Good morning, everyone. The second day of our Consumer and Retail Conference here for Evercore. I'm Greg Mellick. I'm the retail Broadlines and Hardlines Analyst, and it's my pleasure to have with me this morning Todd Sears, who is the Senior Vice President and Chief Financial Officer of Sam's Club, but spent over a decade at Walmart working a lot in international. I know you've been at Sam's Club for now, maybe a little over a year. Just over a year, yeah. A lot of excitement and change going on there and acceleration growth. Todd, thanks for joining us and look forward to the discussion. My pleasure. I'm looking forward to it. Great. First, let's kick it off. Could you just give us a brief history and overview of Sam's Club that we saw from the video, but maybe position that now as to where you're seeing the consumer in general and your member? Yeah. The video, I think, did a good job of providing a really big overview. One thing I would add, in the last five years, really at the start of the COVID pandemic, which was the shot of adrenaline of growth, we've grown about 50% and still with the same number of clubs. That is a tremendous amount of growth in retail over a five-year period. It is that momentum that we have built, we believe the future is still very bright to be able to continue to grow at that pace. In terms of consumer, what we're seeing right now is the consumer is still being very conscious and very choiceful about what they're purchasing, but it's been consistent. I'll use that word consistent because the last 8+ quarters, the behavior has been pretty much the exact same. It really goes back to 2022 when we saw double-digit inflation in food. At that time, we saw members make choices to come out of general merchandise or non-discretionary categories into food. Even though food inflation has come down, food prices are still elevated. The members are still making those same choices. In terms of the behavior, it's been the same. The one other piece that we've seen a trend, and this trend has only increased, is they're also really prioritizing convenience. Anything we give them to make the experience in club better or the online experience better, they're leaning into. They're doing those two things. Maybe to pivot that just more recently, could you talk about the comp trends you've seen in the box and which categories are doing better in general merchandise and how's that? Yeah. The most recent quarter, we had a 6%-7% comp, which I feel is pretty healthy in retail. That was definitely led by fresh, which is produce. Think meat, fruit, vegetables, those types of things, and also health and wellness. Health and wellness has been growing double digits for quite some time now. However, general merchandise was also positive, which is pretty encouraging. In fact, it was the fourth quarter in a row that we saw positive general merchandise comps. During that time, we even saw a little bit of deflation on what we sell. The unit growth to get a positive comp was even higher than the comp growth. It is a combination of those things, but really the last two or three years for sure, fresh and health and wellness have had double-digit plus growth pretty consistently. That's driving some pretty powerful, not just the last couple quarters, but I know over the last six years, I just looked at the table. If we rank our 28 retailers, there's basically Amazon, Costco, and Sam's Club with the best six-year compounded growth. It is showing up in both traffic and ticket. We can see that in numbers, not just near-term, but even over the last few years. I guess to double-click on that, how are you guys managing the tariff and cost input side of this equation to try and keep that shocking value equation for consumers? Yeah. Keeping prices low is not new for us. That's part of our DNA. In fact, our financial model is to keep prices so low that we just barely cover our costs. We can do that because most of our profit comes from membership income, in fact, 80%-90%. We have always strived to keep prices low. The way you do that is supply chain management, manufacturing out costs, looking at the best countries to source. Everything we are doing right now to keep prices low are the same things we have always done. It's just a little bit different context, but the environment is very similar. On tariffs specifically, how do you manage through what that could do? Yeah. We have the best merchants in the world. We're forecasting demand and making the purchases necessary. We're also being very strategic on particular items. You've heard others in retail talk about pineapples and bananas, right? We also have not raised prices on pineapples and bananas, even though we have to import them. One of the things that we've done is we've been able to reduce spoilage and waste, which allows us to offset any of those cost increases. Another example that I'll share, and I think this gives good color and context, is at Mother's Day, we kept prices of flowers the same. We did not increase them, but the best roses in the world come from Ecuador and Colombia. You have to import them. We worked with our growers there, and collectively we decided, hey, we can reduce costs and cut out costs if we shift the packaging of these flowers to the U.S. Because we did that, that allowed us enough flexibility to not raise prices. We were rewarded with by far our highest flower sales weekend we've ever had. Some people would say, well, that's kind of a luxury item. That's not a necessity, but at least in my house, flowers on Mother's Day were an essential item. I was grateful that we were able to keep the prices the same. Well played, Todd. I'm with you on that. Maybe to pivot there, I mean, Sam's has outlined a pretty ambitious growth plan and some acceleration. Could you talk about how you're going to, it was 40 years to double sales and membership and now trying to do it in half that time? What are the targets and how do you get there? It was a couple of months ago we came out publicly and said we have an ambition to double the business, double membership in the next 8- 10 years. Wow. That is a big ambition. We know it is not easy, but Sam Walton, I think his quote that is famous says, "High expectations are the key to everything." That is the expectation we have for ourselves. That is what we are going after. Just a little bit of context. When we started this growth journey five years ago, yes, sales have grown 50% in that time. One thing that is really interesting is our member base grew 33% during that same time. That was, you know this, but for everyone's context, that was with the same number of clubs that we have today. That is what I would call purely organic growth, just adding members. That comes through with us delivering on our member value proposition. We will continue to grow organically throughout this time period. I think one of the big things we're doing to make sure we can continue to grow organically is we're remodeling all of our clubs. We want that consistent elevated experience throughout, and that will help propel that. With this growth, we also know now is the right time to start growing physically again and extending our physical reach. We will be building new clubs. With new clubs comes more members and comes growth, as you know, in retail. The third way we're going to grow is our digital reach continuing to get better and better. By digital, I mean really our e-commerce offering, our omni offering. The beautiful thing about that is that makes it so you don't have to live near a physical club to enjoy the value of a membership. Looking at all of those three components is how we have the confidence that we can actually go about this pretty bold ambition. Maybe I'd love to unpack each of those three growth areas a little bit more. Remodeling the clubs. When a remodel happens, what are the biggest changes that as a member I would see? Yeah. I talked about how fresh has really led the business. Fresh is so important in retail because it is a traffic driver. It is where the member assesses quality immediately, and they can tell that difference. In a lot of clubs, we have already remodeled our fresh area, but those we have not. We needed to get it up to the same standard that we have in our best clubs around fresh. That will be key. The other component is over half of our e-commerce sales are fulfilled from clubs. All of our clubs were built before any of that happened, right? Some elements of the club need to be retrofitted to enable our e-commerce growth, which is really, when you think about it, that is omni by definition, as we are using these physical clubs to really drive e-commerce. There's going to be a combination of those things. Of course, anytime you do a remodel, there's just big maintenance items that need to be done. We'll take care of all of those at the same time. I mean, I saw it last week in the club that the fresh cut sushi, I mean, that's in every club now, right? We have sushi in 581 exactly of our 600 clubs. Each one of those comes with a sushi chef. The goal is when we remodel, that sushi chef, that's a tongue twister, should be front and center, and it adds this theater. Sushi is a big traffic driver. One of the reasons why people come all the time, and the quality of it is excellent. Yeah. Now for under $10, there's a whole plate of sushi and a whole prepared meal. I could see that continuing. Maybe other growth areas, remodel the clubs, but also growing physically. To take us through how many clubs, how quickly you can put them up? Yeah. It was our investor conference we did in fiscal year 2024, where we announced we would open 30 clubs over the next five years. Now, at that time, we were just starting the pipeline. As you know, in real estate, it takes a while to build up a pipeline and get going. Right now, we are on track to open those 30 clubs by FY 2029. We will open a club in a couple of months in Arizona that we're very excited about, another one later in the year, more the year after that, et cetera. We also just announced a couple of months ago that we're not going to stop there. We see a lot of opportunity in the U.S. to continue to have a club presence. As we build up this pipeline for the 30, we are also building a pipeline to reach a point where we will be able to open 15 clubs a year on a foreseeable basis. It is going to take quite a while till we completely saturate those opportunities. I guess when you're doing that and you're running the IRRs on each of those sites, how many members per club do you expect to hit those IRR targets? Yeah. As you know, we don't disclose member counts. [crosstalk] It's a good try. The way I view it, the context I'll give you is if I look at our average member base per club today, any new club we approve and we allocate capital towards, I want to make sure that there is a good enough addressable market in that area where I can achieve that today's average early on in the cycle of that new club. I think year three, year four, something along those lines. That's important because there are so many different opportunities for us to invest. I'm not going to allow us to invest in a place where we can't have that membership base because it would just take away from a place where we could. As we go through capital allocation decisions and deciding where we want to go look for sites, that plays a big role. One thing that is important about Sam's Club is our ROI is accretive to Walmart Inc. As we're investing in remodels, as we're investing in new clubs, my job is to make sure that it stays that way. I look for, okay, how do we continue to play our role to have an accretive ROI to Walmart? Oh, I really want to go down that path. I will follow up on that. One thing that as Walmart has really taken off in tech and gotten new businesses driving that momentum, we've seen a real margin inflection from the density of delivery and advertising, et cetera. These are our numbers. We think that Walmart U.S. could be at a 6% margin in about five years with, I think, 15-20 basis points of tailwind. That said, Sam's, the nature of the model, high turn, lower margin, does that mean that Walmart's enterprise margin, should we as analysts be thinking the enterprise margin will always have to be 50 basis points lower than because of Sam's? I'm not saying you shouldn't grow the clubs. I want you to, but will it always be lower? How do you think about that? I'll talk about the Sam's margin. Maybe I'll have Steph chime in on the enterprise piece. You mentioned the model that we run on the club side, and this was the original model Sam Walton talked about, which was high sales, low GP, equally low SG&A, low operating margin, but high ROI. We are true to that model today. As we do different things, as we build new clubs, as we get more members, we may see our operating margin tick up a little bit, but we are not intending to, we are actually intending to preserve margin, not meaningfully expand it. We think because of how many investment opportunities there are, that that is the best thing to do for the long term. Steph, do you want to chime in on the Walmart Inc side? It's a good question. I think at the enterprise level, we step back and think about sales, margins, and returns. Across the portfolio of Walmart U.S., Sam's Club U.S., and international, you'll have different contributors to each of those buckets. Sam's, we know, is structurally a lower margin rate, but there are offsets within the portfolio in Walmart U.S. and international that can help lift that overall enterprise margin. We don't see any inhibitors to driving that kind of expansion that you talked about. Sam's can be a contributor to the rate of growth, even though it has a structurally lower margin. We wouldn't want to change that, to Todd's point. We want to think about the portfolio overall when we think about driving overall enterprise margin expansion. Just to be clear while I ask you on that stuff, you guys are still targeting a growth algo as opposed to some sort of margin target. Excellent clarification. Thank you. That feels good. We don't like the margin target. We like the growth. Pivoting back to the growth initiatives, I guess digital reach. I want to almost double click or triple click on that because it's been such a transformation, not just at Walmart, but really at Sam's. Maybe take us through the momentum that you're seeing in digital engagement at Sam's Club and how you take it to the next level. Yeah. Let me just set the context a little bit. We believe the future of club retail is omni. That is why we are investing heavily in omni. By omni, you cannot be an omni club unless you are digital. Digital in our context is multifaceted. Let me address the in-club experience first, which is we know about Scan & Go. What you may not realize, I was kind of surprised by this, is Scan & Go was launched in 2016. It is almost 10 years old. Next year will be the 10-year birthday of Scan & Go. Yet still in the most recent quarter, Scan & Go was 35% of sales, and that was up 600 basis points year- over- year. That is tremendous growth in a technology now that is nine years old. Additionally, with digital, I would view our Just Go exit arches as also being digital, using technology to improve that in-club experience. As we look at omni, really what we are trying to say is we want our members to choose how, where, and when they shop. That includes in-club. Of course, to do that, you also have to have a big e-commerce presence. Today, our e-commerce business is 17% of sales, excluding fuel. That was up 300 basis points in a year. That is pretty good growth when you think about the total mix. It grew 27% last quarter, and it has been growing in the 20s for quite a few quarters in a row. With e-com, we offer curbside pickup. We offer delivery, including fast delivery through express and also shipping from fulfillment centers. Curbside pickup and shipping have been growing pretty consistently for a number of years. However, delivery has been what's really taken off as of late. Just in the last quarter, delivery grew 160%. It wasn't a huge base, but it also wasn't a tiny base. The amount of momentum we have in delivery just continues to get faster and faster and faster. It's the members telling us they want things faster. They want it how they want it. They want it on their doorstep. We also have positive comps when we just look at in-club shopping also. When you have this total omni offering, again, it's allowing the members to choose how, where, and when they want to shop. It all kind of works together. That 17% e-commerce, the bulk of it is still curbside? The biggest piece is curbside, but the fastest growing for sure is the delivery. The in-between, the third bucket would be going direct last month. Yeah. Just shipping straight from a fulfillment center. Got it. From a fulfillment center. On that delivery, I guess pizzas are pretty good. Yeah. This Yeah. This is kind of interesting. We've sold hot pizzas in our cafes for a long time. And they're large. You can get an entire large pizza for the cost of a slice down the street, right? In New York for sure. Yeah. We had this idea like, "Hey, we're doing so much in delivery. Why don't we start delivering pizzas? Can we even do it?" This is a funny story, but we tested it just with some associates. The first pizza we delivered actually ended up being a rotisserie chicken. It showed up at this associate's house, and he took a picture of it and sent it in like, "This is a pretty good-looking pizza." Thank goodness it was an associate that was part of our test. We quickly got that corrected, and now we're delivering actual pizzas, not just chickens. We also deliver rotisserie chickens, by the way. The pizza delivery has been incredible and has exceeded our expectations, meaning we quickly rolled it out to all 600 clubs. What's surprising is the average order value of a pizza order is 10 x the price of the pizza. People are adding other things to the basket. The other thing that is interesting is that a significant percentage of the total orders, members are choosing to pay for it, pay for delivery through express. They want the faster delivery. The value on the pizza is so big, they're willing to pay that extra money to have it delivered that much faster. Here's the most interesting thing to me as a CFO, quite a few of the members who choose pizza delivery or delivery through express, this is the first time they've done delivery or express. Pizza is introducing members to these channels. We've learned on the Walmart side, when they get introduced to these channels, they don't go back. It's the same thing as Scan & Go. When someone uses Scan & Go, they don't go back. The trick is how do you get people into these channels? Pizza is serving that role for us and has been very effective. It's only like two months old, but it's been very effective so far. You unlock the entire box of SKUs, which is something, and no offense to Domino's if they're here later today, I'm not sure, but they can't bring you the rest of the box with the pizza. I guess going a little bit further now on that innovation and the technology has gone to store. You mentioned Scan & Go has been around for 10 years. What's been the inflection? If you look across all the different initiatives, you talk about delivery, but what's the inflection that really is driving that loyalty and traffic and membership increase? I think we've really invested heavily and focused on improving convenience and improving experience. Every trend we see with consumers is they want that, both our members, but also just more broadly in whatever country Walmart operates in or even here just in the U.S. We think we provide the most convenient and best experience in the channel. Members told us a long time ago they hate waiting in lines, like newsflash, right? That's why we introduced Scan & Go. COVID accelerated Scan & Go because everyone was concerned about that human-to-human contact, and it's just continued since then. Members kept telling us they didn't like to, they loved skipping the line at checkout, but they didn't like to wait in line to get their receipts checked at the door. The reason why we checked receipts is because this is a club model. We want to keep prices so low. It is just making sure you know what is leaving the door from a shrink standpoint. We said, "Hey, how do we use computer vision, which we already had in other parts of the club, to take away that manual check?" That is where we came up with the idea, developed and installed the Just Go exit tech, the computer vision exit tech in about a year's time. It moved really, really fast. A couple of interesting data points that I will share on that Just Go exit tech. An associate at the door historically would have checked 3-4 items manually on average. The computer vision on average is able to check seven, so twice as many. It is almost all of them. You think about average basket sizes and whatever else, but that is twice as many. Since we've done that, we have identified an increase in 17% or 17% higher unpaid item detection through computer vision than we did with manual checks. It helps shrink. It helps shrink. The great thing about that is the vast majority of cases it was accidental. The members felt horrible about it. In fact, the way we treated them actually increased the loyalty because of how we treat them with kindness and all of that. It is a win-win-win. It is a win for shrink. It is a win for the member. It is actually a win for the associate. The 75% of the members are now going through these exit arches without having to have their receipt manually checked. There are a few things that are complicated where we have to check it. Like anytime anyone buys alcohol, of course, that is going to trigger a manual check. There are some other things that are complicated, but 75% is a lot. What that does is for all members, from the time they check out to the time they leave the door is faster because there is no line or the line is a lot shorter and it is moving faster. Listening to members has taught us where to invest, where to lean into tech and improve that experience. If I frame it now, how many members are checking out with Scan & Go and what are we up to there now? That's at 35%. That's the 35%. And now that you have the exit systems, do you get rid of the cash registers or reduce the number of cash registers in the existing clubs? We saw in Grapevine that they're not even there. Yeah, you've been to our Grapevine club. For context, we're talking about Grapevine because it was a club that we had that got destroyed by a tornado. We ended up rebuilding it and reopening it last October. When we reopened it, having done a lot of research with the community, we opened it with no cash registers. What was great is when we took out all the space for cash registers, it allowed us to put more general merchandise in it, which the members also like. The good thing is the NPS on Scan & Go specifically in the Grapevine club is at or higher than the chain average for Scan & Go. One of the reasons why that's the case is because we took all those associates who were manning cash registers that had a physical barrier of the belt in between them and the member. We removed that barrier and now they're engaging with the member. They're teaching them how to set up Scan & Go, how to use it. It's been a great experience. On opening day, I was there and there was a couple probably in their 70s who couldn't figure out how to do it. I approached them and literally the guy handed me his wallet, his credit card, his phone. I could have taken off and run away, but I typed in his credit card and the smile he got on his face when he scanned and was able to just slide his finger and check out, it was priceless. Yeah, that happens every single day in that club. I think because we took a group of investors through that club, there's probably a misperception that we've already committed to taking all registers out of all clubs. We have not decided that yet. As we remodel clubs, just like we did in Grapevine, we will look at the member base. We will talk to them. We'll look at the environment and we will make those decisions. Certainly, there will be members in some areas and membership bases in some areas that will require some registers. I also think if we fast forward into the future, if you go far enough, there probably is no register. It's just a matter of timing and how you navigate through that. Got it. The scanning, right? Once you have Scan & Go and you have this, you just walk right out, get rid of all the pain points. I guess given your background international, from that experience, what have you learned or what things have really jumped out to you that you're trying to apply that where Sam's Club in the U.S. could learn from around the world? Yeah. We talked about I've been in this role for just over a year. I came from our international segment and I've worked a lot of my time at Walmart in international. We have, and we didn't mention this, we have Sam's Clubs in China and we have Sam's Clubs in Mexico, but they report up to our international segment, not to the Sam's Club segment. However, we stay very close to those leadership teams. In fact, just last week, we had leaders from Sam's China and Sam's Mexico in our building. We're sharing best practices. We're learning. We're trying to solve problems together. We're constantly talking. We share similar brand standards. We share sourcing. We share similar strategies. And it's been very beneficial. I think we were just talking a little bit before this. Sam's China, we've learned a lot from, particularly around the omnichannel side. The e-commerce side of their business is about 50% right now, is my understanding. That is really significant. They have figured out, "Okay, how do you handle that much volume in your clubs? What do you do? How do you still maintain a positive experience in the club when you have all these things?" We are only at 17%. They are at 50%. We will probably eventually get there someday. Having an example where we can share ideas and think about it just makes it a little bit easier. There is a little bit less R&D on our end because we can share with them. Those Lorraines. You said even a lot of the, is the purchasing linked or you're able to leverage the scale of Sam's or is it still merchants in each market? No, there's merchant teams in each market, but we have a global sourcing team that helps facilitate. There's members' market in each of those markets. There are some sharing of products. Generally, we've also learned that local assortment is very effective. Got it. Could Sam's grow faster if it was separated from Walmart? That's a really good question. One of the ways I look at it is I believe one of our biggest differentiators and what strategically is because we are part of Walmart. That has allowed us to grow at the pace that we are and innovate and move with speed that we do. The reason for that is because we can leverage the whole of the enterprise quite a bit. A couple of examples that I'll give is about a year ago, we announced we were merging the Sam's Club supply chain with the Walmart U.S. supply chain. The primary reason for that is it's really expensive to build a supply chain, a world-class supply chain. Walmart had that. Ours was pretty good, but we had already built it. I would say we, Walmart Inc, had already built it. Some of you have visited our fully automated fulfillment centers. They cost a lot of money. Now we have Sam's Club inventory in them. We are able to, as an enterprise, leverage that asset even more. One of the reasons why delivery is growing so fast is because we leverage the Walmart Spark driver network that they already built, they already set up. We did not have to build all that infrastructure. More recently, we have started leveraging the real estate function at Walmart specifically on the facilities maintenance side. They have a lot of buildings across the U.S. We have 600. For them to be able to, they already have economies of scale and are able to more effectively and efficiently help maintain our facilities. Of course, we have talked, we have not today, but we always talk about leveraging tech. In fact, right now, our e-com app is undergoing a migration to the same platform that the Walmart app is using. We started rolling it out a couple of weeks ago. Quite a few members already have it. All of our members will have it in a couple of months. The reason why that's important is because once we have the same platform, we can then leverage all the tools and capabilities that Walmart's already built within the Sam's app. Today, it's harder for me to do that. I'll give you an example. While delivery grew 160%, if you place a delivery order and you said, "I forgot that I wanted to buy ketchup," the only way you can do it is to place another delivery order or to cancel the order, go add all the same stuff to your basket and add ketchup this time. That's painful. No one wants to do that. On the Walmart side, we've already built the tool and the capability where until it leaves to deliver, you can just incrementally add or change your order. Once we'll be on this common platform and we start integrating those tools and those features, we'll be able to have all those same things that the Walmart side has. The beauty of that is most of our members, they shop at Walmart too. They're already used to being trained on that app. The way we can scale and move faster is a result of being part of Walmart. I would be concerned, it would just be harder as a standalone company. The capital costs would be higher. The development lead time would be a little bit longer. I think we're in an optimal position. Steph, do you want to add anything to that from an enterprise lens? No, I think you've summed it up well. Definitely want to stay part of Walmart. That said, there are parts of Walmart like Walmex that have benefited from having a publicly traded equity board in the country. We talked about Flipkart and PhonePe, I think in the past as areas around the world that you know intimately. I checked NASDAQ still has the ticker SAMS. Still has it. It still has it. You can get Sam's as long as you're NASDAQ. I think Sam Adams has the, anyway. You could still be part of Walmart, but would there be any benefit to actually being at least separated in that regard so that people could buy in, associates at Sam's Club could buy into Sam's equity? I'm just still thinking, it's still ringing in my ears, the Sam's Club associates cheering last Friday endlessly. Jimmy Fallon couldn't talk for two minutes. It was so loud. I'm rambling a bit here, but I guess how about from that side of it, not about leveraging the technology, but is there another angle on that? And feel free to. I'm sure Steph will jump in on this too. One of the reasons why that would be appealing to me is for additional capital. I don't need that because I've never been rejected for a capital request. I don't have that incentive. Steph, do you have anything else to add? Only thing I'd add to that is this is something that we evaluate through our process on a continuous basis. It is not a new or novel concept. I think to Todd's response, there's value in being part of the enterprise and the entity. It is our duty to continue to evaluate all of the assets that we have, business assets and infrastructural assets to make sure we're optimizing value for the shareholder. That's great. Thank you. I'll keep trying, but I guess just tied together, we talked a lot about growth and the reacceleration technology and how that AI comes up in just about every meeting. Maybe more specifically, how are you guys using artificial intelligence to help your member experience and partake in this growth? Is there any examples you can share? Yeah. I mean, the classic example, and this is a little bit older AI, but I'm reminded of back ages ago when the U.S. Postal Service started using machines to scan zip codes. They called that AI at the time, which is, it's interesting how things have evolved. We've talked historically about our autonomous floor scrubbers. They don't have people on them. They go around, they clean our clubs, they clean the floors. At one point, we got the idea, why don't we throw cameras on them? This is when we started getting into computer vision. We put cameras on them and RFID readers. Those scrubbers today take 23 million pictures a day across our clubs. We throw that into a machine and it's AI that's analyzing those pictures and is doing two things. One is it's identifying when inventory on the floor might be getting low. Our associates do not have to go around and look. They are getting signals straight through their phones, through their apps, saying, "Hey, your paper towels are running short. Time to put out another pallet." The pictures are also looking, what we say, up in the steel. In the club, if you look up, that is where we store all of our inventory. There is no back room. There is not, like on the floor, we know where things are at, but up in the steel, we do not. Basically, we put the pallets wherever they fit. The autonomous floor scrubbers, the pictures they are taking are also up in the steel. They will identify where the inventory is. Historically, an associate would have to walk around with a clipboard and be looking up, getting neck pains and identifying where the inventory was. Today, they know where it is because we're using these pictures, AI analyzing it and telling us where it's at. That's one example related to AI. We have a lot of things that we're working on. I'm not going to talk about them because everyone wants to know what we're doing and we think we're onto a few things. We're being very front-footed though. I think what makes me most excited is things that we could only imagine in the past, AI will make a reality. It's just a matter of time and getting some of those things implemented and done. I'm very excited about what AI will do to the entire club experience. Todd, I think that's the perfect way to end because we've got to still for a few more hours. I really appreciate it, Todd. Thanks for the time. We'll follow up over the course of the day. Thank you. Thanks.