0001437749-26-016462
SEC filingRevenue declined 12.7% due to divestiture and franchise weakness, but net income rose 14.5% on lower expenses and a divestiture gain.
Operating income was $1.5 million, essentially flat compared to $1.5 million in the prior year, resulting in an operating margin of 22.6%. Net income rose 14.5% to $1.6 million from $1.4 million, driven by a $248K gain on divestiture and lower interest expense. Diluted earnings per share increased to $0.11 from $0.10. The improvement in net income demonstrates effective cost management and the benefit of the divestiture.
System-wide sales, which include franchisee sales, were impacted by the divestiture and franchise performance. The company continues to focus on its franchise model and cost control. Forward-looking statements are based on current beliefs and expectations, and actual results may differ. The company does not provide specific guidance.