Wingstop (WING) investor relations material

Executive summary

• System-wide sales grew 13.9% to $1.3B–$1.34B, with 129 net new restaurants opened, the highest in company history, despite a 1.9% decline in same-store sales.

• Net income decreased 2.6% to $26.8M ($0.96 per diluted share), while adjusted EBITDA rose 14.3% to $59.2M and adjusted EPS reached $1.00.

• Brand health, guest satisfaction, and operational consistency improved, driven by Smart Kitchen rollout and menu innovation.

• Digital sales accounted for 72.2% of system-wide sales, reflecting strong digital adoption.

• International expansion accelerated, with new markets like Australia and Paris surpassing domestic AUVs and record-breaking sales in the UK.

Financial highlights

• Total revenue increased 12% to $174.3M year-over-year; royalty revenues and franchise fees rose by $8.7M.

• Company-owned restaurant sales grew $2.6M, with same-store sales up 3.6% and two net new restaurants added.

• Cost of sales for company-owned restaurants declined to 75.2% of sales; food, beverage, and packaging costs rose to 36.8%.

• SG&A expense increased $4.8M to $32.9M, mainly due to higher headcount and system implementation costs.

• Interest expense increased due to $500M new debt issued in Dec 2024; investment income boosted by $93.8M gain on UK franchisee sale.

Outlook and guidance

• Global unit growth guidance raised to 17%-18% for 2025, implying 435-460 net new units; domestic same-store sales growth guidance reiterated at ~1%.

• Adjusted EBITDA growth expected to exceed 15% versus 2024; SG&A guidance at ~$140M, including $4.5M in non-recurring system implementation costs.

• Interest expense, net, expected to be approximately $39M for 2025.

• Management expects cash flows and financing capacity to cover capital, working capital, and debt service needs for at least the next 12 months.

• Sales growth anticipated to return in Q3 as prior year comparisons ease, with Q4 expected to be the highest media investment period.