0001104659-25-119676
SEC filingSingle-segment operator with $797M revenue, net loss $24.6M, cash $8.9M, total debt $550.3M, and operating lease liabilities $691M.
As of October 31, 2025, cash and cash equivalents were $8.9M, down sharply from $39.6M at fiscal year end, reflecting negative operating cash flow of $53.4M during the quarter. Total debt stood at $550.3M, consisting of $149.4M current portion (2026 Convertible Notes maturing June 2026) and $400.9M long-term debt (including $335.9M of 2030 Convertible Notes and $65.0M drawn on the revolving credit facility). Shareholders’ equity was $428.8M, down from $461.7M due to the net loss and dividends. Inventory increased to $209.1M from $180.6M. Deferred revenue from gift cards and loyalty programs totaled $76.8M.
The company has significant operating lease obligations with total undiscounted future payments of $1,030.6M, of which $71.5M is due within the next year. Present value of lease liabilities is $691.0M. Additionally, there are standby letters of credit of $8.7M securing workers’ compensation claims and lease guarantees with a maximum potential payment of $1.7M.
Dividends: The company paid $0.25 per share quarterly, totaling $5.5M in declared dividends. No share repurchases were disclosed; debt covenants restrict repurchases based on leverage ratios. Debt activity: net borrowing of $65.0M (proceeds $142.5M less repayments $77.5M), primarily through the revolving credit facility. Capital expenditures were $35.5M (4.45% of revenue), focused on store maintenance and improvements.
The company operates as a single reportable segment with all operations within the United States. Revenue split: restaurant $650.6M (81.6%) and retail $146.6M (18.4%). The segment reported a net loss of $24.6M, compared to net income of $4.8M in the prior-year quarter, driven by lower revenue and higher store-level expenses.
Net income swung to a loss of $24.6M from a profit of $4.8M, but non-cash charges (depreciation, share-based compensation, noncash lease expense) added $53.5M in adjustments. The main driver of the CFO deterioration was a large working capital outflow: inventories increased $28.6M (vs $21.0M), accounts payable fell $12.4M, and accrued employee compensation dropped $24.9M, reflecting seasonal and operational timing. Capex of $35.5M was slightly below the prior year's $39.0M, indicating disciplined capital allocation. Despite negative CFO, the company funded capex and dividends ($6.3M) through debt issuance (net $65.0M after repayments). No share repurchases were executed. Free cash flow (CFO minus capex) was -$88.9M, down from -$43.3M, highlighting a significant cash burn. Interest paid was low at $0.5M due to capitalized interest, while income taxes saw a net refund of $17.0M, providing a temporary boost. Overall, cash generation weakened considerably due to operating losses and working capital needs, relying heavily on financing to cover shortfalls.