Financial Data and Key Metrics Changes - For 2025, the company met or exceeded updated financial targets for system-wide sales, comparable sales growth, and adjusted EBITDA, despite a system-wide sales decline of just under 1% [30][31] - Total consolidated revenue for Q4 was $498 million, down 6%, primarily due to lower revenue at domestic company-owned restaurants and North America Commissary [32][33] - Consolidated adjusted EBITDA decreased to $51 million in Q4, impacted by marketing investments and higher management incentive compensation [34] Business Line Data and Key Metrics Changes - North America comparable sales decreased 5% in Q4, driven by a 5.5% decrease in transaction comps, while carryout grew 1% [31] - The international business delivered 6% comparable sales growth, driven by new menu offerings and improved brand performance [31][33] - Domestic company-owned restaurant segment adjusted EBITDA margin was 6.3%, improving by approximately 10 basis points [35] Market Data and Key Metrics Changes - The U.S. market share slightly softened in 2025, reflecting a system-wide sales decline [30] - International revenue increased by $4 million, driven by improved performance across priority regions [33] Company Strategy and Development Direction - The company is focused on enhancing brand health, technology, innovation, and customer experience to drive market share gains [5][6] - A significant emphasis is placed on product innovation, including the launch of Pan Pizza and new sandwiches, to attract new customers and drive sales [10][11] - The company is accelerating its refranchising program, expecting to reduce company-owned restaurants to mid-single-digit percentages of the North American system [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustainable, profitable long-term growth despite a cautious consumer environment [23][39] - The company anticipates comparable sales in North America to decline by 2%-4% in 2026, while international comparable sales are expected to increase by 2%-4% [38] Other Important Information - The company plans to invest approximately $22 million in supplemental marketing and franchisee subsidies in 2026 to support its menu strategy [40] - A strategic review identified approximately 300 underperforming restaurants for closure, expected to improve average unit volumes (AUVs) by at least 3% [27][28] Q&A Session Summary Question: What is holding the company back from holding or taking share in 2026? - Management noted that innovation will play a significant role in recruiting new customers, with a focus on engaging existing customers through loyalty programs [45][46] Question: How does the company think about competing on value against larger competitors? - The company aims to meet consumer needs through promotions and innovation, balancing affordable offerings with premium products [56][57] Question: How did the third-party delivery perform relative to first-party? - Third-party delivery grew low single digits, while first-party delivery saw a decline, indicating room for improvement in consumer satisfaction [77]