Wingstop Faces Sales Decline Amid Guidance Revision
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 13 2025
0mins
Should l Buy WING?
Source: Investing
Wingstop Inc. saw its stock drop by 5.52% as it hit a 20-day low, reflecting investor concerns following a significant decline in same-store sales.
The company's recent report indicated a 5.6% decline in Q3 2025 same-store sales, reversing its previous growth trend, which has negatively impacted investor confidence. Additionally, management revised its 2025 growth guidance from low to mid-single-digit growth to a decline of 3% to 4%, citing reduced transaction counts in key markets. Despite these challenges, Wingstop continues to expand, reporting an 18.5% increase in adjusted EBITDA and aiming for 10,000 global restaurants in the future.
This situation highlights the challenges Wingstop faces in maintaining its growth trajectory amid changing consumer behavior and market conditions, which could affect its long-term profitability.
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Analyst Views on WING
Wall Street analysts forecast WING stock price to rise
22 Analyst Rating
19 Buy
3 Hold
0 Sell
Strong Buy
Current: 251.780
Low
268.69
Averages
330.13
High
400.00
Current: 251.780
Low
268.69
Averages
330.13
High
400.00
About WING
Wingstop Inc. is a fast casual chicken wings-focused restaurant chain in the world, with more than 2,550 locations worldwide. The Company is in the business of franchising and operating Wingstop restaurants. The Company is primarily a franchisor, with approximately 98% of its restaurants owned and operated by independent franchisees. The Company offers classic wings, boneless wings, tenders, and chicken sandwiches, always cooked to order, and hand-sauced-and-tossed in 12 bold, distinctive flavors. It also complements its wings, tenders, and chicken sandwiches with fresh-cut, seasoned fries and fresh, hand-cut carrots and celery. It offers various order options, including dine-in / carryout / delivery; individual / combo meals / family packs. Its menu also features signature sides, including fresh-cut, seasoned fries and freshly made ranch and bleu cheese dips. The Company operates approximately a total of 2,513 restaurants in 45 states and 12 countries and United States territories.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Wingstop Shares Surge 12% Amid High Short Interest
- Significant Stock Surge: Wingstop's shares jumped over 12% on Wednesday to $282.92, primarily driven by a high short interest exceeding 17%, indicating strong buying interest in the stock.
- Strong Financial Performance: In Q4 2025, Wingstop reported system-wide sales of $1.3 billion, a 9.3% increase year-over-year, despite a 5.8% decline in same-store sales; digital orders accounted for 73.2% of total sales, showcasing successful digital transformation.
- Continued Expansion Plans: The company opened 124 net new restaurants in the quarter, bringing the total to 3,056, with 2,586 in the U.S.; it expects global unit growth of 15% to 16% in 2026, demonstrating its commitment to expansion.
- Dividend Declaration: On February 17, Wingstop declared a quarterly dividend of $0.30 per share, totaling approximately $8.3 million, to be paid on March 27, 2026, reflecting the company's commitment to shareholder returns.
See More
Wingstop Shares Soar Following Earnings Surprise Despite Decline in Same-Store Sales
- Stock Performance: Wingstop's stock increased on Wednesday despite the company's fourth-quarter revenue falling short of analysts' expectations.
- Earnings and Expansion: The positive earnings report and ongoing global expansion efforts have contributed to investor optimism.
See More
Wingstop Q4 Earnings Beat Expectations, Analyst Maintains Hold Rating
- Earnings Surprise: Wingstop reported total revenues of $175.7 million in Q4 2025, an 8.6% increase year-over-year, although it fell short of street expectations of $177.36 million; however, the diluted earnings per share of $0.96 exceeded the expected $0.83, demonstrating resilience amid challenges.
- Same-Store Sales Upgrade: TD Cowen raised Wingstop's 2026 same-store sales forecast by 0.5%, projecting flat to low-single digit growth, indicating a gradual recovery in confidence after a significant 5.8% decline in 2025.
- Analyst Caution: Despite TD Cowen's optimistic outlook, the analyst cautioned that the guidance might be overly optimistic, highlighting persistent underlying challenges that could impact future performance.
- Strong Market Sentiment: Retail sentiment on Stocktwits for WING shares remained in the 'extremely bullish' territory over the past 24 hours, even as the stock has declined over 8% in the past year, reflecting investor confidence in the company's growth prospects.
See More
Wingstop Inc. Reports Q4 2025 Earnings Highlights
- Sales Growth: Wingstop's Q4 2025 system-wide sales reached $1.3 billion, a 9.3% year-over-year increase driven by the opening of 124 new restaurants, despite a 5.8% decline in same-store sales, demonstrating the company's resilience during expansion.
- Smart Kitchen Deployment: The full installation of the Wingstop Smart Kitchen across all domestic locations marks a transition from rollout to execution, with new operational standards focused on enhancing service speed and accuracy to meet customer demands and elevate brand perception.
- Loyalty Program Launch: The company plans to launch the “Club Wingstop” loyalty program by the end of Q2 2026, with initial pilot results showing nearly 50% enrollment among active guests, which is expected to further increase customer visit frequency and drive sales growth.
- Global Expansion Strategy: Wingstop anticipates global unit development growth of 15% to 16% in 2026, while guiding for flat to low single-digit growth in same-store sales, reflecting the company's confidence in future growth and its keen understanding of market demand.
See More
Consumer Stocks Show Mixed Performance
- Market Volatility: On Wednesday afternoon, consumer stocks exhibited mixed performance, reflecting divergent market views on economic prospects, which could impact investor confidence and consumer spending.
- Sector Divergence: While the overall consumer goods sector fluctuated, certain stocks showed strong performance, indicating shifts in investor trust and market demand, potentially leading to a reallocation of capital.
- Economic Data Impact: The market is closely monitoring upcoming economic data releases, which may further influence consumer stock performance, necessitating investor vigilance regarding relevant indicators.
- Cautious Investor Sentiment: In an uncertain economic environment, investor attitudes towards consumer stocks appear cautious, potentially leading to increased market volatility in the short term and affecting overall investment strategies.
See More
Stock Movements of Various Companies Analyzed
- Wingstop Stock Surge: Shares of Wingstop jumped approximately 13% due to an upbeat outlook, projecting flat to low-single digit same-store sales growth for fiscal 2026, despite a 5.8% year-over-year decline in same-store sales in Q4, which was better than the expected 6.7% drop by analysts.
- Moody's Earnings Beat: Moody's shares rose 6% after reporting adjusted Q4 earnings of $3.64 per share, exceeding the $3.43 expected by analysts, with revenue of $1.89 billion also surpassing the $1.86 billion consensus, and the company guiding for full-year adjusted earnings between $16.40 and $17 per share.
- Madison Square Garden Spin-off Plans: Madison Square Garden Sports saw a 13% increase in shares after announcing plans to consider spinning off its New York Knicks franchise from its New York Rangers business, potentially enhancing the market value and operational efficiency of both entities.
- Global Payments Optimistic Guidance: Global Payments shares surged 15% as the company projected earnings of $13.80 to $14 per share by the end of 2026, exceeding the $13.58 consensus, while also expecting adjusted net revenue growth of around 5%, higher than the 4.7% forecast by analysts.
See More
Wingstop Shares Surge 12% Amid High Short Interest
- Significant Stock Surge: Wingstop's shares jumped over 12% on Wednesday to $282.92, primarily driven by a high short interest exceeding 17%, indicating strong buying interest in the stock.
- Strong Financial Performance: In Q4 2025, Wingstop reported system-wide sales of $1.3 billion, a 9.3% increase year-over-year, despite a 5.8% decline in same-store sales; digital orders accounted for 73.2% of total sales, showcasing successful digital transformation.
- Continued Expansion Plans: The company opened 124 net new restaurants in the quarter, bringing the total to 3,056, with 2,586 in the U.S.; it expects global unit growth of 15% to 16% in 2026, demonstrating its commitment to expansion.
- Dividend Declaration: On February 17, Wingstop declared a quarterly dividend of $0.30 per share, totaling approximately $8.3 million, to be paid on March 27, 2026, reflecting the company's commitment to shareholder returns.
See More
Wingstop Shares Soar Following Earnings Surprise Despite Decline in Same-Store Sales
- Stock Performance: Wingstop's stock increased on Wednesday despite the company's fourth-quarter revenue falling short of analysts' expectations.
- Earnings and Expansion: The positive earnings report and ongoing global expansion efforts have contributed to investor optimism.
See More
Wingstop Q4 Earnings Beat Expectations, Analyst Maintains Hold Rating
- Earnings Surprise: Wingstop reported total revenues of $175.7 million in Q4 2025, an 8.6% increase year-over-year, although it fell short of street expectations of $177.36 million; however, the diluted earnings per share of $0.96 exceeded the expected $0.83, demonstrating resilience amid challenges.
- Same-Store Sales Upgrade: TD Cowen raised Wingstop's 2026 same-store sales forecast by 0.5%, projecting flat to low-single digit growth, indicating a gradual recovery in confidence after a significant 5.8% decline in 2025.
- Analyst Caution: Despite TD Cowen's optimistic outlook, the analyst cautioned that the guidance might be overly optimistic, highlighting persistent underlying challenges that could impact future performance.
- Strong Market Sentiment: Retail sentiment on Stocktwits for WING shares remained in the 'extremely bullish' territory over the past 24 hours, even as the stock has declined over 8% in the past year, reflecting investor confidence in the company's growth prospects.
See More
Wingstop Inc. Reports Q4 2025 Earnings Highlights
- Sales Growth: Wingstop's Q4 2025 system-wide sales reached $1.3 billion, a 9.3% year-over-year increase driven by the opening of 124 new restaurants, despite a 5.8% decline in same-store sales, demonstrating the company's resilience during expansion.
- Smart Kitchen Deployment: The full installation of the Wingstop Smart Kitchen across all domestic locations marks a transition from rollout to execution, with new operational standards focused on enhancing service speed and accuracy to meet customer demands and elevate brand perception.
- Loyalty Program Launch: The company plans to launch the “Club Wingstop” loyalty program by the end of Q2 2026, with initial pilot results showing nearly 50% enrollment among active guests, which is expected to further increase customer visit frequency and drive sales growth.
- Global Expansion Strategy: Wingstop anticipates global unit development growth of 15% to 16% in 2026, while guiding for flat to low single-digit growth in same-store sales, reflecting the company's confidence in future growth and its keen understanding of market demand.
See More
Consumer Stocks Show Mixed Performance
- Market Volatility: On Wednesday afternoon, consumer stocks exhibited mixed performance, reflecting divergent market views on economic prospects, which could impact investor confidence and consumer spending.
- Sector Divergence: While the overall consumer goods sector fluctuated, certain stocks showed strong performance, indicating shifts in investor trust and market demand, potentially leading to a reallocation of capital.
- Economic Data Impact: The market is closely monitoring upcoming economic data releases, which may further influence consumer stock performance, necessitating investor vigilance regarding relevant indicators.
- Cautious Investor Sentiment: In an uncertain economic environment, investor attitudes towards consumer stocks appear cautious, potentially leading to increased market volatility in the short term and affecting overall investment strategies.
See More
Stock Movements of Various Companies Analyzed
- Wingstop Stock Surge: Shares of Wingstop jumped approximately 13% due to an upbeat outlook, projecting flat to low-single digit same-store sales growth for fiscal 2026, despite a 5.8% year-over-year decline in same-store sales in Q4, which was better than the expected 6.7% drop by analysts.
- Moody's Earnings Beat: Moody's shares rose 6% after reporting adjusted Q4 earnings of $3.64 per share, exceeding the $3.43 expected by analysts, with revenue of $1.89 billion also surpassing the $1.86 billion consensus, and the company guiding for full-year adjusted earnings between $16.40 and $17 per share.
- Madison Square Garden Spin-off Plans: Madison Square Garden Sports saw a 13% increase in shares after announcing plans to consider spinning off its New York Knicks franchise from its New York Rangers business, potentially enhancing the market value and operational efficiency of both entities.
- Global Payments Optimistic Guidance: Global Payments shares surged 15% as the company projected earnings of $13.80 to $14 per share by the end of 2026, exceeding the $13.58 consensus, while also expecting adjusted net revenue growth of around 5%, higher than the 4.7% forecast by analysts.
See More
