97 Net New Openings in First Quarter, 17% Unit Growth
DALLAS, 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 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, an increase of 7.4%, vs. Q1 2025
- Net income of $29.9 million, or $1.08 per diluted share
- Adjusted net income1 of $32.5 million and adjusted earnings per diluted share1 of $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 U.S. territories. |
Q1 2026 Financial Results
Total 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 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, 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; and
- 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 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 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 $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 Repurchase
As 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 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 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
Kyra Harbert
[email protected]
Investor Contact
Sarah Niehaus
[email protected]
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, $0.01 par value; 100,000,000 shares authorized; | 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 U.S. territories. |
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 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 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 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. | |||||||||||||||||||||||||||||
SOURCE Wingstop Restaurants Inc.
