Question · Q3 2025
Alex Conway questioned the primary reasons behind the unit closures, such as low volume, real estate issues, or franchisee circumstances, and sought clarification on the confidence in alleviating these pressures by the second half of 2026. He also asked about unique factors in Q4 that might lead to lower year-over-year EBITDA growth compared to the full-year guidance.
Answer
Chairman and CEO Chris Morris explained that closures primarily involve low-volume units due to factors like poor real estate or unique franchisee situations, with lease expiration dates playing a significant role. He expressed confidence in returning to net positive growth by late 2026, citing improved portfolio health, stronger franchisee partnerships, and positive trends in guest engagement and acquisition. CFO Tom Kim affirmed confidence in the full-year EBITDA guidance, noting that Q3 benefited from timing shifts in certain operating expenses, including marketing and technology, which will move into Q4, influencing the quarterly dynamics.
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