Wingstop (Wingstop (WING)) reported its second-quarter results on Wednesday, and the picture is a bit mixed—like a basket of wings with some drums and some flats. The company beat earnings expectations, but revenue fell short as customers tightened their belts.
Adjusted earnings came in at $1.18 per share, ahead of the $1.09 analysts were looking for. Revenue rose 6.4% from a year ago to $185.6 million, but that was below the $196.9 million Street estimate. On a GAAP basis, net income jumped 16.9% to $31.3 million, or $1.15 per share, compared to $26.8 million, or 96 cents, a year earlier. Adjusted net income was up 14.9% to $32.1 million, and adjusted EBITDA climbed 12.5% to $66.6 million.
The headline number that caught everyone's attention: domestic same-store sales fell 7.5%. That's a sharp drop from the 1.9% decline in the same quarter last year. Fewer customers walked through the doors (or clicked through the app), and average unit volumes slipped to $1.89 million from $2.11 million. The company is feeling the pinch from consumers who are watching their wallets more closely.
But here's the thing: Wingstop is still growing like crazy in other ways. System-wide sales increased 5.3% to $1.41 billion, thanks to a massive restaurant expansion. The company opened 102 net new locations during the quarter, bringing its global total to 3,255—a 16% increase from a year ago. Digital sales made up 71.6% of system-wide sales, so even if people are ordering less, they're still ordering online.
CEO Michael Skipworth is trying to keep customers coming back with a new loyalty program called Club Wingstop, which rolled out nationally. He also highlighted investments in value offerings, new flavors, and the company's Smart Kitchen initiative. "We remain confident in our goal of becoming a Top 10 Global Restaurant Brand," he said, pointing to one of the industry's strongest development pipelines.
Wingstop also sweetened the pot for shareholders, raising its quarterly dividend to 33 cents per share from 30 cents. The dividend will be paid on Sept. 5 to shareholders of record as of Aug. 15. As of June 27, the company had $127.5 million in cash.
Looking ahead, Wingstop updated its full-year 2026 guidance, citing macro uncertainty. It now expects domestic same-store sales to decline 4% to 6%. Selling, general, and administrative expenses are forecast between $140 million and $143 million, including $3 million in restructuring charges. The company also reiterated its global unit growth target of 15% to 16% and net interest expense of about $43 million.
Shares of Wingstop were up 3.49% in premarket trading to $139.58, suggesting investors were relieved the earnings beat outweighed the revenue miss—at least for now.
