Shares declined 2.2% following the earnings release, reflecting some investor caution despite solid top-line growth and operational progress. The modest market pullback likely signals concerns around margin pressures and cautious commentary on sustainable margin expansion amid ongoing investment.
- Revenue grew 32.2% year-over-year, driven by a 9.7% same-restaurant sales increase and 6.8% traffic growth.
- Added 20 net new restaurants, reaching a total of 459 locations across 29 states and D.C.
- Adjusted EBITDA rose 37.6% to $61.7 million; net income increased to $23.6 million.
- Free cash flow totaled $15.5 million for the quarter.
- Management emphasized disciplined price increases (1.4% in January) but underscored ongoing investments in growth and team member support, which may be constraining margin improvement going forward.
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