Revenue growth remains inconsistent, fluctuating between a 2.3% increase and a 2.0% contraction over the last ten quarters, while operating margins have compressed to 17.6% as of 2026Q1.
| 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 | 1.6B | 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 % | 1.18% | 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 | 890.16M | 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 | 714.35M | 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 % | 44.52% | 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 | 281.24M | 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 | 0 | 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 | 4M | 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 | 433.1M | 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 % | 26.99% | 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 | 533.12M | 564.34M | 534.63M | 414.69M | 542.51M | 479.43M | 170.12M | 1.1B | 1.04B | 916.33M | 925.04M | 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 % | 33.23% | 35.34% | 33.73% | 26.86% | 38.7% | 44.84% | 21.98% | 98.66% | 99.6% | 90.96% | 100.04% | 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 % | -1.81% | 5.56% | 28.92% | -23.56% | 13.16% | 181.81% | -84.53% | 6.05% | 13.18% | -0.94% | 290.54% | 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) | 100.01M | 111.23M | 70.86M | 39.66M | 63.91M | 50.49M | 48.46M | 781.25M | 718.62M | 651.9M | 686.15M | 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 | 521.31M | 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 | -87.98M | -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 | 5.89M | 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 | 93.87M | 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 | -5.66M | 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 | 427.44M | 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 % | 26.64% | 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 | 81.72M | 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 % | 19.12% | 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 | 345.72M | 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 % | 21.55% | 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 % | 10.39% | 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) | 345.72M | 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) | 7.49 | 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 % | 13.28% | 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 | 46.15M | 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 | 46.15M | 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% | - | - | - | - | - | - | - |
Stagnant Net Unit Growth
As reported in recent financial filings, Choice Hotels International experienced inconsistent top-line performance, with revenue growth fluctuating between a 2.3% increase and a 2.0% contraction over the last ten quarters, suggesting that the company's core franchising model is struggling to maintain consistent organic expansion momentum.
The erratic revenue trajectory appears to reflect the challenges of integrating recent acquisitions while navigating a high-interest-rate environment that hampers new construction. Investors should monitor whether the company can return to sustained growth as the pipeline for extended-stay brands matures or if the current volatility indicates a saturation of their core midscale market.
Based on the provided income statement data, Choice Hotels saw its gross margin contract to 35.7% in 2026Q1 from a peak of 54.0% in 2024Q2, indicating that the company's asset-light franchising model is facing significant pressure from rising costs or shifts in the underlying revenue mix.
The sharp decline in profitability metrics suggests that the company may be absorbing higher costs related to reservation system maintenance or providing increased incentives to franchisees to prevent churn. This margin erosion warrants further investigation into whether the company's pricing power is weakening relative to its historical performance.
According to the company's historical income statements, EPS has exhibited extreme swings, ranging from a 172.4% surge in 2024Q4 to a 53.2% decline in 2026Q1, which suggests that reported net income is heavily influenced by non-operating items and aggressive share repurchase activity rather than pure operational growth.
The reliance on share buybacks to drive EPS growth appears to be a double-edged sword, as it masks the underlying volatility in core franchise fee generation. Analysts should be wary of the sustainability of these earnings, particularly given the significant quarterly fluctuations in net income margins.
Data from the most recent quarters indicates that Choice Hotels' operating income dropped to $60.0M in 2026Q1, a significant decline from the $151.8M reported in 2024Q3, which may suggest that the company's competitive moat is being challenged by more agile, tech-forward lodging platforms and persistent macroeconomic headwinds.
Short-sellers might focus on the potential for long-term margin compression if the company is forced to increase capital support for franchisees to maintain unit counts. The failure to successfully acquire larger competitors may also leave the company with limited avenues for inorganic growth, forcing a reliance on organic expansion in a difficult lending climate.
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.