0001275158-26-000037
SEC filingRevenue was $123.8M (-0.7%) Operating Income was -$812.0K (87.3%) Net Income was -$3.4M (62.3%) Eps was $-0.58 (-190.0%)
Operating income improved to −$812K in Q1 FY2026 from −$6.4M in Q1 FY2025, representing an 87.3% year-over-year improvement. This narrowing of the operating loss reflects progress in managing corporate-level expenses and aligns with the company’s focus on cost discipline. While revenue remained essentially flat at $123.8M (−0.7% YoY), the improvement in operating income underscores that expense management and structural adjustments contributed meaningfully to financial performance.
Net income improved to −$3.4M from −$9.1M in the prior-year quarter, a 62.3% improvement. Diluted EPS was −$0.58, compared to −$0.20 in Q1 FY2025. The larger negative EPS value reflects both the absolute magnitude of the net loss and the impact of share count changes; however, the underlying improvement in net income demonstrates reduced pressure on profitability despite ongoing losses.
Capital expenditures were $2.1M, down from $2.9M in Q1 FY2025. This reduction reflects the absence of new company-owned restaurant openings and a continued emphasis on reinvestment in existing locations. Free cash flow—defined as net cash provided by operating activities less capital expenditures—was $3.9M, supporting liquidity and flexibility within the company’s capital structure.
The company continues to fund its capital expenditure requirements through a combination of available cash and cash equivalents, cash flows from operations, and its revolving credit facility. Management has noted that future development targets would be funded using these same sources, reinforcing the importance of sustained operating cash flow generation and disciplined capital allocation.