Wingstop (WING) Q2 2025 earnings summary

Executive summary

• System-wide sales grew 13.9% to $1.34 billion, with 129 net new restaurants opened, marking 19.8% net new unit growth year-over-year, while domestic same-store sales declined 1.9%.

• Adjusted EBITDA increased 14.3% to $59.2 million, and adjusted EPS rose to $1.00 per diluted share, while net income decreased 2.6% to $26.8 million.

• The Wingstop Smart Kitchen rollout reached 1,000 U.S. restaurants, delivering faster service, higher guest satisfaction, and sales outperformance in early markets.

• Digital transformation and menu innovation, including the relaunch of crispy chicken tenders, drove strong new and reactivated guest engagement, with digital sales reaching 72.2% of system-wide sales.

• International expansion accelerated, with new markets like Australia and Paris surpassing domestic AUVs and a record pipeline of sold commitments.

Financial highlights

• Total revenue increased 12% to $174.3 million year-over-year, with royalty and franchise fees up $8.7 million, and advertising fees up $7.3 million.

• Company-owned restaurant sales rose $2.6 million, driven by 3.6% same-store sales growth and two net new units.

• Cost of sales for company-owned restaurants declined to 75.2% of sales, aided by labor and operating leverage.

• SG&A expense increased $4.8 million to $32.9 million, mainly due to higher headcount and system implementation costs.

• Food, beverage, and packaging costs rose to 36.8% of company-owned sales in Q2 2025.

Outlook and guidance

• 2025 global unit growth guidance raised to 17%-18%, implying 435-460 net new units, up from 16%-17%.

• Domestic same-store sales growth guidance reiterated at approximately 1% for 2025, with comps expected to turn positive as prior-year comparisons ease in Q3 and Q4.

• SG&A guidance remains at ~$140 million, including $4.5 million in non-recurring system implementation costs and $26 million in stock-based compensation.

• Adjusted EBITDA growth for 2025 expected to exceed 15% over 2024.

• Interest expense, net, expected to be approximately $39 million for 2025.