Wingstop (WING) Q1 2026 earnings summary

Executive summary

• System-wide sales grew 5.9% to $1.4 billion in Q1 2026, driven by 97 net new restaurant openings (17% unit growth), but domestic same-store sales declined 8.7% due to atypical winter weather and elevated gas prices impacting lower-income consumers.

• Operational improvements from the Wingstop Smart Kitchen and early success of the Club Wingstop loyalty program are driving measurable gains in speed, accuracy, and guest satisfaction.

• Digital sales accounted for 72.5% of system-wide sales.

• Brand partner margins and profitability improved in Q1, reinforcing strong franchisee sentiment and a robust development pipeline.

• Net income dropped 67.6% to $29.9 million ($1.08 per diluted share), primarily due to a prior-year non-recurring gain.

Financial highlights

• Total revenue increased 7.4% year-over-year to $183.7 million.

• Adjusted EBITDA rose 9.9% to $65.4 million; adjusted EPS was $1.18, up 19.2% from Q1 2025.

• Adjusted net income grew 14.7% to $32.5 million.

• Company-owned restaurant cost of sales improved by 110 basis points to 74.9% of sales, mainly from lower food, beverage, and packaging costs, especially bone-in chicken wings.

• Operating income increased 31.7% to $50.4 million year-over-year.

Outlook and guidance

• Full-year 2026 domestic same-store sales now expected to decline low single digits, reflecting Q1 results and ongoing consumer pressure from high fuel prices.

• Global unit growth guidance reiterated at 15%-16% for 2026, with a robust development pipeline of over 2,200 restaurant commitments.

• SG&A forecasted at $146-$149 million, including $3 million in restructuring charges and $28 million in stock-based compensation.

• Expecting a return to positive same-store sales growth in the second half of 2026 as operational and marketing strategies scale.

• Interest expense expected to be approximately $43 million; depreciation and amortization about $30 million.