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 [7][25] - Total revenue increased by 12% to $174.3 million compared to the prior year [25] - 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 [27] 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% [25] - Cost of sales as a percentage of company-owned sales was 75.2%, a decline of 70 basis points [26] - The implementation of the Wingstop Smart Kitchen has led to a consistent average ticket time of ten minutes [26][15] Market Data and Key Metrics Changes - The company opened 129 net new restaurants globally in the second quarter, marking a nearly 20% growth rate [9][20] - The international business is showing strong demand, with new restaurants in Sydney and Paris exceeding expectations [21][22] Company Strategy and Development Direction - The company aims to scale brand awareness, drive menu innovation, expand delivery channels, and invest in digital transformation [9][19] - The long-term target is to achieve average unit volumes (AUVs) of $3 million, supported by the success of the Wingstop Smart Kitchen [17][19] - The company has updated its guidance for unit growth to 17% to 18% for 2025, reflecting strong demand from brand partners [20][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged uncertainty in consumer behavior and spending habits but remains focused on executing strategies [10][22] - The company expects to return to positive same-store sales growth as the year progresses, particularly in the latter half of the third quarter [38][86] - Management expressed confidence in the long-term strategies and the potential of the Wingstop Smart Kitchen to enhance operational efficiency [41][43] 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 [28] - The digital database has grown by 30%, now approaching 60 million, which will support the upcoming loyalty program [18][56] Q&A Session Summary Question: Clarification on third quarter guidance - Management noted some softness in consumer demand but expects to return to growth as comparisons ease in the latter half of the third quarter [36][38] Question: Impact of Smart Kitchen on sales - Early results from the Smart Kitchen indicate improvements in speed and guest satisfaction, with sales outperformance noted in the Dallas Fort Worth market [41][43] Question: Unit growth and franchisee demand - The company is encouraged by the pace of development and the record level of sold commitments, indicating strong franchisee demand [46][50] Question: Details on the loyalty program - The loyalty program is designed to create an emotional connection with guests, leveraging insights from the growing digital database [56][57] Question: Impact of value deals on customer behavior - The 20 for 20 bundle performed well, leading to higher average checks and demonstrating the company's ability to offer value without sacrificing margins [62][63] Question: Changes in delivery mix with Smart Kitchen - Restaurants with Smart Kitchen are seeing mid-single-digit growth in delivery sales, indicating improved performance [69] Question: Future unit growth normalization - Management is focused on disciplined and sustainable growth, with a strong pipeline of sold commitments supporting future expansion [98][100]

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]