This story was originally published on Restaurant Dive. To receive daily news and insights, subscribe to our free daily Restaurant Dive newsletter. Dive Brief: 7 Brew has hired Matthew Dunnigan as its chief financial officer, the company said in a Wednesday press release.  Dunnigan previously served as CFO at Restaurant Brands International, where he worked for over nine years, including over six in the CFO role, according to his LinkedIn profile. He left in 2024 for a stint at Equinox, a chain of fitne ...

Financial Data and Key Metrics Changes - System-wide sales for Q1 2025 increased approximately 4.8% year over year to $140.7 million, with total revenue rising approximately 2.3% year over year to $113.7 million [21] - First quarter adjusted EBITDA was $5.5 million, representing 4.9% of total revenue, a 2.8% decrease year over year due to a prior year settlement payment benefit [21][26] - Company-operated shop revenue increased approximately 1.3% year over year to $109 million, while franchise revenue surged approximately 30.8% year over year to $4.7 million [22] Business Line Data and Key Metrics Changes - Same store sales growth was 0.9% for the full quarter, driven by a 1.1% increase in average check, partially offset by a 0.2% decrease in transactions [22] - Franchise units increased by 26%, contributing to the significant rise in franchise revenue [22] Market Data and Key Metrics Changes - Digital sales represented over 42% of total shop sales during the first quarter, an increase of approximately 200 basis points compared to the previous year [14] - The company expects to open at least six new shops in Q2 2025, with a total of at least 38 new shops anticipated for the year [17][28] Company Strategy and Development Direction - The company is focused on driving same store sales growth through menu innovation, digital investments, and prudent cost controls [10][20] - Plans include modernizing the shop footprint and accelerating unit openings through franchising efforts, aiming for a total of 2,000 units in the U.S. [19][30] - The company is also investing in digital assets and data analytics to enhance customer engagement and operational efficiency [14][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth plan despite potential pressures from tariffs and a challenging consumer environment [27] - The company anticipates same store sales growth of 1.5% to 2.5% for the full year 2025, with adjusted EBITDA projected at approximately $33 million to $34 million [28] Other Important Information - The company reported a slight net loss of $62,000 for the quarter, an improvement of $2.7 million over the prior year [26] - The company purchased approximately 117,000 shares of common stock for about $1.1 million during the first quarter [26] Q&A Session Summary Question: What is driving the outsized performance in same store sales? - Management attributed the performance to menu innovation, digital marketing efforts, and improved value offerings [34][35] Question: Can you provide insights on franchising initiatives and unit level economics? - Management noted strong interest from franchisees due to positive trends in unit level economics and the brand's appeal [41][42] Question: What are the trends in digital ordering and loyalty penetration? - Digital sales increased significantly, and the company is investing in enhancing its digital platforms and loyalty programs [51][52] Question: What are the expectations for inflation and pricing for the rest of the year? - The company anticipates a full-year gross price increase of just over 3%, aligning with inflation expectations [66] Question: What is the status of the PDK rollout and its impact on labor costs? - The company is on track to retrofit half of its company shops with the new system, which is expected to yield labor savings [70][71]