WEN
#Thanks, <UNK>.
So we've provided this a couple of times in the past.
So if you think about ---+ by the time we fast-forward to 2017, within our P&L you'll see $170 million of gross rental income across all elements that have generated and about $90 million of net rental income.
What we have said for the second quarter ---+ our net effect on royalties, franchise fees, netting out rental income, rental expense in this whole lot year-over-year helped us with $11 million.
So on the top line, the revenue side, so rental income was up $19 million year-over-year; but then you need to take into account in other operating expense, basically, the rental expenses ---+ you can net it off.
The net impact is $11 million, as we have disclosed in the ---+.
And those are deltas or absolutes within the quarter.
So you will have to annualize that on our step up towards that ultimate number.
You know, as Todd said previously, there's a lot of levers we're going to pull to get to this margin target.
We have, obviously ---+ as we are finishing system optimization, we are kind of refocusing ourselves in terms of what's the next big thing we're going after.
And obviously EBITDA margin of 38% to 40% is one of our key Company goals going forward for 2020.
Do we have an internal revenue forecast for it.
Yes, absolutely.
Do we ---+ going to play with all of the components that Todd talked about, from rental income over SRS growth, restaurant development, international growth, and the like.
Yes.
Is it a little bit too early to talk for us.
Do we feel ---+ are we feeling confident that 38% to 40% is the right target range for us.
Absolutely.
And that's reason why we kind of put it out.
We are happy with the progress, where about 70% of our system is converted to all-Aloha.
We are obviously on track to finish most of it by the end of the year, and we can't wait to have one point-of-sale system, because obviously for us as franchisor, we can give obviously much better ---+ get much better insights and analytics and help the whole system with findings and the likes.
It is conversational ordering, so it does help the register operator to try to create a better customer experience because of that.
It makes it easier to train as we have turnover in the restaurant.
And most importantly, that does become the platform, when we get all of this ---+ the whole system ---+ on a common point-of-sale at the end of this year, to really go full bore on mobile order and mobile pay.
Definitely first time we put this number out.
You have us heard ---+ talked previously about an EBITDA margin of 35%-plus.
We're basically fine-tuning a little bit what 35%-plus actually means.
And we think 38% to 40% is the right target for us.
As I said previously, it's a little bit too early for us to give kind of component-level guidance on how we get to it.
So it's a little bit to a later date, when the time is right for us to do this.
Think about early of next year.
Some gut and some science along the way.
So there's a lot of gut feel on what we're seeing and what we're hearing anecdotally in the restaurants.
We do get a lot of customer feedback to make sure that we are appropriately priced across our whole menu.
And the great news is, as you think about what we talked about on our brand health metric, worth what you pay, we're making great progress on that front.
But that's really generated on the heels of the 4 for $4.
And what we need to do is make sure that the customer feels that our core and LTO items are appropriately priced for the value that we are providing.
And that's not just what you put into the food, but that's what you create as a total customer experience to make sure they feel good, that it's worth what they pay.
Hi, <UNK>.
Thanks for the question.
No, we are very happy with the progress, as you know.
We are now at about 26% of our system Image Activated.
That compares to 24% at the end of the first quarter, so we're making steady progress.
We are actually seeing a little bit more lift than what we previously contemplated.
We previously said, like, well, 5%, there and thereabouts.
We are actually seeing lifts more in the 6% range, which, obviously, from return point of view for our investors ---+ for our franchisees is much better from a return point of view.
So <UNK>, so we're seeing the 5% to 6%s on the refresh option.
To the lower investment option, which is about $300,000, that 5% to 6% is stronger, as GP said, than we had earlier anticipated.
If we are doing a full reimage, we're still seeing those lifts of high single-digit to low double-digit.
And if you look back after all of these classes on the sustainability, we do see great sustainability.
So what we've done is brought in lapsed and new customers, created a new higher AUV base.
And we continue to see those restaurants then grow in line with the rest of the system.
So we have won their hearts and minds, and we continue to bring them back.
And we've got enough long track record now going back to 2011, so we've got a lot of data on that.
We'll provide more guidance as a subset of our complete guidance when we set up 2017.
But if you look out at the beef markets and the recent performance, all the fundamentals look good.
Input costs are down and continue to look like they'll be down for a little bit of time.
The herds have been building.
So it does look like, especially on the beef side, that we could start to be in a little more stable environment, notwithstanding some drought or something that's unforeseen at this point in time.
