Tyler Prause: And just one last one here, if I could sneak it in. So I appreciate the G&A guidance — sorry, as far as D&A, how should we think about that for the fourth quarter in the fiscal year ’24?
Jon Howie: As far as from a percentage standpoint or? D&A, I mean, I would take it — I mean, it just trended as it’s trending on a percentage basis.
Operator: [Operator Instructions] Our next question comes from Drew North of Baird.
Drew North: My first one is just on Q4 margins. Is there any way to contextualize the level of restaurant margin improvement you expect in Q4? It sounds as though commodity costs or the cost of sales line should remain very favorable, again, providing a nice tailwind. So I guess, is it right to think we could see a similar level of margin expansion year-over-year as we saw in Q3? Or any other puts and takes we should consider as it relates to the fourth quarter?
Jon Howie: Great question, and thanks for the question. Yes, I think you’re not going to see — it’s going to be more like probably the first quarter because we’re going to see a little higher labor in the fourth quarter that’s going to offset that favorability in the cost of sales as well as higher operating cost. And so the way we’re looking at it, it may be kind of flat to last year’s margin. However, adding on to that about 60 to 100 basis points relative to the extra weeks weighting that we get on that extra week as far as the…
Steve Hislop: 53rd week.
Jon Howie: The 53rd week on the weighted sales on the fixed expenses, we get extra 70 to 100 basis points. So you’re looking at probably 70 to 100 basis points better than last year.
Drew North: And then one, looking ahead to 2024, I guess, with signs, it’s still relatively modest total inflation here in the fourth quarter. I guess, how should we start to think about the inflation backdrop for 2024 for commodities and labor based on what you’re seeing out there today? Maybe if you could provide some context or guard rails on commodity inflation and labor inflation for 2024 and how that is informing your view on taking price next year as you cycle the increase in February?
Jon Howie: Sure. It’s still way too early to tell. So I mean — but what I said earlier was that we think next year is going to be a more normalized inflation year from a commodities perspective. I don’t see labor changing much from this year, so probably in that mid single-digits next year inflation. So that’s kind of what we’re seeing today. But again, it’s really too early, and we’ll give you more input on that when we release our fourth quarter numbers.
Steve Hislop: But you will see us probably get back to our historical before COVID type of price increases with that information Jon just gave you in that 2.5% to 3% range, and we usually do one price increase a year and it will be at the beginning of February is when we do that. So like I said, in that 2.5% to 3% range.
Operator: Our next question comes from Andrew Wolf of CL King.
Andrew Wolf: I want to ask on the development side, a very generalized kind of question on kind of your confidence that you can effectively double new restaurants given such a frustrating environment. I know you have a different plan longer term, but just sort of in terms of stacking the boxes on permitting and making sure equipments around and contractors show up, just the nitty gritty of actually getting the building open?
