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Wingstop Q3 revenue rises on corporate store openings

By Reuters News


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:


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

  • Oct 28 - Chilis owner Brinker posts higher Q1 revenue on menu price hike; raises guidance

  • Oct 27 - Cheesecake Factory beats Q3 revenue estimates on strong traffic, menu innovations

  • 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.)

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