Bryan Langley: CapEx, yes. So for next year, as we talk about it, just think about our — the only thing that’s going to cause a step-up. And if you remember from the Analyst Day is the 2 distribution centers that will have to come online. Right now, those are — one’s going to be late ’24, early ’25 and the other one is going to be kind of more middle of 2025. Those are the only 2 reasons that you would see a step investment. Next year, so you’ll see a little bit towards the back half in capital expenditures just for that.
Operator: Our next question comes from the line of Greg Melich with Evercore ISI.
Gregory Melich: I want to follow up on the store openings in the next year. You said that giving yourself some optionalities makes a lot of sense, but they’re still more front-end loaded. Is that because there’s a natural cadence of where you’re already fragment with a store and you’re going to have to do it? And what is that lead time, as you think about flexibility into the back half of next year and beyond?
Thomas Taylor: Yes. So repeat the question again. I want to make sure I understand it.
Gregory Melich: Well, just you were going to do 35 plus stores next year. Now it’s 30 to 35 so I’m wondering how — well if you decide to not open a store, how much in advance do you have to make that decision before the balls are rolling and…
Thomas Taylor: Yes, like 9 months. And so we have the ability to still — we’re not — we’re working on all of our sites for next year. We have optionality to do up to 35 sites, we could push those sites into the following year if we had to, towards the back. So we have optionality on a good majority of the sites, but it takes 9 months to make that decision.
Bryan Langley: Yes. So the ones that are opening earlier, obviously, they’re under construction. We feel good about them. They’re in great locations. And so those are the ones that you want to try to pull in as fast as you can because again, some sales are better no sales to push out. .
Operator: Our last question comes from Justin Kleber with Baird.
Justin Kleber: Just wanted to follow up on the new store performance question. My math would suggest your recent stores are annualizing at maybe $10 million or so in year one. It sounds like you pushed back against that given your comments about the stores being at the low end of your pro forma. So I just want to clarify where you think year 1 sales are going to land for recent stores. And then what type of AAV do you need in order to break even on a 4-wall basis in year one?
Bryan Langley: Yes. So I’ll take the first part of that, and then Tom and Trevor can jump in if they want to add any clarity. Right now, we’re looking at — this year’s class is probably going to average about 13% to 14%. So whenever we say kind of at or below that pro forma range. So I would say that this year’s class is looking at 13% to 14%, which again, we’re still happy with and pleased with given the macro environment that they’re opening. And then I would say from a breakeven standpoint, it really depends on location. It depends on everything. So — because the cost structure among the class can be significantly different. So from a breakeven standpoint, we haven’t really seen that. But most of the time, it’s around $8 million to $10 million, depending on where the location is from a breakeven standpoint, just given the cost structure.
Thomas Taylor: Okay. Well, we appreciate the questions and appreciate your interest. We look forward to updating you throughout the quarter, and we’ll talk to you in the next call. Thank you, everybody.
Operator: This will conclude today’s conference. You may disconnect your lines at this time. Thank you for your participation.
