Original source text
102 Net New Openings in Second Quarter, 16% Unit Growth
, /PRNewswire/ -- Wingstop Inc. (NASDAQ: WING) today announced financial results for the fiscal second quarter ended June 27, 2026.
"During the second quarter, we continued making meaningful progress against the strategic priorities that we believe will drive the next phase of growth for Wingstop," said Michael Skipworth, President and Chief Executive Officer. "The national launch of Club Wingstop marked an important milestone in building deeper relationships with our guests, while our continued investments in value, flavor innovation and Smart Kitchen are strengthening the business in ways that position us to win more occasions. Combined with one of the strongest development pipelines in the industry, these investments reinforce our confidence in the long-term opportunity to become a Top 10 Global Restaurant Brand."
Q2 2026 Highlights
System-wide sales of $1.4 billion increased 5.3% vs. Q2 2025 102 net new openings Domestic restaurant AUV of $1.9 million Domestic same store sales decreased 7.5% vs. Q2 2025 Digital sales represented 71.6% of system-wide sales Total revenue of $185.6 million, an increase of 6.4%, vs. Q2 2025 Net income, increased 16.9% to $31.3 million, or $1.15 per diluted share Adjusted net income1 and adjusted earnings per diluted share1, both non-GAAP measures, increased 14.9% to $32.1 million, or $1.18 per diluted share; and Adjusted EBITDA1, increased 12.5% vs. Q2 2025 to $66.6 million 1
See "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
June 27, 2026
June 28, 2025
Number of system-wide restaurants open at end of period
3,255
2,818
Number of domestic franchise restaurants open at end of period
2,671
2,357
Number of international franchise restaurants open at end of period (1)
527
407
System-wide sales (in millions)
$ 1,411
$ 1,340
Domestic AUV (in thousands)
$ 1,893
$ 2,112
Domestic same store sales growth
(7.5) %
(1.9) %
Company-owned domestic same store sales growth
(2.5) %
3.6 %
Net income (in thousands)
$ 31,288
$ 26,763
Adjusted net income (in thousands)
$ 32,092
$ 27,929
Adjusted EBITDA (in thousands)
$ 66,627
$ 59,205
(1)
Including U.S. territories.
Q2 2026 Financial Results
Total revenue for the second quarter 2026 increased to $185.6 million from $174.3 million in the prior second quarter. Royalty revenue, franchise fees and other increased $7.0 million, of which $11.2 million was due to net new franchise development and $0.8 million related to an increase in vendor rebates, partially offset by a decrease of $5.0 million due to a 7.5% decline in domestic same store sales contributed by lower transaction volumes, reflecting continued pressure on consumer spending. Advertising fees increased $2.6 million due to a 5.3% increase in system-wide sales in the second quarter 2026. Company-owned restaurant sales increased $1.7 million due to the three additional corporate stores opened or acquired since the prior year period.
Cost of sales was $25.1 million compared to $24.4 million in the prior second quarter. As a percentage of company-owned restaurant sales, cost of sales decreased to 73.3% from 75.2% in the prior second 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 second quarter.
Selling, general & administrative ("SG&A") expense decreased $2.7 million to $30.2 million from $32.9 million in the prior second quarter. The decrease in SG&A expense was primarily driven by $2.3 million in reduced stock compensation expense due to forfeitures recognized in the current period. Also contributing to the decrease was a $1.6 million reduction in payroll costs which was partially offset by a $1.5 million increase in professional fees.
Income tax expense was $13.4 million, yielding an effective tax rate of 29.9%, comparable to 27.2% in the prior-year period. The increase in total tax expense is primarily due an increase in state income taxes and other non-deductible items.
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:
A decline of 4% to 6% in domestic same store sales growth; SG&A of between $140 - $143 million, which includes $3 million of restructuring charges related to corporate realignment; Stock-based compensation expense of approximately $24 million; and Depreciation and amortization of approximately $33 million. Additionally, the Company reiterates guidance for 2026:
Global unit growth rate of 15% to 16%; and Interest expense, net of approximately $43 million. Restaurant Development
As of June 27, 2026, there were 3,255 Wingstop restaurants system-wide. This included 2,728 restaurants in the United States, of which 2,671 were franchised restaurants and 57 were company-owned, and 527 franchised restaurants were in international markets, including U.S. territories. During the second quarter 2026, there were 102 net system-wide Wingstop restaurant openings.
Quarterly Dividend
In recognition of our strong cash flow generation and our commitment to returning value to stockholders, on July 28, 2026, our board of directors authorized and declared a quarterly dividend of $0.33 per share of common stock, resulting in a total dividend of approximately $9.0 million. This dividend will be paid on September 5, 2026 to stockholders of record as of August 15, 2026.
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.
EBITDA and 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 key operating metrics or non-GAAP measurements in the same manner.
Conference Call and Webcast
We will host a conference call today to discuss the second 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 4572027. The replay will be available through Wednesday, August 5, 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 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 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
Brett LeVecchio
[email protected]
Investor Contact
Sarah Niehaus
[email protected]
WINGSTOP INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(amounts in thousands, except share and per share data)
June 27,
2026
December 27,
2025
(Unaudited)
Assets
Current assets
Cash and cash equivalents
$ 127,455
$ 196,572
Restricted cash
25,994
25,994
Accounts receivable, net
25,108
20,823
Prepaid expenses and other current assets
10,130
7,956
Advertising fund assets, restricted
19,630
16,143
Total current assets
208,317
267,488
Property and equipment, net
153,075
130,581
Operating lease assets
49,380
48,637
Goodwill
83,875
83,875
Trademarks
32,700
32,700
Investments
90,693
87,164
Other non-current assets, net
39,951
42,964
Total assets
$ 657,991
$ 693,409
Liabilities and stockholders' deficit
Current liabilities
Accounts payable
$ 10,267
$ 12,846
Current portion of operating lease liabilities
3,713
3,232
Other current liabilities
36,596
49,744
Advertising fund liabilities
19,630
16,143
Total current liabilities
70,206
81,965
Long-term debt, net
1,210,589
1,209,094
Operating lease liabilities
58,173
58,080
Deferred revenues, net of current
51,471
47,721
Deferred income tax liabilities, net
40,345
33,142
Other non-current liabilities
194
169
Total liabilities
1,430,978
1,430,171
Commitments and contingencies
Stockholders' deficit
Common stock, $0.01 par value; 100,000,000 shares authorized;
27,240,351 and 27,540,619 shares issued and outstanding as of June 27,
2026 and December 27, 2025, respectively
272
275
Additional paid-in-capital
2,409
1,529
Retained deficit
(779,246)
(744,915)
Accumulated other comprehensive income (loss)
3,578
6,349
Total stockholders' deficit
(772,987)
(736,762)
Total liabilities and stockholders' deficit
$ 657,991
$ 693,409
WINGSTOP INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(amounts in thousands, except per share data)
Thirteen Weeks Ended
June 27,
2026
June 28,
2025
(Unaudited)
(Unaudited)
Revenue:
Royalty revenue, franchise fees and other
$ 86,844
$ 79,889
Advertising fees
64,536
61,962
Company-owned restaurant sales
34,184
32,478
Total revenue
185,564
174,329
Costs and expenses:
Cost of sales (1)
25,068
24,405
Advertising expenses
68,417
65,533
Selling, general and administrative
30,236
32,937
Depreciation and amortization
7,212
6,220
Total costs and expenses
130,933
129,095
Operating income
54,631
45,234
Interest expense, net
9,813
8,469
Investment (income) expense
167
—
Income before income tax expense
44,651
36,765
Income tax expense
13,363
10,002
Net income
$ 31,288
$ 26,763
Earnings per share
Basic
$ 1.15
$ 0.96
Diluted
$ 1.15
$ 0.96
Weighted average shares outstanding
Basic
27,235
27,912
Diluted
27,252
27,997
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
June 27, 2026
June 28, 2025
In dollars
As a % of
company-owned
restaurant sales
In dollars
As a % of
company-owned
restaurant sales
Cost of sales:
Food, beverage and packaging costs
$ 12,040
35.2 %
$ 11,937
36.8 %
Labor costs
7,763
22.7 %
7,441
22.9 %
Other restaurant operating expenses
6,180
18.1 %
5,821
17.9 %
Vendor rebates
(915)
(2.7) %
(794)
(2.4) %
Total cost of sales
$ 25,068
73.3 %
$ 24,405
75.2 %
WINGSTOP INC. AND SUBSIDIARIES
Unaudited Supplemental Information
Restaurant Count
Thirteen Weeks Ended
June 27,
2026
June 28,
2025
Domestic Franchised Activity
Beginning of period
2,596
2,250
Openings
76
110
Closures
(1)
—
Acquired by Company
—
(3)
Restaurants end of period
2,671
2,357
Domestic Company-Owned Activity
Beginning of period
57
51
Openings
—
1
Closures
—
(1)
Acquired by Company
—
3
Restaurants end of period
57
54
Total Domestic Restaurants
2,728
2,411
International Franchised Activity(1)
Beginning of period
500
388
Openings
30
21
Closures
(3)
(2)
Restaurants end of period
527
407
Total System-wide Restaurants
3,255
2,818
(1)
Includes U.S. territories.
WINGSTOP INC. AND SUBSIDIARIES
Non-GAAP Financial Measures - EBITDA and Adjusted EBITDA
(Unaudited)
(amounts in thousands)
Thirteen Weeks Ended
June 27,
2026
June 28,
2025
Net income
$ 31,288
$ 26,763
Interest expense, net
9,813
8,469
Income tax expense
13,363
10,002
Depreciation and amortization
7,212
6,220
EBITDA
$ 61,676
$ 51,454
Additional adjustments:
System implementation costs (a)
514
1,534
Amortization of capitalized system implementation costs (b)
467
—
Restructuring charges (c)
77
—
Stock-based compensation expense (d)
3,893
6,217
Adjusted EBITDA
$ 66,627
$ 59,205
(a)
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. Costs related to these initiatives are not expected to recur beyond the current period.
(b)
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.
(c)
Represents certain restructuring charges related to corporate realignment announced on January 13, 2026.
(d)
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
June 27,
2026
June 28,
2025
Numerator:
Net income
$ 31,288
$ 26,763
Adjustments:
System implementation costs (a)
514
1,534
Amortization of capitalized system implementation costs (b)
467
—
Restructuring charges (c)
77
—
Tax effect of adjustments (d)
(254)
(368)
Adjusted net income
$ 32,092
$ 27,929
Denominator:
Weighted-average shares outstanding - diluted
27,252
27,997
Adjusted earnings per diluted share
$ 1.18
$ 1.00
(a)
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. Costs related to these initiatives are not expected to recur beyond the current period.
(b)
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.
(c)
Represents certain restructuring charges related to corporate realignment announced on January 13, 2026.
(d)
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 June 27, 2026, which includes provisions for U.S. federal income taxes, and assumes the respective statutory rates for applicable state and local jurisdictions.
SOURCE Wingstop Restaurants Inc.
