Overview
- For fiscal Q2 ended Jan. 30, revenue was $874.8 million (down 7.9% year over year), comparable restaurant sales fell 7.1%, traffic declined about 10.1%, and net income was $1.3 million.
- Management highlighted operational gains including a 4.28 Google star rating, the highest since 2020, alongside rising food, service, and value scores.
- The loyalty program now counts roughly 11 million members and accounts for more than 40% of tracked sales, with loyalty traffic holding up better than nonmembers.
- Cost actions include targeting $20–25 million in annualized G&A savings, cutting second-half advertising by $13–17 million, and recording a $2.6 million restructuring charge.
- Capital spending guidance was lowered to $105–$115 million, retail margins were pressured by a 340-basis-point COGS increase tied to tariffs and discounting, a $400,000 store impairment was taken, and the company expects about $46 million in Q3 net cash from litigation settlements to support liquidity.