Red Robin (RRGB) Q1 2026 Earnings Transcript

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DATE

Tuesday, May 19, 2026 at 4:30 p.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — David A. Pace
• Chief Financial Officer — Mark E. Graff
• Interim Chief Financial Officer — Christopher Adkins Meyer

TAKEAWAYS

• Total Revenue -- $378 million, representing a $14 million decrease driven by restaurant closures and declining comparable sales.
• Comparable Restaurant Sales -- Down 0.6%, with a 1% increase in average check offset by a 1.6% traffic decline.
• Average Check Increase -- 1%, reflecting a 3.1% price increase offset by a 2.1% decline in mix and discounts.
• Restaurant Operating Margin -- 14.8%, up 50 basis points, marking the strongest Q1 margin in five years.
• Labor Efficiency -- Labor costs at 35.7% of sales, a 130 basis point year-over-year improvement and the lowest Q1 labor percentage in three years.
• General and Administrative (G&A) Expenses -- $23 million, reduced by $4 million, driven by corporate efficiency initiatives and lower personnel costs.
• Selling Expenses -- $13 million, up from $9 million, reflecting increased marketing investment.
• Adjusted EBITDA -- $27 million, decreasing by $600 thousand, aligned with internal expectations.
• Big Yummm Value Platform Mix -- Over 13% of sales, above historical levels, with six meal options between $9.99 and $16.99 supporting traffic and relevance among value-focused guests.
• Commodity Hedging -- 60% of 2026 commodity needs locked, but beef and dairy remain mostly unhedged.
• Store Closures -- Six units closed in Q1; executive commentary signals an expectation to close approximately 20 units for the full year, with closures evenly distributed over the next three quarters.
• Liquidity Position -- $24 million in cash, $10 million in restricted cash, plus $17 million undrawn borrowing capacity on the revolver.
• Full-Year Guidance Maintained -- Comparable restaurant revenue growth of 0.5%-1.5%, restaurant-level margin projected near 13%, adjusted EBITDA between $70 million and $73 million, and capital expenditures of $25 million-$30 million; refranchising proceeds not yet included.
• Strategic Refanchising Update -- Final-stage negotiations with several potential franchisees; proceeds expected to be used for debt reduction and eventual balance sheet strengthening.
• Technology Refresh -- Phased rollout of upgraded server handhelds and Ziosk tabletop devices expected to complete first markets by late June, targeting improved efficiency and guest experience.
• AI & Technology Initiatives -- Ongoing adoption of enterprise AI tools including ChatGPT, utilized particularly for labor scheduling and food cost control, cited as a contributor to operational gains.
• Employee Turnover & Engagement -- Hourly turnover at historically low levels and employee engagement scores tracking above industry benchmarks, supporting service consistency.

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RISKS

• Traffic Decline -- 1.6% decrease in guest traffic, partially offsetting average check gains and contributing to overall comparable sales contraction.
• Sales Impact of Store Closures -- Projected annualized sales reduction of approximately $40 million associated with unit closures.
• Commodity Inflation Exposure -- Mark E. Graff stated, "beef, you know, a very large piece. We do not lock that piece,", flagging ongoing inflation risk in key categories not hedged.

SUMMARY

Red Robin Gourmet Burgers (NASDAQ:RRGB) reported first-quarter results marked by margin expansion despite ongoing sales and traffic pressures, with leadership emphasizing targeted value offerings and operational efficiency initiatives. Management described the current refranchising process as being in advanced discussions with prospective partners and reiterated that resulting proceeds will be directed to deleveraging. The company detailed continued investment in marketing, technology upgrades, and tools for employee efficiency, reflecting a playbook centered on both cost discipline and value-driven guest engagement.

• "Our Big Yummm value platform continues to resonate with guests with high satisfaction scores and we are seeing strong results across the system," CEO David A. Pace said.
• The CFO highlighted that restaurant closures and lower traffic, together with cost inflation, were partially offset by pricing, G&A reductions, and gains in restaurant-level efficiency.
• Capital allocation priorities remain focused on balance sheet health and maintaining flexibility to support ongoing technology and facility refreshes.
• The company reaffirmed its full-year guidance, signaling operational stability despite a challenging industry environment and macroeconomic headwinds.

INDUSTRY GLOSSARY

• Big Yummm Platform: Red Robin’s core, tiered menu value platform, offering select meal bundles at fixed price points to drive guest value perception and traffic mix.
• Comp Sales (Comparable Sales): Same-store sales growth metric, referencing performance of stores open for more than a year, excluding the effect of newly opened or closed locations.
• Restaurant Level Operating Margin: A profitability metric representing operating profits from restaurant locations before corporate overhead and other non-restaurant-specific expenses.
• Ziosk: Tabletop ordering and payment device deployed at Red Robin restaurant tables to speed service and increase ordering efficiency.

Full Conference Call Transcript

David A. Pace: Good afternoon, everyone, and thank you for your interest in Red Robin. I am pleased to report that our first quarter results demonstrate continued improvement in the business highlighted by our strongest traffic performance since the first quarter of 2023, and our highest Q1 restaurant operating profit margin since 2021. These results reinforce that the actions we are taking to strengthen guest engagement are gaining traction. Our Big Yummm value platform continues to resonate with guests with high satisfaction scores and we are seeing strong results across the system. In addition, our targeted first choice marketing efforts are improving both reach and brand awareness helping us to engage guests more effectively to drive frequency.

Importantly, the operational discipline embedded in our first choice plan is delivering steady improvement across the P and L as well. Our teams remain focused on executing the fundamentals enhancing the guest experience, and positioning the business for sustainable growth. As it relates to our Q1 performance, same store sales were down 0.6% including a 1% increase in average check and a 1.6% decrease in traffic. This traffic result improved sequentially from Q4 and continued to narrow the traffic gap to the industry as compared to black box intelligence reinforcing that our strategies are gaining traction despite a challenging macro environment.

The current economic environment requires that we remain deliberate in highlighting value and disciplined in our approach to average check. Q1 was our third consecutive quarter where our check average increases were below the industry. Our prudent approach to menu pricing complemented by the expansion of our Big Yummm platform has positioned us for success and is reflected in our traffic momentum. Turning to profitability. We are pleased with the continued incremental gains in 4 wall efficiency, including a 50 basis points improvement in restaurant level operating margin to 14.8%. This was our highest first quarter margin in 5 years. Our adjusted EBITDA was in line with our expectations and we remain on track for our full year objectives.

With that, let me update you on our first choice plan and how we are thinking about our strategic priorities for the remainder of the year. First, let's start with hold serve. Our team continues to do a great job sustaining the progress we have made in the past several quarters and this quarter is no different. During the first quarter, our labor efficiency initiatives drove approximately 130 basis points of year over year savings, Our labor percentage of 35.7% was our lowest first quarter labor in 3 years. These improvements reflect the sustained accountability and ownership embedded in our managing partner model what is particularly encouraging is that we are achieving these efficiency gains without compromising the guest experience.

Our satisfaction scores remain strong, reinforcing that operational excellence and genuine hospitality are not competing priorities; they are complementary. Moving to our drive traffic pillar, we believe our value and innovation platforms are gaining traction with guests. The expanded Big Yummm platform we launched in late January continues to address the need for value with the new offerings while serving as an incremental traffic driver. All in all, the 6 meal options across our $9.99 to $16.99 price range are strengthening our relevance with value seeking guests, and supporting incremental traffic and trial. In total, our Big Yummm offerings are mixing at over 13% well within the expectations for this program.

The platform's appeal extends beyond burgers, including our hand breaded classic chicken sandwiches, Donato's pizza, and Whiskey River barbecue chicken wraps. Importantly, each meal includes our signature bottomless sides and beverages, reinforcing value while preserving the full Red Robin experience. Overall, the underlying traffic trends in the business are improving. And our momentum is increasingly being driven by compelling platforms rather than relying on traditional discounting. Our deliberate barbell approach with the menu balances compelling value with higher priced indulgent options to expand guest choice across dayparts and occasions. We believe this approach is building a more sustainable foundation for traffic generation. In addition, we continue to enhance our new product pipeline which provides additional opportunities to drive frequency.

An example of this is our towering sliders that we launched last month. Which has generated record setting menu satisfaction scores and is driving incremental check growth. On the marketing front, our data driven first choice strategy continues to gain traction. Our ability to deliver locally relevant messaging based on competitive dynamics in each trade area has improved both engagement and marketing efficiency. We are seeing the benefits of this more precise disciplined approach in our traffic performance and expect to build on this momentum as we refine our capabilities. Throughout the year. Now let me update you on our third pillar of the first choice strategy find money.

I am pleased to report that our momentum and corporate efficiency initiatives continues to deliver meaningful results. As we previously outlined, the G&A reductions we implemented in mid-2025 are providing sustained benefits and we remain on track to realize the full year step down we anticipated for 2026. Turning to our balance sheet optimization efforts, our tactical refranchising initiatives continues to move forward. We are currently in the final stages of discussions with multiple parties and I am pleased with both the pace of these conversations and the depth of engagement from prospective franchisees. These are sophisticated operators who recognize the operational progress we have made and see the opportunity that our First Choice strategy creates.

The sustained level of interest we are seeing reflects growing confidence in our system improvements and the strength of the Red Robin brand. I want to emphasize that we remain committed to being disciplined and selective in this process, Our objective is to partner with franchisees who share our commitment to operational excellence and guest experience while achieving terms that support our balance sheet objectives. We plan to use proceeds from any completed transactions to reduce debt and further strengthen our balance sheet. We look forward to providing further updates on this in the near future. Turning to our fixed restaurants pillar, We are continuing our light touch refresh program in 2026.

This initiative touches customer facing elements within our restaurants that can enhance the overall experience and support the quality of our food and service. We expect to have our first markets completed by the end of June. In addition to our facility refreshes, we have begun to roll out replacement devices for our server handheld technology and we will shortly introduce an upgraded version of our Ziosk tabletop devices. We believe that both of these actions will improve server efficiency order accuracy, and speed of service returning the gift of time benefit that Red Robin has historically been known for. Lastly, let me quickly touch on our win together pillar.

As I reach the 1-year mark as CEO of Red Robin, what stands out most for me is growing sense of ownership and pride across our restaurants. Our team members are not simply executing initiatives, They are owning the challenge putting guests at the front of everything we do, and actively contributing ideas that have improved operations and enhanced the guest experience. We also recognize that the rate of change continues to accelerate and evolve, and we need to adapt with it. Technology and AI are at the forefront of that discussion, and our team is constantly challenging the status quo to identify ways to enhance our capabilities reduce friction, and differentiate ourselves in the marketplace.

Last fall, we introduced an enterprise version of the ChatGPT AI platform, and we are seeing meaningful adoption of the tools across the enterprise but especially within the field. Our managing partners are actively leveraging these tools to optimize labor scheduling manage food costs, and enhance guest service delivery. All of which are contributing to the operational efficiencies reflected in our results. On the people front, our focus on creating a supportive work environment continues to pay dividends. Hourly turnover remains at historically low levels, and employee engagement scores are tracking positively above industry benchmarks. This stability strengthens our ability to deliver the consistent high quality experience our guests expect.

As we progress through 2026, we remain committed fostering an environment where great people can build meaningful careers while driving the innovation and execution that will differentiate Red Robin in the marketplace. To our entire Red Robin team, thank you for your continued commitment to our guests and to each other. The operational discipline and guest first mindset you demonstrate every day are the foundation of our progress, and I am grateful for your commitment as we execute our first choice plan. Before I turn the call over to Mark, I would like to extend my sincere thanks to Christopher Adkins Meyer for stepping out of retirement to serve as our interim CFO.

Since December, Christopher has provided strong continuity, steady leadership, and valuable guidance to our finance team and the entire organization, including me personally. I would also like to welcome our new CFO, Mark E. Graff, who just joined us earlier this month. With more than a decade at Bloomin' Brands, he brings deep financial expertise and direct operational leadership to the team. I had the privilege to work with Mark when we were both at Bloomin'. he is been working closely with Christopher over the past several weeks as he comes up to speed, and we look forward to his leadership and perspective as we continue to execute. On our first choice plan.

With that, I will turn the call over to Mark to review our first quarter results.

Mark E. Graff: Thanks, David, for the kind words and good afternoon, everyone. I would like to start by providing a recap of our financial performance for the fiscal first quarter of 2026. Total revenues in Q1 were $378 million, a decrease of $14 million from 2025. This change in revenue was primarily due to the impact of restaurant closures and a decrease in comp sales. Comp sales excluding the impact of deferred loyalty revenue were down 60-basis-points in Q1. Q1 comp sales included a 1% increase in average check, offset by a 1.6% decline in traffic. The 1% increase in average check consisted of a 3.1% increase in price offset by a 2.1% decrease in mix and discounts.

Driven largely by the impact of our Big Yummm value offerings. As it relates to other aspects of our Q1 financial performance, restaurant level operating margin was 14.8%, an increase of 50 basis points compared to the first quarter of 2025. The benefits of cost savings and labor efficiencies check average increase and restaurant closures were offset by inflation and lower traffic. As it relates to our commodity basket, as of the end of the first quarter, we were approximately 60% locked on our 2026 commodity needs. General and administrative costs were $23 million as compared to $27 million in the first quarter of 2025.

The $4 million reduction is primarily due to reduced people costs from our corporate efficiency initiative and timing of corporate events. Selling expenses were $13 million as compared to $9 million in the first quarter of 2025. Adjusted EBITDA was $27 million in the first quarter of 2026, a decrease of $600 thousand versus the first quarter of 2025. As it relates to our balance sheet and capital structure, we ended the first quarter with $24 million of cash and equivalents $10 million of restricted cash and $17 million available borrowing capacity under our revolving line of credit. Turning to our outlook. We are maintaining the full year guidance for 2026.

Please note that our outlook does not include any impact from the tactical refranchising initiatives. First, we expect comparable restaurant revenues to be between 0.5% to 1.5% excluding the impact of deferred loyalty revenue. Second, restaurant level operating profit margin of approximately 13%. Third, we expect adjusted EBITDA of between $70 million and $73 million Finally, we expect capital expenditures to be between $25 million and $30 million In summary, our first quarter performance and our continued improvement in our business fundamentals, As we look ahead to the remainder of 2026, we will remain disciplined in executing against the First Choice plan and continue strengthening the operational and financial foundation of the company.

David, I will now turn the call back to you.

David A. Pace: Thanks, Mark. We believe our first quarter performance validates the strategic direction we have set with our first choice plan. Across all 5 pillars of our plan, we are executing with discipline by 1, holding serve on operational efficiencies while maintaining guest satisfaction. 2, driving traffic through our expanded Big Yummm value platform and data driven marketing. 3, finding money through our organizational efficiencies and our strategic refranchising initiative that will strengthen our balance sheet 4, fixing our restaurants with targeted refreshes and technology enhancements. And 5, winning together by empowering our team members with the tools, and culture they need to succeed.

Combined, our strategy has not only improved our underlying traffic momentum and share gains relative to the industry during the first quarter, but also allowed us to better speak to our guests on what matters to them through the continued evolution of our targeted marketing initiatives. We believe we have the right team to make Red Robin a place that guests choose first, team members are proud to work at, and shareholders can rely on for sustainable returns. With that, we are happy to take your questions. Operator, please open the lines.

Operator: Thank you. We will now be conducting a question-and-answer session. You may press 2 to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. 1 moment, while we poll for a question. Our first question comes from the line of Alexander Russell Slagle with Jefferies. Please proceed with your question.

Analyst (Alex Slagle): Hey, thanks. Good afternoon, everyone, and congrats, Mark, and good to have you back. And, Christopher, it was certainly great having you back for a while as well. I wanted to just dive more into the acceleration in the same store sales and traffic trends and I mean, it seems like the new menu, big yum deals were pretty big and maybe a little bit also from the targeted marketing efforts. But just seems like the trend's really accelerated a bit more notably after the storms. Than I think we would have expected.

So if you could kind of dig more into the Big Yummm performance and maybe some of the other metrics, like the check performance certainly seemed pretty solid.

David A. Pace: Yeah. Hey, Alexander. it is David. I will start out, I will hand it over to you guys. I think you are right. I mean, we did see strength coming into the year. We saw a little bit dip through the weather that everybody saw in the middle of the quarter, and then a nice rebound at the end. Combination of Big Yum, certainly, the new menu launch that we put out performed as we had hoped or better than we had hoped across a number of different measures. So we feel good about the quarter, and I think you are right. Strong start, kind of choppy middle, and then strong finish.

So if Mark or Christopher, you want to jump on that?

Christopher Adkins Meyer: Yeah. The only thing I would add, hey, this is Christopher. Is that I would say from a marketing perspective, we did increase our spend year over year. We feel really good about that targeted marketing approach. We said on the last call, we expect to spend more in marketing dollars pretty much every quarter of this year than we spent a year ago, and I think that we are going to continue on that track certainly in the second quarter.

Analyst (Alex Slagle): Okay. And, you know, the on the cost, the labor efficiency was pretty impressive just given last year. I know there were some acceleration or a benefit, you know, that you started to see from the managing partner program and efficiency on that labor line But, I mean, are we starting to level out or, like, are the turnover levels sort of down and stabilizing or you think there is more room to go? On labor?

David A. Pace: Yeah. First of all, I think hats off to the ops team. They just did a heck of a job kind of tightening their belts, managing this much more effectively than we had in the past, and so they deserve a lot of the credit for this. But, you know, we brought it down. You know, we are going to get to a point where there is not the kind of gains that we have been seeing But we will continue to kind of work towards that efficiency We talk about that every day. I think the thing that is our governor right now, Alexander, is just making sure the guest satisfaction scores remain. Right?

As long as we do not think we are impacting the guests, you know, we will keep trying to find ways to be more efficient. But I would say, you know, we are approaching that at least for us right now, optimal level.

Christopher Adkins Meyer: Yeah. And as if you think about how that manifests in the P&L, tactically speaking, we started seeing those benefits in Q2 of last year from a savings perspective. So we are going to start lapping that when we get to Q2 of this year.

Analyst (Alex Slagle): Alright. Thanks. Congrats.

David A. Pace: Thanks, Alexander.

Operator: Thank you. Our next question comes from the line of Jeremy Hamblin with Craig Hallum. Please proceed with your question.

Analyst (Jeremy Hamblin): Thanks, and congrats on the results. Just wanted to follow-up on the last question in terms of seeing that the cadence kind of exiting the quarter building, have you seen some of that momentum continue here in Q2? And, you know, just in terms of, you know, check and menu pricing, in terms of, you know, you are at just over 3% price In Q1. How do you think about price as it plays out through the rest of 2026?

David A. Pace: Yeah. I mean, I think in terms of trends as we came out of Q1, Q2 is looking, you know, a lot right now. But it is early days. Yeah. at least P5 for us. You know, I think in terms of pricing for the rest of the year, yeah, I will let maybe Mark, if you wanna talk to that.

Mark E. Graff: We are still in that 3% to 3.5% range. Yeah. So that is been pretty consistent. We had very little rollover from last year. Got it.

Analyst (Jeremy Hamblin): And then in terms of additional menu item initiatives, and how you are thinking about menu innovation You know, clearly in casual dining, capturing In combination with some of the marketing efforts. Right? So $4 million year over year increase in marketing spend in Q1. attention on social media and digital marketing has been key to driving traffic. I think this is the best quarter on traffic, like, in 3 years for you guys as well. But you lean in a bit more Do you lean into value a bit more as it is had success and mixing well? How should we think about the interplay of those 2 things?

David A. Pace: Well, I think I think you just touched on it. Your last word of interplay is exactly what is gonna happen is there is gonna be an interplay. We are gonna try and continue to innovate The consumer is obviously interested in value messaging and value offering across the category these days. But that does not mean we are not gonna continue to innovate with new products. We put a new menu out in January, which had both value as well as high end products in the package and in menu. We came out with the slider tower offering, which was another kind of an opportunity for us to innovate and introduce new products.

And we are continuing to look at, okay, how do what is the next round of the value platform? What does that look like as we go forward? So all of those things are going, Jeremy. I do not think it is gonna be, you know, 1 end or the other. I think we are gonna constantly be trying to say, okay. what is the what is the value hook? And then what are the other product offerings that we can add to the menu or introduce as LPOs?

Analyst (Jeremy Hamblin): Understood. Last 1 for me. Just in terms of the units, did you have any store closures in Q1 I think you said you were looking at about maybe 20 for the year. But just wanted to understand what you did in Q1 how we should be thinking about the cadence for 2026. And what the expected impact might be on revenues and EBITDA?

David A. Pace: Yes. I will let Mark or Christopher talk about impact on to EBITDA. 6 was the number in Q1. And that will kind of play out relatively equally across quarters for the balance of the year.

Mark E. Graff: And in terms of impact, those you wanna take on, Mark? On the sales front, you know, we did have some closures last year So if you kinda combine that with the expectation of this year, it is it is close to $40 million from the sales perspective. it is kind of a mixed bag on the RLOP side, which, you know, it will be pretty neutral from that perspective.

David A. Pace: Jeremy, the other thing just to clarify, I said that it is gonna play out about the same as it did in Q1, 6 in Q1, but I think your point about 2021 for the full year is right. it is just going to be spread equally relatively over the next 3 quarters.

Analyst (Jeremy Hamblin): Understood. Thanks for the color and best wishes.

David A. Pace: Thanks, Jeremy.

Operator: Thank you. And just as a reminder, if anyone has any questions, you may press 1 on your telephone keypad to join the queue. Our next question comes from the line of Mark Smith with Lake Street Capital. Please proceed with your question.

Analyst (Mark Smith): Hi, guys. I wanted to ask about commodities a little bit. Sounds like I think you guys said you got 60% locked right now through the end of the year. Maybe walk us through you know, opportunities to continue locking stuff and especially as we look at beef kind of where you are at, what is on contract, and when things come up, and what maybe we could look for, potential inflation this year.

Mark E. Graff: Yeah, I mean, from an overall perspective we are still in that kind of 3.5% range and So beef, you know, a very large piece. We do not lock that piece, so that is really as you think about what is floating that and as you think about dairy as well are kind of 2 of the bigger options that are not. But as you think about chicken and some of those other ones, those are those are the opportunity areas that we continue to pursue.

Analyst (Mark Smith): Okay. And then similar back to labor efficiencies, and you guys talked about this a little bit. But, you know, I am just curious. Any additional thoughts as we think about maybe just the leverage on higher sales that kind of helped with some of those efficiencies versus, you know, some of the initiatives, that you guys put in such as using AI on managing labor, you know, the puts and takes within labor that kind of helps you get some of these efficiencies.

David A. Pace: Yeah. I mean, I think it is you know, it is a combination of things. You know, we have got technology that we introduced with handhelds, which certainly improve the efficiencies at the restaurant level, the AI tools, have really for those that have adopted it, have really kind of helped just provide shine a light on the opportunities for those managing partners that are using it. And so we are trying to extend the comfort level with that across the system Similarly, it managing inventory, food costs, and inventory in the restaurants. Helping from a planning standpoint that way. We have been really pleased with what we have seen on that.

And, you know, you kind of keep tightening the labor may matrix and targets for the operating team. They keep hitting it. And so I give them credit for their you know, approach to this thing. But I do wanna be conscious of the guest impact. And I do not ever want us to go so far that it negatively impacts the guest So we are being pretty careful about how we watch that.

Analyst (Mark Smith): Perfect. The last 1 for me is really I think last quarter, you guys quantified a little bit around Big Yummm mix within dine in. Are you able to do that? Anything that you can say or quantify around maybe how big Yum trended and mixed during the quarter?

David A. Pace: Yeah. I will just at a headline level or a high level, I will turn it over to these guys. But, you know, we have modeled out what we thought Big Young might do when we put the new menu in place and put it on the menu. And you know, the performance since we have put it on the menu has performed well within our targets for it. And so I know the number, but I will let Christopher or Mark you know, talk about that.

Christopher Adkins Meyer: Yeah. And we talked about so prior to when we put it on the menu with the additional offerings, we talked about that core LTO at $9.99 mixing in the, you know, 8% to 9% range. We put it on the menu, on the core menu with the 3 price points. The--the $9.99, $14.99, and $16.99. We saw that mix jump up. And it is been hovering in that 13% to 14% range pretty much for the duration of the, since that new menu launched in late January. I would not expect it to move much from here. I think it is going to stay pretty much in this range moving forward, which we are totally fine with.

We feel really good about where it is. it is mixing at the right level. As we introduce new innovation, it is going to create opportunities for us to have barbell price points across the menu. So it is really a perfect strategy for us. We feel really good about how it is playing out.

Analyst (Mark Smith): Excellent. Thank you.

David A. Pace: Thanks, Mark.

Operator: Thank you. And we have reached the end of the question-and-answer session. I would like to turn the floor back to David A. Pace for closing remarks.

David A. Pace: Yeah. Just to wrap it up, look, thanks for everybody for joining. So thanks. We will talk soon. The call-- We feel really good about the quarter, and we feel like the First Choice plan is working. We are going to keep on it, and we look forward to talking to you again after Q2.

Operator: Thank you. And this concludes today's conference, and you may disconnect your lines at this time. We thank you for your participation.

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