Darin Harris: So I’ll start and I’ll let Brian finish. Our focus, as I said, is 120 restaurants in three years and get to 90% franchise by the end of 2026. And so although we think this is not a guide, we think we’ll do at a minimum 30 to 40. If we’re not finding the right operator or the right deal, we’ll slow it down. But, the other thing is like we did this year in 2023, we sped it up because we had great deals, great operators and the right prices. And these transactions were accretive. So I’ll let Brian add to that.
Brian Scott: Yeah, we did not include it in the guide because we just don’t have the perfect line of sight to the timing and the magnitude of the impact. So, I need to get back to you on the D&A impact. So, I’ll make sure we try to circle back on that before we finish the call here so we can give you some color on how that may influence it. So what I — as we’ve, I think we’ve talked about in the past here, when you think about the refranchising, it’s that trade-off of obviously selling EBITDA, we pick up royalties. If we use the proceeds to repurchase shares, we pick up earnings benefit from that. We reduce our field G&A over time as well. And then what’s really important is that we have strong operators that we’re refranchising with, whether existing or new, so that we can add more development agreements that we think is really important to driving long-term accretion of the business beyond the benefits of being asset light.
That’s a really important strategy. So I’ll circle back with you on the D&A, just as an estimate, it obviously varies by store.
Jake Bartlett: Great, And I know there’s a little bit of guidance in terms of what you provided ICR last year in terms of the first 120 stores. But I guess, is that relevant for the next 100 stores? Or is that something we should kind of use as a guide?
Darin Harris: Yeah, we’ll update it. I think that’s the basic guide I would use until we update it at ICR.
Jake Bartlett: Thank you so much.
Operator: Our next question comes from a line of Chris Carril with RBC Capital Markets. Please go ahead.
Chris Carril: Hi, thanks for taking the question. Brian, I think you briefly just referenced this, but could you provide any more insight on synergies from Del Taco? Is there anything you could point to with regard to opportunities around G&A, supply chain, or any other areas you could point to? Thanks.
Brian Scott: Yeah, on the G&A side, we are still working through some areas where we can consolidate. We’ll get more operational efficiency through consolidating more of our systems. So there’s a lot of work that’s already been done that in the back half of fiscal ‘23, that you’ll see the flow through into ‘24. So I’d say the biggest work efforts have already actually been accomplished. It’s just you’ll see it in the full year 24 numbers. And then, Darin, on the commodity side and other, maybe you can cover that.
Darin Harris: Yeah, what we’ve seen is obviously we’ve guided to commodity costs and those commodity costs include some of the benefit from our purchasing and scale that we’ve received at both Jack and Del Taco. So those synergies numbers are in there. We will exceed our synergy numbers that we targeted when we made the Del Taco acquisition in 2024, will be north of $15 million dollars in EBITDAB benefit as a result of that. A lot of that has been picked up in commodity costs already, but some of it is in overhead and other areas like, public company costs. And then we still think there’s a benefit as we finish our enterprise system in the IT area and we get shared systems and POS over both brands over the next couple years.
Brian Scott: Yeah, one last thing I’d mention is if you actually look at our G&A guide, we just get to full year, we actually expect to exit ‘24 on a slightly lower run rate of G&A than we’re starting. So it’s just a good example of how we’re still extracting more benefits from integrating the companies.
Chris Carril: Great, thank you.
Operator: Our next question comes from a line of Brian Harbour with Morgan Stanley. Please go ahead.
Brian Harbour: Yes, thanks. Good afternoon. I just had a clarification question on the pricing. I think that the number you said for Jack in the Box for the fourth quarter, I think it was similar to the prior quarter if I heard that correctly. I thought there was kind of some pricing roll-off. So I guess my question was just, did you already take kind of some a new layer of pricing and then, as you think about that that 6% to 8%, is that going to all come right when the wage change happens or how should we think about that from a timing perspective?
Darin Harris: Are you asking on the company-owned side or the franchise side, Brian?
Brian Harbour: I believe the number you gave was on the company-owned side.
Darin Harris: Yes, company-owned side. I mean we’ve balanced it. We typically balance it and we’ve taken pricing throughout the year. And so we will continue to do that and take it over time, except for in California, we’ll ramp it up a little more aggressively prior to April. So we definitely will look at taking price at the right times across the board. During last year we took price more frequently. Typically we take it quarterly, but we’ll take it when we need to as we do that over the next year.
Brian Harbour: Thanks.
Operator: Our final question comes from the line of Jon Tower with Citi. Please go ahead.
