Good day everyone and welcome to the Chipotle Mexican Grill’s Fourth Quarter 2014 Earnings Conference Call. All participants are now in a listen-only mode. After the speakers’ remarks, there will be a question-and-answer session [Operator Instructions]. As a reminder, this conference is being recorded. Thank you. I would now like introduce Chipotle’s Director of Investor Relations, Mark Alexee. You may begin your conference.

Good afternoon everyone and welcome to our call today. By now you should have access to our earnings announcement released this afternoon for the fourth quarter and year end 2014. It may also be found on our website at chipotle.com in the Investor Relations section. Before we begin our presentation, I will remind everyone that parts of our discussion today will include forward-looking statements as defined in the securities laws. These forward-looking statements will include projections of a number of restaurants we intend to open, new restaurants that [indiscernible] and new restaurant volumes. Statements about potential shareholders or projections of comparable restaurant sales increases or comps, trends in food, labor and G&A costs, our expected effective tax rates, statements about stock repurchases as well as other statements of our expectations and plans. These statements are based on information available to us today and we are not assuming any obligation to update them. Forward-looking statements are subject to risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements. We refer you to the Risk Factors in our Annual Report on Form 10-K as updated on our subsequent Form 10-Qs for a discussion of these risks. Our discussion today will also include non-GAAP financial measures, a reconciliation of which will be found on the presentation page of the Investor Relations section of our Web site. I would like to remind everyone that we have adopted a self-imposed quiet period, restricting communications with investors during that period. The quiet period begins on the first day of the last month of each fiscal quarter and continues over the next earnings conference call. For the first quarter, it will begin March 1st and will continue through our Q1 earnings release on April 21, 2015. On the call with us today are Steve Ells, our Chairman and Co-Chief Executive Officer; Monty Moran, Co-Chief Executive Officer; and Jack Hartung, Chief Financial Officer; and Mark Crumpacker, Chief Marketing and Development Officer. With that, I will now turn the call over to Steve.

Thanks Mark. I am extremely pleased with our performance during the fourth quarter and throughout 2014. During the quarter we generated revenue of $1.1 billion, an increase of 26.7% on comparable restaurant sales growth of 16.1% and the opening of 16 new restaurants. This produced diluted earnings per share of $3.84, an increase of 51.8%. For the full year we generated revenue of $4.1 billion on comparable restaurant sales growth of 16.8% and the opening of 192 new restaurants. While those results would be strong for a Company of any size I think they’re particularly impressive considering how we now have nearly 1,800 restaurants averaging nearly $2.5 million each. Quite simply, I do not think that we would be able to deliver these results without such a compelling and broader vision we have made it our mission to change the way people think about any fast food and we have created an extraordinary food and people culture, and a very strong unit economic model that is allowing us to do that. Recently we’ve seen strong evidence that our commitment to sourcing sustainably raised ingredients is resonating with many consumers. In January we decided to spend one of our pork suppliers after a routine audit reveal that they were not following all of our animal welfare protocols. Choosing to suspend the supplier meant that we would not be able to supply carnitas to about one third of our restaurants. While we could have chosen to replace this supply with pork from conventionally raised pigs, we decided not to because most conventionally raised pigs are subjected to conditions that we find unacceptable. Conventionally raised pigs are typically raised indoors with no outdoor or access to [indiscernible] and are typically given antibiotics non-therapeutically to simulate growth and to prevent illness from spreading due…

Thanks Steve. Our ongoing ability to deliver impressive financial results arises from a special culture that we’ve built at Chipotle that has led to the development of strong leaders. These leaders are able to attract very talented people to our company and to develop those people to be at their best. Because of this we’re able do things most of our competitors can’t do. For instance other restaurants rely heavily on automated systems to reduce the amount of training and skill that is necessary to do their work in an effort to simplify training and make operations full proof. On the other hand at Chipotle we hire energetic and ambitious people who have a desire to learn classic cooking skills, how to be a successful leader in the business acumen necessary to run a highly successful business. But we ask even more of our people we ask them to elevate the people around them and we judge all of our leaders based on how positively they do that. By rewarding this behavior we elevate the dining experience our customers enjoy each time they visit which leads to excellent operations. One of the rewards of this kind of enlightened leadership is the rapid promotion of our talented leaders into positions within the restaurants where they can have a greater effect on more of our crew people. Over 90% of our general managers come from crew positions so people are really starting to understand the kind of opportunity that awaits them at Chipotle. The extraordinary culture that we have created with the restaurateur program as a cornerstone is one of the areas where we are unique within the restaurant industry. That’s one of the key drivers of our business and this culture is growing stronger. We’ve made important investments over the past…

Thanks, Monty. We’re proud of results we achieved during the fourth quarter and for the entire year of 2014 as our empowered restaurant teams continue to delight our customers with great service, while preparing and serving a delicious meal made from responsibly raised ingredients to each and every customer. In the fourth quarter we compared against 2013's highest quarterly comp at 9.3% and we’re delighted to be able to serve many more customers and delivery fourth quarter comp of 16.1% on top of that 9.3% comp in 2013. This 16.1% comp help to drive our total quarterly revenue to $1.1 billion, an increase of 26.7% and our full year revenue totaled $4.1 billion and increase of 27.8% on a full year comp of 16.8%. These increased sales are driven primarily by increase customer visits along with an average check increase of 8.3%, increase in average check was primarily driven by the menu price increase we took mid-year of 6.3% and to a lesser extent by continued growth in catering and in group size. We’re maintaining our full year 2015 same-store sales guidance in the low to mid-single digit range, while we’re bullish about the sales trends and the growing consumer awareness and appreciation for our sustainably raised ingredients, in 2015 we will compare against the toughest comps we’ve ever had as a public company. We expect our comps will be the highest in the first quarter and then become more difficult as we begin to [indiscernible] the menu increase starting in the second quarter and then begin to flatten out as we compared to the 19.8% comp in Q3 and the 16.1% in the fourth quarter. As a result of this strong comp our average sales volume for restaurant that have been opened for at least 12 months is now…

Thank you very much. [Operator Instructions] We'll take our first question from John Glass from Morgan Stanley.

Thanks. First John, could you just clarify your comment around food cost particularly that you're not going to take pricing but you might take some pricing and that pricing is against targeted, when would you make that decision if not now, because it sounds like beef is going to stay elevated and maybe you can just frame if you did cover that cost increase what the implications for overall cost inflation might be in that scenario?

Yes John, I know that I can be that precise because we haven't made a decision but when we raised our prices in the middle of last year, we double the increase or the difference between our chicken burrito for example and our steak and Barbacoa burrito, historically we've had about $0.30 or $0.35 up-charge for that and we doubled that to about $0.70 and that at the time came closer or is in the ballpark of covering our additional ingredient cost for serving a steak burrito for example. We'll now get cost as an extra dollar or so to serve steak versus chicken and so, we're actually not covering that up-charge and so it's that situation that causes us to think that we're subsidizing steak and Barbacoa with other items on the menu and that doesn't make sense to us so recognizing that kind of shortfall, we're at least considering raising prices on right now our steak and our Barbacoa. We don't expect to do anything before midyear John, we don't want to have a second increase even though it would be just on a few menu items. We'd rather not do that within a 12 month period, we don't want to double up on price increases. We think in order for us to remain accessible, we want to hold off as long as we can so we'll look and see watch what happens to these prices throughout the next quarter or two and then around the middle of the year we'll decide whether it makes sense to go ahead and do some kind of a targeted price increase as I just described. In terms of the impact John, we did a $0.30 or $0.40 impact or increase that would be a roughly a 5% or so increase as the order of magnitude steak and Barbacoa and say they account for less than a third of our menu, that would be somewhere between maybe 100 to 150 basis point menu price increase across all of our menu. So, it's not a huge impact to our overall menu, not a huge impact to our margins but just kind of gets our individual margins for the entrées that we serve a little bit more in line.

And just a follow up on the food question, you remove pork from about a third of your restaurants and you said the customers received it well, does that have an impact therefore on sales or no impact on sales and is that also in any way feeding into your view on food cost for '15.

John, at this point it seems to have mostly just -- people are just trading off for chicken or beef or in a few cases our other offerings and it doesn't seem to hit sales at all but certainly yet we'll have more time to analyze that.

Thank you.

We'll take our next question from David Tarantino from Robert W. Baird.

Hi, good afternoon and congratulations on a great 2014. Jack, I was wondering if you could comment on how that comp trended throughout the quarter and while there are very strong in an absolute basis they did slow a little bit from Q3 on a one and two year basis so, just wondering what your thoughts are on that sort of modest slowdown that you saw there and then secondly if you could comment on what you're seeing so far in the first quarter that would be helpful. Thanks.

Okay, David, during the quarter sales were lower, accounts were lower in November than they were in the other two months and as we can look back at the quarter and as we look back, our sales trends during November, whether was cold through much of number and I think a lot of restaurant companies all saw the same thing and so we think there might have been a temporary weather impact during November. Now we typically don’t ever say that our comp was negatively affected by the weather because usually when the weather improves or returns to more normal weather our customers come back and it kind of makes up for it. So I don’t know that there was a net impact of weather during the quarter but we did see that our comps did dip November and then rebounded back in December. And then into January so far we’re seeing similar sales and transaction trends not necessarily the same comp, in fact not the same comp because as moved in the first quarter we’re now comparing against 13.3 or 13.4. So obviously that comparison is a tougher comparison but in terms of just absolute transaction at dollar levels in January we’re seeing similar trends to what we saw in the fourth quarter.

(We'll go to) [ph] John Ivankoe from JPMorgan.

Hi, great, thank you. Also a question on pricing and how you think about COGS. 35% in the history of Chipotle is the high number so I just wanted to get a sense of why you don’t consider taking at price increase across the menu as opposed to just isolating that as B to I guess acknowledge the A, you could do in a six or nine months ago and didn’t affect customer traffic at all and secondly just to expect what might be a new economic reality that pricing in general is going up across the economy weather because of commodities, because of labor what have you, and if you can just touch on the point that Steve made in his prepared remarks I think there was a comment about the number of Chipotle imitators that were coming into the market place. You’re seeing any kind of competitive impact what so ever on a local basis I mean we certainly can’t see it on a national basis in your comps that are giving you at least somewhat of a hesitation of the amount of pricing that the concept can handle.

John, I’ll take the menu price concept first. First of all in terms of raising menu prices, we just don’t put a very high importance on our food cost percent as a percent of sales what we’ve always focused more on is what is our overall margin and when we apply that margin to our sales what is our unit economic return which at these sales and these margins and with the investment that we’ve got we’re talking about a 70% or so return on investment which is roughly double what other successful chains are delivering. And so we don’t feel this urge with these margins and these returns to increase price just because our food cost happen to be higher. [indiscernible] our food cost were going to be 40% but we generated 80% return. So our margins will be higher and our returns will be higher, will that be something that investors would expect, I think the answer would be yes. And so our focus is less on individual line items and more on our margins and our returns. The second reason why we’re not in a hurry and never been in hurry to raise prices is part of our vision is to remain accessible. So it’s important that we’ve got to source these high end premium ingredients, sustainably raise ingredient. But we want to be affordable. We want people to feel like they can come to Chipotle as often as they want once a week multiple times a week. And so we would rather err on the side of being more patient and not rushing to raise prices every time some of our ingredient costs move up so that as many people as possible can enjoy Chipotle and I think overtime that strategy has worked well for us. And then some of the other one was on competitor impact. We generally don’t see any sustained impact, when we have a competitor open up right next to us we might see a week, one week, maybe 10 days or something where we see sales will drop a little bit, there might be just curiosity where some of our customers may pick in and may grab meal at another fast casual competitor but those sales come right back, so we’ve not ever seen any restaurant open at near us where they’ve taken sales away from us on any kind of sustained basis.

We’ll take our next question from Jeff Bernstein from Barclays.

Great, thank you very much. Two questions, one just Monty on the development side just kind of connecting the dots around what you said on the people side it seems like find the right people of what’s the inhibitor and they talked about a large backlog and what not. So from a development standpoint is it really it would seem like real estate or like you said maybe increased competition to get those sites that’s kind of the biggest constraint. Is that fair to say or should we assume similar to this year some of the ‘14 that you’re able to upside on the unit growth or at what point maybe would we see an acceleration as the people side is well equipped. And then I had a follow up.

I guess I wouldn’t say that real estate or people, I wouldn’t really pick one of them as being the greater obstacle right now to continue growth. Our people, we feel very good about our people culture like I mentioned in my prepared remarks the ratio of the number of restaurants per field leader is much lower than its tenant in the last several years and we think that gives us a great opportunity to develop more restaurant tours and even where we’re not developing restaurant tours we’re developing a lot of our GMs to get much, much closer to that level. So we feel like there are (very strong) [ph] restaurants if you want to call them that are much, much better and they were getting a lot more they’re getting close to that restaurant tour level. So we feel really good about that. But likewise in talking to our real estate gains they feel really good about what’s out there in the real estate world granted some of the prices are going up because a lot of other concepts are also expanding and growing more quickly due to a better economy but also by the same token Chipotle is a really-really well-known name and landlords are excited to get us on their centers because they believe that we provided real boost to the excitement of their center. And so we find that we’re able to get more than our fair share of deals. But in both the people side and on the real estate side we have very high standards and we want to make sure that we have loads of restaurants tours and excellent general managers and really good field leaders to open up new restaurants. And so we’re always watching that carefully and not wanting to…

And then just to follow up on that as you mentioned kind of the increase in volumes you often talk about I guess around throughput you talk about maybe a second line that you sometimes are catering and online. Just wondering whether there is any potential or maybe in any markets you might offer two lines just some more traditional foot traffic that would seem like that would increase throughput meaningful during peak periods. I don’t know whether that’s ever an option kind of like a (double enjoy) [ph] to for a drive through concept but the ability to just have a second line at least during certain hours of the day to really help the throughput? Is that a (brand) [ph] option?

Yes, Jeff I think the answer is it is an option and it’s an idea that has occurred to us and we even experimented with it. But really what’s most important for us is to continue to implement the four pillars of throughput because right now our average restaurant in the country does something about one third of the transactions during lunch as our fastest restaurant in the country does and so the number one opportunity for us along the main service line is that we can go much-much-much faster and we continue to -- and like I said in my remarks we have gotten quicker even though fourth quarter we’re at a pace that while it’s not as quick as our busiest season is close to and faster than our busiest season used to be at throughput. But we continue to make these throughput gains but we think that there is so much low hanging fruit still in terms of speeding up our restaurants in order to accommodate additional folks that adding a second line would be more disruptive to our operation and to the design of our restaurants than it would be helpful to the economic model at this point. That being said we do have to keep in mind in almost all of our restaurants a secondary client that we’ve historically referred to as the fax line where we can serve catering orders out of store orders, iPhone orders and such that keeps those orders many of which are larger orders off our main service line. Early in my comments just now I mentioned that we had tried the two line method. We have a restaurant in France at [indiscernible] which is a business center in [indiscernible] Paris where we do have -- its one really long line but people tend to go in two directions so it is two service lines with two separate areas, two separate cash registers and so forth. It works and it works just fine, like I said it’s just not a strategy we need to implement right now and in that location we had a situation where we had a lot of additional square feet where we could put that in to place without losing other aspects of the operation. So, at this point we’re going to continue to focus on the main service line implementing the four pillars of throughput and driving great throughput so that we can have a nice tiny efficient unit economic model.

We’ll go next to Nicole Miller from Piper Jaffray.

Thanks. Good afternoon. Entrée from a company or concept perspective why don’t you just dictate something more structural and then you price practice that kind of systematically takes 1%, 2%, 3% a year and there is certainly patented statistical ways to do that that protects the value proposition? Also thinking about the stock perspective it seems to create a lot of volatility in the share price just from not always fully understanding or appreciating when you are or when you’re not going to take price. So could you comment on it from both perspectives please?

First of all, Nicole, none of our discussions about price and what we should charge and ingredients to source and what the going rates of that -- how should price additional food integrity initiatives what kind of price we should charge, none of that ever involves a discussion of the stock price. And so our belief has always been that we have the vision to change food culture the past food culture in this country and if we're successful at that we just believe that we can have lots and lots of value and we've done. We've done that I think even maybe more than a lot of people including ourselves thought were possible 8 years ago when we first went public and so we think that our vision is working or is becoming a reality. People more than ever care about where their food comes from. Recognize that Chipotle is offering something that many other restaurant companies don't or are unable to offer and so we've always been guided more by our vision than the stock price knowing that the stock price will take care of itself if we're successful. Then back to why not choose to kind of an every year thing. It's not linear, food inflation is not linear and so we don't think our price increases should be linear and in addition to that even if you did have regular inflationary pressure, we're constantly investing in our food and so we might have significant investments that we want to make one year and in the early days when we were first introducing that for the rates needs to our market that would dictate the timing of when we will go ahead and raise prices. And so we don't think that the way our cost either because of food integrity or because of inflation is ever going to be kind of a linear one to 2% or 3% per year and so we don't think the pricing should be linear as well so that would be the way I would describe it.

Thank you.

We'll go next to Joe Buckley with Bank of America Merrill Lynch.

Hi, thank you. Jack, did you mention a $2 million first quarter charge in connection to the pork issue and if so, could you explain?

Yes, we had supplies of pork that were in various -- some of the supplies were in our restaurants, some was in our distribution centers and so the cost of removing all of that pork and disposing of it we were able to donate a lot of it, we're able to sell some of it but in that we've to take a loss Joe and so that loss will total about $2 million, we don't think it will be more than 2 million but we think it will cost about 2 million and that will here our food line during this the first quarter.

Okay, is there any breach of contract this year that you should pursue?

Possibly, we haven't done that yet, our first concern was what are we going to do? How are we going to make sure we don't serve this pork and we're now working with our supplier [indiscernible] what the next step is, so there is a possibility but as of right now Joe, we're going to take the hit and if there is any kind of -- the other thing is rather than go and make this a legal issue we'd like to do is we'd like to find a way to get this supplier to rise up to our protocol on a more consistent basis and so rather than this being a legal issue we'd rather look at this as how can we make sure that we can assured supply going forward and that would be more important.

Okay, then maybe just one on development side Mark, I think you said you opened some lower -- the cost you decided to be a little bit lower in 2015 as you should shift away from free standing, away from the Northeast in '14 but the new store volumes are still expected to be higher. Does that again is that the message and could you just explain a little?

Yes, I mean we didn't make a specific comment on where we think the new store opening levels are going to be but we're very confident in the pipeline of real estate that we have in front of us and our real estate people feel very good about it, so we have no reason to believe that we won't continue to open restaurants in that 1.8 million, 1.9 million sort of range. The reason that we believe development costs are going to come down is people, one thing is that just in 2014 we had an unusually high number of free standards. Sometimes we sort of take what we can get that's not necessarily the result of a strategic objective to open more of them we just happen to find more of them in 2014 that met our screens and look like exciting pieces of real estate that we should build Chipotle restaurants in. In 2015 it's looking like a lot more of our mix is going to end [indiscernible] locations which tend to do wonderfully well but also tend to cost less to build, more of our bread and butter you might say. So, also we think we can get development cost down because we're working very hard from a design standpoint to implement some of our new better design methodologies but to do it in a more efficient way and to gain some economies of scale on what we're doing so we're approaching the development cost puzzle from a number of different directions but strategically we're not trying to eliminate free standards, we just understand that the [indiscernible] locations that we do very, very well with them and during 2015 it looks like more the pipeline is comprised of them than it was in 2014.

We'll take our next question from Karen Houlthouse from Goldman Sachs.

Hi, so the commentary on sequential trends and the quarter and end of January, are we to take that basically as if sales per week seasonally adjusted were flat and if so if there is still incremental opportunities on the throughput side why isn't that continuing to grow and I'm also curious it relates to sequential trends as well if you thought you were seeing any sort of benefit from the stronger low income consumer that's kind of become a buzz word across the restaurant industry given what I think is very legitimate possibility and value even to lower consumer compared to what you typically think of as a fast casual company.

First of all on the sequential trends I think the answer is yes, but let me clarify that we’re talking in the same language yes, for the first -- end of January for the first -- the next four and half weeks or so end of the quarter similar sales in more transactions seasonally adjusted that we saw in the fourth quarter, that would be at higher level than last year. So when you say flat yes flat sequentially but not flat compared to last year. In terms of higher throughput, higher throughput really comes in to play more or so as we move into the spring month. This is seasonally our lower average daily sales period and so throughput's important throughout the year but it becomes even more important as the weather gets nicer as more and more people are out and about and our lines tend to get a little bit longer and if our throughput is excellent at that time the lines actually won’t get longer and so people will walk in a Chipotle, we serve quickly and so at that point we expect to see a benefit. In that sense Karen for us to change that trend line we’re going to have to invite more customers in have faster throughput as I mentioned as we hit more of our seasonally higher sales month and hopefully we will see a trend change, very often we do see a trend change or two or three during a year was just happen to see one as we’ve moved just a few weeks of the fourth quarter and into January so far. And then in terms of the impact on the customer Chipotle has never really seen a lot of sensitivity in terms of when customers -- when the recession first hit. We weren’t the first in fact we were one of the last ones to see any impact on our sales and when the recession was ending and we were coming out of recession we were one of the first ones to see a sales increase and we returned to double digit comps pretty quickly as the recession was ending. And so generally our customers come to Chipotle sure they say its great value when we do research our customers give us very, very high scores on the great value. But we have very loyal customers such that they don’t stop coming to Chipotle when they have few less dollars in their pocket and then all of a sudden say, boy I’m going to start going to Chipotle more often because I've got a few more bucks. I think the good news here is that people find ways to visit Chipotle and it’s not necessarily affected by whether they’ve got an extra bucks in their pocket. Our customer loyalty kind of overcomes these what I will call relatively minor changes in our customers' spending ability.

And as a quick follow up, you really haven't seen sequentially trends sort of stabilized, what’s the thought process around if not more explicitly addressing that with you on their spend of marketing versus the peer group, you are more explicitly addressing it in some of the -- nuts and bolts ways to get more people in the door.

Well, geez, the comp was 16.1% so are you saying spend more money to get a higher than 16.1% comp? I’m not sure I understand the question.

Well sequentially things have stabilized week over week or month over month, there aren't more people coming in the door, you basically are just staring down or perpetually decelerating comp, why not be more proactive about putting things in place that will -- prevent that.

Well, for about -- I don't -- for over 20 years we’ve been working very hard to improve every aspect of the customer experience. So for instance we've got roughly speaking the same menu we had 20 years ago. During all of those 20 years and particularly during the years since we’ve been public we’ve been hearing a crescendo of people wondering why we don’t add additional menu items and change other aspects of what we do and yet we’ve had the highest comps I think in the history of the restaurant business during that time and likewise we keep trying to improve the quality of our cultures so we have better people serving you. We’ve been increasing -- improving the quality of our average raw ingredient, every ingredient we have has been under our scrutiny, in order to make sure the food test as good as it can take. Then we work on throughput to make sure that that aspect of the customer experience also improves and what we find is that by focusing on those things that we do really, really well but yet getting even better at them we’ve been able to sustain a much stronger comp than any other restaurant company has done. So it may look like we’re staring down the pike at sort of flattening sales and no increase in comps, it looks that way 10 years ago and nine years ago and eight years ago and seven, six, five, four three, two, one years ago I think even a year ago if you looked at what our guidance was for the year I believe at the very beginning of 2014 we said that there will be a low single digit comp I think are flat to low single digit comp and that looked like what it was going to be at the time. How did we get to a mid-to-high-teen comp doing that which we do even better and so it is possible of course that our comp will flatten out and there won’t be sequential trend changes to the positive but we hope that our continued focus on trying to do everything we do better will work out just super.

We’ll go to next question from Jeff Farmer from Wells Fargo.

Jack you touched on it but you increased your labor staffing ratios in early ‘14. I think you addressed largely the double digit transaction growth and some other things but as we’re modeling the labor line in ‘15 how should we be thinking about staffing levels relative to what we saw last year, meaning you think there is another little bump in staffing levels? Are you going to hold tight with what you saw in ‘14?

Jeff I wouldn’t expect another bump, now we’ll add people as we see more transactions so as our comps continue to be in the high single or low double digit we’ll add people at kind of a normal level, I would expect that it would not be as much as we saw in the last year or so. We talk on other calls that we have some labor inefficiencies and so we have more staffing at restaurant level and I think we have just more approved that we can schedule. We have more managers, hourly or salary managers and hourly managers on our teams than ever before. And so the hours that were to appoint are higher than we think they normally should be even at these very high comps that we’ve been delivering. But we’ve also said we’re not going to be in hurry to go shape those inefficiencies out of the restaurant. It’s been an extraordinary year in terms of throughput, in terms of transaction, we’ve moved to a whole another sales level here. And so the fact that we’ve had some what I call relatively modest labor inefficiencies somewhere in the maybe 50, 60, 70 basis points kind of range. We’re not going to be in a hurry to shape that loose. We’re aware of it, our teams are aware it and so I wouldn’t see additional inefficiencies creep in and at some point in the future I just wouldn’t want to pinpoint when, we believe we will get this efficiency back but I wouldn’t see a similar kind of step up for the reasons I just mentioned. I think you will see another layer of inefficiency creep in like you’ve seen in the last year and half.

Just one quick follow up, so excluding stock-based comp, which means that clearly that we still need to figure out what that number potentially could be, so again excluding stock-based comp how should we be thinking about G&A dollar growth in ‘15 or even absolute sort of G&A dollars in ‘15?

Yes, I would expect at this level Jeff, that our G&A excluding non-cash comp and excluding any kind of one-time things that might happen will be at a similar but hopefully slightly lower as a percentage of sales. There is not a ton of leverage but I would say there is slight leverage that hopefully we will get as I would expect the G&A as a percentage of sales anything stock comp should drift slightly lower over the coming years.

And this does conclude the question-and-answer session of today’s call. I’d like to turn the call back over to Mark Alexee for any additional or closing remarks.

Thank you for joining us. We really appreciate it. We look forward to speaking with you next quarter for our first quarter financial results. Thanks.