Wingstop Inc. (NASDAQ:WING) reported second-quarter results that exceeded Wall Street’s earnings expectations, although revenue came in below forecasts. Investors responded positively to the stronger profitability, sending the restaurant chain’s shares about 4.5% higher following the results.
Adjusted earnings were $1.18 per share, comfortably ahead of analysts’ consensus estimate of $1.03.
Revenue increased 6.4% year over year to $185.6 million from $174.3 million but fell short of the market expectation of $191.03 million.
Same-Store Sales Decline Amid Consumer Spending Pressure
The revenue shortfall reflected weaker comparable sales in the company’s domestic business.
Domestic same-store sales declined 7.5% compared with the second quarter of 2025, as lower customer transaction volumes continued to reflect pressure on consumer spending.
Despite softer comparable sales, Wingstop continued to expand its restaurant network, opening 102 net new locations during the quarter.
The company ended the period with 3,255 restaurants worldwide, representing annual unit growth of 16%.
Company Invests in Long-Term Growth
President and Chief Executive Officer Michael Skipworth said the company continued to execute on initiatives designed to strengthen customer engagement and support future expansion.
“During the second quarter, we continued making meaningful progress against the strategic priorities that we believe will drive the next phase of growth for Wingstop. The national launch of Club Wingstop marked an important milestone in building deeper relationships with our guests, while our continued investments in value, flavor innovation and Smart Kitchen are strengthening the business in ways that position us to win more occasions.”
Profitability Continues to Improve
Net income increased 16.9% year over year to $31.3 million, or $1.15 per diluted share.
Adjusted EBITDA rose 12.5% to $66.6 million, while system-wide sales increased 5.3% to $1.4 billion.
Digital channels continued to play a significant role in the business, accounting for 71.6% of total system-wide sales during the quarter.
Outlook Reflects Softer Comparable Sales
For fiscal 2026, Wingstop updated its guidance to reflect a decline of between 4% and 6% in domestic same-store sales.
The company also expects selling, general and administrative expenses of between $140 million and $143 million, including approximately $3 million of restructuring charges.
Wingstop maintained its forecast for global unit growth of between 15% and 16% for the full year.
Wingstop stock price
