Waiting for Good-Dough; Leaning on Menu Innovation, Pixar Collaboration and Sales Transfer to Maintain Guide - Remain Neutral

Research evidence excerpt

Waiting for Good-Dough; Leaning on Menu Innovation, Pixar Collaboration and Sales Transfer to Maintain Guide - Remain Neutral

nts in the recovering to $221.7MM next year as sales and margin slightly recover.

U.S. and international markets focused

on delivery and carryout. The company

Upside Scenario owns and operates restaurants in the U.S.

■ Recovery in North America same-store sales given new product launches, digital and UK, franchises restaurants in the U.S.

revamp and media strategy, leading to improving investor sentiment. and international markets and operates

■ Restaurant margins show stronger improvement due to above-noted sales trends commissaries that provide dough, cheese

or other efficiencies/operational efforts, leading to earnings upside. and other ingredients to restaurants in

■ Unit openings strengthen in North America and net unit growth improves given the the U.S. and the UK. The company had

above sales and margin trends, increasing system sales trends. 3,523 North American (462 company-

owned, 3,061 franchised) and 2,560

international (13 company-owned) units Downside Scenario at the end of 2025.

■ Same-store sales decline further given economic disruption, promotional missteps

and/or competitive pressures, dragging sales and earnings lower.

■ Further unit closures if sales do not recover and economics remain challenging,

weighing on system sales, advertising spend and investor sentiment.

■ Heightened commodity and/or labor inflation pressure restaurant and commissary

margins, reducing earnings and potentially unit openings.

■ Sales weakness requires continued financial support (advertising, franchise

incentives) from the company beyond 2026, weighing on earnings.

BTIG, LLC Peter Saleh (212) 527-3567 www.btig.com