"The quarter showcased Wingstop's ability to grow revenue and profitability despite a significant headwind in domestic same-store sales. Revenue growth was driven by aggressive unit expansion-124 net new restaurants opened in Q4 alone-which pushed the total system to 3,056 locations. Royalty revenue, franchise fees, and advertising income collectively rose to $143.30 million, while company-owned restaurant sales contributed $32.40 million. Operating margin expansion reflected improved cost efficiency."
"The most striking development was the 5.8% decline in domestic same-store sales, a sharp reversal from the 10.1% growth posted in Q4 2024. This 15.9 percentage point swing signals weakening consumer traffic at existing locations, likely reflecting broader quick-service restaurant sector headwinds and intensifying competition. For the full year, domestic SSS declined 3.3%, and average unit volumes fell from $2,138,000 to $2,000,000. This deterioration raises questions about franchisee unit economics, though management's guidance for flat to low-single digit domestic SSS growth in"
Adjusted EPS was $1.00, beating the $0.84 consensus by 19%. Q4 revenue rose 8.6% to $175.69 million and operating income increased 11.94% to $46.84 million. Aggressive unit expansion added 124 net new restaurants in Q4, bringing the system to 3,056 locations, and drove higher royalty, franchise fee, and advertising revenue of $143.30 million alongside $32.40 million in company-owned restaurant sales. Cost of sales improved to 75.6% of company-owned sales from 77.6%, aided by lower bone-in wing costs and expanding operating margins. Domestic same-store sales fell 5.8% (down 3.3% full-year) and average unit volumes declined to $2.0 million, prompting franchisee economics concerns. Shares jumped 17.3% to $294.44 after the pre-market release.
Read at 24/7 Wall St.
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