Good morning, and welcome to the Restaurant Brands International First Quarter 2025 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions]. After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions]. Please note, this event is being recorded. I'd now like to turn the conference over to Kendall Peck, RBI's Head of Investor Relations. Please go ahead.

Thank you, operator. Good morning, everyone, and welcome to Restaurant Brands International's earnings call for the first quarter ended March 31, 2025. Joining me on the call today are Restaurant Brands International's Executive Chairman, Patrick Doyle; CEO, Josh Kobza; and CFO, Sami Siddiqui. Following remarks from Josh, Sami and Patrick, we will open the call to questions. Today's discussion may include forward-looking statements, which are subject to risks detailed in the press release issued this morning and in our SEC filings. We will also reference non-GAAP financial measures, reconciliation of which are available in the press release and trending schedules available on our website. As a reminder, following our acquisition of Carrols Restaurant Group, which closed on May 16, 2024 and our acquisition of Popeyes China, which closed on June 28, 2024, we introduced a sixth reportable segment, Restaurant Holdings, which comprises the Popeyes China business and the Burger King Carrols Restaurant. The consolidated growth metrics discussed on this call, including organic adjusted operating income growth and organic adjusted EPS growth exclude results from the Restaurant Holdings segment. In addition, on February 14, 2025, we acquired substantially all the remaining equity interest in Burger King China from our former joint venture partners. Commencing with our first quarter 2025 results, BK China has been classified as held for sale and reported as discontinued operations in our financial statements as we are actively working to identify a new controlling shareholder. That said, BK China KPIs continue to be included in our International segment KPIs. A breakdown of BK China's KPIs and its impact on our 2024 financial statements can be found in the trend schedules available on our website. And now, I'll turn the call over to Josh.

Good morning, everyone, and thank you for joining us. Through the first few months of 2025, we've been navigating a highly dynamic macro backdrop, one that's evolving differently across each of our key markets. As a global franchisor, offering convenience and everyday value for guests, we're certainly better positioned than many others to navigate this evolving environment, but we're not immune and our Q1 results reflect that. First quarter consolidated comparable sales were 0.1% or just over 1%, excluding the impact from Leap Day, and net restaurant growth was 3.3%. This translated into system-wide sales growth of 2.8% and organic adjusted operating income growth of 2.6%. We anticipated that Q1 would be our softest quarter of the year and believe that some of the macro noise may have driven further softness. That said, we continue to perform reasonably well compared to many of our global peers, reflecting the underlying strength of our brands and the quality of the plans we are executing to improve on the fundamentals that our guests care about most. We know relative performance alone isn't enough and doesn't pay the bills for us or our franchisees though, which is why we're focused on delivering improved absolute results through the balance of the year. In any environment, our guests are focused on quality, service and convenience at a fair price. And our teams are focused on exactly that, improving the value proposition for our guests at each of our brands and making that experience better each time they come in. Whether that is newly remodeled restaurants of Burger King and Popeyes or improved service standards at Tim Hortons in the PM daypart, we're spending our time on what matters most. That's why despite the slower start to the year, we were encouraged to see improved sales momentum…

Thanks, Josh, and good morning, everyone. Today, I'll discuss our Q1 financial results, capital structure and 2025 financial guidance, and I'll also provide an update on our Burger King China acquisition. But before that, I want to address the long-term growth algorithm we introduced last year. While we exceeded our 8%-plus AOI growth target in 2024, we came in below expectations on NRG. This reflected a more complex operating environment than we had initially anticipated, one that is only intensified in 2025. As a result, we believe it's prudent to reframe our long-term outlook to better reflect today's realities. We're maintaining our target for 3%-plus comparable sales and 8% plus organic AOI growth on average through 2028. However, we are updating our net restaurant growth expectations in the near term, primarily due to Burger King China. As Josh mentioned, since acquiring China in February, we've seen encouraging early results. The sales at BK China have improved under a refocused marketing plan and an energized local management team. That said, the portfolio needs some cleanup to set the business up for long term -- for success long term in the hands of a new partner. Because of this transition at Burger King China, we expect total reported 2025 NRG growth to be slightly down from last year in the plus or minus 3% unit growth range, down a bit from the mid 3% growth we reported in 2024. Once this transition is behind us, we're confident BK China will return to positive growth, allowing us to ramp back to 5% global NRG growth towards the end of our algorithm period, which will equate to around 1,800 net new restaurants per year. When we think about the building blocks that is 1,800, we continue to believe in the path that we laid…

Thanks, Sami. We can't control the macro environment, but we can control our complexity. We're operating in a moment of peak complexity, but our business will get simpler from here. What does that mean? First, we've started the process of refranchising Carrols to internal candidates from within Carrols to existing strong franchisees and to great external franchisees. We will only put these restaurants in the hands of people who we believe will run them very well. While it will take a number of years to complete the process, you will start to see our owned restaurant count decline this year. We took on BK China. We've made great progress in the 3 months since we bought it, and we've now hired Morgan Stanley to help us find a great new partner. Third, we're making real progress on BK in the U.S. We've moved on from some partners who weren't the right long-term answers. Our operations are improving, and we're on track to have the vast majority of our restaurants be modern image by the end of 2028. It has taken meaningful investments and tough decisions, and it won't always be a straight line of progress, but we are on track. And finally, the net effect of what will be decreasing complexity is decreasing capital commitments from us over the coming years and a more stable cost structure that drives operating leverage as Sami just spelled out. In the end, success is defined by franchisees generating great returns from committing their time and capital to our brands. And I'm confident our franchisees' success, will happen when they consistently make great food, deliver great service in an attractive clean restaurant, all at a good value. Tim Hortons and its restaurant owners in Canada are a great example of this winning formula. All the complexity we've taken on has been about setting us up everywhere to be able to do just that. Where we felt like there wasn't a convincing path to get that done, we made changes and committed capital when needed. As our investors, we appreciate that we've asked for some patience as we make these investments and the return on those investments is coming. It came in 2024 by generating adjusted operating income growth of over 8%, and we believe it will continue this year and into the future, as we've set ourselves up to continue delivering adjusted operating income growth of 8% or better. We've been managing through the hard stuff to unlock a much stronger, more resilient business in the future. And when I look across our organization, I see the right people working on the right priorities for all the right reasons. I'm excited for what's ahead and grateful to our franchisees and teams who are consistently providing better experiences to our guests every day. With that, let's take your questions.

Thank you. [Operator Instructions]. Our first question comes from Dennis Geiger from UBS. Your line is now open.

Wondering if you could talk a little bit more about what you're seeing with Tim Hortons in Canada. How much do you think you are being impacted by the Canada macro environment right now and maybe expectations for the brand's resiliency in the market if the challenging backdrop persists? I don't know if there's anything to kind of share on the value proposition, how the back-to-basic strategy will help you take share just overall remain resilient in the market?

Morning, Dennis. It's Josh. Thanks for the question. I think you've done a lot of great points. And for me, it really does go back to the -- back to basics plan that we've been executing for, I think, five years or more now. I think Axel and team are doing an incredible jump across all the fundamentals, and that's why -- you've seen Tim’s in Canada performed so well over the last few years, and it's why we're so confident that it's going to continue performing well in the coming quarters and years. In Q1, I think we had more of an in-line quarter with the other big brands in the market. And I think to your point, we did see a little bit of a dip in consumer confidence. If you look at the Canadian Consumer Confidence Index, but importantly, we've seen that come back in the second quarter to date so far. We've seen a bit of an improvement in consumer confidence. And I also mentioned that Tim sales have come back really strong. We've got some awesome things going on in the business. You just saw us launch the -- a new loaded scrambled eggs box with Ryan Reynolds, that's doing great. And we have a lot of exciting stuff for the rest of the year. So we're feeling really good about the Tim's business. It's been doing wonderful, and we're very confident that we'll continue to do that in the future.

Great. Thanks, Josh.

The next question is from David Palmer from Evercore ISI. Your line is now open.

Great. Thank you, good morning. Looking outside the U.S., rest of world markets, how are trends in the informal leading out market in your key markets coming out of the first quarter and as you look out to the year, just how you view the consumer in your key markets? And then separately, how are you looking at your market share trends in key markets around geographies around the world? Thanks so much.

So a few thoughts on the international business and some of the trends there. Maybe a few kind of stepping back thoughts on the International business, too. I would tell you that we were really pleased with the results in Q1. We had same-store sales of positive 2.6%, and that gets up into kind of the high 3s, excluding the impact of leap day. So I think that's a pretty good absolute result and also a pretty good relative result when you look at some of the other global brands out there. It's really an incredible business that we have and very diversified business. We're in around 200 brand country combinations, and our top 10 markets are about 60% of our international system-wide sales. So a lot of different dynamics in each of those countries. I think when you look at the Burger King brand in international, it's a bit different. It has some really great qualities that are -- that position it to grow so well. We've got a strong brand positioning. We've got modern restaurants in almost all of our markets. We have a lot more digital business as well. And because of a lot of those things, we have pretty great brand perception and really good food quality perception in those markets, where we balance some of our favorites like the whopper with strong localization that each of our teams bring. We also have a different level of execution and guest service. I think we're much more consistent across our international markets. That allows us to perform much better. And we have some incredible partners. I mentioned a couple of them earlier, but across the globe in places like France, Spain and so many others, we have some of the best international master franchisees that you could…

The next question is from Brian Bittner from Oppenheimer. Your line is now open.

Thanks. Good morning. As it relates to Burger King U.S., it was very encouraging to see the first quarter same-store sales much better relative performance versus your peers. I realize this is the culmination of a lot of work. But is there anything more specific that allowed you to win more clearly in the first quarter? And how would you frame your outlook for Burger King U.S. for the rest of the year, just given the challenges from low and middle income consumers that we've heard a lot about from your peers?

Hey, Brian, this is Patrick. Let me step back a little bit, answer around BK but also broadly around the business. I mean outperformance over the medium and long term is driven by consistently improving your guest experience, not just from promotional activity. And across our business, I know we're making really strong gains on execution. Tim's is the best run restaurant chain in Canada, and it continues to get better. It's why I'm incredibly confident about it. But in the case of Burger King in the U.S., it's winning by running restaurants better. And that has often been with -- through new ownership. It's through now rapidly remodeling our restaurants to a great new image. It is really through executing the fundamentals. And as you look at -- we've talked about with the kind of the mid-teens lift from remodels. You're starting to see enough of those being done on a consistent basis, essentially one a day getting remodeled in the U.S., and I think you're starting to see execution flow through into results. And I think that's the big reason you've seen relative outperformance from BK in the U.S. over the last year and in the first quarter. And you look at international, as Josh was just talking about, I mean on average, it's really well run. And where we don't see a path, we make a change, like we did with BK China, where we're already making progress. So it's the same path ultimately at Popeyes and Firehouse. And so the foundational work is being done, and that's why I'm more optimistic about our business than ever. And I think that's really the foundational work that you're seeing being done in Burger King in the U.S. is what's starting to show up on our relative performance.

And if I can -- the only thing I would add to, I agree very much with what Patrick said. I think we've made significant progress on operations, and we started to make progress on remodels. I would say I still think we have a long way to go. We still have a lot of remodels to get done. We've got a lot of restaurants that aren't at the modern image. And while we have some -- we have pockets of restaurants that have dramatically improved operations and our doing much better than the average there, we still have some pockets of operations that aren't where we want them to be, that we need to turn around. And so I think those couple of things will continue to be the undercurrents that can drive relative outperformance. But as I mentioned in the prepared remarks, we want to see absolute performance, too, and we need to get better from where we were in Q1. And I've been happy to see that we have seen improvement in the absolute same-store sales coming into Q2, and we'll look to build on that as we get through the rest of this year. We've got some really exciting calendar stuff coming up, including one of these really great family promotion that we're going to launch here in the next month or so and some great additional focus on the Whopper, some refreshes on value. So we've got a very thoughtful and comprehensive calendar approach for the rest of the year that can help us continue to build on that momentum.

Thanks, Patrick.

The next question is from John Ivankoe from JPMorgan. Your line is now open.

Hi. Thank you. So a couple of questions. So firstly, on the capital intensity that you gave through '29, and thank you so much for that. Certainly, that's going to be very helpful for the model. But let me ask a couple of things. I have in my notes, you're expected to do 3,000 Burger King remodels. I think that's the number through the end of '28. So it's obviously a pretty big number from '25 to '28 on a per year basis. So can you give us the number of remodels that you're expecting at least in '25 and '26? So that's the first question. And the related question, in the longer term, $300 million of CapEx in '29 and beyond, is that just kind of a placeholder number? Or can you help us think about where some of the major buckets of that $300 million will be, especially, and I guess I'm going to make the assumption that new company store development isn't a major part of that number.

John, it's Sami. Good morning and thank you for the question, and thank you for a similar question in the push on the last earnings call. I think as we sort of reflected, we thought it would be helpful to give everyone a little bit more long-term visibility into kind of what the CapEx looks like. So kind of to take some of the pieces of your question first on the Burger King remodels. I think as we think about the pace, we think we'll do about 400 remodels this year in 2025. And we think that number will accelerate in 2026. I think your aggregate number of remodels. I think when you do the math, I think the way to think about it is, we're today at around 50% modern image in our system. And we want to be at 85% modern image by the end of 2028. So there's a couple of puts and takes to that. Certainly, the number of remodels we do in a year adds to that. The number of new restaurants we open growth in a year will add to that. And then the closures of older image restaurants will kind of take that percentage up. So I think that's sort of the bridge to getting to around 85% modern image by 2028. I think it's more like 2,000 remodels versus maybe the 3,000 remodels that you had in your notes, but that's the bridge. And Kendall and I can share that with you later. As you think about what the $300 million looks like on a run rate basis after kind of the guidance period in 2029 and beyond. I think for $300 million, I think a good chunk of that actually continues to be our Tim Horton's system. So our Tim's system,…

Extremely helpful. Thank you.

The next question is from Gregory Francfort from Guggenheim. Your line is now open.

Sami, not to throw another one your away, but can you maybe just expand on the cost savings that you mentioned in your prepared remarks. When you looked at the organization, what you're doing strategically from like what departments may be that will hit or what the reorganization looks like? Thanks.

Hey, morning, Greg. Yes, I think as we took a step back and about sort of nine months or so into our Carol's acquisition, and we look to integrate Carol's as well as Popeyes China, Firehouse Brazil, which we recently launched. And then as we kind of look at the current operating environment, it seemed like a natural time to evaluate opportunities to run our business more efficiently. I think the major areas that kind of this exercise covered was headcount, some technology and services contracts, things like stock-based compensation, taking a fresh look at that. And it ultimately drove approximately around $20 million of year-over-year savings as you think about ending last year around $630 million of G&A and then the midpoint of our guidance range being around $610 million. So as you think about that, it's kind of low single digits in terms of a year-over-year decline. I think around $600 million, that number, it's a healthy baseline level of G&A for our business, a good baseline for us to kind of grow off of. But I think if you take a really big step back -- if you think about five or six years ago, our business was running at around $400 million of G&A in the kind of 2019 time frame. And so as you think about going from $400 million to kind of low $600 million, that's a 50% increase in G&A over the last five or six years, and most of that has been headcount. I think as you think about that, that's a very healthy level of growth. I think now with this kind of low $600 million G&A level, we think we're able to invest in the right areas, do the right things and ultimately position our business to drive operating leverage over the long term.

Thanks, Sami.

The next question is from Danilo Gargiulo from Bernstein. Your line is now open.

Thank you. Sami, one more for you. So can you help us understand maybe the comp sales contribution in the past quarter and in the past year, perhaps due to the remodels at Burger King in U.S.? And how much are you expecting that to be $425 million. And then if you don't mind, Josh, you also mentioned that you're planning to invest in value more for Burger King U.S. and we heard from one of your competitors that the other promotions are not matching the results generated by the $5 meal deal, which is no longer available at Burger King. So has the $5 duo, $7.3 outperformed to the level that you expected and how you're planning to evolve your value offering? Thank you.

Hey Danilo, just quickly on the question around sort of the comp sales impact of remodels. At this point, it's going to be relatively small. I think as you think about the number of kind of remodels we've done, we want to do 400 this year. I think last year, we did closer to 300, but it takes a little bit of time for these to settle down and to normalize from a sales impact perspective. So I think most of the sales upside from the remodel impact is to come down the line. And we're still really pleased with the mid-teens sales uplift we're seeing. As that starts to flow through the system and you think about remodeling 400, 500 restaurants per year, it's kind of the math that flows through that proportion. Hopefully, we have more to update as kind of we do more of our remodels.

And Danilo, maybe I can try to clarify a little bit what I meant on the value side for BK U.S. What I intend to say was less that we're going to invest further into value than we have been currently. But rather, what I think you should expect to see from us over the course of the year. It's just continuing to refresh some of those value offering. So we might have new promotions, like you saw us move from $5 meals to the $5 duos and $7 trios, we'll look to continue to refresh some of those mechanics and bring new ways to talk about it and new offerings to guests. So that's more of the plan than kind of pushing further in terms of the relative weight in the business.

Great. Thank you.

The next question is from Andrew Charles from TD Cowen. Your line is now open.

Great. Thank you. You talked about returning to 5% portfolio net restaurant growth towards the end of the '24 through '28 time frame. And so curious if the message of this can be achieved in 2027? Or is it more prudent to assume this will take place beginning '28? And then lately, I'm just kind of curious about the confidence in returning to this just given it requires a contribution from BK China, which hasn't yet found a permanent odor? Thanks.

Hey morning Andrew. Yes thanks for the question. I think as we think about the path to 5% unit growth, we talked about getting there towards the end of our guidance period. And I think at this point, sitting in 2025, I don't think we can predict exactly if it will be in 2027 or 2028, but around that time frame. I think as we think about the confidence level is actually -- we're very confident in our ability to hit 5% over time. I think when we take a step back and look at where the buckets of growth will come from, I kind of look at it in three categories. I think the first category is our home market and what we're doing in our North American market. And we want to do around 400 -- as you think about the total bill to 1,800 units, we want to do 400 units by the end of that forecast period from our home markets. I think as you peel that back, if you look at Firehouse and you look at Tim's, particularly Tim's in Canada, accelerating, that will lead to a nice tailwind in our home market. BK will likely go from a negative net unit position to flat to modestly growing, which will be a nice tailwind. And then if you look at Popeyes in the U.S., we've stepped back a little bit as we've really focused on fortifying our operational capabilities in our restaurants, but we think we can get back to 150 units plus over time. So I think when you take all of those together in the home market, you see it pass to around 400 net new units there. As you kind of think about the big -- the second big category of restaurants,…

Thank you.

The next question is from Sara Senatore from Bank of America. Your line is now open.

Thank you. I guess, two parts. One is, could you just talk -- you talked about the backdrop. Could you talk about the consumer and whether you're seeing any broadening of weakness from low income to middle income? Just -- that was something that we've heard reference. I wanted to know if that thing you've observed too. But then one of the -- I guess, the question on Tim's, you mentioned growth in the core market. It -- optically, it looks like just as unit growth is stable or positive, your same-store sales are slowing. And I know some other QSRs have cited strength in Canada. So do you have any evidence that there's a trade-off between unit growth and same-store sales, maybe looking at regional trends, like where the unit growth is, what same-store sales looks like? Just some confidence that you don't have to trade those two? Thank you.

Thanks, Sara. I'll take both of those. So just in terms of consumer environment and behavior of different cohorts, we actually aren't seeing our data, at least a big difference in the performance, like directional performance of different income cohorts in the U.S. So we haven't seen that pattern as much, at least in the data that we have. What we did see is that consumer confidence, if you look at the kind of the main indices, whether in Canada or in the U.S. They did take a bit of a dip from Q4 into Q1, and that seems to have correlated with some overall market softness. We definitely want to see that go the other way. I think the good news is that we're seeing some of that and some early signs of Canadian consumer confidence coming back a little bit in the last couple of weeks. And that does seem to correlate with some improvement that we've seen in our overall business in both in Canada and the U.S. so far in Q2. And your second question on Tim's. We don't see that trade-off of same-store sales versus units stabilizing, so I don't have any data that suggests that's what's happening. I would assume out again and tell you, I think this business has done so well over the last few years and for all the right reasons. And we're very confident it's going to continue to do well. And like I said, we're seeing that again in Q2 so far. We've had a lot of really compelling things going into market, and we have a lot more to come over the summer. So we're pretty confident in the direction of the Tim's business.

The next question is from Jon Tower from Citi. Your line is now open.

Thanks. Sami, I was hoping -- I know you guys had spoke to earlier in the -- on the fourth quarter call that 1Q is going to be the low point for the year for growth. I was hoping maybe you could walk us through kind of the puts and takes for how you get to that 8% adjusted operating profit growth for the year. Obviously, knowing first quarter was kind of that low point how much of a contribution you expect from this lower G&A growth on the year and maybe other factors as we should think through the model?

Good morning, Jon. Thanks for the question. Yes, as we think about it, first off, I'd say we feel good about our ability to deliver 8% plus AOI growth this year. I think it's sort of a combination of top and bottom line. I think Josh mentioned it, but I'll iterate, we are seeing improving sales trends in the business and are hopeful those continue. And from a unit growth perspective, we think it will be around plus or minus 3%, which I think both translate into kind of a healthy system-wide sales top line. And then as you think about driving operating leverage in the business, yes, a big chunk of that is the G&A. I think we're going to see kind of a low to mid-single-digit year-over-year decrease in segment G&A, call it, roughly $20 million or so year-over-year at the midpoint of our guidance range. But then we also have a structural tailwind of around $60 million of ad spending that rolled off at Burger King U.S. that kind of moved over to our franchisees investing in the ad fund. And so that $60 million kind of rolling off also helps drive the operating leverage year-over-year. And I'd say the only other thing to call out is there's a partial offset there at BK China. I talked about kind of now sitting in discontinued operations until we find a new partner. So with that kind of accounting treatment, there is a $19 million headwind from the loss of royalties and fees at Burger King China. They were in the prior year in 2024, but they won't be in 2025. So when you kind of put -- take all those together, we feel good about the ability to drive 8% plus AOI growth this year and beyond.

The next question is from Eric Gonzalez from KeyBanc Capital Markets. Your line is now open.

This is Chris [ph] on for Eric. Can you maybe expand a little bit more on the recent performance you've seen at Popeyes and the implementation and progress of the easy to love strategy. And maybe specifically, can you talk a little bit more on operations, maybe ahead of the step-up in advertising, Josh, I think you cited earlier? Thanks.

Hi, Chris, good morning and happy to tell a little bit about Popeyes. So we did have a bit of a softer same-store sales quarter. We expected that to some degree, given what we knew we were lapping over with our first-ever Super Bowl commercial in the prior year, which we didn't repeat this year. That said, we're very focused on driving improved momentum in the business across a number of fronts that are covered in the easy to love plan. I think part of that is an increase in advertising spend that started now in April. So we're stepping up our national advertising, which will give us increased share of voice, and we definitely think that should be helpful. We're also starting to remodel our restaurants, and we talked about our plan to have fully modern assets by 2030. And as we've seen with Burger King, that definitely starts to give you a tailwind in the business. But on top of that, now we think increasing operational consistency, guest experience is also a very important part of the path forward for Popeyes, I think we're doing -- we're making some progress there through rolling out our easy-to-run kitchens. And we're now in a couple of hundred restaurants, and we'll be progressively rolling that out over the next few years to have a more standardized operating system in the kitchen, both the layouts, the operational flows and the technology. So we're very encouraged by that, and we know we'll make progress there. And lastly, as I mentioned, we're going to be raising the bar a bit on operating standards across the franchisee base similar to what we've done at Burger King over the last few years where they made a lot of progress. I think we're going to be stepping up standards at Popeyes. I think those are all the things that drive the fundamentals of the business and I think add on top of what is already by far the best culinary team and the best food in the chicken space. So I think if we can bring all that together, we should see progressively better performance over the coming quarters and years at Popeyes.

Great. Thank so much.

The last question we have time for today is from Christine Cho from Goldman Sachs. Your line is now open.

Thank you so much for taking my question. So I was wondering if you can provide some more details on the sales growth and share trends in the various categories in Tim Hortons between breakfast food, Tim, cold beverage, et cetera. And are you seeing any signs of elevated pressure in any particular part in the Canadian market and the other macro backdrop? Thank you.

Yes. In terms of the market share trends, -- we're still doing well in terms of market share in hot brewed coffee. We actually grew our hot brewed coffee dollar share year-on-year. So things are going pretty well in that part. We might have seen a little bit of softness in things like breakfast sandwiches, but I think we'll see a lot of progress with that now here as we get into Q2 and the rest of the year, we brought a lot more focus now in the calendar, things like our new promotion with Ryan Reynolds. So those are some of the kind of the main trends. And I think what you'll see us focus on for the rest of the year as we get into summer, we're going to be focused a lot on cold beverages. We just had some new launches there and you'll see more over the course of the summer. And we're also going to be very focused on some of our PM Foods. So you'll see a lot of that in the calendar over the next couple of months and into the back half of the year. That will help us to take more share in PM Food anything that, Sami, you want to add to that?

I would just add that the PM food share did increase in the quarter as you saw the impact of flat breads and loaded. So going to Mac's point, we continue to build that daypart and are pleased with the market share increases we've seen in that category.

Thank you so much.

This is the end of today's Q&A session. I'd now like to hand the floor back to Josh for closing remarks.

Thanks. Just to close, I'd like to extend our sincere thanks to both our franchisees and our teams for doing a great job this quarter in a tough environment. I'd like to thank you all for joining us today for the call, and we look forward to updating you again with our Q2 earnings. Thanks.

This concludes today's call. Thank you for joining. You may now disconnect your lines.