DALLAS, Oct. 28, 2026 /PRNewswire/ — Wingstop Inc. (NASDAQ: WING) today announced financial results for the fiscal third quarter ended September 26, 2026.

“We are taking deliberate action across our business to drive same store sales growth, with a focus on sharpening our marketing execution, strengthening restaurant operations, and leveraging Club Wingstop to deepen guest relationships,” said Michael Skipworth, President and Chief Executive Officer. “While we are not satisfied with our third quarter results and the improvement in sales performance is taking time, we are encouraged by the early indicators from the changes we’ve made and remain focused on returning to sustained sales growth. With compelling restaurant-level economics, a robust development pipeline, and significant global whitespace, we remain confident in the strength of the Wingstop model and our long-term opportunity to become a Top 10 Global Restaurant Brand.”

Q3 2026 Highlights

• System-wide sales of $1.4 billion increased 6.0% vs. Q3 2025
• 76 net new openings
• Domestic restaurant AUV of $1.85 million
• Domestic same store sales decreased 5.4% vs. Q3 2025
• Digital sales represented 73.7% of system-wide sales
• Total revenue of $185.1 million, an increase of 5.3%, vs. Q3 2025
• Net income, increased 2.2% to $29.1 million, or $1.07 per diluted share
• Adjusted net income¹ and adjusted earnings per diluted share¹, both non-GAAP measures, decreased  3.5% to $29.3 million, or $1.08 per diluted share; and
• Adjusted EBITDA¹, increased 0.5% vs. Q3 2025 to $64.0 million

Key Operating Metrics

Q3 2026 Financial Results

Total revenue for the third quarter 2026 increased to $185.1 million from $175.7 million in the prior third quarter. Royalty revenue, franchise fees and other increased $5.1 million, of which $8.6 million was primarily due to net new franchise development, partially offset by a decrease of $3.6 million due to a 5.4% decline in domestic same store sales contributed by lower transaction volumes, reflecting continued pressure on consumer spending. Advertising fees increased $2.0 million due to a 6.0% increase in system-wide sales in the third quarter 2026. Company-owned restaurant sales increased $2.2 million primarily due to the sixteen corporate stores opened or acquired since the prior year period, including the thirteen stores acquired during the thirteen weeks ended September 26, 2026, as previously disclosed.

Cost of sales was $27.2 million compared to $24.3 million in the prior third quarter. As a percentage of company-owned restaurant sales, cost of sales increased to 78.2% from 74.8% in the prior third quarter. The increase was primarily driven by higher food, beverage and packaging costs, related to fries and packaging costs; increased rent, repair and maintenance expenses; and higher labor costs associated with acquired restaurants. The increase also reflected the impact of lower sales on fixed labor costs and operating expenses.

Selling, general & administrative (“SG&A”) expense decreased $0.2 million to $30.5 million from $30.7 million in the prior third quarter. The decrease in SG&A expense was primarily driven by $2.0 million in reduced stock compensation expense due to forfeitures recognized in the current period which was partially offset by a $1.5 million increase in headcount related expenses.

Depreciation and amortization increased $2.8 million to $9.0 million from $6.2 million in the comparable period in 2025. The increase in depreciation and amortization was primarily due to capital expenditures placed in service subsequent to the comparable period in 2025 related to our technology investments.

Income tax expense was $10.9 million, yielding an effective tax rate of 27.3%, comparable to 28.1% in the prior-year period. The decrease in total tax expense is primarily due to a decrease in state income taxes and other non-deductible items.

Financial Outlook

The Company is providing updated guidance for 2026:

• A decline of approximately 6.5% to 7% in domestic same store sales growth;
• Global net new units of 440 to 450, or 14.4% to 14.7% unit growth;
• SG&A of between $138 – $140 million, which includes $3 million of restructuring charges related to corporate realignment;
• Stock-based compensation expense of approximately $21 million;
• Depreciation and amortization of approximately $35 million; and
• Interest expense, net of approximately $41 million.

Restaurant Development

As of September 26, 2026, there were 3,331 Wingstop restaurants system-wide. This included 2,787 restaurants in the United States, of which 2,716 were franchised restaurants and 71 were company-owned, and 544 franchised restaurants were in international markets, including U.S. territories. During the third quarter 2026, there were 76 net system-wide Wingstop restaurant openings.

Quarterly Dividend

In recognition of our strong cash flow generation and our commitment to returning value to stockholders, on October 27, 2026, our board of directors authorized and declared a quarterly dividend of $0.33 per share of common stock, resulting in a total dividend of approximately $9.0 million. This dividend will be paid on December 4, 2026 to stockholders of record as of November 13, 2026.

Share Repurchase

As previously announced, during the fiscal first quarter of 2026, our board of directors authorized the purchase of up to an additional $300.0 million of our outstanding shares of common stock under our existing share repurchase program.

We repurchased and retired 190,688 shares of our common stock at an average price of $131.12 per share during the third quarter of 2026. As of September 26, 2026, $288.4 million remained available under the share repurchase program previously approved by our board of directors.

Since the inception of our share repurchase program in August 2023, we have repurchased and retired 3,150,161 shares of our common stock at an average price of $241.75 per share.

The following definitions apply to these terms as used in this release:

Domestic average unit volume (“AUV”) consists of the average annual sales of all restaurants that have been open for a trailing 52-week period or longer. This measure is calculated by dividing sales during the applicable period for all restaurants being measured by the number of restaurants being measured. Domestic AUV includes revenue from both company-owned and franchised restaurants. Domestic AUV allows management to assess our domestic company-owned and franchised restaurant economics. Changes in domestic AUV are primarily driven by increases in same store sales and are also influenced by opening new restaurants.

Domestic same store sales reflects the change in year-over-year sales for the same store restaurant base. We define the same store restaurant base to include those restaurants open for at least 52 full weeks. This measure highlights the performance of existing restaurants, while excluding the impact of new restaurant openings and permanent closures. We review same store sales for domestic company-owned restaurants as well as system-wide domestic restaurants. Domestic same store sales growth is driven by increases in transactions and average transaction size. Transaction size increases are driven by price increases or favorable mix shift from either an increase in items purchased or shifts into higher priced items.

System-wide sales represents net sales for all of our company-owned and franchised restaurants, as reported by franchisees. This measure allows management to better assess changes in our royalty revenue, our overall store performance, the health of our brand and the strength of our market position relative to competitors. Our system-wide sales growth is driven by new restaurant openings as well as increases in same store sales.

EBITDA and Adjusted EBITDA are defined as net income before interest expense, net, income tax expense (benefit), and depreciation and amortization (EBITDA), further adjusted for losses on debt extinguishment and financing transactions, transaction costs, costs and fees associated with investments in our strategic initiatives, gains and losses on non-recurring transactions, certain system implementation costs, certain restructuring charges, and stock-based compensation expense.

Adjusted net income is defined as net income adjusted for losses on debt extinguishment and financing transactions, transaction costs, costs and fees associated with investments in our strategic initiatives, gains and losses on non-recurring transactions, certain system implementation costs, certain restructuring charges, and related tax adjustments.

Adjusted earnings per diluted share is defined as adjusted net income divided by weighted average diluted share count.

We caution investors that amounts presented in accordance with our definitions above may not be comparable to similar measures disclosed by our competitors because not all companies and analysts calculate certain key operating metrics or non-GAAP measurements in the same manner.

Conference Call and Webcast

We will host a conference call today to discuss the third fiscal quarter 2026 financial results at 10:00 AM Eastern Time. The conference call can be joined telephonically by dialing 1-877-259-5243 or 1-412-317-5176 (international) and asking for the Wingstop conference call. A replay will be available two hours after the call and can be accessed by dialing 1-855-669-9658 or 1-412-317-0088 (international), then entering the replay code 4572027. The replay will be available through Wednesday, November 4, 2026.

The conference call will also be webcast live and later archived on the investor relations section of Wingstop’s corporate website at ir.wingstop.com under the ‘News & Events’ section.

About Wingstop

Founded in 1994 and headquartered in Dallas, TX, Wingstop Inc. (NASDAQ: WING) operates and franchises more than 3,000 restaurants worldwide, with approximately 98% of the total restaurant count owned by brand partners. Generating over $5 billion in system-wide sales in fiscal 2025, Wingstop offers made-to-order, always fresh classic and boneless wings, tenders, and chicken sandwiches in 12 bold, distinctive flavors, alongside signature sides and iconic housemade ranch and bleu cheese dips. Dedicated to Serving the World Flavor, Wingstop is the Official Chicken Partner of the NBA with a vision to become a Top 10 Global Restaurant Brand. Learn more at wingstop.com or follow @Wingstop on X, Instagram, Facebook and TikTok.

Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use non-GAAP financial measures, including those indicated above. By providing non-GAAP financial measures, together with a reconciliation to the most comparable GAAP measure, we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. These measures are not intended to be considered in isolation or as substitutes for, or superior to, financial measures prepared and presented in accordance with GAAP. The non-GAAP measures used in this press release may be different from the measures used by other companies. A reconciliation of each measure to the most directly comparable GAAP measure is available in this news release. In addition, the Current Report on Form 8-K furnished to the Securities and Exchange Commission (the “SEC”) concurrent with the issuance of this press release includes a more detailed description of each of these non-GAAP financial measures, together with a discussion of the usefulness and purpose of such measures.

Forward-looking Statements

This news release includes statements of our expectations, intentions, plans and beliefs that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to come within the safe harbor protection provided by those sections. These statements, which involve risks and uncertainties, relate to the discussion of our business strategies and our expectations concerning future operations, margins, profitability, trends, liquidity and capital resources and to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable. These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms “may,” “will,” “should,” “expect,” “intend,” “plan,” “outlook,” “guidance,” “anticipate,” “believe,” “think,” “estimate,” “seek,” “predict,” “can,” “could,” “project,” “potential” or, in each case, their negative or other variations or comparable terminology, although not all forward-looking statements are accompanied by such terms. Examples of forward-looking statements in this news release include, but are not limited to, our 2026 fiscal year outlook for domestic same store sales growth, global unit growth, SG&A expense, stock-based compensation expense, interest expense, net and depreciation and amortization. These forward-looking statements are made based on expectations and beliefs concerning future events affecting us and are subject to uncertainties, risks, and factors relating to our operations and business environments, all of which are difficult to predict and many of which are beyond our control, that could cause our actual results to differ materially from those matters expressed or implied by these forward-looking statements. Please refer to the risk factors discussed in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which can be found at the SEC’s website www.sec.gov. The discussion of these risks is specifically incorporated by reference into this news release.

When considering forward-looking statements in this news release or that we make in other reports or statements, you should keep in mind the cautionary statements in this news release and future reports we file with the SEC. New risks and uncertainties arise from time to time, and we cannot predict when they may arise or how they may affect us. Any forward-looking statement in this news release speaks only as of the date on which it was made. Except as required by law, we assume no obligation to update or revise any forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in any forward-looking statements, even if new information becomes available in the future.

Media Contact
Brett LeVecchio
Media@wingstop.com 

Investor Contact
Sarah Niehaus
IR@wingstop.com 

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SOURCE Wingstop Restaurants Inc.