's development.

Speaker Change: At the end of the quarter, we had approximately $91 million remaining under our existing repurchase authorization.

Robert Verostek: Next, to recap our second quarter development highlights. Our brand's open four combined restaurants during the quarter, consisting of three new Denny's franchise restaurants and one company-owned Kiki's Cafe. There were also 15 closures, with an average unit volume of slightly under $1.1 million, and were open on average for 24 years. Over that time frame, trade areas have shifted, which negatively impacted their viability. Despite these closures, we remain encouraged by the overall strengthening of the broader franchise portfolio. As I mentioned last quarter, and the trend remains the same, while same restaurant sales have softened, we have seen expansion in our franchise average unit volumes as we close lower performing restaurants.

Robert P. Verostek: Next, to recap our second quarter development highlights. Our brands opened four combined restaurants during the quarter, consisting of three new Denny's franchise restaurants and one company-owned Kiki's Cafe. There were also 15 closures with an average unit volume of slightly under 1.1 million dollars and were open on average for 24 years. Over that time frame, trade areas have shifted, which negatively impacted their viability.

Robert P. Verostek: Despite these closures, we remain encouraged by the overall strengthening of the broader franchise portfolio. As I mentioned last quarter, and the trend remains the same, while same-restaurant sales have softened, we have seen expansion in our franchise average unit volumes as we close lower performing restaurants. Moving to Kiki's, we opened one company cafe during the quarter in Gallatin, Tennessee, marking the second cafe opened outside of Florida and the second cafe in the Nashville, Tennessee market.

Speaker Change: Next, to recap our second quarter development highlights.

Speaker Change: Our brands opened four combined restaurants during the quarter, consisting of three new Denny's franchise restaurants and one company-owned Kiki's Café.

Speaker Change: There were also 15 closures with an average unit volume of slightly under 1.1 million dollars and were open on average for 24 years.

Speaker Change: Over that time frame, trade areas have shifted, which negatively impacted their viability.

Speaker Change: Despite these closures, we remain encouraged by the overall strengthening of the broader franchise portfolio.

Speaker Change: As I mentioned last quarter, and the trend remains the same, while same restaurant sales have softened, we have seen expansion in our franchise average unit volumes as we close lower performing restaurants.

Robert Verostek: Moving to Kiki's, we opened one company cafe during the quarter in Gallatin, Tennessee, marking the second cafe opened outside of Florida and the second cafe in the Nashville, Tennessee market. In addition, there are currently four cafes under construction, with several others in permitting and site approval phases.

Speaker Change: Moving to Kiki's, we opened one company cafe during the quarter in Gallatin, Tennessee, marking the second cafe opened outside of Florida and the second cafe in the Nashville, Tennessee market.

Robert P. Verostek: In addition, there are currently four cafes under construction, with several others in the permitting and site approval phases. Let me now discuss the Business Outlook section of our earnings release. Despite outperforming the BBI Family Dining Index, Denny's has experienced many of the macroeconomic factors that are impacting the broader restaurant industry.

Speaker Change: In addition, there are currently four cafes under construction with several others in permitting and site approval phases.

Robert Verostek: Let me now discuss the business outlook section of our earnings release. Despite outperforming the BBI family dining index, Denny's has experienced many of the macroeconomic factors that are impacting the broader restaurant industry. As a result of these impacts, we are adjusting our 2024 domestic system-wide same restaurant sales guidance to between negative 1% and positive 1% compared to 2023. Our year-to-date closures are currently above our midpoint of guidance. However, typically, restaurants remained open during the summer months, absent lease expressions to capture the summer travel sales. We will continue to monitor closures into the fall and provide an update if appropriate.

Robert P. Verostek: As a result of these impacts, we are adjusting our 2024 Domestic Systemwide Same Restaurant Sales Guidance to between negative 1% and positive 1% compared to 2023. Our year-to-date closures are currently above our midpoint of guidance. However, typically, restaurants remain open during the summer months, absent lease expirations to capture summer travel sales.

Speaker Change: Let me now discuss the Business Outlook section of our earnings release.

Speaker Change: Despite outperforming the BBI Family Dining Index, Denny's has experienced many of the macroeconomic factors that are impacting the broader restaurant industry.

Speaker Change: As a result of these impacts, we are adjusting our 2024 Domestic Systemwide Same Restaurant Sales Guidance to between negative 1% and positive 1% compared to 2023.

Speaker Change: Our year-to-date closures are currently above our midpoint of guidance. However, typically, restaurants remain open during the summer months, absent lease expirations to capture the summer travel sales. We will continue to monitor closures into the fall and provide an update if appropriate.

Robert Verostek: Given current construction progress, we now anticipate opening 30 to 40 restaurants on a consolidated basis, inclusive of 12 to 16 Kiki's openings and a consolidated net decline of 20 to 30 restaurants. We are projecting 2024 commodity inflation to be between 0 and 2%, and for labor inflation between 3 and 4%. Our expectations for consolidated total general and administrative expenses are between $82 and $85 million, including $11 million related to share-based compensation expense, which does not impact adjusted e-Victor. As a result of the change in our sales outlook, we are now shifting our range for consolidated adjusted EBITDA to between $83 million and $87 million.

Robert P. Verostek: We will continue to monitor closures into the fall and provide an update if appropriate. Given current construction progress, we now anticipate opening 30 to 40 restaurants on a consolidated basis, inclusive of 12 to 16 Kiki's openings, and a consolidated net decline of 20 to 30 restaurants. We are projecting 2024 commodity inflation to be between 0% and 2% and for labor inflation between 3% and 4%.

Speaker Change: Given current construction progress, we now anticipate opening 30-40 restaurants on a consolidated basis, inclusive of 12-16 Kiki's openings, and a consolidated net decline of 20-30 restaurants.

Speaker Change: We are projecting 2024 commodity inflation to be between 0 and 2%, and for labor inflation between 3 and 4%.

Robert P. Verostek: Our expectations for consolidated total general and administrative expenses are between $82 and $85 million, including $11 million related to share-based compensation expense, which does not impact adjusted EBITDA. As a result of the change in our sales outlook, we are now shifting our range for Consolidated Adjusted EBITDA to between $83 million and $87 million. Lastly, I would like to thank our dedicated franchise partners, restaurant operators, and results-driven brand teams who have remained focused on delivering a best-in-class guest experience while continuing to drive our strategic priorities, especially given the current consumer environment. That wraps up our prepared remarks. I will now turn the call over to the operator to begin the Q&A portion of our call. Thank you. At this time, we'll be

Speaker Change: Our expectations for consolidated total general and administrative expenses are between $82 and $85 million, including $11 million related to share-based compensation expense, which does not impact adjusted EBITDA.

Speaker Change: As a result of the change in our sales outlook, we are now shifting our range for consolidated adjusted EBITDA to between $83 million and $87 million.

Robert Verostek: Lastly, I would like to thank our dedicated franchise partners, restaurant operators, and results-driven brand teams who have remained focused on delivering a best-in-class guest experience while continuing to drive our strategic priorities, especially given the current consumer environment.

Speaker Change: Lastly, I would like to thank our dedicated franchise partners, restaurant operators, and results-driven brand teams who have remained focused on delivering a best-in-class guest experience while continuing to drive our strategic priorities, especially given the current consumer environment.

Operator: That wraps up our prepared remarks. I will now turn the call over to the operator to begin the Q&A portion of our call.

Speaker Change: That wraps up our prepared remarks. I will now turn the call over to the operator to begin the Q&A portion of our call.

Operator: Thank you. At this time, we'll be conducting a question and answer session. If you like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants who use speaker equipment, it may be necessary to pick up the handset before pressing the star keys. One moment, please, while we poll for questions.

Operator: Thank you. We'll be conducting a question and answer session. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing star 2.

Speaker Change: Thank you. At this time, we'll be conducting a question and answer session. If you'd like to ask a question, please press star 1 on your telephone keypad.

Speaker Change: A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys.

Operator: One moment, please, while we poll for questions. Our first question comes from Michael Tamas with Oppenheimer. Please proceed with your question. Alright, good afternoon.

Speaker Change: One moment, please, while we poll for questions.

Michael Tamas: Our first question comes from Michael Tamaas with Oppenheimer. Please proceed with your question. Hi, good afternoon.

Speaker Change: Our first question comes from Michael Tamas with Oppenheimer. Please proceed with your question.

Operator: Hi, good afternoon.

Michael A. Tamas: Hi, good afternoon.

Operator: Hey, Michael, are you there? I know he's not there.

Operator: Hey, Michael, are you there? He's not there. Let me go to our next question. Our next question comes from Todd Brooks with the Benchmark. Please proceed with your question.

Speaker Change: Hey Michael, are you there?

Speaker Change: I don't think he's not there.

Todd Brooks: Let me go to our next question. Our next question comes from Todd Brooks with the Benchmark Company. Please proceed with your question.

Speaker Change: Let me go to our next question.

Speaker Change: Our next question comes from Todd Brooks with the Benchmark Company. Please proceed with your question.

Operator: Hey, can you hear me okay? Yeah, we have you, Todd.

Todd Brooks: Hey, can you hear me okay? Yeah, we have you, Todd. Thank you. Okay, thank you all.

Todd Morrison Brooks: Thank you. Okay, thank you. Thank you all. A couple questions.

Todd Morrison Brooks: Hey, can you hear me okay?

Robert P. Verostek: Robert, you talked about kind of a net Price Mix Impact of 5% in the quarter. The prior quarters, Barbell had been working, and you were kind of netting out to relatively flatten that mix, if memory serves me correctly. Did mix hold flat, or would the additional pressure on the consumer have mixed now?

Todd Morrison Brooks: Yeah, we have you, Todd. Thank you. Okay, thank you. Thank you all. A couple questions. Robert, you talked about kind of a net...

Robert Verostek: A couple questions, Robert. You talked about kind of a net price mix impact of 5% in the quarter. The prior quarters, Barbell, had been working, and you were kind of netting out to relatively flat mix if memory serves me correctly. Did mix hold flat or with the additional pressure on the consumer has mixed now. Yes, Todd. So the mix for the quarter was a slight negative impact to overall GCA. So net pricing was 5%. I believe the mix impact largely driven from some additional value actually was about a negative 1% impact driving that down to the 5% that we quoted in my script.

Todd Morrison Brooks: Price Mix Impact of 5% in the quarter. The prior quarters, Barbell had been working and you were kind of netting out to relatively flat mix, if memory serves me correctly. Did mix hold flat or would the additional pressure on the consumer as mix now dip next

Robert P. Verostek: Yeah, Todd. So the mix for the quarter was a slight negative impact on overall GCA. So net pricing was 5%. I believe the mixed impact, largely driven from some additional value, actually was about a negative 1% impact, driving that down to the 5% that we quoted in my script. So again, actually somewhat intentional as we continue to push additional value.

Robert P. Verostek: Yeah, Todd, so, uh, the mix.

Speaker Change: for the quarter with a slight negative impact.

Speaker Change: to overall GCA. So net pricing was 5%. I believe the mixed impact, largely driven from some additional value, actually was about a negative 1% impact, driving that down to the 5% that we quoted in my script. So again, actually somewhat intentional as we continue to push additional value.

Robert Verostek: So again, actually somewhat intentional as we continue to push additional value.

Todd Morrison Brooks: Great, thank you. And then just talking about value mix in general, I don't think you shared... What percent of sales were considered on value platforms? And based on kind of early testing on 2, 4, 6, 8, 10, thoughts on how high that value mix could creep in the second half of 24. Thanks. I'll jump back in queue.

Kelli Valade: Great. Thank you. And then just talking about value mix in general, I don't think you shared what percent of sales were considered on value platforms and based on kind of early testing on 246 810. Thoughts on how high that value mix could creep in the second half of 24. Thanks.

Speaker Change: Great, thank you. And then just talking about value mix in general, I don't think you shared...

Speaker Change: what percent of sales were were considered on value platforms and based on kind of early testing on 2, 4, 6, 8, 10, thoughts on how high that value mix could creep in the second half of 24. Thanks. I'll jump back in queue.

Kelli Valade: I'll jump back. Thank you. Sure.

Kelli F. Valade: Sure. Hi, Todd. This is Kelli.

Kelli Valade: Hi, Todd. This is Kelli. And yeah, absolutely. We didn't touch on it and kind of overemphasize it because it really has remained flat, slightly down. So it was 18% down from just about 19 last quarter. And so we saw a lot of movement. We were advertising all day diner deals. We felt better about that. It had actually been margin positive for us given what we had been doing before and given how we engineered that. So we saw a tiny bit down, and then our took to the second part of your question, our 2468 platform, 268.10, actually.

Kelli F. Valade: And, yeah, absolutely. We didn't touch on it and kind of overemphasize it because it really has remained flat, slightly down. So it was 18 percent down from just about 19 last quarter. And so we saw a lot of movement. We were advertising all-day diner deals.

Kelly: Sure. Hi, Todd. This is Kelli. And yeah, absolutely. We didn't touch on it and kind of overemphasize it because it really has remained flat, slightly down. So it was 18% down from just about 19% last quarter. And so we saw a lot of movement. We were advertising all-day diner deals. We felt better about that. Actually, it was margin positive for us given what we had been doing before and given how we engineered that. So we saw a tiny bit down. And then to the second part of your question, our 2468 platform, 2468.10, actually, now engineered to have that $10 price point in it. That's actually mixing mid-teens.

Kelli F. Valade: We felt better about that. Actually, it was a margin positive for us, given what we had been doing before and given how we engineered it. So we saw a tiny bit down. And then, to the second part of your question, our 2468 platform – 246810, actually – now engineered to have that $10 price point in it. That's actually mixing mid-teens, and it had higher in some markets as we did the test. But we feel really confident in both the consumer feedback, the operator feedback, the alignment with the franchisees, and then just the true equity that we have.

Kelli Valade: Now engineered to have that $10 price one in it. That's actually mixing mid-teens, and it had higher in some markets as we did the test. But we feel really confident in both the consumer feedback, the operator feedback, the alignment with the franchisees, and then just the true equity that we have in 2468. And within that mix, Kelli, sorry for the follow-up, but we talked about all-day diner deals being margin positive. Let's call it two through ten instead of the thing each time because that impact is a mix of higher.

Curtis L. Nichols: and Curtis Nichols.

Kelli F. Valade: And within that mix, Kelli, sorry for the follow-up, but you talked about all the downer deals being margin positive. Let's call it 2-10 instead of listing it each time. How does that impact more?

Speaker Change: And within that mix, Kelli, sorry for the follow-up, but you talked about all day downer deals being margin positive.

Curtis L. Nichols: Let's call it 2-10 instead of listing it each time. It has that impact. It makes us higher.

Kelli F. Valade: That's a good question. No, I think we did not see any margin erosion in the 2, 4, 6, 8, 10. That's a good handle you just described for us. We'll see if we can try that one on for size.

Kelli Valade: That's a good question. No, I think we think we did not see any margin erosion in the 2462. That's a good handle. You just described for us. We'll see if we didn't try that one on Versailles. But we didn't see any margin erosion. And again, we think we've really engineered this one. I will call out for reference. We actually not only did we add the $10 price point thinking relative to the time; it's been a while since this offer has been out, but we also made the $2 and the $4. Those are add-on categories, and yet the consumer responded incredibly well to that.

Speaker Change: That's a good question. No, I think we think we did not see.

Speaker Change: We didn't see any margin erosion in the 2, 4, 6, 8, 10. That's a good handle you just described for us. We'll see if we can try that one on for size. But we didn't see any margin erosion. And again, we think we've really engineered this one. I will call out for, just for reference, we actually, not only did we add the $10 price point, thinking relative to the time, it's been a while since this offer's been out,

Kelli F. Valade: But we didn't see any margin erosion. And again, we think we've really engineered this one. I will call out for, just for reference, we actually did not only add the $10 price point, thinking relative to the times, it's been a while since this offer was out, but we also made the 2 and the 4 an add-on category. Those are add-ons And yet, the consumer responded incredibly well to that. So those add-on categories are helping.

Speaker Change: But we also made the $2 and the $4. Those are add-on categories.

Kelli Valade: So those add-on categories are helping. And they also were feedback given to us from our franchises. These help would be alignment. And when we put that into test, it just created variety in everyone's minds. And it created just that much more excitement for us and how we've engineered it.

Speaker Change: And yet, the consumer responded incredibly well to that.

Speaker Change: So those add-on categories are helping, and they also were feedback given to us from our franchisees. Helps with the alignment, and when we put that into test, it just created variety in everyone's mind, and it still just, it created just that much more excitement for us in how we've engineered it.

Kelli Valade: Perfect, thanks, Kelli. Thank you.

Kelly: Perfect. Thanks, Kelli.

Jake Bartlett: Our next question comes from Jake Bartlett with True with Security. Please proceed with your question. Great, thank you so much for taking the questions. You know, my first is on the trajectory of Saint-Roselle. You mentioned you're softening in June. I think the commentary in July was more framed about market share or just out performance versus few index. We don't have the benefit of that index.

Kelly: Thank you.

Speaker Change: Our next question comes from Jake Bartlett with Truist Securities. Please proceed with your question.

Jake Rowland Bartlett: Great, thank you so much for taking the questions. You know, my first is on the trajectory of Sainsbury's sales. You mentioned softening in June . I think the commentary in July was more framed about market share or just outperformance versus the index.

Jake Bartlett: So I'm hoping you can disprayman in actual, you know, in friends in Saint-Roselle's friends, just because we don't have the data I think that you're referring to. So, you know, how did Saint-Roselle's friends, you know, from June into July? If you can share that. And maybe just a little more context of how they trended in the court itself.

Speaker Change: We don't have the benefit of that index, so I'm hoping you can just frame it in actual trends, in same-sure sales trends, just because we don't have the data, I think, that you're referring to. So, how did same-sure sales trend from June into July , if you could share that?

Kelli F. Valade: And they also were feedback, that was feedback given to us from our franchisees that helps with the alignment. And when we put that into test, it just created variety in everyone's mind. And it still just created just that much more excitement for us in how we've engineered it.

Speaker Change: and maybe just a little more context of how they trended in the quarter itself.

Robert Verostek: Yeah, hey, Jake, this is Robert. Happy to answer that. Good to hear your voice. So when you're looking at trends, we are trending favorably into July when you look at the total for Q2. So that negative six is that we delivered in Q2 with actually, we actually are outperforming that as we move into July. In actually a pretty material wage, June was actually the lowest of the three months in the quarter at down 1.5%. So we actually have a pretty material change in trend. And that's even before we launch into the 2.4, 6, 8, 10, 2, 10.

Speaker Change: Hey Jake, this is Robert. Happy to answer that. Good to hear your voice.

Operator: Our next question comes from Jake Bartlett with Truist Securities. Please proceed with your question.

Jake Rowland Bartlett: So when you're looking at trends, we are trending favorably into July when you look at the total for Q2.

Jake Rowland Bartlett: Great, thank you so much for taking the questions. You know, my first question is on the trajectory of Sainsbury's sales. You mentioned softening in June. I think the commentary in July was more framed about market share or just outperformance versus the index. We don't have the benefit of that index.

Jake Rowland Bartlett: We actually are outperforming that as we move into July in actually a pretty material way. June was actually the lowest of the three months in the quarter at down one and a half percent.

Jake Rowland Bartlett: So I'm hoping you can just frame it in terms of actual, in terms of trends, in Sainsbury's sales trends, just because we don't have the data I think that you're referring to. So how did Sainsbury's sales trend from June into July? If you could share that, and maybe just a little more context of how they trended in the quarter.

Robert P. Verostek: Hey Jake, this is Robert. Happy to answer that. Good to hear your voice. So when you're looking at trends, we are trending favorably into July when you look at the total for Q2. So that negative 6 that we delivered in Q2, we actually are outperforming that as we move into July. In actually a pretty material way.

Jake Rowland Bartlett: So actually a pretty material change in trend, and that's even before we launch into the 2.4.6.8.10.2.10, as Todd described it, about week three into August . So again, we're really kind of pleased on the way that the quarter has trended to start.

Robert Verostek: It's Todd described it about week three into August. So again, we're really kind of pleased on the way that the quarter is trended to start. Great.

Robert P. Verostek: June was actually the lowest of the three months in the quarter at down 1.5%. So actually, a pretty material change in trend and that's even before we launch into the 2.4.6.8.10.2.10 as Todd described it, about week three into August. So again, we're really kind of pleased with the way that the quarter has trended to start.

Robert P. Verostek: Great. And maybe, Robert, if you could maybe share whether July was positive or not? It sounds like July would have been positive, but maybe if you can confirm that, you know, and I'll let you give you a chance to do that in one sec, but the rest of the question is, you know, I look at this implied second-half guidance for Sinks for Sales, and it's negative one to, you know, roughly three percent positive.

Robert Verostek: And maybe, Robert, if you may be to share whether July was positive, it sounds like July would have been positive. But maybe if you can confirm that, you know, and I'll let you give you a chance to do that in one sec. But the rest of the question is, you know, I look at and let that this implied second half guidance for things or sales, and, you know, it's negative one to, you know, roughly 3% positive. So really, really wide range.

Speaker Change: Great. And maybe, Robert, if you'd maybe share whether July was positive. It sounds like July would have been positive, but maybe, you know, if you can confirm that. You know, and I'll give you a chance to do that in one sec. But the rest of the question is, you know, I look at this implied second-half guidance for things for sales, and, you know, it's negative one to, you know, roughly three percent positive. So really, really wide range.

Robert P. Verostek: So, really, really wide range. I think in the past you've sometimes given us some, you know, where you feel most confident in that range. That might be helpful. It sounds like you do have, you know, so many things coming to bear with the co-op, you know, co-ops kind of fully rolled in, the band of burritos coming on, the What would, would it just be the macro environment really turning to the worst from here that would result in negative territory in the back half here?

Robert Verostek: I'm thinking to pass sometimes you; you've given us, you know, where you feel most confident in that range. That might be helpful.

Speaker Change: I think in the past sometimes you've, you know, you've given us some, you know, where you feel most confident in that range. That might be helpful. It sounds like you do have, you know,

Robert Verostek: It sounds like you do have, you know, so many things coming to bear with the co-op, you know, co-ops can fully rolled in the band of burrito coming on the two through 10, you know, what would, I mean, it seems it would just be the macro environment really turning to the worst from here that would, you know, put results in the negative territory in the back half here. Yeah, so, so let me answer your first part of that question. July is pretty much flat at this point, Jake is so a point and a half or so improvement now as we've gone out of Lake Q2 into the Q3.

Robert P. Verostek: So many things coming to bear with the co-op, you know, co-op's kind of fully rolled in, the band of burrito coming on, the...

Speaker Change: Robert Verostek, Curtis Nichols

Robert P. Verostek: Yeah, so let me answer your first part of that question. July is pretty much flat at this point, Jake, so a point and a half or so improvement now as we've gone out of late Q2 into Q3. With regard to why that range, right, that negative one to plus one, if you look at that with all of the initiatives that we have in place, and we're very, very excited about the ones you've listed,

Speaker Change: Yeah, so let me answer your first part of that question. July is pretty much flat at this point, Jake, so a point and a half or so improvement now as we've gone out of late Q2 into Q3.

Robert Verostek: With regard to what that range, right, the negative one to plus one, if you look at that, we, with all of the initiatives that we have in play and we're very, very excited about the ones you've listed. So you went with the 210 full benefit of co-ops. We're remodels are starting. We have Zennial now into ten, like roughly 10% of the system, including all of the company restaurants. We are in now 300 plus restaurants with our next virtual brand, our third virtual brand bond. We have a lot of reason to be excited, and I would like to say that we would be at the top end of that range.

Speaker Change: With regard to that range, that negative one to plus one, if you look at that, with all of the initiatives that we have in play, and we're very, very excited about the ones you've listed. So you went with the 210, full benefit of co-ops, remodels are starting. We have Xenial now into roughly 10% of the system, including all of the company restaurants. We are in now 300 plus restaurants with our next virtual brand, our third virtual brand, Vonda. We have a lot of reason to be excited, and I would like to say that we would be at the top end of that range. The reality is, is there... We are...

Robert P. Verostek: So you went with the 210, full benefit of the co-ops, remodels are starting. We have Zenial now in roughly 10% of the system, including all of the company restaurants. We are in now 300 plus restaurants with our next virtual brand, our third virtual brand, Bonda.

Robert P. Verostek: We have a lot of reason to be excited, and I would like to say that we would be at the top end of that range. However, the reality is that we are in a very volatile macroeconomic environment, which we don't control. So we will execute against the things that are within our control, all of those positive benefits that I listed out to you just a second ago, and look to drive towards the top end of that range, but with hedging given the environment that we're in.

Robert Verostek: The reality is that we are in a very volatile macroeconomic environment, which we don't control. So we will execute against the things that are within our control, all of those positive benefits that I listed out to you just a second ago, and look to drive towards the top end of that range, but hedging given the environment that we're in.

Speaker Change: are in a very volatile macroeconomic environment, which we don't control, so we will execute against the things that are within our control, all of those positive benefits that I listed out to you just a second ago, and look to drive towards the top end of that range, but hedging given the environment that we're in.

Jake Bartlett: Great. Thanks a lot.

Jake Rowland Bartlett: Great. Thanks a lot. I'll pass it on and jump back.

Jake Bartlett: I'll pass it on and jump back. Thanks.

Michael Tamas: Thanks, Jake.

Speaker Change: Great. Thanks a lot. I'll pass it on and jump back. Thanks.

Michael Tamas: Our next question comes from Michael Thomas with Oppenheimer. Please proceed with your question.

Operator: Our next question comes from Michael Tamas with Oppenheimer. Please proceed with your question.

Jake Rowland Bartlett: Thanks Jake.

Michael A. Tamas: Hi, sorry about that. Can you guys hear me? Yes, we can.

Speaker Change: Our next question comes from Michael Tamas with Oppenheimer. Please proceed with your question.

Michael Tamas: Hi, sorry about that. Can you guys hear me? Yes, we can. Okay, perfect.

Michael A. Tamas: Okay, perfect. Welcome back. Thanks. And sorry if I missed this, but can you share a little bit more about the test of the two to $10 menu? I mean, did it drive incremental traffic in the test? And I think you mentioned the $10 price point and something about the mid-teens mix. So was that specific to the $10 price point within that menu? Or were you saying overall about that new menu? And that's the first part. Thanks.

Michael Tamas: I'll come back. Thanks. And sorry if I missed the surface edit, but can you share a little bit more about the test of the $2 to $10 menu? I mean, did it drive incremental traffic in the test? Yes, and I think you mentioned the $10 price point and something about mid-teens mix. So was that specific to the $10 price point within that menu, or were you saying overall that that new menu is mixing in mid-teens? That's the first part. Thanks.

Michael A. Tamas: Hi, sorry about that. Can you guys hear me?

Michael A. Tamas: Yes, we can. Okay. Perfect. Welcome back. Thanks. And sorry if I missed a certain bit of it.

Michael A. Tamas: Can you share a little bit more about the test of the $2 to $10 menu? I mean, did it drive incremental traffic?

Speaker Change: In the test, and I think you mentioned the $10 price point and something about mid-teens mix. So was that specific to the $10 price point within that menu, or were you saying overall that that new menu is mixing in mid-teens?

Kelli Valade: Yeah. Great, Michael. Thank you. I'll start with the last thing you said, which is the total mix of the menu 2, 4, 6, 8, 10 is mixing roughly mid-teens with some market way higher, not way higher, some higher than that, but the average has been about that. And then, so the $10 price point has been actually okay, and that's what benefits us. That was certainly important in certain markets like California, as you can imagine.

Speaker Change: And that's the first part, thanks.

Speaker Change: Yeah.

Speaker Change: Great, Michael, thank you. I'll start with the last thing you said, which is the total mix of the menu, 2, 4, 6, 8, 10, is mixing roughly mid-teens with some markets way, way higher, not way higher, some higher than that, but the average has been about that.

Kelli F. Valade: And then, so the $10 price point has been actually okay. That benefits us. That was certainly important in certain markets like California, as you can imagine. But we absolutely did the test, and the reason we moved forward was because we immediately did see a traffic gain in those markets and across all the restaurants that we tested in. So we feel really good about that, and we actually saw, because this was, it stayed margin positive because not only the way the menu was engineered, but those add-on categories really helped us.

Speaker Change: And then, so the $10 price point has been actually okay. That benefits us. That was certainly important in certain markets like California, as you can imagine. But we are absolutely in the test. And the reason we moved forward was because we immediately did see a traffic gain in those markets and across all the restaurants that we tested in.

Kelli Valade: But we are absolutely in the test, and the reason we move forward is because we immediately did see a traffic gain in those markets and across all the restaurants that we tested in. So we were really good about that. We actually saw, because this was, it stayed margin positive, not only the way the menu was engineered, but those add-on categories have really helped us. And the consumers still see that as a benefit and see so many options for us in that category, that it really has performed very well for us.

Speaker Change: So we feel really good about that, and we actually saw, because this was, it stayed margin-positive, because not only the way the menu was engineered, but those add-on categories have really helped us.

Kelli F. Valade: And the consumer still sees that as a benefit and sees so many options from us in that category that it really has performed very well for us. Operators like it, and franchisees are aligned and excited about this offer.

Speaker Change: And the consumer still sees that as a benefit, and sees so many options from us in that category that it really has performed very well for us. Operators like it. Franchisees are aligned and excited about this offer.

Kelli Valade: Outforators like it; French refugees are aligned and excited about this all. Perfect, thanks.

Kelli F. Valade: Perfect, thanks. And then, you know, we've heard from some other restaurants, even, you know, some fast food companies talking about consumers trading down and now eating at home a little bit more. So I'm wondering, you know, are you seeing that at all? Do you think you see that in your data? You know, and if you're not, maybe, why do you think that is, relatively?

Kelli Valade: And then, you know, we've heard from the restaurants, even, you know, some fast food companies talking about consumers trading down and now eating at home a little bit more. So I'm wondering, you know, are you seeing that at all? Do you think you see that in your data, you know, and if you're not, maybe what do you think that is relative to some others?

Speaker Change: Perfect, thanks. And then, you know, we've heard from other restaurants, even, you know, some fast food companies talking about consumers trading down and now eating at home a little bit more. So I'm wondering, you know, are you seeing that at all? Do you think you see that in your data? You know, and if you're not, maybe, why do you think that is relative to some?

Kelli Valade: Thanks. You think it's fair; it's certainly fair. When grocery, when grocery prices, when we are still ahead of where grocery inflation is, we definitely feel like people are probably still saying, I should just cook at home a little bit more often. For us, we can see some change in check. It's indicative of us, maybe a little bit of, I'll order one much beverage or beverage incidences or slightly down quarter to date and year to date, but our add-on, we're doing a lot of in-restraught merchandising. We've done that differently this last year. It's really helped to aid us in that, you know, we talked about how more effective, how much more effective our barbo strategy has been.

Kelli F. Valade: I think it's certainly fair. When grocery prices, when we are still ahead of where grocery inflation is, we definitely feel like people are probably still saying, "I should just cook at home a little bit more often." For us, we can see some change in check that's indicative of us maybe a little bit of, "I'll order one less beverage, or beverage incidences are slightly down quarter to date and year to date.

Speaker Change: and others.

Speaker Change: I think it's a fair, it's certainly fair. When grocery prices, when we are still ahead of where grocery inflation is, we definitely feel like people are probably still saying I should just cook at home a little bit more often. For us,

Speaker Change: We're actually, we can see some change in check that's indicative of us, but maybe a little bit of I'll order one less beverage or beverage incidences are slightly down, quarter to date and year to date, but our add-ons, we're doing a lot of in-restaurant merchandising, we've done that differently this last year, that's really helped to aid us in that, you know, we talked about how more effective, how much more effective our barbeau strategy's been, so we're really proud of the things we've done in-restaurant, the things our servers are doing to sell and upsell sides and different things, even if maybe that extra add-on beverage isn't happening or they're having water instead, so it's not like we can't see it, but we feel like we've had good strategies to offset that.

Kelli F. Valade: But our add-ons; we're doing a lot of in-restaurant merchandising. We've done that differently this last year. That's really helped to aid us in that. We talked about how more effective, and how much more effective our barbell strategy has been. So we're really proud of the things we've done in-restaurant, the things our servers are doing to sell and upsell sides and different things, even if maybe that extra add-on beverage isn't happening, or they're having water instead. So it's not like we can't see it, but we feel like we've had good strategies to offset that potential threat.

Kelli Valade: So we're really proud of the things we've done in-restraught, the things our servers are doing to sell and upsell sides and different things, even if maybe that extra add-on, you know, beverages and happening, or they're having water instead. So not like we can't see it, but we feel like we've had good strategies to offset that potential treatment.

Michael A. Tamas: Thank you. I'll hop back in.

Michael Tamas: Thank you.

Nick Yehyeon: I'll hop back in. Thanks, Michael. Our next question comes from Nick Yehyeon, Faton, with Bloodbush Security. Please proceed with your question. Thank you.

Speaker Change: Potential trade-down.

Speaker Change: Thank you. I'll hop back in.

Operator: Our next question comes from Nick Seton with Woodbush Securities. Please proceed with your question.

Michael: Thanks, Michael.

Speaker Change: Our next question comes from Nick Seton with Woodbush Security. Please proceed with your question.

Nick Seton: Thank you. I want to focus a little bit more on Kiki's. You know, I mean, I think you guys had some menu changes at the end of last year, along with some of the Florida..., you know, weakness that had resulted in, you know, the negative comps, if I'm not mistaken. You know, I think we'll anniversary some of that starting in Q3. So how should we think about the central sales growth trajectory at Kiki's in the second half?

Nick Yehyeon: I want to focus a little bit more on Keke's. I mean, I think you guys have some many changes at the end of last year, along with some of the Florida, you know, resulted in, you know, the negative comps, if I'm not mistaken. You know, I think we anniversary some of that, starting in Q3. So how should we think about the sensor cells of growth trajectory at Keke's into, you know, in the second half? Yeah, I think that's a great, that's fair, great question, Nick. And I think what you're absolutely right. So you started with the gaps in Florida.

Nick Seton: Thank you. I want to focus a little bit more on Kiki's. You know, I mean, I think you guys had some menu changes at the end of last year, along with some of the Florida

Speaker Change: You know, weakness that had resulted in, you know, the negative comps, if I'm not mistaken. You know, I think we anniversary some of that starting in Q3. So, how should we think about the central sales growth trajectory?

Kelli F. Valade: Yeah, I think that's a great, fair, great question, Nick. And I think you're absolutely right.

Speaker Change: Add Kiki's in the second half.

Kelli F. Valade: So you started with gaps in Florida; it's a really different environment in Florida. It's challenging, the industry has been negative three quarters, family dining has been negative four quarters, and so it's just been a tough environment. And we've seen Kiki's gaining, cutting that gap in half as of late.

Speaker Change: Yeah, I think that's a great, that's a fair, great question, Nick, and I think what, you're absolutely right. So you started with gaps in Florida. It is a really different environment in Florida. It's challenging. The industry has been negative three-quarters. Family dining's been negative four-quarters, and so it's just been a tough environment, and we've seen Kiki's gaming cutting that gap in half as of late. So it's definitely, there's definitely some challenges that makes it in, in Orlando where we have big presence even harder.

Kelli Valade: It is a really different environment in Florida. It's challenging. The industry has been negative three-quarters. Family dining has been negative four quarters. And so it's just been a tough environment. And we've seen Keke's gaining, cutting that gap in half as of late. So it's definitely, there's definitely some challenges that makes it in Orlando where we have big presence even harder. The things that we are excited about, we've opened, as we've mentioned in the scripts, two restaurants outside that are company-owned restaurants. The new restaurants that are opening are significantly higher volumes than the system average. So that's encouraging.

Kelli F. Valade: So it's definitely, there are definitely some challenges that make it in Orlando, where we have a big presence, even harder. The things that we are excited about, we've opened, as we've mentioned in the scripts, two restaurants outside that are company-owned restaurants. The new restaurants that are opening have significantly higher volumes than the system average, so that's encouraging. And these are places that nobody really knows about us, and the team's just done an outstanding job there.

Speaker Change: The things that we are excited about, we've opened, as we've mentioned in the scripts, two restaurants outside that are company-owned restaurants. The new restaurants that are opening have significantly higher volumes than the system average, so that's encouraging, and these are places that nobody really knows of us, and the team's just done an outstanding job there. The remodel of the Dr. Phillips location in Orlando, I was just there, is absolutely gorgeous, and we're incredibly encouraged by those results. The other things we've talked about, that remodel potential is big for us.

Kelli Valade: And these are places that nobody really knows of us, and the team's just done an outstanding job there. The remodel of the Dr. Philips location in Orlando, I was just there, is absolutely gorgeous, and we're incredibly encouraged by those results. The other things we've talked about, that remodel potential is big for us. We're entering California and Texas this year and have some really exciting growth plans beyond that even. But we're excited about the potential they have still to add tadeos, remodel programs. They've had new food offerings, kids meal upgrades, and improvements that they've made. And just lots of really good work that's gone on.

Speaker Change: We're entering California and Texas this year and have some really exciting growth plans.

Kelli F. Valade: The remodel of the Dr. Phillips location in Orlando, I was just there, is absolutely gorgeous, and we're incredibly encouraged by those results. So, lots of really good work that's gone on. Alcohol is in about 70% of the locations as of right now, and that's just getting started, really, with some great new sangrias and mimosas. So, there's lots to be excited about. It's tough, there are some just, there's just tough comps in that market.

Speaker Change: Kids Meal upgrades and improvements that they've made, and just lots of really good work that's gone on. Alcohol is in about 70% of the locations as of right now, and that's just getting started, really, with some great new sangrias and mimosas.

Kelli Valade: Alcohol is in about 70% of the locations as of right now. So that's just getting started, really, with some great sangrias and mimosas. So there's lots to be excited about. There's just tough concerns in that work.

Speaker Change: There's lots to be excited about. There's just tough comps in that market.

Kelli Valade: Thank you. And the entrance to the Texas and California is company-owned locations are franchisees starting to build themselves. Yeah, those are franchises. We'll go. We have franchise partners that are actually Denny franchisees excited about California and Texas, and Texas will actually be company and franchise. So we have some excitement building for sure. Got it.

Kelli F. Valade: And the entry into Texas and California as company-owned locations, or are franchisees starting to build themselves? Yeah, those are.

Speaker Change: And the entry into Texas and California as company-owned locations, or are franchisees starting to build themselves?

Kelli F. Valade: Yeah, those are franchises. We'll go, we have franchise partners that are actually Denny's franchisees excited about California and Texas. And Texas will actually be a company and franchise, so we have some excitement building for sure.

Speaker Change: Yeah, those are franchise. We'll go, we have franchise partners that are actually Denny's franchisees excited about California and Texas. And Texas will actually be company and franchise. So we have some excitement building for sure.

Nick Seton: Got it. And then just kind of a, you know, overall question about the competitive environment. Obviously, QSR is getting even more competitive, you know, casual dining, even more competitive. As we head into this second half, is the sort of two to 10 menu enough, do you think? Or is there sort of maybe another, I guess? Are we going to see it necessary to be even more aggressive than that going forward? Yeah, I think that's a fair question.

Kelli Valade: And then just kind of a, you know, overall question on the competitive environment. Obviously, QSRs are getting even more competitive; you know, casual dining, even more competitive. As we head into the second half, is the sort of 2 to 10 menu enough, do you think, or is there sort of maybe another. Are we going to see it necessary to be even more aggressive than that going forward? Yeah, I think that's a fair question. With there's no doubt it's kind of a value war out there with everybody just racing to get to the next, you know, just the next offering that might really ignite some new customer trial and get them from grocery, if you will.

Speaker Change: Got it. And then just kind of a, you know, overall question around the competitive environment. Obviously, QSR is getting even more competitive, you know, casual dining even more competitive.

Speaker Change: As we head into this second half, is the sort of 2 to 10 menu enough, do you think, or is there sort of maybe another, I guess, are we going to see it necessary to be even more aggressive than that going forward?

Kelli F. Valade: Yeah, I think that's a fair question. There's no doubt it's kind of a value war out there with everybody just racing to get to the next, you know, just the next offering that might really ignite some new customer trials and get them from the grocery store, if you will. I think for us, 2468 by far was, again, it's true equity for us. People know the Denny's brand for that offering. And so when we looked at consumer research, what we learned from the consumer, even before going to an in-market restaurant, it matched.

Speaker Change: Yeah, I think that's a fair question. There's no doubt it's kind of a value war out there with everybody just racing to get to the next, you know, just the next offering that might really ignite some new customer trial and get them from grocery, if you will. I think for us, 2468 by far was, again, it's a true equity for us. People know the Denny's brand for that offering.

Kelli Valade: I think for us 2, 4, 6, 8 by far was again, it's a true equity for us. People know the Denny brand for that offering. And so when we looked at consumer research, what we learned from the consumer, even before going to an in market to those in market restaurants, it matched. It really said, "yeah, this is unique and different." We do think this could be the value platform that signifies the strength we have always had in value, but that we now have an everyday value platform. I think the other thing we've had original grand plan was also something that was really strong for us.

Kelli F. Valade: It really said, yeah, this is unique and different. We do think this could be the value platform that signifies the strength we have always had in values but that we now have an everyday value platform. I think the other thing we've had, the original Grand Slam, was also something that was really strong for us. So we've got some, we have a pantry, we have ideas in the pantry that could still play a big role for us if, in fact, 2468 does not deliver the way we think it will. But every indication says this is a strong traffic driver for us. Thank you very much. Our next question comes from Brian Mullan.

Speaker Change: The strength we have always had in value, but that we now have an everyday value platform.

Kelli Valade: So we've got some; we have pantry, we have ideas on the pantry that still could play a big role for us. If, in fact, 2, 4, 6, 8 does not deliver the way we think it will, but every indication says this is a strong traffic driver for us. Thank you very much.

Speaker Change: I think the other thing, we've had original Grand Slam was also something that was really strong for us. So we've got some, we have pantry, we have ideas on the pantry that still could play a big role for us if in fact 2468 does not deliver the way we think it will, but every indication says this is a strong traffic driver for us.

Brian Mullan: Our next question comes from Brian Malayne with Piper Sammler. Please proceed with your question.

Operator: Our next question comes from Brian Mullan with Piper Sandler. Please proceed with your question.

Speaker Change: Thank you very much.

Speaker Change: Mm-hmm.

Speaker Change: Our next question comes from Brian Mullan with Piper Sandler. Please proceed with your question.

Ali Arfstrom: Hi, this is Ali Arfström, on for Brian Malayne. Thank you for taking the question. Just wanted to ask about the potential remodeled for the key keys fleet in Florida and curious if there's any update on the timeline or cost pre-unit perspective. Look, great question. So we don't yet. So we've got into that. We're under. We've started with looking at the next round that we could look at. It's really early for that first location. It's about six weeks in right now. We also have to optimize the cost, right? So we really have to look at and scale this a little bit more before we're able to say this is a definitive cost of that remodel.

Allie Arfstrom: Hi, this is Allie Arfstrom on for Brian Mullan. Thank you for taking the question. Just wanted to ask about the potential remodels for the Kikis fleet in Florida and curious if there's any update on a timeline or cost per unit perspective.

Brian Hugh Mullan: That's a great question. So we don't yet. So we've got into that. We started with looking at the next round that we could look at. It's really early for that first location. It's about six weeks in right now.

Speaker Change: That's a great question. So we don't yet. So we've got into that. We're under, we've started with

Speaker Change: Looking at the next round that we could look at, it's really early for that first location.

Kelli F. Valade: We also have to optimize the cost, right? So we really have to look at and scale this a little bit more before we're able to say this is the definitive cost of that remodel and, therefore, the return that we expect to get, the sales list, and the traffic list we need. So we need just more test units to be able to scale that and then be able to specifically talk to that. The other piece of the puzzle there is, is this the brand that just turned 80?

Speaker Change: [inaudible]

Kelli Valade: And therefore, the return that we expect to get the sales list and traffic list we need. So we need just more test units to be able to scale that and then be able to specifically talk to that. Speak to that. The other piece of the puzzle there is, is this: this is a brand that just turned 18 years old, made it to adulthood finally. And it has not had a remodel program up until this point. So whatever we do should be a significant improvement. You can see the pictures in our investor deck of a preimposed of what we have been doing and has the likely ability to be a very material improvement.

Kelli F. Valade: The other piece of the puzzle there is that this is a brand that just turned 18 years old, has finally made it to adulthood, and has not had a remodel program up until this point. So whatever we do should be a significant improvement. You can see the pictures in our investor deck of pre and post of what we have been doing. It has the likely ability to be a very material improvement. We do need more test units, though. There's no doubt about that. But we are really, really pleased with how we got off the ground with this.

Speaker Change: The other piece of the puzzle there is, is this the brand that just turned 18 years old?

Speaker Change: It made it to adulthood, finally, and it has not had a remodeled program up until this point. So whatever we do should be a significant improvement. You can see the pictures in our investor deck of pre and post of what we have been doing. It has the likely ability to be a very material improvement. We do need more test units, though. There is no doubt about it, but we are really, really pleased with how we got out of the ground with this.

Kelli Valade: We do need more test units, though. There's no doubt about it. But we are really, really pleased with how we got out of the ground with this.

Todd Brooks: Thank you. Our next question comes from Todd Brooks. Put the benchmark company, please, to see with your question. Thanks for squeezing me in again, just two quick ones. One, you didn't call California performance out specifically, and just any card you give us on the Sims 4 sales performance of that market and the complexion of how you get there. If it's further down traffic than the rest of the chain, but you've made it back with more aggressive menu pricing to offset the fast actor or any thoughts there, and then I have one follow-up.

Operator: Our next question comes from Todd Brooks with the Benchmark Company. Please proceed with your question.

Speaker Change: Our next question comes from Todd Brooks with the Benchmark Company. Please proceed with your question.

Todd Morrison Brooks: Thanks for squeezing me in again. Just two quick ones. One, you didn't call California Performance out specifically. And just any color you give us on the Sam's Store sales performance in that market and the complexion of how you get there if it's further down the traffic than the rest of the chain, but you've made it back with more aggressive menu pricing to offset the fast actor or any thoughts there. And I have one follow-up question.

Todd Morrison Brooks: Hey, thanks for squeezing me in again. Just two quick ones. One, you didn't call California Performance out specifically.

Todd Morrison Brooks: And just if any color you could give us on the Sam's Store sales performance of that market and the complexion of

Todd Morrison Brooks: How you get there, if it's further down traffic than the rest of the chain, but you've made it back with more aggressive menu pricing to offset the fast actor, or any thoughts there, and then I have one follow-up.

Robert Verostek: Yes, on this is Robert, so a really good question. So I would say that California, if we were down 0.6 for the quarter, they're slightly below that, little slightly worse. When you look at Texas, in California though, we did steal share from QSR, and we do attribute that a little bit to the AB 1228 and how we're performing in that. In fact, the gap that we were experiencing to overall QSR we've cut in half in California specifically. When you look at Texas, I'll give you the smile stage. That's where half of our restaurants are. Texas is about in line with performance.

Robert P. Verostek: Yes, this is Robert. So a really good question. So if we were down 0.6 for the quarter, they're slightly below that, a little slightly worse. When you look at Texas, in California, though, we did steal a share from QSR. And we do attribute that a little bit to AB 1228 and how we're performing in that.

Todd Morrison Brooks: Yes, this is Robert. So a really good question. So I would say that California, if we were down 0.6 for the quarter, they're slightly below that, a little slightly worse.

Todd Morrison Brooks: When you look at Texas...

Todd Morrison Brooks: In California, though, we did steal a share from QSR, and we do attribute that a little bit to the AB 1228 and how we're performing in that. In fact, the gap that we were experiencing to overall QSR, we've cut in half in California specifically.

Robert P. Verostek: In fact, the gap that we were experiencing with overall QSR, we've cut in half in California specifically. When you look at Texas, I'll give you the smile state. That's where half of our restaurants are.

Todd Morrison Brooks: When you look at Texas, I'll give you the smile state, that's where half of our restaurants are. Texas is about in line with performance.

Robert P. Verostek: Texas is about in line with performance. Arizona is actually outpacing that negative 0.6. They were actually positive in the quarter. And then Kelli spoke at length with regard to Florida. It is our worst performing state right now. So that gives you a sense of the happy states for us.

Robert Verostek: Arizona is actually outpacing that negative 0.6. They were actually positive in the quarter.

Todd Morrison Brooks: Arizona is actually outpacing that negative .6. They were actually positive in the quarter. And then Kelli spoke at length with regard to Florida. It is our worst-performing state right now. So that gives you a sense of the smile states for us.

Robert Verostek: And then Kelly spoke at length with regard to Florida. It is our worst performing state right now. So that gives you a sense of the smile stage for us. And Todd, I'll add one more thing to California: the kind of core of that question on how California is performing. I will tell you that we had a significant amount of the test restaurants for 2.468 in California. And those outperformed the other markets that we were testing that offer in. So we're really excited about that. The last thing I'll say about that market is San Diego and LA.

Kelli F. Valade: And Todd, I'll add one more thing to California, the kind of core of that question about how California is performing. I will tell you that we have a significant number of test restaurants for 2468 in California, and those outperformed the other markets that we're testing that offer in.

Todd Morrison Brooks: And Todd, I'll add one more thing to the California, the kind of core of that question on how California is performing. I will tell you that we have a significant amount of the test restaurants for 2468 in California, and those outperformed the other markets that we're testing that offer in.

Kelli F. Valade: So we're really excited about that. The last thing I'll say about that market is San Diego and LA. We talked about those co-ops coming back online; those two markets, LA and San Diego, which are a pretty big percentage of our restaurants in California, are just now getting started. So we expect there to be even more benefit later this quarter for those co-ops in California.

Robert Verostek: So we talked about those co-ops coming back online. Those two markets, LA and San Diego, which are a pretty big percentage of our restaurants in California, are just now getting started. So we expect there to be even more benefit later on this quarter for those co-op in California, especially. That's great. Thanks. And then my other one's just a key key follow up. So you mentioned 10 generally franchisees opening in California. It sounds like a company slash franchisee split with the first Texas units.

Todd Morrison Brooks: So we're really excited about that. The last thing I'll say about that market is San Diego and L.A., so we talked about those co-ops coming back online, those two markets, L.A. and San Diego, which are a pretty big percentage of our restaurants in California, are just now getting started. So we expect there to be even more benefit later on this quarter for those co-ops in California especially.

Todd Morrison Brooks: Thanks. And then my other one's just Kiki's follow up.

Kelli F. Valade: So you mentioned tangentially franchisees opening in California. It sounds like a company-slash-franchisee split with the first Texas units.

Speaker Change: That's great, thanks. And then my other one is just a Kiki follow-up, so...

Speaker Change: You mentioned tangentially franchisees opening in California. It sounds like a company-slash-franchisee split with

Kelli F. Valade: It wouldn't be a call if I didn't ask you about an update on the development pipeline for Kiki's. I know that some franchisees were waiting to see the Tennessee store performance. It sounds like, from everything you said, Kelli, those stores are outstripping the brand average in Florida.

Kelli Valade: It wouldn't be a call if I didn't ask you about an update to the development pipeline for key keys. I know that some franchisees were waiting to see the Tennessee store performance. It sounds like, from everything you said, Kelly, those stores are outstripping the brand average in Florida. So just any update we can get on that pipeline would be great. Thanks. Of course, sure. There's really no material change, but a lot of a lot of really great conversations, a lot of tours to that restaurant, those two restaurants now in Tennessee. And they are overperforming. There are two million plus versus the one nine system average.

Speaker Change: The first Texas units. It wouldn't be a call if I didn't ask you about an update to the development pipeline for Kiki's. I know that some franchisees were waiting to see the Tennessee store performance. It sounds like from everything you said, Kelli, it's

Kelli F. Valade: So just any update we can get on that pipeline would be great. Thanks. Of course. It's fine. There's really no material change, but a lot of really great conversations, a lot of tours to that restaurant, those two restaurants now in Tennessee, and they are overperforming. There are two million plus versus the one nine system average. So we're continuing to be really excited and then working on that pipeline. We're absolutely working on the pipeline. [inaudible]

Speaker Change: Those stores are outstripping the brand average in Florida, so just any update we can get on that pipeline would be great.

Speaker Change: Thanks.

Kelli: Of course, sure. There's really no material change, but a lot of really great conversations, a lot of tours to that restaurant, those two restaurants now in Tennessee, and they are overperforming. They're 2 million plus.

Kelli Valade: So we're continuing to just be really excited and then working on that pipeline. We're absolutely working on the pipeline. One. Okay, great. Thank you both.

Kelli: [inaudible]

Todd Morrison Brooks: Thank you, Todd.

Todd Brooks: Thank you, Todd.

Kelli: We're absolutely working on the pipeline.

Speaker Change: Okay, great. Thank you both.

Jake Bartlett: Our next question comes from Jake Bartlett, with Truest Security. Please proceed with your question. Great. Thanks for taking the follow-up. You know, my name is back to my other question. And it was the improvement in July from June. Is that in tandem with what you saw from the market? Or is it, you know, Denny's specific, your performance expanding versus the market? And if that's the case, just remind us what drove that you think from June to July.

Operator: Our next question comes from Jake Bartlett with Truist Securities. Please proceed with your question.

Todd Morrison Brooks: Thank you, Todd.

Speaker Change: Our next question comes from Jake Bartlett with Truist Securities. Please proceed with your question.

Jake Rowland Bartlett: Great, thanks for taking the follow-up. You know, my name is back to my other question, and that was the improvement in July from June. Is that in tandem with what you saw from the market, or is Denny's specific, your outperformance expanding versus the market? And if that's the case, just remind us what drove that, you think, from June to July.

Jake Rowland Bartlett: Great, thanks for taking the follow-up. You know, my name is back to my other question, and it was the improvement in July from June . Is that in tandem with what you saw from the market?

Speaker Change: or is it Denny's specific, your outperformance expanding versus the market? And if that's the case, just remind us what drove that, you think, from June to July .

Robert Verostek: So, first part of that question, Jake, is when we look at the market, not only did we improve upon our trends, but we are actually outpacing the BBI family index in a very material way. So, that is also expanded. So, it's not only our change in trend, but broadly an even further outperformance to the industry with regard to that. I do think, too, Jake, to the question. I think there's a little bit again. We've mentioned those co-op dollars take a minute to deploy the media; see the reaction to that. But I think there's a little bit there in terms of that media started; some of that extra and incremental media started in April for many markets.

Robert P. Verostek: So the first part of that question, Jake, is when we look at the market, not only did we improve upon our trends, but we are actually outpacing the BBI family index in a very material way. So that has also expanded. So it's not only our change in trend, but broadly a better and even further out performance to the industry with regard to that. I do think

Speaker Change: So I

Speaker Change: First part of that question, Jake, is when we look at the market, not only did we improve upon our trend, but we are actually outpacing the DBI Family Index in a very material way. So that is also expanded. So it's not only our change in trend, but broadly an even further outperformance to the industry.

Kelli F. Valade: I do think, too, Jake, to the question, I think there's a little bit, again, we've mentioned that co-op dollars take a minute to deploy the media, see the reaction to that, but I think there's a little bit there in terms of that media starting, some of that extra and incremental media started in April for many markets, so I think we got a little bit there. We got a few bands of burritos that were added; California went first, so I think that's a little bit of what's aiding us in the comps in July, and certainly against the industry. We're pretty excited about that.

Speaker Change: [inaudible]

Robert Verostek: I think we got a little bit there. We got a few band of burritos that were added. California went first. So, I think that's a little bit of what's aiding us in the comps in July.

Robert Verostek: And certainly against the industry, we're pretty excited about that. Right.

Kelli F. Valade: And with Banda, you have good experience with it now. What kind of a sales lift do you see when you add a Banda option to a store?

Robert Verostek: And what's band, can you, you have good experience with it now? How is that, you know, what kind of a sales lift do you see when you add a band option in the store? Yeah, the good is we see it to be and expected to be similar in terms of the dollars that it contributes as to the other virtual brands that we have. And because it's still ramping up and it's early in many locations, both 300 plus that are already in. And we have many more to go. In fact, we have a lot that'll be going in August.

Banda: And with Banda, you have good experience with it now, how is that, what kind of a sales lift do you see when you add a Banda option in the store?

Kelli F. Valade: Yeah. The good news is that we see it to be and expect it to be similar in terms of the dollars that it contributes as compared to the other virtual brands that we have. And because it's still ramping up, and it's early in many locations, those 300 plus that are already in, and we have many more to go. In fact, we have a lot that'll be going in August, and we're excited about that. The ease of operations and execution of it's been phenomenal. We've checked with operators and franchisees. So we're pretty bullish on it delivering the same as our other two virtual brands, and it's got really relevant offerings, especially on the West Coast.

Speaker Change: Yeah, the good news, we see it to be and expect it to be similar in terms of the dollars that it contributes as to the other virtual brands that we have, and because it's still ramping up, and it's early in many locations, those 300 plus that are already in, and we have many more to go. In fact, we have a lot that'll be going in August , and we're excited about that. The ease of operations and execution of it's been phenomenal. We've checked

Jake Rowland Bartlett: Got it. And then the last question is on the G&A.

Robert Verostek: And we're excited about that. The ease of operations and execution of it's been phenomenal. We've checked with operators in France already. So, we're pretty bullish on it delivering the same as our other two virtual brands.

Speaker Change: with Operators & Franchisees. So we're pretty bullish on it delivering the same as our other two virtual brands. And it's got really relevant offerings, especially on the West Coast.

Robert Verostek: And it's got really relevant offerings, especially on the West Coast. Got it.

Robert P. Verostek: It was lowered a bit, but that was really, I think, just the stock-based comp side of it. So, you know, in terms of kind of tightening the belt on G&A, do you think there's opportunity there, or are you perhaps kind of holding off just because you view the industry slowdown as temporary? Is this a sign that you see light at the end of the tunnel for industry trends, or maybe there's just not enough fat to cut it?

Robert Verostek: And then the last question is on the GNA. It was lowered a bit, but that was really, I think, just the sock-based comp side of it. So, in terms of kind of tightening the belt on GNA, is using this opportunity there or are you perhaps kind of holding off just because you view the industry slowdown the temporary?

Speaker Change: Got it. And then the last question is on the GNA. It was lowered a bit, but that was really, I think, just the stock-based comp.

Speaker Change: So, you know, in terms of kind of tightening the belt on DNA.

Speaker Change: Do you think there's opportunity there or are you perhaps kind of holding off just because you view the industry slowdown as temporary? Is this a sign that you see light at the end of the tunnel for the industry trends or maybe there's just not any fat to cut at this point?

Robert Verostek: Is this an exciting sign that you see by the end of the tunnel for the industry trends, or maybe there's just not any factor cut at this point? Yeah, Jacob, that's a fair question with regard to that. To be very transparent, we did invest to grow the Kiki's brand; that is some of what we have experienced over the last couple of quarters. In the last couple of years, frankly, and you can start to see that come to fruition now. That guidance of 12 to 16 that's been maintained all year long. The pipeline is continuing to grow.

Robert P. Verostek: Yeah, Jacob, that's a fair question. With regard to that, we, to be very transparent, we did invest in growing the Kiki's brand, and that is some of what we have experienced over the last couple of quarters and last couple of years, frankly, and you can start to see that come to fruition. Now that guidance of 12 to 16 that's been maintained all year long, the pipeline is continuing to grow. So we're really pleased with regard to what we're experiencing at Kiki's.

Speaker Change: Yeah, Jacob, that's a fair question with regard to that. To be very transparent, we did invest to grow the Kikis brand, and that is some of what we have experienced over the last couple of quarters and last couple of years, frankly. And you can start to see that come to fruition now, that guidance of 12 to 16, that's been maintained all year long. The pipeline is continuing to grow. So we're really pleased with regard to what we're experiencing out of Kikis. We are very diligent with regard to our GNA spending. We know that that is part of the story and work to be very conservative with the balance.

Robert P. Verostek: We are very diligent with regard to our GNA spending. We know that that is part of the story and work to be very conservative with the balance of the portfolio, and the balance of the Denny's brand. But investing in it is clearly investing in our growth.

Robert Verostek: So, we're really pleased with regard to what we're experiencing out of Kiki's. We are very diligent with regard to our GNA spending. We know that that is part of the story and work to be very conservative with the balance of the portfolio, balance of the Denny's brand. Thank you very much. I appreciate it.

Speaker Change: [inaudible]

Jake Rowland Bartlett: Great. Thank you very much. I appreciate it.

Kelli Valade: Thanks, Jake.

Kelli F. Valade: And thank you, everyone. I'd like to thank you for joining today's call. We look forward to our next conference call in October when we will discuss our third quarter 2024 results. Thank you, and have a great evening.

Operator: And thank you, everyone. I'd like to thank you for joining today's call. We look forward to our next conference call in October when we will discuss our third quarter 2024 results.

Speaker Change: Great. Thank you very much. I appreciate it.

Speaker Change: Thanks, Jake. And thank you, everyone. I'd like to thank you for joining today's call. We look forward to our next conference call in October when we will discuss our third quarter 2024 results. Thank you and have a great evening.

Thank you and have a great evening. This includes today's conference. You may disconnect your lines at this time. And we thank you.

Operator: This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.

Speaker Change: This concludes today's conference. You may disconnect your lines at this time and we thank you for your participation.