Financial Data and Key Metrics Changes - In Q4 2025, system-wide sales increased to $1.3 billion, approximately 9.3% compared to 2024, driven primarily by 124 net new restaurants, despite a decline of 5.8% in domestic same-store sales [28][29] - Adjusted EBITDA in Q4 increased approximately 10% versus 2024 to $61.9 million, highlighting the durability of the company's model [32] - The company-owned same-store sales increased 1.6% in Q4, showcasing the performance of corporate restaurants compared to the broader system [30] Business Line Data and Key Metrics Changes - The company opened 493 restaurants globally in 2025, a significant achievement against the long-term opportunity of 10,000 restaurants [20] - Royalty revenue, franchise fees, and other revenue increased by 8% year-over-year to a total of $81.9 million [29] - Company cost of sales in Q4 were 75.6%, an improvement of 200 basis points versus 2024, benefiting from lower wing costs [31] Market Data and Key Metrics Changes - The company expanded into six new international markets and opened more than 100 restaurants outside the U.S. in 2025, marking a significant milestone for the brand [22] - The company anticipates global unit growth to be between 15% and 16% in 2026, driven by broad-based demand across its brand partner base [36] Company Strategy and Development Direction - The company aims to scale to over 10,000 restaurants globally, with a focus on unit economics and brand partner profitability [5][7] - The rollout of the Wingstop Smart Kitchen is central to the strategy, enhancing speed and consistency in service [9][10] - The company is launching a loyalty program, Club Wingstop, to deepen engagement and enhance customer retention [18][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current operating environment remains challenging, with continued pressure on core consumers, but expresses confidence in returning to same-store sales growth in 2026 [35] - The company is focused on executing strategies that will lead to improved performance, including the national launch of the loyalty program and enhanced marketing efforts [35][36] - Management highlights the importance of operational consistency and accountability as critical components for future growth [26] Other Important Information - The company returned over $250 million of capital to shareholders in 2025 through dividends and share repurchases [33] - The board of directors declared a quarterly dividend of $0.30 per share, totaling approximately $8.3 million [34] Q&A Session All Questions and Answers Question: Are there signs of improvement in the first quarter relative to the fourth quarter? - Management noted that trends have stabilized and they anticipate sequential improvement as they progress through the year, despite some impact from winter storms [42] Question: What percentage of the system is achieving the 10-minute ticket time consistently? - Approximately 50% of the restaurants are hitting the 10-minute service time, with ongoing initiatives to improve this further [48] Question: What indicators would lead to a downward adjustment of long-term guidance? - Management emphasized focusing on execution and the upcoming loyalty program launch as key factors that will drive business growth [55] Question: How is the Smart Kitchen impacting staff and labor productivity? - The new kitchen operating platform has led to lower turnover rates and improved staff engagement, making it easier for team members to perform their roles [61] Question: What is the strategy regarding value offerings in 2026? - Management indicated a focus on delivering a total guest experience that includes quality, speed, and price, with potential targeted value offerings for specific dayparts [75]