Wingstop Inc. Reports Fiscal Second Quarter Financial Results

Core Insights - Wingstop Inc. reported strong financial results for the fiscal second quarter of 2025, showcasing significant growth in unit openings and sales metrics [1][2][3] Financial Performance - Total revenue increased to $174.3 million, up from $155.7 million in the prior year, representing a 12.0% growth [5][7] - System-wide sales rose by 13.9% to $1.34 billion, driven by new restaurant openings and increased sales [7][16] - Net income decreased by 2.6% to $26.8 million, with adjusted net income increasing by 1.6% to $27.9 million [7][29] - Adjusted EBITDA grew by 14.3% to $59.2 million, reflecting improved operational efficiency [7][34] Operational Highlights - The company opened 129 net new restaurants, achieving a 19.8% growth in units, marking the fourth consecutive quarter of over 100 net openings [3][11] - The total number of system-wide restaurants reached 2,818, with 2,357 domestic franchise locations and 407 international franchise locations [4][11] - Domestic average unit volume (AUV) increased to $2.1 million, while domestic same-store sales decreased by 1.9% [4][7] Cost Management - Cost of sales was $24.4 million, with a decrease in the cost of sales as a percentage of company-owned restaurant sales to 75.2% from 75.9% [6][31] - Selling, general & administrative expenses rose to $32.9 million, primarily due to increased headcount and system implementation costs [8][29] Dividend Announcement - The board of directors approved an increase in the quarterly dividend from $0.27 to $0.30 per share, totaling approximately $8.4 million to be paid on September 5, 2025 [12]