Wingstop Inc.

Previous wording

Wingstop is the largest fast casual chicken wings-focused restaurant chain in the world, with over 2,650 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 2,800 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 2025 compared to the fiscal first quarter 2024:

Current wording

Highlights for the fiscal second quarter 2025 compared to the fiscal second quarter 2024:

Previous wording

•System-wide sales increased 15.7% to $1.3 billion;

Current wording

•System-wide sales increased 13.9% to $1.3 billion;

Previous wording

•126 net new openings in the fiscal first quarter 2025;

Current wording

•129 net new openings in the fiscal second quarter 2025;

Previous wording

•Adjusted net income and adjusted earnings per diluted share, both non-GAAP measures, was $28.3 million, or $0.99 per diluted share, comparable to the prior fiscal first quarter; and

Current wording

•Adjusted net income and adjusted earnings per diluted share, both non-GAAP measures, increased 1.6% to $27.9 million, or $1.00 per diluted share; and

Previous wording

•Adjusted EBITDA, a non-GAAP measure, increased 18.4% to $59.5 million.

Current wording

•Adjusted EBITDA, a non-GAAP measure, increased 14.3% to $59.2 million.

Previous wording

The following table sets forth our key performance indicators for the thirteen weeks ended March 29, 2025 and March 30, 2024 (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 28, 2025 and June 29, 2024 (in thousands, except unit data):

Previous wording

(1) The percentage of system-wide sales attributable to company-owned restaurants was 2.3% and 2.5% for the thirteen weeks ended March 29, 2025 and March 30, 2024, 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 2.5% for the thirteen and twenty-six weeks ended June 28, 2025 and June 29, 2024, respectively. The remainder was generated by franchised restaurants, as reported by our franchisees.

Previous wording

The following table reconciles net income to EBITDA and Adjusted EBITDA for the thirteen weeks ended March 29, 2025 and March 30, 2024 (in thousands):

Current wording

The following table reconciles net income to EBITDA and Adjusted EBITDA for the thirteen and twenty-six weeks ended June 28, 2025 and June 29, 2024 (in thousands):

Previous wording

(b) Represents a non-recurring loss on sale of an office building during the fiscal first quarter 2025, which was included in Loss on disposal of assets on the Consolidated Statements of Comprehensive Income.

Current wording

(b) Represents a non-recurring loss on the sale of an office building during the fiscal first quarter 2025, which was included in Loss on disposal of assets on the Consolidated Statements of Comprehensive Income.

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 29, 2025 and March 30, 2024 (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 28, 2025 and June 29, 2024 (in thousands):

Previous wording

(b)Represents a non-recurring loss on sale of an office building during the fiscal first quarter 2025, which was included in Loss on disposal of assets on the Consolidated Statements of Comprehensive Income.

Current wording

(b)Represents a non-recurring loss on the sale of an office building during the fiscal first quarter 2025, which was included in Loss on disposal of assets on the Consolidated Statements of Comprehensive Income.

Previous wording

(e) 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 29, 2025, which includes provisions for U.S. federal income taxes, and assumes the respective statutory rates for applicable state and local jurisdictions.

Current wording

(e) 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 28, 2025, 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 29, 2025, total revenue was $171.1 million, an increase of $25.3 million, or 17.4%, compared to $145.8 million in the comparable period in 2024.

Current wording

During the thirteen weeks ended June 28, 2025, total revenue was $174.3 million, an increase of $18.6 million, or 12.0%, compared to $155.7 million in the comparable period in 2024.

Previous wording

Royalty revenue, franchise fees and other increased $11.7 million, of which $10.0 million was due to net new franchise restaurant development, and $0.3 million was due to domestic same store sales growth of 0.5%. Other revenue increased by $0.8 million primarily due to an increase in vendor rebates compared to prior fiscal first quarter.

Current wording

Royalty revenue, franchise fees and other increased $8.7 million, of which $9.8 million was due to net new franchise restaurant development, partially offset by a decrease of $1.4 million due to a decline in domestic same store sales growth of 1.9%.

Previous wording

Advertising fees increased $12.1 million primarily due to a 15.7% increase in system-wide sales during the fiscal first quarter 2025. $5.6 million of the increase was due to an increase in the national advertising fund contribution rate to 5.5% from 5.0%, effective the first day of the fiscal first quarter 2025.

Current wording

Advertising fees increased $7.3 million primarily due to a 13.9% increase in system-wide sales during the fiscal second quarter 2025. $2.3 million of the increase was due to an increase in the national advertising fund contribution rate to 5.5%, effective the first day of the fiscal first quarter 2025.

Previous wording

Company-owned restaurant sales increased $1.5 million, of which $0.5 million was related to company-owned same store sales growth of 1.4%, driven primarily by an increase in transactions, and $1.0 million was primarily related to company-owned restaurants opened and acquired since the prior fiscal first quarter.

Current wording

Company-owned restaurant sales increased $2.6 million, of which $1.8 million was related to company-owned same store sales growth of 3.6%, driven primarily by an increase in transactions, and $0.8 million was related to company-owned restaurants opened and acquired since the prior fiscal second quarter.

Previous wording

Food, beverage and packaging costs as a percentage of company-owned restaurant sales were 37.4% in the thirteen weeks ended March 29, 2025, compared to 34.7% in the comparable period in 2024. This increase was primarily due to a 13.2% increase 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 36.8% in the thirteen weeks ended June 28, 2025, compared to 35.8% in the comparable period in 2024. This increase as a percentage of company-owned restaurant sales was primarily due to a shift in mix to bone-in from boneless products during the second fiscal quarter 2025, partially offset by a 6.0% decrease in the cost of bone-in chicken wings as compared to the prior year period.

Previous wording

Labor costs as a percentage of company-owned restaurant sales were 23.8% for the thirteen weeks ended March 29, 2025, which was comparable to 23.4% for the thirteen weeks ended March 30, 2024. The increase is primarily due to an increase in company-owned restaurant wages, partially offset by the sale of corporate restaurants in the New York market to an existing franchisee during the fiscal fourth quarter 2024.

Current wording

Labor costs as a percentage of company-owned restaurant sales were 22.9% for the thirteen weeks ended June 28, 2025, compared to 23.4% for the thirteen weeks ended June 29, 2024. The decrease as a percentage of company-owned restaurant sales was primarily due to sales leverage as a result of the sale of corporate restaurants in the New York market to an existing franchisee during the fiscal fourth quarter 2024, partially offset by an increase in company-owned restaurant wages.

Previous wording

Other restaurant operating expenses as a percentage of company-owned restaurant sales were 17.3% for the thirteen weeks ended March 29, 2025, compared to 19.0% for the thirteen weeks ended March 30, 2024. The decrease as a percentage of company-owned restaurant sales was primarily due to the sale of corporate restaurants in the New York market during the fiscal fourth quarter 2024, partially offset by an increase in the national advertising fund contribution rate to 5.5%, effective the first day of the fiscal first quarter 2025.

Current wording

Other restaurant operating expenses as a percentage of company-owned restaurant sales were 17.9% for the thirteen weeks ended June 28, 2025, compared to 19.3% for the thirteen weeks ended June 29, 2024. The decrease as a percentage of company-owned restaurant sales was primarily due to sales leverage as a result of the sale of corporate restaurants in the New York market to an existing franchisee during the fiscal fourth quarter 2024, partially offset by an increase in the national advertising fund contribution rate to 5.5%, effective the first day of the fiscal first quarter 2025.

Previous wording

During the thirteen weeks ended March 29, 2025, advertising expenses were $65.8 million, an increase of $12.6 million compared to $53.2 million in the comparable period in 2024. 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 28, 2025, advertising expenses were $65.5 million, an increase of $7.0 million compared to $58.5 million in the comparable period in 2024. 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 29, 2025, SG&A expense was $31.4 million, an increase of $6.3 million compared to $25.2 million in the comparable period in 2024. The increase in SG&A expense was driven by an increase in headcount related expenses, inclusive of stock-based compensation, of $4.8 million to support the growth in our business, as well as system implementation costs of $1.3 million during the fiscal first quarter 2025.

Current wording

During the thirteen weeks ended June 28, 2025, SG&A expense was $32.9 million, an increase of $4.8 million compared to $28.1 million in the comparable period in 2024. The increase in SG&A expense was driven by an increase in headcount related expenses, inclusive of stock-based compensation, of $3.8 million to support the growth in our business and system implementation costs of $1.5 million during the fiscal second quarter 2025, partially offset by a decrease of $2.0 million in professional and other fees.

Previous wording

During the thirteen weeks ended March 29, 2025, depreciation and amortization was $6.2 million, an increase of $2.8 million compared to $3.4 million in the comparable period in 2024. The increase in depreciation and amortization was primarily due to depreciation expense for software assets placed in service during the fiscal second quarter 2024 that relate to the launch of our proprietary technology platform: MyWingstop.

Current wording

During the thirteen weeks ended June 28, 2025, depreciation and amortization was $6.2 million, an increase of $1.1 million compared to $5.2 million in the comparable period in 2024. The increase in depreciation and amortization was primarily due to capital expenditures related to our technology investments.

Previous wording

During the thirteen weeks ended March 29, 2025, interest expense, net was $8.9 million, an increase of $4.4 million compared to $4.5 million of interest expense, net in the comparable period in 2024. The increase was primarily driven by $7.8 million in interest expense related to the securitized financing transaction completed on December 3, 2024, which increased our outstanding debt by $500 million, partially offset by additional interest income earned on our cash balances and interest earned on our investments, as compared to the prior year period.

Current wording

During the thirteen weeks ended June 28, 2025, interest expense, net was $8.5 million, an increase of $3.3 million compared to $5.2 million of interest expense, net in the comparable period in 2024. The increase was primarily driven by $7.3 million in interest expense related to the securitized financing transaction completed on December 3, 2024, which increased our outstanding debt by $500 million, partially offset by additional interest income earned on our cash balances, as compared to the prior year period.

Previous wording

During the thirteen weeks ended March 29, 2025, we recognized income tax expense of $30.9 million, yielding an effective tax rate of 25.1%, comparable to an effective tax rate of 25.3% in the prior year period. The increase in total tax expense is primarily related to the increase in Investment income, net as a result of the gain on sale of our investment in LPH during the fiscal first quarter 2025.

Current wording

During the thirteen weeks ended June 28, 2025, we recognized income tax expense of $10.0 million, yielding an effective tax rate of 27.2%, comparable to an effective tax rate of 24.7% 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 thirteen weeks ended June 28, 2025.

Previous wording

During the thirteen weeks ended March 29, 2025, investment income, net was $93.8 million, an increase of $93.5 million compared to $0.3 million in the comparable period in 2024. The increase was driven almost entirely by a gain recorded on the sale of the Company’s unconsolidated equity method investment in its United Kingdom franchisee during the fiscal first quarter 2025. See Note 9 of the Consolidated Financial Statements for further discussion.

Current wording

During the twenty-six weeks ended June 28, 2025, investment income, net was $93.8 million, an increase of $93.1 million compared to $0.8 million in the comparable period in 2024. The increase was driven almost entirely by a gain recorded on the sale of the Company’s unconsolidated equity method investment in its United Kingdom franchisee during the fiscal first quarter 2025.

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, and the repurchase of shares of our common stock (if any). Historically, we have operated with minimal positive working capital or with negative working capital. We generally utilize available cash flows from operations to invest in our business, service our debt obligations, pay dividends, and repurchase shares of our common stock (if any). As of March 29, 2025, the Company had $251.4 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, and the repurchase of shares of our common stock (if any). Historically, we have operated with minimal positive working capital or with negative working capital. We generally utilize available cash flows from operations to invest in our business, service our debt obligations, pay dividends, and repurchase shares of our common stock (if any). As of June 28, 2025, the Company had $227.9 million of cash and cash equivalents on its balance sheet.

Previous wording

The following table shows summary cash flows information for the thirteen weeks ended March 29, 2025 and March 30, 2024 (in thousands):

Current wording

The following table shows summary cash flows information for the twenty-six weeks ended June 28, 2025 and June 29, 2024 (in thousands):

Previous wording

Net cash provided by operating activities was $25.3 million in the thirteen weeks ended March 29, 2025, a decrease of $19.4 million from net cash provided by operating activities of $44.7 million in the thirteen weeks ended March 30, 2024. The decrease is 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 $31.9 million in the twenty-six weeks ended June 28, 2025, a decrease of $49.0 million from net cash provided by operating activities of $80.8 million in the twenty-six weeks ended June 29, 2024. The decrease is 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 provided by investing activities was $40.5 million in the thirteen weeks ended March 29, 2025, a change of $52.2 million from net cash used in investing activities of $11.7 million in the thirteen weeks ended March 30, 2024. The change is primarily due to proceeds from the sale of our non-controlling interest in LPH of $107.7 million 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.

Current wording

Investing activities. Our net cash provided by investing activities was $16.9 million in the twenty-six weeks ended June 28, 2025, a change of $42.2 million from net cash used in investing activities of $25.3 million in the twenty-six weeks ended June 29, 2024. The change is primarily due to proceeds from the sale of our non-controlling interest in LPH of $107.7 million 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.

Previous wording

Financing activities. Our net cash used in financing activities was $140.4 million in the thirteen weeks ended March 29, 2025, an increase of $130.8 million from net cash used in financing activities of $9.6 million in the thirteen weeks ended March 30, 2024. The increase is primarily related to $120.8 million in common stock repurchased under our share repurchase program as compared to the prior fiscal year period.

Current wording

Financing activities. Our net cash used in financing activities was $149.2 million in the twenty-six weeks ended June 28, 2025, an increase of $104.0 million from net cash used in financing activities of $45.2 million in the twenty-six weeks ended June 29, 2024. The increase is primarily related to an additional $90.8 million in common stock repurchased under our share repurchase program as compared to the prior fiscal year period.

Previous wording

During the fiscal first quarter of 2025, 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 2025, 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 $0.27 per share of common stock, resulting in an aggregate of $7.6 million during the thirteen weeks ended March 29, 2025. On April 29, 2025 the Company’s Board of Directors declared a dividend of $0.27 per share, to be paid on June 6, 2025 to stockholders of record as of May 16, 2025, totaling approximately $7.5 million.

Current wording

Dividends. We paid a quarterly cash dividend of $0.27 per share of common stock in each of the first two quarters of 2025, aggregating $15.1 million in the twenty-six weeks ended June 28, 2025. On July 29, 2025 the Company’s Board of Directors declared a dividend of $0.30 per share, to be paid on September 5, 2025 to stockholders of record as of August 15, 2025, totaling approximately $8.4 million.

Previous wording

Share Repurchase Program. On December 5, 2024, the Company’s Board of Directors authorized the repurchase of up to an additional $500.0 million of its outstanding shares of common stock under its existing share repurchase program (the “Share Repurchase Program”). During the thirteen weeks ended March 29, 2025, the Company repurchased and retired 830,012 shares of its common stock at an average price of $257.40 per share, inclusive of common stock received as part of the final settlement under the ASR Agreement. As of March 29, 2025, $191.3 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 December 5, 2024, the Company’s Board of Directors authorized the repurchase of up to an additional $500.0 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 28, 2025, the Company repurchased and retired 830,012 shares of its common stock at an average price of $257.40 per share, inclusive of common stock received as part of the final settlement under an accelerated share repurchase agreement. As of June 28, 2025, $191.3 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.