Winmark Q3 EPS $3.21, Special $4 Dividend, and New Ad Fund Mandate for Franchisees
WINA is trading near its 52-week low of $280.045 (3.0% above the low) on light trading volume (0.4× avg).
Summary
Winmark posted Q3 EPS of $3.21 and declared a $4.00 special dividend, while announcing new mandatory Ad Fund contributions for franchisees starting January 2027 that will raise their marketing spend to 6% of sales.
Key Events · Earnings and Guidance · WINA
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Q3 EPS Rises to $3.21
Net income of $11.8 million, or $3.21 per diluted share, up from $11.1 million, or $3.02 per diluted share, in Q3 2025. Nine-month EPS was $8.51 versus $8.61 last year, which included $2.2 million of leasing income.
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Special Dividend of $4.00 Per Share
Board approved a special dividend of $4.00 per share, totaling approximately $14.2 million, payable December 1, 2026 to shareholders of record November 11, 2026. A regular quarterly dividend of $1.02 per share was also declared.
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New Ad Fund Mandate for Franchisees
Starting January 31, 2027, Once Upon A Child and Play It Again Sports franchisees must contribute 2% of sales to brand-specific Ad Funds, raising total marketing spend from 5% to 6% of sales. Pro forma fiscal 2025 contributions would have been $10.9 million and $7.0 million respectively.
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Revenue and Expense Impact Expected
The company anticipates the Ad Funds will increase both revenues and corresponding expenses, with a portion of proceeds covering administrative costs including personnel and marketing investments.
Analysis · WINA · Trade & Services
Winmark reported Q3 diluted EPS of $3.21, up from $3.02 a year ago, and declared a $4.00 special dividend totaling approximately $14.2 million. The more consequential disclosure is the new North American Ad Funds for Once Upon A Child and Play It Again Sports: starting January 31, 2027, franchisees must contribute 2% of sales, lifting their total marketing spend from 5% to 6%. Had the funds existed in fiscal 2025, contributions would have been roughly $10.9 million and $7.0 million respectively. The company expects this to increase both revenues and expenses, with a portion of proceeds covering its own administrative costs. The special dividend and Ad Fund rollout come as the stock trades near its 52-week low, and the CEO explicitly ties the higher cash retention to share repurchases and a $60 million debt maturity over the next thirty months.
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At the time of this filing, WINA was trading at $288.58 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $1B. The 52-week trading range was $280.05 to $488.83. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.