Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose from both the prior quarter and the same quarter last year, but free cash flow margin declined as capital expenditure increased more than operating cash flow. The company maintains a strong cash and investment position and plans to fund restaurant expansion and share repurchases.
- Operating cash flow was slightly higher than the prior quarter but lower than a year ago, while capital expenditure increased compared to both periods, resulting in free cash flow and free cash flow margin that were lower than both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, revenue improved and operating cash flow was stable, but higher capital expenditure led to a lower free cash flow margin. Versus the same quarter last year, revenue was higher, operating cash flow was slightly lower, and capital expenditure was notably higher, resulting in a weakened free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$400.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$561.3M
Cash generated by operations before capital spending.
CapEx
$160.6M
Capital spending and related asset purchases.
FCF margin
13.1%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $2.8B | $446.5M | $147.5M | $299.0M | 10.7% |
| 2024-12-31 | $2.8B | $526.8M | $172.9M | $353.9M | 12.4% |
| 2025-03-31 | $2.9B | $557.1M | $144.8M | $412.3M | 14.3% |
| 2025-06-30 | $3.1B | $561.3M | $160.6M | $400.7M | 13.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 91.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.2% | 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.
Capital Expenditure Increase
Capital expenditure rose compared to both the prior quarter and the same quarter last year, outpacing the growth in operating cash flow. This was the strongest observable factor behind the decline in free cash flow margin.
Higher capital spending reduced free cash flow and free cash flow margin despite higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was slightly higher than the prior quarter but lower than a year ago, while capital expenditure increased compared to both periods, resulting in free cash flow and free cash flow margin that were lower than both the prior quarter and the year-ago quarter.
Compared to the prior quarter, revenue improved and operating cash flow was stable, but higher capital expenditure led to a lower free cash flow margin. Versus the same quarter last year, revenue was higher, operating cash flow was slightly lower, and capital expenditure was notably higher, resulting in a weakened free cash flow margin.
Monitor the trend of capital expenditure relative to operating cash flow, as the current quarter showed a larger gap that reduced free cash flow margin.