“We expect to open approximately 75 Shack system-wide this year, about 40 of them will be domestic company operated, and approximately, 35 will be operated by our licensed partners.”

In context

“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 increase and ending the year with just about 2% price against the broad inflationary pressures we're seeing to impact our fourth quarter flow-through overall. However, all else equal, if beef inflation was consistent with last year's performance and consumer spending patterns remain strong, we see a path for our restaurant margin to exceed 20% for the full year. We expect to open approximately 75 Shack system-wide this year, about 40 of them will be domestic company operated, and approximately, 35 will be operated by our licensed partners. We guide 2023 G&A of $125 million to $130 million. Absent the 3.3 in legal and professional fees that are excluded from adjusted EBITDA in the first and second quarters. at the midpoint, G&A will be 11.9% of total revenue, approximately 75 basis points of leverage versus 2022 levels. Some other guidance points. equity-based compensation expense of approximately $17 million. Preopening of $17 million to $19 million, depreciation of $88 million to $93 million and adjusted pro forma tax rate, excluding the impact of equity-based compensation to be 16% to 18%. altogether, based on our performance so far this year, we are raising our fiscal 2023 adjusted EBITDA to $120 million to $130 million, representing approximately 65% to 80% growth year-over-year. And thank you, with that, turning back t”