Wingstop Q3 revenue rises on corporate store openings
Wingstop Q3 revenue rises on corporate store openings
Overview
Chicken wing chain's fiscal Q3 revenue rose 5.3% year-over-year
Company's domestic same store sales fell 5.4% on lower transaction volumes
Adjusted net income and adjusted EPS declined 3.5% from prior year
Outlook
Company expects 2026 domestic same store sales to decline 6.5% to 7%
Company sees 2026 global net new units of 440 to 450, or 14.4% to 14.7% growth
Wingstop expects 2026 SG&A expenses of $138 mln to $140 mln, including $3 mln restructuring charges
Result Drivers
NEW FRANCHISE OPENINGS - Co said net new franchise development contributed to revenue growth, partially offset by lower domestic same store sales due to reduced transaction volumes
STORE ACQUISITIONS - Sales at company-owned restaurants rose due to openings and acquisitions of corporate stores
HIGHER OPERATING COSTS - Co said increased food, packaging, rent and labor expenses weighed on margins, especially at acquired restaurants
Company press release: ID:nPnZKFRha
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 System-Wide Sales |
| $1.44 bln |
|
Q3 EPS |
| $1.07 |
|
Q3 Adjusted Net Income |
| $29.34 mln |
|
Q3 Net Income |
| $29.10 mln |
|
Q3 Adjusted EBITDA |
| $64 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 23 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the restaurants & bars peer group is "buy"
Wall Street's median 12-month price target for Wingstop Inc. is $190.00, about 53.8% above its October 27 closing price of $123.52
The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 34 three months ago
Reuters Recommended Reads
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Oct 28 - Chefs' Warehouse Q3 sales rise 11%, beat estimates
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)