Wingstop Inc. Q4 FY2025 earnings call

• In 2025, Wingstop surpassed 3,000 restaurants and launched six new international markets, showing the resiliency of its asset - light, highly franchised model. - The Wingstop Smart Kitchen was fully deployed in all domestic restaurants by the end of 2025, and focus shifted to execution with new operating standards. Early proof points showed improved customer frequency and increased transactions at lunch daypart. - Launched a successful pilot of Club Wingstop, with nearly 50% of active guests in the pilot market enrolling, frequency increased 7% among program guests, and new guest retention rates were higher. - Opened 493 restaurants globally in 2025, with system - wide sales growing to over $5 billion. Expanded into six new international markets and opened over 100 restaurants outside the U.S. in 2025. - Reinstated the Chief Operating Officer role with Raj Kapoor, optimized leadership team to streamline decision - making and position for growth. Formed commercial team and analytics center of excellence.

In 2025, system - wide sales grew by 12% despite a 3% decline in same - store sales. Adjusted EBITDA grew by 15%. Corporate restaurants had AUVs approaching $2.5 million with margins in the mid - 20% range. Brand partners had approximately 2,300 restaurant commitments. Domestic same - store sales declined by 5.8% in Q4. Company - owned same - store sales increased by 1.6% in Q4. System - wide sales in Q4 were $1.3 billion, an approximately 9.3% increase versus 2024. Royalty revenue, franchise fees and other revenue increased by 8% in Q4 to $81.9 million. Company - owned cost of sales in Q4 was 75.6%, an improvement of 200 basis points versus 2024. SG&A increased by $2.1 million versus the prior year comparable period to $33.3 million in Q4 2025. Adjusted EBITDA in Q4 increased by approximately 10% versus 2024 to $61.9 million. Adjusted earnings per diluted share were $1, an increase of 5% this quarter versus 2024.

2026 outlook for domestic same - store sales is flat to low single - digit percent growth. Global unit growth is anticipated to be between 15% and 16%. SG&A guidance is between $151 million and $154 million, including approximately $32 million of stock - based compensation expense and $3 million of restructuring charges. Adjusted EBITDA growth rate is expected to be approximately 15% in 2026.

Q: David Tarantino with Baird asked about guidance for comps to turn positive this year, including if seeing signs of improvement in Q1 and confidence in the turn despite macro cross currents.

A: Michael Skipworth said trends stabilized into 2026, but winter storms impacted, anticipated sequential improvement through the year.

Q: Christopher O'Cull with Stifel asked what percentage of the system is achieving 10 - minute ticket time consistently and initiatives/training needed.

A: Michael Skipworth said roughly 50% of restaurants are hitting 10 minutes, using operation scorecard and brand partners' incentive comp programs, seeing a 10 percentage point improvement from start of 2026.

Q: Christopher O'Cull asked why delivery times aren't seeing same progress as back - of - house speed.

A: Alex Kaleida said working with third - party delivery providers, algorithms taking time, working on driver performance, seeing step down of about 15% delivery times.

Q: Jeffrey Bernstein with Barclays asked about long - term guidance and framework.

A: Michael Skipworth said focused on execution of Smart Kitchen and loyalty program launch to drive return to growth.

Q: Christine Cho with Goldman Sachs asked about impact of Smart Kitchen on staff and labor productivity, and performance of new advertising campaign.

A: Michael Skipworth said corporate - owned restaurants had low turnover, positive engagement with Smart Kitchen; new ad campaign has highest brand recall, digital database grew 20% in 2025, seeing growth in new demos.

Q: Brian Harbour with Morgan Stanley asked about leadership changes and third - party delivery platforms.

A: Michael Skipworth said leadership changes to position for growth; focused on partnerships with third - party delivery providers, using Smart Kitchen visibility.

Q: Zachary Fadem with Wells Fargo asked about value, deceleration of 20 for 20 deal, and cannibalization.

A: Michael Skipworth said focus on total guest experience, some opportunity to showcase value; Alex Kaleida said cannibalization data showed 40 basis points more than prior years, 90% impact from brand partners' strategic decisions.

Q: Sara Senatore with Bank of America asked about comp gap between franchisees and company, and loyalty program impact.

A: Michael Skipworth said encouraged by progress in system, loyalty pilot showed 50% active guests enrolled, frequency increase and higher new guest retention; Alex Kaleida said no material accounting headwind, program is margin accretive.

Q: Jon Tower with Citi asked about loyalty accounting and impact on mix from Smart Kitchen.

A: Alex Kaleida said no material accounting headwind; Michael Skipworth said no significant impact on mix from Smart Kitchen on lunch.

Q: Gregory Francfort with Guggenheim Securities asked about international unit growth and business performance.

A: Michael Skipworth said international business has strong unit growth, average unit volumes in new markets above U.S., excited about India entry.

Q: Danilo Gargiulo with Bernstein asked about Super Bowl customer acquisition and advertising strategy for World Cup.

A: Michael Skipworth said Super Bowl was record day, saw over 100,000 new customers, but advertising strategy focused on broadening top of funnel; Alex Kaleida said partnering with third - party aggregators on advertising.

Q: Andy Barish with Jefferies asked about international strategy and India partner.

A: Michael Skipworth said refined international market entry playbook, excited about India entry with known partner.

Q: Peter Saleh with BTIG asked about Smart Kitchen and loyalty program launch, and communicating faster speed of service.

A: Michael Skipworth said confident in achieving consistent 10 - minute speed of service for loyalty launch; Alex Kaleida said it's a bit of both, organic change in guest engagement and showcasing menu items to communicate speed.