Financial Data and Key Metrics Changes - In Q4 2025, revenues were $185.7 million, an increase of $1.1 million or 0.6% year-over-year [11] - Same-restaurant sales declined by 3.3%, resulting in a revenue decrease of approximately $5.4 million [11] - Restaurant-Level Adjusted EBITDA decreased by $4.7 million to $40.6 million, with margins dropping approximately 270 basis points to 21.8% [14] - General and administrative expenses decreased by $0.9 million to $19.4 million, or 10.5% of revenue [15] - Cash from operations decreased by 26.7% year-over-year to $71.9 million [18] Business Line Data and Key Metrics Changes - Non-comp restaurants contributed $7.8 million to the total year-over-year revenue increase during the quarter [11] - The average check remained flat, with a 2.3% increase in net effective menu prices offset by a 2.3% decrease in product mix [11] Market Data and Key Metrics Changes - The Texas market expansion continued to be a headwind for the business, impacting consolidated restaurant-level margins by 180 basis points in Q4 [14] - The Kennesaw restaurant in Atlanta opened in November and generated over $2 million in sales in its first eight weeks [5][6] Company Strategy and Development Direction - The company has reset its development strategy, slowing new store openings and focusing on healthy unit economics [5] - Future growth strategy includes entering new markets with a focus on building awareness and demand before opening subsequent restaurants [8] - The Perks program has over 2 million members and is expected to drive traffic improvements in 2026 [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the Texas market but expressed confidence in the brand's future [10] - The company anticipates mid-single-digit commodity inflation, particularly in the beef category, impacting costs [12] - For 2026, the company expects to open 8 new restaurants and total capital expenditures in the range of $55 million-$60 million [18] Other Important Information - The company experienced a 4% increase in commodity prices, impacting food, beverage, and packaging costs as a percentage of revenues [12] - Interest expense decreased to $5.7 million due to a lower effective interest rate [17] Q&A Session Summary Question: Kennesaw restaurant sales and future expectations - Management confirmed Kennesaw generated $3.8 million in sales over its first 100 days and does not expect it to reach $14 million [23] Question: EBITDA growth and margin expansion in Texas - Management indicated both margin expansion and profitability improvements were observed in Texas restaurants [26] Question: New growth strategy impact on hiring and operations - The new strategy may lead to less efficient new openings but is expected to improve long-term performance [31] Question: Regional performance and comp analysis - Arizona faced pressure due to cannibalization from a new restaurant, but overall performance was consistent across markets [33] Question: Consumer value proposition in Chicagoland - Improvement in value perception scores was noted, driven by promotional offers and operational focus [38] Question: Marketing strategy and spending - A slight uptick in marketing spend is expected, focusing on an "always-on" approach rather than pulsing [87] Question: Mix and transaction growth - The company is addressing mix headwinds through initiatives like kiosks to improve ticket size [90]

Financial Data and Key Metrics Changes - The company reported record earnings with a quarterly EPS of $9.37, up 129% from the previous year, and an annual EPS of $28.88, compared to $14.60 in 2024 [5][12] - Revenue for Q4 2025 increased by 42% year-over-year to $2.6 billion, while full-year revenue exceeded $9 billion, marking a 30% increase compared to 2024 [8][12] - Gross profit for Q4 was $675 million, a $241 million increase from the previous year, with a gross profit margin of 25.5%, up from 23.2% [9][12] - Operating income for Q4 increased by 89% to $427 million, with an operating income percentage of 16.1% [11] - Full-year EBITDA was $1.45 billion, with a margin of 16% [12] Business Line Data and Key Metrics Changes - The mechanical segment revenue increased by 21%, while the electrical segment revenue surged by 62% [8][12] - Same-store revenue growth for Q4 was 35%, with overall same-store revenue increasing by 26% [5][8] - Service revenue grew by 12%, contributing to a record $1.2 billion in total service revenue for 2025 [17] Market Data and Key Metrics Changes - The backlog reached an all-time high of $12 billion, with a year-over-year increase of 93% [5][14] - Technology customers drove significant backlog growth, with technology accounting for 45% of revenue, up from 33% the previous year [15][16] - Institutional markets, including education and healthcare, represented 21% of revenue, while construction accounted for 86% of total revenue [16] Company Strategy and Development Direction - The company plans to expand its modular capacity from 3 million sq ft to approximately 4 million sq ft by the end of 2026, focusing on investments in technology and workforce training [6][14] - The company is committed to rewarding shareholders, increasing its quarterly dividend by $0.10 to $0.70 per share and repurchasing over $200 million in shares [8][13] - The company aims to maintain strong gross profit margins and leverage its operational efficiencies to support continued growth [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, expecting same-store revenue growth in the mid-teens to high-teens percentage range [8][12] - The company acknowledged challenges in the labor market but emphasized its ability to attract and retain talent through in-house training and contract professionals [25][26] - Management highlighted the importance of maintaining disciplined project commitments to ensure profitability and productivity [69][70] Other Important Information - The company acquired two electrical companies during Q4, enhancing its operational capabilities [7] - Capital expenditures for 2025 were $155 million, representing 1.7% of revenues, with plans for continued investment in operations [13] Q&A Session Summary Question: Clarification on backlog growth - Management clarified that backlog reflects binding commitments from projects planned 1-2 years prior, indicating a late-cycle position in the construction process [21][22] Question: Labor shortage situation - Management confirmed they have added over 7,000 employees in the last 24 months and are utilizing in-house capacity to meet labor demands [25][26] Question: Bookings in Q4 - Management noted that over half of the $2.6 billion in bookings were new modular projects, with significant activity in data centers and other sectors [33][34] Question: Modular expansion timeline - The company plans a gradual addition of modular capacity throughout 2026, with some productivity expected earlier in the year [36] Question: Same-store sales growth expectations - Management indicated that while growth is expected to be consistent, the comparables in the second half of the year are steeper due to last year's performance [43][44] Question: Impact of cooling requirements on business - Management stated that changes in cooling requirements for next-generation chips would not significantly impact their business, as the need for electricians and pipe fitters remains [80][82] Question: M&A pipeline and cash deployment - Management expressed a cautious approach to acquisitions, emphasizing the importance of conviction over opportunistic purchases [84][86]