Wingstop Q3 Revenue Rises 5.3% as Domestic Same-Store Sales Fall 5.4%

Wingstop Inc. (WING ) on October 28, 2026 reported total revenue of $185.1 million for the fiscal third quarter ended September 26, 2026, a 5.3% increase from $175.7 million in the prior-year quarter, according to the company’s earnings release. Net income rose 2.2% to $29.1 million, or $1.07 per diluted share, compared with $1.02 per diluted share a year earlier. Domestic same-store sales decreased 5.4%.

System-wide sales of $1.4 billion increased 6.0% versus the third quarter of 2025, and digital sales represented 73.7% of system-wide sales. Domestic restaurant average unit volume was $1.848 million, down from $2.061 million in the prior-year quarter. Company-owned domestic same-store sales declined 2.7%, compared with a 3.8% increase a year earlier, while the 5.4% decline in domestic same-store sales followed a 5.6% decline in the prior-year quarter.

Adjusted net income and adjusted earnings per diluted share, both non-GAAP measures, decreased 3.5% to $29.3 million, or $1.08 per diluted share. Adjusted EBITDA, also a non-GAAP measure, increased 0.5% to $64.0 million.

Revenue Components and Cost Detail

Royalty revenue, franchise fees and other totaled $86.3 million in the quarter, advertising fees were $64.0 million, and company-owned restaurant sales were $34.8 million. Royalty revenue, franchise fees and other increased $5.1 million, with $8.6 million primarily due to net new franchise development, partially offset by a $3.6 million decrease due to the 5.4% decline in domestic same-store sales, which the company said came from lower transaction volumes reflecting continued pressure on consumer spending. Advertising fees increased $2.0 million on the 6.0% increase in system-wide sales. Company-owned restaurant sales increased $2.2 million, primarily due to sixteen corporate stores opened or acquired since the prior-year period, including thirteen stores acquired during the thirteen weeks ended September 26, 2026.

Cost of sales was $27.2 million, compared with $24.3 million in the prior third quarter. As a percentage of company-owned restaurant sales, cost of sales increased to 78.2% from 74.8%, an increase the company said was primarily driven by higher food, beverage and packaging costs related to fries and packaging, increased rent, repair and maintenance expenses, and higher labor costs associated with acquired restaurants, as well as the impact of lower sales on fixed labor costs and operating expenses. In the company’s supplemental margin analysis, food, beverage and packaging costs represented 36.9% of company-owned restaurant sales versus 36.2% a year earlier, labor costs represented 24.7% versus 23.1%, and other restaurant operating expenses represented 19.4% versus 17.9%.

Selling, general and administrative expense decreased $0.2 million to $30.5 million from $30.7 million, a decrease the company said was primarily driven by $2.0 million in reduced stock compensation expense due to forfeitures recognized in the period, partially offset by a $1.5 million increase in headcount-related expenses. Depreciation and amortization increased $2.8 million to $9.0 million from $6.2 million, primarily due to capital expenditures placed in service after the comparable 2025 period related to technology investments.

Operating income was $50.7 million, compared with $48.961 million in the prior-year quarter. Interest expense, net was $10.6 million versus $9.2 million. Income tax expense was $10.9 million, yielding an effective tax rate of 27.3%, compared with 28.1% a year earlier; the company said the decrease in total tax expense was primarily due to a decrease in state income taxes and other non-deductible items.

Restaurant Development and Capital Returns

As of September 26, 2026, there were 3,331 Wingstop restaurants system-wide, up from 2,932 a year earlier. The total included 2,787 restaurants in the United States, of which 2,716 were franchised and 71 were company-owned, and 544 franchised restaurants in international markets, including U.S. territories. The quarter produced 76 net system-wide openings. Domestic franchised activity included 59 openings, one closure, and thirteen restaurants acquired by the company; international franchised activity included 21 openings and four closures.

On October 27, 2026, the board of directors authorized and declared a quarterly dividend of $0.33 per share of common stock, a total dividend of approximately $9.0 million, payable December 4, 2026 to stockholders of record as of November 13, 2026. Dividends per share were $0.30 in the prior-year quarter, per the statements of operations accompanying the release.

Wingstop repurchased and retired 190,688 shares of its common stock at an average price of $131.12 per share during the quarter. As of September 26, 2026, $288.4 million remained available under the share repurchase program; the board had authorized up to an additional $300.0 million of repurchases under the existing program in the fiscal first quarter of 2026. Since the program’s inception in August 2023, the company has repurchased and retired 3,150,161 shares at an average price of $241.75 per share.

The company provided updated guidance for 2026: a decline of approximately 6.5% to 7% in domestic same-store sales; global net new units of 440 to 450, or 14.4% to 14.7% unit growth; SG&A of between $138 million and $140 million, including $3 million of restructuring charges related to corporate realignment; stock-based compensation expense of approximately $21 million; depreciation and amortization of approximately $35 million; and interest expense, net of approximately $41 million.

“We are taking deliberate action across our business to drive same store sales growth, with a focus on sharpening our marketing execution, strengthening restaurant operations, and leveraging Club Wingstop to deepen guest relationships,” said Michael Skipworth, president and chief executive officer. “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.”

Skipworth also cited the company’s restaurant-level economics, development pipeline, and global whitespace in reiterating its stated ambition to become a Top 10 Global Restaurant Brand.

At September 26, 2026, Wingstop reported cash and cash equivalents of $104.8 million, total assets of $686.6 million, long-term debt, net of $1,211.3 million, and total stockholders’ deficit of $772.5 million.

Wingstop said it would host a conference call at 10:00 a.m. Eastern Time on October 28, 2026, with a replay available through November 4, 2026. A Current Report on Form 8-K was furnished to the Securities and Exchange Commission concurrent with the release.