Wingstop Inc. (“Wingstop” or the “Company”) (NASDAQ: WING), a leading fast-casual restaurant brand known for its signature chicken wings and flavor innovation, today announced its financial results for the fiscal second quarter ended June 28, 2025. The results reflect robust development momentum, sustained digital sales growth, and steady system-wide performance despite a slight dip in same-store sales.
Key Highlights for Q2 Fiscal 2025 vs. Q2 Fiscal 2024:
- System-wide sales rose by 13.9%, reaching a record $1.3 billion
- 129 net new restaurant openings, continuing rapid expansion
- Domestic Average Unit Volume (AUV) increased to $2.1 million
- Domestic same-store sales declined 1.9%
- Digital sales accounted for 72.2% of total system-wide sales
- Total revenue climbed 12.0% to $174.3 million
- Net income decreased by 2.6% to $26.8 million, or $0.96 per diluted share
- Adjusted net income rose 1.6% to $27.9 million, or $1.00 per diluted share
- Adjusted EBITDA increased 14.3% to $59.2 million
The company’s adjusted results, which exclude certain non-recurring or non-cash items, provide a clearer picture of ongoing operational performance. Reconciliations to the nearest U.S. GAAP figures are available in the schedules accompanying the official earnings release.
CEO Commentary: Growth and Brand Strength Continue to Drive Results
“Our second quarter results showcase the strength of our unit economics and the compelling returns that our brand partners continue to experience,” said Michael Skipworth, President and Chief Executive Officer of Wingstop. “With 129 net new restaurant openings this quarter, we’ve achieved 19.8% unit growth and marked our fourth consecutive quarter of opening more than 100 net new locations. This continued pace of development is a testament to the commitment of our franchise partners and their confidence in the Wingstop brand.”
Skipworth emphasized that the company remains firmly on track toward its long-term goal of becoming a Top 10 Global Restaurant Brand, citing global expansion, digital innovation, and strategic capital investments as key pillars of growth.
Financial Performance Breakdown
Revenue Growth Driven by New Openings and Advertising Contributions
Total revenue for the second quarter increased 12.0% to $174.3 million, up from $155.7 million in the same period last year. The rise was driven by multiple factors:
- Royalty revenue, franchise fees, and other revenues rose by $8.7 million, fueled largely by new franchise development that contributed $9.8 million. This growth was slightly offset by a $1.4 million decline due to a 1.9% dip in domestic same-store sales.
- Advertising fees increased by $7.3 million, supported by the 13.9% jump in system-wide sales and an increase in the national advertising fund contribution rate to 5.5%, up from 5.3%, effective at the start of fiscal 2025.
- Company-owned restaurant sales saw a gain of $2.6 million, attributed to same-store sales growth of 3.6%, a result primarily of increased transactions, as well as the inclusion of newly opened or acquired restaurants.
Cost Management and Operational Efficiencies
- Cost of sales rose to $24.4 million, compared to $22.7 million in the prior year. However, as a percentage of company-owned restaurant sales, costs improved to 75.2%, down from 75.9%, thanks to greater operating leverage—particularly in labor and overhead costs.
- Selling, General & Administrative (SG&A) expenses increased by $4.8 million to $32.9 million, up from $28.1 million. This rise was primarily due to:
- $3.8 million in increased headcount and stock-based compensation to support ongoing growth.
- $1.5 million in system implementation costs.
- These were partially offset by a $2.0 million reduction in professional services and miscellaneous fees.
- Depreciation and amortization expenses rose by $1.1 million, totaling $6.2 million, reflecting continued capital investments—especially in technology infrastructure and new store development.
Higher Interest Expense Due to Strategic Debt Financing
Net interest expense climbed to $8.5 million, a significant increase from $5.2 million in the second quarter of fiscal 2024. The jump was largely attributed to interest on the $500 million securitized financing transaction completed on December 3, 2024, which has elevated overall debt obligations. This was partially offset by interest income generated from higher cash balances and short-term investments.
Digital Transformation Fuels Engagement
Digital orders continued to be a key driver of customer engagement, with digital sales accounting for 72.2% of system-wide transactions. The company has focused heavily on digital platform enhancements, including personalized marketing, streamlined mobile ordering, and loyalty integration, all of which are driving consistent usage across customer segments.
Wingstop’s technology-forward approach also enables data-driven decision-making across its franchise network, allowing for agile marketing, improved labor deployment, and better demand forecasting.
Development Momentum and International Expansion
The 129 net new restaurant openings in Q2 marked one of the highest quarterly development volumes in company history. The growth brings Wingstop closer to its international expansion objectives. The company now operates more than 2,400 locations globally and continues to see strong interest from existing and prospective franchisees.
With an expanding footprint across key markets in the U.S., Latin America, and Asia, Wingstop is prioritizing strategic locations, efficient buildout models, and local consumer adaptation to maximize returns.
Outlook: Focused on Long-Term Value Creation
Despite a minor decline in domestic same-store sales, Wingstop’s continued revenue growth, high digital penetration, disciplined cost control, and aggressive development pace highlight the brand’s resilience and scalability.
“We remain focused on long-term value creation,” Skipworth added. “Whether through digital innovation, new restaurant openings, or improving restaurant-level economics, our strategy is clear and our execution is disciplined. We’re just getting started on what we believe is a transformational journey for Wingstop globally.”
About Wingstop Inc.
Founded in 1994 and headquartered in Dallas, Texas, Wingstop Inc. is a global restaurant brand specializing in cooked-to-order chicken wings, hand-cut seasoned fries, and proprietary sauces. With a strong commitment to flavor, innovation, and community, the company has become one of the fastest-growing concepts in the fast-casual segment.
