10-Q · July 29, 2026
Wingstop delivered 6.4% Q2 revenue growth to $185.564 million and 16.9% net-income growth to $31.288 million, with GAAP EPS of $1.15 and operating margin expanding to 29.4%. Franchise-unit growth and lower wing costs…
Earnings analysis · 10-Q
WING earnings analysis
Filed October 28, 2026 · Our reading of the company's report
The latest report
Wingstop delivered 5.3% revenue growth and a 4.9% year-over-year increase in GAAP diluted EPS to $1.07, supported by 6.0% system-wide sales growth and 76 net openings. However, domestic same-store sales declined 5.4%,…
Read full summary
Wingstop delivered 5.3% revenue growth and a 4.9% year-over-year increase in GAAP diluted EPS to $1.07, supported by 6.0% system-wide sales growth and 76 net openings. However, domestic same-store sales declined 5.4%, company-owned restaurant costs increased, and operating margin contracted to 27.4% from 27.9% year over year and 29.4% sequentially. Operating cash flow improved materially, but cash declined to $141.2 million amid elevated capital spending, share repurchases, dividends, and continued leverage of $1.211 billion.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.07
- Segment
- One reportable segment: total revenue $185.1 million, including royalty revenue, franchise fees and other of $86.3 million, advertising fees of $64.1 million, and company-owned restaurant sales of $34.8 million.
What stood out
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Revenue grew 5.3% year over year
Third-quarter revenue increased 5.3% year over year to $185.1 million, led by 6.3% growth in royalty revenue, franchise fees and other revenue to $86.3 million. Revenue was modestly below the prior quarter’s $186.0 million.
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EPS beat prior year but fell sequentially
GAAP diluted EPS was $1.07 versus $1.02 in the prior-year quarter, a 4.9% increase, while adjusted diluted EPS was $1.08. GAAP EPS declined from $1.15 in the second quarter of 2026.
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Unit growth supported system sales
System-wide sales increased 6.0% to $1.437 billion and the system added 76 net restaurants during the quarter, reaching 3,331 locations versus 2,932 a year earlier.
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Operating profit grew despite margin pressure
Operating income increased 3.5% year over year to $50.7 million, and adjusted EBITDA increased 0.5% to $64.0 million. The operating margin was 27.4%, down from 27.9% in the prior-year quarter and 29.4% in the prior quarter.
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Operating cash flow strengthened
Operating cash flow increased to $129.6 million for the first 39 weeks of 2026 from $95.8 million in the comparable period. The improvement was primarily related to timing of payments and working-capital changes.
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Share repurchases continued
The company repurchased 565,012 shares at an average price of $182.10 during the first 39 weeks and had $288.4 million remaining under its repurchase authorization at September 26, 2026.
What to watch
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Persistent domestic sales weakness
Domestic same-store sales declined 5.4% in the quarter and 7.2% year to date, while domestic AUV fell to $1.848 million from $2.061 million in the prior-year period. Management said the quarterly decline reduced royalty revenue by $3.6 million.
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Restaurant cost inflation pressured margins
Company-owned restaurant cost of sales rose to 78.2% of sales from 74.8% a year earlier. Food, beverage and packaging costs increased to 36.9% of sales from 36.2%, while labor costs increased to 24.7% from 23.1%.
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Liquidity declined amid investment and returns
Cash, cash equivalents, and restricted cash declined to $141.2 million from $228.5 million at year-end 2025. The company used $79.5 million in investing activities and $137.3 million in financing activities during the first 39 weeks.
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High leverage and debt service burden
Long-term debt was $1.211 billion, while interest expense increased 14.9% year over year to $10.6 million in the quarter. The company suspended principal payments while maintaining a leverage ratio below 5.0x.
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Technology investment raised capex intensity
Capital expenditures were $47.5 million through the first 39 weeks, versus $24.6 million in the prior-year period, and depreciation and amortization increased 44.5% year over year to $9.0 million in the quarter due primarily to technology investments.
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Credit exposure in LPH investment
The company recorded a $5.5 million allowance for credit losses against its preference-share investment in LPH, whose carrying value was $91.5 million at September 26, 2026.
Management's outlook
The 10-Q provides no explicit numeric revenue or EPS guidance and does not state whether the previously updated 2026 outlook was raised, maintained, or lowered. Management expects operating cash flows and the securitized financing facility to cover capital expenditures, working capital, and debt service requirements for at least the next twelve months; cash, cash equivalents, and restricted cash were $141.2 million at September 26, 2026.
Earlier filings 4
10-Q · April 29, 2026
Wingstop reported Q1 2026 revenues of $183.7 million, up 7.4% year-over-year, but below estimates by 2.0%. Diluted EPS came in at $1.18, exceeding expectations by 15.7%. Despite growth in total revenue, net income fell…
10-K · February 18, 2026
Wingstop positions itself as the largest fast-casual wings-focused chain with scale (more than 3,050 locations) and an asset-light, ~98% franchised model that it says drives high margins and capital-efficient growth.…
10-Q · November 4, 2025
Wingstop reported a stronger quarter with revenue of $175.736M (up $13.238M or +8.2% vs. $162.498M a year ago) and diluted EPS of $1.02 (vs. $0.88 prior year). Operating income improved to $48.961M (up $9.143M, +23.0%)…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.