Scott Morris: We’ve had – we’ve continually added fridges in the channel, which is helpful. Quite honestly, ne of the biggest ones is it has been the most disrupted supply chain we probably had. I mean, I – it’s just the facts around it. So I think that as we’re having – and the other thing is if you miss a shopping trip in pet, you’re not coming back there next week. You missed a shopping trip in grocery, you may have a chance to get a consumer back. It’s – the average shopping trip for pet specialty is like 30-something days where a grocery store could be twice a week, right? So it’s just – it creates a really tough dynamic to recover from a sales standpoint. Now – and we were just not in a good spot for a very, very long time, and it actually has taken a little bit longer to recover kind of getting in-stock and pet.
So I think that, that’s been a part of the dynamic. Now I think overall, again, I go back to the advertising that’s on IR is we know it’s incredibly impactful with some of the best advertising we’ve ever had. And I think that’s going to drive across all channels over the course of the year.
Mark Astrachan: Got it. Thank you.
Operator: Thank you. Our next question comes from the line of Cody Ross with UBS. Please proceed with your question.
Cody Ross: Good morning. Thank you for taking our questions. I just had two quick clarification questions and then one longer-term picture question. First, on the mix that you talked about, 3 to 5 points you usually get a benefit. Is that in your guidance for this year here for sales to grow 26%?
Todd Cunfer: Yes.
Cody Ross: Okay. And then secondly, on the EBITDA, you guided 1Q EBITDA to be negative with an improvement in 2Q and essentially all of the EBITDA for ’23 to be generated in the second half. Does this mean that your cash burn will be greater in the first half as well?
Todd Cunfer: Yes. Yes, it will be greater in the first half than the second half. That is a correct statement.
Cody Ross: Okay. And then just more longer term, you consistently delivered against your top line goals each year as new competitors have come and gone. Do you think a more formidable competitor in the category would help accelerate growth in the category? Or would it impede your ability to grow and reach your goals? Thank you.
Todd Cunfer: And what we’ve seen in other categories is the arrival of another competitor if they do a good job and they spend money obviously increases the size of the total category. And that’s viewed as a good thing. Most leading brands if they continue to execute well, end up with a smaller share of a larger market, but a larger business in total. So we’d have to see what the quality execution has been. What you can see from the competitors who come at us in the past, is they really haven’t been additive to the category, and they’ve ultimately ended up leaving because they just didn’t have the velocity to justify the space they were taking up and certainly didn’t produce the economics that they were expecting. So it really depends on what the quality of the execution is. But I would suggest that this is a category that’s going to grow very fast and more investment is going to make it even bigger, faster.
Cody Ross: Great. Thanks, Todd. I’ll pass it on.
Operator: Thank you. Our next question comes from the line of Robert Moskow with Credit Suisse. Please proceed with your question.
Robert Moskow: I believe that there are more questions, but maybe just a couple of quick ones. In your 2027 number that Jason was talking about, I think you have a $200 million CapEx number in there. Is that considered run rate CapEx? I guess it isn’t. Is it like how much of that is still growth and do you think by 2028, it’s a lower CapEx number? And maybe you could help us a little bit on is any of it related to fridges, I would imagine that would – that type of spending would continue?
