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Wingstop's Success in Fiscal Third Quarter 2025

Wingstop Inc., a leader in the chicken restaurant sector, recently revealed its financial outcomes for the third quarter of its fiscal year 2025, ending on September 27. The results showcased significant growth, bolstered by a robust business model and continuous expansion.

Key Highlights of the Quarter

In the fiscal third quarter of 2025, Wingstop witnessed an impressive system-wide sales increase of 10% reaching an impressive $1.4 billion. Along with a record-setting net opening of 114 new restaurants, the company achieved a remarkable 19.3% unit growth compared to the previous year, cementing its position as a prominent player in the restaurant domain.

Throughout this quarter, the average unit volume (AUV) for domestic restaurants stood at approximately $2.1 million, although the same store sales slightly decreased by 5.6%. This decrease is viewed as a temporary setback amidst a larger trend of progressive expansion.

Financial Performance Overview

Wingstop's total revenue climbed 8.1%, amounting to $175.7 million, a noteworthy rise from $162.5 million in the prior year. The company’s net income also reflected positive growth, increasing 10.7% to $28.5 million, translating to $1.02 per diluted share.

A highlight of the quarter was the company's adjusted EBITDA which surged by 18.6% to $63.7 million, setting a new quarterly record. This key performance metric underscores the firm's efficiency and operational success. Notably, digital sales represented a whopping 72.8% of system-wide sales, indicating a successful pivot towards digital engagement amid changing consumer preferences.

Michael Skipworth, President and CEO of Wingstop, emphasized that the quarter's results demonstrated the resilience of the company's business model, stating, “We delivered 18.6% adjusted EBITDA growth supported by best-in-class unit economics, strategic investments, and disciplined execution.” Such statements reflect confidence in Wingstop's strategy and vision for growth.

Future Outlook

Looking ahead, Wingstop has revised its expectations for the 2025 fiscal year, now anticipating a domestic same-store sales decline of approximately 3% to 4%, a shift from the previously forecasted growth. The company expects to open between 475 and 485 new units globally and has adjusted its expectations for selling, general, and administrative (SGA) expenses downward.

Despite the slight adjustment in sales projections, Wingstop remains committed to its growth trajectory and aims to enter the ranks of the top 10 global restaurant brands. The company also announced a quarterly dividend of $0.30 per share, demonstrating its dedication to shareholder value.

Ongoing Commitments and Developments

With a total of 2,932 Wingstop restaurants currently operating, the company is keen on maintaining its momentum. The third quarter of 2025 saw significant operational strides including the expansion of both domestic and international franchises.

As part of its investment in technology and infrastructure, Wingstop continues to enhance its operational systems, ensuring long-term success and robust engagement with customers. The firm’s strategic focus on digital sales has notably increased, paving the way for enhanced customer interaction and sales.

In summary, Wingstop's third quarter financial results reveal a strong, growing company that is not only expanding its footprint but also demonstrating impressive fiscal health. By continuing to adapt and evolve, Wingstop aims to maintain its leadership position in the restaurant sector while delivering value to its stakeholders.