Jon Tower: Great. Thanks for taking the question. Just curious, maybe you guys can expand upon your expectations for balancing pricing next year with new product news. I know obviously, can’t dictate where franchisees are going with price and there will continue to be some inflationary pressures in the business. And obviously, there’s some stresses happening at the lower income levels of the consumer and maybe even spreads beyond that. So just curious how you’re thinking about pricing actions next year? And maybe a follow-up to that.
Gunther Plosch: Good morning, Jon. Yes, it all ties to our long-term guidance, right? We have said that we’re expecting mid-single-digit overall sales growth with low single-digit same restaurant sales growth. And the same restaurant sales growth is really driven by flattish traffic, slightly positive mix and the rest is oil price, right? So it’s very low pricing versus what we have done in the past. Just as a recap this year, we’re expecting effective price increase in the company restaurant of about 7%, 5% of that was carryover, 2% was new. Just to foresee a little bit, we did our last price increase in May of this year. We are going to do a small price increase at the end of this year to set us up for next year. So we’re definitely expecting a moderating pricing environment and therefore, that’s the posture that we are taking.
Todd Penegor: I think from a calendar perspective, I think you’ll see a continued balance across our calendar. How do we continue to focus on the core, to have the best hamburgers, chicken sandwiches in the business. What new news do we bring to keep Made to Crave fresh and ownable to the Wendy’s brand? And how do we continue to lead into some of our ownable platforms like biggy bags and biggy bundles at lunch, dinner and then now into breakfast. I think we’ll find that right balance that works for the consumer and continues to work for the restaurant economic model for our franchise community.
Operator: And our next question comes from Rahul Krotth [ph] from JPMorgan. Rahul, please go ahead.
Unidentified Analyst: Good morning guys. Thanks for taking my question. I have a question about the company stores performance versus the franchise stores in the U.S. Can you just break out the dynamics here? Where is the drag coming from? Is it Florida stores? And can you also remind us if there are any remodels for the company stores planned for the rest of the year? And I have a follow-up.
Todd Penegor: I think it’s more a function of the footprint, quite honestly. When you think of where the company is located. We got restaurants up in the Northeast with the Boston market. We’re in the Chicago market. We’re in the Denver market. We’re here in Columbus and then down in Florida. We started with much higher AUVs than the franchisees in many of those markets. And we’ve had a lot of growth, if you go back and look at it over a four-year perspective in the company market. So if you look at where we are performing relative to the franchise community in those markets, we’re largely performing in line with them. Anything else to add, GP on that?
Gunther Plosch: Yes. I think a lot of you also have to do with the comps, right, on a one-year basis, there is a gap of about two points. If we just go back only on a two-year basis, you will find that the company has grown 7.6% and the U.S. system has grown 8.5%. So the gap is narrowing very, very quickly. So it’s a function of comps. Again, we are benefiting from much higher AUVs in the company restaurants. We like that because obviously, our cash profit per restaurant is pretty high.
Operator: And our final question today comes from Sara Senatore from Bank of America. Sara, your line is now open. Please go ahead.
Sara Senatore: Thank you. Just quickly, royalty. You mentioned that active users grew $5 million. And I guess I have two questions. You mentioned like there’s some selling offers. How profitable are these offers are you thinking about them more as like the acquisition cost transactions still sort of margin neutral or accretive? And then maybe following on to that, what kind of lift do you see when you convert members to be active users, if you have any measures on frequency or spend over time, just to get a sense of sort of the trade-offs of customer acquisition versus the lifetime value? Thanks.
Todd Penegor: Yes, thanks for the question. So I’ll start and GP can add on wherever he thinks he needs to add on. The great news is we did make a nice 5% increase in our total loyalty members hitting $35 million. So we’re proud of that. But more importantly, that 40% increase in the monthly active users. We’ve got folks to get into the app with some compelling values, the Penny JBC on non-National Cheeseburger Day, clearly drove folks in. And we want to get folks into the app because what we do see is more frequency and higher checks over time for those consumers. So we’re seeing all of that data happen. Early on, you’ve got maybe on par check, maybe slightly lower check with the offers that you see, but that’s more than made up by the lifetime value with the frequency that you get over time.
And we can then really leverage all the data to really connect and have more personalized rather than blanket offers out to the consumer environment. And we’re in the early innings of really ramping up our one-to-one marketing ability, the platforms and the base is built, but we’re looking forward to that being a nice generator to help our margins over time. Anything else, GP?
Gunther Plosch: I think you said it all.
Kelsey Freed: All right. Thank you, sir. That was our last question of the call. Thanks, Todd and GP, and thank you, everyone, for participating this morning. We look forward to speaking with you again on our fourth quarter call in January. Have a great day. You may now disconnect.
