El Pollo Loco Holdings Inc (LOCO) 2024 Q2 法說會逐字稿

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the El Pollo Loco second quarter 2021 earnings conference call. (Operator Instructions) Please note that this conference is being recorded today, August 1, 2024.

女士們先生們，美好的一天，謝謝你們的支持。歡迎參加 El Pollo Loco 2021 年第二季財報電話會議。（操作員說明）請注意，本次會議將於今天（2024 年 8 月 1 日）錄製。

And now I would like to turn the conference over to Ira Fils, the company's Chief Financial Officer. Please go ahead, sir.

現在我想把會議交給公司財務長艾拉‧菲爾斯 (Ira Fils)。請繼續，先生。

Thank you, operator, and good afternoon, everyone. By now, everyone should have access to our second quarter 2024 earnings release. If not, it can be found at www.elpolloloco.com in the Investor Relations section. Before we begin our formal remarks, I need to remind everyone that our discussions today will include forward-looking statements, including statements related to our growth opportunities, strategic and operating initiatives, expectations regarding sales and margins, potential changes to our product platforms, capital expenditure plans, expectations regarding kiosk rollouts, the ability of our franchisees to drive growth, expectations regarding commodity and wage inflation, remodel plans and our 2024 guidance, among others.

謝謝接線員，大家下午好。到目前為止，每個人都應該可以查看我們 2024 年第二季的收益發布。如果沒有，可以在 www.elpolloloco.com 的投資者關係部分找到。在我們開始正式發言之前，我需要提醒大家，我們今天的討論將包括前瞻性陳述，包括與我們的成長機會、策略和營運計劃、銷售和利潤預期、我們產品平台的潛在變化、資本相關的陳述。

These forward-looking statements are not guarantees of future performance, and therefore, you should not put undue reliance on them. These statements are also subject to numerous risks and uncertainties that could cause actual results to differ materially from what we currently expect. We refer you to our recent SEC filings, including our Form 10-K for the year-ended 2023 previously filed as well as our Form 10-Q for the second quarter to be filed for a more detailed discussion of the risks that could impact our future operating results and financial condition. We expect to file our 10-Q for the second quarter of 2024 tomorrow. We encourage you to review that document at your earliest convenience.

這些前瞻性陳述並不是對未來績效的保證，因此，您不應過度依賴它們。這些陳述也受到許多風險和不確定性的影響，可能導致實際結果與我們目前的預期有重大差異。我們建議您參閱我們最近向 SEC 提交的文件，包括先前提交的 2023 年底的 10-K 表格以及即將提交的第二季度的 10-Q 表格，以更詳細地討論可能影響我們的風險未來的經營業績和財務狀況。我們預計明天將提交 2024 年第二季的 10-Q 報告。我們鼓勵您儘早查看該文件。

During today's call, we will discuss non-GAAP measures that we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP, and reconciliations to comparable GAAP measures are available in our earnings release, which is available in the Investor Relations section of our website.

在今天的電話會議中，我們將討論我們認為有助於評估我們績效的非公認會計準則衡量標準。這些附加資訊的呈現不應被孤立地考慮或作為根據GAAP 準備的結果的替代品，並且可在我們的收益發布中找到與可比較GAAP 衡量標準的對賬，該收益發布可在我們網站的投資者關係部分找到。

With respect to the restaurant contribution margin outlook we will be providing on today's call, please note that we have not provided a reconciliation to the most directly comparable forward-looking GAAP financial measure because without unreasonable efforts, we are unable to predict with reasonable certainty the amount of or timing of non-GAAP adjustments that are used to calculate income from operations and company-operated restaurant revenue on a forward-looking basis.

關於我們將在今天的電話會議上提供的餐廳貢獻利潤率前景，請注意，我們尚未提供與最直接可比的前瞻性GAAP 財務指標的對賬，因為如果沒有不合理的努力，我們無法合理確定地預測用於前瞻性計算營運收入和公司經營餐廳收入的非公認會計原則調整的金額或時間。

Now I would like to turn it over to our CEO, Liz Williams.

現在我想將其交給我們的執行長 Liz Williams。

Thank you, Ira, and good afternoon, everyone. I am proud of what we have accomplished during the second quarter as we delivered 4.5% increase in system-wide comparable restaurant sales driven by our iconic fire grilled chicken, our renewed focus on everyday value and our consistent operations. Our restaurant-level margins were 18.6%, a 170 basis point improvement versus the second quarter of 2023, which can be attributed to our ongoing operational focus. While we are proud of these achievements, we are just getting started in growing our beloved brand.

謝謝你，艾拉，大家下午好。我對我們在第二季度取得的成就感到自豪，在我們標誌性的火烤雞、我們對日常價值的重新關注以及我們一致的運營的推動下，我們的全系統可比餐廳銷售額增長了4.5% 。我們的餐廳級利潤率為 18.6%，比 2023 年第二季提高了 170 個基點，這可以歸因於我們持續的營運重點。雖然我們為這些成就感到自豪，但我們才剛開始發展我們喜愛的品牌。

As you know, it has been a challenging macroeconomic environment for the restaurant industry and consumers as a whole in the recent months. While some may see this as an obstacle, we see this as an opportunity to showcase to our guests that El Pollo Loco is one of the unique restaurants that can offer portable, craveable, fresh food, all for good value and with the convenience of fast service. And don't just take our word for it.

如您所知，近幾個月來，對於餐飲業和整個消費者來說，宏觀經濟環境充滿挑戰。雖然有些人可能認為這是一個障礙，但我們認為這是一個機會，向我們的客人展示El Pollo Loco 是一家獨特的餐廳，可以提供便攜式、令人渴望的新鮮食物，所有這些都物超所值且方便快速服務。不要只相信我們的話。

Last month, we were named the nation's number one best restaurant for quick, healthy food by USA Today as voted on by consumers across the country, beating out several well-known larger brands. It is recognition like this that reinforces our differentiated consumer value proposition that makes us primed for growth.

上個月，我們擊敗了幾個知名的大品牌，被《今日美國》評為全國最佳快餐健康餐廳，經全國消費者投票選出。正是這樣的認可強化了我們差異化的消費者價值主張，使我們為成長做好了準備。

As we navigate the second half of 2024, let me update you on our five strategic pillars. As a reminder, these are brand not wins to be the flavorful, affordable, better-for-you chicken leader, hospitality mindset to show up consistently and with a hospitality mindset. Number 3, digital first, to become a digital-first business in service of improving the customer experience; number 4, to deliver winning unit economics; and number 5, to drive unit growth again with national expansion.

在我們展望 2024 年下半年之際，讓我向您介紹我們的五個策略支柱的最新情況。提醒一下，這些品牌的勝利並不是成為美味、價格實惠、更適合您的雞肉領導者，而是始終如一地表現出熱情好客的心態。第三，數位化優先，成為數位化優先的企業，致力於改善客戶體驗；第四，提供獲勝的單位經濟效益；第五，透過全國擴張再次推動單位成長。

Let's start with brand not wins. El Pollo Loco sits at the intersection of chicken in Mexican, two of the fastest-growing categories. We are squarely focused on being known for the best chicken in the limited service restaurant sector by bringing thoughtful innovation and affordable options back into the brand. To that end, we recently relaunched our Fire-grilled Burritos with handmade Guacamole included in all three at a very [adoptive] price point of $9.99 and $8.99 for our Loco Rewards members.

讓我們從品牌而非勝利開始。El Pollo Loco 位於墨西哥雞肉的交叉點，這是成長最快的兩個類別。我們專注於透過為品牌帶來周到的創新和實惠的選擇，以在有限服務餐廳領域提供最好的雞肉而聞名。為此，我們最近重新推出了火烤墨西哥捲餅，這三款捲餅都包含手工製作的酪梨醬，價格非常[採納]，為我們的 Loco Rewards 會員提供 9.99 美元和 8.99 美元。

As value perceptions across our entire industry are at a crucial point right now, are Burritos with delicious ingredients like our new Creamy Chipotle sauce or our signature, [Cesellanco], reinforce the promise that you can fill up on really good food for a good price at El Pollo Loco The best part is that these burritos were designed to maintain our favorable margins. Early feedback has been positive, and we look forward to providing you with additional updates later this year.

由於我們整個產業的價值觀念目前正處於關鍵時刻，捲餅是否含有美味的成分，例如我們的新奶油墨西哥辣椒醬或我們的招牌[Cesellanco]，強化了您可以以優惠的價格吃到真正美味的食物的承諾El Pollo Loco 最好的部分是，這些墨西哥捲餅旨在保持我們有利的利潤。早期回饋非常積極，我們期待在今年稍後為您提供更多更新。

As we launched our new burritos, we also brought back for a limited time or double chalk salad with chicken, and we reintroduced shrimp following the success we saw with shrimp in the first quarter. While premium priced, these fan favorites are affordable versus the fast-casual alternatives in the market, and they provide healthy options for consumers on the go. We also continued to test other value with our Fire grilled deal, including our ala-carte and combo offerings in the $3 to $7 price range. With Classics like our original playable and Taco's all carbon. I look forward to sharing more with you in the upcoming months as we learn more from our tough markets.

當我們推出新的墨西哥捲餅時，我們還限時帶回了雞肉雙粉筆沙拉，並且繼第一季蝦取得成功後，我們重新推出了蝦子。雖然價格昂貴，但與市場上的快速休閒替代品相比，這些粉絲最愛的產品價格實惠，並為忙碌的消費者提供了健康的選擇。我們也繼續透過火烤交易測試其他價值，包括價格範圍為 3 至 7 美元的單點和組合產品。經典遊戲包括我們最初的可玩遊戲和 Taco 的全碳遊戲。隨著我們從嚴峻的市場中了解更多信息，我期待在接下來的幾個月中與您分享更多。

Finally, as we sharpen our brand positioning, we look forward to reinforcing El Pollo Loco as genuinely delicious food that not only taste good but also makes you feel good. We have a unique opportunity to own this space in QSR.

最後，隨著我們強化品牌定位，我們期待將 El Pollo Loco 打造成真正美味的食品，不僅味道好，而且讓您感覺良好。我們有一個獨特的機會在 QSR 中擁有這個空間。

Turning now to our digital first pillar. While we believe 9.99 is already a very competitive price point on our menu, our local rewards loyalty members have access to even better deals like 8.99 burritos already mentioned. Our program powered through our local rewards is the best place for these deals at EPL. In this environment where value is key to the consumer, we will continue to ensure our digital assets offer value that drive trial and repeat business.

現在轉向我們的數位第一支柱。雖然我們相信 9.99 美元在我們的菜單上已經是一個非常有競爭力的價格點，但我們的本地獎勵忠誠會員可以獲得更好的優惠，例如已經提到的 8.99 美元捲餅。我們透過本地獎勵提供支援的計劃是在 EPL 進行這些交易的最佳場所。在價值對消費者至關重要的環境中，我們將繼續確保我們的數位資產提供推動試用和重複業務的價值。

Turning to kiosks. When we first began the rollout of kiosks late last year, our time line was accelerated to help offset the minimum wage increases that were forecasted in our California markets. When we stepped back and realized the high-touch training and customer service that was needed to drive sustainable customer adoption, we decided to better pace and sequence this time line to ensure our guest experience remained a priority. In parallel, our team has been exploring additional labor productivity initiatives throughout our P&L to offset any gap from kiosk savings.

轉向資訊亭。當我們在去年年底首次開始推出自助服務終端時，我們的時間表加快了，以幫助抵消加州市場預計的最低工資上漲。當我們退後一步，意識到推動永續客戶採用所需的高接觸培訓和客戶服務時，我們決定更好地調整這條時間線的節奏和順序，以確保我們的客戶體驗仍然是優先考慮的。同時，我們的團隊一直在整個損益表中探索額外的勞動生產力舉措，以彌補自助服務終端節省的任何缺口。

As such, we now expect to complete our company kiosk rollout by the end of the year. This extra time has also enabled some technology enhancements that help our operational and customer experience, like accepting gift cards and discounts. We believe this has been the right decision for the success of kiosks within El Pollo Loco or the long term. We remain excited by the future potential of kiosks and look forward to keeping you updated as the year goes on.

因此，我們現在預計將在今年年底前完成公司資訊亭的推出。這段額外的時間也實現了一些技術增強，有助於我們的營運和客戶體驗，例如接受禮品卡和折扣。我們相信，對於 El Pollo Loco 內自助服務終端的成功或長期而言，這是正確的決定。我們對自助服務終端的未來潛力仍然感到興奮，並期待在新的一年中為您提供最新資訊。

The next pillar I want to touch on is delivering winning unit economics. While we are pleased with our margin performance during the quarter, we are excited about the road map that we are building for our future. We are looking across the P&L from labor productivity to cost of goods sold to repair and maintenance and utilities and all other controllable expenses.

我想談的下一個支柱是提供獲勝的單位經濟效益。雖然我們對本季的利潤率表現感到滿意，但我們對我們為未來制定的路線圖感到興奮。我們正在審視損益表，從勞動生產力到維修和保養、公用事業以及所有其他可控費用的銷售成本。

We have a dedicated working team focused on these initiatives, led by recently hired new leaders guiding our supply chain, our operational services and our culinary functions.

我們有一個專注於這些舉措的專門工作團隊，由最近聘請的新領導領導，指導我們的供應鏈、營運服務和烹飪職能。

With their fresh perspective and our talented teams that have been with El Pollo Loco for many years, we are approaching our cost savings initiatives methodically to ensure our high-quality food and the guest experience only improve. As we unlock this potential, we expect to start seeing the benefits in the fourth quarter of 2024 and offsetting the investments we are making in this initiative.

憑藉他們的新鮮視角和我們在 El Pollo Loco 工作多年的才華橫溢的團隊，我們正在有條不紊地實施成本節約計劃，以確保我們的高品質食品和賓客體驗得到改善。隨著我們釋放這一潛力，我們預計將在 2024 年第四季開始看到收益，並抵消我們在此計劃中所做的投資。

Through the work we've done thus far and with the road map for the next year, we believe there is an opportunity to approach 18% restaurant contribution margins in 2025, giving us increased confidence in our ability to return to consistent 18% to 20% margins over time.

透過我們迄今為止所做的工作以及明年的路線圖，我們相信到 2025 年，餐廳貢獻利潤率有機會接近 18%，這讓我們更有信心恢復到 18% 到 20 年間的穩定水平。的推移，利潤百分比。

Lastly, let's talk about driving unit growth. As I mentioned on our last call, our current prototype build costs are simply too high to drive consistent long-term franchise growth. To that end, we have made good progress on value engineering and reducing the cost of our prototype while at the same time modernizing our brand image. I have increased confidence in our ability to reduce our new unit build cost to around $1.8 million. We are just finishing up the design of the prototype, which will have a more relevant image that bridges our current design to our future.

最後，我們來談談推動單位成長。正如我在上次電話會議中提到的，我們目前的原型建造成本太高，無法推動特許經營的長期持續成長。為此，我們在價值工程和降低原型成本方面取得了良好進展，同時實現了我們品牌形象的現代化。我對我們將新單位建造成本降低至 180 萬美元左右的能力更加有信心。我們剛完成原型的設計，它將有一個更相關的圖像，將我們當前的設計與未來聯繫起來。

In the next few months, we will begin construction on a company unit with the new prototype and reduced cost model. We look forward to sharing further updates as we move through the year. Combined with the development incentive that we launched a few months ago for our franchise partners, we are quickly laying the foundation to ignite development growth in 2025.

在接下來的幾個月中，我們將開始使用新原型和降低成本模型來建造公司單位。我們期待在這一年分享更多的最新消息。結合我們幾個月前為特許經營合作夥伴推出的發展激勵措施，我們正迅速為 2025 年激發發展成長奠定基礎。

Wrapping up development, I am pleased to introduce Tim Welsh as our Chief Development Officer. Tim joined the team in early June and has brought with him over 20 years of development and franchising experience in growth strategies, franchise sales, prototype development, remodel programs and facilities maintenance. From design to facilities maintenance to restaurant equipment, Tim has already had an impact on many areas of our cost engineering and design initiatives. His experience is the perfect fit for El Pollo Loco as we work together with our franchise partners to drive unit growth and become a national brand.

開發結束後，我很高興地介紹蒂姆·威爾斯 (Tim Welsh) 擔任我們的首席開發長。Tim 於 6 月初加入團隊，在成長策略、特許經營銷售、原型開發、改造計劃和設施維護方面擁有 20 多年的開發和特許經營經驗。從設計到設施維護再到餐廳設備，蒂姆已經對我們成本工程和設計計劃的許多領域產生了影響。他的經驗非常適合 El Pollo Loco，因為我們與我們的特許經營合作夥伴合作，推動單位成長並成為全國品牌。

I want to close by talking about our hospitality mindset pillar and the underpinning priority of culture. We are committed to attracting, hiring and retaining top talent and driving a culture of accountability. As I have gotten to know the El Pollo Loco team better in my last 6 months, I have been so impressed with our restaurant culture.

最後，我想談談我們的熱情好客心態支柱和文化的基礎優先事項。我們致力於吸引、僱用和留住頂尖人才，並推動責任文化。在過去的 6 個月裡，我對 El Pollo Loco 團隊有了更多的了解，我們的餐廳文化給我留下了深刻的印象。

Because of the strength of our leaders and the passion of our team members and franchise partners, we have some of the lowest turnover in the restaurant industry in both company and franchise restaurants. As our team is focused on updating our tools and standards to drive speed, accuracy and hospitality, we are confident that our culture will enable some quick operational wins. We look forward to sharing more in the future.

由於我們領導者的力量以及我們團隊成員和特許經營合作夥伴的熱情，我們的公司和特許經營餐廳的營業額在餐飲業中是最低的。由於我們的團隊專注於更新我們的工具和標準，以提高速度、準確性和熱情，我們相信我們的文化將帶來一些快速的營運勝利。我們期待將來分享更多。

In summary, we believe we have the right building blocks for long-term success. We are reinventing value by focusing on our key differentiator, (inaudible) marinated fire-grilled chicken. We have the right leadership in place to reignite our growth plan and return El Pollo Loco to historically strong margin performance, and we are fortunate to have such a strong support center team and over 4,300 amazing team members in our restaurants and an incredible franchise system. Together, all of this is ready to capture the growth ahead.

總之，我們相信我們擁有實現長期成功的正確基石。我們正在透過專注於我們的關鍵差異化因素（聽不清楚）醃製火烤雞來重塑價值。我們擁有正確的領導層來重新啟動我們的成長計劃，並使El Pollo Loco 恢復歷史上強勁的利潤表現，我們很幸運能夠擁有如此強大的支援中心團隊和超過4,300 名出色的餐廳團隊成員以及令人難以置信的特許經營系統。所有這些都已準備好迎接未來的成長。

With that, let me turn the call over to Ira for a more detailed discussion of our second quarter financial results.

接下來，讓我將電話轉給 Ira，以更詳細地討論我們第二季的財務表現。

Thank you, Liz, and good afternoon, everyone. For the second quarter ended June 26, 2024, total revenue increased 0.6% to $122.2 million compared to $121.5 million in the second quarter of 2023. Company-operated restaurant revenue decreased 1.5% to $102.3 million from $103.9 million in the same period last year. The $1.6 million decrease in company-operated restaurant sales was primarily driven by a $5.5 million decrease in revenue from the refranchising of 19 company-operated restaurants to existing franchisees in prior quarters. Offset by a 3.2% increase in company-operated comparable restaurant sales and additional sales from restaurants opened during or subsequent to the second quarter of 2023.

謝謝你，莉茲，大家午安。截至 2024 年 6 月 26 日的第二季度，總營收成長 0.6%，達到 1.222 億美元，而 2023 年第二季的總營收為 1.215 億美元。公司自營餐廳營收下降 1.5%，從去年同期的 1.039 億美元降至 1.023 億美元。公司自營餐廳銷售額減少 160 萬美元，主要是由於前幾季將 19 家公司自營餐廳重新特許經營給現有特許經營商，導致收入減少 550 萬美元。被公司經營的可比餐廳銷售額增長 3.2% 以及 2023 年第二季或之後開設的餐廳的額外銷售額所抵消。

The increase in comparable restaurant sales included an 8.8% increase in average check size and an approximately 5.2% decrease in transactions. During the second quarter, our effective price increase versus 2023 was 7.8%. Franchise revenue increased 15.1% and to $11.7 million during the second quarter, driven by a 5.3% increase in franchise comparable restaurant sales as well as four new franchise restaurant openings during or subsequent to the second quarter of 2023 and the 19 refranchise restaurants I've just mentioned earlier.

可比較餐廳銷售額的成長包括平均支票金額增加 8.8% 和交易量減少約 5.2%。第二季度，與 2023 年相比，我們的有效價格上漲了 7.8%。第二季特許經營收入成長15.1%，達到1,170 萬美元，這主要得益於特許經營可比餐廳銷售額增長5.3%，以及2023 年第二季度或之後新開的4 家特許經營餐廳以及我已經重新開業的19 家特許經營餐廳。

Looking ahead, third quarter-to-date sales through July 30, 2024, system-wide comparable store sales increased 1.9%, consisting of a 0.3% increase in company-operated restaurants and a 2.8% increase in franchise restaurants. Our quarter-to-date trends reflect two major factors. First, the impact of the July 4 shift and second, the impact of a mismatch and LTO timing relative to last year. As we've moved past these transitory timing issues, we've already seen trends start to normalize and expect to see comparable trends similar to what we achieved in the second quarter for the majority of the remainder of the third quarter.

展望未來，截至 2024 年 7 月 30 日的第三季迄今銷售額，全系統可比商店銷售額增長 1.9%，其中公司自營餐廳增長 0.3%，特許經營餐廳增長 2.8%。我們季度至今的趨勢反映了兩個主要因素。首先是 7 月 4 日班次的影響，其次是相對於去年的不匹配和 LTO 時間的影響。當我們克服這些暫時性的時間問題時，我們已經看到趨勢開始正常化，並預計在第三季剩餘時間的大部分時間中看到與第二季相似的趨勢。

Turning to expenses. Food and labor costs as a percentage of company restaurant sales decreased 220 basis points year-over-year to 25.2% due to higher menu prices and lower discounting, partially offset by slight commodity inflation of approximately 2.7%. We expect commodity inflation to be a manageable 2% to 3% for the full year 2024.

轉向開支。由於菜單價格上漲和折扣減少，食品和勞動力成本占公司餐廳銷售額的百分比年減 220 個基點至 25.2%，但部分被約 2.7% 的小幅商品通膨所抵銷。我們預計 2024 年全年大宗商品通膨率將控制在 2% 至 3% 的範圍內。

Labor and related expenses as a percentage of company restaurant sales increased 100 basis points year-over-year to 32.1%. An increase in wages was partially offset by higher menu prices and better operating efficiencies primarily driven through improvements in labor deployment and labor scheduling, especially during open and closing periods.

勞動力及相關費用占公司餐廳銷售額的百分比年增 100 個基點，達到 32.1%。工資的成長被菜單價格的上漲和營運效率的提高所部分抵消，這主要是透過改善勞動力部署和勞動力調度（特別是在營業和休息期間）推動的。

Labor wage inflation during the second quarter was approximately 15% for all our company-owned locations, driven by wage inflation in our California restaurants of approximately 17% as a result of the April 1, California $20 minimum wage increase for QSR restaurants.

由於 4 月 1 日加州 QSR 餐廳的最低工資上漲了 20 美元，我們加州餐廳的工資上漲了約 17%，導致我們公司所有分支機構的勞動力工資在第二季度上漲約 15%。

For the full year 2024, we expect wage inflation between 12% and 13% for all our company-owned locations. Occupancy and other operating expenses as a percentage of company restaurant sales decreased 50 basis points year-over-year to 24.1%, primarily due to the leverage gained on the same-store sales increase, combined with the sale of lower volume locations to existing franchisees in the prior year.

2024 年全年，我們預計公司旗下所有地點的薪資通膨率介於 12% 至 13% 之間。入住率和其他營運費用占公司餐廳銷售額的百分比同比下降 50 個基點至 24.1%，主要是由於同店銷售額增加所獲得的槓桿作用，以及向現有特許經營商出售銷量較低的門店在上一年。

Our restaurant contribution margin for the second quarter was 18.6% compared to 16.9% in the year ago period. For the full year 2024, we are now expecting our restaurant contribution margin to be in the 16% to 17% range, an increase from our prior expectation of 15.5% to 16.5%, including the third quarter of 24% in the 15% to 16% range. We are pleased with the progress we are making in our labor improvement initiatives. And as Liz mentioned earlier, we are continuing to focus on identifying additional savings and efficiencies across the P&L as we continue to improve restaurant level margins.

我們第二季的餐廳貢獻利潤率為 18.6%，去年同期為 16.9%。對於2024 年全年，我們預計餐廳貢獻利潤率將在16% 至17% 範圍內，高於我們先前預期的15.5% 至16.5%，其中第三季為24%，而第三季為15% 至17%。我們對勞動力改善計劃所取得的進展感到高興。正如莉茲之前提到的，隨著我們繼續提高餐廳的利潤率，我們將繼續專注於在損益表中確定額外的節省和效率。

General and administrative expenses increased 50 basis points year-over-year to 9.6% of total revenue. The increase for the quarter was primarily due to an increase in estimated management bonus expense and executive transition costs.

一般及管理費用較去年同期成長 50 個基點，佔總營收的 9.6%。本季度的成長主要是由於估計管理獎金費用和高階主管過渡成本的增加。

During the second quarter, we recorded a provision for our income taxes of $3.2 million for an effective tax rate of 29.3%. This compares to a provision for our income taxes of $2.7 million and an effective tax rate of 27.9% in the prior year period. We reported GAAP net income of $7.6 million or $0.25 per diluted share in the second quarter compared to GAAP net income of $7.1 million or $0.20 per diluted share in the prior year period.

第二季度，我們的所得稅撥備額為 320 萬美元，有效稅率為 29.3%。相較之下，上一年期間我們的所得稅準備金為 270 萬美元，有效稅率為 27.9%。我們公佈的第二季 GAAP 淨利潤為 760 萬美元，即稀釋後每股收益 0.25 美元，而去年同期的 GAAP 淨利潤為 710 萬美元，即稀釋後每股收益 0.20 美元。

Adjusted net income for the quarter was $7.8 million or $0.26 per diluted share compared to adjusted net income of $8 million or $0.23 per diluted share in the second quarter of last year. Please refer to our earnings release for a reconciliation of non-GAAP measures.

本季調整後淨利為 780 萬美元，即稀釋後每股收益 0.26 美元，而去年第二季調整後淨利為 800 萬美元，即稀釋後每股收益 0.23 美元。請參閱我們的收益發布，以了解非公認會計準則指標的調節表。

Turning to development. We are modestly reducing our development and remodel guidance for the year. This enables us to incorporate design elements and cost savings from our new prototype and a greater portion of the system more quickly and thus better setting us up for success over the long term. During the quarter, our franchisees opened one new restaurant in California, and we sold one company location to an existing franchisee.

轉向發展。我們正在適度減少今年的開發和改造指導。這使我們能夠更快地整合新原型和系統大部分的設計元素並節省成本，從而更好地為我們的長期成功做好準備。本季度，我們的特許經營商在加利福尼亞州開設了一家新餐廳，並且我們將一個公司地點出售給了現有的特許經營商。

In regards to remodels. During the second quarter, we completed two company-operated restaurant remodels and 17 franchise restaurant remodels, bringing our total completed remodels for the year to five company restaurants and 28 franchise restaurants. For the full year, we expect to complete a total of 10 to 12 company remodels and 35 to 45 franchise remodels in 2024.

關於改造。第二季度，我們完成了 2 家自營餐廳改造和 17 家特許經營餐廳改造，使全年完成的改造總數達到 5 家公司餐廳和 28 家特許經營餐廳。全年預計2024年將完成10至12家公司改造及35至45家特許經營改造。

Turning to liquidity. As of June 26, 2024, we had $87 million of debt outstanding and $10.5 million in cash and cash equivalents. Subsequent to the end of the quarter, we paid down an additional $4 million on our revolver, resulting in $83 million of debt outstanding as of July 31, 2024. On May 29, 2024, the company repurchased approximately 1.5 million shares for $15 million under a stock repurchase agreement with FS Equity Partners and FS affiliates. Additionally, during the second quarter, we repurchased approximately 203,000 shares of stock for approximately $2 million, leaving about $4.2 million remaining under our current share repurchase authorization as of June 26, 2024.

轉向流動性。截至 2024 年 6 月 26 日，我們的未償債務為 8,700 萬美元，現金及現金等價物為 1,050 萬美元。本季末後，我們又償還了 400 萬美元的左輪手槍，截至 2024 年 7 月 31 日，未償債務為 8,300 萬美元。2024 年 5 月 29 日，該公司根據與 FS Equity Partners 和 FS 附屬公司簽訂的股票回購協議，以 1,500 萬美元的價格回購了約 150 萬股股票。此外，在第二季度，我們以約 200 萬美元的價格回購了約 203,000 股股票，截至 2024 年 6 月 26 日，我們目前的股票回購授權剩餘約 420 萬美元。

Finally, based on our results to date, we would like to update the following guidance for 2024. The opening of two company-owned restaurants and 4 to 5 franchise restaurants; capital spending between $24 million and $26 million, G&A expenses between $45 million and $47 million, excluding onetime costs and an adjusted income tax rate of 27.5% to 28%.

最後，根據我們迄今為止的結果，我們希望更新以下 2024 年指南。開設兩家公司自營餐廳及4至5家特許經營餐廳；資本支出在 2,400 萬至 2,600 萬美元之間，一般管理費用在 4,500 萬至 4,700 萬美元之間，不包括一次性成本和 27.5% 至 28% 的調整後所得稅率。

This concludes our prepared remarks. We'd like to thank you again for joining us on the call today, and we are now happy to answer any questions that you may have. Operator, please open the line for questions.

我們準備好的演講到此結束。我們再次感謝您今天加入我們的電話會議，我們現在很樂意回答您可能提出的任何問題。接線員，請開通提問線。

(Operator Instructions)

（操作員說明）

Jake Bartlett with Truist Securities.

傑克‧巴特利特 (Jake Bartlett)，Truist 證券公司的合夥人。

My first one was just on underlying consumer demand, underlying restaurant demand. Your same-store sales obviously great in the quarter itself a little volatile as the promotions have kind of rolled off and then rolled back on. How do you interpret what the underlying demand is? Do you feel like it's stabilizing, still maybe deteriorating a bit, maybe improving? What's your characterization of your consumer right now?

我的第一個是關於潛在的消費者需求、潛在的餐廳需求。您的同店銷售額在本季度顯然很棒，但由於促銷活動有所減少，然後又恢復，因此略有波動。您如何解讀潛在需求？您是否覺得它正在穩定，仍然可能有點惡化，也許有所改善？您現在對消費者的特徵是什麼？

Thanks for the question, Jake. And I'll start and then I can pass it over to Ira. Pretty much all of those characteristics you just mentioned, we're seeing a lot of that noise in the data. When you look at -- as we entered into Q3, we have a lot of factors of our own that also clouded the data somewhat. So we have a lap that was mismatched with last year when we started our LTO this year versus where we started last year, which always create some noise.

謝謝你的提問，傑克。我會開始，然後我可以把它交給艾拉。幾乎所有您剛才提到的特徵，我們都在數據中看到了許多噪音。當你看到——當我們進入第三季時，我們自己有很多因素也在一定程度上使數據變得模糊。因此，我們今年開始 LTO 時的一圈與去年開始的位置不匹配，這總是會產生一些噪音。

And then we also made a strategic decision earlier this year to reduce the amount of discounting that we were doing with our rather -- it's a bit of an older format of discounting with our FSIs or our coupon drops. And those decisions are made months in advance, you can imagine because it's the old way of doing things where things are printed. And so the discounting levels were less than they were last year, which now where we see where we sit in value, you want them to be more. So we're, of course, changing that going forward. But that, of course, have impact.

然後我們也在今年稍早做出了戰略決定，以減少我們正在做的折扣量——這有點像我們的金融服務機構或我們的優惠券折扣的舊格式。你可以想像，這些決定是提前幾個月做出的，因為這是印出來的舊做事方式。因此，折扣水平低於去年，現在我們看到我們的價值，你希望折扣水平更高。所以我們當然會改變這一點。但這當然是有影響的。

And then when you layer in the 4th of July holiday, which I think what others have been saying, we saw that, too, people really adjusted their schedule more than just a day or rwo. And then just the overall consumer softness. So you put all that together, and I definitely am seeing that. But then we launched -- the good news about this business is we got out there.

然後，當你考慮到 7 月 4 日的假期時，我認為其他人一直在說，我們也看到人們確實調整了他們的日程安排，而不僅僅是一天或兩天。然後是整體消費者疲軟。所以你把所有這些放在一起，我確實看到了這一點。但後來我們推出了——關於這項業務的好消息是我們成功了。

We just launched two new products. We relaunched our burritos with our Guacamole Fresh Guacamole included at $9.99 and $8.99. And then on [barbell] strategy, so we did that on the value. And then on the salads, we launched the (inaudible) and have gotten a great response there. Even though staffs up at $11 to $12 price point, but it's still value versus where fast casual salads are -- so we launched those, and we saw the traffic pick back up. So I don't know that I give you any more clarity, but it's definitely a mixed bag. Go ahead --

我們剛剛推出了兩款新產品。我們重新推出了墨西哥捲餅，包括酪梨醬新鮮酪梨醬，售價為 9.99 美元和 8.99 美元。然後是[槓鈴]策略，所以我們在價值上做到了這一點。然後在沙拉上，我們推出了（聽不清楚）並在那裡得到了很好的反響。儘管員工價格上漲了 11 至 12 美元，但與快速休閒沙拉相比，它仍然物有所值——所以我們推出了這些沙拉，我們看到流量回升。所以我不知道我是否能讓你更清楚，但這絕對是一個複雜的問題。前進--

It was very much a mixed bag as you move through the month. The only thing I will add, and I mean it's not a lot of data points, but this most recent week that we experienced, we did see a little bit of a return to where we had been earlier on in the year, specifically last quarter from a sales standpoint. So we are optimistic as we move from the quarter that we still have nice sales momentum, but there was a lot going on in our July comp.

當你度過這個月時，情況非常複雜。我唯一要補充的是，我的意思是，這並不是很多數據點，但在我們經歷的最近一周，我們確實看到了一些回到今年早些時候的情況，特別是上個季度從銷售的角度來看。因此，當我們從本季開始時，我們仍然保持著良好的銷售勢頭，但我們 7 月的比較中發生了很多事情。

And maybe if you could also just address regionality and how your stores in California are doing versus source outside. We've heard a lot of different results in California, mostly kind of bad news, the consumer pulling back and traffic being really pressured in that market. Is that -- was that your experience? Maybe the experience outside of California is a little more representative of kind of maybe the underlying consumer itself, but any commentary there would be helpful.

也許您也可以只解決區域性問題以及您在加州的商店與外部採購的情況如何。我們在加州聽到了很多不同的結果，大部分都是壞消息，消費者減少，該市場的交通確實面臨壓力。那是──那是你的經歷嗎？也許加州以外的體驗更能代表潛在消費者本身，但那裡的任何評論都會有幫助。

We didn't see a whole lot of difference between the markets. I mean, I would say, marginally, there were some markets outside of California that was a little stronger. But I think in general, our -- the comp that you see for us is pretty representative of the system.

我們沒有看到市場之間有很大的差異。我的意思是，我會說，加州以外的一些市場稍微強勁一些。但我認為總的來說，我們的——你看到的我們的補償非常能代表這個系統。

And last question. On the expansion of the margins, you're really going from 24 to 25 to come. What is the main driver? So about -- I think at the midpoint of about 150 basis points, which is it right to think about labor as really the kind of the vast majority of the benefit would be coming through the labor line? Or is it more broad-based than that?

最後一個問題。在利潤率的擴大方面，未來確實會從 24 家增加到 25 家。主要驅動因素是什麼？那麼，我認為，在大約 150 個基點的中點，將勞動力視為絕大多數福利將透過勞動力線獲得的這種觀點是否正確？或者它的基礎比這更廣泛？

It's going to be more broad-based than that. Certainly, labor productivity, we still think that there's opportunity in those shoulder hours within some of the productivity we're doing and then as we deploy kiosks, all of those will help. But then we also have a very concerted effort on our cost of goods and some of our semi variable costs where we have put a dedicated effort, we've engaged a third party. We have some new talent leading our supply chain function and some of our other functions. And we're just doing a very thorough look in the middle of the P&L and those other line items. And honestly, it just hasn't been done in a couple of years, and it's overdue.

它將比這更加廣泛。當然，在勞動生產力方面，我們仍然認為在我們正在做的一些生產力中，在這些工作時間中存在著機會，然後當我們部署資訊亭時，所有這些都會有所幫助。但我們也對我們的商品成本和一些半可變成本做出了非常一致的努力，我們已經投入了專門的努力，我們已經聘請了第三方。我們有一些新人才來領導我們的供應鏈職能和其他一些職能。我們只是對損益表和其他行項目進行非常徹底的檢查。老實說，這件事已經好幾年沒做了，而且已經過期了。

Todd Brooks with Benchmark Company.

托德·布魯克斯（Todd Brooks），Benchmark 公司。

Congrats on strong results in a very choppy environment. So well done. First question, just a follow-up on Jake's question. Ira, you were talking about the regional performance and not seeing big discrepancies. But if we don't look at it as the total same-store sales level, but we looked at it as more at the traffic level. Kind of what's the spread between what you've seen in California versus the non-California markets?

恭喜您在非常動盪的環境中取得了優異的成績。做得很好。第一個問題，只是傑克問題的後續。Ira，您談論的是地區表現，但沒有看到很大的差異。但如果我們不把它看作同店總銷售額水平，而是更多地把它看作流量水平。您在加州和非加州市場看到的情況有何差異？

Yes. We definitely have seen a little more decline in California from a traffic standpoint than the outer markets because those are the markets that we've taken a little more price.

是的。從客流量的角度來看，我們確實看到加州的下降幅度比外部市場要大一些，因為我們在這些市場上採取了更高的價格。

And I know that there's been talk about that consumer kind of throwing up their hands and walking away in April and May. But if you look at your California traffic trends, are you seeing any evidence that this whole concept of -- I'm just going to make my food at home, I'm not going to eat out. There'll be a point that people get tired of it and they figure out how to add some of these restaurant visits back into their routines and their budgeting. Are you seeing any improvement in California traffic trends relative to what you're seeing in April, May with all the hype around the FAST Act of the price increases that were taken?

我知道有人在談論四月和五月消費者會舉手離開。但如果你看看加州的交通趨勢，你是否看到任何證據表明這整個概念——我只是要在家做飯，我不會出去吃飯。到了某個時候，人們就會厭倦它，他們會想出如何將這些餐廳的訪問重新添加到他們的日常生活和預算中。相對於 4 月和 5 月所看到的情況，您是否看到加州的交通趨勢有所改善？

Yes. Not yet. So what you're hypothesizing is true. I think we've seen cycles like this where that has happened or the other thing that happens is gas prices come back down and they have a little bit of extra money. Now we're about to go into back-to-school where people are spending money on that. What we are seeing is -- and I think everyone's seeing the trade-down effect. And so we sit in the middle. So we do get the trade down where people find going to casual dining too expensive or even I was talking about the salads, the fast casual salad is too expensive. So instead of $15 to $16, they're going to come to us for an $11 to $12 salad.

是的。還沒有。所以你的假設是正確的。我認為我們已經看到了這樣的週期，這種情況已經發生，或者發生的其他事情是汽油價格回落，他們有一點額外的錢。現在我們即將重返校園，人們正在為此花錢。我們所看到的是——我認為每個人都看到了折價效應。所以我們坐在中間。因此，我們確實降低了人們發現去休閒餐飲太貴的情況，甚至我在談論沙拉，快速休閒沙拉太貴了。因此，他們會來找我們購買 11 至 12 美元的沙拉，而不是 15 至 16 美元。

And the salad we're promoting right now has super-green lettuce that has [pepitas] Queso Blanco -- of course, our claims grilled chicken and we're offering strength as well. So when you compare it side by side with those solids on the upper end, I see a nice -- we're benefiting from trade down there. But then we give up some as people trade down on the lower end of QSR. So as we've got the guys out there running the crazy couple dollar for this or that, the consumer that's really under pressure, sadly is going to trade down there. So I think we're seeing all of that right now.

我們現在推銷的沙拉有超級綠色的生菜，裡面有[pepitas] Queso Blanco——當然，我們聲稱是烤雞，我們也提供強度。因此，當你將它與上端的那些固體並排比較時，我看到了一個很好的結果——我們從那裡的貿易中受益。但隨著人們在 QSR 的低端進行交易，我們放棄了一些。因此，當我們讓人們瘋狂地花幾美元買這個或那個時，真正處於壓力之下的消費者，可悲的是會在那裡進行交易。所以我認為我們現在正在看到這一切。

Fair enough. And then a final one for me, and it was encouraging to hear, but I think mix has been running negative for a few quarters now. And when you were giving us the components of same-store sales, it sounds like mix was up 100 basis points in the quarter. I guess, what drove the positive swing in maybe duration either due to easier compares on the mix front or what you're doing on the menu, just thoughts on the ability to keep the mix in a flat to positive place?

很公平。然後是最後一個對我來說，聽到這個消息很令人鼓舞，但我認為組合現在幾個季度一直處於負值。當您向我們提供同店銷售的組成部分時，聽起來該季度的混合增長了 100 個基點。我想，是什麼推動了持續時間的積極波動，要么是由於混音方面的比較容易，要么是您在菜單上所做的事情，只是考慮了將混音保持在平坦到積極位置的能力？

Yes. You're right on it starts a little bit with what you talked about a little easier compares from a mix standpoint because last year is when we started to see the headwinds from a mix standpoint. So that's a component of it. Another component of it for the quarter, as we talked a little bit earlier, is we had less discounting during the quarter as well, which also helped from a mix standpoint.

是的。你說得對，從混合的角度來看，你所說的比較容易一些，因為去年我們開始從混合的角度看到逆風。這是它的一個組成部分。正如我們之前談到的，本季的另一個組成部分是我們在本季度的折扣也減少了，從混合的角度來看，這也有所幫助。

And then we just continue to see some positive benefits in our core toast autos as we promoted that kind of at the end of last quarter and into this quarter, and we're continuing to seeing that. And the case of a that we added to the menu and the crunchy taco drive a little mix as well, the new crunchy taco, which we added earlier in the year, but that also helped drive a little mix as well.

然後，我們繼續看到我們的核心吐司汽車的一些積極效益，因為我們在上個季度末和本季度進行了這種推廣，我們將繼續看到這一點。我們添加到菜單中的案例和鬆脆的炸玉米餅也推動了一點混合，我們在今年早些時候添加了新的脆脆炸玉米餅，但這也有助於推動一點混合。

So are you expecting durability of kind of positive mix for the next few quarters then Ira?

那麼，您是否預計未來幾季會出現積極的組合，然後艾拉？

Yes.

是的。

Andy Barish with Jefferies.

安迪·巴里什和杰弗里斯。

Guys, just trying to tease out, I mean, the step down in food costs to low 25% is not something I think the brand's ever seen. So I mean, pricing ramped up a little bit from 1Q. I'm just even thinking sequentially from 1Q to 2Q, but not that much, I guess, to account for 120 basis points sequentially. So is it really the discounting and then the pulling back of the FSIs and then -- did that have a direct effect, I guess, on the traffic numbers? And then also as you turn -- answer the last question, helping boost the mix. I'm just trying to kind of put together all those pieces of the puzzle.

夥計們，我只是想弄清楚，我的意思是，我認為該品牌從未見過食品成本下降到 25% 的情況。所以我的意思是，價格比第一季略有上升。我甚至只是按順序考慮從第一季到第二季度的情況，但我想，並沒有那麼多，按順序考慮 120 個基點。那麼，這真的是折扣，然後是金融服務機構的撤回，然後——我猜，這對交通量有直接影響嗎？然後，當你轉身時，回答最後一個問題，幫助促進混合。我只是想把所有這些拼圖拼湊起來。

Yes. So it's what you talked about. It is a little bit of discounting, obviously, the pricing. But it's a little in the mix as we've shifted our mix a little bit from the bone-in chicken to the entree items, which have more leg and time. That's a lower cost item. And so we saw some mix in that lower our cost as well, which also helped drive a lower food cost during the quarter.

是的。所以這就是你所說的。顯然，定價有一點折扣。但這只是混合中的一點，因為我們已經將我們的混合從帶骨雞肉稍微轉移到主菜，因為主菜有更多的腿和時間。這是一個成本較低的項目。因此，我們也看到了一些降低成本的組合，這也有助於推動本季食品成本的降低。

And I would also add that I think we're doing a better job of sourcing and we've invested in our supply chain team. And that's, as I mentioned earlier, something we're going to continue to do, but certainly just being more pragmatic across the board.

我還要補充一點，我認為我們在採購方面做得更好，並且我們對供應鏈團隊進行了投資。正如我之前提到的，這是我們將繼續做的事情，但肯定只是全面更加務實。

Yes. I want to dovetail on that, if you could lose I think you said with some of the new leaders in those various areas that there's some investments, I guess, with head count and such, but that it starts to turn into a benefit in the 4Q and beyond as the part of the bridge to that 18% possibility in '25? Am I hearing that correctly?

是的。我想對此進行吻合，如果你可能會失敗，我想你對這些不同領域的一些新領導者說過，我想，有一些投資，包括人員數量等，但它開始轉化為利益第四季度及以後作為通往25 年18% 可能性的橋樑的一部分？我聽得對嗎？

That's correct. That's correct.

這是正確的。這是正確的。

And then I guess, just sort of an update in terms of where family meals stand in terms of your kind of everyday value proposition, how you kind of think about that business, how it's been acting over the last few months?

然後我想，這只是關於家庭聚餐在您的日常價值主張方面的最新情況，您如何看待該業務，它在過去幾個月中的表現如何？

It has still remained a little bit under pressure. I mean part of that is because we've been promoting the entree items. But we have seen that we have -- as a percent of our mix, it has declined, but it is a very important part of our value proposition and our positioning because bone-in chicken is a big part of who we are.

它仍然面臨著一點壓力。我的意思是，部分原因是我們一直在促銷主菜。但我們已經看到，作為我們產品組合的百分比，它有所下降，但它是我們價值主張和定位的一個非常重要的部分，因為帶骨雞肉是我們的重要組成部分。

I would also say it remains one of our biggest value drivers. So when you look at the discounting and the couponing the family chicken is one of the highest redeemed. So the person looking for the deal is usually that family chicken buyer. So they are a bit more of the price sensitive. And that is also usually a dinner item.

我還想說，它仍然是我們最大的價值驅動因素之一。因此，當您查看折扣和優惠券時，家庭雞是兌換率最高的雞之一。因此，尋找交易的人通常是家庭養雞買家。所以他們對價格比較敏感。這通常也是晚餐項目。

So in terms of people -- you're less likely to trade out and bring your lunch to work or go to the grocery store to substitute lunch, but you might do that -- you might find that substitution for dinner. So that's also something which, again, is just forcing us to go back as a system to figure out what's the right value equation, what's the right deal to be offering

因此，就人們而言，你不太可能把午餐帶去上班或去雜貨店代替午餐，但你可能會這樣做，你可能會發現晚餐的替代品。因此，這也再次迫使我們作為一個系統回去找出什麼是正確的價值方程式，什麼是提供正確的交易

Sharon Zackfia with William Blair.

莎朗·扎克菲亞與威廉·布萊爾。

I guess two questions. As we think about kind of the new unit products is going down to 1.8 million build-out cost. I mean what are you value engineering? And that is it just a smaller box? Is there anything meaningful you're doing in the kitchen to take out costs? And then secondarily, on the kiosks, the kind of slower role, are you going to have adjusted selling now when you do have the kiosk roll out?

我猜有兩個問題。我們認為新的單位產品的建造成本將降至 180 萬美元。我的意思是你的價值工程是什麼？那隻是一個較小的盒子嗎？您在廚房裡做了什麼有意義的事情來降低成本嗎？其次，在資訊亭上，這種較慢的角色，當你推出資訊亭時，你現在會調整銷售嗎？

Thanks for the question. I'll answer the last one first. So on the kiosk, definitely adding this -- or have the suggestive selling and the additional can add to your burrito, at or change things. So that is all enabled with the kiosk and something that clearly drives check once you get the kiosk in and full adoption. So we're excited about that. We really just wanted to slow down a bit to make sure the customer service was -- we're known for our customer service, and we just -- we didn't want to be that environment where you walk in and you're just greeted by screens. So we saw that we had some room to take a beat and get it right and so we took that opportunity.

謝謝你的提問。我先回答最後一個。所以在攤位上，一定要添加這個——或者進行暗示性銷售，額外的可以添加到你的墨西哥捲餅中，或者改變一些東西。因此，這一切都是透過資訊亭啟用的，一旦您獲得資訊亭並全面採用，就會明顯推動檢查。所以我們對此感到興奮。我們真的只是想放慢一點速度，以確保客戶服務是——我們以客戶服務而聞名，我們只是——我們不想成為那種你走進去的環境，你只是受到屏幕的歡迎。所以我們看到我們還有一些空間可以調整並做好，所以我們抓住了這個機會。

And then as it relates to the build costs, the savings is coming from all over. So the first place I would point to is just reducing the size of the unit. Somehow we got into this world where we were building the units bigger than they needed to be. The dining room is bigger than they needed to be. And in this world where drive-thru and delivery, especially with the third-party aggregators, just continues to grow. We just didn't need that big of a dining room. And so we've reduced that to be about 2,200 square feet. So also at the savings.

然後，由於涉及到建造成本，節省的資金來自各地。所以我要指出的第一個地方就是要縮小單元的尺寸。不知何故，我們進入了這個世界，我們建造的單位比他們需要的還要大。餐廳比他們需要的要大。在這個世界上，得來速和送貨服務，尤其是第三方聚合商的服務，正在持續成長。我們只是不需要那麼大的餐廳。因此我們將其減少至約 2,200 平方英尺。節省開支也是如此。

On the equipment package, we were over specking the equipment package. We were building out some elements of the kitchen bigger than we needed to build as well. And this is an area where Tim, who just joined us leading development, he just came from an equipment provider. And just as he knows that world inside and out, and he's already brought some great ideas, tried this and tried out.

在裝備包上，我們過度關注了裝備包。我們正在建造一些比我們需要建造的更大的廚房元素。這是剛加入我們領導開發的 Tim 的領域，他剛剛來自設備提供者。正如他對這個世界瞭如指掌，他已經帶來了一些很棒的想法，嘗試過並嘗試過。

So seeing savings there. And then the other place is just taking time to be more competitive and to -- in some of the design features we were probably overdesigning the unit and some of the design features quite frankly, weren't modern. And so it was pretty easy to say let's step back and rethink this and then redraw it and simplify and then go and rebid it. And so we've seen some nice savings on the construction costs as well. So it's not one thing. It's a list of many things that are going to get us to that 1.8.

所以看到那裡節省了。然後另一個地方只是需要時間來更具競爭力，並且在某些設計功能中，我們可能過度設計了該裝置，並且坦率地說，某些設計功能並不現代。所以很容易說讓我們退後一步重新思考這個問題，然後重新繪製並簡化，然後重新投標。因此，我們也看到了建築成本的節省。所以這不是一回事。這是讓我們達到 1.8 的許多事情的清單。

Thank you. Ladies and gentlemen, we have reached to the end of today's question-and-answer session. I would now like to turn the call back over to Liz Williams for closing remarks.

謝謝。女士們、先生們，今天的問答環節到此結束。我現在想將電話轉回給莉茲威廉斯，讓其致閉幕詞。

I just wanted to thank everyone again for joining us today. We're really pleased with the results for this quarter, and we look forward to speaking with you in the next couple of weeks and months ahead. So thank you.

我只是想再次感謝大家今天加入我們。我們對本季的結果感到非常滿意，並期待在接下來的幾週和幾個月內與您交談。所以謝謝你。

Thank you. The conference of El Pollo Loco has now concluded. Thank you for your participation. You may now disconnect your lines.

謝謝。El Pollo Loco 會議現已結束。感謝您的參與。現在您可以斷開線路。