Operator: Our next question comes from Danilo Gargiulo with Bernstein.
Danilo Gargiulo: Good morning. So Rick, you mentioned that the ability to price below inflation is giving Darden the ability to grow faster than the market in terms of sales and traffic. So, are you expecting the same momentum to continue if inflation decelerates and food at home inflation perhaps increases at a lower pace compared to the food away from home inflation?
Rick Cardenas: Well, our strategy has been this strategy for quite a while, and we plan on sticking to it. It’s really helped us over the long term on whether inflation has been high or inflation has been low. If inflation comes down or things slow down, a lot of our pricing is already built in for next year based on where we are right now. And so, we’ll be able to react accordingly. In the long run, we plan on pricing below inflation. But in any 12-month period, it might be a little bit higher, a little bit lower than inflation. That said, we believe that our scale advantage gives us the opportunity to find cost savings so that we can price below inflation in the long run, to drive a better value for our guests. And as we said earlier, guests appreciate value, especially when or if the economy slows down a little bit, they go for places that they get a great value and they get great consistent experiences, and that’s what we intend to provide.
Danilo Gargiulo: Thank you. And maybe, Raj, what caused the marginal deceleration in expectations on net new units? And if you can also comment on your recent comment of strong returns in the new units and that you’re going to be a little bit more selective. So, can you share how the real estate strategy is evolving over time?
Raj Vennam: Yes. So a couple of things. The new units, I think we talked about, part of it is just the construction delays and the challenges we’ve had. And we are still opening quite a few. I mean, our expectation for this year is approximately 55 new openings. So, we’re opening quite a bit. As far as the comment on the returns, when we look at our new units actually — especially the recent openings have actually outperformed on the top line more than we expected going into. So, they are actually opening at most of our brands. They’re opening at volumes that are exceeding what we would have estimated going into the — when we approved the capital for the project. So overall, we always had a lot of headroom in our — in terms of the returns versus our cost of capital. And so, we are exceeding the hurdle by a wide margin even with the increased construction cost.
Operator: Thank you. Our next question comes from Dennis Geiger with UBS.
Dennis Geiger: I wanted to ask one more on margin and maybe Raj, if there’s any update to how you’re thinking about holding on to gains longer term that you’ve seen since the pandemic? I know you’ve recently kind of spoken more to a long-term total return algorithm rather than sort of an annual margin growth number. But just curious if you have any new observations or thoughts on sort of longer term margin trajectory, given what you’ve seen recently?
Raj Vennam: Yes. Dennis, I think we’ve talked about this year — we’ve been purposeful and deliberate in actually choosing to price where we price, right, over the last few years because of the gains we have had versus pre-COVID. Our intent would be to try to grow from these levels. But in a given year, it can be different. Ultimately, we do go back to that 10% to 15% TSR. That’s the EPS growth plus the dividend yield. And how we get there, any given year might be different. But from where we are starting at the end of this fiscal year, we expect to build margins over time.
Dennis Geiger: That’s great. I appreciate that. And just one more, just on the 24 new openings, can you speak to whether the breakdown by brand will look similar sort of to what you’ve seen in prior years? Thank you.
