Bob Wright: Yes. Thanks. Thanks. We’re excited about that. I mean it’s the best of both worlds because of the overall top-line growth we simply get more flow on the percentage contribution made by all of our shops. And then of course the net average higher contribution in a full year of 3%. It’s a meaningful impact to our brand fund. So it’s exactly the right question. And one that David Daniels and the rest of the team are asking ourselves as well, we won’t go into the specifics of exactly where we’re investing that money. We think that’s part of our competitive advantage in our digital space. But I can tell you that, you would you would see us exploring the distribution of those investments across media as well as up and down the funnel as we as we go higher up in the funnel to more awareness driving you would use different media to do that.
And if we remain consistent or maybe even increase or decrease our spend deeper in the funnel, then we’re going to go for more of that traffic driving activity. I think what you see as a consumer is a propensity to want to continue to balance that and do more of all of the above to the extent that they deliver at least three to one, we love to get to five to one on our return on investment. Steve mentioned, the impact on our shop margins at the other operating expense levels, primarily driven by the brand fund contribution, but the fact that we’ve got the leverage throughout the rest of the P&L, we expect any incrementality in here to be margin expansive. And so far we’re very, very pleased with that. So I think there’s a lot more we can do and we know that at 3%.
We’re still well behind most of the industry. So as we learn how to do it well, we’re going to we’re going to keep pushing.
Todd Brooks : Okay, great. Thanks, Bob. A few follow-up on these may be more of Steve’s ally, you talked about G&A being 10.1% of system-wide sales in the quarter. And I think you’ve talked about this being — there is a period as we’re going through refranchising where this will reach a peak level and then start to lever going forward. Where are we in that process? And are we at a peakish level here at just north of 10%? Or how should we be thinking about how this tracks over the course of 2024?
Bob Wright: Yes. I think that the G&A for us is important, because it reflects an investment that we’re making in our growth. And there’s the development piece is certainly embedded in that in that G&A number, as we continue to put the infrastructure in place to trigger and launch those new units that we’re expecting. And as we’ve also kind of made the transition from refranchising some of our shops, you tend to see some of the G&A impact there. We are, I would suggest in a year of 2024, an another year where you’re going to see probably some of that close to double-digit G&A as a percent of our company sales, you will start to see some of our system sales numbers though start to move well below that number of 10%. So if that’s exciting for us to see, because as we get into 2025 and as we get to 2026, you’ll start to see those G&A as a percent of system sales dropped even further as we get those new units opened up.
So it’s exciting for us, because that’s the business model that we’re building. And that’s a business model that’s going to create the value.
Todd Brooks: Okay, great. And then just a couple of education questions, can we talk about what the value of the 53rd week was in the fourth quarter? And sometimes it matches up where it’s turns into a higher volume period for people. Sometimes it’s a below average week from a sales standpoint. And then there’s margin repercussions of that. Can we just talk about what the contribution from the 53rd week per share?
Steven Cirulis: Well, just to remind everyone for us that 53rd week included both the Christmas holiday as well as New Year’s Eve. So from a system wide sales standpoint, the additional week actually added dollar, right? So we added about $7.5 million, $7.6 million in sales even though it’s a lower volume week. So on a average weekly sales basis, it probably was an impact — a negative impact of about $500, meaning if it were a regular week, right, instead of kind of a slow holiday week, our average weekly sales would have been better. So, it had and related, right, when you’re getting lower volume and you’re going to see some shop margins impact from that as well.
Todd Brooks: And is that something with the shop margin impact, because we already exit at such a robust rate with the impact that we’ve given there, and if there’s a little bit of a drag period, not much closer to the 16% hurdle?
Steven Cirulis: It was just a slight headwind on shop margin, not much but it did have a bit of a drag because we do have some good flow through there. And just to keep everyone kind of aligned for how we’re thinking about things going forward, as we’re going to report comps and we’re going to report comps for 2024 on a calendar aligned basis or a trailing 52 basis. So that, the holiday weeks aligned for the most part those that are repeated in the same weeks year-over-year, and everybody kind of goes through these the 53rd week every five or six years, and so this is one for us. Just to remind everyone as well our same-store sales for the quarter four did not include the 53rd week. But our AUVs, our system sales are shop margins included the 53rd week for 2023.
Todd Brooks: Okay, perfect. And just a final housekeeping one, and then I’ll jump back in. How do we think about tax rate for fiscal 2024, both how we would use it for adjustments to adjusted EPS and adjusted EBITDA? And then on a reported basis, I assume it will still be relatively de minimus.
