Total Revenue

+2.5% (from $1,084.6M to $1,112.1M)

Total Revenue increased primarily due to a mix of higher U.S. Franchise Advertising and modest gains in Supply Chain revenue, reflecting an overall improvement in business activities from Q1 2025. Similar to previous periods where increased order volumes, higher pricing, and a return to standard advertising contribution rates drove revenue boosts. " "

U.S. Franchise Advertising

+12.5% (from $110.3M to $124.0M)

The significant increase in U.S. Franchise Advertising revenue is driven by higher same store sales and net store growth, alongside the reinstatement of the standard 6.0% advertising rate in Q1 2024. This momentum, consistent with earlier fiscal period trends, indicates improved franchise performance and stronger brand investment. " "

Supply Chain

+1.6% (from $659.2M to $669.9M)

The modest increase in Supply Chain revenue is attributable to continued higher order volumes and incremental food basket pricing adjustments, although the impact is partially offset by shifts in product mix and business transitions seen in prior periods. The lower percentage increase in Q1 2026 suggests seasonal or operational factors may be moderating growth compared to FY 2025’s 4.8% increase. " " "

U.S. Company-owned Stores

Relatively Flat (from $92.6M to $91.6M)

Despite slight fluctuations, U.S. Company-owned Stores remained stable, with lower same store sales due to reduced customer transaction counts being partially mitigated by an increased average ticket size. This balance mirrors previous trends where operational challenges and minor store count changes led to flat revenue performance. " " "

U.S. Franchise Royalties

Relatively Flat (from $150.5M to $151.0M)

The U.S. Franchise Royalties stayed essentially flat, reflecting offsetting dynamics such as increased digital transactions against a marginal reduction in technology fees. This stability is consistent with past performance where franchise fee revenues showed resilience despite nuanced operational adjustments. " " "

International Franchise

Essentially Unchanged (≈$72.0M)

International Franchise revenue remained virtually unchanged, as same store sales growth was balanced by the negative impact of foreign currency exchange rates. This neutrality continues the mixed results seen in previous periods, where net store growth and technological fees counteracted adverse exchange rate effects. "