Wingstop Q2 revenue rises on new franchise openings 

Overview

• U.S. chicken wing chain's fiscal Q2 revenue rose 6.4% yr/yr

• Adjusted EPS for fiscal Q2 increased 18% yr/yr

• Domestic same store sales fell 7.5%, reflecting lower transaction volumes and consumer spending pressure

Outlook

• Wingstop expects 2026 domestic same store sales to decline 4% to 6%

• Company reiterates 2026 global unit growth rate of 15% to 16%

• Wingstop sees 2026 SGA expense between $140 mln and $143 mln, including $3 mln restructuring charges

Result Drivers

• NEW UNIT OPENINGS - Revenue growth was primarily driven by net new franchise development, with 102 net new openings in the quarter

• SAME STORE SALES DECLINE - Domestic same store sales fell 7.5% due to lower transaction volumes and continued pressure on consumer spending

• LOWER FOOD COSTS - Cost of sales as a percentage of company-owned restaurant sales decreased, mainly due to a decline in the cost of bone-in chicken wings

Company press release: ID:nPn8LJ5hDa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 24 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the restaurants bars peer group is "buy"

• Wall Street's median 12-month price target for Wingstop Inc is $229.00, about 69.8% above its July 28 closing price of $134.87

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 31 three months ago

Reuters Recommended Reads

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• July 27 - UK's Tortilla Mexican Grill FY25 revenue rises 8.5%

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)