The financial performance across the analyzed period is characterized by significant volatility, primarily driven by a sharp operational disruption in mid-2020 followed by a recovery phase and subsequent margin compression in 2024 and 2025.
Revenue Composition
Company-operated stores consistently represent the primary revenue driver, maintaining a range between 79% and 85% of net revenues. Licensed stores showed a gradual increase in their contribution, rising from a low of 7.12% in June 2020 to a peak of 12.85% by January 2023, indicating a strategic shift toward a higher proportion of licensed revenue. The "Other" revenue category generally trended downward from 7.39% in late 2019 to fluctuate between 5% and 6% in later periods.
Cost of Revenues and Gross Profit
A critical contraction in gross profit occurred in June 2020, dropping to 4.74% due to a spike in store operating expenses, which reached 60.11% of net revenues. Following this trough, gross profit stabilized between 24% and 31% through 2022. However, a downward trend emerged starting in 2023, with gross margins declining to a low of 20.08% by March 2026 before a partial recovery to 24.64% in June 2026. Product and distribution costs remained relatively stable, generally oscillating between 29% and 33% of net revenues.
Operating Expenses and Efficiency
General and administrative expenses remained largely consistent, typically ranging from 6% to 7.6% of net revenues. Depreciation and amortization expenses showed a gradual improvement, decreasing from approximately 5% in 2019 to roughly 4% in the final periods. Restructuring and impairment charges were sporadic but impactful, most notably in September 2025, where they consumed 7.89% of net revenues, significantly depressing operating income for that quarter.
Profitability and Net Earnings
Operating income experienced extreme fluctuations, moving from a loss of 16.67% in June 2020 to a peak of 19.86% in June 2021. A second period of decline is evident between 2023 and 2025, with operating income hitting a low of 2.91% in September 2025. Net earnings attributable to the company mirrored this volatility; a notable spike to 21.66% in October 2021 was driven by a non-recurring net gain from the divestiture of certain operations (10.61% of net revenues). Excluding such anomalies, net earnings generally fluctuated between 4% and 15% of net revenues, ending the period with a recovery to 11.21% in June 2026.
