Financial PerformanceSame-store sales fell 2% and dragged margins; both EPS and net income down 8%, below expectations.
Market ChallengesThe outlook for the Chinese market remains difficult, with macroeconomic factors and tariffs posing significant risks to brands with an 'American' image.
Operating EnvironmentA difficult international operating environment is expected to persist, with risks of global unit closures, ongoing macro challenges in China, and slowing U.S. wage growth potentially reducing customer visits.