Shares declined 1.9% following the quarter, reflecting investor disappointment with the significant comparable sales decline and ongoing margin pressure amid a challenging operating environment, despite early signs of operational improvements.

• Revenue totaled $161.5 million, while comparable sales fell 12.8%, indicating persistent demand softness.
• Restaurant-level margin contracted to 10%, and the company recorded an adjusted EBITDA loss of $8.1 million.
• The quarter was affected by difficult prior-year comparisons, weather headwinds, and transformation-related execution challenges.
• Early operational improvements were noted, including better throughput, ingredient availability, and reduced quality complaints.
• The national rollout of the new Wraps platform is underway, with initial consumer response positive, but wide-scale impact remains forthcoming.