Wingstop Inc. Reports Fiscal Third Quarter Financial Results
Wingstop Inc. (WING) filed an SEC Form 8-K — Results of Operations and Financial Condition. FOR IMMEDIATE RELEASE Wingstop Inc. Reports Fiscal Third Quarter Financial Results Dallas, October 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 acro
How this was made
The 30-second read
Why it matters
The company provided updated 2026 outlook with a domestic same-store sales decline range and global net new unit growth targets, alongside dividend authorization and continued share repurchases.
Market read
Traders can update expectations for Wingstop’s domestic demand trajectory and development pipeline based on the updated 2026 guidance and the quarter’s operating metrics (digital mix, AUV, and same-store sales).
What to watch
Cost structure details matter: cost of sales rose as a percentage of company-owned sales due to food, packaging, rent, and labor, which could limit margin recovery even if unit growth continues.
Wingstop reported 5.3% total revenue growth and 6.0% system-wide sales growth, while domestic same store sales decreased 5.4% and adjusted earnings per diluted share decreased 3.5%.
New-unit development supported system-wide sales and revenue growth, but domestic same store sales declined 5.4%, company-owned restaurant cost of sales rose to 78.2% of sales, and adjusted net income and adjusted EPS decreased.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| System-wide salesother | $1.44B | – | 6.0% |
| Number of system-wide restaurants open at end of periodother | 3,331 | – | – |
| Number of domestic franchise restaurants open at end of periodother | 2,716 | – | – |
| Number of international franchise restaurants open at end of periodother | 544 | – | – |
| Domestic AUVother | $1.85M | – | – |
| Domestic same store sales growthother | (5.4)% | – | (5.4)% |
| Company-owned domestic same store sales growthother | (2.7)% | – | – |
| Total revenueGAAP | $185.1M | – | 5.3% |
| Royalty revenue, franchise fees and otherGAAP | $86.30M | – | – |
| Advertising feesGAAP | $64.05M | – | – |
| Company-owned restaurant salesGAAP | $34.78M | – | – |
| Cost of salesGAAP | $27.21M | – | – |
| Cost of sales as a percentage of company-owned restaurant salesGAAP | 78.2% | – | – |
| Food, beverage and packaging costsGAAP | $12.84M | – | – |
| Food, beverage and packaging costs as a percentage of company-owned restaurant salesGAAP | 36.9% | – | – |
| Labor costsGAAP | $8.61M | – | – |
| Labor costs as a percentage of company-owned restaurant salesGAAP | 24.7% | – | – |
| Other restaurant operating expensesGAAP | $6.75M | – | – |
| Other restaurant operating expenses as a percentage of company-owned restaurant salesGAAP | 19.4% | – | – |
| Vendor rebatesGAAP | −$990K | – | – |
| Vendor rebates as a percentage of company-owned restaurant salesGAAP | (2.8)% | – | – |
| Advertising expensesGAAP | $67.75M | – | – |
| Selling, general and administrativeGAAP | $30.47M | – | – |
| Depreciation and amortizationGAAP | $9.01M | – | – |
| Total costs and expensesGAAP | $134.4M | – | – |
| Operating incomeGAAP | $50.70M | – | – |
| Interest expense, netGAAP | $10.58M | – | – |
| Investment (income) expenseGAAP | $94K | – | – |
| Income before income tax expenseGAAP | $40.02M | – | – |
| Income tax expenseGAAP | $10.92M | – | – |
| Effective tax rateGAAP | 27.3% | – | – |
| Net incomeGAAP | $29.1M | – | 2.2% |
| Basic earnings per shareGAAP | $1.07 | – | – |
| Diluted earnings per shareGAAP | $1.07 | – | – |
| Adjusted net incomenon-GAAP | $29.3M | – | (3.5)% |
| Adjusted earnings per diluted sharenon-GAAP | $1.08 | – | (3.5)% |
| EBITDAnon-GAAP | $59.61M | – | – |
| Adjusted EBITDAnon-GAAP | $64M | – | 0.5% |
| Cash and cash equivalentsGAAP | $104.8M | – | – |
| Restricted cashGAAP | $25.99M | – | – |
| Long-term debt, netGAAP | $1.21B | – | – |
| Total assetsGAAP | $686.6M | – | – |
| Total liabilitiesGAAP | $1.46B | – | – |
| Total stockholders' deficitGAAP | −$772.5M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Royalty revenue, franchise fees and otherIncreased $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. | $86.30M | – | – |
| Advertising feesIncreased $2.0 million due to a 6.0% increase in system-wide sales in the third quarter 2026. | $64.05M | – | – |
| Company-owned restaurant salesIncreased $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. | $34.78M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
2026 outlook
- Operating expensesSG&A of between $138 - $140 million, which includes $3 million of restructuring charges related to corporate realignment
- NoteA decline of approximately 6.5% to 7% in domestic same store sales growth
- NoteGlobal net new units of 440 to 450, or 14.4% to 14.7% unit growth
- NoteStock-based compensation expense of approximately $21 million
- NoteDepreciation and amortization of approximately $35 million
- NoteInterest expense, net of approximately $41 million
Capital returns
- On October 27, 2026, the 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.
- The dividend will be paid on December 4, 2026 to stockholders of record as of November 13, 2026.
- The Company repurchased and retired 190,688 shares of 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.
- Since August 2023, the Company has repurchased and retired 3,150,161 shares at an average price of $241.75 per share.
What drove it
- System-wide sales increased 6.0% to $1.4 billion and the system added 76 net openings during the third quarter 2026.
- Domestic restaurant AUV was $1.85 million.
- Digital sales represented 73.7% of system-wide sales.
- Royalty revenue, franchise fees and other benefited primarily from net new franchise development.
- SG&A decreased $0.2 million, driven by $2.0 million in reduced stock compensation expense due to forfeitures, partially offset by a $1.5 million increase in headcount-related expenses.
Concerns
- Domestic same store sales decreased 5.4%, with lower transaction volumes reflecting continued pressure on consumer spending.
- Company-owned restaurant cost of sales increased to 78.2% of company-owned restaurant sales from 74.8%, driven by higher food, beverage and packaging costs, rent, repair and maintenance expenses, labor costs at acquired restaurants, and lower sales absorption of fixed costs.
- Depreciation and amortization increased to $9.0 million from $6.2 million, primarily due to technology-investment capital expenditures placed in service.
- Adjusted net income and adjusted earnings per diluted share both decreased 3.5%.
What to watch
- Domestic same store sales performance against guidance for a decline of approximately 6.5% to 7%.
- The pace of global net new units toward guidance of 440 to 450.
- The effect of marketing execution, restaurant operations and Club Wingstop on transactions and domestic same store sales.
- Company-owned restaurant cost of sales following higher fries, packaging, rent, repair and maintenance, and labor costs.
- SG&A delivery within guidance of between $138 - $140 million, including $3 million of restructuring charges related to corporate realignment.
Balance sheet and cash flow
- Cash and cash equivalents were $104,787 as of September 26, 2026, compared with $196,572 as of December 27, 2025.
- Restricted cash was $25,994 as of September 26, 2026 and December 27, 2025.
- Long-term debt, net was $1,211,349 as of September 26, 2026, compared with $1,209,094 as of December 27, 2025.
- No operating cash flow or free cash flow was reported in the filing.
Analysis
Wingstop delivered higher system-wide sales and reported revenue in the fiscal third quarter, supported by development rather than underlying domestic comparable sales. System-wide sales increased 6.0% to $1.4 billion, total revenue increased 5.3% to $185.1 million, and the system added 76 net restaurants. Royalty revenue, franchise fees and other increased $5.1 million, with $8.6 million primarily attributable to net new franchise development.
Domestic demand remained the central pressure point. Domestic same store sales decreased 5.4%, which the Company attributed to lower transaction volumes and continued pressure on consumer spending. Domestic AUV was $1.85 million, compared with $2.061 million in the prior-year period. Digital sales represented 73.7% of system-wide sales, while management cited marketing execution, restaurant operations and Club Wingstop as areas of deliberate action to restore sustained sales growth.
Profitability growth lagged revenue growth. Net income increased 2.2% to $29.1 million, but adjusted net income decreased 3.5% to $29.3 million and adjusted earnings per diluted share decreased 3.5% to $1.08. Company-owned restaurant cost of sales rose to 78.2% of company-owned restaurant sales from 74.8%, reflecting higher fries and packaging costs, increased rent, repair and maintenance, acquired-restaurant labor costs, and lower sales leverage on fixed costs. Adjusted EBITDA increased 0.5% to $64.0 million.
The Company maintained development and capital returns while carrying $1,211,349 of long-term debt, net, and $104,787 of cash and cash equivalents at period end. It repurchased and retired 190,688 shares during the quarter and declared a $0.33 per-share dividend. Updated 2026 guidance calls for a decline of approximately 6.5% to 7% in domestic same store sales growth, 440 to 450 global net new units, SG&A of between $138 - $140 million including $3 million of restructuring charges, and approximately $35 million of depreciation and amortization.
Management, verbatim
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.
Michael Skipworth, President and Chief Executive Officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided; therefore, comparison of actual results with prior guidance is unavailable.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Revenue guidance was not provided.
- Gross margin guidance was not provided.
- Tax rate guidance was not provided.
- A GAAP gross margin was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Wingstop furnished its fiscal third quarter results for the 13 weeks ended September 26, 2026 and discussed operational initiatives aimed at same-store sales growth.
Ticker impact
Wingstop reported fiscal Q3 results and provided updated 2026 guidance, including domestic same-store sales decline of about 6.5% to 7% and unit growth targets.
Likely mixed reaction, with pressure from updated domestic same-store outlook offset by support from global unit growth and ongoing digital mix.
The filing includes both a negative domestic same-store sales outlook and positive global net new unit growth, plus cost and cash-return actions (dividend and buyback) that may cushion sentiment.
Market effects
Restaurant franchise models may see read-through on consumer demand and digital mix durability, especially for quick-service peers.
US-focused same-store weakness could weigh on discretionary dining sentiment, while unit growth supports broader franchise development optimism.
International franchise expansion targets reinforce global growth narratives for branded restaurant operators.
Counterpoint
Investors may focus more on global net unit growth and digital sales share (73.7% of system-wide sales) than on domestic same-store declines, viewing the latter as a timing issue.
Key entities
- companyWingstop Inc.
US-listed quick-service restaurant franchisor reporting Q3 results and updated 2026 guidance in an SEC 8-K.
- executiveMichael Skipworth
CEO who commented on deliberate actions to drive same-store sales growth and early indicators from operational changes.
