Chuck Grom: Great, thanks a lot. Happy Thanksgiving.
Bob Eddy: You too.
Operator: The next question comes from Mark Carden from UBS. Mark, your line is open, please go ahead.
Mark Carden: Good morning. Thanks a lot for taking my questions. To start, just given the current inflationary environment and what your two largest warehouse competitors have done to date, has there been any changes to how you’re thinking about the pacing for your next membership fee increase? Thanks.
Bob Eddy: Hi Mark, thanks for being on the call today, and thanks for the question. You know, we haven’t given a tremendous amount of thought to a fee increase at this point for two reasons: one, our largest competitor hasn’t done it yet, and we would not do it unless they do it; and two, we talked about the co-brand transition, that is the most important thing we will do next year, is get that right. I don’t want to mess that up with a fee increase, so I think at a minimum, we’re waiting until both of those two things happen. Once they do and the smoke clears, we’ll figure out what we will do. The one thing we haven’t talked about so far is the dollars per member we’re seeing already. Over the past few years, we’ve already seen the effect of a fee increase, right – the average dollars per member is well over $60 at this point, it’s up about $5 in the last few years, so we’ve mixed our business up to really look like it has had a fee increase when we haven’t changed the sticker price to our members, so it’s sort of an unappreciated thing that we’ve been able to do over the past few years, and our membership team has done a fantastic job doing that.
Mark Carden: That makes sense. Maybe a bit of a follow-up to that, how are you thinking about premium penetration in the current environment? Today, it seems like you have a lot of momentum there, but would you expect shoppers to upgrade less frequently if some of these current economic pressures continue, just given sticker shock? Would you do some market upgrades any more aggressively? How are you thinking about that?
Bob Eddy: I think that comes back to value, and we look to provide outstanding value every day. IT also comes to one of the core reasons we’re doing the co-brand transition, right – that has been the fastest growing part of our premium tier memberships over the years, and with the new value prop that we’ll announce in January, we only expect that to get better. As Bill mentioned, we’ll probably pause on the growth in Q4 given the federal laws around what we have to do around a card transition – we have to stop acquiring and have to put down our pencils for a little bit, but once we get the conversion done, I expect that the excitement around this program will really help us grow premium tier memberships quite nicely in the future.
Mark Carden: Great, thanks so much, and good luck.
Bob Eddy: Thanks Mark.
Operator: The next question comes from Rupesh Parikh from Oppenheimer. Rupesh, your line is open, please ago ahead.
Rupesh Parikh: Good morning, thanks for taking my question, and also congrats on a nice quarter. Just on the food inflation front, as you guys look out for the balance of the year and into next year, it sounds like you expect moderation. Any sense whether moderate to, I guess, low single digit type levels, or just any thoughts in terms of how you see it playing out at this point?
