Wingstop Expects Domestic Same-Store Sales to Fall 6.5% to 7% in 2026 Despite Expansion
Key Facts
Wingstop updated its fiscal 2026 outlook to indicate a decline of about 6.5% to 7% in domestic same-store sales, alongside plans for net additions of 440 to 450 restaurants worldwide, according to its third-quarter results statement issued on October 28. The guidance reflects a divergence between the performance of existing restaurants and network expansion, as the company attributed the third-quarter decline in domestic same-store sales to fewer transactions and continued pressure on consumer spending. Sales fell 5.4% in the quarter ended September 26, 2026. Chief Executive Michael Skipworth said the company was not satisfied with the quarter's results and that improving sales performance "takes time." He added that the company is focused on improving marketing execution and restaurant operations and deepening its relationship with customers through the Club Wingstop program.
The decline in same-store sales followed a 7.5% drop in the second quarter of 2026, compared with a 1.9% decline in the second quarter of 2025. In the first quarter of 2026, domestic same-store sales fell 8.7%, after rising 0.5% in the corresponding period of 2025. The quarterly figures indicate that sales at existing restaurants continued to decline during the first three quarters of the year, while the company said fewer transactions and pressure on consumer spending affected third-quarter results. Average annual domestic restaurant sales were $1.848 million in the third quarter, compared with $2.061 million in the corresponding quarter of 2025. Digital sales accounted for 73.7% of system sales in the third quarter.
By contrast, the company opened 76 net restaurants during the quarter, ending it with a total of 3,331 restaurants worldwide, compared with 2,932 in the period ended September 27, 2025. Its 2026 guidance targets unit growth of 14.4% to 14.7%, alongside net global openings of 440 to 450 restaurants. This expansion follows a different trajectory from existing locations, where domestic same-store sales declined. In the second quarter, the company said the national launch of Club Wingstop and investments in value, flavor innovation and Smart Kitchen were among its strategic growth priorities. In the third quarter, Skipworth said the focus included marketing, operations and deepening customer relationships through the program.
Sales pressures also showed up in the cost of operating company-owned restaurants; cost of sales rose to 78.2% of its sales in the third quarter, compared with 74.8% in the corresponding quarter of 2025. The company attributed the increase mainly to higher food, beverage and packaging costs, and also cited higher rent, maintenance and wages at acquired restaurants. It also noted the effect of lower sales on fixed costs. Adjusted net income and adjusted diluted earnings per share fell 3.5% to $29.3 million and $1.08 per share, respectively. By contrast, adjusted earnings before interest, taxes, depreciation and amortization rose 0.5% from the third quarter of 2025 to $64.0 million.
Net income under generally accepted accounting principles rose 2.2% to $29.1 million, or $1.07 per diluted share, according to the company's statement. Wingstop forecast selling, general and administrative expenses of between $138 million and $140 million in 2026; the guidance includes $3 million in restructuring charges related to the company's reorganization. These expenses are part of the financial outlook for a year in which the company expects domestic same-store sales to decline, despite plans to continue adding new restaurants. The company repurchased and retired 190,688 shares during the third quarter at an average price of $131.12 per share. A further $288.4 million remained available under the repurchase program on September 26, 2026.
The board approved a quarterly cash dividend of $0.33 per share on October 27, totaling about $9.0 million. The dividend will be paid on December 4 to shareholders of record on November 13, 2026. Wingstop shares closed at $123.52 on October 27, according to EL7 data. The third fiscal quarter ended on September 26, ahead of the results announcement the following day, October 28. The company's annual guidance combines continued pressure on domestic same-store sales with an expansion plan targeting unit growth of 14.4% to 14.7%.