Financial Data and Key Metrics Changes - Global system-wide sales declined by 1.8% on a constant currency basis, driven by a 3.6% decrease in same restaurant sales in the U.S. [33][16] - Adjusted EBITDA was $146.6 million, an increase of 2.5% year-over-year, while adjusted earnings per share rose by 7.4% to $0.29 [38][18] - Free cash flow generated in the first half of the year was $109.5 million, reflecting strong cash generation capabilities [39] Business Line Data and Key Metrics Changes - The U.S. same restaurant sales declined by 3.6%, partially offset by a higher average check, while same restaurant sales at U.S. company-owned restaurants outperformed the U.S. system by almost 300 basis points, declining only 0.7% [33][34] - The international segment achieved system-wide sales growth of 8.7%, with notable increases in Japan (27%) and Mexico (16%) [35][34] Market Data and Key Metrics Changes - The company anticipates full-year global system-wide sales to decline between 3% to 5% year-over-year, reflecting a challenging competitive environment and dynamic consumer behavior [48][29] - U.S. company-operated restaurant margin is expected to be around 14%, with commodity inflation projected at approximately 4% [49] Company Strategy and Development Direction - The company is focusing on improving execution and performance while maintaining its long-term strategy, emphasizing the importance of franchisee partnerships [5][6] - Key strategic priorities include fresh food innovation, enhancing customer experience, and accelerating net unit growth, with a target of 2% to 3% net new unit growth for the year [30][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the consumer and competitive environment has changed significantly, leading to a revised outlook for the year [4][29] - The company is committed to strengthening its franchisee relationships and improving operational efficiencies to drive better results [14][15] Other Important Information - The company returned over $88 million to shareholders through dividends and share repurchases in the second quarter, totaling over $262 million in the first half of the year [18][43] - The company is on track to return approximately $325 million to shareholders in 2025, an increase of $40 million compared to 2024 [43] Q&A Session Summary Question: Assessment of marketing value menu performance - Management noted that the first half of the year faced challenges due to changing consumer behavior and weather impacts, leading to a reassessment of marketing strategies for the second half [61][60] Question: Franchisee sentiment and alignment on value - Management indicated that franchisee relationships are good but can be improved, emphasizing the need for better communication and prioritization of initiatives [72][74] Question: Revisiting U.S. franchise development - Management confirmed a commitment to improving franchisee economics through new data analytics capabilities and detailed P&L discussions at the restaurant level [86][87] Question: Customer satisfaction and same-store sales growth - Management is actively tracking customer satisfaction and believes improvements will lead to increased frequency of visits, with positive trends already observed [90][91] Question: Core menu pricing strategy - Management acknowledged the need to evaluate core menu pricing and emphasized the importance of quality in conjunction with pricing strategies [96][98] Question: Changes to chicken patty and focus on chicken - Management confirmed the use of high-quality ingredients for chicken products and expressed confidence in the new chicken tenders outperforming competitors in tests [107][108]

Financial Data and Key Metrics Changes - For Q3 2025, Jack in the Box reported a system same-store sales decrease of 7.1%, with franchise same-store sales down 7.2% and company-owned same-store sales down 6.4% [23][24] - Consolidated adjusted EBITDA was $61.6 million, down from $78.9 million in the prior year, primarily due to sales deleverage [30] - GAAP diluted earnings per share for Q3 was $1.15 compared to a net loss per share of $6.26 in the same quarter last year [30] Business Line Data and Key Metrics Changes - Jack brand's restaurant level margin percentage decreased to 17.9%, down from 21% a year ago, driven by sales deleverage [24] - Del Taco's system same-store sales declined 2.6%, with franchise same-store sales down 2.7% and company-owned same-store sales down 2.2% [26] - Del Taco's restaurant level margin was 9.7%, down 370 basis points from the prior year, primarily due to lower sales and higher costs [27] Market Data and Key Metrics Changes - The macro environment remains challenging, with consumers, particularly in Hispanic communities, being cautious and pulling back spending [8][56] - Digital sales mix reached 18.5% for Jack in the Box, with Del Taco achieving approximately 20% of system-wide sales through digital channels [17][26] Company Strategy and Development Direction - The company is refocusing on improving the guest experience through operational excellence, quality food at good value, and modernizing restaurants [12][15][17] - The "Jack on Track" plan aims to close underperforming restaurants and improve franchisee health, with expectations to close 80 to 120 restaurants by the end of 2025 [32][35] - The company plans to invest $5.5 million in incremental marketing to support new product offerings and improve sales performance [11][38] Management's Comments on Operating Environment and Future Outlook - Management noted that the low-income consumer remains cautious, impacting sales, while the mid-income consumer has also shown signs of struggle [54][56] - The company expects same-store sales for Jack in the Box to decline in the low to mid-single digits for the fiscal year, with a focus on improving value offerings [39] - Management expressed confidence in the long-term potential of both Jack in the Box and Del Taco brands despite current challenges [6][8] Other Important Information - The company did not repurchase any shares during the quarter and has discontinued its dividend [31] - Total debt outstanding at quarter end was $1.7 billion, with a net debt to adjusted EBITDA leverage ratio of 5.7 times [32] Q&A Session Summary Question: Guidance for Jack in the Box same-store sales - Management indicated that Q4 performance is expected to improve with new value offerings and marketing support [42][44] Question: Real estate sales target of $100 million - The $100 million figure is seen as a minimum target, with flexibility based on the Del Taco process and cash accumulation [47][48] Question: Operational improvements with Shannon McKinney's return - Shannon is expected to focus on operational basics, improving service quality and accountability [52][53] Question: Sensitivity of restaurant margin to same-store sales changes - A 1% change in same-store sales is estimated to impact restaurant margin by approximately 10 basis points [75][78] Question: Impact of soft sales on the Jack on Track plan - Management confirmed that soft sales would not delay the Jack on Track initiatives, as closures and real estate sales will be spread over several years [81][82] Question: Interest in remodels from franchisees - There was high interest in the previous remodel program, with over 1,000 applications for a limited number of spots [93] Question: Cadence of remaining restaurant closures - Management anticipates that at least half of the remaining closures will occur by the end of the fiscal year [96][97]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 reached $1.1 billion, approximately equal to the previous year [5] - Consolidated adjusted EBITDA was $91.3 million, down from last year primarily due to weaker local currencies and margin pressure in Brazil [6][16] - Constant currency revenue remained solid, supported by an 11.1% increase in system-wide comparable sales, aligning with blended inflation for the period [6] Business Line Data and Key Metrics Changes - Brazil's total revenue in constant currency grew by 5.5% in Q1 2025, despite a challenging operating environment [10] - NOLAD's total revenue was flat in constant currency but declined in USD due to the depreciation of the Mexican peso [11] - SLAD's comparable sales rose by 38.7% in Q1 2025, with Argentina rebounding strongly [13] Market Data and Key Metrics Changes - Digital sales accounted for nearly 60% of system-wide sales in Q1 2025, with significant growth in loyalty and mobile order channels [8][21] - In Brazil, digital channels generated almost 70% of system-wide sales, supported by marketing activities [10] - The loyalty program had 18.8 million registered members across five markets by the end of Q1 2025 [23] Company Strategy and Development Direction - The company aims to provide an omnichannel experience for guests, allowing flexibility in how they enjoy McDonald's menu items [7] - Focus on digitalization to enhance guest experience and operational efficiency, with plans to expand the loyalty program across all main markets by the end of 2025 [29][30] - The company is committed to maintaining a strong balance sheet while investing in growth opportunities [27][29] Management's Comments on Operating Environment and Future Outlook - Management views Q1 2025 as the low point of the year, with expectations for improved operating conditions in Q2 [4][16] - The company remains cautiously optimistic about sales performance improving as the year progresses, driven by a robust marketing plan [28] - Management acknowledges the challenges posed by currency depreciation and inflation but believes in the long-term growth potential of the McDonald's brand in Latin America [31][32] Other Important Information - The company added 12 new restaurants during the quarter, with plans to accelerate openings to meet annual guidance [27] - The company expects to maintain a net debt to adjusted EBITDA ratio of about 1.4 times throughout the year [26] Q&A Session Summary Question: Comments on sales trends in early Q2 2025, especially in Brazil and NOLAD - Management noted reduced traffic in the QSR industry, particularly in Mexico, with calendar effects significantly impacting sales [34][36] - April showed strong recovery in Mexico, indicating positive trends moving forward [38] Question: Impact of beef prices on Brazil's margins and recovery expectations - Management confirmed that beef prices negatively impacted margins in Q1 but expects stabilization through pricing adjustments and revenue management initiatives [42][46] - The company plans to increase prices in line with inflation while protecting traffic to create shareholder value [52] Question: Recent consumption trends in Argentina and SLAD - Management reported strong sales growth in Argentina, with expectations for continued positive performance throughout the year [56][58] Question: Clarification on royalty expenses and their impact on EBITDA margin - Management explained that the new royalty structure would lead to a slight reduction in consolidated royalty fees, positively impacting EBITDA margins [60][62]

Core Insights - Wingstop Inc. reported first-quarter earnings per share of 99 cents, exceeding the street view of 90 cents, with quarterly sales of $171.1 million, reflecting a year-over-year increase of 17.4% [1] - Piper Sandler analyst Brian Mullan maintained a Neutral rating on the stock, slightly raising the price forecast from $271 to $272 [1] - Stephens analyst Jim Salera reiterated an Overweight rating with a price forecast of $385, highlighting the strong performance of the AI-powered Smart Kitchen and record new guest acquisition in March [4] Financial Performance - First-quarter earnings per share: 99 cents, beating the expected 90 cents [1] - Quarterly sales: $171.1 million, a 17.4% increase year-over-year, slightly above the analyst consensus estimate of $170.92 million [1] - FY26 revenue estimates were raised by Piper Sandler from $843 million to $856 million and by Stephens from $833.9 million to $837.4 million [3][5] Product Performance - Positive feedback on the re-launched chicken tenders, with management noting that orders are primarily from individual customers, particularly during lunch [2] - The introduction of the chicken sandwich previously received a similar positive response, indicating strong consumer interest [2] Market Outlook - Management acknowledged some consumer pullback, but indicated it was limited to specific areas rather than widespread, shaping their outlook for the second half of the year [3] - Wingstop is viewed as a highly efficient and predictable growth story in the Quick Service Restaurant (QSR) space [4]