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Speaker 2: We need to talk about the M and A deal
Speaker 2: that has come out in New York this morning. MRK
Speaker 2: to buy Turns Pharmaceuticals for six point seven billion dollars
Speaker 2: to grow in the blood cancer space. Michelle Davis is
Speaker 2: our senior deals reporter here in New York and is covering.
Speaker 3: This story for us.
Speaker 2: Feel like we should call it M and A Wednesday
Speaker 2: now because the deals no longer happen on Monday anymore.
Speaker 4: You know.
Speaker 5: It's because we have a deal show now, so of
Speaker 5: course that's why they're happening on Wednesday. But yeah, big
Speaker 5: deal for Merk today. It makes a lot of sense
Speaker 5: that they're doing this because they they're best selling drug,
Speaker 5: kay Truda, which contributed half of their last year thirty
Speaker 5: one billion dollars, is also the world's best selling drug
Speaker 5: is going off patent, so they really need to do
Speaker 5: M and A to replenish their pipeline turns is not.
Speaker 5: Its drug is not yet approved, but analysts are saying
Speaker 5: that in a few years, assuming it does get approval,
Speaker 5: it could have peak sales of several billion dollars. And
Speaker 5: so Mark, for Merk, it's a bet that at the
Speaker 5: end of the decade, around the same time that k
Speaker 5: Trude is going off patent, they will have this drug,
Speaker 5: you know, coming in to kind of help fill some
Speaker 5: of that hole.
Speaker 6: Mark.
Speaker 7: What are they saying about their M and A appetite?
Speaker 7: I guess because we you know, we joke that the
Speaker 7: pharmaceutical industry is such a deal heavy industry, pharm of biotech,
Speaker 7: that kind of thing.
Speaker 6: What's Merk saying? Because they do have that key true
Speaker 6: to risk exactly.
Speaker 5: So Mark has been one of the most aggressive when
Speaker 5: it comes to M and A. Earlier this year at
Speaker 5: the JPMorgan Healthcare Conference, the CEO Rob Davis said that
Speaker 5: he wants to do several deals in the tens of
Speaker 5: billion dollar range, and so that means we'll probably see
Speaker 5: more from them. Also interesting to note that Merk's stock
Speaker 5: is up today on the news, and normally in M
Speaker 5: and A the buyer's stock tends to go down on
Speaker 5: an announcement, but the fact that you know, shares their
Speaker 5: up means investors are applauding this and they you know,
Speaker 5: want merk To to keep doing stuff like this.
Speaker 2: So the deals worth six point seven billion dollars. It's
Speaker 2: a fifty three dollars a share in cash, which is
Speaker 2: a six percent premium to turns last clothes. There are
Speaker 2: some analysts out there who say that maybe Mark is
Speaker 2: not spending enough here and this invites other companies to
Speaker 2: come in and make their own bid for turn pharmaceuticals
Speaker 2: as well.
Speaker 5: You know, we will see if that happens. There were
Speaker 5: some bidding wars in pharma last year, with the Metzera
Speaker 5: deal being you know, one of the most notable ones
Speaker 5: that said the stock turns. The stock has increased like
Speaker 5: fifty percent since January on basically no news. So there
Speaker 5: could be an argument that maybe there was some built
Speaker 5: in you know, m and a speculation already into the
Speaker 5: already built baked into the price. But you know, you know, no,
Speaker 5: there are other pharma companies out there who are also
Speaker 5: trying to replenish their pipeline, so it wouldn't be unprecedented.
Speaker 7: Of course, which bankers were on this deal they don't have.
Speaker 7: They didn't list the Acquirer Advisor, but the financial target,
Speaker 7: Centerview Partners and Jefferies, so unusual or not unusual, which is.
Speaker 6: More boutiqui more boutiqui.
Speaker 5: Yeah, Centerview has I mean, they're generally on most of
Speaker 5: these on the cell side, and Jeffries has been doing
Speaker 5: a lot more on the sell side too.
Speaker 7: Yeah. The boutiques, like we used to call them boutiques,
Speaker 7: but in M and A they're not really boutiques anymore,
Speaker 7: are they?
Speaker 3: Exactly?
Speaker 7: They think they've really made a commitment doing real pgat
Speaker 7: and all those guys. Is there any regulatory risk when
Speaker 7: these healthcare deals get done? Or is it just a
Speaker 7: big mark buying a little biotech thing and nobody really cares?
Speaker 6: How's that work? Not as much.
Speaker 5: I mean, the last time we saw something kind of
Speaker 5: splashy get attention was when Amjen tried to buy Horizon
Speaker 5: and that FDC tried to block that deal. They ended
Speaker 5: up settling and the deal went through anyway. But in
Speaker 5: something like this where you know, turns of drug isn't
Speaker 5: even approved and it's biggest competitor is owned by Novardes,
Speaker 5: you know, the competing kind of compound. It seems unlikely.
Speaker 2: So given what Mark has done, in the fact that
Speaker 2: investors like the deals that it's made so far, I'm
Speaker 2: guessing we're going to expect to see more acquisitions from
Speaker 2: Mark in the coming weeks and months.
Speaker 3: That's probably yeah. Definitely stay with us.
Speaker 2: More from Bloomberg Intelligence coming up after this.
Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
Speaker 1: weekdays at ten am. He's done on Apple, Cocklay and
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Speaker 7: Let's talk a little media here. Interesting story on the
Speaker 7: Bloomberg terminal. Walt Disney Chief executive officer Josh Tomorrow has
Speaker 7: seen two billion dollar technology bets, Falter one of them
Speaker 7: and raveling entirely just days into his new job. Let's
Speaker 7: see what this means for the Walt Disney Company. We've
Speaker 7: got some other media stuff to talk about, and we
Speaker 7: turned to Keitha Rugana, and she is the media analyst
Speaker 7: for Bloomberg Intelligence.
Speaker 6: Keitha, there's news out regarding Disney.
Speaker 7: Can you talk to us about a couple of these
Speaker 7: deals that seemingly are falling apart here.
Speaker 3: Yeah, this is a big deal, Paul.
Speaker 8: I mean, you know, Josh Tomorrow obviously took the helm
Speaker 8: at Disney just a week ago, and we're seeing this
Speaker 8: Open Ai Sora deal that you know, Disney had kind
Speaker 8: of inked about three months ago. And basically the deal
Speaker 8: here was that this would be a three year licensing
Speaker 8: agreement where Disney would make a one billion dollar equity
Speaker 8: investment into Open Ai and Sora would be allowed to
Speaker 8: use about two hundred of Disney's characters to kind of
Speaker 8: create all of these short form videos which you know,
Speaker 8: users could basically engage with on the Disney Plus platform.
Speaker 8: You know, this was kind of I think Disney's way
Speaker 8: of playing offense defense with you know, the whole rise
Speaker 8: in Ai and kind of if you can't beat them,
Speaker 8: join them, kind of really joining the bandwagon and saying, yes,
Speaker 8: we have a stake here with AI. So this falling
Speaker 8: apart definitely kind of leaves Disney definitely they were blindsided.
Speaker 7: Uh.
Speaker 8: They they've they've been kind of trying to do different
Speaker 8: things in terms of really monetizing their ip creating like
Speaker 8: this really uh this this franchise fandom if you will, right,
Speaker 8: really digging deep into it. That's what Josh Tomorrow has
Speaker 8: spoken both with this opening ideal as well as the
Speaker 8: Epic Games deal that was a deal that actually Josh
Speaker 8: Tomorrow had kind of broken. And just over the past
Speaker 8: few days we've kind of seen you know, a lot
Speaker 8: of news with Epic Games too, and so this really
Speaker 8: kind of now raises the stakes for them to kind
Speaker 8: of find out, you know, hoom else they can partner
Speaker 8: with to kind of deepen that that fan engagement.
Speaker 2: Okay, so he's got his work cut out for him.
Speaker 2: Certainly makes for a busy first week on the job. Gita.
Speaker 2: We also want to talk to you about what's going
Speaker 2: on with Netflix. It's bolstering its live streaming, live streaming
Speaker 2: mega events. There was the BTS Comeback Show, which I
Speaker 2: guess the live show didn't attract as many people as
Speaker 2: people as thought, you know, actually attending the net, but
Speaker 2: the actual streaming of it was a monster hit, wasn't it.
Speaker 8: It was a monster hits. Carlor, You're absolutely right, over
Speaker 8: eighteen million viewers worldwide. And this is again we come
Speaker 8: back to the basic buzzword with in media right now,
Speaker 8: which is engagement. What are all the different ways that
Speaker 8: you can build engagement and you know, again the open
Speaker 8: AI saw a deal with Disney was again a way
Speaker 8: for Disney to build that engagement with their fans. Netflix
Speaker 8: kind of chasing all of these different types of content,
Speaker 8: you know, whether it is sports, whether it is this
Speaker 8: live event the bts come back to, or again trying
Speaker 8: to deepen that engagement, trying to deepen their connection with
Speaker 8: fans as you have more and more sources of you know,
Speaker 8: video basically competing for time spent. Again, huge, You're absolutely right,
Speaker 8: huge event for Netflix really shows how they can kind
Speaker 8: of go after all of these different genres and build
Speaker 8: that scale, build that appointment television kind of buzz and
Speaker 8: and you know, really get a good ROI on their
Speaker 8: investment there by the way, they're increasing their content spending
Speaker 8: four events like this this year by two billion dollars.
Speaker 8: That's a pretty sizable step up. So we're looking at them,
Speaker 8: you know, spending about twenty billion dollars scarlet this year
Speaker 8: on content.
Speaker 5: Wow.
Speaker 7: All right, Githa, it's opening day for my New York Yankees.
Speaker 7: They'll be opening up out in San Francisco this evening
Speaker 7: eight pm Eastern.
Speaker 6: First pitch. I'm not going to be a good game.
Speaker 7: Yep. I'm not going to ESPN and watch this I'm
Speaker 7: not even going to the Yankees' own network. Yes, I'm
Speaker 7: going to Netflix to watch this game tonight.
Speaker 3: Where are we in this world?
Speaker 7: Where are we in this world? Talk to us about
Speaker 7: you know, Netflix has set out we're never getting into sports.
Speaker 7: Well that's gone by the wayside. What do you think
Speaker 7: There's sports strategy is?
Speaker 8: So their sports strategy, Paul, I mean, this is a
Speaker 8: really important point. The sports strategy has been very very calculated,
Speaker 8: very very measured. At a time when we've seen other
Speaker 8: media companies like you know, Disney and Amazon and YouTube
Speaker 8: kind of spend billions and billions of dollars on sports rights,
Speaker 8: Netflix has taken a far more cautious approach, but an
Speaker 8: approach that has really served them well. So they started
Speaker 8: out with this five hundred million dollar deal for you know,
Speaker 8: WWE content. They went out after some NFL Christmas Day games.
Speaker 8: But this World Baseball Classic was actually their first big
Speaker 8: foray into world live sports, you know, an event in Japan,
Speaker 8: and it has really served them well. So you just
Speaker 8: look at the ROI on that event. They spent about
Speaker 8: one hundred million dollars for you know, forty seven games
Speaker 8: and they got something like thirty one million global viewers.
Speaker 8: Really a huge, huge viewing record for them, and again
Speaker 8: just shows how you know, by making really calculated bets
Speaker 8: again you can kind of build that buzz and for them,
Speaker 8: really build that critical engagement metric.
Speaker 2: Yeah, that is pretty incredible, and I guess part of
Speaker 2: it is also to build up the Netflix brand outside
Speaker 2: of the US, where sports rights have gotten to the
Speaker 2: point where it's prohibitive, but you look at the rest
Speaker 2: of the world and it's it's a little bit more doable.
Speaker 8: Absolutely So if you're just looking this year at sports right,
Speaker 8: scarlet companies are spending about over forty billion dollars just
Speaker 8: this year across the board for US sports rights, and
Speaker 8: we're only looking at that going up further and further.
Speaker 8: As you know, the NFL looks to high, high kits fees,
Speaker 8: the NBA looks to highkits fees.
Speaker 3: So yes, they do.
Speaker 8: They are making this really smart move by diversifying going
Speaker 8: across the board, and it's paying off. That's what's so
Speaker 8: great about it.
Speaker 5: To me.
Speaker 7: The defining moment will be when Netflix takes a Sunday
Speaker 7: package from the NFL, the NFL and Githa. I think
Speaker 7: that's that day is coming. What do you think?
Speaker 8: I also think it is coming. So they've already kind
Speaker 8: of dabbled with that, Paul. You know, they've done the
Speaker 8: Christmas Day Games again. They had some of the highest
Speaker 8: viewerships ever for the Christmas Day Games, something like thirty
Speaker 8: five million viewers.
Speaker 6: Yeah.
Speaker 8: Anyway, So I also think that they are definitely, you know,
Speaker 8: probably going to go for a digital package. I mean,
Speaker 8: I mean, the NFL wants to go there. They know
Speaker 8: that majority of the viewership is migrating to streaming and
Speaker 8: it would be stupid for them not to kind of
Speaker 8: sell a digital package. So I definitely think it's going
Speaker 8: to happen sooner rather than later.
Speaker 2: Stay with us. More from Bloomberg Intelligence coming up after this.
Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android
Speaker 1: Auto with the Bloomberg Business app. Listen on demand wherever
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Speaker 7: Chewey forecast is sales for the year that beat analyst expectations,
Speaker 7: stocks a pretty bigger ten twelve percent. Here today that's
Speaker 7: good news. Here, let's break it down with Diana prost Opine,
Speaker 7: Consumer staples analyst Bloomberg Intelligence. She joins us live here
Speaker 7: in our Bloomberg Interactive Broker studio. So, Chewy, what did
Speaker 7: you learn on their earnings call?
Speaker 9: Yeah, I mean they have been doing pretty well both
Speaker 9: on the top line and profitability. There's no complaints from investors,
Speaker 9: or at least they shouldn't be for eat quarter.
Speaker 6: So I'm just looking at the stock here.
Speaker 7: The stock's up again about twelve percent today, but it
Speaker 7: is down twenty percent year to date and then about
Speaker 7: twenty percent over the trailing twelve months. What's the investment
Speaker 7: call here for Chewy? What are the growth drivers top
Speaker 7: line for this company?
Speaker 9: Yes, so it's their ability to grab consumers. Once you
Speaker 9: enter I guess the Chewy you know environment, it's difficult
Speaker 9: for you to leave. They have about eighty eighty four
Speaker 9: percent of their revenue comes from authorship, so it's pretty
Speaker 9: much you set it up.
Speaker 3: It's subscription based pretty much.
Speaker 9: So you set it up and every so often you
Speaker 9: get your goodies at your doorsteps.
Speaker 7: So did they compete against the Amazons of the world,
Speaker 7: the Walmarts of the world, the pets dot com they do.
Speaker 9: Yeah, so you know, they have about a third of
Speaker 9: the e commerce you know, market share in the United States.
Speaker 9: They compete with Amazon as around the same.
Speaker 7: Well, there are not many companies out there that can
Speaker 7: say they have a third of a market where you
Speaker 7: compete against an Amazon and a Walmart and things.
Speaker 3: Like that exactly.
Speaker 9: And the thing with Chew is that they have expanded
Speaker 9: beyond merchandise, beyond food and now you can get your
Speaker 9: you know, your pharmacy, you can get you know, your
Speaker 9: vet needs. They actually have vet locations, eighteen vet locations.
Speaker 3: They're starting to do that.
Speaker 9: They see that that engages customers more.
Speaker 3: So that is, you know, an upside for them.
Speaker 6: So how is that business?
Speaker 7: I have no idea because it's all kinds of pet
Speaker 7: food in general, then stuff like toys and all that
Speaker 7: kind of stuff.
Speaker 6: What's the terriff situation for those that kind of stuff.
Speaker 9: So it seems that they have been able to navigate
Speaker 9: that obviously, you know, some of the pressure they pass
Speaker 9: that through consumers. They're seeing a net sales per active consumer,
Speaker 9: which is kind of like you know, they're pricing grow
Speaker 9: in the low single digits.
Speaker 3: So they are comfortable with that.
Speaker 9: You know, the scale and the price on the product
Speaker 9: mix that they have allows them to kind of like
Speaker 9: get the hit on the margin without you know, showing
Speaker 9: it to us.
Speaker 7: This was a obviously a COVID stock that just like
Speaker 7: like a peloton a little bit. But this has obviously
Speaker 7: done much better post How do people view this? Is
Speaker 7: this a kind of a consumer staple kind of name?
Speaker 7: How do you think about that?
Speaker 9: I would say it's a it's a you know, it's
Speaker 9: a retailer, you know, the way that I will see it.
Speaker 9: You know, going back to the you know, pandemic and
Speaker 9: COVID they actually had obviously this was a very favorite
Speaker 9: stock because everybody was at home. And then you know,
Speaker 9: the cohorts that were acquired during the pandemic they kind
Speaker 9: of reduced and that was kind of like a story
Speaker 9: of twenty twenty four. It was difficult for them to
Speaker 9: grow consumers because you know, the cohort was so massive
Speaker 9: that it was pretty much the you know, they couldn't
Speaker 9: keep up with you know, they couldn't keep a lot
Speaker 9: of those consumers. But that has turned around and they
Speaker 9: are seeing you know, significant growth. We actually expect that
Speaker 9: most of the growth in sales is probably going to
Speaker 9: come from active consumers rather than pricing.
Speaker 7: I mean, I look at you know, I know nothing
Speaker 7: about this business, but I look at the first place
Speaker 7: I look for when I look at p and LS
Speaker 7: at free cash flow. Great free cash flow here, I
Speaker 7: mek got seven hundred million dollars in for calendar or
Speaker 7: twenty six, maybe eight to fifty projected for calendar or
Speaker 7: twenty seven.
Speaker 3: What do they do with the free cash flow they
Speaker 3: invested in the business.
Speaker 9: They're growing scale, obviously, they're opening vets. That is something
Speaker 9: that they haven't pretty much experienced. They're actually in, you know,
Speaker 9: investing outside of the United States. You know, they're trying
Speaker 9: to get into Canada. They're given some of that back
Speaker 9: and share repurchases, but we don't necessarily expect it to
Speaker 9: be significant.
Speaker 3: You know, in twenty twenty six, what's.
Speaker 7: The big what's the margin analysis you guys do as
Speaker 7: analysts and investors, where's the leverage in the income statement
Speaker 7: that maybe improve margins because there's a retailer type margins.
Speaker 6: Yeah, what can they do? Really?
Speaker 9: I mean there are actually it seems that you know,
Speaker 9: they're working a lot with leverage, operating leverage. You know,
Speaker 9: in their distribution centers they seem to be you know,
Speaker 9: they are automated, so that has been building scale, you know,
Speaker 9: trying to get consumers to buy more premium brands. They
Speaker 9: have private label which they wanted to grow it to
Speaker 9: like the main teens. That is going to add about
Speaker 9: five hundred basis points to gross margin and you know,
Speaker 9: other non merchandise revenue, so that is usually higher profit
Speaker 9: than merchandise.
Speaker 6: Stay with us. More from Bloomberg Intelligence coming up after this.
Speaker 1: You're listening to the Bloomberg Intelligence Plot. Catch us live
Speaker 1: weekdays at ten am. He's done on Applecarclay, and Android
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Speaker 2: All right, let's check in with Justin Priden right now.
Speaker 2: He is vice president of consulting Services at Revenue Management Solutions,
Speaker 2: and he's also an attendee at the Bloomberg Intelligence Farm,
Speaker 2: Food and Fuel conference where they are talking about rising costs,
Speaker 2: especially fertilizer costs, what that means for agriculture, and what
Speaker 2: that means down the line for food operators, restaurant trends. Justin,
Speaker 2: thank you so much for joining us. Tell me about
Speaker 2: what you've discussed at this conference and how you think
Speaker 2: about what that means for restaurant menus and the restaurant industry.
Speaker 4: Paul Scarlett, thank you so much for having me, and again,
Speaker 4: the conference has been wonderful about talking about some of
Speaker 4: those input pieces that's really fundamental to restaurants and what
Speaker 4: their costs they're seeing in the bottom line when it
Speaker 4: comes to the products on their menus. At Revenue Management Solutions,
Speaker 4: we're always working to keep our clients ahead of the
Speaker 4: curve and be proactive when it comes to those cost
Speaker 4: inputs that they can meet the guests where they're at
Speaker 4: when it comes to what items are on the menu,
Speaker 4: their prices and all these pieces, and a lot of
Speaker 4: the topics that have been really important at this conference
Speaker 4: is what these what the downstream effects are going to
Speaker 4: or what the initial effects here are going to cause
Speaker 4: for those menus when it comes to costs and what
Speaker 4: comes to operators are going to be reacting to in
Speaker 4: that food and beverage industry.
Speaker 7: All right, here's the term I dislike slash hate the
Speaker 7: most in the food business over the last six months,
Speaker 7: and that is protein. When did they start using protein
Speaker 7: as opposed to just saying, hey, do you want chicken
Speaker 7: on your salad?
Speaker 2: It sounds better?
Speaker 6: I don't know, So talk to us about that, I mean,
Speaker 6: justin protein.
Speaker 7: Tell us why it's become an issue or a topic
Speaker 7: within the restaurant and food industry and how we should
Speaker 7: think about it.
Speaker 4: Paul, I hear you there, and it's so fun as
Speaker 4: a restaurant or originally myself, just calling it protein and
Speaker 4: going there just doesn't sounds good, right. It's not something
Speaker 4: that you think about when you're on the menu and
Speaker 4: think about, hey, I really feel like a protein section today.
Speaker 4: But really it's become a major piece, and it's always
Speaker 4: been a major piece of menus. I mean we see
Speaker 4: right now roughly about eighty five percent just of menu
Speaker 4: items making up that just the core chicken, beef, ork
Speaker 4: type of items. So it's always been there. But the
Speaker 4: real focus on it right now is a is you're
Speaker 4: starting to see a lot of trends focus on protein
Speaker 4: rich or a lot of protein within the diet. These
Speaker 4: are becoming even more important to consumers. Some of the
Speaker 4: generational shift too, you're starting to see is that it's
Speaker 4: even more important to the millennials who are in the
Speaker 4: market now and really becoming some of the chief spenders
Speaker 4: from now and moving forward, really looking for protein as
Speaker 4: a deciding factor and how they're choosing restaurants and how
Speaker 4: they're choosing their items. Also, just some trends with gop
Speaker 4: one and what you're seeing in dietary trends is really
Speaker 4: focused back on protein being a core of that decision process.
Speaker 4: For guests on menus, I think a recent survey we
Speaker 4: saw again three top reasons. It's good for my health,
Speaker 4: it's satisfying, and it's something that I need as part
Speaker 4: of my active lifestyle. And that just keeps increasing as
Speaker 4: we ask guests out there for menus and just what
Speaker 4: we're seeing as items come to menus.
Speaker 2: Justin I want to ask you about some trendy food
Speaker 2: that has become like kind of the thing that everyone wants.
Speaker 2: It's certainly showing up all over social media, whether it's
Speaker 2: Macha out of Japan or Asia overall, Ube out of
Speaker 2: the Philippines. Do buy chocolate, that's a big thing.
Speaker 6: Well, you're way ahead of me on this.
Speaker 3: Well, I mean this is.
Speaker 2: What's all over Instagram. And these things photograph really well,
Speaker 2: and they also lead to increased demand from consumers, and
Speaker 2: restaurants are kind of meeting this demand by incorporating it
Speaker 2: into their menus. Is this something that restaurants do with
Speaker 2: an eye to like just do it for a couple
Speaker 2: of weeks before going back to their normal menu, or
Speaker 2: is it something that they incorporate permanently.
Speaker 4: Well, I think you're seeing more and more of those
Speaker 4: trendy types of pieces to mendew if you want to
Speaker 4: call them trendy, but they're also following a lot of
Speaker 4: that global taste and that unique taste piece to cause
Speaker 4: buzz around items and a buzzer bus of the menu
Speaker 4: to be able to bring folks in again. Right now,
Speaker 4: as you're starting to see affordability as a total thing
Speaker 4: for guest visits and transactions being more of a fight
Speaker 4: for share as guests are coming in not necessarily maybe
Speaker 4: new occasions utilizing what's there, what's really current, what's good,
Speaker 4: those short term promotions, the social media aspects and the
Speaker 4: photographing let the camera eat first type of principle of
Speaker 4: being able to take sea food that's really exciting. You're
Speaker 4: seeing that get leveraged a lot as global cuisine as
Speaker 4: some of those trends are really there and again resonating
Speaker 4: with millennials, but again across all folks. As whether it's
Speaker 4: a mainstam menus, there's a real balance. I think you're
Speaker 4: seeing more of that short term type of menu options
Speaker 4: come in promotions and then whether that has staying power
Speaker 4: or how that balance is with what you might consider
Speaker 4: the core of the menu, the things that you're known for,
Speaker 4: what you come in for. So it's that balance of
Speaker 4: getting the folks coming in for excitement and for the
Speaker 4: things that they know and always look.
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