Good afternoon. My name is Jeannie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Sweetgreen Inc. Q3 2023 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star one. Thank you. Rebecca Nounou, Head of Investor Relations, you may begin your conference. Thank you, and good afternoon, everyone. Here with me today are Jonathan Neman, Co-Founder and Chief Executive Officer, and Mitch Reback, Chief Financial Officer. Before we begin, we have a couple of reminders. Our earnings release is available on our website at investor.sweetgreen.com. During this call, we will be making comments of a forward-looking nature. Actual results may differ materially from those expressed or implied as a result of various risks and uncertainties. For more information about some of these risks, please review the company's SEC filings, including the section titled "Risk Factors" in our latest annual report on Form 10-K filing and subsequently filed quarterly report on Form 10-Q. These forward-looking statements are based on information as of today, and we assume no obligation to publicly update or revise our forward-looking statements. Additionally, we will be discussing certain non-GAAP financial measures, which are in addition to and not a substitute for measures of financial performance prepared in accordance with GAAP. A reconciliation of these items to the nearest US GAAP measure can be found in this afternoon's press release, available on our IR website. With that, it's my pleasure to turn the call over to Jonathan to kick things off. Thank you, Rebecca, and good afternoon, everyone. Together with my co-founders, Nicolas and Nathaniel, we opened our first Sweetgreen in a 500 sq ft old burger shack in Washington, D.C., a little over 16 years ago, with a vision to redefine fast food. We sourced fresh, local, and organic ingredients from local farmers markets to serve the community healthy, delicious meals. We worked alongside 10 team members to prep, chop, and roast every day in the restaurant. Fast forward to today, we source from over 200 farmers we know and partners we trust. We work with over 6,000 team members across our 220 restaurants nationwide and thoughtfully prepare these ingredients and cook from scratch to deliver food that is fresh, craveable, and nutritious, with our signature Sweet Touch hospitality to millions of devoted customers around the country. While we have grown and evolved a lot, a few things have not changed. Our mission of building healthier communities by connecting people to real food and our long-term commitment to being a positive force on the food system while creating a sustainable and durable brand and business. For the past 16 years, we have been at the forefront of our industry, pioneering a new category. Our third quarter results demonstrated our continued commitment to building what we refer to as an and company, one that balances growth and profitability. We reported third quarter revenue of $153.4 million, generating 24% year-over-year revenue growth and same-store sales growth of 4%. Restaurant-level margin in the third quarter was 19%, a 300 basis point improvement year-over-year. Strong sales growth, restaurant-level margin expansion, and disciplined support center spending resulted in an adjusted EBITDA of $2.5 million for the quarter. It is also worth noting that on a year-to-date basis, our adjusted EBITDA loss is under $1 million. This represents a $31 million improvement over the same period in 2022. Said another way, over 40% of each incremental dollar of revenue in 2023 is flowing through to the bottom line. You know, sometimes the progress in a business is not always visible to the outside world, and in many ways, off the back of COVID, we had to spend more time stabilizing our company than building it. While we waited for the world to return, albeit somewhat slower than we would have liked, we spent time strengthening the foundation of our business, tackling our costs, and focusing on driving margin expansion. There is, of course, always more to do, and we think you, our partners and shareholders, will see the fruit of that work in the coming quarters. While we still find ourselves in a complex and shifting environment, what I can say for certain is that we are back on the offensive and believe the flow-through at the unit level will drive significant returns on capital in the years ahead. Now, let me provide an update on our strategic priorities, starting with our footprint. In the third quarter, we opened 15 new restaurants, including our first in Milwaukee and Orange County. We ended the quarter with a total of 220 restaurants. As a result of front-loading our development this year, in the fourth quarter, we will be opening 1 restaurant, our second Infinite Kitchen in Huntington Beach, ending the year with 38 new restaurants. We continue to be pleased with the class of 2023 openings, performing in line with our financial expectations. Our Infinite Kitchen pilot continues to deliver many benefits to our operating model, such as increased throughput, near-perfect order accuracy, portioning consistency, a better team member experience, improved restaurant-level margins, and an accretive return on capital. The feedback we hear consistently is that we are delivering a much better customer experience. Just last week, the Infinite Kitchen was recognized by Time as one of 2023's best inventions in the food and drink category. It was selected as one of 200 groundbreaking inventions for leveraging automation technology to create a speedier, more precise way to assemble menu items while bettering the customer and employee experience.... I want to express my gratitude to the entire Sweetgreen team for making the Infinite Kitchen a reality. Our confidence in the Infinite Kitchen technology as our assembly line engine of the future is very high. As such, we have moved into an initial production phase with an industry expert in equipment manufacturing. Looking ahead in 2024, we anticipate deploying approximately 7-9 Infinite Kitchens into new units and 2-4 retrofits. In order to align the delivery schedule of Infinite Kitchens with our real estate pipeline and to minimize future retrofits, we envision opening between 23-28 new stores during 2024. The Infinite Kitchens will be weighted towards the back half of the year. The retrofits will be in high-volume urban stores, where we are most interested in understanding how faster throughput will translate into higher revenue and flow through, and thus a higher return on capital. We remain focused on expanding our footprint in a capital-efficient manner to capture the white space and expect to see our real estate pipeline resume on a higher trend line during 2025. In Q3, we elevated our focus on building our brand. We bolstered our team with two exceptional individuals to lead our multidimensional traffic-driving strategy, which includes menu expansion and innovation, leveraging and strengthening our loyalty program, Sweetpass, and amplifying our marketing efforts to drive brand awareness. In August, Michael Kotick joined as our Head of Marketing, and Chad Brauze joined as our Head of Culinary. Collectively, Michael and Chad will help lead the expansion of the Sweetgreen brand and menu to reach a wider array of customers and drive additional guest occasions. Last week, we marked a major milestone in our long-term brand and menu strategy to unlock and capture broader consumer segments with the nationwide launch of Protein Plates, including Miso Glazed Salmon, Southwest Chicken Fajita, and our revamped Hot Honey Chicken Plate. These Protein Plates feature between 30 and 50 grams of protein, alongside a double portion of grains at a compelling value. With approximately 35% of customers eating Sweetgreen for dinner, we're building out the plates category to appeal to more customers, particularly at dinner time. While a week into the launch, customer reception has been fantastic, with notable strength in Texas and the Southeast. As part of this rollout, we were the first national fast casual restaurant chain to announce that we will be cooking all of our proteins, grains, and vegetables in extra virgin olive oil. We believe it's important our customers have confidence that all Sweetgreen ingredients, down to our cooking oil, meet our high sourcing standards, and we will continue to double down on the quality of our food, even as we scale. Moving forward, we will continue to focus on broadening our menu with relevant new products that reinforce the reputation and ethos of the brand in order to drive traffic. Our loyalty program, Sweetpass, launched at the end of April and continues to add members. As a reminder, Sweetpass is a two-tier loyalty program today, with a free component and a paid component called Sweetpass +, where for $10 a month, customers get $3 off daily as the hero benefit. Up until late September, Sweetpass was only available for digital orders. Adding the ability for our Sweetpass members to scan to earn and redeem awards in restaurants by scanning a QR code at the register, is an exciting expansion to our base loyalty program. Through strategic enrollment programming with new, lapsed, and low-frequency customers in the second half of 2023, we increased our Sweetpass + subscription membership by 25%, putting us on pace to achieve our internal 2023 Sweetpass+ enrollment targets. These activations are helping us build a playbook to continue the growth of this strategic pillar of the business. Turning to another strategic priority: running great restaurants. As part of creating a five-star team member experience, we are constantly improving our operations to make the work easier, simpler, and faster. This includes simplifying the execution of our menu, redefining our labor deployment model, and creating proprietary tools to drive productivity and ensure quality. During the third quarter, we removed the prep of five of the most popular dressings from our restaurants to create a more consistent product. While on the surface, this sounds like a small initiative, this was a years-long decision that was done with much thought and care. Without sacrificing quality, taste, and our food ethos, this move has allowed our team members to shift their focus away from prepping some of our most intensive recipes, and instead focus on hospitality and throughput. We see additional opportunities to improve throughput in the coming quarters through small tweaks in deployment. We will be focusing on throughput, where we've seen tremendous growth on the front line, as well as re-examining labor deployment at peak periods. Additionally, we've been investing in hospitality training so that speed does not come at the expense of a great customer experience. Our restaurants are fully staffed, and we remain pleased with the high caliber of talent we are able to attract. As we work to improve our team member experience, we've seen turnover decline over 15 points from the start of the year, and we'll continue to find ways to improve both the customer and team member experience through initiatives, both big and small. In the third quarter, we delivered our 10th consecutive quarter of over 20% sales growth and significantly expanded our restaurant-level margins year-over-year. Our goal from here is to continue to raise the bar. As I mentioned at the beginning of the call, I believe we have achieved great things in the face of an unprecedented environment. We have used this time to build a better business in ways that should become more obvious as we scale. We have a category-defining, mission-driven brand known for quality and transparency.... What gets me excited today is the massive amount of innovation you are seeing from the company. The Infinite Kitchens and our new menu options are just two powerful examples that, when coupled with the significant improvements we have made to our operations, have the potential to unlock significant shareholder value in the company in the years ahead. Now we'll turn it over to Mitch to walk through the quarter's financials in further detail. Thank you, Jonathan, and good afternoon, everyone. Total revenue for the third quarter was $153.4 million, up from $124 million in the third quarter of 2022, growing 24% year- over- year. Same-store sales grew 4%. This consisted of 5% price, flat traffic, offset by -1% in mix. As shared on the last call, the mix offset continues to be largely attributable to channel movement into the frontline and pickup from native delivery. Total digital sales represented 58% of our Q3 revenue, with approximately 2/3 of those sales coming from our own digital channels. Our average unit volume in the third quarter was $2.9 million. In the third quarter, we delivered $2.5 million profit on an Adjusted EBITDA basis, an improvement of $9.7 million from the third quarter of 2022 loss of $7.2 million. Our third quarter revenue increase of $29.4 million year-over-year was a significant driver of this improvement. We opened 15 new restaurants this quarter for a total of 220 restaurants. This year, we've opened 34 net new restaurants year to date, with 1 planned for the fourth quarter, in line to achieve the top end of our fiscal year guidance of 35 net new restaurants. As a reminder, we have a year two target AUV of $2.8 million-$3 million for new restaurants. The class of 2021 restaurants underwritten pre-pandemic are now on track to meet this goal. The class of 2022 continues to ramp. Currently, it's projected to hit our year two target AUV in year three. The class of 2023 openings are performing in line and are tracking to meet our financial targets. I should point out, nearly 50% of this class is based in new markets such as Cranston, Rhode Island, Milwaukee, Wisconsin, and Tampa, Florida. Restaurant level margin in the third quarter was 19%, a 300 basis point improvement from the third quarter of 2022. Restaurant level profit for the third quarter was $29 million, up over $9 million from a year ago. For a reconciliation of restaurant level margin to comparable GAAP figures, please refer to the earnings release. Food, beverage, and packaging costs are 27% of revenue for the quarter, a 100 basis point improvement from the third quarter of 2022. This improvement was primarily due to menu price increases and a decrease in both chicken and fish costs. Labor and related costs were 29% of revenue for the third quarter, down 200 basis points from the comparable period in 2022. This improvement is primarily attributable to headcount schedule optimization we implemented in the spring. Our restaurants are fully staffed, and we remain pleased with the quality of talent we are able to attract. Additionally, we've generally seen an easing of wage pressures. Occupancy and related expenses were 9% of revenue, consistent with the third quarter of 2022. General and administrative expense was $36 million or 23% of revenue for the third quarter of 2023, as compared to $42 million or 34% of revenue in the prior year period. The decrease in general and administrative expense is primarily due to a $6 million decrease in stock-based compensation. We expect our stock-based compensation for fiscal year 2023 to be in the low $50 million range, declining to the mid-$30 million range in 2024 and mid-teens in 2025. The significant reduction is primarily related to the accounting treatment of pre-IPO related grants. Our net loss for the quarter was $25 million, compared to a loss of $51 million in the prior year period. The $26 million improvement in net loss is primarily due to a $15 million decrease in non-cash restructuring and impairment charges, $9 million increase in our restaurant level profit, and a $2 million increase in interest income, as well as a decrease in G&A, as previously discussed. These decreases in expenses were partially offset by an increase in other expenses related to the change in fair value of our contingent consideration from our acquisition of Spyce and an increase in depreciation and amortization associated with additional restaurants. Adjusted EBITDA, which excludes stock-based compensation and certain other adjustments, was $2.5 million for the third quarter of 2023, as compared to a loss of $7.2 million in the prior year period. This $9.7 million improvement was primarily due to an increase in restaurant level profit and a decrease in general and administrative expenses as described previously. We ended the quarter with a cash balance of $275 million, down $5 million versus the second quarter. Year to date, we've generated $18 million of positive operating cash flow, a $43 million improvement over the same period in 2022. Now turning to guidance. We anticipate finishing 2023 with 35 net new restaurant openings, revenue ranging from $575 million-$585 million, same-store sales growth between 3% and 5%, restaurant-level margins between 16.5% and 17.5%, Adjusted EBITDA loss between $8 million and $3 million. This guidance reflects three holiday weeks in the fourth quarter for Thanksgiving, Christmas, and New Year's, which are extremely light volume weeks. The fourth quarter also contains a 53rd week, which is excluded from our same-store sales calculation. I am pleased with the progress we've made strengthening our financial model. In one year, our restaurant-level margins grew 300 basis points, and G&A, as a percent of revenue, decreased 11 points. As a result, our Adjusted EBITDA loss is less than $1 million year to date. Additionally, we've generated $18 million in positive operating cash flow. We are set to reach our goal of generating positive Adjusted EBITDA on a full year basis in 2024. This will be a meaningful milestone for the company, unlocking the Sweetgreen flywheel and the ability to reinvest cash flow into the business to capture more white space. With that, I'll turn the call back to the operator to start Q&A. At this time, I would like to remind everyone, in order to ask a question, press star, then the number one on your telephone keypad. Your first question comes from the line of Brian Mullan with Piper Sandler. Your line is open. Hi, thank you. Thanks for all the detail in the prepared remarks. Just a question on the development guidance for next year you gave. Sounds like at the midpoint, you're going to open maybe 25 or 26 restaurants next year. About one third of those will have the Infinite Kitchen. You know, if, if, if that goes well, would the plan be to reaccelerate openings in 2025? And if so, would you expect the mix of Infinite Kitchens to increase over time as well? And just are there any constraints in terms of what your manufacturing partner might be able to deliver? Hey, Brian, thanks for the question. So you're correct. The reason, the reason for the slight slowdown is to better integrate the Infinite Kitchen technology into the pipeline. As we mentioned on the comments, we, we will begin to deploy the Infinite Kitchen in the back half of the year in the pipeline, and we wanted to better integrate that, and so we don't have to go back and do, do as many retrofits. We do expect to speed up development in 2025 and hope, based off of the success of the deployment, to have a greater share of Infinite Kitchens in that 2025 pipeline. Okay, that's great. Thank you. And just as a follow-up, for those initial 7-9 Infinite Kitchen units, next year, could you perhaps just share what you're targeting for an AUV and a restaurant-level margin and maybe compare that to what I believe is for a traditional store, $2.8 million-$3 million on the AUV and maybe an 18%-20% margin? And then just related, any way you could give a sense of what it might cost per unit for those first 7-9 units or range? So here, here's what I can tell you. We've opened one unit so far, and we're really pleased with the results we're seeing. We're really pleased, first and foremost, with the customer experience. Customers, all the feedback we get is people love it. They love the speed, they love the cleanliness, just the hospitality experience we're able to bring, and our team members love it as well. We see lower turnover. It's a more enjoyable experience to work in. And of course, we're seeing a lot of margin leverage in that restaurant. As we've guided before, we see significantly less labor, and so we gave a number on the Naperville margin, last quarter. We're not going to report on it every quarter, but significant margin leverage as well. While we're not going to talk about the exact cost, what I can say is that the deployment of the Infinite Kitchen will be accretive to our return on capital. So whatever the incremental cost will be, the gains from the leverage on the labor will be accretive to that return on capital and what we expect in a classic unit. In terms of where we're going with them, you know, we're still very much in a learning phase. While we opened the first one in a suburban restaurant. We're opening a second one here in Huntington Beach. As we look at the pipeline for next year, we're trying a bunch of different types of restaurants. So whether that be opening a new market with an Infinite Kitchen and seeing how that goes, a couple urban deployments, a couple other suburban deployments, really understanding how it works in different, different types of real estate, so we know where we go with it in the future. Obviously, the Infinite Kitchen, it does better, in it with higher volume, so we would like to generally target it into stores that have slightly higher vol, you know, higher volumes for, for us. I think I covered all of your questions there. Yeah. Yeah. Yes. Thank you very much. Of course. Your next question comes from the line of Brian Bittner with Oppenheimer. Your line is open. Thanks. Just a follow-up to that question. I mean, I think the Infinite Kitchen dynamic is pretty popular, just given, you know, how successful it's been early on, even though it's only been in one unit. Can you help us understand maybe the longer-term retrofit opportunity? I know there's a big opportunity and in your new unit pipeline, but what are the main restrictions or maybe even perhaps opportunities as it relates to this dynamic on being able to insert Infinite Kitchens into existing legacy units? Thank you for the question, Brian. So as we mentioned on the prepared remarks, we're planning 2-4 retrofits next year. We do see a huge retrofit opportunity, and that's, again, something we're looking to learn. We're looking to learn a few things in a retro that I think will be different from a new store. Specifically, what does that max throughput do to our AUV in that restaurant? As we mentioned before, the Infinite Kitchens can do about 500 bowls per hour, so really fast production. And so we want to understand, you put it in a high, in a really high-demand store, think about like a CBD store that has really high peak demand. Can we, can we not only get the margin leverage, but could we capture more demand in those restaurants and have a, of course, a better consistent experience? So that's the, that's what the retrofit learnings will be for us next year. In terms of where we'll go with it, we do see a lot of restaurants that can eventually be retrofitted. You know, the way we're thinking about the technology is it's quite modular, both in terms of layout, length, you know, it can be square or it can be linear. Also, it can be modular in terms of components to scale costs up and down, depending on the AUV. So a lot of flexibility with the machine. And still, I just want to caveat, a lot of learnings to have. We have one that we're really happy about, but still a lot more to learn, and I think next year will start to provide a lot more of those learnings for us. And the last thing I'll say is, you know, what's interesting about the Infinite Kitchen is, you know, the cost on the Infinite Kitchen as we scale, will go down. As we start to see economies of scale, we'll continue to scale down, and we've already started to see that. On the flip side, as we've all seen, labor is inflationary, so we have two cost curves going. You know, one, significantly inflationary on the labor side, while the cost of the technology will come down. So over time, this can become very, you know, a really powerful tool for us, especially as we've seen significant wage increases around the country. You know, you have seen wage increases, but one very positive dynamic this quarter is the leverage that you're getting on the labor line. Third quarter, a couple of hundred basis points there. I know you slightly touched on some of the drivers of that, but can you dive a little deeper into how you're pulling this off? I know you're getting tighter with operations, but is there maybe... Are some of the new stores that you've built just doing much better on labor? Is there anything else to unpack, to help us better understand the drivers of the year-over-year leverage on the labor line? Absolutely. So as you know, our business is all about seconds and cents. So we've really been working towards drive, you know, pulling all the levers we have. In terms of the labor specifically, the gains have been to around better deployment. Some of this has been having our head coaches working more time on the floor, consistent with the rest of the industry. Others, it's been getting tighter with our labor deployment models. We've also seen a pretty significant increase in our head coach stability, and as I mentioned on the call, we've seen turnover come down 15 points. So we expect turnover to continue to improve, and the biggest indicator on productivity is a more stable team and, you know, teams that are more tenured. So you know, at Sweetgreen, we invest a lot in our teams, in our training, in our culture. It's a huge part of what we do to provide that sweet touch to our customers. And as our teams get more time enrolled, they're more productive, not only in providing a better experience, but a more profitable experience. So a lot of the, the gains have been just more stable teams and better leadership and just really strong head coach, really strong head coach performance, and we expect that to continue. As you know, you know, COVID brought a lot of noise around the labor market, and we've now seen the stabilization. And then the last thing I'll say on that is we introduced tipping, this quarter, and we've seen some really positive results. Our team members are loving it, and we see that as another accelerant to start to continue to bring turnover down. Awesome. Thank you. Your next question comes from the line of Chris Carril with RBC Capital Markets. Your line is open. Hi, Jonathan and Mitch. This is Katie John for Chris here. Hello. How's it going, guys? My first question is, you know, just when thinking about your priorities around menu innovation, can you talk about your current market share at different day parts and the specific opportunities the brand has to lean into as it relates to the day parts? Sure. So one of the most exciting things we've done in a long time, the biggest menu launch we've had in years, has been what we launched last Tuesday with Protein Plates. So as I mentioned on the call, it's a new category. I love the tagline, the marketing tagline that we have with it, which is: "You don't have to be a salad person to be a Sweetgreen person." And the goal there is a few things. One is to broaden the consumer. There's many people that want to eat healthy, real, delicious, craveable food, but may not want to eat a salad all the time. So this really starts to capture that broader consumer. It really removes the veto vote in many cases, which we're really focused on driving that with our kids' meals. And it does help us on dinner as well. We've, we've talked about the fact that dinner is about 35% of our business today, so we see a huge opportunity in growing share at dinner and really balancing that out, and that should be really accretive to our unit-level economics. What I can share is, you know, it's only been nine days, but really encouraged by the early by the launch of Protein Plates. One, the feedback from guests has been just phenomenal. People are loving it. It's you know, delicious and cravable. But the product mix has exceeded our expectations, and we're actually seeing it really over-index in some of our southeastern markets, almost doubling what we expected. So certain markets like Texas and the Southeast, we're seeing really, really strong receptivity to it. The last thing I'll say on it is, this is just the beginning of building out this category. So we launched three, three Protein Plates last week. You can expect this over the coming quarters and years to continue to build on top of this. So think about different, different unique base options, other proteins that will build onto it. And over time, I see Protein Plates-... really broadening the consumer, it helping us win dinner, and really helping us increase the TAM of the company. Great, thanks. Next one for me is, can you expand a bit more on Sweetpass? Any detail around, you know, the frequency or spend versus non-loyalty customers would be great, and how you're thinking about the next steps for growing the Sweetpass user base. Absolutely. So we launched Sweetpass earlier this year. It's been about approximately six months since launch. We've been very focused on enrollment in both tiers, both the free tier and the and the paid tier, the membership tier. We just launched, as I mentioned, the ability to use Sweetpass in store. So for most of the history of Sweetpass, it was a digital-only program. Starting just a few weeks, about a month ago, you can now use it in restaurants. So you could scan to earn loyalty points and use rewards in store, which is a very important and large channel for us. So we're really starting to learn a lot more about what it can do. What I can say is, we expect to beat our internal targets from an enrollment perspective on Sweetpass, and we are seeing some nice incrementality out of it. However, I do believe there's a lot of opportunity for us to make minor tweaks around how we leverage the CRM and the different customer journeys to see more incrementality out of that. So as we look forward to 2024 and the comp drivers—the focus comp drivers for us, continuing to optimize and leverage Sweetpass was very high on the list. Great. Thanks, guys. Thank you. Your next question comes from the line of Katherine Griffin with Bank of America. Your line is open. Hi, thanks for the question. First, I wanted to ask about just the increase in discounting this quarter and sort of what you're seeing in terms of you know customer sentiment right now. If you can speak a little bit to quarter-to-date trends, and if that's you know sort of why you're you know seeing a little bit more discounting. Is it a response to that, or is it you know more about customer acquisition with loyalty? I'm just sort of curious about the ethos with discounting, and I think you know what we should think in terms of maybe headwinds you know for going forward just on the mix you know component from that. Hi, Katherine. Thanks. It's Mitch. You know, I think what we would say is that we're really seeing no real change in kind of our customer sentiment, although we are watching very closely and kind of in line with everything we read, showing some degree of concern on the future. Our discounting is up slightly in the quarter, largely due to the launch of Sweetpass +, more than increased discounting by the company. Okay. So yeah, I mean, I guess the question then is, just as you think about iterating the loyalty program, you know, to what extent do you plan to incorporate discounting? And I guess, you know, sort of how should we think about, kind of how long, you know, that sort of headwind exists before you start to see, you know, the return, on that, you know, in terms of your expectations for loyalty? No, I would say at this point in time, we don't see a need to increase discounting for Sweetpass +. Okay, fair enough. Thank you. Fair enough. Thank you. Your next question comes from the line of Matt Curtis with William Blair. Your line is open. Hi, thanks for taking the question. Just to follow up on the Sweetpass discussion. I mean, I understand it's gonna be an important driver of comps for you in the future. But I was just wondering if you could talk about what impact Sweetpass has had on comps so far, or is it too early to say? I'd say very marginal so far. As I mentioned earlier, we're very much in the enrollment and acquisition period, more of an investment period, and as we build that membership base, we'll move into leveraging it. So like I said, it's a huge focus for us to make some optimizations on the underlying framework. We're pretty happy with how that works, but I think there's some work we can do in terms of the journeys and how we leverage the CRM to drive that frequency of guests. And there's probably a few minor things we can do in terms of driving better enrollment upfront. Expect to see some minor changes, but overall, you know, pleased with the start and do think this will be a big comp driver in the years ahead and has not been a, you know, a huge impact for us thus far. Okay, got it. Thanks for that. And then, just one other question on the quarter. It looks like other restaurant OpEx was up pretty significantly, at least more than we were expecting. Can you just describe what drove that? Can you say that again? Yeah, sorry. It's just a question on the third quarter other restaurant operating costs. It was up pretty significantly, at least more than we were projecting. I was just wondering if you could say what drove that. No, actually, it's difficult for me to explain, you know, why it was up versus what was expected. We saw no significant change in our inside numbers or planning. Okay. Thank you. Your last question comes from the line of Andrew Charles with TD Cowen. Your line is open. Thank you. This is Zach Ogden on for Andrew. Just looking at the updated guidance relative to the start of the year, the store openings are at the high end. ... The same-store sales are at the midpoint, the midpoint of the same-store sales was unchanged. So, the revenue guidance was updated to the lower half of that range. So can you talk about what's leading that, if everything else is at the high, or at the midpoint or higher end of the range? Yeah, thanks for the question. I think all I can really say about that as we kinda head into the fourth quarter, is we're kind of cognizant of all the consumer uncertainty that we hear and read about. As you know, seasonally, we're heading into our softest quarter of the year, and it contains three holiday weeks. I think those factors all kind of played together to lead us to the guidance number. Okay, got it. Thank you. And then just a question on the third quarter. So the same-store sales for the full quarter seemed to exceed what you had disclosed for the July period. So was there that acceleration throughout the quarter, and what do you attribute that to? Yeah, thank you. We saw our same-store sales grow each month in the third quarter. So, August is bigger than July, and September was bigger than August. So we saw a period of sequential growth all quarter. Okay, great. Thank you. We do have another question from Brian Mullan with Piper Sandler. Your line is open. Hey, thanks for taking a follow-up. Just a question on the restaurant-level margins. You know, if we were to take the upper end of the guide this year and say you got to 17.5, that, you know, that's a lot of really good progress year-over-year. If you put aside the Infinite Kitchen for a second, do you think restaurant-level margins could expand next year? And I ask that within the context of, I believe you still think there's a path to 20% over time, without the Infinite Kitchen. So I'm just curious if you could kinda give some early thoughts on if you could expand them next year. Yeah, thanks for the question. Yeah, we do see our restaurant level margins to continue to expand year-over-year. We believe next year, in 2024, they will exceed 2023, and we clearly see a path to kind of that benchmark, 20%. You know, we had a 20% margin in the second quarter of this year. We ran 19% in the third quarter. But we think as we kind of look out on the things that we've discussed earlier, both on the cost structure side, around labor optimization and on the growth side, around menus, Sweetpass, Sweetpass +, that we actually see drivers to increase revenue and costs coming down. We think it's clearly a path to 20% near term, and that's without any benefit from the IK, which, quite frankly, could be transformational over the next few years. Okay. Thank you, Mitch. This concludes today's call. You may now disconnect.