“Our commitment is to target lowering build costs next year by about 10% for the overall class.”

In context

“dle here will take time, given long lead times of design and buildout. But we have opportunity and a plan in place. We are optimistic it'll show strong results with future classes. We expect 2023 to be the high watermark for build costs, with the class currently tracking about 10% up year-over-year. Unfortunately, we've had a few very challenging projects that drove the majority of the overruns, while also building the highest mix of drive-throughs so far, and still working through elevated build costs and delays across the system. All this together had a heavy impact on our class. However, looking ahead, we are already seeing evidence that we have the right strategies in place to lower this cost materially next year and even further in the coming years as new prototypes come into design. Our commitment is to target lowering build costs next year by about 10% for the overall class. As we take down build costs and improve Shack level operating profit, we expect to continue to improve overall Shack returns well into the future. We've got the right plan in place and we're pleased to see progress taking root as we continue the evolution of Shake Shack. We remain one of the fastest-growing publicly-traded restaurant companies and we're growing profitably while strengthening our brand and our opportunity ahead. I'll now hand it off to Katie to share more about the details of the quarter and expectations for the rest of the year. Katie Fogertey: Good morning, everyone. We are pleased with the results of our second quarter and our continued execution against our 2023 strategic plan. We expanded our restaurant margins by 240 basis points year-over-year to 21%, a function of”