“We expect to end of the year running at just a low single-digit price, which is in line with our more normal pricing patterns. And this will be a pressure to our same-Shack sales in the fourth quarter.”

In context

“line item, we would expect to fall below our approximately 20% restaurant margin guidance for the third quarter. We expect food and paper inflation for the third quarter to be up mid-single digits year-over-year. And we expect labor inflation to be in the mid-single-digit range year-over-year. Based on the strength that we've seen in the second quarter and our optimistic outlook for the third quarter, we're adjusting our revenue guidance and increasing our profitability targets for the full year 2023. So, for full-year 2023, our guidance calls for total revenue of $1.07 billion to $1.08 billion growing 18% to 21% year-over-year. Same-Shack sales to grow by low-to-mid single digits with mid-to-high single digits price. we are rolling off the high single-digit price we took in October 2022. We expect to end of the year running at just a low single-digit price, which is in line with our more normal pricing patterns. And this will be a pressure to our same-Shack sales in the fourth quarter. We expect licensing revenue to reach $40 million to $41 million. While we're starting to see some signs of food cost declining and inflationary pressures decelerating, most of our basket cost remains elevated and beef inflationary pressures remain highly uncertain until the end of the year. But despite ongoing headwinds, we guide full-year 2023 restaurant margins to reach 19.25% to 20%. This represents approximately 200 basis points to 270 basis points of restaurant margin expansion in this year. While we are not providing specific fourth quarter guidance at this time, we expect to see typical seasonality in both our sales and profitability from the third to the fourth quarter. As a reminder, prior to COVID, fourth quarter restaurant margins seasonally are lower than the third quarter lev”