Q1 net income swings to $125.8M on $160.6M Spyce sale gain as same-store sales plunge 12.8%

Filed May 8, 2026 · Period ending March 29, 2026 · Compared to 10-Q May 8, 2025 · ~2 min read

Key Changes

• high

  Net income swung to $125.8M from -$25.0M prior year, but operating loss widened 20.4% to -$34.3M. The $156.7M net below-the-line improvement (non-operating/other +$158.3M, income tax -$1.7M) came entirely from the $160.6M pre-tax gain on selling Spyce and Infinite Kitchen automation tech to Wonder for $186.4M ($100M cash, $86.4M Wonder preferred stock). Core operations deteriorated.

  MD&A: Spyce sale; Notes: Spyce disposal verify on EDGAR →
• high

  Same-store sales collapsed to -12.8% from -3.1% prior year, driven by 11.2% traffic decline and 2.3% negative product mix. Menu pricing power evaporated (0.7% benefit vs 3.4% prior year). Management cites weather and prior-year Ripple Fries launch, but the 10-percentage-point deterioration signals broader demand weakness.

  MD&A: Same-store sales verify on EDGAR →
• high

  Food, beverage, and packaging costs as % of revenue reversed direction, rising 2.6 percentage points to 29.0% (vs a 1.2pp decrease prior year). Company increased protein portions and promotional activity to defend traffic, while pricing power weakened. Margin pressure intensifying.

  MD&A: Food costs verify on EDGAR →