Andrew Wolf: Thank you. And maybe just more for Julie, on the loyalty program, it’s good to hear the launch is well — going well. And I think you’ve got to tie into Dolly Parton through early December with the rocking chair giveaway. But is there any way to continue to — or is that sort of when the relationship with Dolly kind of repeat or ends? And do you have more things to keep the — or are you going to keep it going with her? Like to keep these — getting the sign-ups at a pretty good clip above your plan. And I guess, longer term, based on your experience and what you’re hearing from your — people who are helping you with the program. When do you really expect to really see increased traffic through promotion, really targeted promotions and the other things that can come out of loyalty program?
Julie Masino: Hi, Andrew, it’s Julie. As I mentioned in my prepared remarks, we are really pleased with the launch of the program. We launched the program actually without Dolly, right? And so even when we launched it, guests embraced the program, signed up, really told us that this is something they’re excited about seeing from Cracker Barrel. So then when we added on Dolly that, as I said in my comments, it’s been incremental. And of course, we’re very pleased with the partnership there. She’s an icon, and it’s great to have an icon — pair up with an icon of Cracker Barrel. So the program is off to a great start. It’s exceeding our expectations, but we’ve been modeling in the benefit of that program into this year and into the future.
And we — the team continues to do a great job to actually bring benefits of the program forward given the fact that we are ahead of our plan. So we continue to be excited about it. It’s the early days of it, but we know it’s going to be a differentiator for us going forward and an exciting part of the brand, as we move forward.
Andrew Wolf: Got it. Thank you.
Operator: Our next question comes from Todd Brooks with The Benchmark Company. Please go ahead.
Todd Brooks: Hey, good morning. Thanks for taking my questions. First question, if I may. You were talking in regards to the retail segment, well-managed inventories and really trying to operate as much for protection of gross profit dollars than you are to drive top line. Can you spend a minute talking about the inventory positioning and how we should think about if that’s a potential constraint on retail same-store sales as we’re going into the holiday quarter here? And just trying to get some color around how to model retail same-store sales performance given where the inventories lie?
Craig Pommells: Hi, Todd, it’s Craig. I think we’re really well positioned there. We have — we carry a very wide assortment. So to the degree that demand is higher than we projected that would impact our kind of discount cadence, and we’d be able to think make more margin through that approach. And to the degree that demand stays a bit softer, we would also be managing margins as well. And keep in mind, we also have a lot of different offers. We go through quite a few themes throughout the year. So if one of them is selling at a higher rate than we projected, we can bring in another one earlier. There are different things that we can do to fill in just given the breadth of the assortment that we have. I think the macro picture on this part of retail really gives us confidence that we’re making the right decision to manage the inventory and not end up very long and then having to do a significant amount of — a significant amount of markdowns.
But that would be a problem, candidly, that we would love to have that problem because to the degree that we have the demand, I think we can redirect folks to other items.
Todd Brooks: Okay, great. Thanks, Craig. And then two others, if I can. On the occupancy and other costs, you pointed out on a year-over-year basis, the incremental advertising and some incremental D&A and you pointed to the advertising, working, driving a return, layering in some local TV. What’s the right way to think about that line item going forward? Is the spend that we saw in the first quarter kind of that just above mid 24% of sales level. Is that the right way to model this line and what we could call an investment year or maybe some more offensive spending around marketing?
Craig Pommells: I think it’s fair to say that the advertising line item is going to be a bit higher. I’m not going to assure an exact number, candidly, in part because we’re going to continue to flex that based on our findings, but I would expect it to be higher. There is also a part of the loyalty program. It’s not dramatic, but there is a part of the loyalty expense for the loyalty program that goes through marketing. So that will cause that line item to be a bit higher. And then we’re going to continue to optimize our profitability of our normal media to the degree that, that’s working really well as we’re getting a compelling return. We’ll do more to the degree that we are not seen as compelling of a return, not as profitable, then we may do less. But in general, I would expect marketing to be higher than it’s been traditionally for the coming quarters.
Todd Brooks: So to just clarify on that, if we’re looking year-over-year, up 130 basis points, are you saying, Craig, that because of the success you’ve seen, you expect marketing to actually be higher as we progress through the year as far as — okay.
