Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from the line of Matthew DiFrisco.
Matthew DiFrisco – Oppenheimer & Co.
Thank you. I guess just looking at your comp guidance for the second quarter of – that range of 5.5, 6.5, how do you incorporate in there the discounting of the price? I’d assume that you are expecting it equally successful or do you think in the current economy that it might be even taking advantage of more and more of your traffic might be discount oriented than what you did last year? How are you incorporating the possible mix effect of more people coming back and really redeeming the 10% than did last time?
Sue Collyns
Well, it’s hard to predict what consumers are going to do this year. It’s obviously an unusual time in a broader sense. What we do know last time is that the comps we launched during the second quarter of last year and the month of May and the month of June didn’t see tremendous level of redemptions. And of the activity and the comps were really driven in the month of May. So we are obviously at the early stages of that, too early to say.
Rick Rosenfield
I think you may have misspoke – I think you may have said May and June to start – it's April and June.
Sue Collyns
April and June, and the month of May is when we saw the redemptions and generated a 4.1% comp. We have allocated the distribution of the 10%, 20%, 50% along the same proportions that we did last year statistically. I think we would assume that they would come in and be redeemed at around the same level. The question is though, what will the ultimate redemptions be. It’s obviously an important program for us. We know our guests like it. We are very happy with the redemption rate that we are seeing so far this quarter. And we’ll let you know what the results are on our next earnings call.
Rick Rosenfield
And I think it’s also as we look at the competitive environment, it’s challenging because there is a lot more discounting and couponing and competitive activities than there was a year ago.
Matthew DiFrisco – Oppenheimer & Co.
Okay. And then just a last question on the G&A side, looking at the direction of that, is there an ability to cut that a little bit or in the out quarters? How should we view that? Is that going to grow or pretty much hold the line on absolute dollars and get a little bit delivered in this current comp environment that you are in?
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