Wingstop Posts Record Net Restaurant Openings and Highest-Ever Adjusted EBITDA in Q3 2025
Strong Expansion Powers Record Unit Growth, Even as Same Store Sales Dip
Wingstop’s latest financial results reveal a business moving full-throttle on growth—even as it navigates short-term pressures in its mature U.S. locations. The company opened a record 114 net new restaurants in the third quarter of 2025, marking a 19.3% increase in net new units versus last year. At the same time, Wingstop reported its highest-ever quarterly Adjusted EBITDA at $63.66 million, up 18.6% from Q3 2024. These results showcase the company’s confidence in scaling globally and optimizing its franchise-driven business model.
Key Performance Metrics Reflect Growth and Margin Discipline
| Metric | Q3 2025 | Q3 2024 | % Change |
|---|---|---|---|
| System-wide Sales (in millions) | $1,356 | $1,233 | 10.0% |
| Net Restaurant Openings | 114 | 108 | +5.6% |
| Total Revenue (in millions) | $175.7 | $162.5 | 8.1% |
| Adjusted EBITDA (in millions) | $63.66 | $53.67 | 18.6% |
| Adjusted Net Income (in millions) | $30.39 | $26.29 | 15.6% |
| Digital Sales % of Total | 72.8% | Not provided | N/A |
Margin Performance Supported by Lower Food Costs
Margin management was a notable win this quarter. Cost of sales as a percentage of company-owned restaurant sales improved to 74.8%, down from 77.8% last year. The decline was primarily driven by lower bone-in chicken wing costs and operational leverage. Even with company-owned restaurant same store sales growing by 3.8%, domestic same store sales overall fell 5.6%, signaling mixed consumer traffic trends but a healthy margin environment due to commodity tailwinds.
| Cost Category | Q3 2025 (% of Company Sales) |
Q3 2024 (% of Company Sales) |
|---|---|---|
| Food, Beverage, Packaging | 36.2% | 37.0% |
| Labor | 23.1% | 23.5% |
| Other Operating Expenses | 17.9% | 20.0% |
| Vendor Rebates | -2.4% | -2.7% |
Cash Generation and Shareholder Returns Remain Robust
Strong cash flows supported continued shareholder returns. Wingstop paid a $0.30 per share dividend in Q3 (totaling $8.3 million) and repurchased 140,103 shares at an average price of $285.26. Since launching its repurchase program in 2023, the company has retired over 2.3 million shares. Management has $151.3 million left under its current buyback authorization, demonstrating a sustained commitment to returning capital.
Guidance: Expansion to Continue Despite Moderating Same Store Sales
Looking ahead, Wingstop expects global net new unit openings between 475 and 485 in 2025, supporting robust franchise momentum. However, domestic same store sales are projected to decline by 3-4%, a downward revision from previous guidance. The company plans for SG&A of $131–132 million, including one-time system costs, and net interest expense of $37.5 million.
Key Takeaway: Global Growth and Digital Engagement Outweigh Short-Term U.S. Headwinds
Despite facing headwinds in domestic same store sales, Wingstop’s Q3 results show the company executing strongly on growth, franchise development, and digital transformation. With record unit expansion, margin improvements, and significant digital sales penetration (now at 72.8%), Wingstop is reinforcing its positioning as a fast-growing, tech-enabled restaurant brand on the global stage. For investors, the numbers underscore the value of scale and a robust, asset-light business model—even if near-term comps in the U.S. show moderation. Watch for ongoing digital adoption and international expansion as levers to offset slower same store sales in legacy markets.
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