Irene Nattel: Understood. Thank you. And then just switching gears for a moment to M&A. You mentioned that you’re certainly having a lot of very interesting discussions. Can you talk a little bit about sort of the tone of the discussions and any changes in expectation around valuation?
Darren Rebelez: Yes, I don’t want to get too deep into any conversations we’re having specifically there. What I would say is that we’ve seen a real acceleration in the number of sellers that are out there right now, and so we’re in varying discussions with each of them and a lot of those valuation-type discussions really depend on the situation the sellers in right now in the competitive landscape from a buyer’s side. Certainly I would expect rising interest rates to have an impact on valuations at some point. It just depends on who those buyers are and what their access to capital is and the strength of their balance sheet today in given time. But that’s my expectation here in the foreseeable future is with interest rates where they are, I’d anticipate valuations start to creep down.
Operator: Thank you. Our next question comes from the line of John Royall with JPMorgan. Your line is now open.
John Royall: Hi guys. Thanks for taking my question. Good morning. So, just a broad one on capital a little. You guys have built cash over the past few quarters, you have $415 million of cash right now on your balance sheet at least as far back as my model goes, I think that’s a record. Steve mentioned I think $800 million in liquidity and the balance sheet is in great shape. So any thought on acting on your buyback authorization here or really is it more about kind of keeping some dry powder around given your commentary on acquisitions?
Steve Bramlage: Yes, well, I think it’s all of those, John. We’re always talking about what’s the right way for us to deploy the capital. Certainly, I think the cash number is a record as well. We think so that we’re fortunate to be in that position at the moment. But there is no doubt in the very near term it’s largely driven by just the timing of our capital spending and the PP&E that we’ve guided to where we’ve had a light first half of the year for the reasons Darren mentioned before. And so we will spend a disproportionate amount of that PP&E guide here in the second half of the year. So, I do think there’ll be a draw on the cash balance seasonally. But, third quarter is usually our lowest cash flow generation quarter anyway, it’s just because of the winter in our geography.
So a lot of that is already earmarked for second half capital spending, but we are certainly conscientious of the fact that the company’s profitability remains very strong. And at some point, it doesn’t make sense for us. So obviously just sit on a very large cash balance and so we’re going to continue to look at the repurchase opportunity that’s out there, but just going back to our broader capital allocation right. And anything that we can invest and that we feel confident, it’s going to drive EBITDA, our ROIC accretion is where we would go first. I like our leverage position. So I – we may nip and tuck a little bit on the debt side, but I don’t think we would make a big move there, necessarily we will tend the dividend and obviously – eventually, then we wouldn’t get to share repurchase.
But second half of the year will be a heavier CapEx number for us. And so that’s really primary factor in our thinking of – what we do as a cash balance, we have right now.
John Royall: Okay, great, thanks, Steve. That’s really helpful. And then maybe just another quick one, just hoping for an update on your private label business, unless I missed it, I don’t think you mentioned, yes, this morning and just how that’s trending and specifically wondering if there is no – has been a significant market share pickup due to consumers switching on inflation and if that can be quantified in any way?
Steve Bramlage: Yes, John. We have seen sequential growth in our private label. So kind of being consistent with how we’ve talked about before, we exited the second quarter at 5.4% mix of private brands. I think that was 5.1% in the first quarter. But that number, the way we’ve been talking about is always going to be impacted negatively by tobacco and alcohol to a certain extent. Because we’re getting those consistent quarterly cost increases in tobacco and so we pass those on to the consumer. So tobacco start – mix starts to have an impact on our ability to grow the private label mix. And by carve tobacco and alcohol out of that, because we don’t have any private label products in either of those categories. I just focus on the rest of the store where we have products.
We are a 12% mix on sales. I’m sorry, 10% mix on sales, 12% on units, and 13% on gross profit dollars. So we are seeing the private brand portfolio that have a meaningful impact on the categories that participates in and we’re still growing. We have another 38 items will be rolling out between now and the end of the year and certainly more in the pipeline for next year.
Operator: Thank you. Our next question comes from the line of Krisztina Katai with Deutsche Bank. Your line is open.
Krisztina Katai: Hi, good morning, and congrats on a nice quarter. Can you make some comments on the value that you bring in your various day parts relative to QSR competition? Can you just talk about the price differential of your offering in light of inflation that is still running high? And it sounds like your peers are mostly passing through these costs, so is that providing an opportunity for Casey’s to widen the gap as inflation eventually starts to moderate and you can gain more share?
