Shells overcame several external challenges during 2005, including hurricanes which further affected the economy, Florida tourism and energy costs. However, we're very pleased by the enthusiastic customer response we're receiving from Shells improved menu, service and remodeling program.

The investments we made during fiscal 2005 to dramatically improve the appearance and atmosphere of our restaurants are critical to building a strong future for Shells. We've made significant progress in improving our concept and our restaurants, as well as investing in our people as we construct a stronger platform for growth. We believe that the positive sales momentum we're sustaining will translate into improved earnings over time.

They overcame the challenges and really pulled through.

We're just now starting to see the effects [of the Florida hurricanes] on demand,

I've been to a lot of these hurricanes including Hugo in 1989 and Andrew in 1992, which were both considered to be some of the biggest storms to hit the United States with some of the most grievous damage, ... But I have to be honest to say I have never seen anything like this, that the scope of the human suffering here in New Orleans is difficult to comprehend, let alone try to convey to viewers through video and through storytelling. There are so many people here who have nothing, who have nowhere to go and are not being helped.

If we see softening figures for demand, then it could take the market down. Hurricanes affected supplies and the demand side was roaring, but now production is coming back online and we're seeing demand erode.