Financial Data and Key Metrics Changes - System-wide sales increased by 13.9% to $1.3 billion, while same-store sales declined by 1.9% for the quarter [6][25] - Total revenue increased by 12% to $174.3 million compared to the prior year [26] - Adjusted EBITDA rose by 14.3% to $59.2 million, and adjusted EPS was $1 per diluted share, a 1.6% increase year-over-year [28] Business Line Data and Key Metrics Changes - Company-owned restaurant sales increased by $2.6 million due to same-store sales growth of 3.6% [26] - Cost of sales as a percentage of company-owned sales was 75.2%, a decline of 70 basis points [27] - The implementation of the Wingstop Smart Kitchen has led to a consistent average ticket time of ten minutes in company-owned restaurants [27][14] Market Data and Key Metrics Changes - The company opened 129 net new restaurants globally in the second quarter, marking a nearly 20% growth rate [7][20] - The international business is showing strong demand, with new restaurants in Sydney and Paris exceeding expectations [21][22] - The average unit volume (AUV) has surged over $2 million, with a target of reaching $3 million [24][19] Company Strategy and Development Direction - The company aims to scale brand awareness, drive menu innovation, expand delivery channels, and invest in digital transformation [7][19] - The focus remains on executing long-term strategies to become a top 10 global restaurant brand [22][31] - The company is set to pilot a new loyalty program in Q4 2025, with a full launch planned for 2026 [18][56] Management's Comments on Operating Environment and Future Outlook - Management acknowledged uncertainty in consumer behavior and spending habits but remains focused on controllable factors [8][20] - The company expects to return to positive same-store sales growth as the year progresses, particularly in Q4 [30][88] - Confidence in achieving the adjusted EBITDA growth rate exceeding 15% versus 2024 [31] Other Important Information - The company has increased its quarterly dividend from $0.27 to $0.30 per share, reflecting the strength of its business model [29] - The demand for new restaurant openings remains strong, with over 95% of new units opened by existing brand partners [20][24] Q&A Session Summary Question: Clarification on third quarter guidance and confidence in trends - Management noted some softness in consumer demand but expects to return to growth as comparisons ease in the latter part of Q3 [38][39] Question: Impact of Smart Kitchen on sales - Early results from the Smart Kitchen indicate improvements in speed and guest satisfaction, with significant benefits expected after four months of implementation [41][42] Question: Unit growth and franchisee demand - The company is encouraged by the pace of development and the strength of unit economics, with a record pipeline of sold commitments [50][52] Question: Reception of value deals and impact on average ticket - The 20 for 20 bundle performed well, leading to higher average checks and demonstrating the company's ability to showcase value without sacrificing margins [62] Question: Addressing consumer pressure and promotional strategies - Management emphasized the importance of value initiatives and flavor innovations to engage consumers and address price sensitivity [90][92]

Financial Data and Key Metrics Changes - In Q1 2025, system-wide sales increased by 15.7% to $1.3 billion, marking the highest sales recorded in a single quarter in the brand's history [33] - Revenue rose by 17.4% to $171 million compared to the prior year [34] - Adjusted EBITDA increased by 18.4% to $59.5 million, representing the largest first quarter on record [37] - Reported EPS for Q1 was $3.24, a more than 200% increase year-over-year [37] - Adjusted earnings per diluted share was $0.99, a 1% increase versus the prior year [38] Business Line Data and Key Metrics Changes - Same store sales growth was 0.5%, impacted by external factors such as California fires and severe winter weather [10] - Digital sales accounted for 72% of total sales, indicating a strong shift towards online transactions [11] - Company-owned restaurant sales increased by $1.5 million due to a 1.4% same store sales growth [35] Market Data and Key Metrics Changes - The company opened a record 126 new units in Q1 2025, contributing to a total of over 2,600 restaurants globally [11][28] - Average new restaurant volumes are projected to exceed $1.8 million, compared to $1.2 million three years ago [28] - The international business also performed well, with a new flagship location in Kuwait breaking records for weekly sales [29] Company Strategy and Development Direction - The company aims to scale average unit volumes (AUVs) to $3 million and expand to over 10,000 restaurants globally [11] - Strategies include enhancing brand awareness, menu innovation, expanding delivery channels, and leveraging data-driven marketing [11] - The rollout of the Wingstop Smart Kitchen is expected to improve service speed and consistency, with over 200 restaurants already equipped with the new system [22][23] Management's Comments on Operating Environment and Future Outlook - Management noted increased uncertainty in the consumer landscape but emphasized the brand's resilience and long-term strategies [6][9] - The company anticipates domestic same store sales growth of approximately 1% for fiscal year 2025, down from previous expectations of low to mid-single digits [40] - Management remains confident in the brand's health and strategies, expecting a return to growth in the second half of the year [50][62] Other Important Information - The company has a strong pipeline with over 2,000 restaurant commitments globally [28] - A dividend of $0.27 per share was approved, demonstrating confidence in the company's financial strength [39] - The company is set to pilot a loyalty program in Q4 2025, with a full launch planned for 2026 [27] Q&A Session Summary Question: Insights on the comp outlook for 2025 - Management acknowledged the challenges of comparing against strong prior year results and noted that the current environment feels like a near-term pullback rather than a broad-based issue [50] Question: Franchisee sentiments and growth focus - Conversations with franchisees are centered around unit growth rather than same store sales, reflecting confidence in the brand's long-term potential [55] Question: Impact of the Smart Kitchen on sales - Early results indicate positive sales trends in restaurants equipped with the Smart Kitchen, with a 5% increase in conversion rates observed in a recent test [60] Question: International expansion and market entry - Management highlighted strong performance in international markets and expressed confidence in future growth opportunities, particularly in India and China [68] Question: Differentiation of the new tenders product - The company sees the relaunch of tenders as a significant opportunity to attract new customers and drive repeat visits, similar to the success of the chicken sandwich [72]

Financial Data and Key Metrics Changes - In Q1 2025, system-wide sales increased by 15.7% to $1.3 billion, marking the highest sales recorded in a single quarter in the brand's history [31] - Revenue rose by 17.4% to $171 million compared to the prior year [32] - Adjusted EBITDA increased by 18.4% to $59.5 million, representing the largest first quarter on record [34] - Reported EPS for Q1 was $3.24 per diluted share, a more than 200% increase year-over-year [34] - Adjusted earnings per diluted share was $0.99, a 1% increase versus the prior year [35] Business Line Data and Key Metrics Changes - Digital sales accounted for 72% of total sales, indicating a strong shift towards online ordering [10] - Company-owned restaurant sales increased by $1.5 million in Q1 due to a same-store sales growth of 1.4% [32] - The company opened a record 126 new units in Q1, contributing to a total of over 2,600 restaurants [10][26] Market Data and Key Metrics Changes - The company reported a same-store sales growth of 0.5% in Q1, despite challenges from California fires and severe winter weather [8] - The international business showed strong performance, with a new flagship location in Kuwait achieving record weekly sales [27] Company Strategy and Development Direction - The company aims to scale average unit volumes (AUVs) to $3 million and expand to over 10,000 restaurants globally [10] - The introduction of the Wingstop Smart Kitchen is expected to enhance operational efficiency and customer experience, with a rollout in over 200 restaurants by the end of Q1 [21] - The company is focusing on brand awareness, menu innovation, and digital transformation as key strategies for growth [10][22] Management's Comments on Operating Environment and Future Outlook - Management noted that the current macro environment presents increased uncertainty, with consumer sentiment at its second lowest level since 1952 [6] - Despite challenges, management expressed confidence in the brand's resilience and long-term strategies, citing historical performance during similar economic conditions [7][29] - The outlook for 2025 includes a domestic same-store sales growth of approximately 1%, reflecting a more cautious approach due to macroeconomic conditions [37] Other Important Information - The company has a share repurchase authorization program of $500 million, with $250 million already repurchased [35][36] - A dividend of $0.27 per share was approved, demonstrating confidence in the company's financial health [36] Q&A Session Summary Question: Insights on the comp outlook for 2025 - Management acknowledged the challenges in forecasting due to macro headwinds and provided context on the expected trends for Q2 and the rest of the year [44][46] Question: Franchisee sentiments and growth focus - Conversations with franchisees are centered around unit growth rather than same-store sales, reflecting confidence in the brand's long-term potential [48][50] Question: Impact of the Smart Kitchen rollout - Early results from the Smart Kitchen indicate positive sales trends and improved guest satisfaction, although the benefits may take time to fully materialize [55][56] Question: International expansion and market entry - Management highlighted ongoing international growth, particularly in the GCC and Australia, while also expressing cautious optimism regarding future opportunities in China and India [64][66] Question: Addressing consumer pullback in specific demographics - The company is implementing targeted strategies to engage consumers in demographics that have shown a pullback, focusing on messaging and value [90][91]