Jeff Bernstein

Raj confirmed targeting 1.5-3.5% SSS, 3-4% unit growth, and EAT margin flat to +20bp for FY2027. Excluding Bahama Breeze impact, unit growth contribution expected in 3-4% range.

Raj explained higher-than-expected inflation with incomplete pricing pass-through. 53rd week delta is rounding ($0.20 to $0.25 approximately). Midpoint still above initial guidance midpoint.

Rick noted LongHorn at 15% off-premise with different order mix (more chicken/seafood, less steak). LongHorn learning from other brands to evaluate if Uber Direct makes sense.

Raj confirmed gap widened as industry slowed. Declined to forecast future gap, noting they build plans from brand initiatives and macro factors, not relative to industry.

Rick cited strong unit pipeline (most restaurants built or being built). Raj noted even Q2 started strong. Back half still expected lower than first half.

Rick confirmed another brand expecting to launch 1P delivery in Q3. Still challenges with third-party/marketplace model. Focused on first-party for now.

Rick clarified BOTO was not deep discounting. Affordability investments focus on adding lower-priced items to menu for mix impact, not promotions.

Rick declined to speculate on industry plans but noted one competitor communicating well on value. Darden is ready to react in their own way.

Rick noted income growth outpacing inflation supports spending, and dining out remains #1 splurge category.

Rick acknowledged possible GLP-1 impact on fine dining but pointed to portfolio diversification as a buffer.

Raj confirmed tightening reflects increased confidence with two quarters actualized. Olive Garden and LongHorn expected to be above the 1.5% level.

Kevin acknowledged investor concerns about unknown entity and $29.1B price tag. Noted roadshow feedback increasingly positive as investors learn the asset. Shared Restaurant Depot Q1 calendar performance: 4% volume growth, profitability on track. Brandon detailed deleveraging plan from 4.5x to 3.5x in 24 months with cushion built in.

Kevin cited traffic improved 90bps Q/Q while Sysco improved 210bps, a 120bp outperformance. Reiterated 2.5% Q4 volume representing 120bp acceleration on 2-year stack. National chain restaurant weakness driven by $4 gas, but non-commercial continues strong. Brandon added 2-year stack improved ~60bps Q2→Q3 and expects ~120bps Q3→Q4.

Kevin confirmed two-year stack improvement expected in back half, with softer Q3 compares included in outlook. Shared cautious optimism on industry as independents lean into value. Kenny bridged the math: Q2 organic 1.1% + Ginsburg 10bps = 1.2%; back half organic at least 2.1% + Ginsburg 50bps = at least 2.5%.

Kevin noted QSR and large national chains underperforming while independents outperform, a positive for foodservice distributors. On the 100bps promise, cited being 1/3 through Q2 with October stronger than September despite weaker market, plus AI360 and Perks 2.0 still early and building impact.

Kevin said Q3 was the anomaly, not current trends. Growth will come from share gains, not macro improvement. Kenny unpacked 3-5% guide: 2% inflation plus 2-3% volume and M&A, with 50bps Mexico lap headwind.

Kenny attributed 85% of miss to volumes (traffic fell 150bps Q/Q vs expected improvement) and 15% to strategic sourcing deal timing. Kevin noted February's -5.7% traffic drop was like a light switch, impossible to cut costs that fast.

Kevin emphasized self-help over macro improvement, citing the $100M savings as primary driver. On Sysco Brand, attributed decline to national brand fill rate normalization, with penetration still at 46% for local.

Kevin addressed confidence through three P&L levers: volume growth with proof points in select geographies, gross margin recovery from strategic sourcing, and supply chain expense improvements.

Smith confirmed $2 billion cost savings on track with growing initiative pipeline. Savings split roughly half top line and half cost savings. Not changing FY2028 targets yet but confident in trajectory.

Brian confirmed thousands of identified sites with no barrier on unit growth. Key enablers include new coffee house coaches (assistant store managers) for people pipeline and new prototype formats (Ristretto, Tall, Grande, Pico) with lower build costs.

Cathy deferred FY2026 and longer-term guidance to Investor Day. Emphasized top-line growth first with earnings to follow, and that every transaction should be more profitable going forward. Declined to provide guardrails.

Brian focused on value perception as key, citing 2-year highs. Positioned Green Apron Service as foundational differentiator that no competitor can replicate, emphasizing playing offense in competitive environment.

Cathy Smith emphasized ROIC alongside durable growth as the two key shareholder metrics. Acknowledged current store returns are below historical standards and committed to improving through zero-based budgeting.

Brian cited flexibility across small/medium/large formats with multiple access points (drive-thru, cafe, mobile), noting strong economics in Texas and Southeast markets.

Niccol gave concrete barista feedback (brewed-coffee flow, staffing, cafe seating) and drew Chipotle parallels on partner commitment; a direct, substantive answer.

CEO attributed McOpCo underperformance to adding labor while being overly conservative on pricing. Noted these are fixable issues, with broader franchise vs. company ownership evaluation ongoing.

Chris said mid-single-digit growth is available with upper income consumers in 2026 while low-income remains pressured; premium opportunity in beverages, chicken and burgers.

Chris said he won't predict convergence but MCD will not cede value leadership after learning its lesson this cycle.

Chris acknowledged franchisee unease mirroring consumer concerns, cost inflation most pronounced in Europe, but said unit development pipeline remains strong globally.

Chris described new category team structure (beef, chicken, beverages) to compete vs specialists; Ian cited all-time high US CSAT.

Chris pointed to a muted broader market with low-income consumer down double digits; declined specifics on new product launch timing.

Direct: AGM role deepens the role-ready leader bench and strengthens execution across all dayparts; rollout expected complete by mid-year.

Attributed the shortfall to macro and the tough 2-year stack, denied structural issues or significant missteps, and reiterated no heavy discounting.

CFO credited strong new-restaurant openings and high AUVs for absorbing the softer comps, said no outside investments were made this quarter yet margins still met expectations, and reinvestment is continually evaluated.

Tricia credited AUV gains for margin expansion but emphasized reinvestment in wages and restrained pricing (15% since 2019 vs 23% CPI). Direct.

CFO attributed the softer 2025 growth to anniversarying outsized 2024 results and continued investment, insisting the long-term algo is intact.

Russell noted non-pizza QSR was not a significant impact on Domino's Q1 results. Emphasized giving customers value on items they actually want (BDE's genius is customization). Value environment will persist all year. Confident in resources and franchisee resources to compete. Would have called out non-pizza QSR impact if material.

Russell noted DPE closures (~200) mostly behind from Q1. China targeting 300 stores this year, India 250. These two markets expected to be majority contributors to future growth. Sandeep added ex-DPE markets tracking to plan in both 2025 and 2026. DPE opening plan requires visibility on paybacks.

Russell confirmed H2 DoorDash growth but declined specific ramp trajectory. On rewards, noted lower redemption thresholds (20/40 pts) drive higher ticket as customers add side items.

Russell rejected fatigue narrative; pizza category grows 1-2% annually. Domino's at ~24% share vs higher concentrations in burgers/Mexican/coffee. 40%+ of competition is locals/regionals who can't sustain value.

Russell argued delivery-vs-delivery value remains strong (two pizzas at $6.99 each = 16 slices), and that delivery softness is mainly customers switching to eating at home, not to competitors.