Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and its margin weakened markedly compared with both the prior quarter and the same quarter last year. Revenue was stable sequentially and higher year over year, but operating cash flow fell while capital expenditure increased.
- Operating cash flow decreased relative to revenue, and capital expenditure rose, resulting in a free cash flow margin that was lower than both the prior quarter and the year-ago period.
- Compared with the prior quarter, operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were both weaker. Versus the same quarter last year, revenue was higher but operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$228.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$425.8M
Cash generated by operations before capital spending.
CapEx
$197.5M
Capital spending and related asset purchases.
FCF margin
7.7%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-09-30 | $3.0B | $569.7M | $163.5M | $406.2M | 13.5% |
| 2025-12-31 | $3.0B | $425.8M | $197.5M | $228.4M | 7.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 69.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | $350.5M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Cash conversion pressure
The decline in operating cash flow combined with higher capital expenditure caused free cash flow to decrease sharply from both the prior quarter and the year-ago period.
The free cash flow margin narrowed, indicating a weaker cash conversion efficiency this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased relative to revenue, and capital expenditure rose, resulting in a free cash flow margin that was lower than both the prior quarter and the year-ago period.
Compared with the prior quarter, operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were both weaker. Versus the same quarter last year, revenue was higher but operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were also lower.
Monitor the level of capital expenditure relative to operating cash flow, as the company's planned use of cash from operations includes continued investment in new restaurant construction.