Wingstop Q2 Earnings: Robust Store Growth and Strong Unit Economics Drive 12% Revenue Jump, Shares Surge 26%

Wingstop reported Q2 revenue of $174mln, up 12%, driven by a 19.8% increase in net units and a 1.9% decline in US comparable restaurant sales. Adjusted EPS rose 7.5% to $1.00. The company raised its full-year unit growth outlook to 17.5% and maintained its 1% US comparable restaurant sales growth expectation. Wingstop's strong unit economics and operational improvements led to a 26% share price increase.

Wingstop Inc. (NASDAQ: WING) reported its fiscal second quarter (Q2) 2025 financial results, showcasing robust growth and operational improvements. The company's revenue increased by 12% to $174.3 million, driven by a 19.8% increase in net new units and a 1.9% decline in US comparable restaurant sales. Adjusted earnings per diluted share (EPS) rose by 7.5% to $1.00.

Key highlights from the Q2 2025 report include:
- System-wide sales increased by 13.9% to $1.3 billion, with a significant boost from digital sales, which accounted for 72.2% of system-wide sales.
- Net new openings reached 129, marking the fourth consecutive quarter of over 100 net new units.
- Adjusted net income increased by 1.6% to $27.9 million, or $1.00 per diluted share, while adjusted EBITDA surged by 14.3% to $59.2 million.

Wingstop's strong unit economics and operational improvements have led to a 26% share price increase. The company raised its full-year unit growth outlook to 17.5%, maintaining its 1% US comparable restaurant sales growth expectation.

The company's President & Chief Executive Officer, Michael Skipworth, commented, "Our second quarter results showcase the strength of our unit economics and returns our brand partners are seeing for their businesses. Our momentum in development continued in the second quarter, opening 129 net new units, delivering 19.8% unit growth, which marked our fourth consecutive quarter of opening more than 100 net new units."

Wingstop's financial performance underscores its continued growth trajectory and commitment to expanding its brand. The company is well-positioned to capitalize on market opportunities and maintain its competitive edge in the restaurant industry.

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