Wingstop's Q1 2025 Earnings Call: Navigating Contradictions in Sales Growth, International Strategy, and Consumer Behavior

Sales and comp growth expectations, international expansion strategy and challenges, impact of macro environment on consumer behavior, same-store sales growth outlook, and sales and comps outlook are the key contradictions discussed in Wingstop's latest 2025Q1 earnings call.



Macroeconomic Impact and Consumer Behavior:
- Wingstop reported a 0.5% same-store sales growth for Q1 2025, impacted by macroeconomic conditions and elevated consumer anxiety.
- Indicators suggest a temporary consumer pullback, particularly among Hispanic consumers and lower-middle income areas.
- The company has navigated similar periods in the past, indicating confidence in overcoming current challenges.

Digital and Delivery Growth:
- Digital sales increased to 72%, contributing significantly to Wingstop's growth.
- The expansion of delivery channels, including partnerships with Uber Eats and DoorDash, has enhanced consumer engagement.
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Menu Innovation and Tender Launch:
- The relaunch of crispy chicken tenders showed positive results, contributing to a record level of new guest acquisition in March.
- The new tender offerings are entering as individual eating occasions, similar to the chicken sandwich launch, supporting a balanced daypart mix.
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International Expansion and Market Development:
- Wingstop opened 126 new restaurants in Q1, marking an increased focus on international markets like Kuwait and upcoming markets like Australia.
- International markets are performing stronger than the U.S. in terms of same-store sales.
- The company is exploring opportunities in markets like China and India, despite the current geopolitical environment.

Operational Efficiency and Smart Kitchen Rollout:
- The new Wingstop Smart Kitchen platform is rolling out to more than 200 restaurants, demonstrating significant improvements in order time and guest satisfaction.
- This technology is expected to unlock new dayparts and increase order consistency, contributing to the path towards $3 million AUVs.
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