Wingstop Earnings Soar 7.5% YoY as Revenue Hits 12% Growth

Wingstop's Q2 earnings increased 7.5% YoY, with revenue up 12% to $174.3mln. Despite a 1.9% same-store sales decline, the company plans to implement a data-driven restaurant management system to improve growth. Wingstop's shares surged 26.1% on the news.

Wingstop Inc. (NASDAQ: WING) reported its fiscal second quarter 2025 financial results, highlighting a 7.5% year-over-year (YoY) increase in earnings, with revenue rising 12% to $174.3 million. Despite a 1.9% decrease in domestic same-store sales, the company's system-wide sales grew by 13.9% to $1.3 billion, driven by a 19.8% net new unit growth and 129 net new openings [1].

The company's adjusted net income increased by 1.6% to $27.9 million, or $1.00 per diluted share, while adjusted EBITDA rose by 14.3% to $59.2 million. Wingstop's digital sales accounted for 72.2% of system-wide sales, up from 71.2% in the prior year. The company's domestic average unit volume (AUV) increased to $2.1 million, reflecting the growth in unit economics.

Wingstop's shares surged 26.1% on the news, reaching a new high. The company's President & CEO, Michael Skipworth, attributed the strong performance to the brand's unit economics and the commitment of its brand partners to growing the Wingstop brand. He also highlighted the company's momentum in development, with 129 net new units opened in the second quarter, marking the fourth consecutive quarter of more than 100 net new units.

Wingstop's financial outlook for 2025 includes a global unit growth rate of 17% to 18%, previously 16% to 17%, and interest expense, net, of approximately $39 million, previously $40 million. The company is also planning to implement a data-driven restaurant management system to improve growth and efficiency.

References:
[1] https://ir.wingstop.com/financials/quarterly-results/