Brian McNamara: Hey, good morning. Thanks for taking the questions. I guess two for me on residential. First a question we often get from investors is the breakdown in sales in grills versus the rest of residential kitchen. I don’t expect you to quantify, but can you give us maybe a qualitative picture of kind of how grills look today relative to when you first acquired them?
Bryan Mittelman: This is Bryan. The — I mean obviously the grills are down quite significantly from when we bought them. I think we’ve said before over 50% and I’ll probably viewed at this time. I think it’s fair to in general terms I think about the segment in fourth. I’d say if you think about I’ll call it US domestic indoor premium European or I should say the UK business, the outdoor business and then all else which would primarily be I’ll call it the European Continental European businesses.
Brian McNamara: Got it. That’s helpful. And then secondly on grills again. I’m curious what you’re seeing currently with your retail partners in the category. Are they willing to either add to or at least hold floor space for the category? And if not how do you break in given your relatively small size and brand recognition compared to the bigger players? Thanks.
Tim FitzGerald: I’m not sure if you — with the holding floor space if that was specific to us or Grills overall.
Brian McNamara: I mean it’s specific to the category. But I mean presumably you would need to be a part of that just given your relative size at the moment.
Tim FitzGerald: Yes. I mean I think we’ve focused kind of on product differentiation, some of the new technologies that we’ve had. And I think one of the items that we’ve highlighted here is our connected platform both for master built as well as commodity. That’s definitely something that we think we’ve got a lot of innovation that you don’t see across the grill platform. Also we’ve had the heavy focus on charcoal which is differentiated particularly with the vertical charcoal the Masterbuilt. So I mean I think there’s things that we offer that some of the other players out there do not have. And we think we follow some of the trends of the fuel type which ties to flavor and digital which ties to convenience and culinary. So I mean I think those are some of the things that we think some of the retail partners recognize also and I think we’ve had some success with certain partners there with picking up floor space over the last 12 months there and probably going into 2025 as well.
Operator: [Operator Instructions] The next question comes from Walt Liptak with Seaport Res. Please go ahead.
Walt Liptak: Hi, guys. Good morning, guys. I want to just back up to Bryan when you gave the guidance and can you just repeat the sales guidance for the year? I think you said the sales — you were expecting sales to go higher to grow this year and margins as well as cash flow to be higher. Is that correct?
Bryan Mittelman: Yes. Let me find my place in the script area, so on a total company basis, I started with that Q2 will be stronger than Q1, right? And that as we look at the second half of the year, we will grow sequentially. So Q3 above Q2, Q4 above Q3 as well as for Q3 and Q4, being above prior year levels. I did note that for Q2 we will be a little bit of a challenge to achieve the prior year revenue level. So, Q2 better than Q1, maybe a little short of prior year Q3 and Q4 ahead of prior year and also sequentially improving as we move through this year. And with that and so those comments are very specific to revenues, but they do also generally apply to margins as well. I do expect total company margin to improve sequentially as we move through the year. Obviously, we demonstrate we have a business that really gets nice increments and has nice leverage. And I’d expect to see that in the segments individually as well.
Walt Liptak: Okay. And just to make sure I’m totally clear on this. The revenue — you’re expecting revenue to go up this year even with the tougher first quarter?
Bryan Mittelman: Yeah. And I think — I know your — when you tear apart and you do look at things by segment. So total company revenue, we do expect up. Obviously, the challenging — the most challenging segment and the one where I’d say we have some of the lesser visibility right now is exactly how residential will play out where we have started weaker. So higher conviction in the other two segments, I think, in terms of the year-over-year. And I think we do end up still a total company up year-over-year.
Walt Liptak: Okay. Good. And then just a follow-up. When you guys were talking about the CFS segment and some of the strategic changes or maybe strategy normalizing from crisis. I noticed that, Shake Shack commented that we’re decreasing some investments this year. Was that what you guys were referring to? Or is there something else out there in the market that you were referring to?
Bryan Mittelman: And you’re talking about the overall building kind of new stores and the strength of what’s happening out there. I mean, our comments are not specific to one change, certainly not specific to Shake Shack, I think as you look at the print across the board from the very large QSRs, right, that they have started the year slower in terms of completion of projects, right? There was weather and permitting and such. So again, I think it’s a pretty consistent comment we’ve seen across the large QSRs that no one. They’re also committed to their build plans. It just did not start off the first quarter is probably exceeding any of their internal benchmarks for the total number of new doors to be opened.
Walt Liptak: Okay. Great. And maybe just one final one on the NRA show. I think the — you guys mentioned the Invoq combi oven that we’ve heard some things about how. I wonder if you could tell us a little bit about the features and what you’re expecting as you commercialize that product.
James Pool: Yes. So I’ll jump in and talk about the Invoq. So we’ve spent last several years into designing the Invoq and finally have it out on the market. We think there’s a ton of novel features in the Invoq. Kind of one of the first things that I like to talk about is the fact that we’ve developed a half-sized combi oven that fits full-size combi pan. So that means that if you think about traditional full-size combi oven, it’s got kind of ex dimension. If you look at a half-sized combi oven, it’s about a third less in volume than a full-size combi. So what does that mean for the kitchen that needs more space for the — for other equipment in the kitchen that means less hood requirement, it means lower energy input rate into the product more efficient product.
