US Market News
2 months ago
Wingstop Inc. Reports Fiscal First Quarter Financial ResultsApril 29, 2026 7:45 AM
PR Newswire (US)
97 Net New Openings in First Quarter, 17% Unit GrowthDALLAS, April 29, 2026 /PRNewswire/ -- Wingstop Inc. (NASDAQ: WING) today announced financial results for the fiscal first quarter ended March 28, 2026.
"Despite the decline in same store sales, we delivered system-wide sales growth and double-digit Adjusted EBITDA growth in the quarter supported by 17% unit growth. Our results demonstrate the resiliency of our asset-light, highly franchised model," said Michael Skipworth, President and Chief Executive Officer. "Our focus in the first quarter centered upon enhancing unit economics for our brand partners and advancing our strategies that we believe will position us to return to same store sales growth. We believe 2026 is going to be a transformational year for Wingstop and remain extremely confident in the long-term opportunity in front of us as we continue to scale into a top 10 global restaurant brand."Q1 2026 Highlights System-wide sales of $1.4 billion increased 5.9% vs. Q1 202597 net new openingsDomestic restaurant AUV of $2.0 millionDomestic same store sales decreased 8.7% vs. Q1 2025Digital sales represented 72.5% of system-wide salesTotal revenue of $183.7 million, an increase of 7.4%, vs. Q1 2025Net income of $29.9 million, or $1.08 per diluted shareAdjusted net income1 of $32.5 million and adjusted earnings per diluted share1 of $1.18Adjusted EBITDA1, increased 9.9% vs. Q1 2025 to $65.4 million1See "Non-GAAP Financial Measures" and the reconciliation tables accompanying this release for a discussion and reconciliation of certain non-GAAP financial measures included in this release.Key Operating Metrics
Thirteen Weeks Ended
March 28, 2026
March 29, 2025Number of system-wide restaurants open at end of period3,153
2,689Number of domestic franchise restaurants open at end of period2,596
2,250Number of international franchise restaurants open at end of period (1)500
388System-wide sales (in millions)$ 1,377
$ 1,300Domestic AUV (in thousands)$ 1,956
$ 2,135Domestic same store sales growth(8.7) %
0.5 %Company-owned domestic same store sales growth(2.2) %
1.4 %Net income (in thousands)$ 29,883
$ 92,265Adjusted net income (in thousands)$ 32,469
$ 28,316Adjusted EBITDA (in thousands) $ 65,403
$ 59,497
(1) Including U.S. territories.Q1 2026 Financial ResultsTotal revenue for the first quarter 2026 increased to $183.7 million from $171.1 million in the prior first quarter. Royalty revenue, franchise fees and other increased $8.7 million, of which $12.2 million was due to net new franchise development and $3.4 million related to an increase in vendor rebates, partially offset by a decrease of $5.9 million due to an 8.7% decline in domestic same store sales contributed by lower transaction volumes, reflecting continued pressure on consumer spending. Advertising fees increased $1.0 million due to a 5.9% increase in system-wide sales in the first quarter 2026. Company-owned restaurant sales increased $2.9 million due to the six additional corporate stores opened or acquired since the prior year period.Cost of sales was $24.7 million compared to $22.8 million in the prior first quarter. As a percentage of company-owned restaurant sales, cost of sales decreased to 74.9% from 76.0% in the prior first quarter. The decrease as a percentage of company-owned restaurant sales was primarily driven by a decline in food, beverage and packaging costs, reflecting a decrease in the cost of bone-in chicken wings as compared to the prior first quarter.Selling, general & administrative ("SG&A") expense increased $3.0 million to $34.4 million from $31.4 million in the prior first quarter. The increase in SG&A expense was primarily driven by $2.4 million in restructuring charges related to the corporate realignment announced during the fiscal first quarter 2026, partially offset by lower system implementation costs and other expenses compared to the prior year period.The prior fiscal first quarter included investment income of $93.8 million in the prior fiscal first quarter. This was related to the $97.2 million gain on the sale of our non-controlling interest in Lemon Pepper Holdings, Ltd. ("LPH"), Wingstop's United Kingdom master franchisee, recognized in the prior year period.Income tax expense was $10.7 million, yielding an effective tax rate of 26.3%, comparable to 25.1% in the prior fiscal first quarter. The decrease in total tax expense is primarily due to the absence of the prior year taxable gain on the sale of our non-controlling interest in LPH.Financial OutlookThe Company's outlook is dependent on the macro-environment which is inherently difficult to predict given current high levels of uncertainty. The Company is providing updated guidance for 2026:Low-single digit decline in domestic same store sales growth;SG&A of between $146 - $149 million, which includes $3 million of restructuring charges related to corporate realignment;Stock-based compensation expense of approximately $28 million.Additionally, the Company reiterates guidance for 2026:Global unit growth rate of 15% to 16%;Interest expense, net of approximately $43 million; andDepreciation and amortization of approximately $30 million.Restaurant DevelopmentAs of March 28, 2026, there were 3,153 Wingstop restaurants system-wide. This included 2,653 restaurants in the United States, of which 2,596 were franchised restaurants and 57 were company-owned, and 500 franchised restaurants were in international markets, including U.S. territories. During the first quarter 2026, there were 97 net system-wide Wingstop restaurant openings.Quarterly DividendIn recognition of our strong cash flow generation and our commitment to returning value to stockholders, on April 28, 2026, our board of directors authorized and declared a quarterly dividend of $0.30 per share of common stock, resulting in a total dividend of approximately $8.2 million. This dividend will be paid on June 5, 2026 to stockholders of record as of May 15, 2026.Share RepurchaseAs previously announced, during the fiscal first quarter of 2026, our board of directors authorized the purchase of up to an additional $300.0 million of our outstanding shares of common stock under our existing share repurchase program.We repurchased and retired 374,324 shares of our common stock at an average price of $208.08 per share during the first quarter of 2026. As of March 28, 2026, $313.4 million remained available under the share repurchase program previously approved by our board of directors.Since the inception of our share repurchase program in August 2023, we have repurchased and retired 2,959,473 shares of our common stock at an average price of $252.25 per share.The following definitions apply to these terms as used in this release:Domestic average unit volume ("AUV") consists of the average annual sales of all restaurants that have been open for a trailing 52-week period or longer. This measure is calculated by dividing sales during the applicable period for all restaurants being measured by the number of restaurants being measured. Domestic AUV includes revenue from both company-owned and franchised restaurants. Domestic AUV allows management to assess our domestic company-owned and franchised restaurant economics. Changes in domestic AUV are primarily driven by increases in same store sales and are also influenced by opening new restaurants.Domestic same store sales reflects the change in year-over-year sales for the same store restaurant base. We define the same store restaurant base to include those restaurants open for at least 52 full weeks. This measure highlights the performance of existing restaurants, while excluding the impact of new restaurant openings and permanent closures. We review same store sales for domestic company-owned restaurants as well as system-wide domestic restaurants. Domestic same store sales growth is driven by increases in transactions and average transaction size. Transaction size increases are driven by price increases or favorable mix shift from either an increase in items purchased or shifts into higher priced items.System-wide sales represents net sales for all of our company-owned and franchised restaurants, as reported by franchisees. This measure allows management to better assess changes in our royalty revenue, our overall store performance, the health of our brand and the strength of our market position relative to competitors. Our system-wide sales growth is driven by new restaurant openings as well as increases in same store sales.Adjusted EBITDA is defined as net income before interest expense, net, income tax expense (benefit), and depreciation and amortization (EBITDA), further adjusted for losses on debt extinguishment and financing transactions, transaction costs, costs and fees associated with investments in our strategic initiatives, gains and losses on non-recurring transactions, certain system implementation costs, certain restructuring charges, and stock-based compensation expense.Adjusted net income is defined as net income adjusted for losses on debt extinguishment and financing transactions, transaction costs, costs and fees associated with investments in our strategic initiatives, gains and losses on non-recurring transactions, certain system implementation costs, certain restructuring charges, and related tax adjustments.Adjusted earnings per diluted share is defined as adjusted net income divided by weighted average diluted share count.We caution investors that amounts presented in accordance with our definitions above may not be comparable to similar measures disclosed by our competitors because not all companies and analysts calculate certain non-GAAP measurements in the same manner.Conference Call and WebcastWe will host a conference call today to discuss the first fiscal quarter 2026 financial results at 10:00 AM Eastern Time. The conference call can be joined telephonically by dialing 1-877-259-5243 or 1-412-317-5176 (international) and asking for the Wingstop conference call. A replay will be available two hours after the call and can be accessed by dialing 1-855-669-9658 or 1-412-317-0088 (international), then entering the replay code 4161830. The replay will be available through Wednesday, May 6, 2026.The conference call will also be webcast live and later archived on the investor relations section of Wingstop's corporate website at ir.wingstop.com under the 'News & Events' section.About WingstopFounded in 1994 and headquartered in Dallas, TX, Wingstop Inc. (NASDAQ: WING) operates and franchises more than 3,000 restaurants worldwide, with approximately 98% of the total restaurant count owned by brand partners. Generating over $5 billion in system-wide sales in fiscal 2025, Wingstop offers made-to-order, always fresh classic and boneless wings, tenders, and chicken sandwiches in 12 bold, distinctive flavors, alongside signature sides and iconic housemade ranch and bleu cheese dips.Dedicated to Serving the World Flavor, Wingstop is the Official Chicken Partner of the NBA with a vision to become a Top 10 Global Restaurant Brand.Learn more at wingstop.com or follow @Wingstop on X, Instagram, Facebook and TikTok.Non-GAAP Financial MeasuresTo supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use non-GAAP financial measures, including those indicated above. By providing non-GAAP financial measures, together with a reconciliation to the most comparable GAAP measure, we believe we are enhancing investors' understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. These measures are not intended to be considered in isolation or as substitutes for, or superior to, financial measures prepared and presented in accordance with GAAP. The non-GAAP measures used in this press release may be different from the measures used by other companies. A reconciliation of each measure to the most directly comparable GAAP measure is available in this news release. In addition, the Current Report on Form 8-K furnished to the Securities and Exchange Commission (the "SEC") concurrent with the issuance of this press release includes a more detailed description of each of these non-GAAP financial measures, together with a discussion of the usefulness and purpose of such measures.Forward-looking StatementsThis news release includes statements of our expectations, intentions, plans and beliefs that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to come within the safe harbor protection provided by those sections. These statements, which involve risks and uncertainties, relate to the discussion of our business strategies and our expectations concerning future operations, margins, profitability, trends, liquidity and capital resources and to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable. These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms "may," "will," "should," "expect," "intend," "plan," "outlook," "guidance," "anticipate," "believe," "think," "estimate," "seek," "predict," "can," "could," "project," "potential" or, in each case, their negative or other variations or comparable terminology, although not all forward-looking statements are accompanied by such terms. Examples of forward-looking statements in this news release include, but are not limited to, our 2026 fiscal year outlook for domestic same store sales growth, global unit growth, SG&A expense, stock-based compensation expense, interest expense, net and depreciation and amortization. These forward-looking statements are made based on expectations and beliefs concerning future events affecting us and are subject to uncertainties, risks, and factors relating to our operations and business environments, all of which are difficult to predict and many of which are beyond our control, that could cause our actual results to differ materially from those matters expressed or implied by these forward-looking statements. Please refer to the risk factors discussed in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which can be found at the SEC's website www.sec.gov. The discussion of these risks is specifically incorporated by reference into this news release.When considering forward-looking statements in this news release or that we make in other reports or statements, you should keep in mind the cautionary statements in this news release and future reports we file with the SEC. New risks and uncertainties arise from time to time, and we cannot predict when they may arise or how they may affect us. Any forward-looking statement in this news release speaks only as of the date on which it was made. Except as required by law, we assume no obligation to update or revise any forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in any forward-looking statements, even if new information becomes available in the future.Media Contact
Kyra Harbert
Media@wingstop.com Investor Contact
Sarah Niehaus
IR@wingstop.com WINGSTOP INC. AND SUBSIDIARIESConsolidated Balance Sheets(amounts in thousands, except share and per share data)
March 28,
2026
December 27,
2025Assets
Current assets
Cash and cash equivalents$ 128,816
$ 196,572Restricted cash25,994
25,994Accounts receivable, net23,525
20,823Prepaid expenses and other current assets7,689
7,956Advertising fund assets, restricted30,921
16,143Total current assets216,945
267,488Property and equipment, net138,427
130,581Operating lease assets47,909
48,637Goodwill83,875
83,875Trademarks32,700
32,700Investments88,358
87,164Other non-current assets, net40,672
42,964Total assets$ 648,886
$ 693,409Liabilities and stockholders' deficit
Current liabilities
Accounts payable$ 9,362
$ 12,846Current portion of operating lease liabilities3,401
3,232Other current liabilities53,056
49,744Advertising fund liabilities30,921
16,143Total current liabilities96,740
81,965Long-term debt, net1,209,837
1,209,094Operating lease liabilities57,177
58,080Deferred revenues, net of current50,876
47,721Deferred income tax liabilities, net33,279
33,142Other non-current liabilities149
169Total liabilities1,448,058
1,430,171Commitments and contingencies
Stockholders' deficit
Common stock, $0.01 par value; 100,000,000 shares authorized;
27,232,479 and 27,540,619 shares issued and outstanding as of March 28,
2026 and December 27, 2025, respectively272
275Additional paid-in-capital213
1,529Retained deficit(804,285)
(744,915)Accumulated other comprehensive income (loss)4,628
6,349Total stockholders' deficit(799,172)
(736,762)Total liabilities and stockholders' deficit$ 648,886
$ 693,409 WINGSTOP INC. AND SUBSIDIARIESConsolidated Statements of Operations(amounts in thousands, except per share data)
Thirteen Weeks Ended
March 28,
2026
March 29,
2025
(Unaudited)
(Unaudited)Revenue:
Royalty revenue, franchise fees and other$ 87,470
$ 78,775Advertising fees63,269
62,272Company-owned restaurant sales32,986
30,047Total revenue183,725
171,094Costs and expenses:
Cost of sales (1)24,716
22,835Advertising expenses67,311
65,795Selling, general and administrative34,449
31,440Depreciation and amortization6,841
6,228Loss on disposal of assets—
6,535Total costs and expenses133,317
132,833Operating income50,408
38,261Interest expense, net9,764
8,910Investment (income) expense72
(93,839)Income before income tax expense40,572
123,190Income tax expense10,689
30,925Net income$ 29,883
$ 92,265
Earnings per share
Basic$ 1.09
$ 3.25Diluted$ 1.08
$ 3.24
Weighted average shares outstanding
Basic27,481
28,385Diluted27,593
28,509
Dividends per share$ 0.30
$ 0.27
(1) Cost of sales includes all operating expenses of company-owned restaurants, including advertising expenses, but excludes depreciation and amortization, which are presented separately. WINGSTOP INC. AND SUBSIDIARIESUnaudited Supplemental InformationCost of Sales Margin Analysis(amounts in thousands)
Thirteen Weeks Ended
March 28, 2026
March 29, 2025
In dollars
As a % of
company-owned
restaurant sales
In dollars
As a % of
company-owned
restaurant salesCost of sales:
Food, beverage and packaging costs$ 11,794
35.8 %
$ 11,241
37.4 %Labor costs7,889
23.9 %
7,153
23.8 %Other restaurant operating expenses5,869
17.8 %
5,191
17.3 %Vendor rebates(836)
(2.5) %
(750)
(2.5) %Total cost of sales$ 24,716
74.9 %
$ 22,835
76.0 % WINGSTOP INC. AND SUBSIDIARIESUnaudited Supplemental InformationRestaurant Count
Thirteen Weeks Ended
March 28,
2026
March 29,
2025Domestic Franchised Activity
Beginning of period2,529
2,154Openings67
96Closures—
—Restaurants end of period2,596
2,250
Domestic Company-Owned Activity
Beginning of period57
50Openings—
1Closures—
—Restaurants end of period57
51
Total Domestic Restaurants2,653
2,301
International Franchised Activity(1)
Beginning of period470
359Openings33
30Closures(3)
(1)Restaurants end of period500
388
Total System-wide Restaurants3,153
2,689
(1) Includes U.S. territories. WINGSTOP INC. AND SUBSIDIARIESNon-GAAP Financial Measures - EBITDA and Adjusted EBITDA(Unaudited)(amounts in thousands)
Thirteen Weeks Ended
March 28,
2026
March 29,
2025Net income$ 29,883
$ 92,265Interest expense, net9,764
8,910Income tax expense10,689
30,925Depreciation and amortization6,841
6,228EBITDA$ 57,177
$ 138,328Additional adjustments:
Transaction costs (a)—
497Loss on sale of building (b)—
6,534Gain on sale of investment (c)—
(92,485)System implementation costs (d)546
1,311Amortization of capitalized system implementation costs (e)467
—Restructuring charges (f)2,390
—Stock-based compensation expense (g)4,823
5,312Adjusted EBITDA$ 65,403
$ 59,497
(a) Represents non-recurring transaction costs that are not part of our ongoing operations and were incurred to execute the sale and subsequent reinvestment of the Company's unconsolidated equity method investment in Lemon Pepper Holdings, Ltd. ("LPH"), Wingstop's United Kingdom master franchisee, during the fiscal first quarter 2025; all transaction costs are included in Selling, general and administrative on the Consolidated Statements of Operations.(b) Represents a non-recurring loss on sale of an office building during the fiscal first quarter 2025, which was included in Loss on disposal of assets on the Consolidated Statements of Operations.(c) Represents a non-recurring gain related to the sale of the Company's unconsolidated equity method investment in LPH during the fiscal first quarter 2025, which was included in Investment income, net on the Consolidated Statements of Operations.(d) System implementation costs represent non-recurring expenses incurred related to the development and implementation of new enterprise resource planning, human capital management, and global development technology, which are included in Selling, general and administrative on the Consolidated Statements of Operations.(e) Represents amortization associated with capitalized cloud computing costs related to our system implementation, which are included in Selling, general and administrative on the Consolidated Statements of Operations.(f) Represents certain restructuring charges related to corporate realignment announced on January 13, 2026.(g) Includes non-cash, stock-based compensation, net of forfeitures. WINGSTOP INC. AND SUBSIDIARIESNon-GAAP Financial Measures - Adjusted Net Income and Adjusted EPS(Unaudited)(amounts in thousands, except per share data)
Thirteen Weeks Ended
March 28,
2026
March 29,
2025Numerator:
Net income$ 29,883
$ 92,265Adjustments:
Transaction costs (a)—
497Loss on disposal of building (b)—
6,534Gain on sale of investment (c)—
(92,485)System implementation costs (d)546
1,311Amortization of capitalized system implementation costs (e)467
—Restructuring charges (f)2,390
—Tax effect of adjustments (g)(817)
20,194Adjusted net income$ 32,469
$ 28,316
Denominator:
Weighted-average shares outstanding - diluted 27,593
28,509
Adjusted earnings per diluted share$ 1.18
$ 0.99
(a) Represents non-recurring transaction costs that are not part of our ongoing operations and were incurred to execute the sale and subsequent reinvestment of the Company's unconsolidated equity method investment in LPH, the Company's United Kingdom master franchisee, during the 2025 fiscal year; all transaction costs are included in Selling, general and administrative on the Consolidated Statements of Operations.(b) Represents a non-recurring loss on sale of an office building during the fiscal first quarter 2025, which was included in Loss on disposal of assets on the Consolidated Statements of Operations.(c) Represents a non-recurring gain related to the sale of the Company's unconsolidated equity method investment in LPH during the fiscal first quarter 2025, which was included in Investment income, net on the Consolidated Statements of Operations.(d) System implementation costs represent non-recurring expenses incurred related to the development and implementation of new enterprise resource planning, human capital management, and global development technology, which are included in Selling, general and administrative on the Consolidated Statements of Operations.(e) Represents amortization associated with capitalized cloud computing costs related to our system implementation, which are included in Selling, general and administrative on the Consolidated Statements of Operations.(f) Represents certain restructuring charges related to corporate realignment announced on January 13, 2026.(g) Represents the tax effect of the aforementioned adjustments to reflect corporate income taxes at an assumed effective tax rate of 24% for the thirteen weeks ended March 28, 2026, which includes provisions for U.S. federal income taxes, and assumes the respective statutory rates for applicable state and local jurisdictions.
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Original: Wingstop Inc. Reports Fiscal First Quarter Financial Results
US Market News
5 months ago
Wingstop Inc. Reports Fourth Quarter and Fiscal Year 2025 Financial ResultsFebruary 18, 2026 7:45 AM
PR Newswire (US)
Record 493 Net New Openings in 2025, 19.2% Unit GrowthAchieves 12.1% System-wide Sales Growth for Fiscal Year 2025Introduces 2026 GuidanceDALLAS, Feb. 18, 2026 /PRNewswire/ -- Wingstop Inc. (NASDAQ: WING) today announced financial results for the fourth quarter and fiscal year ended December 27, 2025.
"Our team continues to demonstrate operational excellence as we opened 493 net new restaurants and expanded into six new international markets," said Michael Skipworth, President & Chief Executive Officer. "I am proud of our efforts as we implemented the Wingstop Smart Kitchen in all of our 2,586 domestic restaurants in just 10 months. In a year marked by uncertainty, the structural advantages of our operating model are reflected in our 15% Adjusted EBITDA growth in 2025. This year's performance reflects the compelling returns of our unit economics, but also the confidence in our strategy that will enable our vision of reaching more than 10,000 restaurants globally."Fourth Quarter 2025 Highlights System-wide sales of $1.3 billion increased 9.3% vs. 2024124 net new openingsDomestic restaurant AUV of $2.0 millionDomestic same store sales decreased 5.8% vs. 2024Digital sales represented 73.2% of system-wide salesTotal revenue of $175.7 million, an increase of 8.6% vs. 2024Net income of $26.8 million, or $0.96 per diluted shareAdjusted net income1 of $27.8 million and adjusted earnings per diluted share1 of $1.00Adjusted EBITDA1, increased 9.8% vs. 2024 to $61.9 millionFiscal Year 2025 Highlights System-wide sales increased 12.1% vs. 2024 to $5.3 billion493 net new openingsDomestic same store sales decreased 3.3% vs. 2024Total revenue of $696.9 million, an increase of 11.4% vs. 2024Net income increased 60.3% vs. 2024 to $174.3 million, or $6.21 per diluted shareAdjusted net income1 increased 3.8% vs. 2024 to $114.5 million, while adjusted earnings per diluted share1 increased to $4.08 from $3.75 in 2024Adjusted EBITDA1, increased 15.2% vs. 2024 to $244.2 million1See "Non-GAAP Financial Measures" and the reconciliation tables accompanying this release for a discussion and reconciliation of certain non-GAAP financial measures included in this release.Key Operating Metrics
Thirteen Weeks Ended
December 27, 2025
December 28, 2024Number of system-wide restaurants open at end of period3,056
2,563Number of domestic franchise restaurants open at end of period2,529
2,154Number of international franchise restaurants open at end of period (1)470
359System-wide sales (in millions)$ 1,347
$ 1,232Domestic AUV (in thousands)$ 2,000
$ 2,138Domestic same store sales growth(5.8) %
10.1 %Company-owned domestic same store sales growth1.6 %
3.8 %Net income (in thousands)$ 26,760
$ 26,753Adjusted net income (in thousands)$ 27,830
$ 27,743Adjusted EBITDA (in thousands) $ 61,878
$ 56,348_____________(1) Including U.S. territories.Fourth Quarter 2025 Financial ResultsTotal revenue for the fourth quarter 2025 increased to $175.7 million from $161.8 million in the prior fourth quarter. Royalty revenue, franchise fees and other increased $6.2 million, of which $10.6 million was due to net new franchise development, partially offset by a decrease of $3.6 million due to a 5.8% decline in domestic same store sales. Advertising fees increased $5.3 million due to a 9.3% increase in system-wide sales in the fourth quarter 2025, as well as an increase in the national advertising fund contribution rate to 5.5% from 5.3%, effective the first day of the fiscal first quarter 2025. Company-owned restaurant sales increased $2.3 million due to company-owned restaurant same store sales growth of 1.6%, driven primarily by an increase in transactions.Cost of sales was $24.5 million compared to $23.3 million in the prior fourth quarter. As a percentage of company-owned restaurant sales, cost of sales decreased to 75.6% from 77.6% in the prior fourth quarter. The decrease as a percentage of company-owned restaurant sales was primarily driven by sales leverage on other operating expenses, as well as a decline in food, beverage and packaging costs primarily resulting from a decrease in the cost of bone-in chicken wings as compared to the prior fourth quarter.Selling, general & administrative ("SG&A") expense increased $2.1 million to $33.3 million from $31.2 million in the prior fourth quarter. The increase in SG&A expense was driven by an increase in headcount related expenses.Interest expense, net increased $2.8 million to $9.2 million from $6.4 million in the prior fourth quarter. The increase was primarily driven by interest expense related to the securitized financing transaction completed in December 2024 to support our return of capital strategy, which increased our outstanding debt by $500 million, partially offset by additional interest income earned on our investments, as compared to the prior year period.Fiscal Year 2026 GuidanceFlat to low-single digit domestic same store sales growth;Global unit growth rate of 15% to 16%;SG&A of between $151 - $154 million, which includes $3 million of restructuring charges related to corporate realignment;Stock-based compensation expense of approximately $32 million;Interest expense, net of approximately $43 million; andDepreciation and amortization of approximately $30 million.Restaurant DevelopmentAs of December 27, 2025, there were 3,056 Wingstop restaurants system-wide. This included 2,586 restaurants in the United States, of which 2,529 were franchised restaurants and 57 were company-owned, and 470 franchised restaurants were in international markets, including U.S. territories. During the fourth quarter 2025, there were 124 net system-wide Wingstop restaurant openings.Quarterly DividendIn recognition of our strong cash flow generation and our commitment to returning value to stockholders, on February 17, 2026, our board of directors authorized and declared a quarterly dividend of $0.30 per share of common stock, resulting in a total dividend of approximately $8.3 million. This dividend will be paid on March 27, 2026 to stockholders of record as of March 6, 2026.Share RepurchaseDuring the fourth quarter of 2025, we repurchased and retired 248,278 shares of our common stock at an average price of $241.65 per share. As of December 27, 2025, $91.3 million remained available under the share repurchase program previously approved by our Board of Directors.Since the inception of our share repurchase program in August 2023, we have repurchased and retired 2,585,149 shares of our common stock at an average price of $258.64 per share.The following definitions apply to these terms as used in this release:Domestic average unit volume ("AUV") consists of the average annual sales of all restaurants that have been open for a trailing 52-week period or longer. This measure is calculated by dividing sales during the applicable period for all restaurants being measured by the number of restaurants being measured. Domestic AUV includes revenue from both company-owned and franchised restaurants. Domestic AUV allows management to assess our domestic company-owned and franchised restaurant economics. Changes in domestic AUV are primarily driven by increases in same store sales and are also influenced by opening new restaurants.Domestic same store sales reflects the change in year-over-year sales for the same store restaurant base. We define the same store restaurant base to include those restaurants open for at least 52 full weeks. This measure highlights the performance of existing restaurants, while excluding the impact of new restaurant openings and permanent closures. We review same store sales for domestic company-owned restaurants as well as system-wide domestic restaurants. Domestic same store sales growth is driven by increases in transactions and average transaction size. Transaction size increases are driven by price increases or favorable mix shift from either an increase in items purchased or shifts into higher priced items.System-wide sales represents net sales for all of our company-owned and franchised restaurants, as reported by franchisees. This measure allows management to better assess changes in our royalty revenue, our overall store performance, the health of our brand and the strength of our market position relative to competitors. Our system-wide sales growth is driven by new restaurant openings as well as increases in same store sales.Adjusted EBITDA is defined as net income before interest expense, net, income tax expense (benefit), and depreciation and amortization (EBITDA), further adjusted for losses on debt extinguishment and financing transactions, transaction costs, costs and fees associated with investments in our strategic initiatives, gains and losses on non-recurring transactions, certain system implementation costs, and stock-based compensation expense.Adjusted net income is defined as net income adjusted for losses on debt extinguishment and financing transactions, transaction costs, costs and fees associated with investments in our strategic initiatives, gains and losses on non-recurring transactions, certain system implementation costs, and related tax adjustments.Adjusted earnings per diluted share is defined as adjusted net income divided by weighted average diluted share count.We caution investors that amounts presented in accordance with our definitions above may not be comparable to similar measures disclosed by our competitors because not all companies and analysts calculate certain non-GAAP measurements in the same manner.Conference Call and WebcastWe will host a conference call today to discuss the fourth quarter and fiscal year 2025 financial results at 10:00 AM Eastern Time. The conference call can be joined telephonically by dialing 1-877-259-5243 or 1-412-317-5176 (international) and asking for the Wingstop conference call. A replay will be available two hours after the call and can be accessed by dialing 1-855-669-9658 or 1-412-317-0088 (international), then entering the replay code 4161830. The replay will be available through Wednesday, February 25, 2026.The conference call will also be webcast live and later archived on the investor relations section of Wingstop's corporate website at ir.wingstop.com under the 'News & Events' section.About WingstopFounded in 1994 and headquartered in Dallas, TX, Wingstop Inc. (NASDAQ: WING) operates and franchises more than 3,000 restaurants worldwide, with approximately 98% of the total restaurant count owned by brand partners. Generating over $5 billion in system-wide sales in fiscal 2025, Wingstop offers made-to-order, always fresh classic and boneless wings, tenders, and chicken sandwiches in 12 bold, distinctive flavors, alongside signature sides and iconic housemade ranch and bleu cheese dips.Dedicated to Serving the World Flavor, Wingstop is the Official Chicken Partner of the NBA with a vision to become a Top 10 Global Restaurant Brand.Learn more at wingstop.com or follow @Wingstop on X, Instagram, Facebook and TikTok.Non-GAAP Financial MeasuresTo supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use non-GAAP financial measures, including those indicated above. By providing non-GAAP financial measures, together with a reconciliation to the most comparable GAAP measure, we believe we are enhancing investors' understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. These measures are not intended to be considered in isolation or as substitutes for, or superior to, financial measures prepared and presented in accordance with GAAP. The non-GAAP measures used in this press release may be different from the measures used by other companies. A reconciliation of each measure to the most directly comparable GAAP measure is available in this news release. In addition, the Current Report on Form 8-K furnished to the Securities and Exchange Commission (the "SEC") concurrent with the issuance of this press release includes a more detailed description of each of these non-GAAP financial measures, together with a discussion of the usefulness and purpose of such measures.Forward-looking StatementsThis news release includes statements of our expectations, intentions, plans and beliefs that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to come within the safe harbor protection provided by those sections. These statements, which involve risks and uncertainties, relate to the discussion of our business strategies and our expectations concerning future operations, margins, profitability, trends, liquidity and capital resources and to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable. These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms "may," "will," "should," "expect," "intend," "plan," "outlook," "guidance," "anticipate," "believe," "think," "estimate," "seek," "predict," "can," "could," "project," "potential" or, in each case, their negative or other variations or comparable terminology, although not all forward-looking statements are accompanied by such terms. Examples of forward-looking statements in this news release include, but are not limited to, our 2026 fiscal year outlook for domestic same store sales growth, global unit growth, SG&A expense, stock-based compensation expense, interest expense, net and depreciation and amortization. These forward-looking statements are made based on expectations and beliefs concerning future events affecting us and are subject to uncertainties, risks, and factors relating to our operations and business environments, all of which are difficult to predict and many of which are beyond our control, that could cause our actual results to differ materially from those matters expressed or implied by these forward-looking statements. Please refer to the risk factors discussed in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which can be found at the SEC's website www.sec.gov. The discussion of these risks is specifically incorporated by reference into this news release.When considering forward-looking statements in this news release or that we make in other reports or statements, you should keep in mind the cautionary statements in this news release and future reports we file with the SEC. New risks and uncertainties arise from time to time, and we cannot predict when they may arise or how they may affect us. Any forward-looking statement in this news release speaks only as of the date on which it was made. Except as required by law, we assume no obligation to update or revise any forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in any forward-looking statements, even if new information becomes available in the future.Media Contact
Kyra Harbert
Media@wingstop.comInvestor Contact
Sarah Niehaus
IR@wingstop.com WINGSTOP INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(amounts in thousands, except share and per share data)
December 27,
2025
December 28,
2024Assets
Current assets
Cash and cash equivalents$ 196,572
$ 315,910Restricted cash25,994
20,868Accounts receivable, net20,823
19,661Prepaid expenses and other current assets7,956
6,520Advertising fund assets, restricted16,143
32,659Total current assets267,488
395,618Property and equipment, net130,581
125,953Operating lease assets48,637
49,046Goodwill83,875
74,718Trademarks32,700
32,700Investments87,164
8,511Other non-current assets, net42,964
29,700Total assets$ 693,409
$ 716,246Liabilities and stockholders' deficit
Current liabilities
Accounts payable$ 12,846
$ 6,943Current portion of operating lease liabilities3,232
1,059Other current liabilities49,744
46,782Advertising fund liabilities16,143
32,659Total current liabilities81,965
87,443Long-term debt, net1,209,094
1,206,201Operating lease liabilities58,080
58,169Deferred revenues, net of current47,721
38,877Deferred income tax liabilities, net33,142
1,085Other non-current liabilities169
57Total liabilities1,430,171
1,391,832Commitments and contingencies
Stockholders' deficit
Common stock, $0.01 par value; 100,000,000 shares authorized;
27,540,619 and 28,662,614 shares issued and outstanding as of
December 27, 2025 and December 28, 2024, respectively275
287Additional paid-in-capital1,529
1,568Retained deficit(744,915)
(676,940)Accumulated other comprehensive income (loss)6,349
(501)Total stockholders' deficit(736,762)
(675,586)Total liabilities and stockholders' deficit$ 693,409
$ 716,246 WINGSTOP INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(amounts in thousands, except per share data)
Thirteen Weeks Ended
Fiscal Year Ended
December 27,
2025
December 28,
2024
December 27,
2025
December 28,
2024
(Unaudited)
(Unaudited)
Revenue:
Royalty revenue, franchise fees and other$ 81,931
$ 75,702
$ 321,782
$ 288,354Advertising fees61,367
56,063
247,619
217,630Company-owned restaurant sales32,396
30,056
127,452
119,823Total revenue175,694
161,821
696,853
625,807Costs and expenses:
Cost of sales (1)24,476
23,321
96,058
91,632Advertising expenses64,676
60,601
261,545
233,306Selling, general and administrative33,320
31,232
128,356
116,801Depreciation and amortization6,387
5,865
25,068
19,490(Gain) loss on disposal of assets—
(1,038)
6,535
(1,038)Total costs and expenses128,859
119,981
517,562
460,191Operating income46,835
41,840
179,291
165,616Interest expense, net9,205
6,418
35,784
21,292Investment (income) expense29
(1,292)
(93,682)
(2,866)Income before income tax expense37,601
36,714
237,189
147,190Income tax expense10,841
9,961
62,922
38,473Net income$ 26,760
$ 26,753
$ 174,267
$ 108,717
Earnings per share
Basic$ 0.97
$ 0.92
$ 6.23
$ 3.72Diluted$ 0.96
$ 0.92
$ 6.21
$ 3.70
Weighted average shares outstanding
Basic27,698
29,091
27,974
29,262Diluted27,778
29,210
28,074
29,384
Dividends per share$ 0.30
$ 0.27
$ 0.84
$ 0.71_____________(1)Cost of sales includes all operating expenses of company-owned restaurants, including advertising expenses, but excludes depreciation and amortization, which are presented separately.
WINGSTOP INC. AND SUBSIDIARIES
Unaudited Supplemental Information
Cost of Sales Margin Analysis
(amounts in thousands)
Thirteen Weeks Ended
December 27, 2025
December 28, 2024
In dollars
As a % of
company-owned
restaurant sales
In dollars
As a % of
company-owned
restaurant salesCost of sales:
Food, beverage and packaging costs$ 11,932
36.8 %
$ 11,184
37.2 %Labor costs7,480
23.1 %
7,299
24.3 %Other restaurant operating expenses5,911
18.2 %
5,589
18.6 %Vendor rebates(847)
(2.6) %
(751)
(2.5) %Total cost of sales$ 24,476
75.6 %
$ 23,321
77.6 %
Fiscal Year Ended
December 27, 2025
December 28, 2024
In dollars
As a % of
company-owned
restaurant sales
In dollars
As a % of
company-owned
restaurant salesCost of sales:
Food, beverage and packaging costs$ 46,893
36.8 %
$ 43,371
36.2 %Labor costs29,576
23.2 %
28,317
23.6 %Other restaurant operating expenses22,751
17.9 %
23,025
19.2 %Vendor rebates(3,162)
(2.5) %
(3,081)
(2.6) %Total cost of sales$ 96,058
75.4 %
$ 91,632
76.5 % WINGSTOP INC. AND SUBSIDIARIES
Unaudited Supplemental Information
Restaurant Count
Thirteen Weeks Ended
Fiscal Year Ended
December 27,
2025
December 28,
2024
December 27,
2025
December 28,
2024Domestic Franchised Activity
Beginning of period2,450
2,064
2,154
1,877Openings85
83
384
274Closures(4)
—
(4)
—Acquired by Company(2)
—
(5)
(4)Re-franchised by Company—
7
—
7Restaurants end of period2,529
2,154
2,529
2,154
Domestic Company-Owned Activity
Beginning of period55
56
50
49Openings—
1
3
4Closures—
—
(1)
—Acquired by Company2
—
5
4Re-franchised to franchisees—
(7)
—
(7)Restaurants end of period57
50
57
50
Total Domestic Restaurants2,586
2,204
2,586
2,204
International Franchised Activity(1)
Beginning of period427
338
359
288Openings49
22
122
77Closures(6)
(1)
(11)
(6)Restaurants end of period470
359
470
359
Total System-wide Restaurants3,056
2,563
3,056
2,563_____________(1) Includes U.S. territories. WINGSTOP INC. AND SUBSIDIARIES
Non-GAAP Financial Measures - EBITDA and Adjusted EBITDA
(Unaudited)
(amounts in thousands)
Thirteen Weeks Ended
Fiscal Year Ended
December 27,
2025
December 28,
2024
December 27,
2025
December 28,
2024Net income$ 26,760
$ 26,753
$ 174,267
$ 108,717Interest expense, net9,205
6,418
35,784
21,292Income tax expense10,841
9,961
62,922
38,473Depreciation and amortization6,387
5,865
25,068
19,490EBITDA$ 53,193
$ 48,997
$ 298,041
$ 187,972Additional adjustments:
Transaction costs (a)—
316
497
316Loss on sale of building (b)—
—
6,534
—Gain on sale of investment (c)—
—
(92,485)
—System implementation costs (d)931
986
5,839
1,713Amortization of capitalized system
implementation costs (e)477
—
934
—Stock-based compensation expense (f)7,277
6,049
24,878
22,060Adjusted EBITDA$ 61,878
$ 56,348
$ 244,238
$ 212,061_____________(a)Represents non-recurring transaction costs that are not part of our ongoing operations and were incurred to execute the sale and subsequent reinvestment of the Company's unconsolidated equity method investment in Lemon Pepper Holdings, Ltd. ("LPH"), Wingstop's United Kingdom master franchisee, during the fiscal first quarter 2025; all transaction costs are included in Selling, general and administrative on the Consolidated Statements of Operations.(b)Represents a non-recurring loss on sale of an office building during the fiscal first quarter 2025, which was included in Loss on disposal of assets on the Consolidated Statements of Operations.(c)Represents a non-recurring gain related to the sale of the Company's unconsolidated equity method investment in LPH during the fiscal first quarter 2025, which was included in Investment income, net on the Consolidated Statements of Operations.(d)System implementation costs represent non-recurring expenses incurred related to the development and implementation of new enterprise resource planning, human capital management, and global development technology, which are included in Selling, general and administrative on the Consolidated Statements of Operations.(e)Represents amortization associated with capitalized cloud computing costs related to our system implementation, which are included in Selling, general and administrative on the Consolidated Statements of Operations.(f)Includes non-cash, stock-based compensation, net of forfeitures. WINGSTOP INC. AND SUBSIDIARIES
Non-GAAP Financial Measures - Adjusted Net Income and Adjusted EPS
(Unaudited)
(amounts in thousands, except per share data)
Thirteen Weeks Ended
Fiscal Year Ended
December 27,
2025
December 28,
2024
December 27,
2025
December 28,
2024Numerator:
Net income$ 26,760
$ 26,753
$ 174,267
$ 108,717Adjustments:
Transaction costs (a)—
316
497
316Loss on disposal of building (b)—
—
6,534
—Gain on sale of investment (c)—
—
(92,485)
—System implementation costs (d)931
986
5,839
1,713Amortization of capitalized system
implementation costs (e)477
—
934
—Tax effect of adjustments (f)(338)
(312)
18,883
(487)Adjusted net income$ 27,830
$ 27,743
$ 114,469
$ 110,259
Denominator:
Weighted-average shares outstanding - diluted 27,778
29,210
28,074
29,384
Adjusted earnings per diluted share$ 1.00
$ 0.95
$ 4.08
$ 3.75_____________(a)Represents non-recurring transaction costs that are not part of our ongoing operations and were incurred to execute the sale and subsequent reinvestment of the Company's unconsolidated equity method investment in LPH, the Company's United Kingdom master franchisee, during the 2025 fiscal year; all transaction costs are included in Selling, general and administrative on the Consolidated statements of Comprehensive Income.(b)Represents a non-recurring loss on sale of an office building during the fiscal first quarter 2025, which was included in Loss on disposal of assets on the Consolidated Statements of Operations.(c)Represents a non-recurring gain related to the sale of the Company's unconsolidated equity method investment in LPH during the fiscal first quarter 2025, which was included in Investment income, net on the Consolidated Statements of Operations(d)System implementation costs represent non-recurring expenses incurred related to the development and implementation of new enterprise resource planning and human capital management technology, which are included in Selling, general and administrative on the Consolidated Statements of Operations.(e)Represents amortization associated with capitalized cloud computing costs related to our system implementation, which are included in Selling, general and administrative on the Consolidated Statements of Operations.(f)Represents the tax effect of the aforementioned adjustments to reflect corporate income taxes at an assumed effective tax rate of 24% for the thirteen weeks ended December 27, 2025, which includes provisions for U.S. federal income taxes, and assumes the respective statutory rates for applicable state and local jurisdictions.
View original content to download multimedia:https://www.prnewswire.com/news-releases/wingstop-inc-reports-fourth-quarter-and-fiscal-year-2025-financial-results-302691098.htmlSOURCE Wingstop Restaurants Inc.
Original: Wingstop Inc. Reports Fourth Quarter and Fiscal Year 2025 Financial Results
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