Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year. Free cash flow margin improved sequentially and year-over-year, reflecting higher operating cash flow relative to capital expenditure.
- Operating cash flow as a proportion of revenue improved, and capital expenditure was lower than the prior quarter but higher than a year ago. The resulting free cash flow margin strengthened.
- Compared to the immediately preceding quarter, revenue and operating cash flow were higher, while capital expenditure was lower, leading to a higher free cash flow margin. Versus the same quarter one year earlier, all metrics improved, with free cash flow margin showing a notable increase.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$991.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$334.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$455.0M
Cash generated by operations before capital spending.
CapEx
$120.4M
Capital spending and related asset purchases.
FCF margin
14.1%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2022-06-30 | $2.2B | $286.8M | $100.3M | $186.5M | 8.4% |
| 2022-09-30 | $2.2B | $351.9M | $139.0M | $212.9M | 9.6% |
| 2022-12-31 | $2.2B | $401.6M | $143.6M | $257.9M | 11.8% |
| 2023-03-31 | $2.4B | $455.0M | $120.4M | $334.7M | 14.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 114.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Growth
Operating cash flow increased compared to both the prior quarter and the same quarter last year, outpacing the growth in revenue.
This improvement directly supported a higher free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue improved, and capital expenditure was lower than the prior quarter but higher than a year ago. The resulting free cash flow margin strengthened.
Compared to the immediately preceding quarter, revenue and operating cash flow were higher, while capital expenditure was lower, leading to a higher free cash flow margin. Versus the same quarter one year earlier, all metrics improved, with free cash flow margin showing a notable increase.
Monitor the pace of capital expenditure for new restaurant construction, as it is a primary planned use of operating cash flow.