Wingstop Inc. — Fiscal Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue increased 5.3% year-over-year to $185.1 million from $175.7 million in Q3 2025.
• Net income increased 2.2% to $29.1 million ($1.07 per diluted share) from $28.5 million ($1.02 per diluted share) in Q3 2025.
• Adjusted net income decreased 3.5% to $29.3 million ($1.08 per diluted share) from $30.4 million ($1.09 per diluted share) in Q3 2025.
• Adjusted EBITDA increased 0.5% to $64.0 million from $63.7 million in Q3 2025.
• Royalty revenue, franchise fees, and other increased $5.1 million to $86.3 million, driven by $8.6 million in net new franchise development, partially offset by a $3.6 million decline due to lower domestic same-store sales.
• Advertising fees increased $2.0 million to $64.1 million due to a 6.0% increase in system-wide sales.
• Company-owned restaurant sales increased $2.2 million to $34.8 million, primarily due to 16 new corporate stores opened or acquired.
• Cost of sales increased to $27.2 million from $24.3 million; as a percentage of company-owned sales, it rose to 78.2% from 74.8%, driven by higher food, beverage, packaging, rent, repair, maintenance, and labor costs.
• SG&A expense decreased $0.2 million to $30.5 million from $30.7 million, driven by $2.0 million in reduced stock compensation due to forfeitures, partially offset by $1.5 million in headcount-related expenses.
• Depreciation and amortization increased $2.8 million to $9.0 million from $6.2 million due to technology investments placed in service.
• Effective tax rate was 27.3% compared to 28.1% in the prior-year period.

Guidance and Future Outlook:

• Updated 2026 guidance projects a decline of approximately 6.5% to 7.0% in domestic same-store sales growth.
• Global net new unit growth is projected between 440 and 450 units (14.4% to 14.7% unit growth).
• SG&A expense guidance is set between $138 million and $140 million, including $3 million in restructuring charges for corporate realignment.
• Stock-based compensation expense is projected at approximately $21 million.
• Depreciation and amortization is projected at approximately $35 million.
• Interest expense, net, is projected at approximately $41 million.

Business Segments and Product Lines:

• System-wide sales reached $1.4 billion, a 6.0% increase from Q3 2025.
• Domestic same-store sales decreased 5.4% compared to a 5.6% decrease in Q3 2025.
• Domestic company-owned same-store sales decreased 2.7% compared to a 3.8% increase in Q3 2025.
• Digital sales represented 73.7% of system-wide sales.
• Domestic restaurant Average Unit Volume (AUV) was $1.85 million, down from $2.06 million in Q3 2025.
• 76 net new system-wide restaurant openings occurred during the quarter.
• 13 company-owned restaurants were acquired during the quarter.

Market and Competitive Landscape:

• Total system-wide restaurants reached 3,331 as of September 26, 2026, up from 2,932 in Q3 2025.
• Domestic franchise restaurants totaled 2,716, while international franchise restaurants totaled 544.
• Management cited continued pressure on consumer spending as a factor impacting transaction volumes.
• The company aims to return to sustained sales growth and targets becoming a Top 10 Global Restaurant Brand.

Risks and Challenges:

• Domestic same-store sales performance is currently under pressure due to lower transaction volumes and consumer spending constraints.
• Cost of sales margins are under pressure from rising food, beverage, packaging, rent, repair, maintenance, and labor costs.
• Fixed labor costs and operating expenses are impacted by lower sales volumes.
• Forward-looking statements regarding sales growth, unit growth, and expenses are subject to uncertainties and risks detailed in the company's SEC filings.

Management Commentary and Tone:

• CEO Michael Skipworth stated the company is not satisfied with third-quarter results and acknowledged that sales improvement is taking time.
• Management emphasized deliberate actions to sharpen marketing execution, strengthen operations, and leverage Club Wingstop to deepen guest relationships.
• Despite current results, management expressed confidence in the business model, citing compelling restaurant-level economics, a robust development pipeline, and global whitespace.
• Early indicators from recent changes are viewed as encouraging by management.

Other Key Points:

• The Board of Directors declared a quarterly dividend of $0.33 per share on October 27, 2026, totaling approximately $9.0 million, payable on December 4, 2026.
• The company repurchased and retired 190,688 shares at an average price of $131.12 per share during Q3 2026.
• $288.4 million remained available under the share repurchase program as of September 26, 2026.
• Since the program's inception in August 2023, the company has repurchased and retired 3,150,161 shares at an average price of $241.75 per share.
• The company acquired 13 restaurants during the quarter, contributing to the increase in company-owned restaurant count.