Wingstop (WING) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered record 126 net new openings, 18% net new unit growth, and system-wide sales up 15.7% to $1.3 billion, with digital sales reaching 72% and domestic same-store sales up 0.5%.

• Adjusted EBITDA rose 18.4% to $59.5 million, while net income surged 221% to $92.3 million ($3.24 per diluted share), driven by a significant investment gain.

• Brand health, guest acquisition, and menu innovation reached record highs, supported by digital transformation.

• International expansion accelerated, with new markets in Kuwait and Australia and international locations rising to 388.

• Company operates 2,689 system-wide restaurants at quarter end, with 2,638 franchised and 51 company-owned.

Financial highlights

• Total revenue increased 17.4% to $171.1 million year-over-year, with royalty and franchise fees up 17.4% and advertising fees up 24.2%.

• Adjusted net income was $28.3 million ($0.99 per diluted share), nearly flat year-over-year.

• Operating income declined 10.5% to $38.3 million due to higher costs and a one-time asset disposal loss.

• Cost of sales as a percentage of company-owned restaurant sales increased to 76.0% from 74.5% due to higher chicken wing costs.

• SG&A increased to $31.4 million, including $1.8 million in non-recurring system implementation expenses.

Outlook and guidance

• FY2025 domestic same-store sales growth outlook revised to approximately 1%, reflecting tough prior-year comparisons.

• Net new global unit growth rate increased to 16–17%, implying 410–435 new units.

• Adjusted EBITDA growth rate projected at 15% for 2025.

• Net interest expense expected at $40 million, down from $46 million.

• SG&A guidance at $140 million, including $4.5 million in non-recurring costs.