“Our fourth quarter guidance reflects food and paper inflation to be up mid-single digits year-over-year driven by beef up mid-teens.”

In context

“r that we will lap the popular White Truffle Burger LTO starting in February. This was our most expensive LTO ever and drove traffic, so lapping it will likely be a headwind to our traffic price and mix. We have a strong LTO lineup planned for next year. However, we’re going to be keeping an eye on this tougher compare. We’re guiding 4Q restaurant margins to be approximately 19%. Our guidance for the fourth quarter is a material improvement from historical seasonality and reflects the least amount of menu price we have carried since early 2021 despite ongoing inflationary pressures. Historically, our fourth quarter average weekly sales have been the lower end of seasonality and Shack-level operating profit margins have compressed by approximately 300 basis points versus the third quarter. Our fourth quarter guidance reflects food and paper inflation to be up mid-single digits year-over-year driven by beef up mid-teens. We expect labor inflation to be in the low-single digit range year-over-year. Our full year 2023 guidance calls for total revenue of approximately $1.08 billion, growing about 20% year-over-year, Same-Shack sales to grow by mid-single digits with high-single digit price, we expect licensing revenue to reach $40.5 million to $41 million, restaurant margins of 19.7% to 20%, that’s 220 basis points to 250 basis points improvement from last year’s levels. We guide 2023 G&A of $125 million to $128 million. This is absent the $3.5 million in non-recurring costs that are excluded from adjusted EBITDA year-to-date. At the mid-point G&A would be 11.7% of total revenue that’s approximately 90 basis points of leverage versus 2022 levels. Other guidance points, we are lowering our equity-based compen”