Greetings, and welcome to Denny's Corporation First Quarter 2024 Earnings Conference Call. At this time, all participants are on a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Kayla Money, Senior Director of Investor Relations. Thank you. You may begin. Good afternoon. Thank you for joining us for Denny's First Quarter 2024 earnings conference call. With me today from management are Kelli Valade, Denny's President and Chief Executive Officer, and Robert Verostek, Denny's Executive Vice President and Chief Financial Officer. Please refer to our website at investor.dennys.com to find our first quarter earnings press release, along with the reconciliation of any non-GAAP financial measures mentioned on the call today. This call is being webcast, and an archive of the webcast will be available on our website later today. Kelli will begin today's call with a business update. Then Robert will provide a recap of our first quarter financial results and a development update before commenting on guidance. After that, we will open it up for questions. Before we begin, let me remind you that in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the company knows that certain matters to be discussed by members of management during this call may constitute forward-looking statements. Management urges caution in considering its current trends and any outlook on earnings provided during this call. Such statements are subject to risks, uncertainties, and other factors that may cause the actual performance of Denny's to be materially different from the performance indicated or implied by such statements. Such risks and factors are set forth in the company's most recent annual report on Form 10-K for the year ended December 27, 2023, and in any subsequent Forms 8-K and quarterly reports on Form 10-Q. With that, I will now turn the call over to Kelli Valade, Denny's President and Chief Executive Officer. Thank you, Kayla. Good afternoon, everyone, and thank you for joining us. I'm excited to share our first quarter results with you today and provide highlights for the quarter. I'll do that in the context of our unique playbook, which includes our CRAVE strategies and our specific areas of focus for both the Denny's brand and Keke's Breakfast Cafe. Denny's Q1 domestic system-wide same restaurant sales were negative 1.3 this quarter, with both sales and traffic outperforming both the family and casual dining segments. I'm incredibly proud of our teams and our franchise owners and operators, who demonstrated incredible resilience and focus even in the midst of a tough operating environment. Denny's dine-in business showed progress this quarter, with the breakfast day part showing strength. Continuing to strengthen and grow dine-in traffic throughout all day parts is a primary focus, and we believe we have a great approach in lineup to do this. And for those guests seeking alternative dining experiences, our digital and off-premise strategies are strong and deliver for many guests who want convenience. In fact, while off-premise sales as a percentage of total sales had been at 19% or greater since Q1 2020, this first quarter, we delivered 21%, stealing share from others that have scaled down in off-premise channels. The proof points for us are clear. Denny's off-premise guests skew younger than dine-in. Approximately 70% of our Gen Z and millennial guests utilize our off-premise channels, compared to the same groups utilizing dine-in at approximately 40%. This simply means that this part of our business, though, yes, lower margin, is highly incremental and delighting a different guest. For that reason, off-premise channels continue to be a strategic opportunity for us to grow new guests and transactions through our unique virtual brands and through Denny's On Demand. In addition to capturing share with our off-premise business, our current areas of focus for Denny's are clear. We will continue to innovate and dominate breakfast and do that with a focus on unparalleled value. This past quarter, we delivered on both. Our most recent spring menu launched just a few short weeks ago, but is already delivering for us through both pricing and positive product mix changes. On this menu, we added to our signature Slam platform with the introduction of our new Berry Waffle Slam, featuring the new highly craveable Liege waffle. We are thrilled with the performance of these new waffles, as they are outperforming sales expectations and getting fantastic feedback from operators and guests. We also have several other new menu items beyond breakfast that are really resonating with our guests, including our new Barbecue Bacon Chicken Sandwich and the new OREO Brownie Sundae. Our approach to simplify and minimize customizations on the menu is also making a difference, with the create-your-own categories down as a percentage of mix on the menu and signature curated plates increasing. As we have mentioned, this helps us with order accuracy, makes servers' lives easier, and speeds up ticket times without any impact to the guests, as they are always welcome to customize any order. We've also continued to highlight our most popular and most profitable items on the menu, delivering improved margins. Delivering compelling value leadership is also critical. Our guests choose Denny's because we offer an incredible experience at a great price for the foods they love, from familiar breakfast favorites to late-night cravings. With approximately 70% of our guests at household income levels at or below $75,000, price and value remain front and center for many guests as they think about where they want to spend their dollars. This quarter, we responded to that by offering our Original Grand Slam at the incredible starting at price of $5.99. Guests responded favorably, with traffic and sales coming out strong into the new year. Total value mix in the first quarter was approximately 19%, up from the 17% mix we saw last quarter. Additionally, our year-over-year share of wallet increased against family dining and casual dining from Q4 to Q1 across all income cohorts, proving our value messaging is resonating with all of our guests. For this quarter, we are again leaning into value, now featuring our reprised All Day Diner Deals menu, which is a lineup of 6 entrees, also with an impressive starting at price of $5.99. We are pleased with the results we are seeing in the first few days and optimistic about the potential impact for the quarter. Because we know that guests also crave our many premium items, we continue to elevate our barbell strategy by merchandising dishes like the Berry Stuffed French Toast in restaurant. Even with a price-conscious consumer, our check has remained whole, with minimal to no check erosion. We consider this a success, and we'll continue to leverage our effective barbell strategy to offset costs and improve the model for our franchisees. The third area of focus is convenience. I've mentioned a few of the stats related to our off-premise business already, but I'll dig in a bit more here, sharing what you'll see us do next. We've known that convenience is important to many of our guests, and since the onset of the pandemic, there's been a growing preference for off-premise dining. We continue to believe that our guests want convenience and that off-premise channels will continue to see growth, despite a shift by many companies to deleverage this part of the business. This belief was supported recently with data shared from Circana, formerly NPD, that showed that while off-premise channels were slightly down in the first half of 2023, they spiked in the back half of 2023 and will continue to increase. We believe by leveraging our operating capacity at dinner and late night, we are positioned incredibly well to capture the share and leverage this strength as others focus only on their dine-in business. The growth is also meaningful, both in terms of sales and the ability to attract new guests at different day parts, as our virtual brand sales in these later day parts are nearly 3 times that of our breakfast and lunch day parts, delivering a highly incremental 2%-3% in sales transactions from those incremental guests. Because of these results, we are bullish in this area and plan to expand Banda Burrito, our third virtual brand concept, to an additional 200+ locations over the next couple of months. These will be in California because it has the unique potential of offsetting the impact of AB 1228. When we offered this option, our California franchisees were quick to sign up, given the perfect timing and the fit of the Banda offerings. Once we expand fully into the California market, we'll likely roll nationally, most likely starting in early Q4. Finally, and importantly, starting this quarter, we're adding significant media to the market by reestablishing our brand co-ops and providing a match for all dollars from our ad fund. This match was halted during the pandemic but is critical to our go-forward plans to get our message to more guests. The matching funds provide greater incentive for co-ops to step up their media investment, which we leverage locally to add an impressive $12 million on an annualized basis to the ad budget. Now I'll switch gears and provide updates to a few of our priorities captured in our CRAVE strategic framework. For reference, CRAVE stands for Creating leading tech solutions, Robust new restaurant growth, Assembling best-in-class teams, Validating and optimizing the business model, and Elevating profitable traffic. I'll first focus on creating leading tech solutions. We've made significant progress during the beta testing phase of our new cloud-based POS platform. We can now say we will be partnering with Xenial Enterprise Solutions for this launch. We now have over 110 restaurants complete with the installation, with plans to move into general release for this system in Q3. Even more exciting are the recent results we've been seeing and what this platform will enable. The key components of the platform for us are enhanced kitchen video display systems, or KVS, new beverage monitors, server handhelds, and QR Pay. Our franchisees have been with us from the very beginning on this test, and they are now weighing in with their results, reporting average check increases, given the ease of adding beverages and add-ons, faster table turns, reduced waste, and reductions in labor, given less server hours needed in peak periods. We are encouraged by these results as they not only optimize the model, but they demonstrate a significant opportunity to show a strong return on the investment of this new system. In the kitchen, we're also focusing on menu items that allow us to utilize existing equipment from our kitchen modernization rollout and extend the use of ingredients featured on the menu. In fact, our culinary team created the new Liege-style waffle after exploring additional items that could be prepared in our ovens. This created efficiency for the restaurant while providing new menu options for our guests. The R in CRAVE stands for robust restaurant growth. That growth will come from new units and strategic investments in our physical assets through an ongoing accretive remodel program. This quarter was a big one in that we finalized our research and now know with certainty that we have a home run or even a grand slam with our latest remodel package. In this package, we leveraged the learnings from our last remodel program, called Heritage 2.0, and combined that with research and new design elements that lean into our unique diner position. We now have a winning solution, delivering mid-single-digit percentage traffic lift. These impressive results, along with our ability to incentivize and support our franchisees with financing through our loan pool, will help them finance these remodels and improve sales and traffic for the entire brand. This will also get us back to a remodel pace consistent with what we had prior to the pandemic. Expect us to talk more soon about the way we'll support our franchisees and work to improve our fleet with a strong focus to gear up in this area. In short, and to summarize what you'll see from the Denny's brand, continued new menu innovation, bringing craveable items to our guests, continued strength in providing unparalleled value offerings, tech advancements with our Xenial rollout, and a remodel program set to deliver fantastic traffic results and a great ROI for our franchisees. Finally, we'll reinvest in our co-ops, adding roughly $12 million to our overall marketing spend, capturing the attention of even more guests and driving traffic. Turning now to the momentum at Keke's Breakfast Cafe. We noted on our last earnings call that we received a warm welcome in the Nashville market as we opened our first location outside of Florida. The local community continues to embrace Keke's, as evidenced by sales volumes that are ahead of our expectations and on pace to deliver approximately $2 million in sales annualized. We believe this pace, which is also ahead of the average sales volumes we see in Florida cafes, validates our optimism for this brand and for the Keke's team. It also shows that our discipline and determination, making sure we had the right recipe to begin expanding this concept into new markets, was spot on. The refreshed interior, prominent Mornings from Scratch tagline, and refreshed menu deliver on our core differentiators of an elevated culinary experience, featuring delicious, abundant entrees prepared from scratch daily and using the highest quality ingredients.... At Keke's, you'll see this delivered in an energetic, fun atmosphere where the customer experience is best in class. We now measure Keke's guest satisfaction through GuestXM and are blown away by the continued stellar results, specifically a Google rating of 4.7, an overall net sentiment and intent to return scores that far exceed other family dining or full-service benchmarks. Following the opening in the Nashville market, two additional Keke's opened in Jacksonville, Florida, with a new design, and another cafe is expected to open in the Nashville market in the next couple of weeks. The team is working feverishly to identify sites for future cafes, help secure property control, navigate permitting, and begin construction efforts against a strong development pipeline. We simply can't wait to introduce new guests and new markets to this fantastic brand. To close out, our thoughtful strategies are driving our actions, and our areas of focus are well-timed, given the environment and the expectations of our guests and our franchisees. These solutions and the promise of new innovation on the menu with technology and the right investments give us reason to be optimistic about what's ahead this quarter and beyond. I'll now turn the call over to our CFO, Robert Verostek. Thank you, Kelli, and good afternoon, everyone. Given the strong prior year numbers and the highly competitive value environment during the quarter, we view Denny's Q1 domestic system-wide same restaurant sales of negative 1.3% favorably, resulting in a two-year comp of positive 7.1%. Denny's domestic system-wide same restaurant sales were comprised of approximately 5.5% in pricing, partially offset by approximately 0.5% of product mix related to higher value incidents. All pricing for the quarter was a carryover from fiscal 2023. However, in mid-April, we took approximately 3% in pricing with the Denny's Spring Core Menu launch. April's pricing included approximately 5% in California to offset the anticipated impact of AB 1228. This was more heavily weighted towards franchise restaurants, with company restaurants averaging approximately 4%. Denny's domestic average weekly sales for the first quarter were approximately $37,000, including off-premises sales of approximately $8,000 or approximately 21% of total sales. Keke's delivered system-wide same cafe sales of -3.6% for the quarter. Approximately 40% of our Keke's cafes are located in Orlando, which has consistently trailed both Florida and the national average. However, we have been very pleased with the progress made in this small but mighty brand. 2023 was a year of building out the right team to lead Keke's, and they are already making meaningful impacts. In fact, over the last year, they have closed the traffic gap to family dining significantly, and we still have more traffic and check driving initiatives in the works. Keke's plans to roll out a selection of alcoholic beverages system-wide during Q2, which delivered an increase of approximately 4% in tests, most of which was incremental. Additionally, we are encouraged by the early test results of our new interior design in our latest Florida openings and are optimistic about what a future remodel program could deliver to the brand, including the addition of patios. Before I begin discussing the quarterly financial results, I want to take a moment and describe the changes to our non-GAAP financial measures that we believe will provide more clarity to investors and analysts and greater comparability to peers. Beginning this quarter, we adjusted our non-GAAP financial measures for items such as legal settlement expenses, pre-opening expenses, and other items we do not consider in the evaluation of our ongoing core operating performance. In addition, cash payments for restructuring and exit costs and cash payments for share-based compensation will no longer be a component of our adjusted EBITDA definition. We have also sunset our adjusted free cash flow non-GAAP measure, and we are now referencing the GAAP cash flow statement presented in our quarterly SEC filings. Please see the Analyst Center on our investor relations website or our current investor presentation for a recasting of historical non-GAAP financials. Turning to our first quarter financial details, total operating revenue was $110 million, compared to $117.5 million in the prior year quarter. Franchise and license revenue was $57.6 million, compared to $64 million in the prior year quarter. This change was driven by a $2.1 million decrease in initial and other fees associated with the sale of kitchen equipment in the prior year quarter, and a $1.5 million decrease in advertising revenue, primarily related to temporarily lower local advertising co-op contributions in the current quarter. Prior to the pandemic, these co-op contributions represented approximately 0.4% of system sales. However, they have averaged about half of that over the past several years. Beginning in Q2, the Denny's system has fully reestablished local advertising co-op contributions, and we look forward to these investments driving incremental guests into our restaurants. Adjusted franchise operating margin was $30.1 million or 52.2% of franchise and licensed revenue, compared to $31.6 million or 49.4% in the prior year quarter. This margin change was primarily due to lower sales and lease terminations. Company restaurant sales were $52.3 million, compared to $53.5 million in the prior year quarter.... This was primarily driven by a decrease of 3% in Denny's Same Restaurant Sales, partially offset by one additional Keke's equivalent unit. Adjusted company restaurant operating margin was $6 million, or 11.5% of company restaurant sales, compared to $7.1 million, or 13.2% in the prior year quarter. This margin change was primarily due to higher workers' compensation and general liability expenses in the current quarter of approximately $1 million, or 1.9 percentage points of company restaurant sales. Commodity inflation was approximately 2% for the quarter, similar to what we experienced in Q4, 2023. Additionally, team labor inflation remained unchanged in Q1 at approximately 3%. I want to take a moment to provide insights on the impact of AB 1228 on our 22 California company restaurants. Since AB 1228 was signed in September 2023, while there were industry fears of full service employees rushing to secure fast food jobs, we have been very pleased to actually see improvements in both management and crew turnover in our company restaurants. We believe this is a true testament to investments made in our teams, such as our GAIN program, allowing team members to obtain their GED, college credits, life skills, and career pathways. Additionally, we have not experienced a material increase in team wages thus far in April, which is in part due to our servers earning well above the AB 1228 minimum wage when factoring in tip income. General and administrative expenses for Q1 totaled $21.2 million, compared to $20.1 million in the prior year quarter. These results collectively contributed to adjusted EBITDA of $18.4 million. The effective income tax rate was 24.6%, compared to 61.5% in the prior year quarter. This change was primarily due to discrete items relating to share-based compensation in the prior year quarter. Adjusted net income per share was $0.11 in the current year quarter, compared to $0.13 in the prior year. This change was primarily due to higher workers' compensation and general liability expenses, which weighed on adjusted EPS by approximately $0.02. Our quarter end total debt leverage ratio was 3.5x. We had approximately $271 million of total debt outstanding, including $261 million borrowed under our credit facility. During the quarter, we allocated $4.8 million to share repurchases, continuing our commitment of returning capital to our shareholders, while also balancing investing in Keke's growth. At the end of the quarter, we had approximately $96 million remaining under our existing repurchase authorization. Next, to recap our first quarter development highlights, our brands opened 8 combined restaurants during the quarter. Denny's franchisees opened 5 new restaurants, including 3 international locations. These openings were offset by 24 franchise closures and 1 company restaurant closure. These franchise closures averaged less than $1 million in their average unit volumes and were open on average for 32 years. Over that timeframe, trade areas have shifted, and as was the trend prior to the pandemic, franchisees stayed open through the holidays to enjoy one last season with their longtime loyal guests. Despite these closures, we remain encouraged by the overall health of the broader franchise portfolio. In fact, despite domestic franchise Same Restaurant Sales decreasing 1.2% during the quarter, the average unit volumes have actually increased by approximately 1.1% compared to the prior year. Moving to Keke's, we opened three company cafes during the quarter, two in Jacksonville, Florida, in addition to the first cafe outside of Florida in Hendersonville, Tennessee. We are very encouraged that our first cafe outside of Florida is currently on track to deliver sales of approximately $2 million, and as Kelli noted, our second company location in Tennessee will open in the next couple of weeks in Gallatin, just in time for Mother's Day. In addition, there are currently 4 cafes under construction, with several others in permitting and site approval phases. Lastly, let me now take a few minutes to expand on the business outlook section of our earnings release. With many sales-driving initiatives, such as the expansion of Banda Burrito, which has consistently rivaled The Meltdown performance, as well as the testing with Franklin Junction and reigniting our remodel program in local co-op advertising funds, we remain optimistic on our domestic system-wide Same Restaurant Sales guidance of between 0% and 3% compared to 2023. We anticipate opening 40-50 restaurants on a consolidated basis, inclusive of 12-16 Keke's openings and a consolidated net decline of 10-20 restaurants. We are projecting 2024 commodity inflation to be between 0%-2%, and for labor inflation to be between 4%-5%. The labor inflation guidance takes into account the anticipated impact from AB 1228 in California. Our expectations for consolidated total general and administrative expenses are between $83 million-$86 million, including $12 million related to share-based compensation expense, which does not impact adjusted EBITDA. And lastly, as a result of evolving our non-GAAP financial measure definitions and factoring in Q1 results, we now anticipate consolidated adjusted EBITDA of between $87 million-$91 million, compared to the previous guidance of between $85 million-$89 million. Finally, I would like to thank our supportive franchisees and result-driven brand teams, who have remained focused on serving our guests while continuing to drive our strategic priorities. That wraps up our prepared remarks. I will now turn the call over to the operator to begin the Q&A portion of our call. Thank you. At this time, we'll be conducting a question and answer session. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Our first question comes from Michael Tamas with Oppenheimer. Please proceed with your question. Hi. Thank you. Your guidance for flat to +3% same-store sales for the year implies a pretty material acceleration after this first quarter. I understand you face easier comparisons, and you do have a bunch of catalysts rolling out, but the macro environment does also appear to be a little bit more challenging than it was even just a few months ago. So are you willing to talk about near-term trends at all to build on your confidence to achieve that full-year guidance? And can you maybe talk about which of those sales initiatives, you know, you're most excited about that can drive real change in the near term? Thanks. Hey, Michael. Good to hear your voice. This is Robert. With regard to the sales specifically, Q1, particularly about mid-March to about mid-April, saw some pretty significant volatility related to spring break. But as we exited April, the trends really started to improve, particularly just within our own results and the comparisons again against casual and family dining. So, what we experienced on the quarter, we've changed that trend now as we head out of April. I do also would like to say that our value initiatives have really been performing quite well. And we've just launched into our latest version of that again, our All Day Diner Deals. They have a $5.99 price point inclusive in that. So despite the general macroeconomic environment, and I agree with you, there is an overhang there, we are, I think, very well positioned with that value messaging, to drive same-store sales. And I'll pass it to Kelli for the initiatives. Yeah, absolutely. And thank you, Michael, for the question. Yeah, I, the only thing we've noticed and we've continued to watch, not only throughout the quarter, you know, but gives us a bit of confidence, confidence in April and for the quarter, is the fact that the trade that we really do see, or what appears to be trade down, given our beats to casual dining, and that has been, you know, pretty consistent, right? So while, yes, cautious consumers looking for value, we feel like, again, those work for us and have been working for us. We also launched a new menu, and it's really early, but from what we can tell, you know, there was some pricing in that menu, but also a positive mix. And the barbell strategy continued to work for us, with people really adding... You know, our new dessert is doing well, things adding to the check. So that gives us some confidence. And then the things we're most excited about, I think, look, the dollars and cents would say the increase in marketing spend and the with the simple math, the match that's going to happen again, gives us a lot of confidence. $12 million was mentioned in the script. So you know, that along with the things that we see in potentially a remodel program that'll gear up as strong as it was pre-pandemic, those results are in, and could have the potential to really show some impact, the back half of the year. I mentioned another virtual brand that's not insignificant in terms of the sales that we see in that virtual brand and in the tests that we already have in close to 100 restaurants. So go California first and then nationally in the back half of the year. Those are probably the ones I'd put at the top of the list, starting with the co-op match, adding media into the mix. Thanks. And then, just as a follow-up on, on value, you know, we've heard a lot of restaurants talking about stepping up their value offerings going forward, you know, particularly across the fast food category. Obviously, Denny's is known for value, and, and you pointed out that the value mix is actually up to 19% this quarter. You know, how does that shape the way you're thinking about your value strategies going forward? And, and is there a value mix level that, like, you or your franchisees would like to stay below or, or sort of stabilize at? Thanks. Yeah, I think, you know, especially what you see happening in fast food, I would just say, you know, again, we're watching the price increases there. We're knowing what we know, what our guests count on us for, and know that that value leadership is something we can offer. I think at 19, we're not surprised by that at all. It's been 17 for quite some time, and we've been at those levels before. So for us, you know, I don't think we worry unless it gets above probably 25%. Again, mid-twenties, not to probably go higher than that. Our 2-4-6-8 platform that launched years ago, but was one of our most successful platforms, got as high as 24%. And so, you know, that's probably an area we feel safe in, in the way we've orchestrated and architected that menu in the past and what we would, you know, we'd be okay with going forward. Thank you. Thanks, Michael. Our next question comes from Jake Bartlett with Truist Securities. Please proceed with your question. Great, thanks for taking the question. You know, my first one was a follow-up on the value discussion. The All Day Diner Meals, you know, launched that, what, about a year and a half ago? I'm wondering how that has performed versus just doing the Grand Slam. Trying to understand- Mm-hmm ... how, you know, whether the relaunch, you know, here, you know, will, you know, how impactful it could be versus launching the $5.99 Grand Slam. Yep. Thank you, Jake. Great to hear from you. I think, we're actually pretty confident. So we did a lot of testing to go back and look at repricing that versus staying on. We were on for quite a bit with the Original Grand Slam, and it performed well for us, and it really hung in there for us. So we do great. When we talk about our Slams, that's the signature platform, obviously. So what you see in All Day Diner Deals and what the research really pointed to for us, we went and revamped the commercial. We went and really amped up the variety play, so it's six entrees. We lead with the Everyday Value Slam, a great value, but we lead with that, but you're also, we can also see in just a really short amount of time since this launched, we can see burger sales, and incidences are up. So, the things that are featured in that spot actually are performing pretty well. So we like the variety, we like, that there are options for the guests, and it's not just one single breakfast item, although we lead with breakfast because that's the best, we have the best, potential when we do that. So we're encouraged, and we've got great, great plans in the mix for the, the rest of the quarter and the back half of the year. Great. And just to confirm, this is... You mentioned in the last call, you were testing some, you know, various levels of value. This is what you were testing, or are there other platforms that you're currently still looking at? We absolutely are still. There are other platforms we are still looking at. And again, this one, given we revised the commercial, given some new testing that we did, it surfaced to the top. So a good one now to lead into this quarter with, but we are not done. We have a few more tricks up our sleeve in terms of great everyday value offers that can be really compelling for us, given the environment. Okay. And then this next question might be a one that I should already know the answer of, and so I apologize ahead of time. But, you know, I wanted to make sure I understood the implications of the local co-op matching and, you know, the $12 million in increased spend that you talked about. Where does that money come from? Is this? Help me understand exactly who's matching what and where. You know, is there any contribution from Denny's itself that is kind of going out the door? Yeah, Jake, that's an excellent question. So the mechanics of that are this: so all of our restaurants, all of the Denny's restaurants, contribute three percent to our Brand Building Fund. This co-op then suggests if the franchisees spend an incremental half a percentage point within their market, we will take a half a point out of that Brand Building Fund to match into that local co-op, giving that co-op approximately 1% of their sale to spend, leaving the remaining 2.5% in the Brand Building Fund. So that, that's the mechanics of how that works. So overall, again, the overall spend is lifted 0.5%, in this environment, shifting the national spend from 3 to 2.5, illustratively, and the local then goes from 0.5 point to 1 point. Got it. Great. And then the last question is just on California. You know, you had, there's been a month now of the implementation of the FAST Recovery Act, and you mentioned that it's not so far impacting your labor costs, so that does sound like the labor cost increase is still built into the guidance. But, you know, anything you're seeing, you know, I think there was an idea that this could drive traffic to, you know, to family dining and full service. Any activity or any actions by consumers or changes in behaviors that you can share at this point? Yeah, Jake. So this is Robert again. With regard to that, a little early, frankly, to see changes in traffic patterns resulting from that. The potential of incremental funds going into the pockets of our consumers, those paychecks may just be getting into their pockets at this point. So consumer behavior as a result of increased income from increased wages is likely too early to see. But as within our prepared remarks, we're really, at this point, pretty bullish, at least in the near term, that management turnover and crew turnover has not taken a significant change in California. Again, watching it, just as I described, the wages may be early, the impact of how that all evolves with regard to turnover or labor inflation, we're still watching that very closely. But early on, those two points have performed better than we are. Our guidance, as you point out, does contemplate increased labor inflation. That may be something that we could revisit later in the year, but right now, just a little cautious to do so. Great. I appreciate it. Thank you. Thanks, Jake. Our next question comes from Todd Brooks with The Benchmark Company. Please proceed with your question. Hey, thanks for taking my question. I want to drill in on Keke's a little bit. First, Kelli, just... It sounds like the Hendersonville opening's gone better than you expected, but what kind of learnings out of the response, maybe potential in the non-Florida markets? I know it's one data point, but any read-through or excitement around this opening that-... either changes the growth trajectory going forward, or if you could possibly update us. I know there were a lot of franchisees that were waiting to see that unit and the performance- Mm-hmm. -outside of Florida. Is there any way to give us an update on where the franchisee pipeline stands? I think the last update was 100 plus. Yeah. So great question, Todd. We are absolutely excited. The opening has done well, as you said, and Robert already mentioned, so above expectations. You know, I think we mentioned on the last call, didn't get into it in as much detail this time, but we didn't open with patio or our liquor license yet. We've got those things to add. They've been fully vetted and tested now in the rest of the system. So there's other levers to pull that haven't yet even begun to be in the mix in Hendersonville and in the Tennessee market. Next one coming up in Tennessee, so we're really bullish about that market and the response we've gotten so far, beautiful design, food. The net sentiment scores I mentioned in my comments, but they are, they're absolutely phenomenal. And the team is working through a lot of different things in terms of ways to look at the existing fleet in the way of a remodel package, where we could take the learnings and the things that we've seen that have been really positive from the guests, really new positive aspects in the design and pull those into the Florida market. Those franchisees are incredibly excited. It'll be the first time there would ever be a remodel program for the small but mighty brand at Keke's. So there's a lot of excitement about that, as well as excitement for, you know, the work that is being done around alcohol that has been testing, you know, patios. Gallatin will open with a full patio, and it's just a beautiful, absolutely beautiful building. So the learnings are absolutely there. We've got lots of people talking to us about it now that we've got these kind of learnings from Tennessee. So the interest is still there, the conversations are there, and we expect to be, you know, continue talking about the pipeline strengthening. Okay, great. And then just to follow up, about the potential to remodel the fleet in Florida. Do you have a rough idea on what the remodel cost might run to get those units to have at least the elements that you could work into those older boxes from the newer design? Yeah, great question. So we're pretty early at this point, and again, pulling the most, you know, the most appropriate elements to bring into a lot of inline locations as well. So we're kind of wrestling with, what does it look like inside? How do you—It's really gonna be paint and new colors and brightening it up, and then still having some of those same, same things that are signature for Keke's. So we're still early in designing that, and we'll test that at our Dr. Phillips location pretty soon, but not quite there on just having that full package figured out. Okay, great. And then my second question, I'll hop back in queue. Menu innovation pipeline, and you talked about levering the new kitchen equipment more and more going forward. What does that look like? Does it go item by item, or do you see new platforms that you're experimenting with that lever the new kitchen equipment? Is there anything we should be watching for, I guess, from the menu standpoint, that could be another incremental driver to that list of same-store sales drivers that you laid out earlier? Thanks. Sure. I mean, that's what I can tell you is that what we are doing is looking at the menu holistically, looking at the obviously, always being mindful of the equipment, the simplicity and the consistency that that equipment offers. But there are a couple of things that you will see us do that kind of look at the menu and our strengths and things that are signature for us, while balancing that with things that we can use our menu, our kitchen modernization equipment for. Nothing that I probably would want to add just yet in terms of what the pipeline looks. But there's some, there's some pretty exciting things that we've got for the back half of the year. Okay. Thanks, Kelli. Mm-hmm. Thank you. As a reminder, if you'd like to ask a question, please press star one on your telephone keypad. One moment while we poll for questions. Our next question comes from Nick Setyan with Wedbush Securities. Please proceed with your question. Thank you. Just a follow-up on the co-op. Just to understand correctly, is it an actual increase in, in marketing spend overall, or do we just shift 50 bps from national marketing to local marketing? Yeah, for clarity, Nick, it is an actual increase of 50 basis points. Again, we are shifting 0.5 point out of national to boost the total local spend to a point, but it is an actual increase in total spend from 3% to 3.5%. Okay. Okay, I guess we'll just take it offline to understand where that 0.5 point comes from exactly. And then, just around sort of, you know, some of the, you know, add- backs on the company-owned, or maybe just kind of if we, if we step back and, and just think about EBITDA, like, if we were to keep it apples to apples to how we talk about it—how we, how we used to talk about it, what would the new EBITDA guide equate to? Yeah. So, Nick, we tried to take that into account into the new range there. So it is now, for 2023, this new definition would have led to approximately $89 million. The current definition now is $87 million-$91 million, so that new point midpoint is about $89 million. And we adjusted our guidance range upwards to account for these changes that I described in our prepared remarks. So, and just taking- ... somewhat of a step back. The reason for this is we, many conversations, particularly post our earnings releases, we were running into too many conversations in which analysts and investors were going, "You're not as comparable as we would like to see to others of your peers, and it's somewhat difficult for us to understand your definition in comparison to your peers." So we were really trying to take into account both of those, making this easier and more comparable to our peers. Within our investor presentation, Nick, we do have a reconciliation dating before this new definition all the way back to 2018. Okay, and then just last question. You know, it does sound like you're already seeing an acceleration in comp trends, you know, versus the, the Q1 comp. Any way to, you know, maybe bracket what you're seeing in April quarter-to- date? That's a tough one, Nick, because the reality is again that choppiness that we had seen really kind of extended through the mid-April timeframe. So to give you a number, I don't think that would be representative of the month, would be representative of the new trends that we are now seeing in the back half of the month with the new menu, with the incremental pricing, with the new All Day Diner out there, that new value commercial we have out there. So the month wouldn't necessarily be representative of the trend that we've seen kind of the back half of the month. Got it. Fair enough. Thank you very much. Thanks, Nick. Our next question is from Aisling Grueninger, with Piper Sandler. Please proceed with your question. Hi, good afternoon, guys. I know you mentioned on the last call as well as in the prepared remarks, that Florida was the weakest state in your geography. I was just wondering if the Florida market is improving any since this, and just how much has it been impacting traffic and sales at Keke's? Yeah. So good to speak with you. With regard to the traffic, the sales within Florida, there has been some improvement over the course of the quarter. But with regard to relative positioning to the balance of the US, it would still fall in the bottom quintile of our sales performance. I do believe that we will see that we begin to roll over the depths of this in about a month or so. That happened in this really outsized relative underperformance in Florida, really started in about May of last year. So I do have some hope that as we roll over this, it'll begin to normalize. But right now, it would be still in the bottom quintile of our state's performance, although it did improve across Q1. Great. Thanks. I'll pass it back. Thanks. We have reached the end of the question and answer session. I'd now like to turn the call back over to Kayla Money for closing comments. Thank you. I'd like to thank everyone for joining us on the call today. We look forward to our next earnings conference call in late July, when we will discuss our second quarter 2024 results. Thank you, and have a great evening. This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.