Highlights

  • Fiscal second quarter 2026 net income was $31.3 million, or $1.15 per diluted share, against $26,763 thousand in 2025.
  • Domestic same store sales declined 7.5% in the quarter, and management now expects a full year decline of 4% to 6%.
  • The system had 3,255 restaurants open at the end of the period, with 102 net new openings in the second quarter.
  • The board declared a $0.33 per share dividend on July 28, 2026, to be paid on September 5, 2026.

Wingstop Inc. (NASDAQ: WING) shares were trading at USD 120.21 on October 27, 2026, down 2.17%, with a relative volume at time of 3.35. The restaurant franchisor announced a corporate realignment on January 13, 2026, authorized an additional $300.0 million share repurchase on March 5, 2026, and reported fiscal second quarter 2026 results and an updated outlook on July 29, 2026.

Wingstop is a Delaware corporation with principal executive offices in Dallas, Texas. The company franchises and operates restaurants focused on chicken wings, boneless wings, tenders and chicken sandwiches, with over 3,250 locations worldwide. It is primarily a franchisor, and approximately 98% of its restaurants are owned and operated by independent franchisees. It reports revenue from royalties, franchise fees, advertising fees and company-owned restaurant sales. Wingstop uses a 52- or 53-week fiscal year that ends on the last Saturday of the calendar year, and fiscal 2026 has 52 weeks.

Fiscal Second Quarter 2026 Results

For the thirteen weeks ended June 27, 2026, total revenue was $185.6 million, an increase of $11.2 million, or 6.4%, from $174.3 million. Net income increased 16.9% to $31.3 million, or $1.15 per diluted share. Adjusted net income, a non-GAAP measure, was $32.1 million, or $1.18 per diluted share, and Adjusted EBITDA, a non-GAAP measure, was $66.6 million.

Royalty revenue, franchise fees and other increased $7.0 million, which included $11.2 million from net new franchise restaurant development, partly offset by a $5.0 million decrease the company linked to the 7.5% decline in domestic same store sales. Income before income tax expense was $44,651 thousand, compared with $36,765 thousand.

For the twenty-six weeks, total revenue increased 6.9% to $369.3 million. Net income decreased 48.6% to $61.2 million, or $2.23 per diluted share. Domestic same store sales decreased 8.1% over the prior fiscal year-to-date period.

Cash, Debt and Capital Returns

The company held $157.4 million of cash, cash equivalents and restricted cash at June 27, 2026. Net cash provided by operating activities for the twenty-six weeks was $68.3 million, compared with $31.9 million, net cash used in investing activities was $35.9 million, and net cash used in financing activities was $103.4 million. Its debt consists of securitized fixed rate senior secured notes, and it elected to suspend principal payments while its leverage ratio remained below 5.0x.

During the twenty-six weeks, the company repurchased and retired 374,324 shares at an average price of $208.08 per share. As of June 27, 2026, $313.4 million remained available under the share repurchase program. It paid a quarterly dividend of $0.30 per share in each of the first two quarters of 2026, and the board declared $0.33 per share on July 28, 2026.

Outlook and Management Commentary

On the earnings call, management said second quarter results fell below its expectations and updated its outlook. It now expects a domestic same store sales decline of 4% to 6% for the year, selling, general and administrative expense of $140 million to $143 million, and stock-based compensation of approximately $24 million. It reiterated global unit growth guidance of 15% to 16%, with the fourth quarter expected to have the most net new openings.

Management also said it expects to close in the third quarter on the acquisition of 13 restaurants in a market outside the Dallas-Fort Worth area, an investment of approximately $32 million, expected to contribute approximately $7 million in revenue and $1 million of adjusted EBITDA for the balance of 2026. It cited macroeconomic pressure on its core consumer.