On June 13, 2026, the Company entered into an asset purchase agreement (the “Purchase Agreement”) to refranchise 28 Domestic Company-owned restaurants located in the Orlando metropolitan area. The total sale price for the restaurants was approximately $10.8 million, which does not include transaction costs and is subject to customary post-closing adjustments under the terms of the Purchase Agreement. The sale is expected to close during the third quarter of 2026, at which point the restaurants will convert to franchised locations.

The assets and liabilities associated with the restaurants to be sold are classified as held for sale in the Condensed Consolidated Balance Sheets as of June 28, 2026.


(In thousands)	June 28, 2026
Current assets	$	183
Property and equipment, net	5,563
Operating lease right-of-use assets, net	2,287

Goodwill	2,397
Assets held for sale	$	10,430

Current deferred revenue	$	106

Current operating lease liabilities	743

Long-term operating lease liabilities	1,765
Liabilities held for sale	$	2,614

Upon closing of the sale, the Company currently expects to recognize an estimated pre-tax gain on sale between $1.0 million and $3.0 million, which is net of estimated transaction costs and subject to change based on settlement of certain post-closing adjustments. This estimate is preliminary and subject to change based on settlement of certain post-closing adjustments.

On November 24, 2025, the Company completed the refranchising of 85 Domestic Company-owned restaurants previously owned and operated by Colonel’s Limited, LLC, a consolidated joint venture, to Pie Investments, an existing third-party franchisee (“Buyer”), for total proceeds of $35.7 million. Colonel’s Limited, LLC also entered into a Master Service Agreement effective November 24, 2025 with the Buyer for the performance by the Buyer of certain management, supervisory, and administrative services with respect to any identified remaining restaurants for which the parties have not yet obtained landlord consent to transfer the leases pursuant to the Purchase Agreement (the “Retained Restaurants”).

During the six months ended June 28, 2026, the parties obtained landlord consent to transfer three leases related to the Retained Restaurants, resulting in a gain of $1.0 million which was recorded in General and administrative expenses in the Condensed Consolidated Statements of Operations during the six months ended June 28, 2026. We expect to receive the remaining $0.4 million of proceeds from the sale upon completion of the lease assignment for the sole remaining Retained

Restaurant and resolution of certain post-closing adjustments. As of June 28, 2026, assets held for sale related to this restaurant totaled $0.1 million and are included in the Condensed Consolidated Balance Sheets.

Refer to Note 21 of the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 28, 2025 for further description of the transaction.

On February 18, 2026, we finalized the sale of a building occupied by our former print and promotions business in Louisville, Kentucky and received net proceeds of $3.5 million, which were classified as investing activities within the Condensed Consolidated Statements of Cash Flows. We recognized a loss on sale of approximately $0.3 million during the six months ended June 28, 2026, which was recorded in General and administrative expenses in the Condensed Consolidated Statements of Operations.