Lauren Silberman: Great. Thank you. And then just a quick one from marketing. The $35 million to $40 million range that you’re currently running, is that the right run rate, or should we expect a pickup? Thank you.
Raj Vennam: Yes, Lauren. I think we’ve basically said we’re going to be within 10 basis points to 20 basis points as a percent of sales versus last year. So, any quarter, you should be — if you look at last year, and we should be within 10 bps to 20 bps of that.
Lauren Silberman: Thank you very much.
Operator: Thank you. Next question is coming from Andy Barish from Jefferies. Your line is now live.
Andrew Barish: Hey, guys. Good morning. Just one clarification. On the unit side, you used the term reopens. Were those relocated units? And then, I’ve got one other follow-up question, please.
Rick Cardenas: Yes. Andy, I think it was four. We had a couple of relocations. We had a couple of restaurants that we reopened after being temporary closed due to fires. So, that’s really the bulk of those four.
Andrew Barish: Okay. And just a quick update. Last quarter, you talked about more synergy realization potential at Ruth’s Chris, but some of that going to be reinvested. Has that reinvestment started in earnest, or is it more going to come kind of in the back half of the year as supply chain gets integrated and things like that?
Rick Cardenas: Yes. Andy, some of that reinvestments is already starting and some of it happens as the supply chain converts. One of the investments we made was an improvement in [indiscernible]. I don’t think that’s in every restaurant yet. Another one of the investments that we talked about we will be doing in December, and that is for their team closing on Christmas Day. So, there’s still some things that are coming in, but we’re consistent, we’re on track with our timeline and we still expect accretion to be consistent with what we shared previously. Even with those investments, we’re making for our team members and our guests.
Andrew Barish: Thank you.
Rick Cardenas: Sure.
Operator: Thank you. Next question today is coming from Gregory Francfort from Guggenheim. Your line is now live.
Gregory Francfort: Hey, thanks for the question. Rick, just one more on marketing. Can you remind us how the composition of that has changed versus pre-COVID, either maybe traditional or digital or other categories? And how you think about the returns across those channels versus a few years ago? Thanks.
Rick Cardenas: Hey, Greg. Yes. Versus pre-COVID, we’re a bit more digital, partly because LongHorn really came off of television when we were on — before COVID LongHorn was on TV. So, we are a bit more digital in overall mix. Olive Garden’s mix isn’t substantially different than before. They did come off a little bit of television, but they also came off a little bit on the digital side. We have pretty good analytics to tell us the returns on each of those things. And the good news is, during COVID we tested some more digital, and we were able to because we didn’t have much media on at one time. When we started turning it on, we were actually able to see what those returns are. And that was one of the benefits of the COVID. We were able to test a little bit more, and we’re testing other things on the digital front now to see if there’s some things that we’ll add in the future.
Gregory Francfort: Thanks for your perspective.
Operator: Thank you. Next question today is coming from Andrew Strelzik from BMO. Your line is now live.
Andrew Strelzik: Hey, good morning. Thanks for taking the questions. My first one just wanted to follow up on some of the value perception, I guess commentary that you made, certainly relative to other restaurants and certainly relative to inflation, makes a lot of sense. But I guess when you broaden the view on that and look at food at home or grocery, and you see some of the larger grocery chains talking about food deflation and more promotions and things like that, does that factor into your calculus at all, or how do you think about the value perception relative to that? If you have any work on that or anything — any thoughts would be great?
Rick Cardenas: A couple of things. As we’ve mentioned before, dining out is really more than just about the sustenance. It’s about getting together with your family and friends to enjoy a meal. And, as Raj mentioned earlier, we still have a very big gap in the pricing that we have taken over the last four years versus what’s happening in retail. I mean, I would say, if retail starts to do discounts or other deals, it’s probably because they’re not moving product. And so, that helps us on the — on our cost side. So, we don’t really look very much at the difference between food at home and food away from home, partly because, as I said, people think about, I want to go out to eat, and then they determine where they want to go out to eat. And so, we haven’t really seen correlations in the difference in food at home, food away from home over the long, long term.
Andrew Strelzik: Got it. Okay. That’s helpful. And then just one other question, on the Ruth’s integration, any surprises or learnings as that’s progressed? And, I guess, the balance sheet still is in very, very good shape. So, would that integration either preclude you from making another acquisition, or how are you thinking about the balance sheet from here? Thanks.
Rick Cardenas: Let me start by saying we’re really pleased with the integration and the transition that we’ve had. We’re six months from the close of the transaction. We still have a few changes we have to make at the restaurants, and they have to absorb them over this next six months. But that doesn’t preclude us from other things. And we’ll continue to talk to our Board and determine what the right use of our capital is. As you mentioned, we do have a strong balance sheet, but we’re going to continue to work on this until something else comes along.
Andrew Strelzik: Great. Thank you very much.
Operator: Thank you. Next question today is coming from John Ivankoe from JP Morgan. Your line is now live.
