Wingstop Inc. (NASDAQ:WING) reported a 5.3% increase in third-quarter 2026 revenue to $185.1 million, supported by new restaurant openings, although declining same-store sales and continued pressure on consumer spending affected its domestic operations.
The restaurant chain reported net income of $29.1 million, up 2.2% from $28.5 million in the corresponding period of 2025. Diluted earnings per share reached $1.07, while adjusted earnings per share declined 3.5% to $1.08.
System-wide sales increased 6% to $1.44 billion, reflecting continued restaurant expansion despite lower sales at established US locations.
Domestic Same-Store Sales Decline 5.4%
Wingstop reported a 5.4% decline in domestic same-store sales during the third quarter, compared with a 5.6% decrease in the corresponding period last year.
The company attributed the decline primarily to lower transaction volumes, reflecting continued pressure on consumer spending.
Domestic average unit volume fell to approximately $1.85 million from $2.06 million a year earlier.
Same-store sales at company-owned domestic restaurants declined 2.7%, compared with growth of 3.8% in the third quarter of 2025.
President and Chief Executive Officer Michael Skipworth said Wingstop is implementing changes to its marketing strategy, restaurant operations and customer engagement initiatives.
“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,” Skipworth said.
He acknowledged that the recovery in sales performance is taking longer than anticipated, while pointing to early indications of improvement from the company’s initiatives.
Restaurant Network Expands to 3,331 Locations
Wingstop opened 76 net new restaurants during the quarter, bringing its worldwide network to 3,331 locations as of September 26, 2026.
The company operated 2,787 restaurants in the United States, including 2,716 franchised locations and 71 company-owned restaurants.
Its international franchise network, including US territories, comprised 544 restaurants.
The global restaurant count increased from 2,932 locations in the prior-year quarter, supporting growth in system-wide sales and franchise-related revenue.
Digital transactions accounted for 73.7% of total system-wide sales during the period.
Adjusted EBITDA Increases Marginally
Wingstop reported adjusted EBITDA of $64.0 million, compared with $63.7 million in the third quarter of 2025, representing growth of 0.5%.
Adjusted net income declined 3.5% to $29.3 million from $30.4 million.
Cost of sales increased to $27.2 million from $24.3 million, reflecting higher food, packaging, labour and restaurant operating expenses.
As a percentage of company-owned restaurant sales, cost of sales rose to 78.2% from 74.8%.
Selling, general and administrative expenses decreased slightly to $30.5 million, while depreciation and amortisation increased to $9.0 million, partly reflecting technology investments.
Wingstop Updates Full-Year 2026 Guidance
Wingstop now expects domestic same-store sales to decline approximately 6.5% to 7% for the full year.
The company forecasts 440 to 450 net new restaurants globally, representing unit growth of 14.4% to 14.7%.
Selling, general and administrative expenses are projected at between $138 million and $140 million, including approximately $3 million in restructuring charges associated with corporate realignment.
Wingstop also anticipates stock-based compensation expenses of approximately $21 million, depreciation and amortisation of $35 million and net interest expenses of around $41 million.
The updated outlook reflects continued restaurant development alongside weaker domestic sales performance.
Dividend and Share Repurchases
Wingstop declared a quarterly dividend of $0.33 per share, payable on December 4, 2026, to shareholders of record on November 13.
The dividend represents an expected total distribution of approximately $9 million.
During the third quarter, the company repurchased and retired 190,688 shares at an average price of $131.12 per share.
Approximately $288.4 million remained available under its authorised share repurchase programme at the end of the quarter.
Wingstop Outlook
Wingstop’s third-quarter results reflected growth from restaurant expansion, with revenue increasing 5.3% and system-wide sales rising 6%.
However, domestic same-store sales declined 5.4%, while adjusted net income fell 3.5% and adjusted EBITDA remained broadly unchanged.
The company continues to expand its restaurant network while implementing operational and marketing changes intended to improve sales at existing locations.
Its updated full-year guidance anticipates a domestic same-store sales decline of 6.5% to 7%, alongside the opening of 440 to 450 net new restaurants worldwide.