Overview
- Fourth-quarter results topped forecasts with adjusted EPS of $0.25 and revenue of $2.98 billion, while comparable sales fell 2.5% on a 3.2% drop in transactions and operating margins narrowed.
- For 2026, the company expects roughly flat same‑store sales, plans 1%–2% menu price increases, and warns margins will be pressured by higher beef and labor costs, offering no revenue or EPS guidance.
- Shares fell 7% to 11% in extended and premarket trading after the guidance, and the stock is down about one-third over the past year.
- Expansion remains aggressive with 350–370 openings targeted in 2026, including 10–15 international partner-run locations, after Q4 added 132 company-owned restaurants and seven licensed units.
- Revenue growth was helped by new units and $27 million of gift-card breakage, as management rolls out more limited-time items such as the returning Chicken al Pastor, high‑protein offerings like $3.80 protein cups, and a refreshed loyalty program to counter softer demand, especially among lower‑income diners.