Christine Cho

Adam confirmed protein trend resonating broadly but outsized impact on younger cohort. Mostly coming through as add-ons rather than standalone purchases. Scott teased upcoming beverage for summer and new sides/dips through Stage Gate but declined specifics.

Scott expressed strong confidence in long-term mid-single-digit growth algorithm and 7,000 North America restaurant target regardless of near-term macro headwinds.

Scott confirmed Canada performing well with US-level margins and 35% growth planned. Western Europe achieving highest margins since market entry. Actively looking for new European sites.

Adam explained pricing philosophy: price only to offset inflation, grow margins through incremental transactions. Would consider price only for permanent inflation.

Adam broke down 70bps mix drag: 20bps loyalty adjustment, 50bps underlying from group size decline offset by brisket premium and continued strength in queso, extra meat, chips.

Russell noted Middle East franchisees have not seen war impact; region is ~2% of OI. New DPE CEO Andrew Gregory starts August. Still working closely with current team, Russell has call with Executive Chairman Jack Cowin on Wednesday. Focus is getting value equation right to restart order count growth. Excluding DPE, international performed exactly as expected.

Russell explained refresh inspired by Hungry for More, driving value perceptions well but opportunity to lift deliciousness perceptions. New color palette, food photography, entire look. Research shows no restaurant brand does both value and deliciousness well. Costs fully funded by 6% national advertising fund (franchisee-funded).

Russell noted mix and match and carryout deal share has been consistent over time. Best Deal Ever brought back for value plus deliciousness (any 7 toppings), reinforcing Hungry for MORE pillars together.

Russell credited Canada's embrace of Hungry for MORE (value, aggregators, stuffed crust). Sandeep confirmed DPE closures mostly behind them, India/China tracking well, healthy paybacks globally.

Russell said demand exceeds supply as the constraint. Cited 25 shifts vs 2 to reach competency as key metric. Framed DJ as part of a broader 3-year operations reinvention including Dom OS and delivery time improvements.

Brian reported positive transaction and sales response across all generational cohorts in Q4. Emphasized customers are being more choiceful with spending, making the experience and value proposition critical to retaining visits.

Brian attributed acceleration to strong pilot results in hiring, training, and deployment combined with SmartQ algorithm. New grow report launching Q1 FY2026 will focus retail leaders on 5 key same-store sales drivers.

Brian shared specific results from 400-store algorithm pilot: 2.5 minutes pulled from cafe, drive-thru under 4 minutes, 75% of stores achieving 4/4/12 metrics. Technology works behind the scenes so partners experience calmer workflow.

Brian described a balanced approach targeting all age groups (Gen Z to 60+), noting younger customers respond to tea, matcha, refreshers, and cold beverages while the strategy avoids over-indexing on any single demographic.

Rachel declined to reaffirm the specific $1 billion efficiency target, redirecting to ongoing supply-chain efficiencies that will fund reinvestment.

Rick confirmed increased frequency (significant), huge value and portion size scores. Not just GLP-1 driven, many guests want smaller portions with unlimited first course. Mix impact about where expected.

Raj confirmed 80-85% Q4 beef coverage (best in years). Seeing willingness from suppliers to contract further. FY2027 coverage ahead of typical pace. Waiting for June for specifics.

Rick emphasized marketing filters: build brand equity, simple to execute, not deep discounting. Back-half promotional calendar similar to prior year. Would market lighter portions only if team develops great way to communicate it.

Raj clarified age is really a correlation to income. Higher income households ($100-150k) seeing more growth. Every income cohort growing in casual dining except below $50k.

Turner confirmed role still planned but unfilled. Pivoted to describing supply chain team wins going category by category but no specific timeline or financial targets shared.

CFO confirmed Taco Bell US has highest Byte penetration with most components active. Pizza Hut US also fairly penetrated. KFC US needs more deployment. International focus is prove-then-scale. Investments remain prudent while continuing to bend the G&A curve.

CEO cited 95 countries with development vs 90 last year, KFC gross ahead of prior year Q3, Taco Bell net units up 30%. CFO added accelerating Taco Bell International SSS gives faith in 2026+ pipeline.

CEO cited Baja Blast as proof of natural beverage positioning, Live Mas Cafe results prompting aggressive expansion plans, and KFC's own Quench program going into test.

Direct: tiers are driving modest frequency increases and engaging guests earlier in their loyalty journey, driving greater long-term attachment.