“But despite ongoing headwinds, we guide full-year 2023 restaurant margins to reach 19.25% to 20%.”

In context

“l 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 levels, and that's largely driven by lower sales. While this year, we expect to outperform that historical pre-COVID margin seasonality, given the strong success we were seeing on our strategic priorities, beef inflationary risks are real and present a headwind to our profitability through the rest of the year. We expect this in addition to rolling off that significant October '22 price inc”