Operator
Good, Dan. Thank you for standing by. Welcome to Papa John's first quarter 2026 earnings conference call and webcast. At this time, all participants are on a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star 11 on your telephone. You will then hear an automated message of icing your hand is raised. To withdraw your question, please press star 11 again. Please be advised, today's conference is being recorded. I would like to turn the conference over to your speaker today. Heather Hollander, please go ahead.
Good morning, and welcome to our first quarter 2026 earnings conference call. Earlier this morning, we issued our earnings release, which can be found on our Investor Relations website at ir.papajohns.com under the News and Events tab or by contacting our Investor Relations Department. Joining me on the call this morning are Todd Pentagor, President and Chief Executive Officer, and Robbie Thanawalla, Chief Financial Officer and President of North America. Comments made during this call will include forward-looking statements within the meaning of the federal securities laws. These statements may involve risks and uncertainties that could cause actual results to differ materially from these statements. Forward-looking statements should be considered in conjunction with the cautionary statements in our earnings release and the risk factors included in our SEC filings. In addition, please refer to our earnings release and our Investor Relations website for the required reconciliation of non-GAAP financial measures discussed on today's call. Lastly, we ask that you please limit your questions to one question and one follow-up. And now, I'll turn the call over to Todd.
Thank you, Heather, and good morning, everyone. During the first quarter, we continue to execute our transformation plan to be the best pizza makers in the business. I am proud of the work our team is doing to navigate the current consumer backdrop and highly promotional QSR marketplace. Although certain competitors have outlined their strategy to compress restaurant margins in the sector, we are taking a disciplined approach, executing a balanced transformation that extends well beyond price, meeting customers where they are, while improving four-wall margins, elevating our fleet, and supporting our franchisees to build this business for the long term. While transformation work is neither linear nor instant, we are confident that the progress we are making in papa john's transformation combined with the strength of our brand and quality of our pizza will feel profitable growth and value creation over the long term for all our stakeholders now turning to our quarterly results in our international business results continue to be strong we delivered 3.6 percent comparable sales growth marking six consecutive quarters of positive comps, driven by the benefits of our transformation initiatives. We continue to see strong performance in our focus markets in the first quarter, including Europe, the Middle East, and Asia Pacific. In the UK, comparable sales growth accelerated to 11% compared with 7% in the fourth quarter, driven by strong operational execution, an enhanced customer experience, and increased media investment that is strengthening our brand awareness and foundation for growth in the market comparable sales in the Middle East increased 9% driven by sustained transaction growth while Asia Pacific increased 5% reflecting continued strength in Korea supported by product innovation partnerships and holiday demand as anticipated North America comparable sales ended the first quarter down mid single digits primarily driven by declining orders, which were pressured by lower new customer acquisition. During the quarter, we continued to see resilience in core pizza and customers ordering multiple pizzas, with flat year-over-year pizza volumes, excluding two weeks that were impacted by severe weather, and pies per order increasing 5% versus last year. Our loyalty customers continued to be a force for the company, and we added nearly 1 million new loyalty members in Q1. We also saw growth among our frequent and super-frequent customers, and combined, these tiers make up approximately 30% of our customer base. Our loyalty customers are our most valuable customers, generating 5% higher ticket per order and ordering twice as often as non-loyalty members. This upside was offset by pizza mix shifting to smaller non-specialty pizzas, resulting in low single-digit declines in overall pizza sales, excluding severe weather impacts. Outside of pizza, comparable sales were pressured by declines in size and desserts and lower new customer acquisition compared with last year. We are working with urgency to address areas of opportunity and capitalize on areas of strength through our transformation work. our two largest opportunities to gain share are building on our improved value perception and leveraging our rebuilt innovation pipeline to win new customers elevate our pizza order mix to more premium pizzas drive add-ons and expand our total addressable market starting with our value proposition we are meeting customers where they are with popular offers including buy one pizza get one free, $9.99 three-topping, and our PAPA pairings. Leveraging our CRM platform, we meaningfully increased engagement with existing customers, which translated into higher subscriber order frequency in Q1. We are also leaning into innovation because newness is critical to winning new customers. We've rebuilt our pipeline to deliver more frequent, compelling new product launches and in the first three months of 2026 alone we introduced two new menu platforms pan pizza and oven toasted sandwiches these launches elevate our pizza mix and expand our total addressable market our first innovation of the year was pan pizza which launched at the end of january and filled a critical menu gap developed through extensive consumer research and rigorous testing, our pan pizza is truly a best-in-category product. Since launch, it has delivered strong repurchase rates, and we plan to build on this momentum throughout the year in North America by driving trial and awareness. We also have plans to expand pan pizza into several priority international markets. Next, we introduced oven-toasted sandwiches at the end of March, opening an entirely new category for Papa John's. This platform features three chef-crafted handhelds, each available at an accessible price point. We integrated sandwiches into our Papa Pairings value offer, where they've mixed well since launch. We're encouraged by the early results we're seeing, with sandwiches driving participation across both day parts, contributing to sales expansion, and already exceeding sales of Papa Diaz, without complicating our make line. The feedback from our restaurant teams on the introduction of sandwiches and the removal of Papa Diaz and Papa Bites has been overwhelmingly positive. Not only have we removed operational complexity, but we are seeing benefits to the brand as we introduce new menu items outside our core pizza. Great pizza deserves great pairings. Part of our 2026 innovation agenda is crafting compelling side items at accessible price points to encourage customers to look beyond the center of the plate and drive higher ticket, increase sales, and improve four-wall margins. We introduced cheesy garlic bread in April, a new value side baked on the same tasty ciabatta bread as our sandwiches. This operationally friendly side item is designed to be a strong add-on, increase check, and expand on pizza sales. We're also unlocking new sales layers to expand our top line. I'm excited to share that this summer, our iconic Papa John's garlic sauce will be available for retail purchase across 7,500 distribution points at Walmart, Kroger, Elbertson Safeway, and other leading retailers across the country. This launch builds awareness by extending our brand beyond our restaurants and gives customers a convenient way to add Papa John's signature flavor to their everyday meals. Finally, we're partnering with iconic global brands to introduce Papa John's to new customers in powerful and highly relevant ways. I'm excited to share that Papa John's has announced a global collaboration for the theatrical release of Toy Story 5 on June 19th, the first time Disney and Pixar have collaborated with a pizza brand for a Toy Story movie release. we're fully leaning into this activation with new product innovation custom packaging and a special custom animated spot created by the team at Pixar animation studios at participating international restaurants customers will also be able to receive an exclusive toy story 5 collectible popper rewards members can also join in on the fun and earn Papa dough through our new toy story 5 themed in-app game it's part of the collaboration we're also launching a new lineup of Toy Story 5 personal pizzas. Looking ahead, we believe that our individual 8-inch pizza can become a new innovation platform with a compelling price point to drive customer acquisition. We're thinking big with our innovation strategy, and all our newest offerings, pan pizza, oven-toasted sandwiches, and our Toy Story 5 activation, including our single-serve pizza creations, will also be available across select international markets. our international innovation continues to raise the bar with the uk launching an on-trend artisanal sourdough pizza last month backed by consumer-led insights this lighter thinner more premium pizza is designed to attract new customers and further elevate the papa john's brand a reimagined innovation pipeline is fully stocked and purpose-built to win new customers elevate our pizza lineup, drive add-on sales, and expand our total addressable market. In addition to our compelling product innovation, we're sharpening our marketing message to drive greater impact at the local level. As we discussed on our last earnings call, we reinstated advertising co-ops across the U.S. to improve local targeting and relevance. While still early, 50% of our U.S. restaurant system is now supported by local co-ops across more than 50 markets with our re-established co-ops and sharpened value proposition our local operators are aligning around a unified market strategy accelerating our ability to win at the local level and driving benefits that will build throughout the year investing in technology in our tech stack is essential to delivering a seamless customer experience across our digital assets and own channels strengthening customer connections and driving operational efficiency see. For example, we have now made to-the-door delivery tracking a brand standard across our U.S. restaurant system. Through our app, customers can see real-time updates on their order, including its progress through the bake process and when it is ready, creating greater transparency and confidence in their experience. We continue to build on our partnership with Google Cloud to transform our digital ordering experience with Google's food AI this partnership is highly customized to Papa John's and grounded in a customer first approach focused on solving real customer problems and removing friction from the ordering journey across our US system we rolled out advanced voice and group ordering enabling customers to order using voice and text inputs significantly reducing friction and the order process our organic ordering technology further enhances the customer experience by applying the best deals and enabling high-speed and seamless reordering for proper rewards members together these innovations underscore our commitment to leveraging technology to make the customer experience even more seamless we are pleased with the early results showing faster ordering and higher conversion rates as part of our ongoing efforts to improve workflows across our US restaurant operations we began piloting our new POS solution and our first restaurant in April our new power POS is designed to simplify restaurant operations by bringing inventory management make line operations and labor inventory and restaurant management systems onto a single integrated platform it will help us also innovate faster through improved SKU management and faster deployment of menu changes across our restaurant system this modernized POS solution will equip our operators with more actionable insights enabling them to run more efficiently while delivering a better experience for our customers designed to utilize existing hardware it minimized implementation expense and accelerates deployment across our restaurant fleet we continue to differentiate our customer experience across every demand channel to support top-line groups. As of the end of the first quarter, we are approaching 42 million loyalty members, and year-over-year loyalty redemption sales continue to grow. Leveraging our robust CRM platform, we are engaging customers more frequently and using targeted, personalized communications across email, push, and SMS to drive incremental visits and deepen engagement. Our restaurant general managers and their teams are hard at work driving a more consistent experience in our restaurants. Ravi will share more about their progress in a moment. Finally, we continue to partner with and evolve our franchisee base. Our efforts to optimize our North American supply chain and reduce overall costs to serve are gaining momentum on a path to unlocking the full potential of our vertically integrated model. We captured $7 million of benefits in the first quarter and are now on track to realize at least 25 million of these savings this year we are confident that we will achieve at least 60 million of North American system-wide supply chain productivity opportunities equating to at least 160 basis points of four-wall EBITDA improvement by 2028 for both company and franchise restaurants in total we expect to generate at least 200 basis points of four-wall EBITDA improvement for both company and franchise restaurants over the medium term driven by supply chain savings, operational efficiency, and restaurant portfolio optimization. In summary, while the consumer environment has impacted the pace of our transformation, we are managing through these short-term headwinds and building for the future. We are confident that we are taking the right actions to transform the business and set Papa John's up for long-term success. We are making progress and are excited about the opportunities ahead. And with that, I'd like to turn the call over to Robby.
Speaker 8
Thank you Todd and good morning everyone. I will begin by sharing an update on the progress we've made in the first quarter to drive four-wall profitability across our restaurants, elevate our service model, and optimize our restaurant portfolio. I'll then provide a summary of our first quarter financial results and conclude with our outlook. Improving four-wall profitability remains a core pillar of our transformation. We have a clear line of sight to delivering at least 200 basis points of store-level profitability through supply chain productivity, labor optimization, market optimization, and dedicated coaching and financial incentives for our franchisees. As Todd chaired, we're on track to achieve at least 160 basis points of four-wall EBITDA improvement through our supply chain productivity work. with 24 basis points of margin improvement captured to date through Q1. We're also encouraged by the early results of our labor optimization efforts, supported by new tools that more accurately forecast sales and help our restaurants align staffing with intraday demand. While it's still early, we're seeing meaningful labor productivity gains and improved operation scores in our tests. We're also leveraging new AI capabilities, including our Google Cloud partnership, to further reduce costs and enhance customer service. Optimizing our restaurant portfolio is also a key lever to improve profitability and overall fleet health. We are making progress on our previously announced efforts to address locations that are failing to meet brand standards, lack a clear path to sustainable improvement, or represent an opportunity for strong sales transfer to nearby restaurants. These sites, primarily decade-old franchise units with AUVs below 600,000, predominantly generate negative EBITDA. During the first quarter, we closed 44 of the 300 identified locations. Early results are encouraging as we have observed a strong transfer of sales to neighboring restaurants these results along with the demonstrated success of our international transformation underpinned by a focus on priority markets and strategic closures give us confidence that our strategy will enhance our competitiveness and support our efforts to increase north america market share addressing low volume restaurants or operational improvements can drive significant value. Currently, there is a 400 basis point gap in comparable sales performance between restaurants in the highest quintile of operations scores versus the lowest quintile. To close this gap, we are planning to provide certain franchisees with dedicated coaching and financial incentives to elevate operational execution, boost sales, and enhance unit economics. turning now to our first quarter results please note that all comparisons and growth rates referenced today are compared to the prior year period unless otherwise noted system-wide restaurant sales were 1.2 billion dollars down 3% in constant currency as higher international comparable sales or more than offset by lower comparable sales in North America as Todd shared our international teams delivered another exceptional quarter with comparable sales growing four percent our international focus markets continue to outperform as we build momentum through new menu offerings aggregator expansion and improved brand and marketing performance total consolidated revenue for the first quarter was 479 million dollars down eight percent as lower revenue at domestic company-owned restaurants, North America Commissary, and all other business units was partially offset by higher international revenues. Domestic company-owned revenues decreased $31 million, primarily due to re-franchising of 85 corporate restaurants in the fourth quarter of 2025, in addition to lower comparable sales. Revenues at our North America Commissary segment decreased $18 million primarily due to food cost deflation partially offset by higher pricing and all other business unit revenues decreased $4 million given by lower digital fees and advertising funds revenue as a function of lower sales partially offsetting these declines was a $4 million increase in international revenue consolidated adjusted EBITDA decreased $2 million to approximately $48 million impacted by pressure flow through due to lower sales and QCC volumes in North America and increased food costs in the supply chain, which will be covered by pricing in subsequent quarters. Partially offset by improved performance in our international markets, lower overall G&A spend due to our biannual franchise e-conference, which did not repeat this year as well as lower supplemental advertising and lower cost of sales due to commodities deflation and lower volumes to our restaurants as todd stated we recognize approximately seven million dollars of benefits or approximately 20 basis points of full wall margin improvements related to our efforts to increase efficiency and reduce our overall cost to serve at our north America commissary during the first quarter. North America commissary segment adjusted EBITDA margins were 5%, a decline of 230 basis points, primarily reflecting franchisee food cost subsidies, increased food costs, which will be covered by pricing increases in subsequent quarters, and lower volume during the quarter. Domestic company-owned restaurants delivered four-wall EBITDA of $16.6 million and a four-wall margin of 11.9%, an improvement of 140 basis points. Importantly, four-wall margins have remained resilient, supported by our benefits of our transformation work and our disciplined approach to sharpening our value proposition. Turning to our balance sheet, at the end of the quarter, our total available liquidity was approximately 498 million dollars and our covenant leverage ratio was 3.3 times as we continue to maintain a strong balance sheet turning now to cash flows net cash provided by operating activities in the first quarter was seven million dollars free cash flow was an outflow of six million dollars compared with the last year's cash inflow of 19 million dollars primarily reflecting lower net income and a more normalized incentive payment inclusive of the company's enterprise transformation plan now turning to our 2026 outlook as discussed we are making progress advancing the actions we're taking to transform the business we've taken steps to accelerate the top line throughout the year through an enhanced value offering our rebuilt innovation pipeline and improved mix of national and local media through our re-established local co-ops. We're also driving efficiencies across our business with our supply chain optimization and cost savings initiatives and evaluating refranchising actions, which are progressing our business towards an asset-like model with higher free cash flow. With that in mind, we are reiterating our 2026 financial and operational metrics. For 2026, we expect global system-wide sales to range between flat and low single digit declines for north america we still expect comparable sales to be down two to four percent our guidance reflects both the benefit of our innovation pipeline and enhanced marketing strategy and considerations around the current cautious consumer environment april north american comparable sales are trending slightly worse than Q1 on a year-over-year basis, but consistent with Q1 on a three-year stack. We expect to build top-line momentum in the second half of the year with sequential improvements versus the first half as we benefit from our product innovation, marketing co-op activations, and meaningful brand collaborations, and strengthen aggregator marketing strategy. We expect that North America quarterly comps will be relatively consistent for the remainder of the year on a three-year staff. Internationally, we continue to build on our transformation momentum and still expect comparable sales to increase between 2% and 4%. Our outlook reflects current geopolitical and consumer conditions and will continue to monitor developments closely. Currently in negotiations to re-franchise 29 restaurants in the southeast, and we expect to close the transaction in the third quarter of 2026. Consistent with the prior expectations, we expect that this transaction will reduce 2026 consolidated revenues by approximately $9 million, including the impact of eliminations and benefit adjusted EBITDA by a prior 2026 financial guidance. We're on track to reduce our company-owned restaurant ownership to mid-single digits of the North America system, and we expect to unlock growth opportunity add an update on future earnings calls as these transactions. For 2026, we continue to expect consolidated adjusted EBITDA to be between 200 and 200. We now plan to invest approximately $18 million in supplemental marketing and franchisee subsidies strategy in this year's reinvigorated 26 consolidated adjusted EBITDA dollars of G&A savings. We now have line of sight to achieve at at least $30 million of total cost savings by the end of 2027. We also expect that stock-based compensation will be approximately $5 million per quarter. Consistent with our prior guidance for non-operating expense items, we expect that interest between $35 and $40 million, adjusted DNA between $70 and $75 million, and capital expenditures between $70 and $80 million. Expect our 2026 GAAP effective tax rate to be in the range of 30 to 34. Finally, we expect diluted shares outstanding of approximately $33 million. Turning to restaurant development, we're on track to open between 40 and 50 gross new restaurants in North America in 2026, having opened eight restaurants in the first quarter. We continue to expect 200 restaurant closures in North America. internationally we expect to open between 180 to 220 gross new restaurants in 2026 with closures representing five to six percent of their international so you need to execute on our transformation efforts to deliver a better customer experience accelerate sales improve restaurant level profitability and move to a more asset light model and become a more nimble organization to deliver value creation for all of our stakeholders with that we'd like to open the call up for any questions you may have thank you ladies
Speaker 0
and gentlemen if you have a question or comment at this time please press star one one on your telephone if your question has been answered you wish to move yourself from the queue please press star one one again we'll pause for a moment while we compile our Q&A roster our first question comes from Brian Bittner without time where your line is open hey thanks good morning just Question on the same-store sales guidance, as we look through the rest of the year, your comparisons don't get much easier for the rest of the year until the fourth quarter, but you are baking in a big improvement from the first half of the year. And I'm just curious why maybe not de-risk the guidance a bit. I know you have a lot of initiatives to bend the trend in the second half of the year, but why not de-risk the guidance a bit? And why, Ravi, should the three-year trend be the right way for us to model comps as the year unfolds? Just any other color you can provide on three-year trends being the right metric?
Yeah, Brian, I'll start and see if Ravi has anything to add on. You know, if you start to think about where our year-over-year comparisons start to soften and lapping over some of the competitive pressure from a year ago, the back half, not all the way to the fourth quarter, starts to get a little bit easier. But what we really wanted to look at is how's the business normalized with all the choppiness over the last couple of years. So very clear that our business, our transactions, how we're actually forecasting the outlook, and we think we've de-risked it with really providing guidance that it remains fairly consistent on a stacked three-year basis. If you think about where we stand with all the second half of the year initiatives, We've launched some compelling innovation. We've got Pan in the World. It's mixing really well with existing consumers. The opportunity is to continue to wear it in and recruit new with that great product. We've got sandwiches in play, again, mixing well with existing consumers, plays to refresh our pop-up pairing offering, so great value with that in it. And we're really excited about our partnership with Toy Story 5 and driving 8-inch pizzas with some news as we work to compete in the back half of the year. We'll continue to work to make sure we got our mix well so we compete on third party as the year progresses. But we think it's a prudent and realistic outlook for the year with lots of initiatives to support it. And that's considering the competitive and the consumer landscape that we're faced with at the moment. Anything else you'd say, Robbie?
Yeah, and Brian, you asked the question of why the three years sat. It's one, like, as we looked at month over month.
Operator
One moment for our next question. Our next question comes from Alex Leggo with Jeffries. Your line is open.
All right, good morning. Just wanted to ask on some of the new menu categories with sandwiches and pan and then, I guess, the personal pies. and just ask about your confidence that all these changes don't drive too much complexity. I realize, you know, you're going to pull out the Papadillas advice, and that helps, but maybe you could kind of walk us through and help envision what changes happen that keep this pretty simple to execute on your end.
Yeah, no, it really starts with a focus on operational excellence and delivering great product with everything we do, and we really stepped back as we started to introduce all these new products to make sure that we set our restaurants up for success. It starts with great training and making sure that we're ready to deliver on the promise when the new customers show up. What we really wanted to do is ensure that pan was designed to be best in class in the industry, but be able to do it with a one pass through our oven. And that's different than what we've done in the past. We did all the oven calibration work. We're able to make a great pan pizza simply with one pass to the oven. That takes the complexity out of how we've done it relative to the past. You know, sandwiches is a very easy build with the oven recalibration, a great one pass. The ciabatta bread cooks really well in the oven and a lot simpler than what we were doing with Papa Diaz, really getting into that handheld occasion, you know, taking Papa Bites out. Those two things, Papa Dia, Papa Bites, were our biggest rhythm breakers in the restaurant and really distracted from making great food day in and day out. We do make small pizzas today. So as you start to think about the simplistic builds, the unique builds that we're going to have that go along with Toy Story 5 at the 8-inch, that is a very easy build and can be managed quite nicely within our restaurant. So I think we've really set our teams up with less operational complexity and operational focus to to really deliver great products with the innovation pipeline we've had we've taken some of the friction out of our restaurants today to be able to do that thanks for the color thanks one moment for our next question our next question comes from Todd Brooks with benchmark stone X your line is open a Great.
Thanks for taking my questions. First, I was wondering, Ravi, can you decompose the same store sales between check and traffic? I'm just trying to get a sense of this more competitive approach to value as innovation ramps, kind of what was the drag on check that was part of that down 6.4% North American comp?
I feel confident with the incoming of Toy Story 5 and that partnership, it can address that one pie order. Our challenge really is, you know, people are managing their overall check, right? And we're still seeing some of the leakage in size. We've now got cheesy garlic bread as a compelling price point side. We're going to have to continue to make sure sides are relevant. That's the opportunity to allow us to drive some check and mix up, but haven't planned for that with the tough consumer environment. So our guidance reflects where we stand today.
Thanks for that, and I'm sure there was a weather reality that hit the same store sales Can you size that for us, and should we be normalizing for that when we're thinking about the three-year stack trend or just build off of the trend that we saw with the weather impacts this quarter? Thanks.
Yeah, so weather impact was about just under 40 basis points of impact for the quarter, But what I would say is build off of the three-year staff.
Operator
We're for our next question. The question comes from Sarah Santori, Bank of America. Your line is open.
Hey, good morning. Isaiah Austin, on for Sarah. Thanks for the question. Just in the line of questioning about competition, where do you guys see the competition coming from? Just because when you think of the three large major chains, all seem to be struggling. So, you know, is it national, regional? Maybe there's a resurgence in local. Just curious on your thoughts on that.
Yeah, I think if you look at where overall competition, clearly the pizza category has been, you know, very promotional, not just, you know, where we participated at times and tried to do it smartly to make sure that we were managing margin while meeting the consumer where they're at. But, you know, two of the larger competitors have been aggressive on price, but the total QSR industry has been very aggressive on price. If you start to look at some of my past life, the burger players, others with scale, there's a lot of promotional pressure out there to really try to make sure they're meeting the consumer where they're at. And we're going to pick our spots where we need to do that. We're going to leverage innovation to balance it. We're going to take a long-term approach to make sure we set our business up for long-term success. But we are conscious of where the consumer dynamic is with some of the headwinds that we're seeing with gas prices and impacts on discretionary income. But we also know we're going to have to play a long-term game to really set this brand up for sustainable long-term success. And we're going to use the opportunity to continue to build a really strong foundation, whether that be operationally, whether that be upgrading our tech stack, whether that's continuing to rebuild our momentum on innovation and importantly making sure that we've got a local co-op environment set up so we can compete as a unit at the local level there is you know regional and and local pressures out there but we do think the co-ops getting reestablished will help us compete at that level quite nicely as the national calendar balances with our local calendar great thanks and just as a follow-up thinking about a third party
versus first party delivery is third party still outperforming and just if you guys can broadly speak about your performance on third party do you feel like you're still taking share on platforms or are you more growing in line with aggregator demand third party is still out for out and all see there
Operator
are no more questions in the queue I will now turn the call back to Todd Pentagor for closing remarks.
Well, thank you everyone for joining the call this morning and for your continued interest in Papa John's. I'd like to extend a special thanks to our team members and our franchisees for their continued commitment to serving our customers. We are focused on continuing our transformation work to be the best pizza makers in the business and generate profitable growth and value creation for all of our stakeholders. Have a great day, everyone.
Operator
Thank you, ladies and gentlemen. That's This concludes today's presentation. You may now disconnect and have a wonderful day.