Winmark Corporation Announces Quarterly Cash Dividend

Rhea-AI Summary

Winmark Corporation (Nasdaq: WINA) has approved the payment of a quarterly cash dividend of $0.80 per share to shareholders, to be paid on March 1, 2024. The company, known for its franchising business focused on sustainability and small business formation, operates award-winning resale franchises including Plato’s Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore®, and Music Go Round®. As of December 30, 2023, there were 1,319 franchises in operation and over 2,800 available territories, with an additional 71 franchises awarded but not yet open.

Financial Analyst

The declaration of a quarterly cash dividend by Winmark Corporation signifies the company's ongoing commitment to delivering shareholder value. The dividend payout of $0.80 per share aligns with the company's financial strategy to distribute profits back to shareholders. It's essential to assess the dividend yield, which is calculated by dividing the annual dividends per share by the stock's price per share. This metric helps investors understand the return on investment from dividends alone, excluding capital gains.

Furthermore, the consistency of dividend payments can be indicative of Winmark's operational stability and financial health. Investors often view regular dividends as a sign of a company's confidence in its current and future cash flows. However, it is crucial to evaluate the payout ratio, the percentage of earnings paid to shareholders in dividends. An excessively high payout ratio may not be sustainable in the long term and could signal that the company is not reinvesting enough in its growth.

Market Research Analyst

Winmark Corporation's focus on franchising in the resale market positions it within a niche that capitalizes on consumer trends towards sustainability and thrift. By supporting entrepreneurs in operating resale franchises, Winmark taps into the growing market for second-hand goods, which appeals to eco-conscious consumers and bargain hunters alike. This sector has seen an uptick as circular economy principles gain traction.

It's important to consider the growth potential within this industry. The number of franchises and available territories indicates expansion capacity and market penetration. The announcement of 71 additional franchises, while not yet operational, suggests a forward momentum in business development. Stakeholders should monitor the rate of new franchise openings and the success rate of these franchises as indicators of the company's operational competence and brand strength.

MINNEAPOLIS--(BUSINESS WIRE)-- Winmark Corporation (Nasdaq: WINA) announced today that its Board of Directors has approved the payment of a quarterly cash dividend to shareholders. The quarterly dividend of $0.80 per share will be paid March 1, 2024 to shareholders of record on the close of business on February 14, 2024. Future dividends will be subject to Board approval.

Winmark — the Resale Company®, is a nationally recognized franchising business focused on sustainability and small business formation. We champion and guide entrepreneurs interested in operating one of our award winning resale franchises: Plato’s Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore® and Music Go Round®. At December 30, 2023, there were 1,319 franchises in operation and over 2,800 available territories. An additional 71 franchises have been awarded but are not open.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240131087912/en/

Anthony D. Ishaug

763/520-8500

Source: Winmark Corporation

What is the ticker symbol for Winmark Corporation?

The ticker symbol for Winmark Corporation is WINA.

When will the quarterly cash dividend be paid to shareholders?

The quarterly cash dividend of $0.80 per share will be paid on March 1, 2024.

How many franchises were in operation as of December 30, 2023?

As of December 30, 2023, there were 1,319 franchises in operation.

What are the names of the award-winning resale franchises operated by Winmark Corporation?

The award-winning resale franchises operated by Winmark Corporation include Plato’s Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore®, and Music Go Round®.

What is the focus of Winmark Corporation's franchising business?

Winmark Corporation's franchising business is focused on sustainability and small business formation.