Revenue has grown only about 0.8% on a trailing basis while gross margins swung between roughly 23% and 54% over the last ten quarters, suggesting cost recognition effects rather than franchise economics drive much of the volatility.
Choice Hotels International, Inc. (CHH) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 1.63B | 1.6B | 1.58B | 1.54B | 1.4B | 1.07B | 774.07M | 1.11B | 1.04B | 1.01B | 924.64M | 859.88M | 757.97M | 724.31M | 691.51M | 638.79M | 596.08M | 564.18M | 641.68M | 615.49M | 544.66M | 477.4M | 428.81M | 386.1M | 365.56M | 341.43M | 167.47M | 161.6M | 165.4M | 101.2M | 430M |
| Revenue Growth % | 2.09% | 0.75% | 2.63% | 10.14% | 31.11% | 38.14% | -30.57% | 7.06% | 3.37% | 8.95% | 7.53% | 13.44% | 4.65% | 4.74% | 8.25% | 7.17% | 5.65% | -12.08% | 4.25% | 13% | 14.09% | 11.33% | 11.06% | 5.62% | 7.07% | 103.87% | 3.63% | -2.3% | 63.44% | -76.47% | - |
| Cost of Goods Sold | 1B | 942.94M | 840.67M | 853.88M | 701.9M | 469.7M | 462.91M | 593.59M | 534.27M | 567.08M | 525.72M | 488.76M | 412.62M | 406.78M | 388.29M | 352.5M | 332.43M | 308.53M | 339.91M | 320.07M | 281.22M | 246.35M | 224.21M | 198.04M | 193.09M | 170.67M | 0 | -5.7M | 15.4M | 92.3M | 247.1M |
| COGS % of Revenue | - | 59.05% | 53.04% | 55.3% | 50.07% | 43.93% | 59.8% | 53.25% | 51.31% | 56.29% | 56.86% | 56.84% | 54.44% | 56.16% | 56.15% | 55.18% | 55.77% | 54.69% | 52.97% | 52% | 51.63% | 51.6% | 52.29% | 51.29% | 52.82% | 49.99% | - | -3.53% | 9.31% | 91.21% | 57.47% |
| Gross Profit | 625.19M | 653.86M | 744.17M | 690.28M | 700.05M | 599.6M | 311.16M | 521.23M | 507.04M | 440.27M | 398.93M | 371.12M | 345.35M | 317.53M | 303.22M | 286.29M | 263.64M | 255.65M | 301.77M | 295.43M | 263.44M | 231.05M | 204.6M | 188.07M | 172.47M | 170.76M | 167.47M | 167.3M | 150M | 8.9M | 182.9M |
| Gross Margin % | 38.36% | 40.95% | 46.96% | 44.7% | 49.93% | 56.07% | 40.2% | 46.75% | 48.69% | 43.71% | 43.14% | 43.16% | 45.56% | 43.84% | 43.85% | 44.82% | 44.23% | 45.31% | 47.03% | 48% | 48.37% | 48.4% | 47.71% | 48.71% | 47.18% | 50.01% | 100% | 103.53% | 90.69% | 8.79% | 42.53% |
| Gross Profit Growth % | - | -12.14% | 7.81% | -1.4% | 16.75% | 92.7% | -40.3% | 2.8% | 15.16% | 10.36% | 7.49% | 7.46% | 8.76% | 4.72% | 5.91% | 8.59% | 3.13% | -15.28% | 2.15% | 12.14% | 14.02% | 12.93% | 8.79% | 9.04% | 1% | 1.96% | 0.1% | 11.53% | 1585.39% | -95.13% | - |
| Operating Expenses | 250.32M | 200.76M | 280.39M | 315.25M | 221.45M | 170.66M | 189.49M | 187.66M | 184.36M | 175.81M | 160.43M | 145.8M | 130.78M | 123.04M | 110.08M | 114.43M | 102.88M | 107.57M | 467.08M | 110.23M | 96.82M | 87.3M | 79.6M | 74.08M | 66.16M | 68.53M | 69.41M | 73.5M | 63.2M | 35.7M | 84.9M |
| OpEx % of Revenue | - | 12.57% | 17.69% | 20.42% | 15.8% | 15.96% | 24.48% | 16.83% | 17.7% | 17.45% | 17.35% | 16.96% | 17.25% | 16.99% | 15.92% | 17.91% | 17.26% | 19.07% | 72.79% | 17.91% | 17.78% | 18.29% | 18.56% | 19.19% | 18.1% | 20.07% | 41.45% | 45.48% | 38.21% | 35.28% | 19.74% |
| Selling, General & Admin | 96.15M | 0 | 219.88M | 216.08M | 167.7M | 145.62M | 148.91M | 168.83M | 170.03M | 163.38M | 148.73M | 134.25M | 121.42M | 113.57M | 101.85M | 106.4M | 94.54M | 99.24M | 118.99M | 101.59M | 87.11M | 78.25M | 69.65M | 62.86M | 54.9M | 56.08M | 57.79M | 55.9M | 50.7M | 29.5M | 55.1M |
| SG&A % of Revenue | - | - | 13.87% | 13.99% | 11.96% | 13.62% | 19.24% | 15.14% | 16.33% | 16.22% | 16.08% | 15.61% | 16.02% | 15.68% | 14.73% | 16.66% | 15.86% | 17.59% | 18.54% | 16.51% | 15.99% | 16.39% | 16.24% | 16.28% | 15.02% | 16.42% | 34.51% | 34.59% | 30.65% | 29.15% | 12.81% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 9.7M | 11.2M | 11.7M | 11.8M | 9.6M | 6.3M | 3.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | 0.87% | 1.08% | 1.16% | 1.28% | 1.12% | 0.83% | 0.52% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 200.76M | 60.52M | 99.17M | 53.75M | 25.04M | 40.58M | 18.83M | -1.44M | 0 | 1.5M | 820K | -427K | 1.78M | 1.99M | 8.02M | 8.34M | 8.34M | 8.18M | 8.64M | 9.71M | 9.05M | 9.95M | 11.22M | 11.25M | 12.45M | 11.62M | 17.6M | 12.5M | 6.2M | 0 |
| Operating Income | 374.87M | 453.1M | 463.77M | 375.03M | 478.6M | 428.93M | 121.67M | 318.64M | 318.47M | 264.43M | 238.9M | 225.32M | 214.57M | 194.49M | 193.14M | 171.86M | 160.76M | 148.07M | 174.6M | 185.2M | 166.63M | 143.75M | 125M | 113.98M | 104.7M | 73.58M | 98.06M | 93.8M | 86.8M | -26.8M | 98M |
| Operating Margin % | 23% | 28.38% | 29.26% | 24.29% | 34.14% | 40.11% | 15.72% | 28.58% | 30.58% | 26.25% | 25.84% | 26.2% | 28.31% | 26.85% | 27.93% | 26.9% | 26.97% | 26.25% | 27.21% | 30.09% | 30.59% | 30.11% | 29.15% | 29.52% | 28.64% | 21.55% | 58.55% | 58.04% | 52.48% | -26.48% | 22.79% |
| Operating Income Growth % | - | -2.3% | 23.66% | -21.64% | 11.58% | 252.55% | -61.82% | 0.05% | 20.44% | 10.69% | 6.03% | 5.01% | 10.32% | 0.7% | 12.38% | 6.91% | 8.57% | -15.19% | -5.73% | 11.15% | 15.91% | 15% | 9.67% | 8.87% | 42.3% | -24.97% | 4.55% | 8.06% | 423.88% | -127.35% | - |
| EBITDA | 495.73M | 469.92M | 534.63M | 450.76M | 542.51M | 479.43M | 170.12M | 354.76M | 349.21M | 291.72M | 250.6M | 236.86M | 223.93M | 203.96M | 201.37M | 179.89M | 169.1M | 156.41M | 182.78M | 193.84M | 176.33M | 152.8M | 134.95M | 125.21M | 115.95M | 86.03M | 110.17M | 111.4M | 99.3M | -20.6M | 127.8M |
| EBITDA Margin % | 30.42% | 29.43% | 33.73% | 29.19% | 38.7% | 44.84% | 21.98% | 31.82% | 33.54% | 28.96% | 27.1% | 27.55% | 29.54% | 28.16% | 29.12% | 28.16% | 28.37% | 27.72% | 28.48% | 31.49% | 32.37% | 32.01% | 31.47% | 32.43% | 31.72% | 25.2% | 65.78% | 68.94% | 60.04% | -20.36% | 29.72% |
| EBITDA Growth % | -7.92% | -12.1% | 18.61% | -16.91% | 13.16% | 181.81% | -52.05% | 1.59% | 19.71% | 16.41% | 5.8% | 5.77% | 9.79% | 1.29% | 11.94% | 6.38% | 8.12% | -14.43% | -5.7% | 9.93% | 15.4% | 13.23% | 7.78% | 7.98% | 34.78% | -21.91% | -1.11% | 12.19% | 582.04% | -116.12% | - |
| D&A (Non-Cash Add-back) | 120.86M | 16.82M | 70.86M | 75.73M | 63.91M | 50.49M | 48.46M | 36.12M | 30.73M | 27.29M | 11.71M | 11.54M | 9.37M | 9.47M | 8.23M | 8.02M | 8.34M | 8.34M | 8.18M | 8.64M | 9.71M | 9.05M | 9.95M | 11.22M | 11.25M | 12.45M | 12.1M | 17.6M | 12.5M | 6.2M | 29.8M |
| EBIT | 355.4M | 548.04M | 482.78M | 400.74M | 480.6M | 423.17M | 102.03M | 316.74M | 319.17M | 294.26M | 192.59M | 225.32M | 214.57M | 201.21M | 196.69M | 171.65M | 164.89M | 155.05M | 176.01M | 188.18M | 166.63M | 143.75M | 124.98M | 113.95M | 106.32M | 79.52M | 98.06M | 93.8M | 86.9M | -26.8M | 70.3M |
| Net Interest Income | -92.39M | -84.91M | -78.48M | -56.02M | -36.51M | -41.7M | -41.34M | -36.81M | -38.46M | -39.12M | -40.91M | -41.25M | -39.73M | -39.99M | -25.65M | -11.63M | -6.13M | 1.45M | -18.69M | -12.54M | -13.73M | -13.68M | 0 | -4.51M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 5.09M | 6.24M | 8.65M | 7.76M | 7.29M | 4.98M | 7.69M | 10M | 7.45M | 5.92M | 3.54M | 1.58M | 1.76M | 2.55M | 1.54M | 1.31M | 2.9M | 5.86M | 0 | 1.75M | 368K | 1.64M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 97.48M | 91.15M | 87.13M | 63.78M | 43.8M | 46.68M | 49.03M | 46.81M | 45.91M | 45.04M | 44.45M | 42.83M | 41.49M | 42.54M | 27.19M | 12.94M | 6.68M | 4.41M | 18.69M | 11.31M | 11.69M | 12.59M | 0 | 4.51M | 0 | 0 | 54.01M | 0 | 0 | 0 | 0 |
| Other Income/Expense | -106.03M | 3.79M | -68.13M | -38.07M | -41.8M | -52.44M | -68.66M | -48.61M | -45.22M | -40.44M | 12.93M | -41.33M | -40.81M | -37.58M | -23.97M | -13.81M | -2.55M | 2.56M | -17.28M | -11.31M | -11.35M | -13.01M | -10.48M | -1.54M | -8.88M | -28.16M | -28.48M | 700K | -4.5M | 73.2M | -10.8M |
| Pretax Income | 268.84M | 456.89M | 395.64M | 336.96M | 436.81M | 376.49M | 53.01M | 269.93M | 273.26M | 224M | 199.98M | 183.99M | 173.76M | 156.92M | 169.17M | 158.06M | 158.21M | 150.63M | 157.32M | 173.89M | 155.28M | 130.74M | 114.52M | 112.41M | 95.82M | 45.42M | 69.58M | 94.5M | 82.4M | 46.4M | 72.2M |
| Pretax Margin % | 16.49% | 28.61% | 24.96% | 21.82% | 31.16% | 35.21% | 6.85% | 24.21% | 26.24% | 22.24% | 21.63% | 21.4% | 22.92% | 21.66% | 24.46% | 24.74% | 26.54% | 26.7% | 24.52% | 28.25% | 28.51% | 27.39% | 26.71% | 29.11% | 26.21% | 13.3% | 41.55% | 58.48% | 49.82% | 45.85% | 16.79% |
| Income Tax | 62.6M | 86.94M | 95.98M | 78.45M | 104.65M | 87.53M | -22.38M | 47.05M | 56.9M | 109.1M | 60.61M | 55.96M | 52.28M | 44.32M | 48.48M | 47.66M | 50.77M | 52.38M | 57.11M | 62.59M | 42.49M | 43.18M | 40.18M | 40.54M | 34.97M | 31.09M | 27.14M | 37.3M | 34.3M | 19.1M | 30.2M |
| Effective Tax Rate % | 23.29% | 19.03% | 24.26% | 23.28% | 23.96% | 23.25% | -42.22% | 17.43% | 20.82% | 48.71% | 30.31% | 30.41% | 30.09% | 28.24% | 28.66% | 30.15% | 32.09% | 34.78% | 36.3% | 35.99% | 27.36% | 33.02% | 35.08% | 36.07% | 36.5% | 68.45% | 39% | 39.47% | 41.63% | 41.16% | 41.83% |
| Net Income | 205.98M | 369.95M | 299.67M | 258.51M | 332.15M | 288.96M | 75.39M | 222.88M | 216.35M | 114.89M | 139.37M | 128.03M | 123.16M | 112.6M | 120.69M | 110.4M | 107.44M | 98.25M | 100.21M | 111.3M | 112.79M | 87.56M | 74.34M | 71.86M | 60.84M | 14.33M | 42.45M | 57.2M | 55.3M | 27.3M | 40.9M |
| Net Margin % | 12.64% | 23.17% | 18.91% | 16.74% | 23.69% | 27.02% | 9.74% | 19.99% | 20.78% | 11.41% | 15.07% | 14.89% | 16.25% | 15.55% | 17.45% | 17.28% | 18.02% | 17.41% | 15.62% | 18.08% | 20.71% | 18.34% | 17.34% | 18.61% | 16.64% | 4.2% | 25.34% | 35.4% | 33.43% | 26.98% | 9.51% |
| Net Income Growth % | -46.09% | 23.45% | 15.92% | -22.17% | 14.95% | 283.3% | -66.18% | 3.02% | 88.31% | -17.56% | 8.86% | 3.95% | 9.38% | -6.7% | 9.32% | 2.75% | 9.35% | -1.96% | -9.96% | -1.32% | 28.8% | 17.78% | 3.45% | 18.11% | 324.68% | -66.25% | -25.8% | 3.44% | 102.56% | -33.25% | - |
| Net Income (Continuing) | 206.24M | 369.95M | 299.67M | 258.51M | 332.15M | 288.96M | 75.39M | 222.88M | 216.35M | 122.33M | 106.71M | 128.03M | 121.47M | 113.35M | 121.28M | 110.4M | 107.44M | 98.25M | 100.21M | 111.3M | 112.79M | 87.56M | 74.34M | 71.86M | 60.84M | 14.33M | 42.45M | 57.2M | 48.1M | 27.3M | 34.7M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.69M | 359K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 491.19M | 638.14M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 4.54 | 7.90 | 6.20 | 5.07 | 5.99 | 5.15 | 1.35 | 3.98 | 3.80 | 2.02 | 2.46 | 2.22 | 2.10 | 1.91 | 2.07 | 1.85 | 1.80 | 1.63 | 1.60 | 1.70 | 1.68 | 1.32 | 1.08 | 0.98 | 0.76 | 0.16 | 0.40 | 0.52 | 0.47 | 0.23 | 0.28 |
| EPS Growth % | -44.65% | 27.42% | 22.29% | -15.36% | 16.31% | 281.48% | -66.08% | 4.74% | 88.12% | -17.89% | 10.81% | 5.71% | 9.95% | -7.73% | 11.89% | 2.78% | 10.43% | 1.88% | -5.88% | 1.19% | 27.27% | 22.22% | 10.2% | 28.95% | 375% | -60% | -23.08% | 10.64% | 104.35% | -17.86% | - |
| EPS (Basic) | - | 7.97 | 6.26 | 5.11 | 6.05 | 5.20 | 1.36 | 4.00 | 3.83 | 2.03 | 2.48 | 2.24 | 2.11 | 1.92 | 2.08 | 1.86 | 1.80 | 1.64 | 1.62 | 1.73 | 1.72 | 1.36 | 1.12 | 1.01 | 0.78 | 0.16 | 0.40 | 0.52 | 0.47 | 0.23 | 0.28 |
| Diluted Shares Outstanding | 45.39M | 46.58M | 47.2M | 50.7M | 55.12M | 55.88M | 55.53M | 55.67M | 56.94M | 56.88M | 56.65M | 57.67M | 58.65M | 58.95M | 58.27M | 59.52M | 59.69M | 60.22M | 62.52M | 65.33M | 67.05M | 66.34M | 68.84M | 73.33M | 80.11M | 89.54M | 106.51M | 111.33M | 119.1M | 121.33M | 126.18M |
| Basic Shares Outstanding | 45.19M | 46.17M | 47.2M | 50.34M | 54.59M | 55.38M | 55.17M | 55.36M | 56.49M | 56.6M | 56.2M | 57.16M | 58.37M | 58.65M | 58.02M | 59.35M | 59.69M | 60.07M | 61.85M | 64.21M | 65.39M | 64.43M | 66.38M | 71.15M | 78.67M | 89.54M | 105.79M | 109.72M | 117.43M | 118.7M | 126.18M |
| Dividend Payout Ratio | - | 14.45% | 18.52% | 21.84% | 15.82% | 8.67% | 33.53% | 21.58% | 22.52% | 42.34% | 33.14% | 35.32% | 35.34% | 29.13% | 541.97% | 39.63% | 40.77% | 45.06% | 43.05% | 36.06% | 31.37% | 34.54% | 37.25% | 9.6% | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying CHH stock.
For fiscal year 2025, Choice Hotels International, Inc. (CHH) reported total revenue of $1.60B. This represents a 271.3% increase compared to $430.0M in 1996.
Choice Hotels International, Inc. (CHH) is profitable, generating $369.9M in net income for the fiscal year ending 2025 with a net profit margin of 23.2%.
Choice Hotels International, Inc. (CHH) reported an operating income of $453.1M, resulting in an operating profit margin of 28.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Choice Hotels International, Inc. (CHH) generated $653.9M in gross profit for the year, representing a gross profit margin of 40.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Leverage and subdued top-line growth
Metrics are mathematically derived from official filings.
Top-Line Growth Stalls Near One Percent
According to the reported quarterly figures, CHH's revenue growth has moderated to roughly 0.8% on a trailing basis, with the most recent quarter at 2.5%, suggesting the top line is growing well below the company's historical trajectory and offering limited organic momentum.
Revenue has hovered around $440M to $458M in recent quarters, a range that implies modest unit and RevPAR expansion rather than acceleration. The reported figures do not isolate volume from pricing, so it is unclear whether growth is coming from net rooms additions or fee-rate improvements. Investors should monitor whether the CEO-cited improvement in U.S. net rooms growth translates into a sustained acceleration in fee revenue.
Gross Margin Volatility Reflects Mixed Cost Recognition
Based on reported quarterly data, CHH's gross margin has swung between roughly 23% and 54% over the last ten quarters, a range that appears more driven by the treatment of pass-through marketing and reservation funds than by changes in franchise economics.
The wide gross margin dispersion is best read as an accounting artifact rather than a structural shift, since COGS-type line items move with pass-through fund recognition. Operating margin has been steadier, generally sitting in the 17% to 36% band, which better reflects the underlying asset-light fee structure. Analysts should prioritize operating margin and exclude the pass-through funds before drawing conclusions about pricing power relative to peers such as WH, which reports a 58.9% gross margin.
EPS Swings Outpace Operating Trends
As reported in the quarterly financial statements, CHH's diluted EPS ranged from $0.44 to $3.86 over the period, with the 73% year-over-year jump in Q3 2025 appearing largely unrelated to operating income, which rose only modestly.
The Q3 2025 net income spike to $180.0M against operating income of $143.9M points to non-operating items or tax effects rather than core franchise earnings. The subsequent reversion in EPS to $1.28 in Q3 2026 underscores how much reported earnings depend on items outside operations. Buyback-driven share count reduction also amplifies per-share volatility, so EPS growth should be assessed alongside operating income rather than in isolation.
Operating Income Tracks Revenue Without Expansion
Based on reported figures, operating income has remained in a range of roughly $60M to $144M per quarter while revenue stayed near $340M to $460M, indicating limited operating leverage over the period despite an asset-light model.
Operating margin peaked near 35% in 2024 Q3 and has since compressed to the low-to-mid 20s, suggesting SG&A and overhead have grown or revenue mix has shifted against the company. The absence of a clear SG&A reading in several quarters limits precise attribution. Investors should watch whether margin recovery toward prior levels occurs as revenue growth resumes.
Debt-Funded Strategy Could Amplify Downside
Reported leverage with a debt-to-equity ratio of 11.76 suggests that a slowdown in fee revenue could pressure earnings more acutely than the steady operating margins imply, particularly if the Wyndham-era strategic ambitions require further balance sheet expansion.
High leverage combined with sub-1% trailing revenue growth creates limited cushion if RevPAR weakens or pipeline conversion slows under higher franchisee financing costs. Earnings have leaned on buybacks and capital structure more than on demand expansion, which may not be sustainable. Investors should consider whether the pursuit of large-scale M&A introduces risk that outweighs the operating benefits visible in the current income statement.