Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Anton Brenner - Roth Capital Partners. LLC.
Anton Brenner - Roth Capital Partners LLC
Joel mentioned that you are being prudent; I think was the word he used in signing new site leases. I wondered if you could explain exactly what that means. Does that mean you plan to slow your expansion in 2010 and beyond or does it mean something else?
Joel Schwartz
Well it means to probably keep pace where we are, because the strategy of our site selection, especially recently, has proven to be correct because these new units are doing better than they anticipated, but to do more than an opportunity, but to really look at the area and study it, it might slow down that that we had projected eight, nine a year to something less than that, but we are going to still look very, very hard, prudently, at the new sites that come up and be sure that the money allocated to new restaurants is being spent wisely.
Juan Garcia
To supplement that, as we have gone out on road shows before, Jose, and Joel, and I, we have always said that we wanted to open X number and then increase that number every year by approximately two RA Sushi’s and all that. I think what we are saying is that we feel confident with the level of development that we’ve been experiencing in fiscal ’08 and ’09 to about 10-11 units, that right around between 9 and 11 units a year.
Anton Brenner - Roth Capital Partners LLC
And to keep it at that level in other words?
Juan Garcia
Yes.
Anton Brenner - Roth Capital Partners LLC
The sequential increase in the fully diluted shares outstanding in the first quarter reflects option awards that were made?
Juan Garcia
No the incremental shares in the diluted shares calculation is reflective of the current market price of the stock. The preferred shares are redeemable in June 20, 2014 at the then current market price, if it is not converted previously at the fixed price of $12.67 and the accounting rules have you take into account the most dilutive calculation possible, even though the redemption is not slated for 2014, we are required to include the current price in the calculations; so that is where the additional shares came from.
Anton Brenner - Roth Capital Partners LLC
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