What changed
EPS of $0.33 matched adjusted consensus, flat YoY. Revenue of $3.3B beat estimates on 2.2% comp sales growth, driven by 1.0% transaction improvement and 1.2% check. Guidance raised for full-year comp sales, but operating margin fell 250bps to 15.7% as food (beef/freight inflation) and labor costs (wage inflation, bonuses) pressured profitability. Key headwind: cost inflation outpaced menu price benefits, squeezing restaurant-level margin to 25.2% from 27.4%.
Why it matters
EPS of $0.33 matched adjusted consensus, flat YoY. Revenue of $3.3B beat estimates on 2.2% comp sales growth, driven by 1.0% transaction improvement and 1.2% check. Guidance raised for full-year comp sales, but operating margin fell 250bps to 15.7% as food (beef/freight inflation) and labor costs (wage inflation, bonuses) pressured profitability. Key headwind: cost inflation outpaced menu price benefits, squeezing restaurant-level margin to 25.2% from 27.4%.
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Aug 05, 2026 07:23 AM ET