Financial Data and Key Metrics Changes - System-wide sales grew by 13%, exceeding $5 billion on a trailing 12-month basis [5] - Total revenue increased by 8.1% to $175.7 million compared to the prior year [23] - Adjusted EBITDA reached $63.6 million in Q3, marking a 19% year-over-year increase [25] - Adjusted earnings per diluted share rose by 15.6% to $1.09 [25] - Domestic average unit volumes (AUVs) are now at $2.1 million, with cash-on-cash returns exceeding 70% [23] Business Line Data and Key Metrics Changes - The company opened 369 net new restaurants in the first three quarters of 2025, achieving a 19% unit growth rate [5][22] - Company-owned restaurants delivered same-store sales growth of 3.8%, outperforming the broader system [23] - The new kitchen operating platform, Wingstop Smart Kitchen, is live in over 2,000 restaurants, showing a 50% reduction in service speed [9] Market Data and Key Metrics Changes - Same-store sales declined by 5.6% in Q3, attributed to broader industry trends affecting various consumer demographics [7][23] - The company is experiencing record demand for new development, with over 70 unique brand partners opening restaurants in more than 100 different markets [16] Company Strategy and Development Direction - The company aims to expand to over 10,000 restaurants globally, with a mid-teens unit growth rate expected for 2026 [17][29] - Strategic investments include the rollout of the Wingstop Smart Kitchen, a new marketing campaign, and the launch of a loyalty program named Club Wingstop [10][13][15] - The marketing campaign targets a broader consumer base, aiming to increase brand awareness and consideration from 2% to 20% in the core demand space [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledges near-term challenges but remains confident in the brand's fundamentals and long-term growth strategies [7][27] - The company expects to return to same-store sales growth in 2026, supported by the new kitchen platform and loyalty program [27][36] - Management emphasizes the importance of protecting unit economics while navigating the current consumer environment [50][63] Other Important Information - The company has raised nearly $3.5 million for St. Jude Children's Research Hospital as part of its community engagement efforts [18] - A quarterly dividend of 30 cents per share will be paid on December 12, 2025, reflecting the company's strong pre-capex position [26] Q&A Session Summary Question: Comp outlook for Q4 - Management acknowledges near-term choppiness but sees stabilization in trends as Q4 progresses [32] Question: Path to positive comps in 2026 - Management cites the impact of the Smart Kitchen rollout, loyalty program, and new advertising campaign as key drivers for returning to positive comps [34][36] Question: Incrementality of Smart Kitchen - Management believes the new operating standard will enhance guest satisfaction and drive sales as more restaurants adopt the Smart Kitchen [39] Question: Cannibalization impact - Cannibalization has been minimal, typically around 1% in comps, with recent openings performing well above system averages [42][44] Question: Value proposition and promotions - Management focuses on maintaining strong unit economics and does not feel pressured to engage in heavy discounting [50] Question: Awareness and brand health - There remains a significant gap in brand awareness compared to larger QSR brands, presenting an opportunity for growth [73] Question: New ad campaign testing - Early feedback on the new campaign has been positive, indicating it resonates well with consumers [77] Question: Expansion in India - The company has finalized an agreement for expansion in India, targeting over 1,000 restaurants with a proven operator [78]

Financial Data and Key Metrics Changes - System-wide sales grew by 13%, exceeding $5 billion on a trailing 12-month basis [5] - Total revenue increased by 8.1% to $175.7 million compared to the prior year [24] - Adjusted EBITDA reached $63.6 million in Q3, marking a 19% year-over-year increase and the highest single quarter on record [26] - Adjusted earnings per diluted share rose by 15.6% to $1.09, despite a 24% impact from additional interest expense [26] Business Line Data and Key Metrics Changes - Domestic same-store sales declined by 5.6% in Q3, following two years of strong growth [7][24] - Company-owned restaurants outperformed the broader system with same-store sales growth of 3.8% [25] - Domestic average unit volumes (AUVs) reached $2.1 million, with industry-leading unlevered cash-on-cash returns exceeding 70% [24] Market Data and Key Metrics Changes - The company opened 369 net new restaurants in the first three quarters of 2025, achieving a 19% unit growth rate [5][24] - The Southwest region, which has the highest concentration of the new kitchen operating platform, showed mid-single-digit same-store sales growth compared to the U.S. average [9] Company Strategy and Development Direction - The company aims to expand to over 10,000 restaurants globally, with a focus on executing a national rollout of the new kitchen operating platform [5][19] - A new marketing campaign is designed to increase brand awareness and attract new customers, targeting a demand space where the company currently captures only 2% [11][12] - The launch of a loyalty program, Club Wingstop, is expected to enhance customer engagement and drive sales [13][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a temporary decline in same-store sales due to broader industry trends but expressed confidence in the brand's fundamentals and strategies [7][28] - The company expects to return to same-store sales growth in 2026, supported by the new kitchen operating platform and marketing initiatives [28][39] - Management highlighted the strong demand from brand partners for new restaurant openings, indicating confidence in the unit economic model [24][29] Other Important Information - The company has raised nearly $3.5 million for St. Jude Children's Research Hospital as part of its community engagement efforts [18] - SG&A expenses decreased by $1.6 million to $30.7 million, reflecting lower headcount-related expenses [26] Q&A Session Summary Question: What is the outlook for same-store sales in Q4? - Management acknowledged near-term choppiness but noted stabilization in trends as they entered Q4, with a focus on long-term investments [34][35] Question: What are the key drivers for returning to positive same-store sales in 2026? - Management cited the impact of the Smart Kitchen rollout, the upcoming loyalty program, and a new advertising campaign as catalysts for growth [36][39] Question: How is the Smart Kitchen performing in terms of sales? - The Southwest region, with the highest concentration of Smart Kitchen, is seeing positive comps and improved guest satisfaction scores [41][43] Question: What is the cannibalization impact from new restaurant openings? - Cannibalization has been around 1% in comps, with recent openings in new markets affecting performance due to high initial sales [46][47] Question: How does the company plan to emphasize value in the current environment? - Management stated that the company does not need to rely heavily on promotions, focusing instead on protecting unit economics and long-term strategies [53][55] Question: What is the strategy for the new advertising campaign? - The campaign aims to showcase how Wingstop fits into everyday life moments, targeting a broader audience to increase brand awareness [60][62]

Financial Data and Key Metrics Changes - System-wide sales grew by 13%, exceeding $5 billion on a trailing 12-month basis [4] - Total revenue increased by 8.1% to $175.7 million compared to the prior year [20] - Adjusted EBITDA reached $63.6 million in Q3, marking a 19% year-over-year increase and the highest single quarter on record [23] - Adjusted earnings per diluted share increased by 15.6% to $1.09 [23] Business Line Data and Key Metrics Changes - Domestic same-store sales declined by 5.6% in Q3, following two years of strong growth [5][20] - Company-owned restaurants delivered same-store sales growth of 3.8%, outperforming the broader system [20][21] - Domestic average unit volumes (AUVs) are now at $2.1 million, with cash-on-cash returns exceeding 70% [20] Market Data and Key Metrics Changes - The company opened 369 net new restaurants in the first three quarters of 2025, achieving a 19% unit growth rate [4][19] - The development pipeline remains at a record level, indicating strong demand from brand partners [16] - International expansion includes openings in several countries, with a significant opportunity in India for over 1,000 restaurants [15][59] Company Strategy and Development Direction - The company aims to scale towards over 10,000 Wingstop restaurants globally [4][14] - Key strategic investments include the new kitchen operating platform, a marketing campaign targeting new guests, and the launch of a loyalty program [9][12][25] - The company is focused on maintaining industry-leading unit economics while expanding its footprint [17][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a temporary decline in same-store sales due to broader industry trends but remains confident in the brand's fundamentals [5][25] - The company expects to return to same-store sales growth in 2026, supported by strategic initiatives [25][33] - Management highlighted the importance of operationalizing the new kitchen platform and launching the loyalty program to drive future growth [51][53] Other Important Information - The company has raised nearly $3.5 million for St. Jude Children's Research Hospital through its partnership [16] - A quarterly dividend of 30 cents per share will be paid on December 12, 2025, totaling approximately $8.3 million [24] Q&A Session Summary Question: What is the outlook for Q4 same-store sales? - Management acknowledged near-term choppiness but noted stabilization in trends as they entered Q4, with growth in key segments like dinner [30][31] Question: What are the key drivers for returning to positive comps in 2026? - Management cited the rollout of the Smart Kitchen, the loyalty program, and a new advertising campaign as catalysts for growth [32][33] Question: How long will it take to see benefits from the Smart Kitchen across franchise stores? - Management indicated that as more restaurants implement the Smart Kitchen, improvements in guest satisfaction and sales are expected to follow [35][36] Question: What is the impact of cannibalization on new restaurant openings? - Management noted that cannibalization has typically been around 1% and is more pronounced in high-volume areas [38] Question: How does the company plan to emphasize value in the current environment? - Management stated that the company does not feel pressured to discount due to strong unit economics and is focused on long-term strategies [43] Question: What is the significance of the new ad campaign? - Management expressed confidence in the campaign's ability to resonate with consumers and drive brand awareness [58]