David Palmer: Actually, on your slide deck, I just had a quick question on Slide 20. Your food inflation outlook looks like it’s less inflationary on many of those line items, beef, chicken, dairy oil versus what you had previously, but your food inflation outlook is still the same at 7%. Is there some offset to what we’re seeing? And I’ll pass it on.
Rajesh Vennam: Yes, David, it’s really the fact that last 2 quarters were 15% was in the first quarter, second quarter was 13%. So as you look at the back half, really, Q3, we’re thinking it’s going to be mid- to high single digits and then Q4 is closer to flat. So if you do that, what that translates into on the year is closer to that 8% to 9% that’s really the difference. I think when we spoke the last time, we expected a step change from the first half to the second half. And we are seeing that. However, it’s not as big as we thought. It’s still a pretty big change. I mean, as I just mentioned, we’re going from mid-teens to high single — mid- to high single digits as we get into Q3 and close it to flat for Q4. So pretty big change, but there were a few there are a few items that are higher than we would have expected, namely dairy, grains and produce, and quite a bit of this is weather-related and so that’s actually baked into our expectations going forward.
Operator: Our next question comes from Jared Garber with Goldman Sachs.
Jared Garber: Great. Thanks for the question. I think this was the first quarter that we’ve seen or the largest quarter of opens at Cheddar’s and maybe several years. So I just wanted to get a sense of an update on the brand. I know it’s a little bit of a lower income skew there as well. So maybe some commentary on the performance there and what you’re seeing from a customer standpoint and if there’s anything in terms of regionality where these new units were opened. Just any update on the brand would be great.
Ricardo Cardenas: Jared, let me talk high level about chatter and talk a little bit about the opening. Cheddar’s has made significant improvements in their business model. versus pre-COVID, even with significant inflation, they had a lot of productivity enhancements with the simplified menu and a streamlined menu so that we felt more comfortable opening restaurants at a quicker pace. Not only that, they have really built their leadership pipeline and have been able to staff all of these restaurants with managing partners that have run Cheddar’s, and we have a pipeline of more ready to go as we open restaurants. So yes, this was our highest quarter of openings for Cheddar’s. We opened 7 restaurants.
Rajesh Vennam: Yes, versus last year. We had 7 restaurants versus last year at Cheddar’s 4 in the quarter. And we — those restaurants are performing really well. So they’re primarily in markets close to where Cheddar’s already exists. It’s not like we’re — we have a lot of restaurants opening in brand-new markets. But we are looking at newer markets to open Cheddar’s in. But as we mentioned early on in the acquisition of Cheddar’s, we thought we had more room to infill markets that they already have restaurants. So that helps us leverage our scale in those markets that helps us leverage our supply chain and our people.
Ricardo Cardenas: But again, high level, really proud of the work that JW and his team have done at Cheddar’s, really proud of the progress they’ve made in staffing their restaurants, building their pipeline, and we’re seeing some pretty strong performance in these new restaurants.
Operator: Our next question comes from Brian Harbor of Morgan Stanley.
Brian Harbor: Maybe just to follow up quickly on the commodity comments. Do you see any kind of risk to the second half just based on some of those items that are — have kind of surprised to the upside recently? Or are those things that can’t necessarily be contracted? How do you feel about that at this point?
Rajesh Vennam: I think there’s always risk. As you think about, that’s why we have a range of 8% to 9% as our assumption going in. We’ll have to see how this plays out, right? I mean some of the stuff, like I have mentioned earlier in my prepared remarks, Q2, the impact on product produce especially led us — no one expected that. It came out of nowhere. It was weather related. There were 2 hurricanes and Florida, 2 hurricanes in Mexico, they just really destroyed the crops. And that cycle stuff is always a risk. We contemplated some of that in our guidance.
Brian Harbor: Okay. And then you made the comment about just sharing some of the lessons from never ending possible at your other brands. What are you thinking about there? Is it kind of a change to promotional architecture? Or are there things you’re not doing at some of those brands that you could be doing to kind of echo never in possible?
