Wingstop Inc. Reports Fiscal First Quarter Financial Results
Rhea-AI Summary
Wingstop (NASDAQ: WING) reported Q1 FY2026 results: system-wide sales $1.377B (+5.9% YoY), total revenue $183.7M (+7.4% YoY), net income $29.9M ($1.08 diluted), adjusted EBITDA $65.4M (+9.9% YoY) and 97 net new restaurant openings (17% unit growth).
The company declared a quarterly dividend of $0.30/share and authorized up to $300M in additional share repurchases; guidance includes low-single digit domestic SSS decline and 15–16% global unit growth for 2026.
AI-generated analysis. Not financial advice.
Positive
- System-wide sales of $1.377B (+5.9% YoY)
- Adjusted EBITDA of $65.4M (+9.9% YoY)
- 97 net new restaurant openings (17% unit growth)
Negative
- Domestic same store sales declined (8.7%)
- Net income down to $29.9M from $92.3M prior year
- Guidance expects low-single digit domestic SSS decline for 2026
News Market Reaction – WING
On the day this news was published, WING declined 1.02%, reflecting a mild negative market reaction. Argus tracked a trough of -11.0% from its starting point during tracking. Our momentum scanner triggered 37 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $49M from the company's valuation, bringing the market cap to $4.73B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
WING is down 2.68% while key restaurant peers show mixed moves: CAVA, EAT, SHAK, and BROS are negative and CAKE is slightly positive. Scanner momentum highlights non-peer names moving up, reinforcing a stock-specific reaction.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 18 | Earnings results | Positive | +10.8% | FY2025 system-wide sales and profitability growth with strong unit expansion. |
| Nov 04 | Earnings results | Positive | +10.9% | Q3 2025 revenue and EBITDA growth with 114 net new restaurants. |
| Jul 30 | Earnings results | Positive | +26.9% | Record Q2 2025 net openings and double-digit system-wide sales growth. |
| Apr 30 | Earnings results | Positive | +14.5% | Q1 2025 strong system-wide sales and net income surge with 126 openings. |
| Feb 19 | Earnings results | Positive | -13.4% | Q4 2024 record expansion and 21st year of same-store sales growth. |
Past earnings have typically seen positive single- to double-digit moves, even when domestic same-store sales softened.
Over the past year, Wingstop’s earnings reports have emphasized rapid unit growth, strong system-wide sales, and expanding profitability. Prior quarters highlighted record net new openings, digital mix above 70%, and significant adjusted EBITDA growth, with domestic same-store sales starting to soften in 2025. Market reactions around these earnings have usually been strongly positive, suggesting investors focused on expansion and margins. Today’s Q1 2026 release fits into this trajectory with continued unit growth but a larger domestic same-store sales decline and updated 2026 guidance.
Historical Comparison
Across five prior earnings releases, average 24h stock moves were about 9.93%, mostly positive, showing that earnings reports have often been strong trading catalysts.
Earnings releases have tracked Wingstop’s evolution from record same-store growth in 2024 to 2025–2026 phases marked by rapid global unit expansion, high digital mix, and emerging pressure on domestic same-store sales.
Market Pulse Summary
This announcement highlights Q1 2026 revenue growth to $183.7M, adjusted EBITDA of $65.4M, and 97 net new openings, alongside an 8.7% decline in domestic same-store sales. Digital sales remained high at 72.5% of system-wide sales, and the board declared a $0.30 dividend and continued buybacks. Historically, earnings have been strong trading catalysts, so investors may watch future quarters for trends in domestic traffic, margin sustainability, and execution against 2026 guidance.
Key Terms
domestic average unit volume ("AUV") financial
domestic same store sales financial
system-wide sales financial
adjusted EBITDA financial
adjusted net income financial
AI-generated analysis. Not financial advice.
97 Net New Openings in First Quarter,
"Despite the decline in same store sales, we delivered system-wide sales growth and double-digit Adjusted EBITDA growth in the quarter supported by
Q1 2026 Highlights
- System-wide sales of
$1.4 billion 5.9% vs. Q1 2025 - 97 net new openings
- Domestic restaurant AUV of
$2.0 million - Domestic same store sales decreased
8.7% vs. Q1 2025 - Digital sales represented
72.5% of system-wide sales - Total revenue of
$183.7 million 7.4% , vs. Q1 2025 - Net income of
$29.9 million $1.08 - Adjusted net income1 of
$32.5 million $1.18 - Adjusted EBITDA1, increased
9.9% vs. Q1 2025 to$65.4 million
1See "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, 2025 | ||
Number of system-wide restaurants open at end of period | 3,153 | 2,689 | |
Number of domestic franchise restaurants open at end of period | 2,596 | 2,250 | |
Number of international franchise restaurants open at end of period (1) | 500 | 388 | |
System-wide sales (in millions) | $ 1,377 | $ 1,300 | |
Domestic AUV (in thousands) | $ 1,956 | $ 2,135 | |
Domestic 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 | $ 92,265 | |
Adjusted net income (in thousands) | $ 32,469 | $ 28,316 | |
Adjusted EBITDA (in thousands) | $ 65,403 | $ 59,497 | |
(1) Including |
Q1 2026 Financial Results
Total revenue for the first quarter 2026 increased to
Cost of sales was
Selling, general & administrative ("SG&A") expense increased
The prior fiscal first quarter included investment income of
Income tax expense was
Financial Outlook
The 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 $3 million - Stock-based compensation expense of approximately
$28 million
Additionally, the Company reiterates guidance for 2026:
- Global unit growth rate of
15% to16% ; - Interest expense, net of approximately
$43 million - Depreciation and amortization of approximately
$30 million
Restaurant Development
As of March 28, 2026, there were 3,153 Wingstop restaurants system-wide. This included 2,653 restaurants in
Quarterly Dividend
In 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
Share Repurchase
As previously announced, during the fiscal first quarter of 2026, our board of directors authorized the purchase of up to an additional
We repurchased and retired 374,324 shares of our common stock at an average price of
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
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 Webcast
We 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 Wingstop
Founded in 1994 and headquartered in
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 Measures
To 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 Statements
This 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 SUBSIDIARIES Consolidated Balance Sheets (amounts in thousands, except share and per share data) | |||
March 28, | December 27, | ||
Assets | |||
Current assets | |||
Cash and cash equivalents | $ 128,816 | $ 196,572 | |
Restricted cash | 25,994 | 25,994 | |
Accounts receivable, net | 23,525 | 20,823 | |
Prepaid expenses and other current assets | 7,689 | 7,956 | |
Advertising fund assets, restricted | 30,921 | 16,143 | |
Total current assets | 216,945 | 267,488 | |
Property and equipment, net | 138,427 | 130,581 | |
Operating lease assets | 47,909 | 48,637 | |
Goodwill | 83,875 | 83,875 | |
Trademarks | 32,700 | 32,700 | |
Investments | 88,358 | 87,164 | |
Other non-current assets, net | 40,672 | 42,964 | |
Total assets | $ 648,886 | $ 693,409 | |
Liabilities and stockholders' deficit | |||
Current liabilities | |||
Accounts payable | $ 9,362 | $ 12,846 | |
Current portion of operating lease liabilities | 3,401 | 3,232 | |
Other current liabilities | 53,056 | 49,744 | |
Advertising fund liabilities | 30,921 | 16,143 | |
Total current liabilities | 96,740 | 81,965 | |
Long-term debt, net | 1,209,837 | 1,209,094 | |
Operating lease liabilities | 57,177 | 58,080 | |
Deferred revenues, net of current | 50,876 | 47,721 | |
Deferred income tax liabilities, net | 33,279 | 33,142 | |
Other non-current liabilities | 149 | 169 | |
Total liabilities | 1,448,058 | 1,430,171 | |
Commitments and contingencies | |||
Stockholders' deficit | |||
Common stock, | 272 | 275 | |
Additional paid-in-capital | 213 | 1,529 | |
Retained deficit | (804,285) | (744,915) | |
Accumulated other comprehensive income (loss) | 4,628 | 6,349 | |
Total stockholders' deficit | (799,172) | (736,762) | |
Total liabilities and stockholders' deficit | $ 648,886 | $ 693,409 | |
WINGSTOP INC. AND SUBSIDIARIES Consolidated Statements of Operations (amounts in thousands, except per share data) | |||
Thirteen Weeks Ended | |||
March 28, | March 29, | ||
(Unaudited) | (Unaudited) | ||
Revenue: | |||
Royalty revenue, franchise fees and other | $ 87,470 | $ 78,775 | |
Advertising fees | 63,269 | 62,272 | |
Company-owned restaurant sales | 32,986 | 30,047 | |
Total revenue | 183,725 | 171,094 | |
Costs and expenses: | |||
Cost of sales (1) | 24,716 | 22,835 | |
Advertising expenses | 67,311 | 65,795 | |
Selling, general and administrative | 34,449 | 31,440 | |
Depreciation and amortization | 6,841 | 6,228 | |
Loss on disposal of assets | — | 6,535 | |
Total costs and expenses | 133,317 | 132,833 | |
Operating income | 50,408 | 38,261 | |
Interest expense, net | 9,764 | 8,910 | |
Investment (income) expense | 72 | (93,839) | |
Income before income tax expense | 40,572 | 123,190 | |
Income tax expense | 10,689 | 30,925 | |
Net income | $ 29,883 | $ 92,265 | |
Earnings per share | |||
Basic | $ 1.09 | $ 3.25 | |
Diluted | $ 1.08 | $ 3.24 | |
Weighted average shares outstanding | |||
Basic | 27,481 | 28,385 | |
Diluted | 27,593 | 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 SUBSIDIARIES Unaudited Supplemental Information Cost of Sales Margin Analysis (amounts in thousands) | |||||||
Thirteen Weeks Ended | |||||||
March 28, 2026 | March 29, 2025 | ||||||
In dollars | As a % of | In dollars | As a % of | ||||
Cost of sales: | |||||||
Food, beverage and packaging costs | $ 11,794 | 35.8 % | $ 11,241 | 37.4 % | |||
Labor costs | 7,889 | 23.9 % | 7,153 | 23.8 % | |||
Other restaurant operating expenses | 5,869 | 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 SUBSIDIARIES Unaudited Supplemental Information Restaurant Count | |||
Thirteen Weeks Ended | |||
March 28, | March 29, | ||
Domestic Franchised Activity | |||
Beginning of period | 2,529 | 2,154 | |
Openings | 67 | 96 | |
Closures | — | — | |
Restaurants end of period | 2,596 | 2,250 | |
Domestic Company-Owned Activity | |||
Beginning of period | 57 | 50 | |
Openings | — | 1 | |
Closures | — | — | |
Restaurants end of period | 57 | 51 | |
Total Domestic Restaurants | 2,653 | 2,301 | |
International Franchised Activity(1) | |||
Beginning of period | 470 | 359 | |
Openings | 33 | 30 | |
Closures | (3) | (1) | |
Restaurants end of period | 500 | 388 | |
Total System-wide Restaurants | 3,153 | 2,689 | |
(1) | Includes |
WINGSTOP INC. AND SUBSIDIARIES Non-GAAP Financial Measures - EBITDA and Adjusted EBITDA (Unaudited) (amounts in thousands) | |||
Thirteen Weeks Ended | |||
March 28, | March 29, | ||
Net income | $ 29,883 | $ 92,265 | |
Interest expense, net | 9,764 | 8,910 | |
Income tax expense | 10,689 | 30,925 | |
Depreciation and amortization | 6,841 | 6,228 | |
EBITDA | $ 57,177 | $ 138,328 | |
Additional adjustments: | |||
Transaction costs (a) | — | 497 | |
Loss on sale of building (b) | — | 6,534 | |
Gain on sale of investment (c) | — | (92,485) | |
System implementation costs (d) | 546 | 1,311 | |
Amortization of capitalized system implementation costs (e) | 467 | — | |
Restructuring charges (f) | 2,390 | — | |
Stock-based compensation expense (g) | 4,823 | 5,312 | |
Adjusted 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 | ||||
(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 SUBSIDIARIES Non-GAAP Financial Measures - Adjusted Net Income and Adjusted EPS (Unaudited) (amounts in thousands, except per share data) | ||||||
Thirteen Weeks Ended | ||||||
March 28, | March 29, | |||||
Numerator: | ||||||
Net income | $ 29,883 | $ 92,265 | ||||
Adjustments: | ||||||
Transaction costs (a) | — | 497 | ||||
Loss on disposal of building (b) | — | 6,534 | ||||
Gain on sale of investment (c) | — | (92,485) | ||||
System implementation costs (d) | 546 | 1,311 | ||||
Amortization of capitalized system implementation costs (e) | 467 | — | ||||
Restructuring charges (f) | 2,390 | — | ||||
Tax effect of adjustments (g) | (817) | 20,194 | ||||
Adjusted 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 | |||||||||||||||||||||||||||||
(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 | |||||||||||||||||||||||||||||
View original content to download multimedia:https://www.prnewswire.com/news-releases/wingstop-inc-reports-fiscal-first-quarter-financial-results-302756480.html
SOURCE Wingstop Restaurants Inc.