Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Nicole Miller – Piper Jaffray.
Nicole Miller – Piper Jaffray
Bob, could we get the franchise same store sales please?
Robert M. Vincent
For the quarter the blended combined result was down 7%. That was composed of domestic down 9.1% and our international had a positive 4.1%.
Nicole Miller – Piper Jaffray
So franchise combined down 7%?
Robert M. Vincent
Correct.
Nicole Miller – Piper Jaffray
Domestic down 6% and franchise plus.
Robert M. Vincent
No, domestic was down 9% and the international franchise was a positive 4%.
Nicole Miller – Piper Jaffray
Were there any shares repurchased in the quarter? I believe there’s still $50 million authorized. Is that right?
Robert M. Vincent
That is correct and no, there were no shares repurchased during the quarter.
Nicole Miller – Piper Jaffray
The marketing expense, it was very clear you’ll do the 100 basis points that you’re allocating this year versus last year. In 09 should we use that same run rate as another additional 100 basis points or are you going to keep it flat to 08?
Robert M. Vincent
I think it’s too early, Nicole, to comment on that at this point. We’re just beginning our process for planning in 09.
Nicole Miller – Piper Jaffray
The cost of goods sales trend being down, is that sustainable in the back half? What’s implied in the guidance as it relates to cost of goods sold?
Robert M. Vincent
We believe that it’s certainly sustainable in the current quarter. Generally speaking historically the last six weeks of the year there’s some pressure on beef due to demand and so our folks think that we may have a little bit of pressure at the end of Q4 but don’t believe that it will be sustainable as we move into 2009.
Nicole Miller – Piper Jaffray
I understand reiterating guidance has a lot to do with the cost savings but from a comp perspective I guess staying down five does really imply that there’s a little bit of improvement in July. Is that the case?
Robert M. Vincent
We won’t make any comments about on a go forward basis if you will but what the guidance does imply is that we will have improvement in the second half of the year over the first half of the year in part due to the easier comparisons but also in part to what we believe are very effective marketing initiatives that are in place.
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