Total Revenues

+4.2% (from $206.2M to $214.8M)

Total revenues increased modestly primarily because the dramatic surge in company restaurant sales offset declines in other segments, despite franchise and rental revenues falling. The acquisition-driven boost in company-operated segment contrasts with the prior period’s minimal contribution, leading to an overall $8.6M increase. " "

Total Franchise Revenues

–5.5% (from $175.9M to $166.2M)

The decline in franchise revenues follows a trend of negative same-restaurant sales growth and fewer effective franchise units, echoing patterns seen in previous periods where similar factors were noted, thereby reducing overall franchise income despite prior improvements. " "

Company Restaurant Sales

+7,400%+ (from $0.274M to $21.573M)

A dramatic surge in company restaurant sales is driven by the conversion of acquired restaurants—from 47 Applebee’s and an additional 10 IHOP locations—to company-operated status. This strategic shift, absent in the prior period, flipped a negligible base into a substantial revenue driver. " "

Rental Revenues

–9.8% (from $29.55M to $26.66M)

Rental revenues declined further as the ongoing trend of lease buyouts and operating lease terminations from previous periods continued into Q1 2025, reducing the rental revenue base relative to Q1 2024. " "

Gross Profit

–7.3% (from $97.4M to $90.3M)

The drop in gross profit reflects margin compression as the revenue mix shifted from higher-margin franchise operations to lower-margin company-operated sales, coupled with cost pressures and integration expenses linked to the recent acquisitions compared to the prior period’s performance. " "

Net Income

–53% (from $17.47M to $8.20M)

A sharp decline in net income resulted from a combination of reduced gross profit margins, increased costs such as higher interest expenses and potential integration or one-time impairment charges, which heavily impacted profitability despite the revenue increases seen from acquisitions; these factors contrast with the more favorable cost structure in Q1 2024. " "