Wingstop faces weak sales growth amid rising gas prices
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 04 2026
0mins
Source: Newsfilter
Wingstop Inc. experienced a significant decline in its stock price, hitting a 52-week low amid broader market gains.
The company reported an 8.7% drop in same-store sales, primarily due to soaring gasoline prices, which have risen nearly 40% from last year, impacting consumer spending. This trend reflects a broader slowdown in sales growth across U.S. restaurant chains, as rising gas prices force consumers to cut back on discretionary spending. Analysts have also downgraded profit forecasts for the sector, indicating ongoing challenges ahead.
The implications of these developments suggest that Wingstop may continue to struggle in the near term as consumer behavior shifts in response to rising costs, potentially leading to further declines in sales and investor confidence.
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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: 157.610
Low
268.69
Averages
330.13
High
400.00
Current: 157.610
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 Launches New Loyalty Program Club Wingstop
- Loyalty Program Innovation: Wingstop's newly launched Club Wingstop loyalty program aims to enhance customer experience through digital innovation, emphasizing the 'Members Eat First' philosophy, which is expected to increase customer loyalty and drive sales growth.
- Limited Edition Product Launch: The 'Club in a Box' limited edition product, created in collaboration with celebrity Maura Higgins, includes various unique items priced at just 94 cents, designed to attract loyal fans and enhance brand affinity.
- Unique Member Benefits: Club Wingstop offers innovative features such as points-sharing and group ordering, along with exclusive access to events and new flavors, which are anticipated to boost customer engagement and brand loyalty.
- Cultural Experience Integration: The program will further enhance brand influence through partnerships with cultural events like WWE and NBA, showcasing Wingstop's commitment to loyal customers and advancing its goal of becoming a top 10 global restaurant brand.
See More
Wingstop Launches Summer Value Bundles for Memorial Day
- Summer Value Bundles: Wingstop introduces limited-time bundles with 10 wings for $10, 20 wings for $20, and 30 wings for $30, aimed at enticing customers to enjoy flavorful meals during the Memorial Day weekend, thereby boosting sales.
- Diverse Options: Customers can choose from Classic Wings, Boneless Wings, or Mix & Match, catering to various taste preferences, enhancing brand appeal, and increasing customer retention.
- New Flavor Launch: The introduction of the new Citrus Mojo flavor, a zesty blend of citrus, garlic, and herbs, enriches Wingstop's lineup of 12 classic flavors, enhancing product diversity and market competitiveness.
- Convenient Online Ordering: The offer is exclusively available through the Wingstop app and website, facilitating easy ordering for customers, which is expected to drive online sales growth and align with modern consumer shopping habits.
See More
Wingstop Faces First Same-Store Sales Decline in Over Two Decades
- Sales Decline: Wingstop's same-store sales fell nearly 9% in Q1, marking the end of a 21-year positive growth streak, reflecting persistent traffic weakness that has led to a 25% stock drop since April 29.
- Strong Expansion Plans: Despite sales challenges, Wingstop opened a record 493 new restaurants last year and is guiding for 15% store growth this year, indicating a robust development pipeline of over 2,200 units.
- Franchise Model Resilience: With 98% of its locations operated by independent franchisees, Wingstop is better positioned to navigate current challenges, as it continues to collect royalties and advertising fees from a growing restaurant base despite negative organic growth.
- Smart Kitchen Rollout: The company is rolling out its
See More
Wingstop Launches House of Flavor Experience in North America
- Flavor Experience Debut: Wingstop is introducing its House of Flavor experience to North America for the first time, scheduled for June in Dallas and Toronto, aiming to attract more consumers through culturally-driven events and enhance brand influence.
- Unique Event Features: The events in Toronto and Dallas will not only offer signature wings but also feature live DJs, gameday watch parties, and exclusive performances, expected to draw large crowds and strengthen brand loyalty.
- Cultural and Community Focus: Wingstop's Chief Brand Officer, Donnie Upshaw, stated that House of Flavor aims to unite fans through craveable flavors and culture, further boosting brand recognition and market share among younger consumers.
- Global Expansion Strategy: This event is part of Wingstop's strategy to promote its brand globally, following successful runs in Milan and Paris, with the North American launch laying the groundwork for future growth and aiming to become a top ten global restaurant brand.
See More
U.S. Restaurant Chains Report Weak Sales Growth Amid Rising Gas Prices
- Sales Growth Slowdown: Several U.S. restaurant chains, including Wingstop and Domino's, reported weaker-than-expected sales growth in the latest quarter, primarily due to soaring gasoline prices caused by the U.S.-Israeli war, forcing consumers to cut back on other spending, with expectations that other chains will face similar challenges ahead.
- Significant Oil Price Impact: According to GasBuddy.com, the average gasoline price in the U.S. has reached $4.43, a nearly 40% increase from last year, with prices in California exceeding $6, presenting unprecedented challenges for the restaurant industry, as evidenced by Wingstop's 8.7% decline in same-store sales.
- Diminished Market Confidence: Since the onset of the war, the LSEG U.S. restaurant index has dropped by 5%, erasing over $40 billion in market value, reflecting a decline in investor confidence in the sector, with a notable increase in analysts downgrading profit forecasts for the upcoming quarter.
- Changing Consumer Behavior: As gasoline prices rise, restaurant visitations are gradually declining, with analysis predicting that at $4.20 per gallon, visits could decrease by approximately 1.5%, and if prices exceed $5.10, fast-food traffic may drop by 3%, indicating a long-term impact on the restaurant industry.
See More
Wingstop Q1 2026 Earnings Call Insights
- Same-Store Sales Decline: Wingstop reported an 8.7% decline in same-store sales for Q1 2026, primarily due to temporary closures of over 700 restaurants from adverse weather and rising gas prices from Middle East conflicts, indicating significant near-term demand pressures on the business.
- Revenue Growth: Despite the same-store sales drop, system-wide sales increased by 5.9% to $1.4 billion, while total revenue rose 7.4% year-over-year to $183.7 million, demonstrating the company's resilience in the overall market.
- Capital Return Plan: The Board of Directors declared a quarterly dividend of $0.30 per share and authorized an additional $300 million for share repurchases, reflecting a strong commitment to shareholder returns and proactive capital management.
- Future Outlook: Wingstop updated its full-year same-store sales outlook to a low single-digit decline, while management remains optimistic about returning to growth in the second half of the year, emphasizing operational efficiency improvements through the Smart Kitchen and a new loyalty program.
See More
Wingstop Launches New Loyalty Program Club Wingstop
- Loyalty Program Innovation: Wingstop's newly launched Club Wingstop loyalty program aims to enhance customer experience through digital innovation, emphasizing the 'Members Eat First' philosophy, which is expected to increase customer loyalty and drive sales growth.
- Limited Edition Product Launch: The 'Club in a Box' limited edition product, created in collaboration with celebrity Maura Higgins, includes various unique items priced at just 94 cents, designed to attract loyal fans and enhance brand affinity.
- Unique Member Benefits: Club Wingstop offers innovative features such as points-sharing and group ordering, along with exclusive access to events and new flavors, which are anticipated to boost customer engagement and brand loyalty.
- Cultural Experience Integration: The program will further enhance brand influence through partnerships with cultural events like WWE and NBA, showcasing Wingstop's commitment to loyal customers and advancing its goal of becoming a top 10 global restaurant brand.
See More
Wingstop Launches Summer Value Bundles for Memorial Day
- Summer Value Bundles: Wingstop introduces limited-time bundles with 10 wings for $10, 20 wings for $20, and 30 wings for $30, aimed at enticing customers to enjoy flavorful meals during the Memorial Day weekend, thereby boosting sales.
- Diverse Options: Customers can choose from Classic Wings, Boneless Wings, or Mix & Match, catering to various taste preferences, enhancing brand appeal, and increasing customer retention.
- New Flavor Launch: The introduction of the new Citrus Mojo flavor, a zesty blend of citrus, garlic, and herbs, enriches Wingstop's lineup of 12 classic flavors, enhancing product diversity and market competitiveness.
- Convenient Online Ordering: The offer is exclusively available through the Wingstop app and website, facilitating easy ordering for customers, which is expected to drive online sales growth and align with modern consumer shopping habits.
See More
Wingstop Faces First Same-Store Sales Decline in Over Two Decades
- Sales Decline: Wingstop's same-store sales fell nearly 9% in Q1, marking the end of a 21-year positive growth streak, reflecting persistent traffic weakness that has led to a 25% stock drop since April 29.
- Strong Expansion Plans: Despite sales challenges, Wingstop opened a record 493 new restaurants last year and is guiding for 15% store growth this year, indicating a robust development pipeline of over 2,200 units.
- Franchise Model Resilience: With 98% of its locations operated by independent franchisees, Wingstop is better positioned to navigate current challenges, as it continues to collect royalties and advertising fees from a growing restaurant base despite negative organic growth.
- Smart Kitchen Rollout: The company is rolling out its
See More
Wingstop Launches House of Flavor Experience in North America
- Flavor Experience Debut: Wingstop is introducing its House of Flavor experience to North America for the first time, scheduled for June in Dallas and Toronto, aiming to attract more consumers through culturally-driven events and enhance brand influence.
- Unique Event Features: The events in Toronto and Dallas will not only offer signature wings but also feature live DJs, gameday watch parties, and exclusive performances, expected to draw large crowds and strengthen brand loyalty.
- Cultural and Community Focus: Wingstop's Chief Brand Officer, Donnie Upshaw, stated that House of Flavor aims to unite fans through craveable flavors and culture, further boosting brand recognition and market share among younger consumers.
- Global Expansion Strategy: This event is part of Wingstop's strategy to promote its brand globally, following successful runs in Milan and Paris, with the North American launch laying the groundwork for future growth and aiming to become a top ten global restaurant brand.
See More
U.S. Restaurant Chains Report Weak Sales Growth Amid Rising Gas Prices
- Sales Growth Slowdown: Several U.S. restaurant chains, including Wingstop and Domino's, reported weaker-than-expected sales growth in the latest quarter, primarily due to soaring gasoline prices caused by the U.S.-Israeli war, forcing consumers to cut back on other spending, with expectations that other chains will face similar challenges ahead.
- Significant Oil Price Impact: According to GasBuddy.com, the average gasoline price in the U.S. has reached $4.43, a nearly 40% increase from last year, with prices in California exceeding $6, presenting unprecedented challenges for the restaurant industry, as evidenced by Wingstop's 8.7% decline in same-store sales.
- Diminished Market Confidence: Since the onset of the war, the LSEG U.S. restaurant index has dropped by 5%, erasing over $40 billion in market value, reflecting a decline in investor confidence in the sector, with a notable increase in analysts downgrading profit forecasts for the upcoming quarter.
- Changing Consumer Behavior: As gasoline prices rise, restaurant visitations are gradually declining, with analysis predicting that at $4.20 per gallon, visits could decrease by approximately 1.5%, and if prices exceed $5.10, fast-food traffic may drop by 3%, indicating a long-term impact on the restaurant industry.
See More
Wingstop Q1 2026 Earnings Call Insights
- Same-Store Sales Decline: Wingstop reported an 8.7% decline in same-store sales for Q1 2026, primarily due to temporary closures of over 700 restaurants from adverse weather and rising gas prices from Middle East conflicts, indicating significant near-term demand pressures on the business.
- Revenue Growth: Despite the same-store sales drop, system-wide sales increased by 5.9% to $1.4 billion, while total revenue rose 7.4% year-over-year to $183.7 million, demonstrating the company's resilience in the overall market.
- Capital Return Plan: The Board of Directors declared a quarterly dividend of $0.30 per share and authorized an additional $300 million for share repurchases, reflecting a strong commitment to shareholder returns and proactive capital management.
- Future Outlook: Wingstop updated its full-year same-store sales outlook to a low single-digit decline, while management remains optimistic about returning to growth in the second half of the year, emphasizing operational efficiency improvements through the Smart Kitchen and a new loyalty program.
See More
