Total Revenue

+1% YoY (from $513.9M to $518.3M)

The modest increase reflects overall business stability with domestic operations maintaining their performance, showing a slight uplift likely due to improvements in store-level sales and a stable revenue mix relative to the previous period. " "

International Segment Revenue

-16% YoY (from $46.7M to $39.1M)

The sharp decline suggests adverse market conditions or operational challenges abroad, which may build on prior restructuring effects or competitive pressures that impacted international sales compared to Q1 2024. " " "

All Others Revenue

+30% YoY (from $52.0M to $67.5M)

This significant increase is likely driven by strategic shifts such as the aftermath of the divestiture of Preferred Marketing and transformation initiatives that realigned revenue sources within this segment relative to the previous period. " " "

Operating Income

-29% YoY (from $33.72M to $23.97M)

The decline in operating income can be attributed to margin pressures from underperforming international operations and higher cost impacts, contrasting with previous periods where other operational improvements partially offset such challenges. " "

Net Income Attributable to Common Shareholders

-38% YoY (from $14.64M to $9.03M)

This drop reflects the compounded impact of lower operating income and increased expenses, indicating tightening profit margins relative to the higher results in Q1 2024 despite some favorable items in previous periods. " "

Net Cash Provided by Operating Activities

+161% YoY (from $12.0M to $31.3M)

A strong cash performance is driven by the favorable timing of collections and marketing spend, as well as improved working capital management, marking a notable operational cash flow improvement over Q1 2024. " "

Cash and Cash Equivalents

+58% YoY (from $27.8M to $44.0M)

The increase in cash balances is a result of enhanced operational cash flows combined with lower investing outflows and positive exchange rate effects, building on the improved liquidity seen in the previous period. " "

Total Assets

+6% YoY (from $847.2M to $898.1M)

The moderate asset growth likely reflects reinvestment of improved cash reserves and expansion in operational capacity, showing a gradual buildup in asset base compared to Q1 2024. " "

Adjusted EBITDA

FY 2025

$200 million to $220 million "

No guidance provided [Q1 2025]

no current guidance

System-wide Sales Growth

FY 2025

Up between 2% and 5% "

No guidance provided [Q1 2025]

no current guidance

North America Comparable Sales

FY 2025

Flat to up 2% "

No guidance provided [Q1 2025]

no current guidance

International Comparable Sales

FY 2025

Flat to up 2% "

No guidance provided [Q1 2025]

no current guidance

Capital Expenditures

FY 2025

$75 million to $85 million "

No guidance provided [Q1 2025]

no current guidance

Tax Rate

FY 2025

28% to 32% "

No guidance provided [Q1 2025]

no current guidance

D&A Expense

FY 2025

$70 million to $75 million "

No guidance provided [Q1 2025]

no current guidance

Net Interest Expense

FY 2025

$40 million to $45 million "

No guidance provided [Q1 2025]

no current guidance

Restaurant Openings

FY 2025

North America: 85–115 restaurants; International: 180–200 restaurants "

No guidance provided [Q1 2025]

no current guidance

Restaurant Closures

FY 2025

North America: approximately 1.5%–2%; International: 4%–5% "

No guidance provided [Q1 2025]

no current guidance

Incremental Marketing and Loyalty Spend

FY 2025

Up to $25 million "

No guidance provided [Q1 2025]

no current guidance

Transaction Trends

Q2 2024 discussions centered on lower transactions with sequential improvements after value initiatives (e.g., Cheeseburger Pizza, Papa Pairings). " " " Q3 2024 highlighted sequential improvements across channels and increased carryout momentum. " " " Q4 2024 emphasized investments in carryout and organic delivery improvements. " " "

Q1 2025 stressed sequential improvement (120 bps improvement), strong performance during key occasions, higher items per order, and transaction share growth. " "

Consistent focus on lifting transaction trends. The narrative has evolved from addressing initial declines to celebrating incremental gains driven by value perception and strategic initiatives.

Delivery & Service Experience

Q2 2024 detailed app updates, improved wait times, and channel mix shifts to drive efficiency. " " Q3 2024 focused on differentiating first‐party versus third‐party delivery and enhancing customer experience via technology. " " Q4 2024 reported sequential improvements in organic delivery and loyalty program enhancements. " " "

Q1 2025 emphasized leveraging a Google Cloud partnership for driver dispatch, implementing a holistic mystery shop program, and optimizing oven calibration to improve both delivery and carryout. " " "

Evolving operations with a technology and customer‐experience focus. Ongoing improvements in digital and operational execution continue to raise service standards while addressing channel challenges.

International Expansion & Transformation

Q2 2024 covered U.K. market transformation with refranchising and a focus on unit economics. " " " Q3 2024 discussed a “narrow and deep” consumer-centric strategy with regional support centers, and Q4 2024 emphasized significant restaurant openings/closures and focus on key markets (Middle East, Latin America, U.K.). " " "

Q1 2025 noted 3% YoY comparable sales growth internationally, 29 new openings and 42 closures, and a cautious yet positive outlook driven by transformation initiatives. " " "

Steady global emphasis with cautious optimism. The company remains committed to its international transformation while refining its restaurant network and market strategy for sustainable growth.

Value Perception & Brand Positioning

Q2 2024 described a shift to value-focused products (e.g., $9.99 Cheeseburger Pizza, $6.99 Papa Pairings) while balancing premium offerings. " " " Q3 2024 centered on competitive price points and quality messaging (e.g., XL New York Style, Shaq-A-Roni). " " Q4 2024 highlighted strategic price adjustments, loyalty enhancements, and premium positioning. " " "

Q1 2025 launched the “Meet the Makers” campaign and refined loyalty program parameters; additional incremental marketing (approx. $7M, with plans for more) reinforced their value and quality narrative. " "

Continuous evolution of value messaging. The focus has shifted from adjusting price-value gaps to a more integrated brand positioning that leverages marketing, loyalty enhancements, and product innovation to build long-term consumer trust.

Franchise Network & Refranchising

Q2 2024 detailed significant U.K. refranchising and domestic footprint expansion. " " " Q3 2024 underscored evaluating optimal company versus franchise ownership with examples such as Wisconsin, and Q4 2024 highlighted targeted refranchising transactions in key markets. " " "

Q1 2025 reported substantial refranchising activity (105 UK stores), active franchisee engagement through a large biannual conference, and a focus on pairing company-owned markets with growth-minded franchisees. " " "

Steady emphasis on network optimization. The approach to refranchising is consistently aimed at shifting to growth-oriented operators to improve profitability and scale, reinforcing the system’s resilience for long-term success.

Marketing, Advertising & Innovation Investments

Q2 2024 introduced the new “Better Getson” brand platform and value-centric pricing along with digital improvements. " " " Q3 2024 discussed co-investments with franchisees, digital technology investments, and loyalty program enhancements. " " Q4 2024 focused on incremental marketing spend (approx. $4M), revamped loyalty rewards, and robust product innovations. " " "

Q1 2025 featured a strong marketing push with the “Meet the Makers” campaign, an incremental marketing spend of ~$7M (with plans for up to an additional $25M), technology investments via a partnership with Google Cloud, and continued menu/product innovation. " "

Increased and aggressive investments. The company is ramping up marketing spend and innovation to drive customer engagement, improve operational efficiency, and reinforce brand differentiation in an evolving QSR landscape.

Execution Risk

Q2 2024 discussed challenges in implementing value initiatives and margin pressures, while Q3 2024 implied execution challenges in narrowing the value perception gap. " "

Q1 2025 did not explicitly mention execution risk or challenges related to improvement initiatives.

Diminishing explicit discussion. While previous periods touched on the risks and challenges of executing improvement initiatives, the current period does not explicitly reference these concerns, suggesting either confidence in execution or a shift in strategic emphasis.

Commodity Cost Pressures

Q2 2024 mentioned a modest 30 bp benefit from lower cheese and dough costs but warned of rising future commodity prices. " " Q3 2024 stressed that higher food basket costs—especially for cheese and chicken—led to a 190 bp margin decline. "

Q1 2025 noted that higher food costs (particularly cheese and proteins) contributed about 130 basis points of margin pressure, with commissary revenues rising due to increased commodity prices. " "

Persistently challenging. Commodity costs continue to exert downward pressure on margins with consistent concerns across periods, reflecting ongoing cost volatility that is impacting profitability.

Asset Reimaging Initiatives

Q3 2024 briefly mentioned asset reimaging as part of the refranchising strategy, emphasizing the role of growth-minded operators in reimaging storefronts. "

Q1 2025 did not reference any asset reimaging initiatives.

Reduced emphasis. What was previously noted in the context of refranchising now appears with less prominence, potentially indicating that asset reimaging is no longer a primary focus or has been integrated into broader strategic initiatives.

Competitive Pressures in QSR and Third-Party Delivery

Q2 2024 highlighted challenges with the channel mix—declining organic delivery offset by stronger third-party growth—and addressed value perception issues compared to competitors. " " Q3 2024 offered detailed insights into a dynamic competitive landscape with efforts to balance first-party and third-party delivery and capitalize on data-driven marketing to drive LTOs. " " " Q4 2024 touched on competitive challenges indirectly via channel mix shifts. " "

Q1 2025 underscored a dual approach: leveraging quality and storytelling (“Meet the Makers”) to bolster QSR positioning while actively enhancing delivery operations (via technology and mystery shopping) to better compete in third-party channels. " " "

A persistent competitive challenge with evolving strategies. The company remains focused on differentiating its brand in a highly competitive QSR market while optimizing its channel mix to address the pressures from third-party delivery. The approaches are becoming more integrated with technology and quality-focused storytelling to boost first-party appeal.