Exhibit 99.1

Contact:Brett D. Heffes 

763/520-8500

FOR IMMEDIATE RELEASE

WINMARK CORPORATION ANNOUNCES

SECOND QUARTER RESULTS

Minneapolis, MN (July 18, 2018)    Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended June 30, 2018 of $7,143,000 (or $1.73 per share diluted)  compared to net income of $5,530,700 (or $1.23 per share diluted) in the second quarter of 2017.  For the six months ended June 30, 2018, net income was $14,103,400 (or $3.42 per share diluted) compared to net income of $11,081,500 (or $2.48 per share diluted) for the same period last year.

Brett D. Heffes, Chief Executive Officer, commented, “The strong start to 2018 has been highlighted by the positive performance of our franchisees.  We continue to be pleased with the results of the overall business.”

Winmark Corporation creates, supports and finances business.  At June 30, 2018, there were 1,224 franchises in operation under the brands Plato’s Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore® and Music Go Round®.  An additional 62 retail franchises have been awarded but are not open.  In addition, at June 30, 2018, the Company had a lease portfolio of  $43.4 million.

This press release contains forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), relating to future events or the future financial performance of the Company.  Such forward-looking statements are only predictions or statements of intention subject to risks and uncertainties and actual events or results could differ materially from those anticipated.  Because actual result may differ, shareholders and prospective investors are cautioned not to place undue reliance on such forward-looking statements.

WINMARK CORPORATION

CONDENSED BALANCE SHEETS

(unaudited)

	June 30, 2018		December 30, 2017 (1)
ASSETS
Current Assets:
Cash and cash equivalents	$	1,232,900	$	1,073,200
Restricted cash		105,000		90,000
Receivables, net		1,502,000		1,796,000
Net investment in leases - current		17,046,100		15,332,300
Income tax receivable		—		2,161,800
Inventories		150,100		97,100
Prepaid expenses		765,800		901,600
Total current assets		20,801,900		21,452,000
Net investment in leases – long-term		26,380,400		25,945,300
Property and equipment, net		630,400		486,800
Goodwill		607,500		607,500
Other assets		396,800		350,400
	$	48,817,000	$	48,842,000
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current Liabilities:
Notes payable, net	$	3,236,100	$	3,236,100
Accounts payable		1,502,900		2,073,000
Income tax payable		237,200		—
Accrued liabilities		3,214,400		1,837,300
Discounted lease rentals		1,637,100		570,800
Deferred revenue		3,047,200		3,012,700
Total current liabilities		12,874,900		10,729,900
Long-Term Liabilities:
Line of credit		18,400,000		35,400,000
Notes payable, net		27,223,000		28,841,000
Discounted lease rentals		2,260,900		1,121,600
Deferred revenue		7,294,500		7,297,500
Other liabilities		1,161,300		845,000
Deferred income taxes		360,200		320,500
Total long-term liabilities		56,699,900		73,825,600
Shareholders’ Equity (Deficit):
Common stock, no par, 10,000,000 shares authorized, 3,868,526 and 3,843,078 shares issued and outstanding		3,329,600		1,476,200
Retained earnings (accumulated deficit)		(24,087,400)		(37,189,700)
Total shareholders’ equity (deficit)		(20,757,800)		(35,713,500)
	$	48,817,000	$	48,842,000

⁽¹⁾ Adjusted for the adoption of ASU 2014-09 under the retrospective method.

Winmark Corporation

CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

	Quarter Ended				Six Months Ended
	June 30, 2018		July 1, 2017(1)		June 30, 2018		July 1, 2017(1)
REVENUE:
Royalties	$	11,821,000	$	11,094,400	$	22,870,000	$	21,548,400
Leasing income		4,857,100		3,946,600		10,385,900		9,806,200
Merchandise sales		704,900		537,100		1,481,800		1,285,400
Franchise fees		378,100		468,800		779,000		837,400
Other		398,700		382,800		804,100		763,200
Total revenue		18,159,800		16,429,700		36,320,800		34,240,600
COST OF MERCHANDISE SOLD		681,000		499,100		1,423,500		1,214,100
LEASING EXPENSE		495,800		660,600		1,050,700		1,932,000
PROVISION FOR CREDIT LOSSES		109,000		(11,500)		204,000		(12,900)
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		6,799,300		6,468,400		13,493,700		12,980,900
Income from operations		10,074,700		8,813,100		20,148,900		18,126,500
INTEREST EXPENSE		(657,900)		(446,300)		(1,401,700)		(945,400)
INTEREST AND OTHER INCOME (EXPENSE)		(11,300)		100		(12,300)		1,900
Income before income taxes		9,405,500		8,366,900		18,734,900		17,183,000
PROVISION FOR INCOME TAXES		(2,262,500)		(2,836,200)		(4,631,500)		(6,101,500)
NET INCOME	$	7,143,000	$	5,530,700	$	14,103,400	$	11,081,500
EARNINGS PER SHARE – BASIC	$	1.85	$	1.32	$	3.66	$	2.65
EARNINGS PER SHARE – DILUTED	$	1.73	$	1.23	$	3.42	$	2.48
WEIGHTED AVERAGE SHARES OUTSTANDING – BASIC		3,858,446		4,201,982		3,852,880		4,184,558
WEIGHTED AVERAGE SHARES OUTSTANDING – DILUTED		4,133,535		4,483,647		4,129,055		4,467,072

(1)Adjusted for the adoption of ASU 2014-09 under the retrospective method.