Jim Salera: Hi, guys. Thanks for taking our question and congrats on a nice quarter. We noticed on the app, at least in my area, $0.70 boneless wing special to join kind of the boneless meal deal in the all in bundles. At a time when QSR competitors seem to be leaning more into value, can you just talk a little bit more about the strategy there and particularly on the boneless awareness, is that promotion a way to help improve the boneless mix and get it closer to kind of that 50-50 parity?
Michael Skipworth: Hey, Jim, good morning. I would say our $0.70 boneless promotion that you called out on Monday, Tuesdays, that’s actually something that’s been around for, I think as long as I’ve been with the brand, which is at least 10 years. So not necessarily anything new and we that’s a day where we can promote boneless wings and it’s been something that’s been successful for us over the years. But generally speaking, it’s not a high mix promotion by any means. And I think you really hit on a point that highlights the uniqueness of Wingstop in our category of one positioning is with the combination of the quality and the operating excellence that we deliver within the four walls of the restaurant, as well as just the attention to detail that goes into the cook to order made from scratch nature of our products and our disciplined approach to pricing, we’ve seen our quality and value scores quarter after quarter measure record levels.
And I think that’s really just putting us in a unique position in this environment to where that indulgent Wingstop occasion is something that we’re able to deliver on. And as you can see in our Q1 results, consumers are choosing Wingstop when they do decide to spend some of those discretionary dollars on dining now. And so we’re going to continue to lean in and execute on quality and value. And I think one other thing I would point out is if we look back over the years, we’ve been a brand that’s been able to demonstrate growth regardless of the macroeconomic backdrop, obviously, 2023 marking our 20th consecutive year of same-store sales growth and then our start to 2024 puts us well on our way to our 21st.
Jim Salera: Great. That’s super helpful. And then if I can ask just a follow-up on some of the throughput. Given that the average unit volume has scaled so rapidly. Can you just talk about what’s required from kind of a back of the house perspective to support that growth? Should we think about some of the stronger units as having kind of additional back of the house investments to get to that above $2 million, $3 million AUV.
Michael Skipworth: Yes, Jim, I think you just need more chicken. The reality is we haven’t found the ceiling. We don’t have a throughput issue within our brand, which is pretty incredible. Alex called out in his prepared remarks that the oldest restaurant in the system that is one of the highest volume restaurants in the system that is in our company owned portfolio is continuing to grow transactions and comp. And so I think it just highlights the capacity that we have within that efficient box. And then what we really like is the strength of our model with that low occupancy cost with our small footprint. You can only fit so many bodies in the back of the house. And so at some point, you start to gain some really nice leverage on the labor line as well, which I think you’re seeing show up in the strength of our unit economics and the level of demand we have from brand partners for more growth.
Operator: The next question comes from Danilo Gargiulo with Bernstein. Please go ahead.
Danilo Gargiulo: Thank you. I actually wanted to double down exactly on this topic of throughput. Most of your peers are focusing on expediting the service, increasing the speed of service, improving the throughput. And so I’m wondering, what is the average service time today at a typical Wingstop? And what kind of levers do you think you can pull to potentially like increase the speed of service without compromising on the quality of your wings?
Michael Skipworth: Good morning. Thank you for the question. And it’s actually an area that we see as we look longer-term, we see as an opportunity for Wingstop is, you’re right, we can get faster. There are some opportunities. We focused a lot of our technology investments over the year to the digital order — ordering experience, the consumer facing experience. And we see an opportunity to leverage technology over time in the back of the house that could improve speed. But obviously, with our low frequency indulgent occasion, consumers are okay with the speed of service we offer today. But as we look out longer-term and as we’re bringing in these new guests into the brand, we do see an opportunity to work on getting faster, which we believe combined with some of the other elements within our strategy could be an enabler to impacting frequency over time, which is a really big opportunity.
But our focus right now is being consistent and we’re extremely focused on just operating within excellence — operating excellence within the four walls of the restaurant to deliver a great guest experience.
Danilo Gargiulo: Thank you. And a quick follow-up on the same vein. Another opportunity that you didn’t mention today, but it was mentioned in the past is expanding the relevance of tenders. So can you elaborate how you’re planning to do so? Is it a different combination of sausage, is it more on the consistency of the tenders? Is it about awareness? So what is the plan, the specific plans that you have in mind to expand the relevance of tenders?
Michael Skipworth: Yes. I think tenders are a lot like chicken sandwich where we believe we have a unique value proposition where we can not only deliver an incredible product cook to order, but do it at a great price, which I think will continue to differentiate us. And that’s the success we’ve had with chicken sandwich since the launch of chicken sandwich. And you’re right, tenders are an opportunity for us down the road. I think it’s one of those levers that we have that we can lean into and pull when the time is right, when we feel like it’s the right thing for the business. And obviously, that does feed into our supply chain strategy as we continue to use more of the bird. And so it fits in and works into that the execution of that strategy as well. And as we get closer to the execution around us continuing to try to drive tenders mix, which today is low single digits, a meaningful opportunity for us. We’ll obviously, we’ll talk about that when the time is right.
Operator: The next question comes from Sara Senatore with Bank of America. Please go ahead.
