Portillo's Inc.

Previous wording

Portillo’s serves iconic Chicago street food in high-energy, multichannel restaurants designed to ignite the senses and create memorable dining experiences. Since our founding in 1963 in a small trailer that Dick Portillo called “The Dog House,” we have grown to become a treasured brand with a passionate (some might say obsessed) nationwide following. Our diverse menu features all-American favorites such as Chicago-style hot dogs and sausages, Italian beef sandwiches, char-broiled burgers, fresh chopped salads, crinkle-cut fries, homemade chocolate cake and our signature chocolate cake shake. We create a consumer experience like no other by combining the best attributes of fast-casual and quick-service concepts with an exciting energy-filled atmosphere in a restaurant model capable of generating tremendous volumes. Nearly all of our restaurants were built with double lane drive-thrus and have been thoughtfully designed with a layout that accommodates a variety of access modes including dine-in, carryout, delivery and catering to quickly and efficiently serve our guests. We believe the combination of our craveable food, multichannel sales model, dedication to operational excellence, and distinctive team member-driven culture gives us a competitive advantage.

Current wording

Portillo’s serves iconic Chicago street food in high-energy, multichannel restaurants designed to ignite the senses and create memorable dining experiences. Since our founding in 1963 in a small trailer called “The Dog House,” we have grown to become a treasured brand with a passionate (some might say obsessed) nationwide following. Our diverse menu features all-American favorites such as Chicago-style hot dogs and sausages, Italian beef sandwiches, char-broiled burgers, fresh chopped salads, crinkle-cut fries, homemade chocolate cake and our signature chocolate cake shake. We create a consumer experience like no other by combining the best attributes of fast-casual and quick-service concepts with an exciting energy-filled atmosphere in a restaurant model capable of generating tremendous volumes. Nearly all of our restaurants were built with double lane drive-thrus and have been thoughtfully designed with a layout that accommodates a variety of access modes including dine-in, carryout, delivery and catering to quickly and efficiently serve our guests. We believe the combination of our craveable food, multichannel sales model, dedication to operational excellence, and distinctive team member-driven culture gives us a competitive advantage.

Previous wording

In the quarter ended March 30, 2025, total revenue grew 6.4% or $10.6 million primarily due to new restaurant openings in 2024 and an increase in same-restaurant sales. Same-restaurant sales increased 1.8% during the quarter ended March 30, 2025, compared to a 1.2% same-restaurant sales decline during the quarter ended March 31, 2024. Refer to "Selected Operating Data" section below for definition of Same-Restaurant Sales.

Current wording

In the quarter and two quarters ended June 29, 2025, total revenue grew 3.6% or $6.6 million and 4.9% or $17.2 million, respectively, primarily due to new restaurant openings in 2024 and an increase in same-restaurant sales. Same-restaurant sales increased 0.7% during the quarter ended June 29, 2025, compared to a 0.6% same-restaurant sales decline during the quarter ended June 30, 2024. Same-restaurant sales increased 1.2% during the two quarters ended June 29, 2025, compared to a 0.9% same-restaurant sales decline during the two quarters ended June 30, 2024. Refer to "Selected Operating Data" section below for definition of Same-Restaurant Sales.

Previous wording

In the quarter ended March 30, 2025, commodity inflation was 3.4%, compared to 4.8% for the quarter ended March 31, 2024. Labor, as a percentage of revenue, net increased 0.5% during the quarter ended March 30, 2025, compared to the quarter ended March 31, 2024, primarily due to lower transactions, an increase in benefit expenses, and incremental wage rate increases, partially offset by an increase in our average check and labor efficiencies. We increased certain menu prices by approximately 1.5% during January of 2025 and by approximately 1.0% in April 2025. We will continue to prioritize strategies to drive higher traffic and mix at our restaurants while optimizing returns and retaining our top talent.

Current wording

In the quarter and two quarters ended June 29, 2025, commodity inflation was 1.9% and 2.6%, respectively, compared to 6.9% and 5.9% for the quarter and two quarters ended June 30, 2024, respectively. Labor, as a percentage of revenue, net, increased 0.2% and 0.3% during the quarter and two quarters ended June 29, 2025, respectively, compared to the quarter and two quarters ended June 30, 2024, primarily due to lower transactions, incremental wage rate increases and increased benefit costs, partially offset by a higher average check. In the first half of 2025, we increased certain menu prices by approximately 1.5% in January, 1.0% in April, and 0.7% in June. We will continue to prioritize strategies to drive higher traffic and mix at our restaurants while optimizing returns and retaining our top talent.

Previous wording

No new restaurants were opened during the quarter ended March 30, 2025.

Current wording

No new restaurants were opened during the two quarters ended June 29, 2025. Subsequent to June 29, 2025, we opened one additional restaurant in Tomball, Texas, bringing our total restaurant count to 95, as of the filing of this Quarterly Report on Form 10-Q, including a restaurant owned by C&O of which Portillo’s owns 50% of the equity.

Previous wording

current focus continues to be in the Sunbelt, primarily in Texas, with plans to enter the Atlanta, Georgia and San Antonio, Texas markets in the second half of 2025. Additionally, we plan to open our first in-line, walk-up restaurant format later this year. Simultaneously, we will continue to fill-in existing markets, including Chicagoland and adjacent markets as opportunities come available.

Current wording

In the second half of 2025, we plan to open 12 new restaurants. Our current focus continues to be in the Sunbelt, with plans to continue expanding in Texas as well as enter Atlanta in the second half of 2025. Additionally, we plan to open our first in-line, walk-up restaurant format this year, while simultaneously filling in existing markets, including Chicagoland and adjacent territories as opportunities come available. All our restaurant openings in 2025 are expected to be restaurant of the future ("RoTF 1.0"), except one pick-up only and our first in-line walk-up restaurant. RoTF 1.0 is our 6,250 square foot prototype restaurant with a 47-foot production line that is more efficient to build and also better reflects the way consumers interact with our brand today.

Previous wording

The following table summarizes our results of operations for the quarter ended March 30, 2025 and March 31, 2024 (in thousands):

Current wording

The following table summarizes our results of operations for the quarter and two quarters ended June 29, 2025 and June 30, 2024 (in thousands):

Previous wording

Revenues for the quarter ended March 30, 2025 were $176.4 million compared to $165.8 million for the quarter ended March 31, 2024, an increase of $10.6 million or 6.4%. The increase in revenues was primarily attributed to the opening of ten restaurants in 2024 and an increase in our same-restaurant sales. Restaurants not in our Comparable Restaurant Base (as defined in "Selected Operating Data" below) contributed $7.9 million of the total year-over-year increase. Same-restaurant sales increased 1.8%, or $2.6 million in the quarter. The same-restaurant sales increase was attributable to an increase in average check of 4.9%, partially offset by a 3.1% decrease in transactions. The higher average check was driven by an approximate 4.4% increase in certain menu prices and a 0.5% increase in product mix. To address inflationary cost pressures, we increased select menu prices by approximately 1.5% in January 2025 and by approximately 1.0% in April 2025. For the purpose of calculating same-restaurant sales for the quarter ended March 30, 2025, sales for 74 restaurants that were open for at least 24 full fiscal periods were included in the Comparable Restaurant Base.

Current wording

Revenues for the quarter ended June 29, 2025 were $188.5 million compared to $181.9 million for the quarter ended June 30, 2024, an increase of $6.6 million or 3.6%. The increase in revenues was primarily attributed to the opening of nine restaurants during the second through fourth quarters of 2024 and an increase in our same-restaurant sales. Restaurants not in our Comparable Restaurant Base (as defined in "Selected Operating Data" below) contributed $6.1 million of the total year-over-year increase. Same-restaurant sales increased 0.7%, or $1.1 million in the quarter. The same-restaurant sales increase was attributable to an increase in average check of 2.1%, partially offset by a 1.4% decrease in transactions. The higher average check was driven by an approximate 3.4% increase in certain menu prices, partially offset by a 1.3% decrease in product mix. To address inflationary cost pressures, we increased select menu prices by approximately 1.0% in April 2025 and 0.7% in June 2025. For the purpose of calculating same-restaurant sales for the quarter ended June 29, 2025, sales for 75 restaurants that were open for at least 24 full fiscal periods were included in the Comparable Restaurant Base.

Previous wording

Food, beverage and packaging costs for the quarter ended March 30, 2025 were $61.1 million compared to $57.0 million for the quarter ended March 31, 2024, an increase of $4.1 million or 7.3%. This increase was primarily driven by the opening of ten restaurants in 2024 and a 3.4% increase in commodity prices. As a percentage of revenues, net, food, beverage and packaging costs increased 0.3% during the quarter ended March 30, 2025. The increase was primarily due to an increase in certain commodity prices, partially offset by an increase in average check.

Current wording

Food, beverage and packaging costs for the two quarters ended June 29, 2025 was $124.9 million compared to $118.7 million for the two quarters ended June 30, 2024, an increase of $6.2 million or 5.2%. This increase was primarily driven by a 2.6% increase in commodity prices and the opening of ten restaurants in 2024. As a percentage of revenues, net, food, beverage and packaging costs increased 0.1% during the two quarters ended June 29, 2025. The increase was primarily due to an increase in certain commodity prices, partially offset by an increase in average check.

Previous wording

Labor expenses for the quarter ended March 30, 2025 were $46.9 million compared to $43.3 million for the quarter ended March 31, 2024, an increase of $3.6 million or 8.2%. This increase was primarily driven by the opening of ten restaurants in 2024 and incremental investments to support our team members. As a percentage of revenues, net, labor increased 0.5% primarily due to lower transactions, an increase in benefit expenses, and incremental wage rate increases, partially offset by an increase in our average check and labor efficiencies.

Current wording

Labor expenses for the two quarters ended June 29, 2025 were $95.2 million compared to $89.7 million for the two quarters ended June 30, 2024, an increase of $5.5 million or 6.1%. This increase was primarily driven by the opening of ten restaurants in 2024, an increase in benefit expenses, incremental investments to support our team members, and higher variable-based compensation. As a percentage of revenues, net, labor increased 0.3% primarily due to lower transactions, increased benefit costs, and incremental wage increases, partially offset by labor efficiencies and an increase in our average check.

Previous wording

Occupancy expenses for the quarter ended March 30, 2025 were $10.0 million compared to $9.3 million for the quarter ended March 31, 2024, an increase of $0.7 million or 7.3%, primarily driven by the opening of ten restaurants in 2024. As a percentage of revenues, net, occupancy expenses increased 0.1%.

Current wording

Occupancy expenses for the two quarters ended June 29, 2025 were $20.0 million compared to $18.6 million for the two quarters ended June 30, 2024, an increase of $1.4 million or 7.7%, primarily driven by the opening of ten restaurants in 2024. As a percentage of revenues, net, occupancy expenses increased 0.1%.

Previous wording

Other operating expenses for the quarter ended March 30, 2025 were $21.8 million compared to $19.9 million for the quarter ended March 31, 2024, an increase of $1.9 million or 9.7%, primarily due to the opening of ten restaurants in 2024, and an increase in repairs and maintenance and utilities, partially offset by lower cleaning expenses due to vendor renegotiation. As a percentage of revenues, net, operating expenses increased 0.4%.

Current wording

Other operating expenses for the two quarters ended June 29, 2025 were $43.7 million compared to $39.8 million for the two quarters ended June 30, 2024, an increase of $3.9 million or 9.8%, primarily due to the opening of ten restaurants in 2024, and an increase in repairs and maintenance, utilities, and IT expenses, partially offset by lower cleaning expenses due to vendor renegotiation. As a percentage of revenues, net, operating expenses increased 0.5% primarily due to the aforementioned increases in expenses, partially offset by an increase in our average check.

Previous wording

General and administrative expenses for the quarter ended March 30, 2025 were $18.9 million compared to $18.5 million for the quarter ended March 31, 2024, an increase of $0.4 million or 2.0%. This increase was primarily driven by higher software license fees related to our enterprise resource planning ("ERP") and human capital management ("HCM") system implementations and advertising expenses driven by advertising campaigns in Dallas-Fort Worth and Phoenix markets, partially offset by lower equity-based compensation.

Current wording

General and administrative expenses for the two quarters ended June 29, 2025 were $37.7 million compared to $36.5 million for the two quarters ended June 30, 2024, an increase of $1.2 million or 3.3%. This increase was primarily driven by higher advertising expenses and software license fees related to our enterprise resource planning ("ERP") and human capital management ("HCM") system implementations, partially offset by lower equity-based compensation.

Previous wording

Pre-opening expenses consist primarily of wages, occupancy expenses, which represent rent expense recognized during the period between the date of possession of the restaurant facility and the restaurant opening date, travel for the opening team and other supporting team members, food, beverage, and the initial stocking of operating supplies. All such costs incurred prior to the opening are expensed in the period in which the expense was incurred. Pre-opening expenses can fluctuate significantly from period to period, based on the number and timing of openings and the specific pre-opening expenses incurred for each restaurant. Additionally, restaurant openings in new geographic market areas will experience higher pre-opening expenses than our established geographic market areas, such as the Chicagoland area, where we have greater economies of scale and incur lower travel and lodging costs for our training team.

Current wording

Pre-opening expenses consist primarily of wages, occupancy expenses, which represent rent expense recognized during the period between the date of possession and the restaurant opening date, travel for the opening team and other supporting team members, food, beverage, the initial stocking of operating supplies and legal fees. All such costs incurred prior to the opening are expensed in the period in which the expense was incurred. Pre-opening expenses can fluctuate significantly from period to period, based on the number and timing of openings and the specific pre-opening expenses incurred for each restaurant. Additionally, restaurant openings in new geographic market areas will experience higher pre-opening expenses than our established geographic market areas, such as the Chicagoland area, where we have greater economies of scale and incur lower travel and lodging costs for our training team.

Previous wording

Pre-opening expenses for the quarter ended March 30, 2025 were $0.5 million compared to $1.4 million for the quarter ended March 31, 2024, a decrease of $0.9 million or 64.3%. The decrease was due to the number and timing of activities related to our planned restaurant openings for the quarter ended March 30, 2025 as compared to the quarter ended March 31, 2024.

Current wording

Pre-opening expenses for the quarter ended June 29, 2025 were $1.7 million compared to $2.1 million for the quarter ended June 30, 2024, a decrease of $0.4 million or 19.2%. The decrease was due to the number and timing of activities related to our planned restaurant openings for the quarter ended June 29, 2025 as compared to the quarter ended June 30, 2024.

Previous wording

Depreciation and amortization expense for the quarter ended March 30, 2025 was $7.0 million compared to $6.9 million for the quarter ended March 31, 2024, an increase of $0.1 million or 1.4%. This increase was primarily attributable to incremental depreciation of capital expenditures related to the opening of ten restaurants in 2024.

Current wording

Depreciation and amortization expense for the two quarters ended June 29, 2025 was $14.2 million compared to $14.1 million for the two quarters ended June 30, 2024, an increase of $0.1 million or 0.9%. This increase was primarily attributable to incremental depreciation of capital expenditures related to the opening of ten restaurants in 2024, partially offset by a reduction in depreciation expense due to fully depreciated assets and disposals compared to the prior year period.

Previous wording

Net income attributable to equity method investment for both the first quarters ended March 30, 2025 and March 31, 2024 was $0.2 million.

Current wording

Net income attributable to equity method investment for both the two quarters ended June 29, 2025 and two quarters ended June 30, 2024 was $0.5 million.

Previous wording

Other income, net, for the quarter ended March 30, 2025 was $0.01 million compared to $0.4 million for the quarter ended March 31, 2024, a decrease of $0.4 million or 97.2%. This decrease was primarily driven by an increase in trading losses in the rabbi trust used to fund our deferred compensation plan and reduced sales tax filing discounts due to the new statutory cap implemented in Illinois on January 1, 2025.

Current wording

Other income, net, for the quarter ended June 29, 2025 was $0.3 million compared to $0.4 million for the quarter ended June 30, 2024, a decrease of $0.1 million or 16.2%. This decrease was primarily driven by reduced sales tax filing discounts due to the new statutory cap implemented in Illinois on January 1, 2025, and an increase in loss on sale of assets, partially offset by an increase in trading gains in the rabbi trust used to fund our deferred compensation plan.

Previous wording

Interest expense for the quarter ended March 30, 2025 was $5.7 million compared to $6.5 million for the quarter ended March 31, 2024, a decrease of $0.8 million or 12.0%. This decrease was primarily driven by a lower effective interest rate attributable to the improved lending terms associated with our 2025 Credit Agreement amendment, partially offset by additional borrowings on the revolver facility.

Current wording

Interest expense for the quarter ended June 29, 2025 was $5.7 million compared to $6.6 million for the quarter ended June 30, 2024, a decrease of $0.9 million or 13.3%. This decrease was primarily driven by a lower effective interest rate attributable to the improved lending terms associated with our 2025 Credit Agreement amendment.

Previous wording

Our effective interest rate was 7.02%as of March 30, 2025 and 8.37% as of March 31, 2024.

Current wording

Our effective interest rate was 6.90%as of June 29, 2025 and 8.31% as of June 30, 2024.

Previous wording

The Tax Receivable Agreement liability adjustment was $0.6 million for both the quarters ended March 30, 2025 and March 31, 2024 related to a remeasurement primarily due to activity under equity-based compensation plans.

Current wording

The tax receivable agreement liability adjustment for the two quarters ended June 29, 2025 was $2.5 million compared to $1.0 million for the two quarters ended June 30, 2024. The change was related to a remeasurement primarily due to activity under equity-based compensation plans.

Previous wording

Income tax expense for the quarter ended March 30, 2025 was $1.4 million compared to a benefit of $1.1 million for the quarter ended March 31, 2024, an increase of $2.5 million or 219.6%. Our effective income tax rate for the quarter ended March 30, 2025 was 25.4%, compared to (27.0)% for the quarter ended March 31, 2024. The increase in our effective income tax rate for the quarter ended March 30, 2025 compared to the quarter ended March 31, 2024 was primarily driven by lapping of prior year's reduction in the valuation allowance as a result of the Q1 2024 Secondary Offering.

Current wording

Income tax expense for the quarter ended June 29, 2025 was $3.7 million compared to $3.5 million for the quarter ended June 30, 2024, an increase of $0.2 million or 5.2%. Our effective income tax rate for the quarter ended June 29, 2025 was 26.8%, compared to 29.1% for the quarter ended June 30, 2024. The decrease in our effective income tax rate for the quarter ended June 29, 2025 compared to the quarter ended June 30, 2024 was primarily driven by the decrease in the valuation allowance recorded against a portion of the Company's deferred tax assets as a result of the redemption of LLC units that occurred in the second quarter of 2025.

Previous wording

Net income attributable to non-controlling interests for the quarter ended March 30, 2025 was $0.7 million, compared to net income attributable to non-controlling interests of $0.8 million for the quarter ended March 31, 2024, a decrease of $0.1 million or 13.4%. The decrease in net income attributable to non-controlling interests for the quarter ended March 30, 2025 was primarily due to a decrease in the non-controlling interest holders' weighted average ownership from 21.4% for the quarter ended March 31, 2024 to 14.4% for the quarter ended March 30, 2025, and a decrease in net income for the quarter ended March 30, 2025 compared to the quarter ended March 31, 2024.

Current wording

Net income attributable to non-controlling interests for the quarter ended June 29, 2025 was $1.3 million, compared to net income attributable to non-controlling interests of $2.1 million for the quarter ended June 30, 2024, a decrease of $0.7 million or 35.0%. The decrease in net income attributable to non-controlling interests for the quarter ended June 29, 2025 was primarily due to a decrease in the non-controlling interest holders' weighted average ownership to 9.9% for the quarter ended June 29, 2025 from 15.9% for the quarter ended June 30, 2024.

Previous wording

(c) For the quarter ended March 31, 2024, same-restaurant sales compares the 13 weeks from January 1, 2024 through March 31, 2024 to the 13 weeks from January 2, 2023 through April 2, 2023.

Current wording

(c) For the quarter ended June 30, 2024, same-restaurant sales compares the 13 weeks from April 1, 2024 through June 30, 2024 to the 13 weeks from April 3, 2023 through July 2, 2023. For the two quarters ended June 30, 2024, same-restaurant sales compares the 26 weeks from January 1, 2024 through June 30, 2024 to the 26 weeks from January 2, 2023 through July 2, 2023

Previous wording

The change in same-restaurant sales is the percentage change in year-over-year revenue (excluding gift card breakage) for the comparable restaurant base, which is defined as the number of restaurants open for at least 24 full fiscal periods (the “Comparable Restaurant Base”). For the quarter ended March 30, 2025 and March 31, 2024, there were 74 and 69 restaurants in our Comparable Restaurant Base, respectively. The Comparable Restaurant Base excludes C&O.

Current wording

The change in same-restaurant sales is the percentage change in year-over-year revenue for the comparable restaurant base, which is defined as the number of restaurants open for at least 24 full fiscal periods (the “Comparable Restaurant Base”). For the two quarters ended June 29, 2025 and June 30, 2024, there were 75 and 70 restaurants in our Comparable Restaurant Base, respectively. The Comparable Restaurant Base excludes C&O.

Previous wording

AUV is the total revenue (excluding gift card breakage) recognized in the Comparable Restaurant Base, including C&O, divided by the number of restaurants in the Comparable Restaurant Base, including C&O, by period.

Current wording

AUV is the total revenue recognized in the Comparable Restaurant Base, including C&O, divided by the number of restaurants in the Comparable Restaurant Base, including C&O, by period.

Previous wording

(3) Represents amortization of capitalized cloud-based ERP system implementation costs that are included within general and administrative expenses.

Current wording

(3) Represents amortization of capitalized cloud-based ERP and HCM system implementation costs that are included within general and administrative expenses.

Previous wording

(4) Represents loss on disposal of property and equipment included within other income, net.

Current wording

(4) Represents loss (gain) on disposal of property and equipment included within other income, net.

Previous wording

Our primary sources of liquidity are cash from operations, cash and cash equivalents on hand, and availability under our 2025 Revolver Facility. As of March 30, 2025, we maintained a cash and cash equivalents and restricted cash balance of $12.9 million and had $71.7 million of availability under our 2025 Revolver Facility, after giving effect to $5.3 million in outstanding letters of credit.

Current wording

Our primary sources of liquidity are cash from operations, cash and cash equivalents on hand, and availability under our 2025 Revolver Facility. As of June 29, 2025, we maintained a cash and cash equivalents and restricted cash balance of $16.6 million and had $74.7 million of availability under our 2025 Revolver Facility, after giving effect to $5.3 million in outstanding letters of credit.

Previous wording

As of March 30, 2025, we estimate that our obligation for future payments under the TRA totaled $316.2 million. Amounts payable under the TRA are contingent upon, among other things, (i) generation of future taxable income over the term of the TRA and (ii) future changes in tax laws. If we do not generate sufficient taxable income in the aggregate over the term of the TRA to utilize the tax benefits, then we would not be required to make the related TRA payments. The payments that we are required to make will generally reduce the amount of overall cash flow that might have otherwise been available to us, but we expect the cash tax savings we will realize to fund the required payments. Assuming no material changes in relevant tax law and that we earn sufficient taxable income to realize all tax benefits that are subject to the TRA, we estimate that the tax savings associated with all tax attributes described above would aggregate to approximately $372.1 million as of March 30, 2025. Under this scenario, we would be required to pay the TRA Parties approximately 85% of such amount, or $316.2 million, primarily over the next 15 years, substantially declining in year 16 through year 47. In the quarter ended March 30, 2025 and March 31, 2024, we made TRA payments of $7.7 million relating to tax year 2023 and $4.4 million relating to tax year 2022, respectively. We expect a payment of $9.0 million relating to tax year 2024 to be paid within the next 12 months.

Current wording

As of June 29, 2025, we estimate that our obligation for future payments under the TRA totaled $352.9 million. Amounts payable under the TRA are contingent upon, among other things, (i) generation of future taxable income over the term of the TRA and (ii) future changes in tax laws. If we do not generate sufficient taxable income in the aggregate over the term of the TRA to utilize the tax benefits, then we would not be required to make the related TRA payments. The payments that we are required to make will generally reduce the amount of overall cash flow that might have otherwise been available to us, but we expect the cash tax savings we will realize to fund the required payments. Assuming no material changes in relevant tax law and that we earn sufficient taxable income to realize all tax benefits that are subject to the TRA, we estimate that the tax savings associated with all tax attributes described above would aggregate to approximately $415.2 million as of June 29, 2025. Under this scenario, we would be required to pay the TRA Parties approximately 85% of such amount, or $352.9 million, primarily over the next 15 years, substantially declining in year 16 through year 47. In the two quarters ended June 29, 2025 and June 30, 2024, we made TRA payments of $7.7 million relating to tax year 2023 and $4.4 million relating to tax year 2022, respectively. We expect a payment of $9.2 million relating to tax year 2024 to be paid within the next 12 months.

Previous wording

Net cash provided by operating activities for the quarter ended March 30, 2025 was $9.5 million compared to net cash provided by operating activities of $9.1 million for the quarter ended March 31, 2024, an increase of $0.4 million or 4.1%. This increase was primarily driven by the change in non-cash items of $1.6 million and operating assets and liabilities of $0.1 million, partially offset by a decrease in net income of $1.4 million.

Current wording

Net cash provided by operating activities for the two quarters ended June 29, 2025 was $28.7 million compared to net cash provided by operating activities of $41.6 million for the two quarters ended June 30, 2024, a decrease of $12.9 million or 31.1%. This decrease was primarily driven by the change in operating assets and liabilities of $13.4 million and non-cash items of $0.3 million, partially offset by an increase in net income of $0.2 million.

Previous wording

The $1.6 million change from the quarter ended March 30, 2025 in non-cash charges is primarily driven by an increase in our deferred income tax expense, partially offset by lower equity-based compensation expense. The $0.1 million change in our operating assets and liabilities balances was primarily driven by operating assets and liabilities being a use of net cash of $4.2 million in the quarter ended March 30, 2025, compared to a use of net cash of $4.3 million in quarter ended March 31, 2024 driven by the change in accounts payable, accrued expenses and other liabilities, other current assets, and inventory in the quarter ended March 30, 2025. The decrease in net income for the quarter ended March 30, 2025 was primarily due to the factors driving the aforementioned change in revenues and expenses as described in the condensed consolidated results of operations in the quarter ended March 30, 2025 compared to the quarter ended March 31, 2024.

Current wording

The $13.4 million change in our operating assets and liabilities balances was primarily driven by operating assets and liabilities being a use of net cash of $6.7 million in the two quarters ended June 29, 2025, compared to a source of net cash of $6.7 million in two quarters ended June 30, 2024 driven by the change in accounts payable and accrued expenses and other liabilities and inventory in the two quarters ended June 29, 2025. The $0.3 million change from the two quarters ended June 29, 2025 in non-cash charges is primarily driven by an increase in our tax receivable agreement liability adjustment and lower equity-based compensation expense, partially offset by an increase in our deferred income tax expense. The increase in net income for the two quarters ended June 29, 2025 was primarily due to the factors driving the aforementioned change in revenues and expenses as described in the condensed consolidated results of operations in the two quarters ended June 29, 2025 compared to the two quarters ended June 30, 2024.

Previous wording

Net cash used in investing activities was $19.0 million for the quarter ended March 30, 2025 compared to $16.9 million for the quarter ended March 31, 2024, an increase of $2.1 million or 12.4%. This increase was primarily due to due to the number of builds in process and planned restaurant openings in 2025, partially offset by adopting a more cost effective restaurant format.

Current wording

Net cash used in investing activities was $33.1 million for the two quarters ended June 29, 2025 compared to $33.8 million for the two quarters ended June 30, 2024, a decrease of $0.8 million or 2.2%. This decrease was primarily due to the number and timing of builds in process and by adopting a more cost effective restaurant format.

Previous wording

Net cash used in financing activities was $0.4 million for the quarter ended March 30, 2025 compared to net cash provided by financing activities of $10.6 million for the quarter ended March 31, 2024, a decrease of $11.0 million or 103.3%. This decrease is primarily due to the payment and borrowing of long-term debt in connection with our refinancing during the quarter ended March 30, 2025, as described in Note 8. Debt, and an increase of $3.3 million in payments related to the Tax Receivable Agreement liability for the quarter ended March 30, 2025 as compared to the quarter ended March 31, 2024.

Current wording

Net cash used in financing activities was $1.9 million for the two quarters ended June 29, 2025 compared to net cash used in financing activities of $5.9 million for the two quarters ended June 30, 2024, a decrease of $4.0 million or 68.2%. This decrease is primarily due to an increase in proceeds from short-term debt, partially offset by payments of long-term debt in connection with our refinancing in the first quarter of 2025, as described in Note 8. Debt, and an increase of $3.3 million in payments related to the Tax Receivable Agreement liability for the two quarters ended June 29, 2025 as compared to the two quarters ended June 30, 2024.

Previous wording

As of March 30, 2025, we had $73.0 million of borrowings under the 2025 Revolver Facility, and letters of credit issued under the 2025 Revolver Facility totaled $5.3 million. As a result, as of March 30, 2025, the Company had $71.7 million available under the 2025 Revolver Facility.

Current wording

As of June 29, 2025, we had $70.0 million of borrowings under the 2025 Revolver Facility, and letters of credit issued under the 2025 Revolver Facility totaled $5.3 million. As a result, as of June 29, 2025, the Company had $74.7 million available under the 2025 Revolver Facility.