Wingstop Q2 revenue rises on new franchise openings
Wingstop Q2 revenue rises on new franchise openings
Overview
U.S. chicken wing chain's fiscal Q2 revenue rose 6.4% yr/yr
Adjusted EPS for fiscal Q2 increased 18% yr/yr
Domestic same store sales fell 7.5%, reflecting lower transaction volumes and consumer spending pressure
Outlook
Wingstop expects 2026 domestic same store sales to decline 4% to 6%
Company reiterates 2026 global unit growth rate of 15% to 16%
Wingstop sees 2026 SG&A expense between $140 mln and $143 mln, including $3 mln restructuring charges
Result Drivers
NEW UNIT OPENINGS - Revenue growth was primarily driven by net new franchise development, with 102 net new openings in the quarter
SAME STORE SALES DECLINE - Domestic same store sales fell 7.5% due to lower transaction volumes and continued pressure on consumer spending
LOWER FOOD COSTS - Cost of sales as a percentage of company-owned restaurant sales decreased, mainly due to a decline in the cost of bone-in chicken wings
Company press release: ID:nPn8LJ5hDa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 System-Wide Sales |
| $1.41 bln |
|
Q2 EPS |
| $1.15 |
|
Q2 Adjusted Net Income |
| $32.09 mln |
|
Q2 Net Income |
| $31.29 mln |
|
Q2 Adjusted EBITDA |
| $66.63 mln |
|
Q2 Same Store Sales Growth |
| -7.50% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 24 "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 $229.00, about 69.8% above its July 28 closing price of $134.87
The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 31 three months ago
Reuters Recommended Reads
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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.)