Wingstop posts strong Q1 2025 results with revenue rising to US$171.1M

USA – Wingstop has reported a robust performance for the first quarter of fiscal year 2025, with total revenue climbing to US$171.1 million, up from US$145.8 million in the same period last year.

Wingstop reported strong growth in Q1 2025, with revenue rising 17.4% year over year, driven by a 15.7% increase in system-wide sales and continued store expansion.

While domestic same-store sales grew modestly by 0.5%, overall system-wide sales hit a record US$1.3 billion, underpinned by strategic initiatives like the rollout of Wingstop Smart Kitchen technology in over 200 locations.

This technology contributed to improved efficiency and reduced kitchen quote times.

Despite a temporary softening in certain consumer segments, Wingstop’s digital and delivery channels continued to perform well, highlighting the brand’s resilience.

The company’s net income surged 221% to US$92.3 million, equating to US$ 3.24 per diluted share. On an adjusted basis, net income reached US$28.3 million or US$0.99 per diluted share, while adjusted EBITDA rose 18.4% to US$ 59.5 million.

Franchise revenue streams also showed notable gains, with royalty, franchise fees, and other revenue rising by US$11.7 million.

Of this, US$10 million was attributed to net new franchise development, while US$0.3 million came from the modest increase in domestic same-store sales.

Company-owned restaurant sales rose by US$1.5 million, driven by a 1.4% growth in same-store sales, largely due to higher transaction volumes. This increase also included sales from new and recently acquired company-owned locations since Q1 2024.

However, the cost of sales increased to US$22.8 million from US$21.3 million.

As a percentage of company-owned restaurant sales, this rose to 76% from 74.5%, largely due to higher bone-in chicken wing costs. These were partially offset by sales leverage across other operating expenses.

As of 29 March 2025, Wingstop operated 2,689 restaurants globally.

This included 2,301 locations in the US—2,250 franchised and 51 company-owned—and 388 franchised outlets in international markets, including US territories. The quarter also saw the addition of 126 net new restaurants system-wide.

President and CEO Michael Skipworth noted that the Q1 results reflect the resilience of Wingstop’s strategy despite ongoing macroeconomic challenges.

He highlighted that strong brand partner performance and industry-leading returns are driving record-setting development, positioning the brand firmly on its trajectory to become a top 10 global restaurant chain.

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