Wingstop Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.88%.
Did WING Beat Earnings? Q1 2025 Results
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
Forward Guidance & Outlook
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
WING Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.