Wingstop Inc.
For the period ended Jun 27, 2026. Filed Jul 29, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 27, 2026 · Filed Jul 29, 2026
WING$163.28-1.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-28; filed 2026-04-29.
0001636222-26-000017
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-27; filed 2026-07-29.
0001628280-26-050580
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 132 previous paragraphs and 167 current paragraphs.
94 unchanged; 33 reworded; 30 added; 5 removed; 0 previous and 10 current paragraphs rearranged.
Tables are not compared: 7 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (30)
Current report
•Total revenue increased 6.4% to $185.6 million;
Current report
•Net income increased 16.9% to $31.3 million, or $1.15 per diluted share;
Current report
Highlights for the year-to-date second quarter of 2026 compared to the year-to-date second quarter of 2025:
Current report
•System-wide sales increased 5.6% to $2.8 billion;
Current report
•199 net new openings in the year-to-date second quarter of 2026;
Current report
•Domestic same store sales decreased 8.1% over the prior fiscal year-to-date period;
Current report
•Total revenue increased 6.9% to $369.3 million over the prior fiscal year-to-date period;
Current report
•Net income decreased 48.6% to $61.2 million, or $2.23 per diluted share;
Current report
•Adjusted net income and adjusted earnings per diluted share, both non-GAAP measures, increased 14.8% to $64.6 million, or $2.35 per diluted share; and
Current report
Advertising fees increased $2.6 million due to a 5.3% increase in system-wide sales during the thirteen weeks ended June 27, 2026.
Current report
Labor costs as a percentage of company-owned restaurant sales were 22.7% for the thirteen weeks ended June 27, 2026, which was comparable to 22.9% for the thirteen weeks ended June 28, 2025.
Current report
During the thirteen weeks ended June 27, 2026, SG&A expense was $30.2 million, a decrease of $2.7 million compared to $32.9 million in the comparable period in 2025. The decrease in SG&A expense was primarily driven by $2.3 million in reduced stock compensation expense due to forfeitures recognized in the current period. Also contributing to the decrease was a $1.6 million reduction in payroll costs which was partially offset by a $1.5 million increase in professional fees.
Current report
Investment income decreased by $0.2 million and was comparable to the prior year period.
Current report
Twenty-Six Weeks Ended June 27, 2026 compared to Twenty-Six Weeks Ended June 28, 2025
Current report
*Not meaningful.
Current report
Revenue
Current report
During the twenty-six weeks ended June 27, 2026, total revenue was $369.3 million, an increase of $23.9 million, or 6.9%, compared to $345.4 million in the comparable period in 2025.
Current report
Advertising fees increased $3.6 million due to a 5.6% increase in system-wide sales during the twenty-six weeks ended June 27, 2026.
Current report
Company-owned restaurant sales increased $4.6 million, which was largely driven by company-owned restaurants opened and acquired since the prior fiscal second quarter.
Current report
Cost of sales
Current report
Food, beverage and packaging costs as a percentage of company-owned restaurant sales were 35.5% in the twenty-six weeks ended June 27, 2026, compared to 37.1% in the comparable period in 2025. The decrease as a percentage of company-owned restaurant sales was primarily due to a 10.7% decrease in the cost of bone-in chicken wings, which favorably impacted margins, as compared to the prior year period. This was partially offset by increases in other food costs during the period.
Current report
Labor costs as a percentage of company-owned restaurant sales were 23.3% for the twenty-six weeks ended June 27, 2026, which was comparable to the prior year period.
Current report
Advertising expenses
Current report
During the twenty-six weeks ended June 27, 2026, SG&A expense was $64.7 million, an increase of $0.3 million compared to $64.4 million in the comparable period in 2025. The increase in SG&A expense was driven by an increase in professional fees of $1.8 million and an increase of $1.5 million in IT service agreements for the twenty-six weeks ended June 27, 2026. These increased costs were slightly offset by a reduction in stock-based compensation expense of $2.8 million due to forfeitures recognized in the current period.
Current report
Depreciation and amortization
Current report
Interest expense, net
Current report
Investment income, net
Current report
During the twenty-six weeks ended June 27, 2026, investment income, net was $0.2 million, a decrease of $94.0 million compared to $93.8 million in the comparable period in 2025. The decrease was driven almost entirely by a non-recurring gain recorded on the sale of the Company’s unconsolidated equity method investment in its United Kingdom franchisee during the fiscal first quarter 2025.
Current report
Income tax expense
Current report
During the twenty-six weeks ended June 27, 2026, we recognized income tax expense of $24.1 million yielding an effective tax rate of 28.2%, compared to an effective tax rate of 25.6% in the prior year period. The increase in the effective tax rate is primarily related to the impact of nondeductible expenses for executive compensation during the twenty-six weeks ended June 27, 2026.
Removed paragraphs (5)
Previous report
•Total revenue increased 7.4% to $183.7 million;
Previous report
•Net income decreased 67.6% to $29.9 million, or $1.08 per diluted share;
Previous report
Labor costs as a percentage of company-owned restaurant sales were 23.9% for the thirteen weeks ended March 28, 2026, which was comparable to 23.8% for the thirteen weeks ended March 29, 2025.
Previous report
During the thirteen weeks ended March 28, 2026, SG&A expense was $34.4 million, an increase of $3.0 million compared to $31.4 million in the comparable period in 2025. The increase in SG&A expense was primarily driven by $2.4 million in restructuring charges during the fiscal first quarter 2026 related to the corporate realignment announced in January 2026, partially offset by lower system implementation costs and other expenses compared to the prior year period.
Previous report
Investment income decreased by $93.8 million compared to the prior year period, which reflected a gain recorded on the sale of the Company’s unconsolidated equity method investment in LPH, its United Kingdom master franchisee, during the fiscal first quarter 2025. See Note 9 of the Consolidated Financial Statements for further discussion.
Reworded paragraphs (33)
Previous wording
Wingstop is the largest fast casual chicken wings-focused restaurant chain in the world, with over 3,150 locations worldwide. We are dedicated to serving the world flavor through an unparalleled guest experience and offering of classic wings, boneless wings, tenders, and chicken sandwiches, always cooked to order and hand-sauced-and-tossed in 12 bold, distinctive flavors.
Current wording
Wingstop is the largest fast casual chicken wings-focused restaurant chain in the world, with over 3,250 locations worldwide. We are dedicated to serving the world flavor through an unparalleled guest experience and offering of classic wings, boneless wings, tenders, and chicken sandwiches, always cooked to order and hand-sauced-and-tossed in 12 bold, distinctive flavors.
Previous wording
Highlights for the fiscal first quarter 2026 compared to the fiscal first quarter 2025:
Current wording
Highlights for the fiscal second quarter 2026 compared to the fiscal second quarter 2025:
Previous wording
•System-wide sales increased 5.9% to $1.4 billion;
Current wording
•System-wide sales increased 5.3% to $1.4 billion;
Previous wording
•97 net new openings in the fiscal first quarter 2026;
Current wording
•102 net new openings in the fiscal second quarter 2026;
Previous wording
•Domestic same store sales decreased 8.7%;
Current wording
•Domestic same store sales decreased 7.5%;
Previous wording
•Adjusted net income and adjusted earnings per diluted share, both non-GAAP measures, increased 14.7% to $32.5 million, or $1.18 per diluted share; and
Current wording
•Adjusted net income and adjusted earnings per diluted share, both non-GAAP measures, increased 14.9% to $32.1 million, or $1.18 per diluted share; and
Previous wording
•Adjusted EBITDA, a non-GAAP measure, increased 9.9% to $65.4 million.
Current wording
•Adjusted EBITDA, a non-GAAP measure, increased 12.5% to $66.6 million.
Previous wording
Domestic average unit volume (“AUV”). Domestic AUV consists of the average annual sales of all restaurants that have been open for a trailing 52-week period or longer. This measure is calculated by dividing sales during the applicable period for all restaurants being measured by the number of restaurants being measured. Domestic AUV includes revenue from both company-owned and franchised restaurants. Domestic AUV allows management to assess our domestic company-owned and franchised restaurant economics. Changes in domestic AUV growth are primarily driven by increases in same store sales and are also influenced by opening new restaurants.
Current wording
Domestic average unit volume (“AUV”). Domestic AUV consists of the average annual sales of all restaurants that have been open for a trailing 52-week period or longer. This measure is calculated by dividing sales during the applicable period for all restaurants being measured by the number of restaurants being measured. Domestic AUV includes revenue from both company-owned and franchised restaurants. Domestic AUV allows management to assess our domestic company-owned and franchised restaurant economics. Changes in domestic AUV are primarily driven by changes in same store sales and are also influenced by opening new restaurants.
Previous wording
The following table sets forth our key performance indicators for the thirteen weeks ended March 28, 2026 and March 29, 2025 (in thousands, except unit data):
Current wording
The following table sets forth our key performance indicators for the thirteen and twenty-six weeks ended June 27, 2026 and June 28, 2025 (in thousands, except unit data):
Previous wording
(1) The percentage of system-wide sales attributable to company-owned restaurants was 2.4% and 2.3% for the thirteen weeks ended March 28, 2026 and March 29, 2025, respectively. The remainder was generated by franchised restaurants, as reported by our franchisees.
Current wording
(1) The percentage of system-wide sales attributable to company-owned restaurants was 2.4% and 2.4% for the thirteen and twenty-six weeks ended June 27, 2026 and June 28, 2025, respectively. The remainder was generated by franchised restaurants, as reported by our franchisees.
Previous wording
Due to these limitations, EBITDA and Adjusted EBITDA should not be considered as measures of discretionary cash available to us to invest in the growth of our business. We compensate for these limitations by relying primarily on our GAAP results and using these non-GAAP measures only as performance measures and supplementally. As noted in the table below, Adjusted EBITDA includes adjustments for losses on debt extinguishment and financing transactions, transaction costs, costs and fees associated with investments in our strategic initiatives, certain system implementation costs, gains and losses on non-recurring transactions, certain restrucutring charges, and stock-based compensation expense. We believe these adjustments are appropriate because the amounts recognized can vary significantly from period to period, do not directly relate to the ongoing operations of our restaurants, and complicate comparisons of our internal operating results and operating results of other restaurant companies over time. Each of the normal recurring adjustments and other adjustments described in this paragraph and in the reconciliation table below help management measure our core operating performance over time by removing items that are not related to day-to-day operations.
Current wording
Due to these limitations, EBITDA and Adjusted EBITDA should not be considered as measures of discretionary cash available to us to invest in the growth of our business. We compensate for these limitations by relying primarily on our GAAP results and using these non-GAAP measures only as performance measures and supplementally. As noted in the table below, Adjusted EBITDA includes adjustments for losses on debt extinguishment and financing transactions, transaction costs, costs and fees associated with investments in our strategic initiatives, certain system implementation costs, gains and losses on non-recurring transactions, certain restructuring charges, and stock-based compensation expense. We believe these adjustments are appropriate because the amounts recognized can vary significantly from period to period, do not directly relate to the ongoing operations of our restaurants, and complicate comparisons of our internal operating results and operating results of other restaurant companies over time. Each of the normal recurring adjustments and other adjustments described in this paragraph and in the reconciliation table below help management measure our core operating performance over time by removing items that are not related to day-to-day operations.
Previous wording
The following table reconciles net income to EBITDA and Adjusted EBITDA for the thirteen weeks ended March 28, 2026 and March 29, 2025 (in thousands):
Current wording
The following table reconciles net income to EBITDA and Adjusted EBITDA for the thirteen and twenty-six weeks ended June 27, 2026 and June 28, 2025 (in thousands):
Previous wording
(d)System implementation costs represent non-recurring expenses incurred related to the development and implementation of new enterprise resource planning, human capital management, and global development technology, which are included in Selling, general and administrative on the Consolidated Statements of Comprehensive Income.
Current wording
(d)System implementation costs represent non-recurring expenses incurred related to the development and implementation of new enterprise resource planning, human capital management, and global development technology, which are included in Selling, general and administrative on the Consolidated Statements of Comprehensive Income. Costs related to these initiatives are not expected to recur beyond the current period.
Previous wording
The following table reconciles net income to Adjusted net income and calculates adjusted earnings per diluted share for the thirteen weeks ended March 28, 2026 and March 29, 2025 (in thousands):
Current wording
The following table reconciles net income to Adjusted net income and calculates adjusted earnings per diluted share for the thirteen and twenty-six weeks ended June 27, 2026 and June 28, 2025 (in thousands):
Previous wording
(d) System implementation costs represent non-recurring expenses incurred related to the development and implementation of new enterprise resource planning, human capital management, and global development technology, which are included in Selling, general and administrative on the Consolidated Statements of Comprehensive Income.
Current wording
(d) System implementation costs represent non-recurring expenses incurred related to the development and implementation of new enterprise resource planning, human capital management, and global development technology, which are included in Selling, general and administrative on the Consolidated Statements of Comprehensive Income. Costs related to these initiatives are not expected to recur beyond the current period.
Previous wording
(g)Represents the tax effect of the aforementioned adjustments to reflect corporate income taxes at an assumed effective tax rate of 24% for the thirteen weeks ended March 28, 2026, which includes provisions for U.S. federal income taxes, and assumes the respective statutory rates for applicable state and local jurisdictions.
Current wording
(g)Represents the tax effect of the aforementioned adjustments to reflect corporate income taxes at an assumed effective tax rate of 24% for the thirteen and twenty-six weeks ended June 27, 2026, which includes provisions for U.S. federal income taxes, and assumes the respective statutory rates for applicable state and local jurisdictions.
Previous wording
During the thirteen weeks ended March 28, 2026, total revenue was $183.7 million, an increase of $12.6 million, or 7.4%, compared to $171.1 million in the comparable period in 2025.
Current wording
During the thirteen weeks ended June 27, 2026, total revenue was $185.6 million, an increase of $11.2 million, or 6.4%, compared to $174.3 million in the comparable period in 2025.
Previous wording
Royalty revenue, franchise fees and other increased $8.7 million, primarily driven by $12.2 million from net new franchise restaurant development and a $3.4 million increase in vendor rebates, partially offset by a $5.9 million decrease attributable to an 8.7% decline in domestic same store sales.
Current wording
Royalty revenue, franchise fees and other increased $7.0 million, primarily driven by $11.2 million from net new franchise restaurant development and a $0.8 million increase from vendor rebates, partially offset by a $5.0 million decrease attributable to a 7.5% decline in domestic same store sales.
Previous wording
Company-owned restaurant sales increased $2.9 million, driven by six additional corporate stores opened or acquired since the prior year period.
Current wording
Company-owned restaurant sales increased $1.7 million, driven by three additional corporate stores opened or acquired since the prior year period.
Previous wording
Food, beverage and packaging costs as a percentage of company-owned restaurant sales were 35.8% in the thirteen weeks ended March 28, 2026, compared to 37.4% in the comparable period in 2025. This decrease as a percentage of company-owned restaurant sales was primarily due to a 13.1% decrease in the cost of bone-in chicken wings as compared to the prior year period.
Current wording
Food, beverage and packaging costs as a percentage of company-owned restaurant sales were 35.2% in the thirteen weeks ended June 27, 2026, compared to 36.8% in the comparable period in 2025. This decrease as a percentage of company-owned restaurant sales was primarily due to a 9.1% decrease in the cost of bone-in chicken wings as compared to the prior year period.
Previous wording
During the thirteen weeks ended March 28, 2026, advertising expenses were $67.3 million, an increase of $1.5 million compared to $65.8 million in the comparable period in 2025. Advertising expenses are recognized at the same time the related revenue is recognized, which does not necessarily correlate to the actual timing of the related advertising spend.
Current wording
During the thirteen weeks ended June 27, 2026, advertising expenses were $68.4 million, an increase of $2.9 million compared to $65.5 million in the comparable period in 2025. Advertising expenses are recognized at the same time the related revenue is recognized, which does not necessarily correlate to the actual timing of the related advertising spend.
Previous wording
During the thirteen weeks ended March 28, 2026, depreciation and amortization was $6.8 million, an increase of $0.6 million compared to $6.2 million in the comparable period in 2025. The increase in depreciation and amortization was primarily due to capital expenditures placed in service during the period related to our technology investments.
Current wording
During the thirteen weeks ended June 27, 2026, depreciation and amortization was $7.2 million, an increase of $1.0 million compared to $6.2 million in the comparable period in 2025. The increase in depreciation and amortization was primarily due to capital expenditures placed in service during the period related to our technology investments.
Previous wording
During the thirteen weeks ended March 28, 2026, interest expense, net increased to $9.8 million from $8.9 million in the prior year period, primarily driven by a $0.6 million decline in interest income due to lower average cash balances and $0.3 million of additional interest expense.
Current wording
During the thirteen weeks ended June 27, 2026, interest expense, net increased to $9.8 million from $8.5 million in the prior year period, primarily driven by a $1.0 million decline in interest income due to lower average cash balances and $0.3 million of additional interest expense.
Previous wording
During the thirteen weeks ended March 28, 2026, we recognized income tax expense of $10.7 million, yielding an effective tax rate of 26.3%, compared to an effective tax rate of 25.1% in the prior year period. The increase in the effective tax rate was primarily due to an increase in state income taxes and other non-deductible items.
Current wording
During the thirteen weeks ended June 27, 2026, we recognized income tax expense of $13.4 million, yielding an effective tax rate of 29.9%, compared to an effective tax rate of 27.2% in the prior year period. The increase in the effective tax rate was primarily due to an increase in state income taxes and other non-deductible items.
Previous wording
Other restaurant operating expenses as a percentage of company-owned restaurant sales were 17.8% for the thirteen weeks ended March 28, 2026, compared to 17.3% for the thirteen weeks ended March 29, 2025. The increase as a percentage of company-owned restaurant sales was due to repairs and maintenance costs.
Current wording
Other restaurant operating expenses as a percentage of company-owned restaurant sales were 17.9% for the twenty-six weeks ended June 27, 2026, compared to 17.6% in the prior year period in 2025. The increase as a percentage of company-owned restaurant sales was primarily due to increased rent charges.
Previous wording
General. Our primary sources of liquidity and capital resources are cash provided from operating activities, cash and cash equivalents on hand, and borrowings available under our securitized financing facility. Our primary requirements for liquidity and capital are working capital, general corporate needs, capital expenditures, income tax payments, debt service requirements, dividend payments. We generally utilize available cash flows from operations to invest in our business, service our debt obligations, pay dividends, and execute our share repurchase program. As of March 28, 2026, the Company had $176.6 million of cash and cash equivalents on its balance sheet.
Current wording
General. Our primary sources of liquidity and capital resources are cash provided from operating activities, cash and cash equivalents on hand, and borrowings available under our securitized financing facility. Our primary requirements for liquidity and capital are working capital, general corporate needs, capital expenditures, income tax payments, debt service requirements, dividend payments. We generally utilize available cash flows from operations to invest in our business, service our debt obligations, pay dividends, and execute our share repurchase program. As of June 27, 2026, the Company had $157.4 of cash, cash equivalents, and restricted cash.
Previous wording
The following table shows summary cash flows information for the thirteen weeks ended March 28, 2026 and March 29, 2025 (in thousands):
Current wording
The following table shows summary cash flows information for the twenty-six weeks ended June 27, 2026 and June 28, 2025 (in thousands):
Previous wording
Net cash provided by operating activities was $61.4 million in the thirteen weeks ended March 28, 2026, an increase of $36.1 million from net cash provided by operating activities of $25.3 million in the thirteen weeks ended March 29, 2025, primarily related to changes in Ad Fund cash and cash equivalents, directly related to the timing of payments for expenses incurred for national advertising, as well as changes in working capital.
Current wording
Net cash provided by operating activities was $68.3 million in the twenty-six weeks ended June 27, 2026, an increase of $36.4 million from net cash provided by operating activities of $31.9 million in the twenty-six weeks ended June 28, 2025, primarily related to changes in Ad Fund cash and cash equivalents, directly related to the timing of payments for expenses incurred for national advertising, as well as changes in working capital.
Previous wording
Investing activities. Our net cash used in investing activities was $17.7 million in the thirteen weeks ended March 28, 2026, a change of $58.2 million from net cash provided by investing activities of $40.5 million in the thirteen weeks ended March 29, 2025. The increase in capital expenditures primarily relates to our investments in technology. The prior year period included proceeds of $107.7 million from the sale of our non-controlling interest in LPH, partially offset by reinvestment in the newly formed entity of $75.4 million, as well as proceeds from the sale of an office building of $17.3 million in the prior year period.
Current wording
Investing activities. Our net cash used in investing activities was $35.9 million in the twenty-six weeks ended June 27, 2026, a change of $52.9 million from net cash provided by investing activities of $16.9 million in the twenty-six weeks ended June 28, 2025. The increase in capital expenditures primarily relates to our investments in technology and equipment. The prior year period included proceeds of $107.7 million from the sale of our non-controlling interest in LPH, partially offset by reinvestment in the newly formed entity of $75.4 million, as well as proceeds from the sale of an office building of $17.3 million in the prior year period.
Previous wording
Financing activities. Our net cash used in financing activities was $95.5 million in the thirteen weeks ended March 28, 2026, a decrease of $44.9 million from net cash used in financing activities of $140.4 million in the thirteen weeks ended March 29, 2025. The decrease is primarily related to an additional $41.9 million in common stock repurchased under our share repurchase program in the prior year period compared to the current year period.
Current wording
Financing activities. Our net cash used in financing activities was $103.4 million in the twenty-six weeks ended June 27, 2026, a decrease of $45.8 million from net cash used in financing activities of $149.2 million in the twenty-six weeks ended June 28, 2025. The decrease is primarily related to an additional $42.2 million in common stock repurchased under our share repurchase program in the prior year period compared to the current year period.
Previous wording
During the fiscal first quarter of 2026, the Company continued to have a leverage ratio under the 2020 Class A-2 Notes, the 2022 Class A-2 Notes, and 2024 Class A-2 Notes of less than 5.0x. Per the terms of the Company’s debt agreements, principal payments can be suspended at the borrower’s election until the repayment date, as long as the Company maintains a leverage ratio of less than 5.0x. Accordingly, the Company elected to suspend payments, and the entire outstanding balance of the 2020 Class A-2 Notes, the 2022 Class A-2 Notes, and the 2024 Class A-2 Notes has been classified as long-term debt due after fiscal year 2026.
Current wording
During the fiscal second quarter of 2026, the Company continued to have a leverage ratio under the 2020 Class A-2 Notes, the 2022 Class A-2 Notes, and 2024 Class A-2 Notes of less than 5.0x. Per the terms of the Company’s debt agreements, principal payments can be suspended at the borrower’s election until the repayment date, as long as the Company maintains a leverage ratio of less than 5.0x. Accordingly, the Company elected to suspend payments, and the entire outstanding balance of the 2020 Class A-2 Notes, the 2022 Class A-2 Notes, and the 2024 Class A-2 Notes has been classified as long-term debt due after fiscal year 2026.
Previous wording
Dividends. We paid a quarterly cash dividend of $0.30 per share of common stock resulting in aggregate declared dividends of $8.2 million during the thirteen weeks ended March 28, 2026. On April 28, 2026 the Company’s Board of Directors declared a dividend of $0.30 per share, to be paid on June 5, 2026 to stockholders of record as of May 15, 2026, totaling approximately $8.2 million.
Current wording
Dividends. We paid a quarterly cash dividend of $0.30 per share of common stock in each of the first two quarters of 2026, resulting in aggregate declared dividends of $16.4 million during the twenty-six weeks ended June 27, 2026. On July 28, 2026 the Company’s Board of Directors declared a dividend of $0.33 per share, to be paid on September 5, 2026 to stockholders of record as of August 15, 2026, totaling approximately $9 million.
Previous wording
Share Repurchase Program. On March 5, 2026, the Company’s Board of Directors authorized the repurchase of up to an additional $300.0 million of its outstanding shares of common stock under its existing share repurchase program (the “Share Repurchase Program”). During the thirteen weeks ended March 28, 2026, the Company repurchased and retired 374,324 shares of its common stock at an average price of $208.08 per share. As of March 28, 2026, $313.4 million remained available under the Share Repurchase Program. The authorization for the repurchase continues until all such shares have been repurchased or the repurchase plan is terminated by action of the Company’s Board of Directors.
Current wording
Share Repurchase Program. On March 5, 2026, the Company’s Board of Directors authorized the repurchase of up to an additional $300.0 million of its outstanding shares of common stock under its existing share repurchase program (the “Share Repurchase Program”). During the twenty-six weeks ended June 27, 2026, the Company repurchased and retired 374,324 shares of its common stock at an average price of $208.08 per share. As of June 27, 2026, $313.4 million remained available under the Share Repurchase Program. The authorization for the repurchase continues until all such shares have been repurchased or the repurchase plan is terminated by action of the Company’s Board of Directors.
Rearranged current paragraphs (10)
Current report — wording carried from elsewhere
•Adjusted EBITDA, a non-GAAP measure, increased 11.2% to $132.0 million.
Current report — wording carried from elsewhere
Other restaurant operating expenses as a percentage of company-owned restaurant sales were 18.1% for the thirteen weeks ended June 27, 2026, which was comparable to 17.9% for the thirteen weeks ended June 28, 2025.
Current report — wording carried from elsewhere
The following table sets forth our results of operations for the twenty-six weeks ended June 27, 2026 and June 28, 2025 (dollars in thousands):
Current report — wording carried from elsewhere
(1)Cost of sales includes all operating expenses of company-owned restaurants, including advertising expenses, and excludes depreciation and amortization, which are presented separately.
Current report — wording carried from elsewhere
Royalty revenue, franchise fees and other increased $15.7 million, of which $22.4 million was due to net new franchise restaurant development and a $4.1 million increase in vendor rebates, partially offset by a decrease of $10.8 million due to a decline in domestic same store sales growth of 8.1%.
Current report — wording carried from elsewhere
The table below presents the major components of cost of sales (dollars in thousands):
Current report — wording carried from elsewhere
During the twenty-six weeks ended June 27, 2026, advertising expenses were $135.7 million, an increase of $4.4 million compared to $131.3 million in the comparable period in 2025. Advertising expenses are recognized at the same time the related revenue is recognized, which does not necessarily correlate to the actual timing of the related advertising spend.
Current report — wording carried from elsewhere
Selling, general and administrative (SG&A)
Current report — wording carried from elsewhere
During the twenty-six weeks ended June 27, 2026, depreciation and amortization was $14.1 million, an increase of $1.6 million compared to $12.4 million in the comparable period in 2025. The increase in depreciation and amortization was primarily due to capital expenditures related to our technology investments.
Current report — wording carried from elsewhere
During the twenty-six weeks ended June 27, 2026, interest expense, net was $19.6 million, an increase of $2.2 million compared to $17.4 million in the comparable period in 2025. The increase was primarily driven by a $1.6 million decline in interest income due to lower average cash balances and $0.6 million of additional interest expense.