Financials - June 2026
Yum! Brands, Inc. Enters into Agreements to Sell Pizza Hut for $2.7 Billion
June 16, 2026
Pizza Hut, excluding Mainland China, to be Acquired by LongRange Capital; Pizza Hut in Mainland China to be Acquired by Yum China Holdings, Inc. in Separate Transactions
Key highlights:
Positions Yum! Brands for Long-Term Growth and Shareholder Value Creation
Completes Yum!’s Previously Announced Strategic Review of Pizza Hut
Yum! Brands and Yum China Partner on KFC System Sales Growth Incentives
Board Approves Incremental $4 Billion Share Repurchase Authorization
Louisville, KY (RestaurantNews.com) Yum! Brands, Inc. (NYSE: YUM) (“Yum!” or the “Company”) today announced that it has entered into definitive agreements to sell Pizza Hut for $2.7 billion in the aggregate, subject to certain purchase price adjustments.
Pizza Hut, excluding Mainland China (“Pizza Hut Ex-China”), will be acquired by LongRange Capital (“LongRange”), a private equity firm with a customer-centric and operationally oriented approach, and Pizza Hut in Mainland China (“Pizza Hut China”) will be acquired by Yum China Holdings, Inc. (NYSE: YUMC; HKEX: 9987) (“Yum China”).
Following a comprehensive review of strategic options for Pizza Hut that commenced in November 2025, Yum!’s leadership team and Board of Directors determined the sale provides the strongest path to maximize shareholder value while providing Pizza Hut an ownership structure tailored to its distinct markets, competitive strengths and long-term priorities under leadership with significant relevant QSR experience.
“These transactions enable Yum! to be a more focused company that continues to leverage scale, technology and talent to accelerate our raising the B.A.R. priorities and deliver sustained value for our stakeholders,” said Chris Turner, Chief Executive Officer, Yum! Brands. “Under LongRange and Yum China, Pizza Hut will be well positioned for future growth with ownership that brings deep expertise in the restaurant industry. Pizza Hut is one of the most iconic restaurant brands in the world, and we are proud of the important role it has played in Yum!’s history. Pizza Hut was built by the passion and dedication of our team members, employees and franchisees, and we’re excited for the next chapter.”
Yum! Brands and Yum China remain fully committed to a strong partnership that unlocks growth in their joint businesses going forward. The companies have agreed to certain financial incentives that will generate value for both companies’ shareholders should KFC China’s future system sales growth rates accelerate. In addition, the companies will work together to further advance long-term growth plans for Taco Bell in Mainland China.
Transaction Details
Under the terms of the agreement with LongRange, Yum! will sell Pizza Hut Ex-China to LongRange for approximately $1.5 billion. Additionally, Yum! has the opportunity to receive an earn-out of $75 million by 2030.
Under the terms of the agreement with Yum China, Yum! will sell Pizza Hut China to Yum China for approximately $1.2 billion.
Across the two transactions, Yum! expects to receive approximately $2.3 billion of net proceeds after taxes, closing adjustments and transaction-contingent fees, excluding the earn-out. Yum! additionally expects to incur one-time expenses of approximately $85 million during the remainder of 2026 to effectuate the separation.
Yum! will continue to provide Byte by Yum!, its proprietary technology platform, to Pizza Hut Ex-China. Additionally, Yum! will provide certain corporate services to Pizza Hut Ex-China, under a transition services agreement to support an orderly separation. Yum! expects the fees received for these services in 2026 to offset Yum! corporate G&A expenses historically allocated to Pizza Hut.
Management will provide additional information regarding the financial impact of the transaction, including any related updates to its 2026 financial outlook, during Yum!’s second-quarter earnings conference call scheduled for July 30, 2026.
The transactions have been unanimously approved by Yum!’s Board of Directors. Yum! expects both transactions to close in the third quarter of 2026, subject to customary closing conditions, including receipt of required regulatory approvals. Following the close of the transactions, Yum! will no longer report on the Pizza Hut division.
Barclays and Goldman Sachs are serving as financial advisers to Yum!. Weil, Gotshal & Manges LLP and Mayer Brown LLP are serving as legal advisers to Yum!.
Share Repurchase Program
The net after-tax proceeds will be used in accordance with the Company’s capital allocation strategy, including investing in the business and returning excess capital to shareholders. Concurrent with approval of the transactions, Yum!’s Board of Directors approved an incremental $4 billion authorization for the repurchase of common stock.
About Yum! Brands
Yum! Brands, Inc., and its subsidiaries franchise or operate more than 63,000 restaurants in 155 countries and territories under its iconic brands – KFC, Taco Bell, Pizza Hut and Habit Burger & Grill. KFC, Taco Bell and Pizza Hut are global leaders in the chicken, Mexican-inspired food and pizza categories, respectively. Habit is a fast-casual concept known for fresh, cooked-to-order food. Fueled by Yum!’s Recipe for Good Growth, KFC, Taco Bell and Pizza Hut led Entrepreneur’s 2026 Franchise 500 rankings and its Top Global Franchises 2025 list. In 2026, Yum!’s unrivaled culture and talent led it to be named one of TIME magazine’s list of Best Companies for Future Leaders for the third consecutive year.
View source version at Yum! Brands
Red Robin Gourmet Burgers, Inc. Announces Two Additional Refranchising Agreements
June 16, 2026
Red Robin Announces the Sale of 86 Restaurants for $72.5 million to Support “First Choice Plan”
Englewood, CO (RestaurantNews.com) Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) (“Red Robin” or the “Company”), a casual dining restaurant chain serving an innovative selection of high-quality gourmet burgers in a family-friendly atmosphere, has entered into two separate refranchising agreements with experienced multi-unit restaurant operators for the sale of 86 company-owned units for $72.5 million. These units will continue operating under the same Red Robin brand guests love and trust.
Under the terms of the agreements and following closing, the new franchisees will acquire and operate restaurants in the following markets:
Op Burgers, LLC will acquire 69 units based in Kentucky, Indiana, Maryland, Ohio, North Carolina, Pennsylvania, South Carolina and Virginia for $62.5 million.
Kuber Oregon, LLC and Kuber Washington, LLC (“Kuber”) will acquire 17 units based in Oregon and Washington for $10 million.
These transactions follow the recent announcement of a refranchise transaction of 30 locations to Evergreen Dining, LLC announced on May 28, 2026. Together, these three transactions (which remain subject to customary due diligence, adjustments, and closing conditions) represent a combined transaction value of approximately $96 million. The Company intends to use the net proceeds from these transactions to pay down outstanding debt and execute on the refinancing priorities outlined in its “First Choice Plan.”
Dave Pace, Red Robin’s President and Chief Executive Officer said, “Strengthening our financial foundation remains a key priority for the Red Robin team and these transactions are a major step forward toward achieving our goal. Our partnerships with Op Burgers and Kuber introduce experienced operators into the Red Robin system. These teams bring proven track records of delivering exceptional guest experiences and the demonstrated ability to grow into the future.”
Pace continued, “These new partnerships with Op Burgers, Kuber, and Evergreen Dining will provide Red Robin with the financial flexibility needed to reduce debt, support our refinancing objectives and accelerate investment system-wide. I look forward to what we will accomplish together for the benefit of our guests, team members and investors.”
Op Burgers said, “We have long been impressed by Red Robin’s commitment to great food and great service. We look forward to partnering with the dedicated team members at each location to strengthen and expand their position as the First Choice in these communities.”
Kuber said, “Sharing meals is the best way to bring people together. We have always admired Red Robin’s commitment to fostering the community spirit at each of its restaurants. We are excited to work together with these talented teams to welcome even more guests to these Pacific Northwest locations.”
These transactions are expected to close in the second half of 2026, subject to customary due diligence, adjustments, and closing conditions. Further details are available in the Company’s Form 8-K to be filed with the Securities and Exchange Commission. The Company expects to update guidance following the close of these transactions.
About Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB)
Red Robin Gourmet Burgers, Inc. (RedRobin.com), is a casual dining restaurant chain founded in 1969 that operates through its wholly owned subsidiary, Red Robin International, Inc., and under the trade name, Red Robin Gourmet Burgers and Brews. We believe nothing brings people together like burgers and fun around our table, and no one makes moments of connection over craveable food more memorable than Red Robin. We serve a variety of burgers and mainstream favorites to Guests of all ages in a casual, playful atmosphere. In addition to our many burger offerings, Red Robin serves a wide array of salads, appetizers, entrees, desserts, signature beverages and Donatos® pizza at select locations. It’s easy to enjoy Red Robin anywhere with online ordering available for to-go, delivery and catering. Sign up for the royal treatment by joining Red Robin Royalty® today and enjoy Bottomless perks and delicious rewards across nearly 500 Red Robin locations in the United States and Canada, including those operating under franchise agreements. Red Robin… YUMMM®!
About Op Burgers
Op Burgers is a portfolio company of Alexandrite Management, a special situations private investment firm focused on building and growing enduring, profitable companies. Op Burgers’ management team are experienced multi-unit restaurant operators who are highly familiar with the restaurant and franchisee landscapes in these regions.
About Kuber
Kuber Management team is led by Aman Sharma, a seasoned franchise operator with a proven track record in the hospitality, travel center, and food service sectors. He possesses extensive experience in establishing and scaling multiple brands and businesses from inception in multiple states.
View source version at Red Robin
FBG Bid Co. Acquires FAT Brands Assets for $595 Million
June 16, 2026 10:20 ET
LOS ANGELES, June 16, 2026 (GLOBE NEWSWIRE) -- FBG Bid Co. announced today that it has completed the acquisition of substantially all assets of certain subsidiaries of FAT Brands Inc. for approximately $595 million. The transaction included 13 restaurant brands spanning more than 1,700 locations worldwide: Round Table Pizza®, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Great American Cookies, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Native Grill & Wings, and Ponderosa and Bonanza Steakhouses, in addition to the Georgia-based manufacturing facility that supports Great American Cookies and Pretzelmaker. The transaction was approved by the United States Bankruptcy Court for the Southern District of Texas following a court-supervised sale process.
Latham & Watkins LLP, GLC Advisors & Co., LLC, and Huron Consulting Group LLC served as advisors to FAT Brands, and White & Case LLP and Houlihan Lokey Capital, Inc. served as advisors to FBG Bid Co.
For more information on FAT Brands, visit www.fatbrands.com.
About FAT (Fresh. Authentic. Tasty.) Brands
FAT Brands is a leading global franchising company that strategically develops and grows fast casual, quick-service, and casual dining restaurant concepts around the world. The Company currently operates 13 restaurant brands: Round Table Pizza®, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Great American Cookies, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Native Grill & Wings, Pretzelmaker, and Ponderosa and Bonanza Steakhouses, and franchises and owns over 1,700 units worldwide. For more information on FAT Brands, please visit http://www.fatbrands.com.
View source version at FAT Brands
Twin Peaks Enters New Era Under Summit Acquisitions, LLC
June 15, 2026
Strategic advisory group formed to position brand for financial stability and long-term growth
Dallas, TX (RestaurantNews.com) Twin Peaks Restaurant today announced that Summit Acquisitions, LLC, has assumed a strategic advisory role on behalf of the brand’s bondholders. Summit is a group of Twin Peaks franchise operators, including 3BMgmnt Inc., JEB Food Group, and Operadora 2 Montes, who have collectively built and scaled lodges across the U.S. and internationally, bringing firsthand knowledge of the brand’s operations, guests, and franchise system. Twin Peaks will no longer be associated with FAT Brands and will return to its previous status as a privately held company, operating as Summit Twin Hospitality I, LLC.
The brand’s existing corporate leadership team, including President and Chief Operating Officer Roger Gondek, Chief Marketing Officer Melissa Fry, Chief People Officer Lexi Burns, and Chief Financial Officer Scott Gray, remains fully in place to lead and manage the company. No staffing reductions are planned; the organization expects to add team members as it continues its growth momentum via new lodge openings and franchise expansion. The transition also reflects a deepened commitment to alignment across the Twin Peaks system, with corporate and franchise partners working more cohesively than ever toward shared goals.
“This transition gives our team the foundation we’ve needed to execute on the vision we’ve always had for this brand,” said Gondek. “We have a strong system, exceptional operators, and enviable guest loyalty, and now we have the financial footing to match. The best days for Twin Peaks are ahead.”
The announcement comes at a moment of significant momentum for Twin Peaks. The brand’s scratch-made kitchen, 29° draft beer program, and signature sports viewing experience continue to drive strong guest engagement, with ongoing menu innovation and an expanding cocktail and beverage portfolio reinforcing Twin Peaks’ position as the ultimate sports lodge. Major sports programming, including the 2026 FIFA World Cup, NFL, NBA, MLB, and NHL playoffs, UFC, and boxing, keep Twin Peaks at the center of fans’ biggest watch-party moments throughout the year.
Twin Peaks steps into this next phase with more than 115 locations and a growing development pipeline. The brand recently opened a new lodge in Omaha, Nebraska, signed an area development agreement with New London Hospitality to expand into Connecticut, and executed an area development agreement to bring Twin Peaks to several South Texas cities, including Brownsville, South Padre Island, and Laredo. Its newest lodge is set to debut in Kissimmee, Florida on June 29.
Twin Peaks lodges are open and operating as usual across all locations.
Kratos Capital and Kratos Capital Markets acted as exclusive financial advisor to Summit Acquisitions, LLC in connection with this transition.
About Twin Peaks
Founded in 2005 in the Dallas suburb of Lewisville, Twin Peaks operates more than 115 locations in the U.S. and Mexico. Known as the ultimate sports lodge, Twin Peaks delivers a one-of-a-kind experience with made-from-scratch food, the coldest 29° beer in the game, and wall-to-wall TVs showcasing every major sporting event. From the moment guests walk in, they’re welcomed by friendly Twin Peaks Girls and a lively atmosphere built for sports fans. The menu features scratch-made favorites including smashed, seared-to-order burgers, in-house smoked brisket, and signature wings, alongside a full cocktail and beverage program. For more information, visit TwinPeaksRestaurant.com.
About Summit Twin Hospitality I, LLC
Summit Twin Hospitality I, LLC is the new operating entity for Twin Peaks Restaurant. Formed as part of the brand’s planned transition to private ownership, Summit Twin Hospitality I, LLC reflects the commitment of Twin Peaks’ franchise community to the brand’s long-term success and growth.
About Summit Acquisitions, LLC
Summit Acquisitions, LLC is a strategic advisory group formed by three of Twin Peaks’ experienced franchise operator groups, including 3BMgmnt Inc., JEB Food Group, and Operadora 2 Montes. Acting on behalf of the brand’s bondholders, Summit works alongside Twin Peaks’ leadership team to advance the brand’s operations and long-term growth strategy.
View source version at Twin Peaks
Nathan's Famous, Inc. Reports Year End and Fourth Quarter Results
June 09, 2026 06:30 ET
JERICHO, N.Y., June 09, 2026 (GLOBE NEWSWIRE) -- Nathan's Famous, Inc. (“Nathan’s”, the “Company”, “we”, “us” or “our”) (NASDAQ:NATH) today reported results for its fiscal year and fourth quarter ended March 29, 2026.
Effective June 9, 2026, as permitted under the Merger Agreement (as defined below) the Board of Directors declared its quarterly cash dividend for fiscal 2027 of $0.50 per share, which is payable on June 30, 2026 to shareholders of record at the close of business on June 22, 2026.
For the fiscal year ended March 29, 2026:
Revenues were $162,063,000 for the fifty-two weeks ended March 29, 2026 (“fiscal 2026”) as compared to $148,182,000 for the fifty-two weeks ended March 30, 2025 (“fiscal 2025”);
Income from operations was $30,102,000 for fiscal 2026 as compared to $36,497,000 for fiscal 2025;
Adjusted EBITDA1 for fiscal 2026, a non-GAAP financial measure, was $36,314,000 as compared to $39,206,000 for fiscal 2025;
Income before provision for income taxes was $28,190,000 for fiscal 2026 as compared to $32,761,000 for fiscal 2025;
Net income was $20,020,000 for fiscal 2026 as compared to $24,026,000 for fiscal 2025; and
Earnings per diluted share was $4.85 per share for fiscal 2026 as compared to $5.87 per share for fiscal 2025.
For the quarter ended March 29, 2026:
Revenues were $35,066,000 for the thirteen weeks ended March 29, 2026 (“fourth quarter fiscal 2026”) as compared to $30,787,000 for the thirteen weeks ended March 30, 2025 (“fourth quarter fiscal 2025”);
Income from operations was $4,682,000 for the fourth quarter fiscal 2026 as compared to $6,368,000 for the fourth quarter fiscal 2025;
Adjusted EBITDA1 for the fourth quarter fiscal 2026, a non-GAAP financial measure, was $7,590,000 as compared to $7,096,000 for the fourth quarter fiscal 2025;
Income before provision for income taxes was $4,164,000 for the fourth quarter fiscal 2026 as compared to $5,819,000 for the fourth quarter fiscal 2025;
Net income was $2,809,000 for the fourth quarter fiscal 2026 as compared to $4,235,000 for the fourth quarter fiscal 2025; and
Earnings per diluted share was $0.68 per share for the fourth quarter fiscal 2026 as compared to $1.03 per share for the fourth quarter fiscal 2025.
The Company also reported the following:
License royalties were $37,417,000 in fiscal 2026, comparable to the prior year, reflecting the stability of the Company’s licensing business and the steady royalty income earned under the Company’s retail and foodservice program with Smithfield Foods, Inc.
In the Branded Product Program, which features the sale of Nathan’s hot dogs to the foodservice industry, sales increased by $13,940,000 to $105,768,000 during fiscal 2026 as compared to $91,828,000 during fiscal 2025. The volume of hot dogs sold by the Company increased by approximately 1%. Our average selling price, which is partially correlated to the beef markets, increased by approximately 12% compared to the prior year period. Income from operations decreased by $2,851,000 to $4,285,000 during fiscal 2026 as compared to $7,136,000 during fiscal 2025 due primarily to a 19% increase in the cost of beef and beef trimmings.
Sales from Company-owned restaurants were $12,508,000 during fiscal 2026 as compared to $12,714,000 during fiscal 2025. Restaurant sales were primarily impacted by lower foot traffic attributable to unfavorable weather conditions, particularly at our Coney Island locations during the key summer season.
Revenues from franchise operations were $4,317,000 during fiscal 2026 as compared to $4,148,000 during fiscal 2025. Total royalties were $3,897,000 during fiscal 2026 as compared to $3,767,000 during fiscal 2025. Franchise restaurant sales increased by $3,212,000 to $70,117,000 as compared to $66,905,000 for fiscal 2025.2 Total franchise fee income, including cancellation fees, was $420,000 during fiscal 2026 as compared to $381,000 during fiscal 2025. Twenty-three franchised locations opened and thirty-two franchised locations closed during fiscal 2026.
Advertising revenue was $2,053,000 during fiscal 2026 as compared to $2,074,000 during fiscal 2025.
On February 27, 2026, the Company paid the $0.50 per share regular cash dividend that was declared by the Board of Directors effective February 5, 2026 to shareholders of record at the close of business on February 17, 2026.
As previously announced, on January 20, 2026, Nathan's entered into an Agreement and Plan of Merger (the "Merger Agreement") with Smithfield Foods, Inc. ("Smithfield Foods") and Boardwalk Merger Sub Inc. under which Smithfield Foods will acquire Nathan's for $102.00 in cash per share of Nathan's common stock for a total enterprise value of approximately $450 million, and Nathan's will become a privately-held company. Completion of the transaction remains contingent upon meeting several conditions specified in the Merger Agreement. These include securing approval from the holders of a majority of Nathan’s outstanding stock, obtaining clearance from the Committee on Foreign Investment in the United States (CFIUS), and fulfilling other closing requirements. However, given the impact of the partial government shutdown on statutory deadlines for CFIUS’s review process, our anticipated closing timeline has shifted, and we now expect the transaction to close in the second half of 2026.
View full version at Nathan’s
Cracker Barrel Reports Third Quarter Fiscal 2026 Results and Updates Fiscal 2026 Outlook
Jun 09, 2026, 16:05 ET
Company increases revenue and adjusted EBITDA1,2 guidance
LEBANON, Tenn., June 9, 2026 /PRNewswire/ -- Cracker Barrel Old Country Store, Inc. ("Cracker Barrel" or the "Company") (Nasdaq: CBRL) today reported its financial results for the third quarter of fiscal 2026 ended May 1, 2026.
Cracker Barrel President and Chief Executive Officer Julie Masino said, "Our initiatives to improve operations, deepen guest connection, and enhance profitability continue to gain traction, with strong execution from our teams driving third quarter results that exceeded expectations. We remain focused on serving delicious food and delivering experiences guests love and believe we are well-positioned to sustain this new momentum."
Third Quarter Fiscal 2026 Highlights
Total revenue was $797.4 million. Compared to the prior year quarter, total revenue decreased 2.9%.
Compared to the prior year quarter, comparable store restaurant sales decreased 2.6%, and comparable store retail sales decreased 1.8%.
GAAP earnings per diluted share were $1.90, and adjusted1 earnings per diluted share were $0.29.
GAAP net income was $42.8 million compared to the prior year quarter GAAP net income of $12.6 million. The current year GAAP net income results include a $47.4 million benefit related to a settlement agreement regarding interchange fee litigation.
Adjusted EBITDA1 was $40.3 million compared to the prior year quarter adjusted EBITDA1 of $48.1 million.
Balance Sheet & Capital Allocation
During the third quarter, the Company received $47.4 million, net of legal fees, pursuant to a settlement agreement resolving interchange fee litigation. This amount is recorded in the litigation settlement income line on the Consolidated Income Statement.
The Company ended the third quarter with total debt of $486.6 million, comprised of $149.9 million of short-term debt related to its 0.625% Convertible Senior Notes due June 2026 and $336.8 million of long-term debt related to its 1.75% Convertible Senior Notes due 2030, with no outstanding borrowings on its credit facility.
The Company intends to pay the $149.9 million of short-term debt related to its 0.625% Convertible Senior Notes by its maturity in June 2026 by drawing on its existing revolving credit facility. At the end of the third quarter, the Company had approximately $541.3 million in available capacity under its credit facility.
The Company announced that its Board of Directors declared a quarterly dividend of $0.25 per share of the Company's common stock. The quarterly dividend is payable on August 12, 2026 to shareholders of record as of July 17, 2026.
Fiscal 2026 Outlook
The Company provided the following updated outlook for fiscal 2026:
Total revenue of $3.27 billion to $3.30 billion (vs. previous outlook of $3.24 billion to $3.27 billion)
Adjusted EBITDA1 of $120 million to $125 million2 (vs. previous outlook of $85 million to $100 million2)
Commodity inflation in the low 2% range (vs. previous outlook of 2.0% to 2.5%)
Hourly wage inflation in the low 2% range (vs. previous outlook of 2.5% to 3.0%)
Capital expenditures of $105 million to $115 million (no change vs. previous outlook)
2 new Cracker Barrel stores, both of which have opened (no change vs. previous outlook)
1 EBITDA, adjusted net income, adjusted EBITDA, and adjusted earnings per diluted share are non-GAAP financial measures. For definitions of these non-GAAP measures and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures, please refer to the Reconciliation of GAAP-Basis Operating Results to Non-GAAP Operating Results section of this release.
2 The Company has determined to provide guidance focused on adjusted EBITDA1 because the Company believes it will be more useful to investors to evaluate the Company's performance prior to the impact of depreciation, taxes, impairment charges, and other items that management believes are not reflective of the Company's current operations. The Company is not able to reconcile the forward-looking estimate of adjusted EBITDA1 set forth above to a forward-looking estimate of net income, the most directly comparable estimated measure calculated in accordance with GAAP, without unreasonable efforts because the Company is unable to predict, forecast or determine the probable significance of certain items impacting these estimates, including interest expense, taxes, impairment charges and share-based compensation, with a reasonable degree of accuracy. Accordingly, the most directly comparable forward-looking GAAP estimate is not provided.
View full version at Cracker Barrel
CAVA Group Reports First Quarter 2026 Results
May 19, 2026 4:10 PM Eastern Daylight Time
Year Over Year CAVA Revenue Growth of 32.2% Including Same Restaurant Sales of 9.7% Driven by Guest Traffic Growth of 6.8%
20 Net New CAVA Restaurant Openings During Quarter
First Quarter 2026 CAVA Restaurant-level Profit Margin of 25.1%
WASHINGTON--(BUSINESS WIRE)--CAVA Group, Inc. (NYSE: CAVA) (“CAVA Group” or the “Company”), the category-defining Mediterranean fast-casual restaurant brand that brings heart, health, and humanity to food, today announced financial results for its fiscal first quarter ended April 19, 2026.
“Amid today's broader macroeconomic environment and geopolitical uncertainty, our first quarter results reflect our position as a clear industry leader and our ability to meet the moment for the modern consumer," said Brett Schulman, Co-Founder and CEO. "First quarter same restaurant sales grew 9.7%, including traffic growth of 6.8%, and we opened 20 net new restaurants during the quarter, with recent new market entries across the Midwest in Cincinnati, St. Louis, and Columbus. These results, which include the lap of strong prior year comparisons, speak to the structural strength of our business, the resonance of our compelling value proposition, and our position as the dominant leader in Mediterranean – all of which fuel our confidence to sustain this momentum going forward."
Fiscal First Quarter 2026 Highlights:
CAVA Revenue grew 32.2% to $434.4 million as compared to $328.5 million in the prior year quarter and 69.5% as compared to the first quarter of fiscal 2024.
Net New CAVA Restaurant Openings of 20, bringing total CAVA Restaurants to 459, a 20.2% increase in total CAVA Restaurants year over year.
Same Restaurant Sales increased 9.7%, including Guest Traffic growth of 6.8%.
AUV of $3.0 million as compared to $2.9 million in the prior year quarter.
CAVA Restaurant-Level Profit of $108.9 million or growth of 32.3% over the prior year quarter, with CAVA Restaurant-Level Profit Margin of 25.1%.
Digital Revenue Mix was 39.9%.
Net Income of $23.6 million.
Adjusted EBITDA1 grew 37.6% to $61.7 million.
Year to date net cash provided by operating activities of $64.1 million with Free Cash Flow1 of $15.5 million.
Fiscal First Quarter 2026 Review:
CAVA Revenue was $434.4 million, an increase of 32.2% compared with the first quarter of fiscal 2025. The increase was primarily driven by 92 Net New CAVA Restaurant Openings during or subsequent to the first quarter of fiscal 2025, which are exceeding our performance expectations, and Same Restaurant Sales of 9.7%. Same Restaurant Sales increased 6.8% from Guest Traffic and 2.9% from menu price and product mix.
CAVA Restaurant-Level Profit Margin was 25.1%, flat to the first quarter of fiscal 2025 as increased costs associated with a higher mix of third-party delivery and incremental wage investments were offset by leverage from higher sales.
General and administrative expenses were $51.6 million, or 11.8% of revenue, as compared to $41.4 million, or 12.5% of revenue, in the first quarter of fiscal 2025. General and administrative expenses, excluding equity-based compensation and executive transition costs1, were $43.3 million, or 9.9% of revenue, as compared to $34.7 million, or 10.5% of revenue, in the first quarter of fiscal 2025. The decrease was primarily due to leverage from higher sales, partially offset by investments to support future growth and higher performance-based incentive compensation.
Net income was $23.6 million, or 5.4% of revenue compared to $25.7 million in the first quarter of fiscal 2025. The decrease in Net Income was due to a lower tax benefit associated with equity-based compensation resulting in a higher effective tax rate, and higher depreciation and amortization, partially offset by improved operating performance as noted below.
Adjusted EBITDA1 was $61.7 million, or 14.1% of revenue, an increase of $16.9 million, or 37.6%, compared to the first quarter of fiscal 2025. The increase was primarily driven by the increase in Same Restaurant Sales, the number of and continued strength in the performance of Net New CAVA Restaurant Openings during or subsequent to the first quarter of fiscal 2025, and leverage in general and administrative expenses.
View full version at CAVA
Red Robin Gourmet Burgers, Inc. Reports Results for the Fiscal First Quarter Ended April 19, 2026
May 19, 2026, 16:05 ET
ENGLEWOOD, Colo., May 19, 2026 /PRNewswire/ -- Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) ("Red Robin" or the "Company"), a casual dining restaurant chain serving an innovative selection of high-quality gourmet burgers in a family-friendly atmosphere, today reported financial results for the fiscal first quarter ended April 19, 2026.
Chief Executive Officer Comments
"During the first quarter of 2026, we delivered continued progress in traffic trends and restaurant-level profitability at levels we haven't achieved in several years, reflecting the growing momentum behind our First Choice strategic plan," said Dave Pace, Red Robin's President and Chief Executive Officer.
"This performance was driven by the successful launch of our new menu, which reflects a sharper focus on innovation, craveability, and value, along with targeted marketing investments that amplified awareness of our Big Yummm value platform and strengthened guest engagement through more personalized outreach. At the same time, we continued to improve restaurant operations by driving labor efficiencies, simplifying execution, and empowering our Managing Partners to deliver a better overall guest experience."
First Quarter 2026 Commentary
Comparable restaurant revenue decreased 0.6%. This included a 1.6% decrease in guest traffic, and a 1.0% increase in average guest check.
Restaurant level operating profit margin of 14.8%, a 50 basis point improvement from the first quarter of 2025. This improvement was primarily driven by higher average guest check and the benefits of efficiency initiatives offsetting the impact of inflation and lower guest traffic.
Adjusted EBITDA of $27.3 million, a 2.1% decrease from the first quarter of 2025. This decrease was driven by increased marketing costs, partially offset by general and administrative efficiencies.
Balance Sheet and Liquidity
As of April 19, 2026, the Company had outstanding borrowings under its credit facility of $175.7 million and liquidity of approximately $40.8 million, including cash and cash equivalents and available borrowing capacity under its credit facility.
Outlook for Fiscal 2026 and Guidance Policy
The Company is reaffirming its previously issued fiscal 2026 guidance, presented below. The projections are as of this date and the Company assumes no obligation to update or supplement this information.
Comparable Restaurant Revenue growth, excluding deferred loyalty revenue, of 0.5% to 1.5%;
Restaurant level operating profit of approximately 13.0%;
Adjusted EBITDA of $70 million to $73 million;
Capital expenditures of $25 million to $30 million.
Providing income (loss) from operations and net income (loss) guidance is potentially misleading and not practical given the difficulty of projecting event-driven transactional and other non-core operating items. As such, we do not present a reconciliation of forecasted non-GAAP measures to the corresponding GAAP measures.
View full version at Red Robin
