Wingstop Inc Earnings
Wingstop Inc. reported positive earnings for the fiscal third quarter ended September 27, 2025. The company's performance showcases a strong trajectory in revenue growth and significant operational advancements. Wingstop's ability to maintain momentum underscores its strategic expansion and innovative business model. Consistent growth in adjusted measures highlights the company's robust financial health, setting a promising outlook for future quarters.
Wingstop Inc Results
The financial summary for Wingstop Inc. for the fiscal third quarter of 2025 reveals noteworthy growth across key metrics, as outlined below:
| Financial Metric | Q3 2025 | Q3 2024 | % Change |
|---|---|---|---|
| Total Revenue | $175.7M | $162.5M | +8.1% |
| Net Income | $28.5M | Not Provided | +10.7% |
| EPS (Diluted) | $1.02 | Not Provided | +10.7% |
| Adjusted Net Income | $30.4M | Not Provided | +15.6% |
| Adjusted EPS | $1.09 | Not Provided | +15.6% |
| Adjusted EBITDA | $63.7M | Not Provided | +18.6% |
Wingstop demonstrated impressive financial performance with an 8.1% increase in total revenue year-over-year, reaching $175.7 million. The company also recorded a net income rise of 10.7%, bolstered by an extraordinary adjusted EBITDA growth of 18.6% to $63.7 million. This highlights the effective execution of Wingstop's business strategies and its ability to adapt to changing market dynamics.
Revenue Breakdown
Revenue from Wingstop's major segments, along with their performance details, is summarized in the table below:
| Segment | Change from Q3 2024 |
|---|---|
| Royalty Revenue & Franchise Fees | +$6.8M |
| Advertising Fees | +$5.3M |
| Company-Owned Restaurant Sales | +$1.2M |
In-Depth Analysis
Royalty Revenue & Franchise Fees: The increase in this segment was primarily fueled by Wingstop's continued franchise expansion, emphasizing the growth in net new franchise development, which contributed an additional $10.6 million, partly offset by a decline in domestic same-store sales by 5.6%.
Advertising Fees: Growth here was driven by a 10% increase in system-wide sales, supported by a slight increase in the national advertising fund contribution rate.
Company-Owned Restaurant Sales: This segment saw growth due to an increase in same-store sales by 3.8%, attributed to a rise in customer transactions.
Key Developments
Wingstop's significant operational achievement this quarter was recording 114 net new openings, marking a 19.3% net new unit growth. Furthermore, the company achieved its highest-ever quarterly adjusted EBITDA of $63.7 million, reflecting an 18.6% growth. This success underlines the strategic foresight and discipline in execution across Wingstop's operations, affirming confidence in Wingstop's vision to scale towards becoming a globally recognized brand.
Comments from Company Officers
Michael Skipworth, President & Chief Executive Officer of Wingstop, remarked, “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.”
These statements emphasize Wingstop's commitment to sustained growth through strategic investments and partnerships, and a robust business model poised for further expansion.
Dividends and Share Repurchases
Wingstop reaffirmed its commitment to shareholder returns by declaring a quarterly dividend of $0.30 per share, totaling approximately $8.3 million, to be paid on December 12, 2025. This decision reflects Wingstop's strong cash flow and its strategic focus on delivering shareholder value. Additionally, during the fiscal third quarter, the company repurchased and retired 140,103 shares of its common stock at an average price of $285.26, with $151.3 million remaining under the approved share repurchase program.
Wingstop Inc Stock Forecast
Based on the analyzed financial performance and operational updates, the Wingstop Inc stock shows a promising growth trajectory. With a strong market capitalization of roughly $12.5 billion, Wingstop's stock price holds potential for further appreciation. The stock's potential high projection could reach approximately $310, considering its expansion strategies and financial momentum. Conversely, if market conditions fluctuate or projected growth isn't met, the low end might settle around $275. These projections encompass Wingstop's capacity for sustained revenue growth, strategic franchise development, and a proactive dividend policy contributing to its market attractiveness.
Wingstop Inc's performance in the fiscal third quarter strongly positions the company to continue its journey as a leading player in the global restaurant market. With a focus on expansion and innovation, supported by financial robustness, Wingstop is setting the stage for future success.
