Sweetgreen (SG) 29 Feb 242023 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to Sweetgreen, Inc. Fourth Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, today's call is being recorded. I will now hand today's call over to Rebecca Nounou, VP, Head of Investor Relations. Please go ahead.

Thank you, and good afternoon, everyone.

are: Reback, Co-Founder Chief today Officer; Chief me Mitch and Financial with Jonathan and Neman, Executive Here Officer.

Before couple we of a reminders. begin, we have

investor.sweetgreen.com. Our release is on website earnings available at our

comments During of may this materially expressed of a those implied from will uncertainties. various call, be risks differ a nature. and Actual we forward-looking results as result or making

filing. Factors assume For statements. These today, on including the filings, the company's more information SEC based report are about statements and our to annual some titled forward-looking of update in Risk on these Form of forward-looking latest or revise XX-K risks, no please review as publicly our section information obligation we

Additionally, to nearest this in reconciliation the addition prepared to website. With financial it's we which be my performance certain U.S. not pleasure of our measures, off. accordance measures afternoon's financial are press over to to can GAAP. GAAP with turn these of IR will in in the available items A on be that, a discussing Jonathan non-GAAP found to and kick things substitute for measure release call

well and we Rebecca, to a people my why Nathaniel passion with to In started afternoon, real journey food you, Thank delicious with restaurants is XXX in everyone. started to I Nicolas. serving and brand co-founders, began Sweetgreen good D.C. restaurant category-defining the communities. our D.C., XXXX, goal the now has My connect XX as meals build What in country local to as of as across Washington, a single states

that Sweetpass the Kitchen. for will Menu that gives were believe profitability. In me an innovative come, dining the with of drives the for business fast-casual for momentum year digital benefit own via $XXX We sales our margin in Infinite full building million, revenue $XX we growth. remaining defining $X.X fiscal XX% coming and while a representing On over to same year with fiscal acutely-focused as represented category channels. period the are million, basis, for adjusted enduring and year years increasing aggressive on XX.X%. XXXX, both over loss growth reported the XX% Restaurant-level Total and with that our year was our optimism representing Better of total digital the creating We initiatives year-over-year sales a us such XXXX. sales ahead. million EBITDA of we was and improvement We XX% ended You Innovation, those of year

EBITDA accelerating reinvest business profitability. For us XXXX, milestone to the This will adjusted our into growth. we of goal the are allow guiding profitability with

building our has category-defining on focus and value that remains brand tremendous members for our a Our customers, shareholders. team

great amplify guests to aided are by and restaurants. Our we customer building things to drive continue and our these in both by X, one, by experiences; technology, well, creating already strategic do of we priorities operating and drive traffic, expand continue to strong quite our If expansion. best-in-class our building brand, products brand our and margin simple: widen guest continue great should connection reach, customer turn

we XXXX, current tracking greater our than we Tampa XXX financial towards and Rhode In and markets, footprint with Island, significantly has pleased brand our targets. our X entered of Our restaurants. reach is class how new XXXX physical Milwaukee, are

code our has weeks. of of many reinforce opened Openings in Washington. Sweetgreen's a been this top our The our Seattle [ these far innovation. So is restaurants restaurants, year, our X resonates like across including suburb in recent the Lake, urban performing ] we've culture that first of Totem confidence country. in with brand Seattle, line

our customer to as experience, restaurants. fourth a to Infinite second We Kitchen in development, order in team many our operating model, throughput, accuracy, turnover. Kitchen In better portioning higher opened The drive lower and introducing new and Beach. have ahead Huntington consistency member market to as online been the chain of substantially Infinite such and consistently culinary both we the our quarter, benefits well continues supply technology better in as deliver

In at locations, higher respective XX% than benefits, ticket the both to also their than average seen more these addition markets. we've

we to seeing result, the are Infinite a projections. our deliver As internal of well margins continuing Kitchen ahead

in We are built the industry have we proud that Infinite automation Kitchen. leader with the restaurant

with We a growth. margin shareholders. operating current we sales are and drive with level Infinite restaurant and clear will unlock X-wall drive for sales the revenue restaurant-level initiatives path positive model, accretive clear, and returns our confident to that have our be to restaurants to Kitchen growth on remain traffic-driving it will be To believe expansion and XX%-plus margins. We increasing same-store we margins focused

impact to multifaceted program, while continuing traffic. culinary seasonality improving traffic great throughput, advertising as our to maintaining includes leverage. spend approach XXXX, rewards culinary innovation well as running on innovation, as activate drive reach, Our We in customer focusing positively increasing driving see to key and restaurants and expand accelerating lever menu G&A a

real as October menu of been On broadening Herb Roasted as Glazed such launched has connecting proteins remaining While Salmon. featuring we ethos known healthier new while our people Plates, salad historically XX, by Miso to communities to food. a committed we're Sweetgreen our company, Chicken building and Protein

While early, exceeded internal Plates have expectations.

was to person" Plates a wide a be "You person to a Our Sweetgreen to the salad be with have category designed tagline, appeal audience. don't to

slow-roasted in first test market points to the launched particularly we've strides have at grass-finished finished menu of tests we've Plates out menu marinated If markets particular, and and Boston. our and improving Plates. data has and growth. in is slow-roasted will periods, our in quarters On We few capture Texas last appeal. sales still frontline are look days we Steak, with to demand, of how dinner XX Garlic steak, insights grow onion into in brand made Protein grass-fed identified have process, our our drive early additional translated the seen including State and throughput, later In We've we the with road great additional with such it X, as the this introducing multiyear over-indexing labor are cut marrying garlic we a with after passes Southeast. Caramelized daypart pleased pleased caramelized peak February Plates, broaden tri-tip areas to to over opportunity operational deployment. customer the There strides made we with map. I'm roll innovation, a this innovation tender year.

decision to years. time Our team recent stability in highest average tenure improved translating margins. it's coupled coaches Head Head to is into Coach been with restaurants improve operations adjust and schedule spend continues the both and floor on Coach to and for in the is our more This, our members

than growth, further quarter member driving her for year-over-year. restaurant-level growth an our our margins $X Sweetgreen's accomplished leadership brands. a embark and of sales Officer, take tipping to moment want skill Rossann as years we work retail experience global the hour. I iconic of executive, Rossann's Additionally, an over forward mission bringing growth incredible nearly and set quarter, on expanded partnering in our significantly I track fourth She our Rossann bettering international to is stream. In launching welcome wages of the supplemented will our delivered to our consecutive last phase sustainable year bringing next communities with XXth XX% serve. to we of look operations team leading businesses. the Chief of team we Operating passion new by brings record Williams. XX more a global has Rossann proven

building commitment our Protein Infinite company. category-defining X over powerful now financially, great optimistic are Kitchen transparency. ahead. My just the from several innovation with I'll quality the value it me business unit demonstrate Kitchens to expanding deliver to and our offerings brand the excited launching financials. We improvements expanded have operations, significant including be XXXX for and is you're team, the to for the to our team the continue we Because walk in with excited year continue and our our for examples and had all Plates, made potential menu of What to gratitude our and to unlock stakeholders. achieved we our win-win-win years turn Mitch I of known a to Infinite launching have ahead. And milestones, the customers, who The sustainable economics. coupled when operationally more communities that significant X couldn't members we through and and a to a gets today seeing a

we EBITDA fourth up our profitability adjusted Jonathan, you, everyone. to out sales the quarter good revenue $XXX in as consecutive XX% XXth year-over-year XXXX, towards XX% from and afternoon, the year-over-year, XXXX, strengthen growing million, fourth In set XXXX. for of million was our Thank in of quarter guide growth. Total financial we over model quarter $XXX.X

quarter. the sales momentum sluggish and quarter, This same-store X% benefit a increased mix. X% grew X% menu and a For a from consisted our of October, year-over-year. month benefit each from in traffic prices After the

was Our the fourth fourth than quarter level million. JPY the XXXX. average nearly margin fourth level quarter profit unit profit the volume Restaurant in was from XX.X%, a ago. $X.X quarter was a basis million, double from for XXX the in of more year Restaurant XX quarter point improvement fourth

the was XX.X%. profit year Our level margin for restaurant

fourth X new first including and will Lake, between of anticipate of end restaurants, the we in the In XX we quarter of X XXXX, total earnings we've restaurant a Kitchen. XXX Seattle margins figures, of restaurants to In For quarter XXXX, XX opened release. This X the new the for a restaurant-level refer including a reconciliation at XXXX. GAAP opening suburb. comparable to the opened Totem restaurants year, net XX Infinite contain approximately please new restaurants, restaurants, new

spring. Occupancy half weighted This implementing to we the costs is basis the to half of for unit chicken menu revenue of improvement the price fish fourth reaccelerate second fourth the for Coach with openings Kitchen. of decrease of XXXX. we improvement and quarter, approximately containing improvement both and quarter, Labor-related growth. Food, as $X.X is XX% the $XX.X of fourth openings general XXXX, the in was in primarily schedule expenses of of was significant increases treatment XXX basis $XX.X beverage points and point primarily were XX% of prior-year comparable primarily in in and optimization Our plan Stock-based in administrative XXX XXXX XXXX revenue revenue, from from quarter XXXX. a will for attributable related expenses it be period XX% in XXXX, pre-IPO-related of $XX.X basis In The were stock-based or a the the and in improvement Head or quarter the XXXX. XXX due the General declining This the million compensation XXXX. We decrease compensation began Infinite restaurant anticipate to for mid-$XX from XX% fiscal million XX% mid-teens grants. from a primarily was accounting back expense. to year, point reduction and towards the year costs. due $XX.X down packaging the revenue in the related our million, to in and a million administrative expenses million to range decrease in million period. expense This of were down X% to compared was revenue quarter fourth of XXXX. the

loss quarter loss improvement in year an $XX $X.X was net compensation $X.X the a for in cash and stock-based in $XX.X over and to million the XXXX as was $XX.X discussed, restaurant-level a year by EBITDA, fourth in loss million. fourth the period. $XX $XXX with restaurant-level $XX was the depreciation of increase in the The Adjusted of Our associated described This million as million adjustments, primarily certain general increase loss amortization loss million decrease previously improvement an $XX a loss for to XXXX. other and in million million compared of stock-based previously. a the million same a XXXX an of in due compensation $XX.X profit, quarter, fiscal expense, restaurants. million Adjusted which decrease $X.X administrative We excludes was and with EBITDA a for to profit a partially quarter of representing expenses additional ended increase improvement offset million, of from period a million. prior of net is primarily due improvement $XX.X our year in balance the million

Now our XXXX turning to outlook.

and XX we $XXX to same-store million between anticipate openings; adjusted XXXX, and from restaurant-level million EBITDA net $XXX XX year of XX% the For revenue ranging margins million. X%; following: $X the between growth to fiscal new XX.X%; to restaurant to $XX X% sales million;

the opening of weighted back Our guidance being to restaurant new half on year. based is the pipeline

period of large Additionally, the Kitchen. off-line will we to X adjustment have These into Infinite we restaurants X to be our with some and renovate guidance. this revenue restaurants plan for urban time, built

least accuracy order these benefits, as expect turnover. Based and we revenue to grow $XXX,XXX what well We satisfaction know lower generate in described. between and as second at XXXX to throughput in the and benefits, deliver order as margin Kitchen and including stores previously to customer $XXX,XXX second significantly team on margin improvement points with significant better as provide expect higher significant of well we today, X Infinite member cost

quarter, $XXX approximately million. new X%. first X to loss restaurant $X XX% EBITDA to XX% Revenue million Same-store margins to $XXX X of the openings. adjusted a million anticipate loss growth ranging million. For we level of Restaurant net from $X an of and between sales to

XXXX. sales same-store timing comparable New Our both Easter, guidance for of of reflects which and the not QX, fall shifts did Year's in base

EBITDA durable revenue by coupled profitability. us to up that points impacted efficient and XXXX, start much remain adjusted year financial to strengthened. I the $XX have a X-wall We're come. With with healthy strengthening company in growth that, will I'll improved am adjusted expanded the turn committed EBITDA pleased We're with sales trends basis In sheet this to of guiding back a both as growth. expansion of weather progress operator Q&A. years country, our margins the grew model our to for Additionally, balance believe weather to be the million, we XX%, has first throughout was and we growth capital to normalized, profitability made January balances and XXX by profitability. milestone, XXXX. in nearly call set disciplined we've We building the committed XXXX as our

Brian from the Your of Bittner Instructions] first [Operator question Oppenheimer. with is line

that new beginning being performance testing improvement? strategies was you this about positive Protein rolled slightly kind quarter underlying inform that of continue of item? drive to the the that XXXX, are traffic I you out this traffic And in of driver last negative your so, as the And quarter. after in particularly at if you mix does quarter. know how biggest of The the Was Plates sales steak innovation to Congratulations.

would our was of much. I deposits Brian, say in a quarter, together thank the numbers. fourth X-point small pretty you very about traffic mix both

very continue seen been script, we've us We the in to Protein as new of be alluded great are we of traffic Plates and that's source the and the we happy reception particularly with true in Southeast, markets I think growth will think for to the in in them, a it XXXX.

And points was pretty in up at basis of guidance And those restaurant than in margins basis margins, your margin just more almost the expansion its on XXX the suggests strong, 'XX expansion. midpoint points. XXXX restaurant XXX

how So, 'XX? unpack how really in opportunity we top to a improve in greatest see buckets 'XX can continue obviously continue you do the see momentum the what's happened some in 'XX? of you margin and you maybe you margins drove to year on Can of margins, strong but where this

Thanks, Yes. Brian.

standpoint. see schedule to XXXX improvement of see our strong I a labor much markets. see optimization, model, big would started We from we the to our we of digits in through really think labor. built which I at out quarter. points XXXX there margin in improve profit inflation X continue high improvement One, grow of approximately say where in price and coming is XXXX, sources. continuing a level, first benefit And rolling from into was from the we COGS low gain in coming see They X leverage pressures some new and significantly single and price

Zackfia Sharon William with the of question next is from Your line Blair.

would tell running maybe $XXX,XXX, build days, be I these ask to But you to build And fair that And IK, come new the helpful. well? to a cause that be and $XXX,XXX could your Infinite a cost be guess, the Sweetpass. as of is new of the back on Kitchen it on kind I wanted is about then question retrofit? us would cost where would if assume incremental that, that a to

Sharon. Sure.

build-out the IK down. down to do it see guiding we number expect and restaurant. cost on to some incremental that We scale the as a like I what $XXX,XXX as cost, that So costs we're economies fleet. some come to is continue the $XXX,XXX of engineer as scale this in well new say current to to of for would is current

to over that expect down So come time.

some terms really in the It retrofits to the will be. of invasive have how Here, cost renovations. plus depends has machine of it retrofits,

will modeled that, plus the there we the will restaurant, be -- into more be which it So slightly it on we those into some downtime, depends and really as guide, of than have some our stores. close

demand, We unlocks. will be the real choosing retrofitting, of big some with very be high stores we're throughput stores will

does, to on IK your I what especially capacity of to Does excited those Sweetpass? see we're answer before that urban some so constrained. Anything move that question environments in we where else? And are

me let users curious. started frequent end away. last you signed I ask sign-ups spring, September, when out, I guess, at it ones I I to And just the in most Sweetpass right And brick-and-mortar. your remember actually, you up, who I my I clearly, rolled the Yes. know question. was were implement mean, of think

how I'm So even Or if as go of about Sweetpass benefit you start mix kind you you've to you're curious 'XX? thinking somewhat? just And seen neutralize? that throughout

Yes.

So most of iterative enable capabilities very And that built have technology benefit great I think a good the on not loyalty yet done we've program. like Sweetpass, is seen a lot what program, a loyalty we say, it's to of programs, I'd process. we

simpler, we're the better working and are that transactions. program to on drive optimizations simplifications more the company to actively for for and better something make So of customer it the

a the so had far. largely bad is, business The of impact made. be have the there's news to hasn't good been it lot upside and is, a investments huge So news on our gained

a we this priority is year. look forward us as that so for And big

Markets. Capital Carril of is next question RBC Your from line the Chris with

softer of comp last to a the the over And you mentioned you the saw in detail any the more little also relative what improvement more the some you on terms what think, of sales of year? impact the for Can I XQ? sales seeing the quarter-to-date guide of on course weather months in October. maybe couple a quarter. trends bit of noted provide detail think, or the maybe in you Mitch, So I some provided you following you're improvement earlier following,

So be great. any would detail

by we Thank in say a a October what I strong Chris. is in which began up offset days, January. we was into headed fourth What pick that reported kind really relatively weather us has ended the strong building business a momentum has you, some January December, by great being outlook and steadily of saw normalized. saw and up relatively as days weather been would XXXX. very and as November was we companies, been many has quarter, The to what gave weak sluggish pretty

And from with tracking more that Could your a in markets and how expand line new is here Jonathan, you it. you picture forward? going Got think here bit the the on existing mentioned thinking development performance maybe of in you're then, I markets newer expectations. balance about

Sure.

lot lower a in, historically longer long-term little and had and what's in a we gives our -- optimism historically good places lot of newer some the been we us opened of where bit TAM momentum lot expected today before, markets, think newer -- talked fastest-growing markets, those So recently than our see we're been about a of to confidence we in as had markets terms of our TAM. the seeing is Southeast Texas, of a

we're year, We're markets. be to Seattle. markets, We X Columbus. opening Charlotte, in look new to going new this opening opened open going to and in of terms In we be

opportunity to forward, and So we new so those expect go X much markets of to X similar pretty our densify to just X extend. markets cadence still continue existing markets there's in a and as kind

our lot a like existing. we'd and between balance us, of and runway just new risk So for to

confidence, do in growth each as -- XX% get integrate very can to we that a expect Infinite slowed to similar between better get unit do cadence hopefully, some and Kitchen. we our expect just expand that. you thing our X. One down reacceleration longer pipeline -- to term, intentionally very uptick we So year to begin We sorry, a this can at year. the add, I a back we But mean, expect of a to significant Mitch next And mentioned I pipeline. year least -- the

some One of smaller-format doing go accelerate we there's lower our -- cost that that footprint. units, we've think places. out unit, continue is of building the which ways a more with lot developed to opportunity in And smaller-format smaller we're to can

of from of question Your is Morgan. John next JP the Ivankoe line

us we this, fiscal mentioning this So, comfortable on at thank point 'XX models -- models for fiscal growth there probably that should it seeing talk that of when Is 'XX. reacceleration at be just the our you in about significant? be least we you'd just in range because thinking loose a at is the have most in anchored

be I that number. could said like is, really I year mean, least growth per XX% I what say what at -- unit is at just to we'd

So of idea where gives kind be should we that you an of kind of landing.

obviously All not just -- right. and a that a 'XX that's And long-term also number. That's number.

So that's helpful.

that. will All in I number up XX% to Is missed to half that right. higher? be fair second Do even kind that got a of forward? expect then it the And Perfect. it. secondly, Kitchen. Maybe to would mix of tick going Infinite you units Okay. have it I the assume like if open

bring higher, it down the as those units. we're able cost tick We'd expect to for to over up of especially time

time, benefits terms seen many lower of as in restaurants over turnover; consistent -- such throughput. much like be we we'd customer So as possible. to more places, many them experience; higher in We've

we we put but it eventually can hope to places can many it -- allocation sense we want a And perspective. capital sure that from as make get possible, it makes so we

yes. So -- is yes hopefully, the answer

of Your the is from Cowen. line next Charles Andrew with question TD

are priorities Is more love throughput to Congrats I'm you what on it thoughts. Infinite on it hiring margin on your be? Just Is side? Kitchen, Rossann, the the me improvements? curious, understand can going your help of

Sure.

is her we're really She's have us. on the the -- to she's taken COO. Rossann, join role So pleased

our and lot great of in around figuring services really development with operations that team, And development smaller CapEx economics, key great transaction X, business. The so reaccelerating the a Number giving format can so restaurants. ownership that her out operations, And our the our of acceleration. priorities unit our with driving great of and course, team her that through probably for of one. all also our will these of us pipeline driving our so be driving margins restaurant she our It's operations lot growth a between customer the is will experiences chain margin of be team, X in store number opportunity chain huge our part field supply -- walls supply the be leading as it, experience. in-store think well a as expansion both stores, We units down there's level. help at of owning for would

Your the next Tower Jon line question with is Citigroup. of from

circling conversation back Kitchens. maybe to First, on Infinite the

you're stores stores out Kitchen, mentioned you the those the penciling couple new kind the at think that potential And I'm of far targeted so stores that when or the curious, you so you Infinite these for Kitchen. a how about just like on with bump AUV checks curious, XX% is Just of -- have, -- seeing are Infinite of returns? you

Jon, question. thank the for you

We are about the bump stores that X those that, the IK. coming from that's have believe kiosk that stores a have. We in XX% seeing our ordering largely

IK order that modeled more any into consider of that benefit. this calculations a at less kind We second point. not have our of We or

the about you a to opportunity of Kitchens these, historic for -- of up down base. you'll of there which will the format costs? build-out to historically you and is think number Infinite of TI. adding then believe bring I new $X.X And talk that. terms targeted relative about build million such. But that you be in Obviously, in getting smaller units costs Jon, the net them into the idea you Can appreciate mentioned, driving just I

you lower much do can feel that? So like you how further get

Yes.

historic inflation per Today, net the million. pre closer TI. of saw targeting seeing for that that a we restaurant we're number $X.X all classic So to $X.X store we million pre-IPO, were -- about

priority us other and working aggressively but very that very is, of it's down for number down. going to $XXX,XXX to are that an store, any the $XXX,XXX a number to down come the engineering cost not costs And exactly from Infinite bring optimizations. partially to big smaller it's through that we have which course, level of to partially those, you scale, I'm Kitchen, what the guide that through with We described. bring units, if value CapEx Kitchen with Infinite will again incremental of to add

question is with the from of of Bank America. next line Griffin Katherine Your

wanted the to retrofit ask for throughput question should a that like a IK. I means to retrofitting we about on stores? restaurants what at clarifying with just -- lift think those sales How and

It's can about we're The restaurants. in those one things per test really looking to bowls of the Kitchen handle Infinite XXX hour.

is it in So they're X very, that today, are In there very stores the deployments. fast. suburban

urban that of not going seeing But that. places it some So heavy have environments those we're the testing are does to demand. of that level we're where be this year going be to

those in we're we're that's to say not lift -- going of the one restaurants. sales exactly to what, a expect to trying do understand. not we We're but things So ready key

teams savings we'll customer more are year. the lot we capture a be and learn to just accurate, on the of about greater about labor, the able As costs, that hiring been turnover something lower experience, is but a mentioned, we've throughput later savings able smaller, this because getting on to less talk things lot revenue more

Okay. question And another IK. on then, just

yes? the Just seeing costs, on some stores? restaurant you're benefits -- benefits. there's it's else, you're that where the else seeing, operating of labor the But clear or Whether from if anywhere getting I in definitely versus if you're think, are side there anywhere on the curious I'm traditional IK the sort benefits yes, COGS margin where it's

from it, is COGS that of comes course, of The but majority there an Katherine. labor, of improvement Thanks, portioning. is perfect

is Brian Our Stanley. next from Morgan our Harbour next question with

frequency cost the benefits? what change isn't elaborate than on because Or with Is of over impact more it with to you And of you've yet expected? to you just have the about those seen yet -- been time? that different sort of an could have by see kind of hasn't do maybe what of frequency reason, think needs might been the what comments offset you there benefits sort your Sweetpass. Jon, just

Yes.

about Sweetpass, seeing Sweetpass talk membership, the we and huge when are base. the a it's program, we're overall So program, core incrementality talking member Plus the Sweetpass+ In the we not program. both some about those of guests. But the out

And driving there's more So big think, Sweetpass, to lot one-to-one better we to incremental the visit. a to rewards there's improve overall are speak way. When do a personalization transaction it. I can the simpler, I it's core campaigns a really do experience and growth the app, overall think about in of talking that in lot And I'm drive CRM of not we optimization of of I around program. Rewards the things lot that. can that a the

significant we So well look driver be be optimizations for big for that a transaction can changes us, some as on. us. as working for pretty We driver really will think acquisition it coming do a in customer

stack the that, So news there, to I work as built to pretty is able is, to program the foundation mentioned technology. and good investment tech the in use The to we order in we're this us. time order and get a and there's improve long for

guess stores, to throughput stores less question you of you do What warranted, are comments sense. have it's to fact, bowls perhaps XXX Kitchen versus And some And in Makes I'm a in impactful you more a hour. that majority per of curious of that I of -- think your make my put the of impactful right? maybe I suburban can about lot are, kind just then example, Infinite kind stores think sense for it do does it's sort store? not Okay. guess is, or given where constraints?

Yes.

-- the best average kind you the intentionally testing But neighborhoods. the -- work we've sure locations all mean, our high really I throughput it that volume, for places obviously in average fleet but the suburban these location country. So it leverage. just because in X where And wanted to That's that most it been see there make also we urban would it we in works locations. over tested technology not higher in of are

we But in type midtown, have will in York extra an is throughput suburban to those lot work restaurants. those about have the of the high stores So volume, neighborhoods. it that benefit think confidence New a super of

you that hit Many of less of peak, there better labor, costs, is opportunity food other the XXX that think there's still may we tried a benefits time. less not turnover, portioning, it, hour you been mean, of quality have CX over less this get I all and but per for You better. but ton around the

the is next Sandler. Your of Piper Brian line Mullan from question with

X% the lift Just prepared benefit to? for question the that to be you Or just said your think XX% is on In base existing that remarks, related Is stores? target margins? would what Infinite But that I is a have current store another the margins. related you relative to clarification, to a Mitch, that it Kitchen. X% maybe lift

Of the relative to that the current is X%, fleet. X points

kind what it they you units? are could just then, manufacturing way? And along things progressing how do just today, talk complicating Okay. going to you And the stands you, then things there come about from speaking? Are lead wanted up partner? Are smoothly, if factors order of with new require as your that time generally

do can we to the supply this -- and and able put quite confidence process. be of we a new manufacturing and will units, very be in time lead very a need. us orders good We the and in but new for to There we're up lasting about So get been we do feel a able for scale to supply, deployed. the that have it's is bit while, these we to excited a smooth the have way units we

able A So derisked mind. And in a we been do more scale able of lot economies of build as -- manufacturing huge we're lot see issue as to at see order we point. units, -- we it a savings we're has I as bring to cost mentioned, being our down. do of ability see this us the in don't our cost for to and to

Thank call. for today's conclude does you joining. This

your You lines. may now disconnect