Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from the line of Jeffrey Omohundro with Wells Fargo Securities.
Jeffrey Omohundro - Wells Fargo
My first question is related to the franchise performance and the deferrals. I wonder if you could elaborate a little bit more regarding that situation and perhaps what else you are doing to assist them during these challenging times, and what else you might be considering doing?
Samuel E. Beall
Well, as far as the deferrals, I’ll let Margie touch on that in just a second. As far as what we are doing, you know, sales are tough out there and of course, they are more leveraged than we are so it’s even tougher on them. They went -- I think we mentioned this on the last conference call that they went on all of our marketing programs, efforts as of June 1 on a two-year basis. They are really about the same as the company. They had a better year last year. They are having a tougher year this year but I think actually in September, they are running the same as company, aren’t they now, after 90 days of that? Somebody? Isn’t that right?
Marguerite N. Duffy
Yeah, we’ve closed the gap.
Samuel E. Beall
Yeah. And then as far as --
Marguerite N. Duffy
As far as the financial impact, if we look year over year at the franchise revenue line, when we defer fees, we basically put those on the cash basis so we don’t recognize those until they are received. Looking year over year, we would anticipate about $1.5 million to $2.5 million less in the franchise revenue line from a conservative perspective, and we’ll see how the year pans out with regard to sales.
Samuel E. Beall
And on a two-year basis, Jeff, they are the same.
Jeffrey Omohundro - Wells Fargo
My other question was on the commodity outlook. I wonder if you could just give us a little more detail on that. Certainly it’s been helpful, the commodity trends, pretty good given the value strategies. How do you see it evolving through the year? Thanks.
Samuel E. Beall
Through this fiscal year?
Jeffrey Omohundro - Wells Fargo
Yes.
Samuel E. Beall
We don’t see anything changing at all. We are already locked in well beyond this fiscal year.
Marguerite N. Duffy
And as far as looking at food cost as a percent of sales, for instance, I think looking back at where we were fourth quarter last year, looking at that range for the full year is a fair way to look at it.
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