Operator: Thank you. One moment for our next question. And it comes from the Nick Setyan with Wedbush. Please proceed.
Nick Setyan: Thank you. We set some strength in both the commissary margin and international margin. Just wondering if there’s anything sort of one time in international margin, for example, that we should be aware of. And whether that’s sort of – how should we think about that international margin as the year progresses? And any reason why the commissary margin shouldn’t stay at this level or even go higher as the year progresses?
Rob Lynch: Well, I’ll remind you, our commissary margin is a fixed margin. So, on an annualized basis, we have a fixed margin of 4% on the commissary. The reason why it’s higher year-over-year is because sometimes there are some timing issues around kind of last year we were chasing the increase in cost with increased prices out to the franchisees for the ingredients. And so, we weren’t able to make the full margin in Q1 last year. This year is a little bit of a different dynamic. But for the full year, you should always expect that we’re going to deliver about a 4% margin on that business. On the international side, it’s really about just tightening the belt and making sure that we have the right operating model to operate that business.
I think our leadership — we put some new leadership in to that business over the last year. And they’re very conscientious on their performance relative to their cost structure. And I think they’ve just been really great about doing the things necessary to hold costs down. The other piece is consistent with what I disclosed on the commissary in the U.S. We own the commissary in the UK. And last year, as we saw this kind of hyperinflation. We weren’t really able to pass that inflation onto the franchisees as quickly as we needed to. So, there was a lower rate of margin during Q1, and I think even into Q2 this year that dynamic doesn’t exist. So we’re delivering a higher margin year-over-year in the UK Commissary. So those are I think the three key drivers.
Nick Setyan: Thank you.
Operator: Thank you. And this concludes our Q&A. I will pass the call back to management for any final remarks.
Rob Lynch: So, thanks everyone for the call today. It’s obviously a unique time that we’re all working through. So, our intent is to be as parent as possible on the business and on the industry because you guys can do your jobs. But to summarize, I just want to say, I’m thankful to our teams and our franchisees for continuing to deliver solid performance. We lap Q1 of 2022, which was our highest sales volume quarter in history, which lap Q1 of 2021, which previously had been the highest sales volume in history. So these are big laps for us. And the ability to lap flat or positive is indicative of the strength of the sales in the restaurants So, I’m thankful for our teams to continue to deliver these solid results. I’m also confident in and excited about 2023 and beyond.
We have forecasted increased comps, forecasted some decreased cost and we’re continuing to be strong developers throughout the system, throughout the globe despite some of the challenges that everyone highlights in the industry with development and construction at this point. And obviously, with kind of the macroeconomic and interest rate environment that’s going on. So I’m very bullish about the future. I couldn’t be more proud of the of the team and the and the way everyone’s working together. And so, I just want to thank you all for your continued support, and thank you for your time today.
Operator: Thank you. And with that ladies and gentlemen, we conclude today’s conference. Thank you for participating. And you may now disconnect.
