Exhibit 99.1

Contact:Anthony D. Ishaug

763/520-8500

FOR IMMEDIATE RELEASE

WINMARK CORPORATION ANNOUNCES

FIRST QUARTER RESULTS

Minneapolis, MN (April 19, 2023)  -  Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended April 1, 2023 of $8,942,700 or $2.49 per share diluted compared to net income of $9,852,500 or $2.65 per share diluted in 2022. Results during the quarter were impacted by the Company’s decision in May 2021 to run-off its leasing portfolio.  

“2023 is off to a good start,” commented Brett D. Heffes, Chairman and Chief Executive Officer.

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 April 1, 2023, there were 1,297 franchises in operation and over 2,800 available territories.  An additional 70 franchises have been awarded but are not open.  

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)

	April 1, 2023		December 31, 2022
ASSETS
Current Assets:
Cash and cash equivalents	$	24,551,600	$	13,615,600
Restricted cash		80,000		65,000
Receivables, net		1,581,800		1,438,600
Net investment in leases - current		125,300		344,900
Income tax receivable		—		558,700
Inventories		414,300		770,600
Prepaid expenses		888,000		1,310,400
Total current assets		27,641,000		18,103,800
Net investment in leases – long-term		—		5,400
Property and equipment, net		1,606,100		1,704,600
Operating lease right of use asset		2,649,100		2,716,000
Intangible assets, net		3,259,800		3,348,300
Goodwill		607,500		607,500
Other assets		470,100		429,700
Deferred income taxes		3,516,200		3,540,400
	$	39,749,800	$	30,455,700
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current Liabilities:
Notes payable, net	$	4,217,900	$	4,217,900
Accounts payable		1,443,700		2,122,000
Income tax payable		2,009,900		—
Accrued liabilities		3,884,600		2,611,700
Deferred revenue		1,673,700		1,643,900
Total current liabilities		13,229,800		10,595,500
Long-Term Liabilities:
Line of Credit/Term Loan		30,000,000		30,000,000
Notes payable, net		38,012,200		39,066,700
Deferred revenue		7,242,100		6,974,200
Operating lease liabilities		4,151,100		4,287,000
Other liabilities		1,159,600		1,164,400
Total long-term liabilities		80,565,000		81,492,300
Shareholders’ Equity (Deficit):
Common stock, no par, 10,000,000 shares authorized, 3,463,191 and 3,459,673 shares issued and outstanding		2,873,000		1,806,700
Retained earnings (accumulated deficit)		(56,918,000)		(63,438,800)
Total shareholders’ equity (deficit)		(54,045,000)		(61,632,100)
	$	39,749,800	$	30,455,700

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Winmark Corporation

CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended
	April 1, 2023		March 26, 2022
Revenue:
Royalties	$	16,747,700	$	15,390,100
Leasing income		1,637,000		2,871,700
Merchandise sales		1,276,000		914,300
Franchise fees		378,200		420,600
Other		484,700		453,100
Total revenue		20,523,600		20,049,800
Cost of merchandise sold		1,187,300		864,500
Leasing expense		316,400		216,000
Provision for credit losses		(4,600)		(8,900)
Selling, general and administrative expenses		6,636,100		5,540,000
Income from operations		12,388,400		13,438,200
Interest expense		(797,600)		(513,100)
Interest and other income (expense)		125,700		(900)
Income before income taxes		11,716,500		12,924,200
Provision for income taxes		(2,773,800)		(3,071,700)
Net income	$	8,942,700	$	9,852,500
Earnings per share - basic	$	2.58	$	2.74
Earnings per share - diluted	$	2.49	$	2.65
Weighted average shares outstanding - basic		3,460,720		3,597,926
Weighted average shares outstanding - diluted		3,594,234		3,716,322

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Winmark Corporation

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three Months Ended
	April 1, 2023		March 26, 2022
OPERATING ACTIVITIES:
Net income	$	8,942,700	$	9,852,500
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		192,500		102,500
Provision for credit losses		(4,600)		(8,900)
Compensation expense related to stock options		475,900		421,600
Deferred income taxes		24,200		(113,200)
Operating lease right of use asset amortization		66,900		60,300
Tax benefits on exercised stock options		77,700		95,300
Change in operating assets and liabilities:
Receivables		(143,200)		(369,900)
Principal collections on lease receivables		423,800		530,500
Income tax receivable/payable		2,490,900		2,946,500
Inventories		356,300		(167,100)
Prepaid expenses		422,400		23,500
Other assets		(40,400)		(10,400)
Accounts payable		(678,300)		(203,000)
Accrued and other liabilities		1,140,200		390,500
Rents received in advance and security deposits		(194,200)		(159,700)
Deferred revenue		297,700		(43,100)
Net cash provided by operating activities		13,850,500		13,347,900
INVESTING ACTIVITIES:
Purchase of property and equipment		(5,500)		(21,500)
Net cash used for investing activities		(5,500)		(21,500)
FINANCING ACTIVITIES:
Proceeds from borrowings on line of credit/term loan		—		15,600,000
Payments on line of credit/term loan		—		(2,000,000)
Payments on notes payable		(1,062,500)		(1,062,500)
Repurchases of common stock		—		(36,591,400)
Proceeds from exercises of stock options		590,400		1,258,300
Dividends paid		(2,421,900)		(1,625,300)
Net cash used for financing activities		(2,894,000)		(24,420,900)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH		10,951,000		(11,094,500)
Cash, cash equivalents and restricted cash, beginning of period		13,680,600		11,437,000
Cash, cash equivalents and restricted cash, end of period	$	24,631,600	$	342,500
SUPPLEMENTAL DISCLOSURES:
Cash paid for interest	$	791,500	$	490,500
Cash paid for income taxes	$	181,200	$	143,100
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Balance Sheets to the total of the same amounts shown above:
	Three Months Ended
	April 1, 2023		March 26, 2022
Cash and cash equivalents	$	24,551,600	$	287,500
Restricted cash		80,000		55,000
Total cash, cash equivalents and restricted cash	$	24,631,600	$	342,500

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