Brian Vaccaro: Just circling back on the comp components at Cheesecake Factory, Matt. I think you said the mix was down in the low 4s, obviously a much larger drag versus your — your peers and what we’re typically hearing. Can you just remind us what the pieces of what’s driving that kind of what the underlying dynamics are there? And then how you see that playing out or normalizing over the next few quarters?
Matt Clark: Sure. That’s right. It’s in the low 4s. About 1% of that is just the optics of the to-go and how we count that. So, you’re about 3%. And just as a reminder for everybody, that’s about half of what it was really 9 months ago. So what we saw is really outsized purchasing, things like alcohol attachments in ’21 and ’22. So we’re still currently running, we call them incident rates, right. It’s how much of each type of product the guests are buying. Slightly above 2019 levels. So people aren’t really regressing. They’re just returning to, I think, normal behaviors. So we anticipated that it would be at this level in Q1. So it’s pretty predictable. So we feel good about our estimates going forward. Q2 will probably come down even a little bit more, Q3 a little bit more. By the time we get to Q4, it’s going to be pretty close to normal in our models today.
Brian Vaccaro: And on the margin front, I wanted to ask about on labor, labor per operating week, at least on our math was down between 1% and 2% year-on-year, it looked like. Can you even speak to some of the efficiencies? Is there any way to quantify some of the efficiencies that you’re seeing? I know sometimes that can be difficult. And then within other OpEx, also some pretty nice leverage, despite some of the rewards marketing in that line, too. So is there anything worth calling out or highlighting in that line?
Matt Clark: Well, on the labor part, Brian, this is Matt. We are seeing extremely good retention levels at the hourly level as well as the management level. And so that does drive basically productivity but also very specific areas like overtime, like training, where we’re seeing year-over-year improvements that are meaningful. I think on the other ops line, as we noted, I mean, natural gas certainly is a little bit of it. And I think that we have some savings that we’ve been driving through our supply chain and some of the to-go supplies and things like that. So it’s been a focus obviously, the other OpEx was a little bit bumpy, so we’ve been paying attention to that and I think our efforts are paying off.
Operator: Our next question comes from Jim Salera with Stephens.
Jim Salera: I wanted to drill down a little bit on North Italia. Can you just walk through the day part trends, maybe how customers are interacting with the brand, lunch versus dinner day part?
David Gordon: Sure. Jim, this is David. I think that it’s been pretty steady and stable. It’s probably about a 35%-65% mix lunch to dinner at North and has been that even prior to our acquisition. One of the areas of growth at North I think that’s interesting to point out is just the off-premise growth over time. Off-premise sales at North were 14% in the quarter which I think is the highest quarter that we’ve had. So we’re pretty excited to see that. I think our partnership with DoorDash some of the marketing benefit we get has been helpful at the North but as far as day part mix, it’s been pretty steady and remains very steady.
Jim Salera: Okay. That’s great. And if I can ask a follow up just on the new units, I believe slight beat versus street plus reiterated guidance which is all great. Are you seeing the permitting environment improve or anything behind the scenes? Maybe you guys have kind of extended out expectations. I know when we’ve talked with other operators, some of them still have some permitting issues and other ones seem to have gotten around that. So any color there will be helpful.
David Gordon: Sure. I think we feel confident in the up to 22 restaurants this year and permitting in some cities maybe still a slight challenge but nothing like it was 12 months ago. Latest update was we had a restaurant in Houston that was having permitting challenges but those are moving quickly. So some of those tougher cities maybe are still a little bit of a challenge but nothing is going to keep us from hitting the target for this year and certainly so much more stable than they were even 12 months ago from permitting to equipment, supplies, et cetera and even labor force to actually work on construction, we feel pretty confident.
Operator: Our next question comes from Jon Tower with Citigroup.
Jon Tower: Maybe I’ll just start on the marketing side. I know as a percentage of your total revenue it stepped up by about 30 basis points in 2023 or about $10 million in total. And I think for some of the 10K suggested rewards was a big driver of that. But I’m just curious to get your thinking around the spend in 2024 and do you feel like there’s any sort of need to respond in terms of building up your brand awareness in front of consumers in the face of what’s going on across the industry with many other casual dining concepts out there blasting the airwaves right now with kind of price point promotions and building brand awareness that way?
David Gordon: Well, I think I’ll just start by addressing again the second half of your question. This isn’t the first time that we’ve seen our competitors have a heightened promotion environment and we are pleased with our performance historically during those times. And even if we look at what, as Matt said towards the end of the quarter, how strong our traffic was, we certainly are not going to change our promotional environment and become the concept that’s doing more discounting because of what we see in the marketplace. So, our plan is to stick to our knitting, continue to learn from the rewards program, continue to look at all 3 phases of that program, the published offers and the marketable offers throughout time and leverage the data as we continue to gather it, to be as strategic as possible with our marketing to build on the one-to-one relationship that we’re hoping to continue to have with our guests to drive some incremental revenue throughout that rewards program and do it at a level that’s margin neutral for us.
Jon Tower: Got it. In terms of thinking about the rewards program itself, I know you had mentioned it’s early days and you’re not necessarily, or at least you talked about the idea of having relatively low expectations for it. However, it seems to be exceeding the expectations in terms of sign-ups and such. Can you just talk about perhaps how it might be impacting, are you seeing greater frequency of use from these consumers early on in the program, or are you seeing greater spend when they’re coming in versus what you were anticipating?
