Mr. DiFrisco: With the macro environment that we're living in, we're looking at which brands are going to come out first out of this U-shaped recovery and in turn outperform. I think it's definitely more of a share game. So who is best equipped to win share? Profitably growing the top line is the key, whereas in years passed it was pretty much a rising pool. That's how we are looking at the restaurant space. I don't know if there is going to be too much incremental demand, so it's going to be a share game, and we're paying attention to those companies best positioned for that.
TWST: How do you currently characterize the industry and where it sits on that curve? When will companies begin to break out?
Mr. DiFrisco: I think it's really tied to disposable personal income. We've heard a lot of chatter about how unemployment is a lagging indicator and how it doesn't mean that much - the economy should turn before, and the 90% that are employed are going to be better spenders. We're a little skeptical of that in this current environment. I think this is a - and I guess I've overused the term - "new normal." This might not be a typical recovery in that you don't have the credit igniting that 90% that's still employed. So the spending power from that 90% doesn't look as robust as it might have in other recoveries. So we're very much focused on the unemployment level, and I think until you see unemployment improve, you're probably not going to see the restaurants improve meaningfully on a sustainable comp basis. So the top line same-store sales that drive returns are dependent on disposable income turning and improving through wages and salaries, primarily to make people better spenders and improve consumer confidence. We believe that could happen as early as 2Q 2010, and that's where you might start seeing in aggregate positive comps across a broad group of brands. We're not just thinking that the fourth quarter, having easier comp compares, puts us on a clear path to that. There might be the risk of a head fake in the first quarter, so we're more comfortable at the second quarter as far as a sustainable basis.
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