Brian Harbour: Yeah. Good morning. Thank you. I just wanted to ask about some of the kind of cost trends that your franchisees are seeing. Obviously, we can kind of see your company store margins. Be curious if that’s also true for a lot of your franchisees on food cost? Is some of that favorability starting to show in other markets? Or do you think that’ll be more about 2024 as they sort of past weekend placements?
David Gibbs: Yeah, good question. Our focus is on ensuring that we always providing strong relative value to our customers. And that our franchisees always have strong unit economics in the long run. That second piece of course is a key driver of our differentiated development capability. If we think about where unit economics are around the globe, they are still very strong. Now from a market-to-market standpoint, you’ve got puts and takes in terms of the timing of when inflation is hitting the market. The nature of it. In developed markets, we believe we’re past the point of peak year-over-year inflation. And that’s part of what David was mentioning in terms of a return to a more normal operating environment. In some emerging markets, that those inflationary ways were a bit delayed relative to developed markets.
But in all markets, we are using our scale to offset as much of those inflationary pressures as we can. We’re optimizing business model with the franchisees and of course, we use pricing as needed to help ensure the unit economics remain strong while still providing that strong relative value. You think about our development results in the quarter up to 1,025 units open. That’s the best evidence that unit economics remain strong. Our 3C franchisees continue to put their capital to work.
Jodi Dyer : Operator, we have time for one more question, please.
Operator: Thank you. Our final question today comes from the line of David Tarantino with Baird. David, please go ahead. Your line is now open.
David Tarantino: Hi. Good morning. My question, Chris, is on the G&A outlook. I was wondering if you could, I think you gave us an actual dollar number the last time. I was just wondering, if you could maybe clarify what that number looks like now with the higher bonus accruals? And then, I guess secondly, just as you think longer term about G&A, if you could just update us on your thoughts on where that should sit on a long-term basis as a percentage of system sales. That would be great. Thanks.
Christopher Turner : Yeah, thanks, David. Overall, on G&A, we take a lean philosophy. We talked about that before and that implies that we will invest in areas that drive long-term growth, help in the business and we’re going to be efficient on everything else. We came into the year that was – with a plan that was consistent with that philosophy. That plan is largely intact. But as we said in the back part of the year, we will see modestly higher G&A relative to that initial plan. And the primary driver of that is higher incentive comp owing to our strong performance. Of course, as you think about next year, that incentive comp resets each year. But that’s been the primary driver on the change in the plan. We talked earlier about the color on the back part of the year around Q3 looking similar to first half and then a year-over-year decline in Q4.
But net-net it’s on the full year we expect G&A leverage and of course, our long-term algorithm implies G&A leverage in the business. So, I think it’s – that gives you a pretty good picture of how we’re thinking about it and how the results are playing out.
David Gibbs: Thanks Chris and I’ll wrap up. I do want to thank everybody for being on the call and just reiterate, this was another really strong quarter for Yum! with widespread growth all brands contributing, system sales at all of our brands were 100 above algorithm and that 19% percent system sales number at KFC is something to be proud of. And we’re doing, we’re getting those results the right way. It’s all about the digital growth, the development, our franchisees being profitable, and a lot of that comes back to the talent that we have at Yum! I was pleased to announce this quarter that, Sean is taking over for Mark. Very few companies have that kind of talent in place to just step in and we know we won’t miss a beat and he’ll take the business to a higher level of Taco Bell.
I will share one fun stat with you if you haven’t done the math on this, just in the last two and a half years, we have added 10,000 new gross unit to the Yum! system. That’s nearly 20% of our stores were built in the last two and a half years. Do you think about our brands with 60 plus years operating history, but they couldn’t be more new and fresh to consumers and they couldn’t really be performing any better if you think about the results for the quarter. So, truly astounding. I want to thank all of our team members and our franchise partners that helped bring that growth to life every day. And thank you all for being on the call.
Operator: Thank you, everyone, for joining us today. This concludes today’s conference and you may now disconnect.
