Question-and-Answer Session
Operator
(Operator instructions). Our first question comes from the line of Karen Eldridge with Goldman Sachs.
Karen Eltrich – Goldman Sachs
First off, obviously with corn coming down where it is, I think probably the outlook for commodity costs next year has been altered. How has it altered your view? What have you locked in for next year and are there some things that maybe you’re waiting on?
Nelson Marchioli
If you look at corn, you are absolutely right. It has dropped quite a bit, but keep in mind 2 years ago, it was half the current selling price, so we still are in quite an inflationary period as we look at corn. The only corn that we have locked in at, at this particular time has been in our formula as we purchase our liquid egg product which is considerable, but that is the only corn that we’ve locked in on, and I don’t recall what we locked in on it at, but it is a place where we can live.
Karen Eltrich – Goldman Sachs
What about some of the other commodities? What is your outlook right now in terms of locking at current prices if you can or to wait and see if they come down lower as well?
Nelson Marchioli
As we look at commodities as we have always looked at commodities, you can’t be greedy. You have to look at it and find a place where you can live with the price. I don’t know where they are going to drop, if they are going to drop anymore. There are a number of buys compared to what we have seen over the last 2 years, last year particularly, so we are locking in some things, but we are being very careful, and there are others that candidly we are going to continue to ride the market on because it just doesn’t make any sense at this point in time.
Karen Eltrich – Goldman Sachs
A lot of things don’t make sense right now so I can appreciate that. I do think a lot of the strategies you’ve undertaken with your menu this year have been beyond innovative and creative and it sounds like you are a little frustrated that they haven’t necessarily taken hold. I’m curious to see what traction are you seeing that keeps you encouraged particularly for the late night menu as well as for the takeout. Do you feel that with additional marketing or just with time and a better economy, they will take hold? What are your thoughts so far on the progress?
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