Wingstop shares fell the most in six months in premarket trading after the company cut its full-year outlook and reported weaker-than-expected first-quarter sales, citing a pullback in traffic as management pointed to “continued pressure on consumer spending.”
The chicken chain, with 2,653 locations across the US, now expects 2026 domestic same-store sales to decline at a low single-digit rate, down from its prior forecast of flat to low single-digit growth. Analysts tracked by Bloomberg forecast a .4% contraction this year, after lowering their forecast from about 1.3% in mid-February when Wingstop last reported earnings.
First-quarter domestic same-store sales fell 8.7%, exceeding the 5.4% decline expected by analysts. Adjusted EPS of $1.18 topped estimates, helped by lower-than-expected costs, including chicken wing costs.
Here’s a snapshot of first-quarter results (courtesy of Bloomberg):
Total domestic stores comp sales growth -8.7%, estimate -5.43% (Bloomberg Consensus)
Adjusted EPS $1.18 vs. 99c y/y, estimate $1.03
Revenue $183.7 million, +7.4% y/y, estimate $188.4 million
Adjusted Ebitda $65.4 million, +9.9% y/y, estimate $63.4 million
Total location count 3,153, +3.2% q/q, estimate 3,154
- Domestic franchise restaurants 2,596, +15% y/y, estimate 2,599
- International franchise restaurants 500, +29% y/y, estimate 497
Cost of sales $24.7 million, +8.2% y/y, estimate $26.1 millions
SG&A expense $34.4 million, +9.6% y/y, estimate $35.7 million
Net addition of stores 97, -23% y/y, estimate 90
Important to note: Wingstop’s core customer base appears to skew younger, making it highly exposed to lower-income consumer pressures, such as the national average gasoline price topping $4 per gallon.
Wingstop bust-cycle…
We have highlighted what has happened in convenience stores and gas stations when gas topped the politically sensitive line of $4 last month.
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Perhaps Wingstop needs to run promotions or offer ‘BNPL’ loans for their chicken orders to bring back younger customers.
