Shares declined 2.2% after earnings as investors digested a cautious growth outlook and modest performance, reflecting ongoing headwinds from refranchising-related transitions and limited U.S. volume expansion.

• System-wide sales expected to grow 2%–4% in 2026, driven primarily by international franchise expansion rather than U.S. volume growth.
• Refranchising deals in Japan and the Western U.S. continue to shift sales mix toward franchisees, increasing franchise sales contribution from 25% to 42%.
• U.S. network utilization remains low at 25%, indicating underleveraged capacity despite partnerships with Walmart and Target.
• Margin improvements driven by cost-saving initiatives and logistics outsourcing, helping partially offset inflationary pressures like rising fuel costs.
• Capital expenditures significantly reduced in Q1 to support positive free cash flow for the year, though growth remains cautious amid a dynamic macroeconomic environment.