Alex Slagle: All right. Thanks.
Operator: We’ll take our next question from Brian Harbour with Morgan Stanley.
Brian Harbour: Yes, thank you. Good morning guys. I wanted to ask about Del Taco sales. And you’re kind of within the annual outlook you’ve provided at this point, but what would be needed to really do better there? Is there more price sensitivity in that business? Is there anything about the customer base specifically, or when do you think some of that mixed drag would perhaps reverse?
Darin Harris: Yes, I think for us, what we found is we’ve had some success early with our Torta promotion, which is a premium bill. And so I think from that standpoint, and then we probably went pretty heavy on our tamale over Christmas with a heavier price than we’ve seen on that product. So I think this was more about the promotional window probably running too long on a premium item. And so that’s really what we believe is the issue that we saw and we also pulled back on some of our marketing dollars. So that’s €“ and then the last thing I would say is we had a heavy promotional activity from our major competitor in the space and the launch of their next pizza. All those things are contributing to it. But overall it was still a very good quarter. We feel great about the calendar in front of us. We feel really good about the value scores that we get from our consumers. So I think this is just overall what I would say a fairly good performance.
Operator: We’ll take our next question from David Tarantino with Baird.
David Tarantino: Hi. Good morning. I had a couple questions around the unit development. And the first one relates to just what you’re seeing on development costs and relative to what you shared maybe at the Investor Day a few years back. It seems like we’ve seen a lot of inflation and development costs and I’m just trying to frame up what level of EBITDA now might be required to generate a similar return given the higher costs? And then I have a second question related to the development.
Darin Harris: Yes, I mean, the entire industry faces challenges with both the inflationary challenges related to cost to build. We have not seen our existing base of franchisees slow down because a lot of this we’ve been able to perform through price or improve sales to overcome some of this. But definitely we’re seeing the entire industry challenged by inflation from a construction standpoint. We are seeing some relief there. And €“ but as we mentioned, the returns are still solid and they’re solid compared to the competition and that’s part of why we’re still seeing existing and new franchisees you want to build.
David Tarantino: And Darin, would you be able to share specifics, I think your range that you shared at the Analyst Day was for a traditional unit 1.7 million to 1.9 million. Where would that be today?
Darin Harris: From a cost to build standpoint?
David Tarantino: Correct.
Darin Harris: Yes. We’ll provide an update at our annual Investor Day, but we’re seeing the same kind of inflation that the industry is seeing.
David Tarantino: Okay. Great. And then…
Darin Harris: The only thing I would add to that, David, is what we don’t have a lot of history on right now is our new prototypes, which are reducing cost as a whole, substantially combined to the history. And so that’s a little bit of why I’m trying to not be as direct in the question because I think that would tell a different story than the number you just quoted because we’ve €“ in that, in the two new prototypes we’ve been able to reduce cost holistically by 15% to 20%.
