Cash from operations was slightly negative due to timing of vendor payments; capital expenditures were $7 million; $10 million spent on principal payments for financing leases; dividends distributed were $9 million.
Gross margin decreased 170 basis points year-over-year due to higher technician labor costs from wage inflation and higher material costs driven by trade down to Tier 3 tires and increased self-funded promotions.
Net bank debt was $64 million with $398 million available under credit facility and $8 million in cash; inventory levels reduced by approximately $10 million due to store closures.
Net loss was $8.1 million compared to net income of $5.9 million last year; diluted loss per share was $0.28 versus diluted earnings per share of $0.19 last year; adjusted diluted EPS remained flat at $0.22.
Operating loss was $6.1 million or negative 2% of sales, compared to operating income of $13.2 million or 4.5% last year; adjusted operating income was $14 million or 4.7% of sales, slightly down from $14.7 million or 5%.
Sales increased 2.7% to $301 million in the first quarter, driven by a 5.7% increase in comparable store sales, partially offset by sales reduction from closed stores.
Total operating expenses were $113 million or 37.5% of sales, up from $95.9 million or 32.7% last year, mainly due to $14.8 million in store closing costs and $4.7 million consulting costs.
Adjusted diluted EPS declined to $1.17 from $1.71 in the prior year quarter.
Adjusted EBITDA decreased to $56.2 million from $67 million year-over-year.
Adjusted free cash flow for the first six months of 2025 was $48.7 million, down from $52.9 million in the same period last year.
Applebee's reported a 4.9% increase in comp sales with positive traffic growth, the first positive traffic since Q1 2023.
Company-owned portfolio showed solid progress with comp sales improving over Q1 and performing near system average.
Consolidated total revenues increased 11.9% to $230.8 million in Q2 2025 compared to $206.3 million in Q2 2024, driven primarily by increased company restaurant sales.
IHOP posted a negative 2.3% comp sales but showed sequential improvement from Q1 and achieved second consecutive quarter of traffic outperformance relative to Black Box.
Dafinchi