| Segment Information |
6. Segment Information The Company represents a single, integrated operation with two related and substantially integrated product lines. The operating expenses of the restaurant and retail product lines of a store are shared and are indistinguishable in many respects. As such, the Company has determined it operates as one operating segment and one reportable segment. All of the Company’s operations are located within the United States. The Company’s chief operating decision maker (“CODM”) is the Company’s Chief Executive Officer. The CODM uses consolidated net income to evaluate performance and as a basis for allocating resources. The CODM uses consolidated net income primarily in the forecasting process and periodic reviews of actual performance as compared to forecasts. The CODM reviews balance sheet and capital expenditure information at a consolidated level and, as such, the measure of total assets is reflected at the consolidated balance sheet level. The following table presents information on the Company’s reportable segment and consolidated net income: | | | | | | | | | | | | | | 2026 | | 2025 | | 2024 | Total revenue | | | $ | 3,318,714 | | $ | 3,483,684 | | $ | 3,470,762 | Restaurant cost of goods sold (exclusive of depreciation and rent) | | | | 716,580 | | | 748,455 | | | 743,390 | Retail cost of goods sold (exclusive of depreciation and rent) | | | | 309,670 | | | 332,574 | | | 344,241 | Labor and other related expenses | | | | 1,237,314 | | | 1,254,668 | | | 1,271,555 | Other store operating expenses (a) | | | | 376,993 | | | 394,621 | | | 375,789 | Advertising expense | | | | 113,983 | | | 119,397 | | | 112,793 | Store-level supplies expense | | | | 114,098 | | | 121,972 | | | 122,778 | Store-level maintenance expense | | | | 135,339 | | | 119,658 | | | 118,585 | Store-level utilities expense | | | | 105,776 | | | 99,741 | | | 101,818 | General and administrative expenses | | | | 210,579 | | | 217,510 | | | 207,062 | Gain on sale and leaseback transaction, net | | | | (47,421) | | | — | | | — | Other segment items (b) | | | | 58,273 | | | 20,059 | | | 27,632 | Gain on extinguishment of debt | | | | — | | | (3,186) | | | — | Litigation settlement income | | | | (47,422) | | | — | | | — | Interest expense, net | | | | 14,379 | | | 20,489 | | | 20,933 | Income before income taxes | | | | 20,573 | | | 37,726 | | | 24,186 | Income tax benefit | | | | (11,102) | | | (8,653) | | | (16,744) | Segment profit and consolidated net income | | | $ | 31,675 | | $ | 46,379 | | $ | 40,930 |
| (a) | Excludes advertising, store-level supplies, store-level maintenance and store-level utilities expenses which are disclosed separately. |
| (b) | Consists of impairment costs including goodwill impairment, store closing costs and the loss on sale of business assets. |
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