Raising Cane's Co-CEO on Inflation's Impact and Texas Flood Relief Efforts

Inflation's Impact on Restaurant Traffic

• 📉 Raising Cane's has observed a slight tightening in customer traffic over the past four to six weeks, affecting all geographic areas and day parts.
• 📊 Despite this industry-wide trend, the company remains at the top of its segment, with business performance largely meeting initial expectations for the year.

Tariffs and Procurement Strategy

• 🌍 While customers and employees discuss tariffs, Raising Cane's experiences minimal direct impact due to its domestically procured food products.
• 📦 The only direct impact from tariffs is on imported items like packaging, which represent a small fraction of overall costs.

Pricing Strategy Amidst Rising Costs

• 💰 Despite thin margins in the restaurant business, Raising Cane's does not plan to raise prices for the remainder of the year.
• 📈 The projected impact of imported goods on profit and loss is estimated to be between 5 to 10 basis points.

Texas Flood Relief Efforts

• 💔 Raising Cane's is actively involved in supporting communities affected by devastating floods in Texas, a state where they have a significant presence.
• 🤝 The company has partnered with the American Red Cross to donate one million dollars and is providing ongoing support to first responders and rebuilding efforts.
• 🛠️ This community engagement is core to the company's values, with a commitment to serving the community beyond just business operations.