Wingstop (WING) Q1 2025 Earnings
How Did WING Stock React to Q1 2025 Earnings?
S&P 500 over the same 30 days: +6.88%.
Did WING Beat Earnings? Q1 2025 Results
Yes. Wingstop reported Q1 2025 earnings of $0.99 a share on Apr 30, 2025, beating the $0.87 consensus estimate by 14.4%. Revenue was $171.1M against a $170.9M estimate.
Wingstop served up a stronger-than-expected first quarter, posting adjusted earnings of $0.99 per diluted share against a consensus estimate of $0.87, a 14.37% beat, while revenue of $171.09 million edged past expectations by 0.09% and grew 17.4% year-over-year. The headline results were shaped by a significant one-time event: the sale of Wingstop's non-controlling interest in its UK master franchisee generated a $97.20 million gain, propelling GAAP net income to a 221% surge, though the more telling story lies beneath that figure. Operationally, domestic same-store sales growth decelerated sharply to just 0.5%, down from 21.6% a year ago, a reflection of tougher comparisons and a choppy consumer backdrop. Unit growth, however, remained a genuine bright spot, with 126 net new openings nearly doubling the prior-year pace and pushing the global footprint to 2,689 locations. Looking ahead, management trimmed its domestic same-store sales outlook to approximately 1% for 2025, while raising global unit growth guidance to 16%-17%, signaling confidence in expansion even as near-term consumer spending remains difficult to predict.
- Record 126 net new restaurant openings in Q1 2025, nearly doubling the prior year quarter
- System-wide sales increased 15.7% to $1.3 billion driven by net new franchise development
- Digital sales increased to 72.0% of system-wide sales
- Domestic AUV increased to $2.1 million
- $97.2 million gain on sale of non-controlling interest in Lemon Pepper Holdings (UK master franchisee)
- Advertising fee contribution rate increased to 5.5% effective Q1 2025
- Company-owned same-store sales growth of 1.4% driven primarily by transaction increases
“Despite the challenging and unpredictable macro-environment, our first quarter results demonstrate the staying power of our strategies and resiliency in our model.”
Wingstop CEO, on the earnings call
What Was Wingstop's Outlook in Q1 2025?
Wingstop updated its 2025 guidance: approximately 1% domestic same-store sales growth (lowered from prior low- to mid-single digits); global unit growth rate of 16% to 17% (raised from 14%-15%); SG&A of approximately $140 million including ~$4.5 million in system implementation costs; stock-based compensation expense of approximately $26 million; interest expense, net of approximately $40 million (improved from ~$46 million); and depreciation and amortization of $28-$29 million (lowered from $29-$30 million). The company noted its outlook is dependent on the macro-environment which is inherently difficult to predict given current high levels of uncertainty.
WING YoY Financials
| Metric | Q1 2025 | Q1 2024 | Year over year |
|---|---|---|---|
| Revenue | $171.1M | $145.8M | +17.4% |
| Operating Income | $38.3M | $42.7M | −10.5% |
| Net Income | $92.3M | $28.7M | +221.0% |
WING Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.