Franchise Operations - As of December 27, 2025, Winmark operates 1,378 franchises across the United States and Canada, with over 2,800 available territories[17] - The company had a net store growth of 55 new stores in 2025, with a renewal rate of 98% across its franchises[28] - Winmark has signed 82 new franchise agreements, with most expected to open in 2026[35] - The company renewed 99% of franchise agreements up for renewal over the past three years, indicating strong franchisee retention[54] - A total of 110 franchise agreements across five brands are set to expire in 2026, with 103 in 2027 and 92 in 2028, highlighting the importance of franchise renewals for financial performance[71] - The company renewed 98% of franchise agreements up for renewal in 2025, maintaining a consistent renewal rate over the past three years[116] Financial Performance - System-wide sales for 2025 reached $1,682 million, reflecting growth from $1,610.2 million in 2024 and $1,589 million in 2023[26] - The total royalties and franchise fees for 2025 amounted to $77.9 million, representing 90.5% of consolidated revenue[28] - Total revenue for the year ended December 27, 2025, was $86.1 million, a 5.9% increase from $81.3 million in 2024[121] - Net income for 2025 was 48.4% of total revenue, compared to 49.1% in 2024, reflecting a 4.6% increase in net income[120] - The franchising segment's operating income increased by $0.5 million, or 0.9%, to $52.1 million in 2025 from $51.6 million in 2024[133] - Cash flow from operating activities provided $44.9 million in 2025, an increase from $42.2 million in 2024, due to higher net income and reduced non-cash working capital[136] - Total revenue for the fiscal year ended December 27, 2025, was $86,055,700, representing an increase of 5.4% from $81,289,100 in the previous year[155] - Net income for the fiscal year ended December 27, 2025, was $41,654,100, up from $39,954,200 in the prior year, reflecting a growth of 4.3%[155] Expenses and Liabilities - Selling, general and administrative expenses rose by $3.4 million, or 13.7%, compared to the previous year, highlighting increased operational costs[114] - Total current liabilities increased to $5,666,000 in 2025 from $5,087,900 in 2024, an increase of 11.4%[153] - Total contractual obligations as of December 27, 2025, amounted to $70.7 million, with significant payments due in the next one to three years[138] - Total long-term liabilities remained relatively stable at $72,900,500 in 2025 compared to $72,802,700 in 2024[153] Marketing and Advertising - Franchisees are required to spend a minimum of 5% of their gross sales on approved advertising and marketing[45] - Advertising costs increased to $0.8 million in fiscal year 2025 from $0.6 million in 2024, reflecting a strategic push in marketing efforts[182] - Marketing fee revenue recognized was $1.9 million for the fiscal year ended December 27, 2025, compared to $1.8 million in 2024 and $1.6 million in 2023, showing a consistent upward trend[190] Sustainability and Strategic Initiatives - In 2025, Winmark extended the lives of over 195 million items, contributing to its sustainability mission[30] - The company is focused on sustainability and small business formation, which are key components of its operational strategy[112] - The company is pursuing a strategic initiative to modernize its point-of-sale (POS) platform, which is critical for franchisee operations[78] Cash and Investments - The company ended 2025 with $10.5 million in cash, down from $12.3 million at the end of 2024[136] - The company maintained cash assets that may exceed FDIC insurance limits, posing a risk to liquidity in case of financial institution failures[83] - The company declared and paid a total of $13.4 million in quarterly cash dividends and a special cash dividend of $35.7 million in 2025[213] Franchise Fees and Royalties - As of December 27, 2025, the initial franchise fee for stores in the U.S. is $25,000 and $36,000 CAD in Canada, with additional store fees of $15,000 and $21,600 CAD respectively[48] - Franchisees are required to pay an annual marketing fee of $1,500 and spend 5% of gross sales on advertising, with the potential to increase this requirement to 6%[49] - Royalties from franchisees increased by $4.2 million, or 5.8%, compared to 2024, indicating strong franchise performance[113] - Royalties increased to $76.4 million in 2025 from $72.2 million in 2024, representing a 5.8% growth driven by higher franchise retail sales and additional franchise stores[122] Employee and Operational Support - As of December 27, 2025, the company employed 87 employees, with no collective bargaining agreements in place[68] - The company provides ongoing operational support and training to franchisees to ensure adherence to its business standards[38] Competition and Market Challenges - The company faces significant competition from both established retailers and online marketplaces, impacting franchisee sales[81] - Franchisees are dependent on a reliable supply of used merchandise, which may be affected by external factors and regulatory compliance[74]

Financial Performance - Winmark Corporation reported a net income of $41,654,100 for the year ended December 27, 2025, representing an increase of 4.3% from $39,954,200 in 2024, with diluted earnings per share rising to $11.30 from $10.89[1] - Total revenues for the year were $86,055,700, up 5.5% from $81,289,100 in 2024, with fourth quarter revenues reaching $21,086,300 compared to $19,548,100 in the same quarter last year[1][10] - Winmark's operating cash flow for the year was $44,896,800, an increase from $42,157,900 in 2024, reflecting strong operational performance[12] Franchise Operations - The company had 1,378 franchises in operation as of December 27, 2025, with over 2,800 available territories, indicating potential for market expansion[3] Investments and Growth Strategy - The company invested significantly in marketing, technology, and innovation to support franchisees and enhance its business model[2] - The company plans to continue building a strong foundation in marketing and technology to support future growth and innovation[2] Balance Sheet and Shareholder Value - Total current assets decreased to $14,096,000 from $15,365,600 in 2024, while total liabilities increased slightly to $78,566,500 from $77,890,600[6][8] - Winmark's total shareholders' equity (deficit) was reported at $(53,682,400) as of December 27, 2025, compared to $(51,046,100) in 2024[8] - The company repurchased common stock worth $2,418,700 during the year, reflecting a commitment to returning value to shareholders[12] Cash Position - Winmark's cash and cash equivalents at the end of the period were $10,295,700, down from $12,189,800 in 2024[12]

Core Insights - Winmark Corporation reported a net income of $41,654,100 for the year ended December 27, 2025, translating to $11.30 per diluted share, an increase from $39,954,200 or $10.89 per diluted share in 2024 [1] - For the fourth quarter of 2025, net income was $9,959,900 or $2.69 per diluted share, compared to $9,583,100 or $2.60 per diluted share in the same period last year [1] - Revenues for the year ended December 27, 2025, were $86,055,700, up from $81,289,000 in 2024 [1]

Core Insights - Crude Value Insights provides an investment service and community focused on the oil and natural gas sectors, emphasizing cash flow and companies that generate it, which leads to value and growth prospects with real potential [1] Company Offerings - Subscribers gain access to a model account with over 50 stocks, in-depth cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [1]

Core Points - Winmark Corporation announced a quarterly cash dividend of $0.96 per share, to be paid on March 2, 2026, to shareholders of record on February 11, 2026 [1] - The company reported net income of $11,136,500 or $3.02 per share diluted for the quarter ended September 27, 2025, compared to $11,120,700 or $3.03 per share diluted in 2024 [1] - Winmark Corporation appointed Lisa Hake as Chief Marketing Officer, effective October 1st, bringing over 25 years of experience in marketing and brand management [1] Financial Performance - For the nine months ended September 27, 2025, net income was $31,694,200 or $8.61 per share diluted, an increase from $30,371,200 or $8.29 per share diluted for the same period last year [1] Company Overview - Winmark Corporation operates a franchising business focused on sustainability and small business formation, with 1,378 franchises in operation and over 2,800 available territories as of December 27, 2025 [1]

Core Viewpoint - Winmark Corp. will replace Guess? Inc. in the S&P SmallCap 600 effective January 26, 2026, due to an acquisition by Authentic Brands Group LLC and the Rolling Stockholders [1] Group 1: Company Changes - Winmark Corp. (Ticker: WINA) will be added to the S&P SmallCap 600 index [1] - Guess? Inc. (Ticker: GES) will be deleted from the S&P SmallCap 600 index [1] - Both companies belong to the Consumer Discretionary sector [1]

Core Insights - Winmark Corporation (NASDAQ:WINA) is focusing on a strategic shift towards franchising retail stores that sell secondhand goods, with a notable increase in franchise locations from 1,319 to 1,350 by the end of 2024, indicating steady expansion [1] - The company is gradually exiting its leasing segment to enhance margins and align with its long-term strategy, while also emphasizing sustainability and the circular economy [2] - Winmark's strong cash reserves, exceeding $39.7 million in cash and cash equivalents as of Q3 2025, have allowed it to maintain a solid dividend policy, with an operating cash flow of over $36.3 million [3] Financial Performance - Over the past five years, Winmark has consistently raised its dividends at an annual average rate of nearly 36%, and has also issued special dividends, making it a strong candidate for dividend investors [4] - The current quarterly dividend stands at $0.96 per share, with a dividend yield of 0.98% as of October 30 [4]

Core Viewpoint - Winmark Corporation (NASDAQ: WINA) is positioned to perform well in a cost-conscious consumer environment due to its ownership of several thrift shop brands [1] Company Summary - Winmark Corporation operates multiple brands that can be categorized as thrift shops, appealing to shoppers looking to reduce expenses [1] Industry Context - The current retail environment is characterized by consumers seeking to lower their spending, which may benefit companies like Winmark that focus on value-oriented offerings [1]

[Third Quarter and Nine Months 2025 Financial Results Overview](index=1&type=section&id=Third%20Quarter%20and%20Nine%20Months%202025%20Financial%20Results%20Overview) This section provides an overview of Winmark Corporation's financial performance for the third quarter and nine months ended September 27, 2025 [Key Financial Highlights](index=1&type=section&id=1.1%20Key%20Financial%20Highlights) Winmark Corporation announced its third quarter and nine-month financial results for 2025, reporting stable net income for Q3 and an increase for the nine-month period compared to the previous year | Metric | Q3 2025 | Q3 2024 | 9 Months 2025 | 9 Months 2024 | | :-------------------- | :------------ | :------------ | :-------------- | :-------------- | | Net Income | $11,136,500 | $11,120,700 | $31,694,200 | $30,371,200 | | Diluted EPS | $3.02 | $3.03 | $8.61 | $8.29 | - Net income for the nine months ended September 27, 2025, increased by **4.36%** year-over-year, and diluted EPS increased by **3.86%** year-over-year[1](index=1&type=chunk) [Company Business Description](index=1&type=section&id=1.2%20Company%20Business%20Description) Winmark Corporation operates as a nationally recognized franchisor in the resale industry, promoting sustainability and small business formation through its five award-winning resale brands - Winmark is a nationally recognized franchisor focused on sustainability and small business formation[2](index=2&type=chunk) - The company operates five resale franchise brands: Plato's Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore®, and Music Go Round®[2](index=2&type=chunk) - As of September 27, 2025, there were **1,377** franchises in operation, over **2,800** available territories, and an additional **77** franchises awarded but not yet open[2](index=2&type=chunk) [Forward-Looking Statements](index=1&type=section&id=1.3%20Forward-Looking%20Statements) The press release includes forward-looking statements that are subject to risks and uncertainties, and actual results may differ materially from those anticipated, cautioning investors against undue reliance - The press release contains forward-looking statements as per Section 21E of the Securities Exchange Act of 1934[3](index=3&type=chunk) - These statements are predictions or intentions subject to risks and uncertainties, and actual results could differ materially[3](index=3&type=chunk) - Shareholders and prospective investors are cautioned not to place undue reliance on such statements[3](index=3&type=chunk) [Condensed Financial Statements](index=2&type=section&id=Condensed%20Financial%20Statements) This section presents Winmark Corporation's condensed balance sheets, statements of operations, and cash flows, highlighting key financial positions and performance metrics [Condensed Balance Sheets](index=2&type=section&id=2.1%20Condensed%20Balance%20Sheets) Winmark Corporation's balance sheet as of September 27, 2025, shows a significant increase in total assets, primarily driven by a substantial rise in cash and cash equivalents, and a positive shift in shareholders' equity from a larger deficit to a reduced one | Metric | Sep 27, 2025 | Dec 28, 2024 | | :-------------------------------- | :----------- | :----------- | | Total Assets | $53,747,200 | $26,844,500 | | Cash and cash equivalents | $39,734,800 | $12,189,800 | | Total Current Assets | $43,064,300 | $15,365,600 | | Total Liabilities | $80,088,400 | $77,890,600 | | Total Shareholders' Equity (Deficit) | $(26,341,200) | $(51,046,100) | - Total assets increased by approximately **100%** from December 28, 2024, to September 27, 2025, largely due to a significant increase in cash and cash equivalents[5](index=5&type=chunk) - The shareholders' deficit improved by approximately **48.4%** from $(51,046,100) to $(26,341,200) over the period[7](index=7&type=chunk) [Condensed Statements of Operations](index=3&type=section&id=2.2%20Condensed%20Statements%20of%20Operations) For the nine months ended September 27, 2025, Winmark reported an increase in total revenue and net income, primarily driven by higher royalties, with a slight increase in Q3 revenue and net income year-over-year Three Months Ended September 27, 2025 vs. September 28, 2024 | Metric | Sep 27, 2025 | Sep 28, 2024 | Change | | :------------------------ | :----------- | :----------- | :----- | | Total Revenue | $22,632,900 | $21,510,900 | +5.22% | | Royalties | $20,911,300 | $19,512,500 | +7.17% | | Income from operations | $14,923,200 | $14,928,600 | -0.04% | | Net income | $11,136,500 | $11,120,700 | +0.14% | | Diluted EPS | $3.02 | $3.03 | -0.33% | Nine Months Ended September 27, 2025 vs. September 28, 2024 | Metric | Sep 27, 2025 | Sep 28, 2024 | Change | | :------------------------ | :----------- | :----------- | :----- | | Total Revenue | $64,969,400 | $61,741,100 | +5.23% | | Royalties | $57,348,000 | $54,555,700 | +5.12% | | Income from operations | $41,580,800 | $40,164,400 | +3.53% | | Net income | $31,694,200 | $30,371,200 | +4.36% | | Diluted EPS | $8.61 | $8.29 | +3.86% | - Selling, general and administrative expenses increased for both the three-month period (**+18.9%**) and the nine-month period (**+11.0%**) year-over-year[9](index=9&type=chunk) [Condensed Statements of Cash Flows](index=4&type=section&id=2.3%20Condensed%20Statements%20of%20Cash%20Flows) For the nine months ended September 27, 2025, Winmark experienced a significant net increase in cash, cash equivalents, and restricted cash, primarily driven by strong operating activities cash flow, despite increased dividends paid and common stock repurchases | Metric | 9 Months Ended Sep 27, 2025 | 9 Months Ended Sep 28, 2024 | | :------------------------------------------ | :-------------------------- | :-------------------------- | | Net cash provided by operating activities | $36,373,800 | $33,700,000 | | Net cash used for investing activities | $(172,700) | $(194,900) | | Net cash used for financing activities | $(8,656,100) | $(9,604,600) | | Net increase in cash, cash equivalents and restricted cash | $27,545,000 | $23,900,500 | | Cash, cash equivalents and restricted cash, end of period | $39,874,800 | $37,287,000 | - Net cash provided by operating activities increased by **7.93%** year-over-year[11](index=11&type=chunk) - Financing activities included **$9,991,400** in dividends paid and **$2,418,700** in common stock repurchases in 2025, partially offset by **$3,754,000** from stock option exercises[11](index=11&type=chunk)

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