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Wingstop Inc. Financial Report for Q3 FY 2026

On October 28, 2026, Wingstop Inc. (NASDAQ: WING) disclosed its financial performance for the fiscal third quarter that concluded on September 26, 2026. The results presented a complex picture of growth alongside challenges.

CEO's Statement

Michael Skipworth, the company's President and CEO, stated, "We are executing deliberate strategies across our operations to enhance same-store sales growth. Our focus is on improving marketing efforts, strengthening restaurant operations, and leveraging our loyalty program, Club Wingstop, to build deeper relationships with our customers." He acknowledged that the third quarter outcomes did not meet expectations, yet he expressed optimism regarding early indicators stemming from the strategic modifications being implemented.

Q3 FY 2026 Highlights

Wingstop’s system-wide sales reached approximately $1.4 billion, marking a 6.0% increase compared to Q3 FY 2025. Noteworthy metrics include:

• - 76 new locations opened during the quarter, expanding the company’s footprint.
• - Domestic restaurant Average Unit Volume (AUV) stood at $1.85 million.
• - Same-store sales reflected a decline of 5.4% when compared to the same quarter a year prior.
• - Digital sales constituted 73.7% of the total system-wide sales.
• - Total revenue for the quarter escalated to $185.1 million, a 5.3% year-on-year growth.
• - Net income rose by 2.2%, amounting to $29.1 million or $1.07 per diluted share.
• - Adjusted net income encountered a decrease of 3.5%, totaling $29.3 million, with adjusted earnings per diluted share being $1.08.

Detailed Financial Metrics

The third quarter financial results showcased various operational metrics:

• - Number of system-wide restaurants at the close of the quarter was 3,331.
• - Domestic franchise restaurants numbered 2,716, while the international franchise count reached 544.
• - Company-owned same-store sales experienced a decrease of 2.7%, contrasting with a 3.8% growth achieved in the previous year.
• - Adjusted EBITDA was $64.0 million, indicating a slight increase from $63.7 million recorded in the prior corresponding period.

Revenue Breakdown

The financial report highlighted that total revenue were bolstered by:

• - An increase in royalty revenue and franchise fees, contributing $86.3 million.
• - An uptick of $5.1 million was noted despite a sales dip in domestic same-store transactions, primarily caused by diminishing transaction volume due to consumer spending pressures.
• - Advertising fees observed a growth of $2 million, correlating with the 6.0% rise in system-wide sales.
• - Company-owned restaurant sales went up by $2.2 million, facilitated by new corporate establishments since the recent fiscal cycle.

Operational Costs

Notably, the cost of sales surged to $27.2 million, which represents 78.2% of company-owned restaurant sales, considerably higher than the 74.8% from the same quarter in 2025. This escalation can be attributed to the rising costs linked to food, beverage, and packaging, alongside increased rent and labor expenses related to recently acquired restaurants.

Strategic Insights

Anticipating a challenging 2026, the company forecasts a decline of 6.5% to 7% in domestic same-store sales growth and aims to establish 440 to 450 net new units, illustrating a 14.4% to 14.7% growth in units. Furthermore, operational cost targets sit between $138 million - $140 million to accommodate restructuring charges, with projected depreciation and amortization approximating $35 million.

Returning Value to Shareholders

In a continued effort to reward shareholders, the board declared a quarterly dividend of $0.33 per share, with a payout totaling about $9 million scheduled for December 4, 2026, to stockholders recorded as of November 13, 2026. The company authorized an expansive $300 million share repurchase program, indicating robust cash flow generation capability, reinforcing its commitment to returning value to its investors.

Conclusion and Future Outlook

Despite facing challenges within the current fiscal landscape, Wingstop remains committed to enhancing operations, adapting to market demands, and strategically positioning itself for sustained growth. The ongoing adjustments and focus on expanding their restaurant footprint are pivotal steps toward achieving the company’s long-term aspiration of becoming a Top 10 Global Restaurant Brand. As they navigate the competitive foodservice market, stakeholders can look forward to the next quarter's results and the impacts of their strategic initiatives.