Wingstop Inc. Reports Strong Third Quarter Performance
Impressive Growth with 114 New Openings, Representing a 19.3% Increase in Units
Adjusted EBITDA Surges 18.6%, Reaching $63.7 Million
Wingstop Inc. (NASDAQ: WING) recently announced robust financial results for its fiscal third quarter, which ended on September 27, 2025. This quarter marks a period of significant growth for the company, as highlighted by notable expansions and earnings metrics.
Key Highlights of the Fiscal Third Quarter 2025:
- System-wide sales jumped 10.0%, totaling $1.4 billion.
- A total of 114 net new restaurant openings.
- Domestic average unit volume (AUV) stands at $2.1 million.
- Digital sales represented 72.8% of total system-wide sales.
- Revenue increased by 8.1%, reaching $175.7 million.
- Net income rose to $28.5 million, translating to $1.02 per diluted share.
- Adjusted net income reached $30.4 million, or $1.09 per diluted share, an increase of 15.6% from the prior year.
- Adjusted EBITDA climbed to $63.7 million, a remarkable 18.6% growth.
Michael Skipworth, President & Chief Executive Officer, emphasized the resilience of Wingstop's business model. He stated, "The 18.6% Adjusted EBITDA growth reflects our commitment to best-in-class unit economics and strategic investments. The enthusiasm from our brand partners to expand Wingstop is palpable. We consistently opened 114 new restaurants this quarter, resulting in a 19% increase in units compared to last year, reinforcing our vision to elevate Wingstop into one of the top 10 global restaurant brands."
Comparative Analysis of Key Operating Metrics
The operating metrics for the recent quarter have shown encouraging trends:
Comparative Metrics for Fiscal Third Quarter 2025 and 2024:
- System-wide restaurant count reached 2,932.
- Domestic franchise restaurants increased to 2,450, with a total of 427 international franchise locations.
- Total revenue for this quarter is a noticeable uptick from the $162.5 million recorded in the same quarter last year.
- The cost of sales decreased from 77.8% to 74.8% of company restaurant sales, driven by improved operating efficiencies.
- The company recorded decreased SG&A expenses—a significant decrease of $1.6 million from the previous year.
Financial Outlook and Guidance for 2025
The company has updated its financial guidance for 2025:
- Domestic same-store sales growth is expected to decline between 3% and 4%.
- Projected net new restaurant openings range from 475 to 485.
- Expected SG&A expenses between $131 and $132 million.
- Depreciation and amortization forecast at approximately $26 million.
- Interest expense anticipated to be around $37.5 million.
Commitment to Growth and Shareholder Value
On November 3, 2025, Wingstop's Board of Directors declared a quarterly dividend of $0.30 per share, reflecting the company's strong cash flow and dedication to returning value to shareholders. The total dividend payout amounts to approximately $8.3 million, to be distributed on December 12, 2025.
During the third quarter, the company successfully repurchased and retired 140,103 shares at an average price of $285.26, with a remaining budget of $151.3 million under its share repurchase program.
About Wingstop Inc.
Founded in 1994, Wingstop Inc. operates more than 2,900 restaurants globally. Known for its unique offering of cooked-to-order wings, tenders, and sandwiches, it has carved a niche in the fast-casual dining sector with a focus on flavor. The company has achieved approximately $5 billion in system-wide sales in the previous fiscal year and has a vision to rank among the top 10 global restaurant brands.
Frequently Asked Questions
What were Wingstop's recent sales figures for the third quarter?
Wingstop reported system-wide sales of $1.4 billion for the third quarter, a 10% increase compared to the previous year.
How many new restaurants did Wingstop open in the third quarter?
The company opened 114 new restaurants in the fiscal third quarter, contributing to a 19% growth in total restaurant units.
What is the adjusted EBITDA for Wingstop's third quarter?
Wingstop achieved an adjusted EBITDA of $63.7 million, reflecting an 18.6% increase from the prior year.
What are Wingstop's future guidance predictions for 2025?
Wingstop forecasts a decline in domestic same-store sales by 3% to 4% and expects to open between 475 and 485 new units globally.
What is Wingstop's commitment to dividends?
Wingstop declared a quarterly dividend of $0.30 per share, totaling approximately $8.3 million to be paid in December 2025.
