Raj Vennam: Yes. I think you’re going to see a little bit more of Olive Garden openings just because they have the best returns in the portfolio, and they have — we’ve shared that we think there is more opportunity for growth coming out of the pandemic. So, you might see 20ish in for them and then mid-teens for LongHorn and then everybody else making up the rest.
Operator: Our next question comes from Jeff Farmer with Gordon Haskett.
Jeff Farmer: Great. Just following up on margins, some of the stuff you just discussed. But you did touch on marketing but your restaurant expense and G&A as a percent of revenue are running at looks like roughly 100 basis points below pre-COVID levels. Do you think that lower cost structure of both the restaurant and corporate level is sustainable moving forward?
Raj Vennam: Yes. We always focus on — that’s the opportunity for us. When we talk about our scale benefiting, we always are trying to take costs that are not directly impacting the guest. So, that’s really restaurant expenses and G&A are the two places where we think our scale benefits us the most in terms of being able to take costs out, leverage our scale. And so, we do expect those to continue to be — maintain a wider gap to pre-COVID, positive gap.
Jeff Farmer: And then, just one more on the — follow-up on the lower income customer sort of demand profile. You’ve obviously pointed to some slowing demand there, but I’m just curious how that manifests itself? Is that sort of reduced visit or check management? How does that show up when that lower income customer changes their behavior?
Rick Cardenas: Yes. In the past, we had talked about our lower income consumer, over the last few quarters, the mix shifting down a little bit, but still being above pre-COVID. The good news is we haven’t seen a material change in mix from the last time we talked to now in that lower end consumer. But if it manifests itself, it generally starts with managing check. Generally, consumers will manage their check first, and then they’ll manage their visits later. And so far, we really haven’t seen a whole lot of check management. So, that tells you, based on what I said earlier, consumer sentiment was pretty bad in ’22, but consumers still spent. And as people shifted to restaurants, we benefited. So, we haven’t seen it yet. We may see it.
And when we do, it will start at check probably and then it will impact probably more likely impact our lower-end consumer brands, not that they’re lower end brands, they just have a bigger mix of lower-end consumers, and it will impact less our high-end brands. But that’s the benefit of a portfolio and the portfolio that we have that we can withstand shocks to one segment of the population.
Operator: Our next question comes from Andrew Charles with TD Cowen.
Andrew Charles: One quick bookkeeping question. Raj, as we think about 2023 EPS guidance, is roughly $390 million still the right number for G&A?
Raj Vennam: Yes. That’s right.
Andrew Charles: Okay. And then I realize that you guys are going to provide 2024 guidance on the 4Q call. But just in the backdrop of this uncertain macro environment, combined with inflation has just proven stubbornly high. Can you talk about your confidence in the ability to deliver 10% plus TSR in 2024 and just the different avenues you could take to get there if we were to see a slowing consumer backdrop? Thanks.
