Good afternoon, ladies and gentlemen, and welcome to the CAVA First Quarter 2025 Earnings Conference Call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on May 15, 2025. I would now like to turn the conference over to Matt Milanovich. Please go ahead. Good afternoon, and welcome to CAVA's First Quarter 2025 Financial Results Conference Call. Before we begin, if you do not already have a copy, the earnings release and related 8-K furnished to the SEC are available on our website at investor.cava.com. The purpose of this conference call is to give investors further details regarding the company's financial results, as well as a general update on the company's progress. You will find reconciliations of any non-GAAP financial measure discussed on today's call to the most directly comparable financial measure calculated in accordance with GAAP to the extent available without unreasonable efforts in today's earnings release and supplemental deck, each of which is posted on the company's website. Before we begin, let me remind everyone that this call will contain forward-looking statements. For this purpose, any statements made during this call that are not statements of historical fact may be deemed to be forward-looking statements. Investors should be aware that any forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those discussed here today. These risk factors are explained in detail in CAVA's most recent annual report on Form 10-K and other filings with the SEC. Please refer to these filings for a more detailed discussion of forward-looking statements and the risks and uncertainties of such statements. All forward-looking statements are made as of today, and except as required by law, CAVA undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments, or otherwise. I will now turn the call over to the company's Co-Founder and CEO, Brett Schulman. Thanks, Matt, and welcome to the call, everyone. In the first quarter of 2025, we continue to demonstrate the strength of our category-defining brand, further cementing Mediterranean as the next major cultural cuisine category. Despite broader uncertainty, we sustained momentum, delivered strong results, including positive traffic, and expanded our reach, reinforcing our ability to capture the substantial white space opportunity in front of us. Regardless of near-term headwinds, we remain unwavering in our long-term strategic approach, and our value proposition remains clear and compelling: a menu where taste and health unite, delivered with the relevance, convenience, quality, and experience today's guests seek. Powering this momentum is our unit economic engine, remaining strong and steadfast while fueling our growth and brand loyalty. Our first quarter highlights include a 28.2% increase in CAVA revenue, CAVA's same restaurant sales growth of 10.8%, driven by 7.5% traffic, 15 net new restaurants, ending the quarter with 382 restaurants, an 18.3% increase year-over-year, adjusted EBITDA of $44.9 million, a 34.6% increase over the first quarter of 2024, net income of $25.7 million, an 83.7% increase over the first quarter of 2024, and $2.7 million in free cash flow. In addition to these highlights, I'm proud to say that on a trailing 12-month basis, we have now surpassed $1 billion in revenue, a milestone that is a testament to Mediterranean becoming the next large-scale cultural cuisine category, a category we have firmly established our leadership in. In a fluid macroeconomic environment, our performance this past quarter underscores the strength of our value proposition and the enduring relevance of our brand. At a time when tomorrow feels unclear to many, our ability to deliver bold, flavorful, health-conscious food paired with convenience and genuine human connection is a strategy for success. What sets us apart is beyond what we serve. It is the community we cultivate that defines our brand. That strength has always been deeply aligned with our mission to bring heart, health, and humanity to food, and it continues to resonate with guests across our geographically diverse markets. Our growth is driven by both intention and momentum as we lean into our first strategic pillar, expand our Mediterranean way in communities across the country. This quarter, we entered Indiana, expanding our footprint to 26 states in the District of Columbia. Additionally, we deepened our presence in Florida with the opening of our Hialeah location, marking our highly anticipated entry into the greater Miami area. Looking ahead, we are excited to continue expanding across the Midwest and Mid-Atlantic with upcoming new market entries in Detroit and Pittsburgh. We are well on our way to our goal of at least 1,000 restaurants by 2032, creating more spaces where connection, community, and Mediterranean hospitality can thrive. The in-restaurant experience remains a vital part of how we foster this connection, and we're committed to bringing this to life through our Project Soul initiative. By incorporating natural light, softer seating, enhanced greenery, and warm, inviting tones, we're creating spaces where guests feel welcomed, places designed for gathering, sharing, and creating meaningful moments. We will continue to challenge the idea that the dining room is a relic of the past, and we were recently recognized for our efforts around Project Soul and Fast Company’s World's 50 Most Innovative Companies, as number one in restaurants, dining, and food services, and number 13 overall. Now more than ever, people are seeking human connection, and we aim to meet that need by delivering the warmth and hospitality that defines the CAVA brand. That same warmth and hospitality extends well beyond our physical spaces. It is reflected in what we serve and why our guests continue to return to our table. This summer, we are leaning into flavor and relevance with the launch of our Spice World campaign, a celebration of bold, spicy offerings that capture the spirit of the season without compromising health. As part of this campaign, we debuted Hot Harissa Pita Chips, a bold, spicy take on our fan-favorite chips, leveraging our existing pantry, mitigating added operational complexity, and bringing the heat just in time for summer. In tandem, we're launching two new chef-curated bowls, Steak and Harissa and Spicy Lamb and Avocado, each designed to spotlight vibrant flavor profiles and offer guests even more ways to experience the warmth of the Mediterranean. Seasonal moments like these reflect who we are as a brand: innovative, intentional, and attuned to what today's guests are craving, all while staying true to our concept essence. A key tenet of our concept essence is our spirit of generosity, something we were able to bring to life this past quarter through our newest brand moment, National Pita Day. On March 29, we celebrated this social holiday as a platform to deepen connection with our community, anchored by the debut of a playful new team member, Pita Chip. Pita Chip's birthday was purposefully aligned with National Pita Day, celebrated with complimentary Pita Chips for all CAVA Rewards members. National Pita Day exemplified how we bring generosity, cultural relevance, and guest engagement together in a way that builds brand affinity and drives business results. By aligning the promotion with a branded holiday and social storytelling, we saw increased reach, record-high app traffic, and over 130% more rewards redeemed than originally anticipated. It's a launch we're excited to build on in the years ahead. As we grow our loyalty base and bring more guests into our first-party ecosystem, we're unlocking new opportunities to advance our second pillar, deepening personal relationships with guests even as we scale. Campaigns like National Pita Day not only reflect our brand's spirit of generosity, they also serve as dynamic testing grounds for how we engage and excite our growing first-party audience. These initiatives give us valuable insights that inform the ongoing development of new loyalty features and experiences, helping us build stronger, more lasting relationships with our guests. We've seen strong momentum since the launch of our Reimagine Loyalty program, with sales through the program up 340 basis points as a percentage of total revenue since relaunch and total membership now approaching 8 million members. Later this year, we plan to roll out the next phase of the program, including testing a new tiered structure designed to further tailor benefits to guest preferences and enhance long-term engagement. To deliver the best guest experience possible, we remain focused on our third pillar, running great restaurants every location, every shift. Consistency, efficiency, quality, and hospitality are integral to our operations, and we continue to invest in initiatives that elevate performance in each of these areas. At the center of it all are our team members. We're committed to enhancing, not replacing, the human experience, which is why we rolled out a new labor deployment and scheduling model late last year. We are continuing to see improved productivity across both day parts. As restaurants grow more comfortable with the tool, they are refining and optimizing, with the opportunity to drive even greater efficiencies and productivity across the system. Additionally, we're continuing to make steady progress on our Connected Kitchen initiative. As shared during our last call, we plan to roll out our new kitchen display system to 250 restaurants by year-end. We're currently live in 42 locations and are continuing to see improvements in guest satisfaction scores driven by better digital accuracy and more proactive guest communications. Another promising advancement under our Connected Kitchen platform is our AI camera vision technology, which recently completed its test-and-learn phase and is live in four restaurants. This system currently supports our teams in two critical ways. The Grill Assistant helps grill cooks determine how much food to prepare based on real-time depletion data cross-referenced with historical data, while Prep Assistant equips our teams with actionable insights to make more informed and accurate prep production. Finally, our fourth pillar, operate as a high-performing team, is foundational to everything we do. A great guest experience at CAVA begins with a great team. We remain deeply committed to building a workplace that fosters growth, leadership, and long-term career development. Nothing brings our commitment to developing future leaders to life more vividly than our restaurant leader conference, CAVA Connect, which took place just last week. This year's theme was Ignite, a reflection of the passion, purpose, and momentum driving our teams forward. Over three days of recognition, celebration, and learning, we laid the foundation for an expanded training journey from team member to general manager, further building on our Academy GM network and laying the groundwork for a deeper, role-ready leadership bench. We're already beginning to see the power of this approach in leaders like Danny Morales, whose journey with CAVA began as a grill cook at our VCU location in Richmond, Virginia. Through grit, heart, and a commitment to growth, she rose through the ranks, opening 14 restaurants and now serving as an Academy GM with her sights set on multi-unit leadership. Along the way, she's developed future leaders of her own, including a former grill cook who now runs the very restaurant where she started. Danny's story is a testament to the depth of talent within our system and the impact of investing early and often in our people. We look forward to sharing more on our broader talent development strategy in the coming quarters. Before I turn the call over, I want to thank our teams across the country for delivering another strong quarter while staying rooted in our mission. In times of uncertainty, our ability to lead with purpose, innovation, and long-term focus matters more than ever. As we move forward, we remain committed to offering bold, healthful food, providing flexible and convenient ways to engage with our brand, and most importantly, keeping the human connection that we are known for at the center of everything we do. With that, I'll let Tricia walk you through the financials. Thanks, Brett. CAVA revenue in the first quarter of 2025 grew 28.2% year-over-year to $328.5 million. CAVA's same restaurant sales increased 10.8%, driven by traffic growth of 7.5%. On a three-year stack basis, same restaurant sales increased 41.5%, driven by traffic growth of 24.7%. During the quarter, we opened 15 net new CAVA restaurants, bringing our total CAVA restaurant count to 382. We are pleased with our new restaurant openings, which are exceeding expectations in both top-line and margin performance. CAVA restaurant-level profit in the first quarter was $82.3 million, or 25.1% of revenue, versus $64.6 million, or 25.2% of revenue in the first quarter of 2024, representing a 27.4% increase. CAVA's food, beverage, and packaging costs were 29.3% of revenue, higher than the first quarter of 2024 by 110 basis points due to the impact of steak. As a reminder, we continue to expect the approximate 100 basis point year-over-year comparative impact on food, beverage, and packaging costs from steak to roll off by June. CAVA labor and related costs were 25.7% of revenue, a decrease of approximately 30 basis points from the first quarter of 2024. This decrease reflects leverage from higher sales, partially offset by investments in our team member wages of 3%. CAVA occupancy and related expenses were 7.4% of revenue, an improvement of 60 basis points from the first quarter of 2024, driven by increased sales leverage. CAVA other operating expenses were 12.5% of revenue, an improvement of 20 basis points from the first quarter of 2024, driven by sales leverage, partially offset by investments in the integrity of our physical spaces in support of our increased restaurant volume. Shifting to overall performance, our general and administrative expenses for the quarter, excluding stock-based compensation, were 10.5% of revenue, compared with 11.1% of revenue in Q1 of 2024. This 60 basis point improvement was driven by leverage from higher sales, partially offset by investments to drive future growth. Pre-opening expenses were $4.5 million in the quarter, compared with $3.4 million in the prior year quarter. The $1.1 million increase includes the impact of the timing of projects in addition to opening in higher-rent geographies. Adjusted EBITDA for the quarter was $44.9 million, a 34.6% increase versus the first quarter of 2024. The increase in adjusted EBITDA was primarily driven by the number of and continued strength in new restaurant openings, 10.8% CAVA's same restaurant sales growth, and leverage in general and administrative expenses. Equity-based compensation was $6.7 million in the first quarter, compared with $5.2 million in the prior year quarter. The increase was primarily due to payroll taxes associated with RSU vesting in Q1. We expect full-year equity-based compensation to be between $20 million and $22 million, which includes 2025 grants, with the remaining expense spread relatively even over the rest of the year. In the first quarter, our effective tax rate was a benefit of 26% due to the impact of equity-based compensation, which includes a net benefit of $10.7 million associated with stock-based compensation. For the full year fiscal 2025, we now expect our effective tax rate to be between 14%-18%, with an additional discrete benefit from equity-based compensation in Q2 of approximately $1 million-$2 million. Our cash taxes will continue to be immaterial until we fully utilize our net operating losses. During the first quarter, we reported $25.7 million of GAAP net income compared to $11.9 million of adjusted net income in Q1 of 2024. Diluted EPS was $0.22 in the first quarter, compared with adjusted diluted EPS of $0.10 in the first quarter of 2024. Turning to liquidity. At the end of the quarter, we had zero debt outstanding, $369.4 million in cash and investments, and access to a $75 million undrawn revolver with an option to increase our liquidity if needed. Note that during the current quarter, we launched an $80 million investment portfolio consisting of fixed income securities in order to optimize interest income over the long term, which was funded with cash on hand. Cash flow from operations for the first quarter of 2025 was $38.6 million, compared with $38.4 million during Q1 of 2024, where cash flow during the first quarter was $2.7 million. Now for our outlook for full year 2025, we expect the following: 64-68 net new CAVA restaurant openings, CAVA same restaurant sales growth of 6%-8%, CAVA restaurant-level profit margin between 24.8%-25.2%, pre-opening costs between $14.5 million and $15.5 million, and adjusted EBITDA, including the burden of pre-opening costs, between $152 million and $159 million. I want to share a few additional thoughts related to our latest outlook. Our guidance reflects both the evolving macroeconomic landscape and the strengths we're seeing in our business. Our consumer remains resilient, and we believe that momentum is appropriately captured in our outlook. Our unit economic model remains a core strength, and we're committed to making disciplined investments that support long-term sustainable growth. Turning to same restaurant sales, we continue to anticipate 6%-8% growth for the year. As noted last quarter, we believe the most meaningful way to assess performance on a normalized basis is through a three-year stack, which better captures the dynamic trends of recent years. We expect this metric to remain strong in the high 30% for the remainder of 2025. Turning to restaurant-level margins. As previously mentioned, we implemented an approximate 1.7% in restaurant menu price adjustment in early January and continue to have no plans for additional increases despite ongoing macroeconomic uncertainty. We remain vigilant in monitoring our supply chain, including any potential impacts related to tariffs. That said, our exposure remains limited based on the current policies, which are fluid, given that the majority of our ingredients are domestically sourced or covered under existing contracts. In addition, we've implemented mitigation tactics to further minimize the overall impact. Before we wrap, I want to take a moment to reflect on the energy and purpose we felt coming out of CAVA Connect, brought to life so clearly in the story Brett shared today, with a powerful reminder of the impact our teams can have when they're inspired, supported, and united by a shared mission. That momentum is carrying us forward, and it gives us great confidence in the future we're building together. Now I will turn the call back over to the operator and open it up for Q&A. Thank you. Ladies and gentlemen, we will now begin the question and answer session. If you would like to ask a question, please press star and the number one on your telephone keypad. If you would like to withdraw your question, please press the pound key. Kindly be reminded to limit your questions to one at a time. Should you have any follow-up questions, please feel free to require. Again, if you would like to ask a question, please press star and the number one on your telephone keypad. Our first question comes from the line of Sharon Zackfia from William Blair. Your line is open. Hey, good afternoon. Thanks for taking the question and congratulations on continuing up the strong trends. I guess, Brett, you mentioned loyalty and a tiered structure as something that you're going to explore later this year. Could you expand on that? And maybe with the relaunch that you did last fall, what has been kind of the most meaningful driver of seeing that uptick in engagement? Thank you. Yeah, hi, Sharon. Thanks for the question. We're really pleased with the performance we've seen to date. If you remember, the original goal was moving from a more transaction-based spend X get Y to an earn and bank points model that would drive greater engagement and participation in the program. That is what we are seeing. You looked at our lower frequency or mid-tier frequency users, and we lowered the entry reward hurdle, and that has gotten those users more engaged. It has allowed us to really be able to communicate in a more personalized way, to offer delight moments like the Pita Chip moment that we talked about in the prepared remarks. That has driven 340 basis points of improvement of revenue coming through the loyalty program. What we are looking to do later this year is roll out the second phase of this loyalty journey with a tiered structure that builds upon our base structure that we launched last fall. That is to further recognize and have our guests feel seen for their passion and their frequency in visiting CAVA and add increased benefits and rewards recognition to those tiers based on their frequency patterns. Excited to build upon all the success we have had to date. We are seeing that every week where we are pushing north of 50,000 registrations per week into the program. We are about 8 million loyalty members total to date, and that is growing every day. Our next question comes from the line of Danilo Gargiulo from Brent Stein. Your line is open. Hi. This is Sagar here on behalf of Danilo. You mentioned that the KDS rollout is on track with 42 stores now having KDS. Can you talk on what's the impact of KDS on throughput, especially between the stores where it has been rolled out versus the rest of the system? Taking a step back, what is driving the throughput differences among your stores, especially amongst the top decile and the bottom decile? Is it driven by location, store manager experience, team staffing levels, or whatnot? Is there a plan to bridge this difference and improve throughput in the near to medium term? I'll take the first part of your question and hand it over to Tricia for the second part of your question. As it relates to the KDS, we don't give specific throughput or productivity numbers, but what we can say is that the new kitchen display screen systems allow for much richer, deeper order management capabilities, including increased productivity. We have throttling capabilities on the back end that allow restaurants to manage how many orders they receive every 15 minutes. These screens allow them the capacity and ability to open up those throttles to a greater degree. Most importantly, deliver improved order accuracy and guest experience scores is what we're seeing in the test restaurant. We've expanded the rollout from 25 to 42, and we're accelerating that over the next few weeks, working towards our goal of 250 restaurants by the end of the year. Yeah, regarding differences between restaurants when we look at them in rank order based on AUV, it's interesting to point out that our top decile of restaurants from an AUV perspective have representation from all parts of the country, from all types of formats, from all income strata. There really isn't one thing that is creating those large volumes. Certainly, speed and service are components that help. The one thing we do tend to find is a much evenly spread demand throughout the day, fewer shoulder periods, so more of an even distribution of guests visiting our restaurant throughout the day. When we look at our restaurants based on quartiles, the bottom quartile of restaurants have younger restaurants in them overall. It is really more of a maturation cycle than it is anything else in bringing those restaurants to the average and above average AUVs that we're able to deliver. The top quartile of our restaurants, in fact, have AUVs above $4 million and deliver restaurant-level margins of over 30%, which really just amplifies and demonstrates the power of this model and the opportunity we have to bring more and more CAVA across the country. Also, the restaurant-level margins that we produce, we're able to make investments in team members and guests to drive strong traffic momentum as we move forward. Our next question comes from the line of John Ivankoe from JPMorgan. Your line is open. Hi, this is Crystal on for John Ivankoe. My question is on local/regional supply growth. We have seen a lot of new growth coming into many of your existing markets, and legacy brands continue to grow as well. Given your multi-regional success so far, could you discuss CAVA's recent performance in some of these existing markets and how these dynamics inform your view on an eventual TAM of the brand? Yeah, we haven't seen any differences or market-specific weakness. We noted we've seen consistent performance across the country in all markets and in all regions. As it relates to your capacity comment, I mean, that's our industry. If you look over the last 15 years, traffic has been negative in the industry all but one year, and that was a bounce back coming out of the pandemic. It has been the case for many years that you are competing for market share. Our traffic has proven over time and the positive traffic growth we've had in recent quarters that people are choosing CAVA when they are eating out. We have to prove every day why we are better than the three or four restaurants next to us. We've been able to do that in recent quarters. I would also add that when you look across the country, we do not have a region that has an average unit volume below $2.6 million. We have strong AUVs across all regions, as we noted even when we went public. That has continued to be the case and continued to grow over time across the country. Our next question comes from the line of Andy Barish from Jefferies. Your line is open. Hey, guys. Just wondering on the marketing innovation side, is Spice World kind of the tentpole moment you have sort of talked about for 2025, or should we expect kind of something new on protein or flavors maybe later in the year? Yeah, hey, Andy, it is Brett. Thanks for the question. No, I would expect a tentpole moment later this fall based on the progress of innovation through our stage gate process right now, and it will likely be a new protein. Okay. Thank you. Tricia, just on the pressure from the beef mix, steak mix being in place, I guess, what kind of inflation are you seeing on that protein in particular? Am I close to read that the rest of the basket was relatively flattish if beef contributed most of the year-over-year increase? That's fair, Andy. The basket itself, as you know, is very diverse and not exposed to a lot of fluctuations on any single item in and of itself. The supply chain team has done a great job in negotiating commitments and contracts for the year that were at better rates than what we've had in the past. In the current quarter, about 100 basis points is largely steak-related, and that, in fact, has also been contracted through the end of the year. Our next question comes from the line of Brian Mullan from Piper Sandler. Your line is open. Hi, this is Allison Arfstrom for Brian Mullan. Thank you for taking the question. Question on menu innovation. Wanted to ask about the Chicken Shawarma test so far in Texas and California. Maybe just a little background. What led you to test this specific protein? Could you speak to how it's going so far from a consumer reception perspective and from an operations perspective? What would the next steps be from here? Thanks. Sure. Thanks for the question. That is one of the proteins in our stage gate process, and it's testing in Dallas and Florida. We are very pleased with the progress. The impetus behind it, it is a staple item in the Levant region, which is really core to our Mediterranean concept essence. It is a different cut of chicken. It is spit-roasted chicken breast that is complementary to our existing chicken cuts on the line. It is a different textural experience, different look and feel. We think it could be a nice complementary addition to our protein portfolio. It is also a very light lift on operations. It is an easy protein to produce. We always want to be mindful when we are adding innovation to make sure we are not adding too much operational complexity. Again, pleased with what we are seeing and the consumer response to it. If it continues on its current progression, you will see it across our fleet in coming quarters. Our next question comes from the line of Jeff Bernstein from Barclays. Your line is open. Hi, this is Anisha Datt on for Jeff Bernstein. I wanted to ask a question on restaurant margins. The 2025 guidance is consistent with 2024 restaurant margins in the 25% range, which is well above the 20% you spoke of just two years ago. I wanted to ask, how do you prioritize upside drivers, and is there ability to expand from here or to reinvest? Yeah, thank you for the question. I appreciate that. Certainly, the significant improvement in AUVs helps create a lot of that expansion in restaurant-level margins. We are also very mindful of where we are in our growth and development and want to make sure that we are continuing to reinvest in the business through team members and guests. Some examples of that is making sure that we are appropriately compensating our team members both in wage and benefits. We review that every quarter and adjust as needed so that we are a best-in-class employer in each and every market. We are also being very thoughtful and mindful around menu price increases. Over the years, we have been very limited in those menu price increases. From the end of 2019 to the end of 2024, we raised menu prices about 15%, and CPI went up 23%. That is 8 points less than that. As you know, fast food went up over 30%. That is an example of an investment in our guests that we think is important and helps fuel that traffic momentum that we have been able to deliver. Our next question comes from the line of Chris O'Cull from Stifel. Your line is open. Great. Thanks, guys. This is Patrick on for Chris. Brett, I was hoping you maybe could provide a little bit of additional color on the success you're seeing in the labor deployment model. Specifically, I think you mentioned that there were some additional opportunities for specific restaurants in certain situations to even drive more improvement there. I was curious if you could expand on that and maybe what those are. Is there any way that you can also frame up how much you have been able to reinvest back into the restaurants? I think you may have just touched on it a little bit in the previous question, but expand a bit on maybe what form that reinvestment has taken specifically for those initiatives. Yeah, we haven't quantified any kind of specific numbers, but what we can say is we have seen productivity enhancements, improvements over both lunch and dinner. As it pertains to the opportunity, when we rolled this out, we rolled out the base labor deployments, and now it is really honing the adoption of it and refining the deployments so people really adhere, our teams adhere to the processes. We see it when it is used as intended, driving significant enhancements. We have others that are still working to get into those deployments, and that is the opportunity we have going forward. As it relates to hours, and we noted this in past calls, it is more of a redistribution of hours. The real intent is, A, it's to make our restaurants easier to run so the shifts aren't as frenetic, that the teams are in position, guest-facing, that our general managers are not jumping the line or jumping into the back to fill a hole or a gap to prep, that the prep is oriented before and after shifts, and that they can coach and lead the teams, and that it frees our team members up to deliver that human connection and get out into the dining room, do table touches, have more guest-facing interaction, and have a less stressful shift. We're very pleased with what we've seen to date. Like everything we do, we want to be methodical and thoughtful about it and not push our teams too hard, too fast. We're very excited with what we've seen in the initial deployments, but know that there's a lot of opportunity to continue to lean into these deployments and drive greater productivity in the coming quarters. Our next question comes from the line of Sara Senatore from Bank of America. Your line is open. Thank you. Thank you for all the color today. I wanted to go back to the demand environment. You said you have momentum. There's uncertainty out there, and I guess the question is twofold. One is your three-year stack in the quarter was actually a little bit better than that high 30. I didn't know if there was some conservatism embedded in that holding that full-year guidance. Then some of your peers have talked about, or the competitors have talked about softness in the D.C. area, where I know you have a fairly big footprint. We've heard maybe softness in the lunchtime day part. Any variation that you have seen that might be some kind of leading indicator in your business? Just any kind of color you can give on that. Thanks. Thanks, Sara. So our guidance reflects the fluidity of the macroeconomic environment. We know that there are stronger headwinds and consumers are feeling challenged, but there really isn't anything that we're seeing in our data in Q1 that would suggest that, and I'll get to that in a minute. The one thing, though, to keep in mind is, as you called out, we're reiterating that we believe we can deliver a three-year stack in the high 30s, which is what we shared at the end of the year. Keep in mind that as we go into the second half of the year, we'll be lapping steak as part of our prior year offering, so that will be something that we'll be mindful of. As Brett said, we follow our stage gate process, so we're not going to manufacture anything to try to lap something that happened in the past because we think what we're focused on is the long-term opportunity and what drives consumer behavior in general. As it relates to the data and what we have been seeing, nothing in our data suggests that our consumer's challenges, as I mentioned a minute ago, our premium attachment continues to be high. Pita chips, for example, continues to increase in incidence, as does some of our other premium items, including steak. Our per-person average continues to increase. We have positive traffic across all geographies, all income strata, all formats, and all day parts. When we look at the geographies, we do a deeper dive into the district because there have been lots of questions about the district and the potential impact, and we have not seen anything in those markets. As well as lunch and dinner, we are seeing consistent strength across both day parts, so there has been no fluctuation in our restaurants as it relates to that. When you think about income strata, I mentioned the consistency and our bottom income stratas are actually outperforming, which is something we shared before, and we are continuing to see that trend. At the end of the day, what we want to do is make sure we're delivering an incredible value and a wonderful experience for our guests with great hospitality because we know these times are very challenging and consumers have to make choices, and what we want to make sure is they choose CAVA when they have a meal out. Our next question comes from the line of David Tarantino from Barclays. Line is open. Hi, good afternoon. Can I just clarify maybe the last question? I think you're projecting the three-year stack comps in the high 30s, which is a very good number and implies good numbers for this year, but it is lower than what you did in the first quarter. I just want to understand if that's something you're already seeing in the business or you're just leaving yourself some room given all the uncertainty. I guess my real question is I was hoping you could comment on the performance for the brand in some of the newer markets that you entered. I think you mentioned Indiana and Miami, so I was wondering if you could comment on the reception in those markets as well. Thank you. Thanks, David. Just as a reminder, our quarter ended April 20th. Much of what we are hearing about, so post-liberation day, is really reflected in our results already, and that has been captured. Our guidance reflects what we saw in Q1 through April 20th and what we are currently seeing in the business, and we believe we can deliver a three-year stack of the high 30s. The other thing that you asked about was performance of new markets. We're seeing great results in all of our restaurants that are opening across the country in 2025, very similar to the openings in 2023 and 2024, if not better. In Indianapolis and Fishers, that restaurant's performing very well, as well as our restaurants in South Florida. Take our restaurant in Lafayette, Louisiana, that's exceeding expectations too. It's just really demonstrating the power of the brand and our ability to really expand to many other places across the country and leverage that enormous white space opportunity that's ahead of us. Again, if you would like to ask the question, please press star and the number one on your telephone keypad. Our next question comes from the line of Andrew Charles from TD Cowen. Your line is open. Thank you. This is Zach Ogden on for Andrew. I just had a question on the mix. It did look like it was still solidly positive in 1 Q, but it did seem a little bit lower than last, say, three quarters. Were you expecting that, and what are you seeing driving that? Keep in mind our combined impact for price mix includes 1.7% for menu price increases, which still delivers a fairly healthy mixed impact. I'm not seeing a significant change or deterioration there. Our premium attachments, as I mentioned, are increasing. Our steak incidence is strong and helping contribute to that as well. Okay. Great. Thank you. There are no questions at this time. I would like to hand the conference over back to Brett. Please go ahead. Thank you for joining us today. Before we wrap, I want to take a moment to acknowledge the strong start to the year and express my gratitude to our team. Delivering these results while staying true to our mission is something we're incredibly proud of, and it reflects the consistent focus and care our teams bring to our business every day. This quarter, we also crossed an important milestone, surpassing $1 billion in revenue on a trailing 12-month basis. It's a meaningful moment for our company and a reflection of the strength of our category-defining Mediterranean brand. Most importantly, it's a testament to the hard work and dedication of our more than 11,000 team members. CAVA is a special place because of them. Thank you again for your time and continued support. We wish you a safe and enjoyable Memorial Day weekend and look forward to connecting next quarter. This concludes today's conference. Thank you for participating. You may now disconnect.