Overview

• Quarterly results fell short of expectations with revenue of $557.4 million versus roughly $562.8 million estimated and adjusted EPS of $0.40 versus $0.92 expected.
• Comparable sales declined 3% as profitability weakened, with net income dropping to $11.4 million from $40.3 million a year earlier and adjusted EBITDA falling to $129.8 million from $151.6 million.
• Shares fell roughly 16% to 18% in after-hours and early Tuesday trading, and analysts cut price targets, including UBS to $25 and Truist to $22.
• Management said early third-quarter comp trends are tracking similar to late Q2 and outlined a marketing reset featuring a fall season pass and a back-to-basics menu debuting in October.
• The company opened three new domestic stores and a second franchise in India and expects at least five additional international franchise openings in the next six months, while warning that inflation and tariffs could pressure demand and limit pricing offsets.