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]