Wingstop (WING) investor relations material

Executive summary

• Q3 system-wide sales rose 6.0% to $1.437 billion and revenue increased 5.3% to $185.1 million; domestic same-store sales fell 5.4%.

• Management is intensifying marketing, Club Wingstop engagement and restaurant operations to rebuild transactions and restore sustained sales growth.

• 76 net openings brought the system to 3,331 restaurants at quarter-end.

Financial highlights

• Q3 royalty revenue, franchise fees and other revenue rose 6.3% to $86.3 million; advertising fees increased 3.3% to $64.1 million and company-owned restaurant sales rose 6.9% to $34.8 million.

• Net income increased 2.2% to $29.1 million, or $1.07 diluted EPS; adjusted net income declined 3.5% to $29.3 million, or $1.08 adjusted diluted EPS.

• Operating income rose 3.5% to $50.7 million; interest expense, net, increased 14.9% to $10.6 million.

• Adjusted EBITDA increased 0.5% to $64.0 million in Q3; YTD Adjusted EBITDA rose 7.5% to $196.0 million.

• YTD revenue grew 6.4% to $554.4 million; net income fell to $90.3 million from $147.5 million, primarily reflecting the prior-year $97.2 million LPH investment sale gain.

Outlook and guidance

• FY2026 domestic same-store sales guidance is a 6.5%-7% decline; global net unit growth guidance is 440-450 restaurants, or 14.4%-14.7%.

• FY2026 SG&A guidance is $138-$140 million, including $3 million of restructuring charges and approximately $21 million of stock-based compensation expense.

• FY2026 depreciation and amortization guidance is approximately $35 million; net interest expense guidance is approximately $41 million.

• Higher Q4 SG&A investment is expected to put adjusted EBITDA below prior expectations; management cited a year-over-year level near Q3 as a reasonable modeling reference.

• Management expressed confidence in Q4 comp guidance, citing current trends and early signals from marketing and guest initiatives.