Wingstop Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.55%.
Did WING Beat Earnings? Q3 2025 Results
Wingstop delivered a split verdict in fiscal Q3 2025, posting a meaningful earnings beat alongside a revenue miss that laid bare the strain of declining comparable-store traffic. The chicken wing chain earned $1.09 per share, clearing the $0.92 consensus by 18.61%, while revenue of $175.74 million came in 5.17% below expectations despite growing 8.2% year-over-year, a gap explained largely by a 5.6% domestic same-store sales decline that reversed the prior year's 20.9% surge. The profitability bright spot traced back to record Adjusted EBITDA of $63.66 million, up 18.6%, driven by lower bone-in chicken wing costs and improved company-owned restaurant margins, with cost of sales as a percentage of restaurant sales falling from 77.8% to 74.8%. A record 114 net new restaurant openings pushed the system-wide footprint to 2,932 locations, sustaining 19.3% unit growth. The forward picture, however, darkened considerably, with full-year domestic same-store sales guidance revised to a 3% to 4% decline from a previously expected 1% gain, a revision that has already prompted several analysts to lower their price targets on the stock.
- Record 114 net new restaurant openings in the quarter driving 19.3% net new unit growth
- System-wide sales increased 10.0% to $1.4 billion driven by new unit expansion
- Company-owned restaurant cost of sales margin improved to 74.8% from 77.8% due to lower bone-in chicken wing costs and sales leverage
- Digital sales increased to 72.8% of system-wide sales
- SG&A decreased $1.6 million due to lower headcount-related expenses
- Company-owned same-store sales growth of 3.8% driven primarily by increased transactions
- National advertising fund contribution rate increased to 5.5% from 5.3%
“Our third quarter results highlight the strength and resiliency of our business model delivering 18.6% Adjusted EBITDA growth — supported by best-in-class unit economics, strategic investments, disciplined execution, and enthusiasm from our brand partners to open more Wingstops.”
Wingstop CEO, on the earnings call
Forward Guidance & Outlook
Wingstop significantly revised its 2025 guidance, now expecting a 3% to 4% decline in domestic same-store sales (previously approximately 1% growth). Global net new unit openings are expected at 475 to 485. SG&A guidance was lowered to $131–$132 million (from approximately $140 million), including approximately $4.5 million of system implementation costs. Depreciation and amortization is expected at approximately $26 million (previously $28–$29 million). Interest expense, net is expected at approximately $37.5 million (previously $39 million). Stock-based compensation expense guidance of approximately $26 million was reiterated.
WING YoY Financials
WING Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.