Sign in

    Wingstop Inc (WING)

    WING Q2 2025: Record 129 New Units, 17–18% Global Growth Guided

    Reported on Jul 31, 2025 (Before Market Open)
    Pre-Earnings Price$290.30Last close (Jul 29, 2025)
    Post-Earnings Price$371.00Open (Jul 30, 2025)
    Price Change
    $80.70(+27.80%)
    • Robust Unit Growth & Pipeline: The company delivered record new unit openings in Q2 2025 with 129 net new restaurants and a record development pipeline, driven by strong brand partner reinvestment and international expansion, positioning it to hit the 3,000-unit milestone soon.
    • Operational Efficiency via Smart Kitchen: The rollout of the Wingstop Smart Kitchen has led to significantly faster service with average ticket times reduced to around ten minutes, enhancing guest satisfaction and driving sales improvements—particularly in delivery and key dayparts.
    • Innovative Menu & Value Promotions: Successful promotions (e.g., 20 for 20 bundles) and menu innovations such as the improved tender offerings are boosting guest engagement, increasing average check sizes, and proving the strength of Wingstop’s value proposition in a price-sensitive environment.
    • Consumer Softness Concern: There is evidence of sustained soft demand in key consumer segments, particularly among lower-income Hispanic groups, which could continue to weigh on same store sales and overall comps in the near term.
    • Delayed Impact of Smart Kitchen: Although the new Smart Kitchen platform shows promise in reducing ticket times and improving consistency, its full benefits only materialize after a ramp-up period of around four months, potentially delaying near-term operational improvements.
    • Risks from Aggressive Unit Expansion: The record pace of unit growth raises concerns about execution and potential cannibalization, as rapid expansion into both established and new markets might outpace organic demand and strain quality controls.
    MetricPeriodPrevious GuidanceCurrent GuidanceChange

    Global Unit Growth Rate

    FY 2025

    16%-17%

    17%-18%

    raised

    Domestic Same Store Sales Growth

    FY 2025

    Approximately 1%

    Approximately 1%

    no change

    SG&A Expenses

    FY 2025

    $140 million

    $140,000,000

    no change

    Adjusted EBITDA Growth Rate

    FY 2025

    15%

    Exceed 15%

    raised

    Global Net New Units

    FY 2025

    no prior guidance

    435 to 460 global net new units

    no prior guidance

    TopicPrevious MentionsCurrent PeriodTrend

    Unit Growth

    Q1 2025 reported record unit openings (126 units, strong net new restaurant numbers ), Q4 2024 emphasized 349 net new restaurants and 15.8% growth , and Q3 2024 highlighted over 100 openings at a 17% growth rate.

    Q2 2025 achieved record-breaking results with 129 net new restaurants, increased guidance (17%-18%), and reiterated long-term growth targets.

    Consistently strong performance with upwardly revised guidance and record-breaking new openings.

    Expansion

    Q1 2025 noted entry into new markets (including Kuwait, GCC, and Australia ), Q4 2024 detailed international progress with 359 locations, UK and Canada initiatives , and Q3 2024 mentioned European and Gulf expansions.

    Q2 2025 expanded domestically across 46 states and internationally with launches in Sydney, Paris, plus planned entries in Italy and The Netherlands.

    Steady, broad-based expansion with an increasing global footprint.

    Franchisee Partner Reliance

    Q1 2025 stressed that franchisees were key drivers of growth with 95% of new openings , Q4 2024 reiterated franchisee reinvestment (95% reliance) and noted record pipeline achievements , while Q3 2024 confirmed similar reliance with diverse franchise partner growth.

    Q2 2025 continued the trend with over 95% of new openings coming from existing franchisee partners, underscoring strong unit economics and partner confidence.

    Consistent and reliable reliance on franchisee reinvestment across periods.

    Operational Efficiency & Technological Innovation

    Q1 2025 introduced the Smart Kitchen rollout with AI-driven enhancements, reduced ticket times, and integration through Wing ID ; Q4 2024 focused on an AI-enabled operating platform and MyWingstop digital initiatives ; Q3 2024 reported order efficiency improvements and digital sales growth.

    Q2 2025 showcased an accelerated Smart Kitchen rollout now live in 1,000 restaurants, delivering 40% reductions in ticket times; it also highlighted further integration with digital platforms and a new loyalty pilot.

    Evolving from early-stage technology implementation to advanced, integrated solutions that drive operational gains.

    Same-Store Sales Performance

    Q1 2025 reported modest 0.5% growth amid external challenges , Q4 2024 demonstrated robust growth (10.1% quarterly and strong two-year comps) , and Q3 2024 achieved 20.9% domestic growth.

    Q2 2025 experienced a 1.9% decline overall, though company-owned restaurants with Smart Kitchen saw 3.6% growth; guidance remains modest as lap effects continue.

    Transitioning from historically strong same-store performance to short-term volatility, with technology-enabled stores performing better.

    Consumer Demand Trends & Vulnerabilities

    Q1 2025 noted consumer pullback due to macro uncertainty and specific vulnerabilities among lower-income groups , Q4 2024 recorded record guest acquisition and a strong quality/value narrative , and Q3 2024 evidenced robust transaction growth with anticipation of deceleration.

    Q2 2025 identified softness in key segments, particularly among lower-income Hispanic consumers, and highlighted consumer concerns about elevated prices and job prospects.

    A shift toward increased cautious consumer sentiment, prompting targeted strategies to counteract vulnerabilities.

    International Expansion & Geopolitical Risks

    Q1 2025 highlighted strong international momentum (e.g., record openings in Kuwait and GCC markets) while noting caution in China due to geopolitical factors ; Q4 2024 emphasized acquisitions and growth in the UK and Canada ; and Q3 2024 projected aggressive expansion in Europe and Gulf regions.

    Q2 2025 continued international momentum with robust new launches in Sydney, Paris, and planned entries in Italy and The Netherlands, without specific discussion of geopolitical risks.

    Consistent international growth with geopolitical risks becoming less prominent in current discussions.

    Menu Innovation & Value Promotions

    Q1 2025 focused on the relaunch of crispy chicken tenders in 12 bold flavors as a key innovation to drive new demand ; Q4 2024 placed menu innovation within a long-term strategy to reach $3M AUV, emphasizing quality and value ; Q3 2024 mentioned disciplined pricing and quality/value scores with less focus on active promotions.

    Q2 2025 showcased a strong emphasis on menu innovation with the success of crispy chicken tenders, reactivation of lapsed users, and a well-received “20 for 20” value bundle promotion.

    Renewed focus on innovative menu items and strategic value promotions to drive customer reactivation and counter pricing sensitivity.

    Supply Chain Management, Cost Control & External Headwinds

    Q1 2025 stressed predictability in food costs and strong unit economics supported by efficient cost control ; Q4 2024 provided new visibility into mid-30% food cost targets, managed SG&A and interest expenses, and noted weather-related headwinds ; Q3 2024 discussed effective mitigation during inflation spikes and maintaining food costs in the mid-30% range.

    Q2 2025 maintained focus on supply chain efficiency with food costs around 34%, reduced cost of sales via Smart Kitchen support, and addressed external headwinds from consumer behavior and macro conditions.

    Ongoing rigorous cost control and supply chain management strategies continue to mitigate inflation and operational headwinds while preserving margins.

    1. Guidance Outlook
      Q: Will Q3 comps fully return to positive growth?
      A: Management explained that while early Q3 shows softness, easing compares should help return to positive comps later in the quarter, positioning a solid ~1% full‐year guidance as trends improve.

    2. Unit Growth
      Q: Will unit growth sustain the current pace?
      A: Management highlighted a record pipeline and strong brand partner reinvestment fueling a raised outlook of 17–18% global unit growth, demonstrated by rapid domestic and international expansion.

    3. Guidance Offset
      Q: What offset caused July’s weaker performance?
      A: Management noted consumer softness in some segments impacted July results, yet new unit additions and easing prior year compares help maintain guidance, expecting rebound in Q3 tail‐end.

    4. Value Promotions
      Q: How did value deals affect customer check sizes?
      A: Management reported that promotions, such as the 20-for-20 bundle, resonated well—driving higher average check sizes while keeping food cost in line with targets.

    5. Smart Kitchen Impact
      Q: Do Smart Kitchens boost delivery and efficiency?
      A: Management described that restaurants with the new Smart Kitchen see faster service, with mid‐single digit delivery growth and reduced ticket times improving overall efficiency.

    6. New Unit Openings
      Q: Are new restaurants concentrated in specific markets?
      A: Management clarified that recent openings were well diversified—spanning 46 states—with balanced geographic deployment, and Smart Kitchen helps unlock local demand.

    7. Labor Efficiency
      Q: Have tech improvements led to labor savings?
      A: Management noted that Smart Kitchen implementation improves operational processes, achieving labor cost leverage and efficiency benefits in company-owned stores.

    8. Customer Perception
      Q: When do customers notice the speed improvement?
      A: Management indicated that frequent or high-use visitors perceive benefits immediately, while overall noticeable improvements in service arise around the four-month mark.

    9. Menu Innovation
      Q: Will innovation accelerate with new product launches?
      A: Management shared that successful menu innovations like tenders and flavorful combos set the stage for ongoing product improvements, with plans to continue capitalizing on improved operational speed.

    10. Marketing Investment
      Q: Can rising ad spend further boost brand visibility?
      A: Management confirmed that an increased marketing fund is enhancing high-profile placements, especially in sports and digital platforms, which augments brand awareness and supports growth.