SEC Form 10-Q filed by Wingstop Inc.

7/30/25 4:13:15 PM ET

$WING

Restaurants

Consumer Discretionary

Get the next $WING alert in real time by email

wing-20250628

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 28, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission File No. 001-37425

WINGSTOP INC.

(Exact name of registrant as specified in its charter)


Delaware						47-3494862
(State or other jurisdiction of incorporation or organization)						(IRS Employer Identification No.)


2801 N Central Expressway
Suite 1600
Dallas, Texas						75204
(Address of principal executive offices)						(Zip Code)

(972) 686-6500

(Registrant’s telephone number, including area code)


Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	WING	NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes ¨ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). x Yes ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes x No

On July 29, 2025 there were 27,923,753 shares of common stock outstanding.

TABLE OF CONTENTS


		Page
PART I	Financial Information	4
Item 1.	Financial Statements	4
	Consolidated Balance Sheets - June 28 , 2025 (Unaudited) and December 28, 2024	4
	Consolidated Statements of Comprehensive Income (Unaudited) - Thirteen and Twenty-six Weeks Ended June 28, 2025 and June 29, 2024	5

	Consolidated Statements of Stockholders’ Deficit (Unaudited) - Thirteen and Twenty-six Weeks Ended June 28, 2025 and June 29, 2024	6
	Consolidated Statements of Cash Flows (Unaudited) - Twenty-six Weeks Ended June 28, 2025 and June 29, 2024	8
	Notes to Consolidated Financial Statements (Unaudited)	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30
Item 4.	Controls and Procedures	31

PART II	Other Information	32
Item 1.	Legal Proceedings	32
Item 1A.	Risk Factors	32
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 3.	Defaults Upon Senior Securities	32
Item 4.	Mine Safety Disclosures	32
Item 5.	Other Information	32
Item 6.	Exhibits	33
	Signatures	34

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

WINGSTOP INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(amounts in thousands, except share and par value amounts)


	June 28, 2025		December 28, 2024
	(Unaudited)
Assets
Current assets
Cash and cash equivalents	$	227,943	$	315,910
Restricted cash	25,994		20,868
Accounts receivable, net	28,390		19,661
Prepaid expenses and other current assets	9,479		6,520
Advertising fund assets, restricted	21,034		32,659
Total current assets	312,840		395,618
Property and equipment, net	110,838		125,953
Operating lease assets	48,693		49,046
Goodwill	79,211		74,718
Trademarks	32,700		32,700
Investments	83,190		8,511
Other non-current assets	40,816		29,700
Total assets	$	708,288	$	716,246
Liabilities and stockholders' deficit
Current liabilities
Accounts payable	$	3,300	$	6,943
Current portion of operating lease liabilities	2,956		1,059
Other current liabilities	44,296		46,782

Advertising fund liabilities	21,034		32,659
Total current liabilities	71,586		87,443
Long-term debt, net	1,207,631		1,206,201
Operating lease liabilities	58,477		58,169
Deferred revenues, net of current	42,731		38,877
Deferred income tax liabilities, net	13,775		1,085
Other non-current liabilities	86		57
Total liabilities	1,394,286		1,391,832
Commitments and contingencies (see Note 7)
Stockholders' deficit
Common stock, $0.01 par value; 100,000,000 shares authorized; 27,923,753 and 28,662,614 shares issued and outstanding as of June 28, 2025 and December 28, 2024, respectively	279		287
Additional paid-in-capital	3,791		1,568

Retained deficit	(697,557)		(676,940)
Accumulated other comprehensive income (loss)	7,489		(501)
Total stockholders' deficit	(685,998)		(675,586)
Total liabilities and stockholders' deficit	$	708,288	$	716,246

See accompanying notes to consolidated financial statements.

WINGSTOP INC. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

(amounts in thousands, except per share data)

(Unaudited)


	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024
Revenue:
Royalty revenue, franchise fees and other	$	79,889	$	71,160	$	158,664	$	138,257
Advertising fees	61,962		54,654		124,234		104,803
Company-owned restaurant sales	32,478		29,885		62,525		58,428
Total revenue	174,329		155,699		345,423		301,488
Costs and expenses:
Cost of sales (1)	24,405		22,673		47,240		43,944
Advertising expenses	65,533		58,548		131,328		111,740
Selling, general and administrative	32,937		28,097		64,377		53,275
Depreciation and amortization	6,220		5,161		12,448		8,571
Loss on disposal of assets	—		—		6,535		—
Total costs and expenses	129,095		114,479		261,928		217,530
Operating income	45,234		41,220		83,495		83,958
Interest expense, net	8,469		5,200		17,379		9,744

Investment income, net	—		(471)		(93,839)		(774)
Income before income tax expense	36,765		36,491		159,955		74,988
Income tax expense	10,002		9,006		40,927		18,756
Net income	$	26,763	$	27,485	$	119,028	$	56,232

Earnings per share
Basic	$	0.96	$	0.94	$	4.23	$	1.92
Diluted	$	0.96	$	0.93	$	4.21	$	1.91

Other comprehensive income (loss)
Currency translation adjustment	$	4,731	$	(12)	$	7,990	$	(36)
Other comprehensive income (loss)	4,731		(12)		7,990		(36)
Comprehensive income	$	31,494	$	27,473	$	127,018	$	56,196

(1) Cost of sales includes all operating expenses of company-owned restaurants, including advertising expenses, and excludes depreciation and amortization, which are presented separately.

See accompanying notes to consolidated financial statements.

WINGSTOP INC. AND SUBSIDIARIES

Consolidated Statements of Stockholders' Deficit

For the Twenty-Six Weeks Ended June 29, 2024

(amounts in thousands, except share data)

(Unaudited)


	Common Stock
	Shares	Amount		Additional Paid-In Capital		Retained Deficit		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Deficit
Balance at December 30, 2023	29,337,920	$	293	$	2,676	$	(459,994)	$	(341)	$	(457,366)
Net income	—	—		—		28,747		—		28,747
Shares issued under stock plans	42,918	1		707		—		—		708
Tax payments for restricted stock upon vesting	(10,860)	—		—		(3,717)		—		(3,717)
Stock-based compensation expense, net of forfeitures	—	—		3,812		—		—		3,812
Dividends declared on common stock and equivalents	—	—		(6,277)		(262)		—		(6,539)
Currency translation adjustment	—	—		—		—		(24)		(24)
Balance at March 30, 2024	29,369,978	294		918		(435,226)		(365)		(434,379)
Net income	—	—		—		27,485		—		27,485
Shares issued under stock plans	11,323	—		546		—		—		546
Purchases of common stock	(75,862)	(1)		(4,304)		(24,915)				(29,220)
Tax payments for restricted stock upon vesting	(1,038)	—		—		(401)		—		(401)
Stock-based compensation expense, net of forfeitures	—	—		4,926		—		—		4,926
Dividends declared on common stock and equivalents	—	—		(217)		(6,269)		—		(6,486)
Currency translation adjustment	—	—		—		—		(12)		(12)
Balance at June 29, 2024	29,304,401	$	293	$	1,869	$	(439,326)	$	(377)	$	(437,541)

WINGSTOP INC. AND SUBSIDIARIES

Consolidated Statements of Stockholders' Deficit

For the Twenty-Six Weeks Ended June 28, 2025

(amounts in thousands, except share data)

(Unaudited)


	Common Stock
	Shares	Amount		Additional Paid-In Capital		Retained Deficit		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Deficit
Balance at December 28, 2024	28,662,614	$	287	$	1,568	$	(676,940)	$	(501)	$	(675,586)
Net income	—	—		—		92,265		—		92,265
Shares issued under stock plans	109,964	1		(1)		—		—		—
Purchases of common stock	(830,012)	(8)		(5,179)		(115,582)		—		(120,769)
Tax payments for restricted stock upon vesting	(39,678)	(1)		—		(11,596)		—		(11,597)
Stock-based compensation expense, net of forfeitures	—	—		5,312		—		—		5,312
Dividends declared on common stock and equivalents	—	—		(409)		(7,457)		—		(7,866)
Currency translation adjustment	—	—		—		—		3,259		3,259
Balance at March 29, 2025	27,902,888	279		1,291		(719,310)		2,758		(714,982)
Net income	—	—		—		26,763		—		26,763
Shares issued under stock plans	28,298	—		855		—		—		855

Tax payments for restricted stock upon vesting	(7,433)	—		—		(2,002)		—		(2,002)
Stock-based compensation expense, net of forfeitures	—	—		6,217		—		—		6,217
Dividends declared on common stock and equivalents	—	—		(4,572)		(3,008)		—		(7,580)
Currency translation adjustment	—	—		—		—		4,731		4,731
Balance at June 28, 2025	27,923,753	$	279	$	3,791	$	(697,557)	$	7,489	$	(685,998)

See accompanying notes to consolidated financial statements.

WINGSTOP INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(amounts in thousands)

(Unaudited)


	Twenty-Six Weeks Ended
	June 28, 2025		June 29, 2024

Operating activities
Net income	$	119,028	$	56,232
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	12,448		8,571
Deferred income taxes	12,690		905
Stock-based compensation expense	11,529		8,738
Loss on disposal of assets	6,535		—
Gain on sale of investment	(92,485)		—
Amortization of debt issuance costs	1,548		1,037

Changes in operating assets and liabilities:
Accounts receivable	(8,729)		(3,341)
Prepaid expenses and other assets	(17,148)		(3,040)
Advertising fund assets and liabilities, net	(17,519)		3,892
Accounts payable and other current liabilities	(716)		3,157
Deferred revenue	4,034		3,274
Other non-current liabilities	661		1,412
Cash provided by operating activities	31,876		80,837

Investing activities
Purchases of property and equipment	(22,381)		(21,459)
Acquisition of restaurants from franchisee	(9,221)		(3,292)
Proceeds from sales of assets	17,330		—
Payments for investments	(76,513)		(500)
Proceeds from sale of investments	107,700		—
Cash (used in) provided by investing activities	16,915		(25,251)

Financing activities


Proceeds from exercise of stock options	855		1,254


Purchases of common stock	(120,772)		(29,220)
Tax payments for restricted stock upon vesting	(13,599)		(4,118)
Dividends paid	(15,636)		(13,077)
Cash used in financing activities	(149,152)		(45,161)

Net change in cash, cash equivalents, and restricted cash	(100,361)		10,425
Cash, cash equivalents, and restricted cash at beginning of period	359,574		119,676
Cash, cash equivalents, and restricted cash at end of period	$	259,213	$	130,101

Supplemental information:
Accrued capital expenditures	$	655	$	3,946

See accompanying notes to consolidated financial statements.

WINGSTOP INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

(1) Basis of Presentation and Update to Significant Accounting Policies

Nature of operations. Wingstop Inc., together with its consolidated subsidiaries (collectively, “Wingstop” or the “Company”), is in the business of franchising and operating Wingstop restaurants. As of June 28, 2025, the Company had a total of 2,818 restaurants system-wide. The Company’s restaurant base is approximately 98% franchised, with 2,764 franchised locations (including 407 restaurants in international locations and U.S. territories) and 54 company-owned restaurants as of June 28, 2025.

Basis of presentation. The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Consequently, financial information and disclosures normally included in financial statements prepared annually in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted. Balance sheet amounts are as of June 28, 2025 and December 28, 2024, and operating results are for the thirteen and twenty-six weeks ended June 28, 2025 and June 29, 2024.

Certain prior period information on the Consolidated Balance Sheets have been reclassified to conform to the current presentation.

In the Company’s opinion, all necessary adjustments have been made for the fair presentation of the results of the interim periods presented. The results of operations for such interim periods are not necessarily indicative of the results to be expected for the full year. The accompanying interim unaudited consolidated financial statements should be read in conjunction with the audited financial statements and the related notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2024 (the “Annual Report”).

Fiscal year. The Company uses a 52- or 53-week fiscal year that ends on the last Saturday of the calendar year. Fiscal years 2025 and 2024 each have 52 weeks.

Cash, Cash Equivalents, and Restricted Cash. Cash, cash equivalents, and restricted cash within the Consolidated Balance Sheets and the Consolidated Statements of Cash Flows as of June 28, 2025 and December 28, 2024 were as follows (in thousands):


	June 28, 2025		December 28, 2024
Cash and cash equivalents	$	227,943	$	315,910
Restricted cash	25,994		20,868
Restricted cash, included in Advertising fund assets, restricted	5,276		22,796
Total cash, cash equivalents, and restricted cash	$	259,213	$	359,574

Recently issued accounting pronouncements. We reviewed all recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact on our consolidated financial statements. There have been no changes to the recently issued accounting pronouncements not yet adopted that were previously disclosed in the Annual Report.

(2) Earnings per Share

Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of shares of common stock outstanding for the reporting period. Diluted earnings per share reflects the potential dilution that could occur if securities convertible into, or other contracts to issue, common stock were exercised or converted into common stock. For the calculation of diluted earnings per share, the basic weighted average number of shares is increased by the dilutive effect of the exercise and vesting of stock options and service-based and performance-based restricted stock units, respectively, as determined using the treasury stock method.

WINGSTOP INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands):


	Thirteen Weeks Ended		Twenty-Six Weeks Ended
	June 28, 2025	June 29, 2024	June 28, 2025	June 29, 2024
Basic weighted average shares outstanding	27,912	29,343	28,149	29,346
Dilutive shares	85	114	106	122
Diluted weighted average shares outstanding	27,997	29,457	28,255	29,468

We had approximately 15,000 shares pursuant to equity awards outstanding during the thirteen weeks ended June 28, 2025, and approximately 4,000 and 28,000 shares pursuant to equity awards outstanding during the twenty-six weeks ended June 28, 2025 and June 29, 2024, respectively, that were excluded from the dilutive earnings per share calculation because the effect would have been anti-dilutive. No shares pursuant to equity awards were excluded from the dilutive earnings per share calculation during the thirteen weeks ended June 29, 2024.

(3) Stockholders’ Deficit

Dividends

In connection with the Company’s regular dividend program, our Board of Directors declared a quarterly dividend of $0.27 per share of common stock in the second quarter of 2025, resulting in a total dividend payment of approximately $7.5 million.

Subsequent to the second quarter, on July 29, 2025, our Board of Directors declared a regular quarterly dividend of $0.30 per share of common stock for stockholders of record as of August 15, 2025. The regular quarterly dividend is to be paid on September 5, 2025, totaling approximately $8.4 million.

Share Repurchase Program

In August 2023, the Company announced a share repurchase program (the “Share Repurchase Program”), authorizing the repurchase of up to $250.0 million of its outstanding shares of common stock. On December 5, 2024, the Company’s Board of Directors authorized the purchase of an additional $500.0 million of its outstanding shares of common stock under the Share Repurchase Program.

On December 9, 2024, the Company entered into an accelerated share repurchase agreement (the “ASR Agreement”) with a third-party financial institution to repurchase $250.0 million of the Company’s common stock under its Share Repurchase Program. Pursuant to the terms of the ASR Agreement, the Company paid the financial institution $250.0 million and, on December 9, 2024, the Company received and retired 551,325 shares of its common stock. The final settlement under the ASR Agreement occurred on February 20, 2025, and the Company received and retired an additional 317,202 shares of common stock. In connection with the ASR Agreement, the Company received and retired a total of 868,527 shares of common stock at an average price of $287.84 per share. The total number of shares repurchased under the ASR Agreement was based on a daily volume-weighted average share price during the valuation period specified in the ASR Agreement, less a discount and subject to adjustments.

During the twenty-six weeks ended June 28, 2025, in addition to the settlement of the ASR agreement, the Company repurchased and retired 512,810 shares of its common stock at an average price of $233.54 per share. As of June 28, 2025, $191.3 million remained available under the Share Repurchase Program.

(4) Fair Value Measurements

Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. Assets and liabilities are classified using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value as follows:

Level 1 — Unadjusted quoted prices for identical instruments traded in active markets.

Level 2 — Observable market-based inputs or unobservable inputs corroborated by market data.

WINGSTOP INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

Level 3 — Unobservable inputs reflecting management’s estimates and assumptions.

The carrying values of cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to their short-term nature. Fair value of debt and the investment in debt securities of the Company’s United Kingdom master franchisee, Lemon Pepper Holdings Ltd. (“LPH”), are determined on a non-recurring basis, which results are summarized as follows (in thousands):


	Fair Value Hierarchy	June 28, 2025				December 28, 2024
		Carrying Value		Fair Value		Carrying Value		Fair Value
Securitized Financing Facility:
2020-1 Class A-2 Senior Secured Notes (1)	Level 2	$	472,800	$	447,505	$	472,800	$	439,846
2022-1 Class A-2 Senior Secured Notes (1)	Level 2	$	248,125	$	233,535	$	248,125	$	230,905
2024-1 Class A-2 Senior Secured Notes (1)	Level 2	$	500,000	$	508,550	$	500,000	$	496,050
Investments in debt securities (2)	Level 3	$	87,239	$	87,239	$	3,699	$	4,560

(1) The fair values of the 2020-1, 2022-1, and 2024-1 Class A-2 Senior Secured Notes were estimated using available market information.

(2) The fair value approximates discounted cash flows using current market rates for debt investments with similar maturities and credit risk. Refer to Note 9 for additional information regarding the Company’s investments.

The Company also measures certain non-financial assets (primarily long-lived assets, intangible assets, and goodwill) at fair value on a non-recurring basis in connection with its periodic evaluations of such assets for potential impairment.

(5) Income Taxes

Income tax expense and the effective tax rate were $10.0 million and 27.2%, respectively, for the thirteen weeks ended June 28, 2025, and $9.0 million and 24.7%, respectively, for the thirteen weeks ended June 29, 2024. Income tax expense and the effective tax rate were $40.9 million and 25.6%, respectively, for the twenty-six weeks ended June 28, 2025, and $18.8 million and 25.0%, respectively, for the twenty-six weeks ended June 29, 2024. The increase in the effective tax rate is primarily due to the impact of nondeductible expenses for executive compensation as compared to the prior year period. The increase in total tax expense for the twenty-six weeks ended June 28, 2025 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.

WINGSTOP INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

(6) Debt Obligations

Long-term debt consisted of the following components (in thousands):


	June 28, 2025		December 28, 2024
2020-1 Class A-2 Senior Secured Notes	$	472,800	$	472,800
2022-1 Class A-2 Senior Secured Notes	248,125		248,125
2024-1 Class A-2 Senior Secured Notes	500,000		500,000
Debt issuance costs, net of amortization	(13,294)		(14,724)
Total debt	1,207,631		1,206,201

The Company’s outstanding debt was issued by Wingstop Funding LLC, a limited-purpose, bankruptcy-remote, wholly-owned indirect subsidiary of Wingstop Inc. and consists of (i) Series 2020-1 2.84% Fixed Rate Senior Secured Notes, Class A-2 (the “2020 Class A-2 Notes”), (ii) Series 2022-1 3.734% Fixed Rate Senior Secured Notes, Class A-2 (the “2022 Class A-2 Notes”), (iii) Series 2024-1 5.858% Fixed Rate Senior Secured Notes, Class A-2 (the “2024 Class A-2 Notes”), and (iv) a revolving financing facility of Series 2022-1 Variable Funding Senior Notes, Class A-1 (the “Variable Funding Notes”), which permits borrowings of up to a maximum principal amount of $300 million, subject to certain borrowing conditions, a portion of which may be used to issue letters of credit.

No borrowings were outstanding under the Variable Funding Notes as of June 28, 2025 and December 28, 2024.

As of June 28, 2025, the Company’s leverage ratio under the 2020 Class A-2 Notes, the 2022 Class A-2 Notes, and the 2024 Class A-2 Notes was 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 $1.2 billion 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.

The 2020 Class A-2 Notes, 2022 Class A-2 Notes, and 2024 Class A-2 Notes were issued in securitization transactions and are guaranteed by certain limited-purpose, bankruptcy-remote, wholly-owned indirect subsidiaries of the Company and secured by a security interest in substantially all of their assets, including certain domestic and foreign revenue-generating assets, consisting principally of franchise-related agreements, intellectual property, and vendor rebate contracts.

(7) Commitments and Contingencies

The Company is subject to legal proceedings, claims, and liabilities, including claims and actions resulting from employment-related and franchise-related matters, which arise in the ordinary course of business and are generally covered by insurance. In the opinion of management, the amount of ultimate liability with respect to such actions is not likely to have a material adverse impact on the Company’s financial position, results of operations, or cash flows.

(8) Stock-Based Compensation

During the twenty-six weeks ended June 28, 2025, the Company granted 46,650 restricted stock units (“RSUs”) to certain employees. The RSUs granted generally vest ratably over a three-year period subsequent to the grant date and had a weighted-average grant-date fair value of $224.43 per unit.

In addition, the Company granted 46,591 performance stock units (“PSUs”) to certain employees during the twenty-six weeks ended June 28, 2025. Of the total PSUs granted, 41,510 PSUs are subject to a service condition and a performance vesting condition based on return on incremental invested capital (“ROIIC PSUs”). The ROIIC PSUs are generally eligible to cliff-vest approximately three years from the grant date, and the maximum vesting percentage that could be realized for each of the ROIIC PSUs is 250% based on the level of performance achieved for the awards. The remaining 5,081 PSUs granted are subject to a service condition and a performance vesting condition based on the number of net new restaurants opened over the performance period (“NNR PSUs”). The NNR PSUs vest ratably over a three-year period, and the maximum vesting percentage that could be realized for each of the NNR PSUs is 100% based on the level of performance achieved for the awards. The PSUs had a weighted-average grant-date fair value of $219.62 per unit. Total compensation cost for the PSUs is determined based on the most likely outcome of the performance condition and the number of awards expected to vest based on the outcome.

WINGSTOP INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

Total compensation expense related to all share-based awards, net of forfeitures recognized, was $11.5 million and $8.7 million for the twenty-six weeks ended June 28, 2025 and June 29, 2024, respectively, and was included in Selling, general and administrative (“SG&A”) expense in the Consolidated Statements of Comprehensive Income.

(9) Investments

In the first fiscal quarter of 2025, LPH, which is an unconsolidated equity method investment of the Company, completed a transaction to sell all its outstanding equity to a third party. The Company received proceeds of $107.7 million in the fiscal first quarter 2025 and recognized a gain of $97.2 million in “Investment income, net” on the Consolidated Statements of Comprehensive Income. The Company reinvested $75.4 million in a newly formed entity for an 18.75% non-controlling equity interest.

Substantially all of the reinvestment in the newly formed entity consisted of preference shares, which will be accounted for as held-to-maturity debt securities, recorded on an amortized cost basis. Interest income related to the securities will be recognized using the effective interest method in “Interest expense, net” on the Consolidated Statements of Comprehensive Income. The fair value of the debt securities approximates the current carrying value and was determined using Level 3 inputs. Held-to-maturity debt securities are evaluated for credit losses on a quarterly basis under the current expected credit loss (“CECL”) methodology with an allowance recorded in “Investments” on the Consolidated Balance Sheets for expected lifetime credit losses. When evaluating an investment for its current expected credit losses, the Company reviews factors such as credit ratings, term and macroeconomic trends, including current conditions and forecasts to the extent they are reasonable and supportable. In connection with the investment in preference shares during the fiscal first quarter 2025, the Company recorded a provision for credit losses of $4.7 million in “Investment income, net” on the Consolidated Statements of Comprehensive Income.

In addition, the Company received 18.75% of the outstanding common shares, which will be accounted for using the equity method of accounting, under which the Company’s share of the income of the investee will be recorded in “Investment income” on the Consolidated Statements of Comprehensive Income.

(10) Revenue from Contracts with Customers

The following table represents a disaggregation of revenue from contracts with customers for the thirteen and twenty-six weeks ended June 28, 2025 and June 29, 2024 (in thousands):


	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024
Royalty revenue	$	72,905	$	64,201	$	144,853	$	125,393
Advertising fees and related income	61,962		54,654		124,234		104,803
Franchise fees	1,531		1,440		2,931		2,682

Franchise fee, development fee, and international territory fee payments received by the Company are recorded as deferred revenue on the Consolidated Balance Sheets, which represents a contract liability. Deferred revenue is reduced as fees are recognized in revenue over the term of the franchise license for the respective restaurant. As the term of the franchise license is typically ten years, substantially all of the franchise fee revenue recognized in the thirteen and twenty-six weeks ended June 28, 2025 was included in the deferred revenue balance as of December 28, 2024. Approximately $12.7 million and $13.5 million of deferred revenue as of June 28, 2025 and December 28, 2024, respectively, relates to restaurants that have not yet opened, so the fees are not yet being amortized. The weighted average remaining amortization period for deferred franchise and renewal fees related to open restaurants is 7.5 years. The Company did not have any material contract assets as of June 28, 2025.

WINGSTOP INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

(11) Acquisitions of Company-owned Restaurants

The Company acquired three existing restaurants from a franchisee during the twenty-six weeks ended June 28, 2025. The aggregate purchase price was $9.2 million and was funded by cash flow from operations. The following table summarizes the allocations of the purchase price to the estimated fair value of assets acquired and liabilities assumed at the date of the acquisition (in thousands):


	Purchase Price Allocation
Working capital	$	36
Property and equipment	102
Reacquired franchise rights	4,590
Goodwill	4,493


Total purchase price	$	9,221

The excess of the purchase price over the aggregate fair value of assets acquired was allocated to goodwill and is attributable to the benefits expected as a result of the acquisition, including sales and unit growth opportunities. All of the goodwill from the acquisition is expected to be deductible for federal income tax purposes.

Pro-forma financial information of the combined entities is not presented due to the immaterial impact of the financial results of the acquisition on our consolidated financial statements.

WINGSTOP INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

(12) Segment Information

The Company has one reportable segment, and the measure of restaurant segment assets is reported as Total assets on the Consolidated Balance Sheets.

Financial information for the Company’s reportable segment is as follows (in thousands):


	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024
Revenue:
Royalty revenue, franchise fees and other	$	79,889	$	71,160	$	158,664	$	138,257
Advertising fees	61,962		54,654		124,234		104,803
Company-owned restaurant sales	32,478		29,885		62,525		58,428
Total revenue	174,329		155,699		345,423		301,488
Cost of sales:
Food, beverage and packaging costs	11,937		10,695		23,178		20,596
Labor	7,441		6,987		14,594		13,663
Other operating costs	5,821		5,757		11,012		11,167
Vendor rebates	(794)		(766)		(1,544)		(1,482)
Total cost of sales	24,405		22,673		47,240		43,944
Advertising expenses	65,533		58,548		131,328		111,740
Selling, general & administrative:
Transaction costs	—		—		497		—

System implementation costs	1,534		—		2,846		—
Stock-based compensation expense	6,217		4,926		11,529		8,738
Other segment expense (1)	25,186		23,171		49,505		44,537
Total selling, general and administrative	32,937		28,097		64,377		53,275
Depreciation and amortization	6,220		5,161		12,448		8,571
Loss on disposal of assets	—		—		6,535		—
Interest expense, net	8,469		5,200		17,379		9,744

Investment income, net	—		(471)		(93,839)		(774)
Income tax expense	10,002		9,006		40,927		18,756
Net income	$	26,763	$	27,485	$	119,028	$	56,232

(1) Other segment expense consists primarily of corporate related items such as headcount-related expenses, office rent expense, and other overhead costs.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of the financial condition and results of operations of Wingstop Inc. (collectively with its direct and indirect subsidiaries on a consolidated basis, “Wingstop,” the “Company,” “we,” “our,” or “us”) should be read in conjunction with the accompanying unaudited consolidated financial statements and related notes in Part I, Item 1 of this Quarterly Report on Form 10-Q (this “Quarterly Report”) and with the audited consolidated financial statements and the related notes included in our Annual Report on Form 10-K for the fiscal year ended December 28, 2024 (our “Annual Report”). The statements in this discussion regarding industry outlook, our expectations regarding our future performance, liquidity and capital resources, and other non-historical statements are forward-looking statements. These forward-looking statements are subject to risks and uncertainties, including, but not limited to, the risks and uncertainties described in “Special Note Regarding Forward-Looking Statements,” below and “Risk Factors” beginning on page 11 of our Annual Report. Our actual results may differ materially from those contained in or implied by any forward-looking statements.

We operate on a 52- or 53-week fiscal year ending on the last Saturday of each calendar year. Our fiscal quarters are comprised of 13 weeks, with the exception of the fourth quarter of a 53-week year, which contains 14 weeks. Fiscal years 2025 and 2024 each contain 52 weeks.

Overview

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.

The Company is primarily a franchisor, with approximately 98% of Wingstop’s restaurants currently owned and operated by independent franchisees. We believe our asset-light, highly-franchised business model generates strong operating margins and requires low capital expenditures, creating stockholder value through strong and consistent free cash flow and capital-efficient growth.

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

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

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

•Domestic same store sales decreased 1.9%;

•Total revenue increased 12.0% to $174.3 million;

•Net income decreased 2.6% to $26.8 million, or $0.96 per diluted share;

•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

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

Highlights for the year-to-date second quarter of 2025 compared to the year-to-date second quarter of 2024:

•System-wide sales increased 14.8% to $2.6 billion;

•255 net new openings in the year-to-date second quarter of 2025;

•Domestic same store sales decreased 0.7%;

•Total revenue increased 14.6% to $345.4 million;

•Net income increased 111.7% to $119.0 million, or $4.21 per diluted share;

•Adjusted net income and adjusted earnings per diluted share, both non-GAAP measures, were $56.2 million, or $1.99 per diluted share; and

•Adjusted EBITDA, a non-GAAP measure, increased 16.3% to $118.7 million.

Key Performance Indicators

Key measures that we use in evaluating our restaurants and assessing our business include the following:

Number of restaurants. Management reviews the number of new restaurants, the number of closed restaurants, and the number of acquisitions and divestitures of restaurants to assess net new restaurant growth.


	Thirteen Weeks Ended		Twenty-Six Weeks Ended
	June 28, 2025	June 29, 2024	June 28, 2025	June 29, 2024
Domestic Franchised Activity:
Beginning of period	2,250	1,924	2,154	1,877
Openings	110	65	206	112
Closures	—	—	—	—
Acquired by Company	(3)	(1)	(3)	(1)

Restaurants end of period	2,357	1,988	2,357	1,988

Domestic Company-Owned Activity:
Beginning of period	51	50	50	49
Openings	1	1	2	2
Closures	(1)	—	(1)	—
Acquired by Company	3	1	3	1

Restaurants end of period	54	52	54	52

Total Domestic Restaurants	2,411	2,040	2,411	2,040

International Franchised Activity (1):
Beginning of period	388	305	359	288
Openings	21	10	51	27
Closures	(2)	(3)	(3)	(3)

Restaurants end of period	407	312	407	312

Total System-wide Restaurants	2,818	2,352	2,818	2,352

(1) Including U.S. territories.

System-wide sales. System-wide sales represents net sales for all of our company-owned and franchised restaurants, as reported by franchisees. This measure allows management to better assess changes in our royalty revenue, our overall store performance, the health of our brand, and the strength of our market position relative to competitors. Our system-wide sales growth is driven by new restaurant openings as well as increases in same store sales.

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.

Domestic same store sales. Domestic same store sales reflects the change in year-over-year sales for the same store restaurant base. We define the same store restaurant base to include those restaurants open for at least 52 full weeks. This measure highlights the performance of existing restaurants, while excluding the impact of new restaurant openings and permanent closures. We review same store sales for domestic company-owned restaurants as well as system-wide domestic restaurants. Domestic same store sales growth is driven by increases in transactions and average transaction size. Transaction size increases are driven by price increases or favorable mix shift from either an increase in items purchased or shifts into higher priced items.

EBITDA and Adjusted EBITDA. We define EBITDA as net income before interest expense, net, income tax expense (benefit), and depreciation and amortization. We define Adjusted EBITDA as net income before interest expense, net, income tax expense (benefit), and depreciation and amortization, with further 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, and stock-based compensation expense. Adjusted EBITDA may not be comparable to other similarly titled captions of other companies due to differences in methods of calculation. For a reconciliation of net income to EBITDA and Adjusted EBITDA and for further discussion of EBITDA and Adjusted EBITDA as non-GAAP measures and how we utilize them, see footnote 2 below.

Adjusted Net Income and Adjusted Earnings Per Diluted Share. We define Adjusted net income as net income adjusted for losses on debt extinguishment and financing transactions, transaction costs, costs and fees associated with investments in our strategic initiatives, gains and losses on non-recurring transactions, certain system implementation costs, and related tax adjustments that management believes are not indicative of the Company’s core operating results or business outlook over the long term. We define Adjusted earnings per diluted share as Adjusted net income divided by weighted average diluted share count. For a reconciliation of net income to Adjusted net income and for further discussion of Adjusted net income and Adjusted earnings per diluted share as non-GAAP measures and how we utilize them, see footnote 3 below.

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):


	Thirteen Weeks Ended						Twenty-Six Weeks Ended
	June 28, 2025			June 29, 2024			June 28, 2025			June 29, 2024
Number of system-wide restaurants open at end of period	2,818			2,352			2,818			2,352
System-wide sales (1)	$	1,339,829		$	1,175,910		$	2,640,058		$	2,299,518
Domestic restaurant AUV	$	2,112		$	2,032		$	2,112		$	2,032
Domestic same store sales growth	(1.9)		%	28.7		%	(0.7)		%	25.1		%
Company-owned domestic same store sales growth	3.6		%	14.1		%	2.5		%	10.1		%
Total revenue	$	174,329		$	155,699		$	345,423		$	301,488
Net income	$	26,763		$	27,485		$	119,028		$	56,232
Adjusted EBITDA (2)	$	59,205		$	51,778		$	118,703		$	102,041
Adjusted net income (3)	$	27,929		$	27,485		$	56,246		$	56,232

(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.

(2) EBITDA and Adjusted EBITDA are supplemental measures of our performance that are not required by, or presented in accordance with, GAAP. EBITDA and Adjusted EBITDA should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP, or as an alternative to cash flow from operating activities as a measure of our liquidity.

We caution investors that amounts presented in accordance with our definitions of EBITDA and Adjusted EBITDA may not be comparable to similar measures disclosed by our competitors, because not all companies and analysts calculate EBITDA and Adjusted EBITDA in the same manner. We present EBITDA and Adjusted EBITDA because we consider them to be important supplemental measures of our performance and believe they are frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. Management believes that investors’ understanding of our performance is enhanced by including these non-GAAP financial measures as a reasonable basis for comparing our ongoing results of operations. Many investors are interested in understanding the performance of our business by comparing our results from ongoing operations on a period-over-period basis and would ordinarily add back non-cash expenses such as depreciation and amortization, as well as items that are not part of normal day-to-day operations of our business.

Management uses EBITDA and Adjusted EBITDA:

•as a measurement of operating performance because we believe they assist us in comparing the operating performance of our restaurants on a consistent basis, as they remove the impact of items not directly resulting from our core operations;

•for planning purposes, including the preparation of our internal annual operating budget and financial projections;

•to evaluate the performance and effectiveness of our operational strategies;

•to evaluate our capacity to fund capital expenditures and expand our business; and

•to calculate incentive compensation payments for our employees, including assessing performance under our annual incentive compensation plan.

By providing these non-GAAP financial measures, together with a reconciliation to the most comparable GAAP measure, we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation, or as an alternative to, or a substitute for net income or other financial statement data presented in our consolidated financial statements as indicators of financial performance. Some of the limitations are:

•such measures do not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;

•such measures do not reflect changes in, or cash requirements for, our working capital needs;

•such measures do not reflect the interest expense or the cash requirements necessary to service interest or principal payments on our debt;

•such measures do not reflect our tax expense or the cash requirements to pay our taxes;

•although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and such measures do not reflect any cash requirements for such replacements; and

•other companies in our industry may calculate such measures differently than we do, limiting their usefulness as comparative measures.

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, 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.

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):


	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024
Net income	$	26,763	$	27,485	$	119,028	$	56,232
Interest expense, net	8,469		5,200		17,379		9,744
Income tax expense	10,002		9,006		40,927		18,756
Depreciation and amortization	6,220		5,161		12,448		8,571
EBITDA	$	51,454	$	46,852	$	189,782	$	93,303
Additional adjustments:
Transaction costs (a)	—		—		497		—
Loss on disposal of building (b)	—		—		6,534		—
Gain on sale of investment (c)	—		—		(92,485)		—

System implementation costs (d)	1,534		—		2,846		—
Stock-based compensation expense (e)	6,217		4,926		11,529		8,738
Adjusted EBITDA	$	59,205	$	51,778	$	118,703	$	102,041

(a) Represents non-recurring transaction costs that are not part of our ongoing operations and were incurred to execute the sale and subsequent reinvestment of the Company’s unconsolidated equity method investment in LPH, the Company’s United Kingdom master franchisee, during the fiscal first quarter 2025; all transaction costs are included in Selling, general and administrative on the Consolidated Statements of Comprehensive Income.

(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.

(c) Represents a non-recurring gain related to the sale of the Company’s unconsolidated equity method investment in LPH during the fiscal first quarter 2025, which was included in Investment income, net on the Consolidated Statements of Comprehensive Income. Refer to Note 9 in the Consolidated Financial Statements for additional information.

(d) System implementation costs represent non-recurring expenses incurred related to the development and implementation of new enterprise resource planning and human capital management technology, which are included in Selling, general and administrative on the Consolidated Statements of Comprehensive Income.

(e) Includes non-cash, stock-based compensation, net of forfeitures.

(3) Adjusted net income and adjusted earnings per diluted share are supplemental measures of operating performance that do not represent and should not be considered alternatives to net income and earnings per share, as determined by GAAP. These measures have not been prepared in accordance with Article 11 of Regulation S-X promulgated under the Securities Act of 1933, as amended (the “Securities Act”). The Company believes the use of adjusted net income allows investors and analysts to better understand the results of the operations of the Company, by excluding certain items that have a disproportionate impact on the Company’s results for a particular period. Additionally, management believes adjusted net income and adjusted earnings per diluted share supplement GAAP measures and enable management to more effectively evaluate the Company’s performance period-over-period and relative to competitors.

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):


	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024
Numerator:
Net income	$	26,763	$	27,485	$	119,028	$	56,232
Adjustments:
Transaction costs (a)	—		—		497		—
Loss on disposal of building (b)	—		—		6,534		—
Gain on sale of investment (c)	—		—		(92,485)		—
System implementation costs (d)	1,534		—		2,846		—
Tax effect of adjustments (e)	(368)		—		19,826		—
Adjusted net income	$	27,929	$	27,485	$	56,246	$	56,232

Denominator:
Weighted-average shares outstanding - diluted	27,997		29,457		28,255		29,468

Adjusted earnings per diluted share	$	1.00	$	0.93	$	1.99	$	1.91

(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.

Results of Operations

Thirteen Weeks Ended June 28, 2025 compared to Thirteen Weeks Ended June 29, 2024

The following table sets forth our results of operations for the thirteen weeks ended June 28, 2025 and June 29, 2024 (dollars in thousands):


	Thirteen Weeks Ended				Increase / (Decrease)
	June 28, 2025		June 29, 2024		$		%
Revenue:
Royalty revenue, franchise fees and other	$	79,889	$	71,160	$	8,729	12.3	%
Advertising fees	61,962		54,654		7,308		13.4	%
Company-owned restaurant sales	32,478		29,885		2,593		8.7	%
Total revenue	174,329		155,699		18,630		12.0	%
Costs and expenses:
Cost of sales (1)	24,405		22,673		1,732		7.6	%
Advertising expenses	65,533		58,548		6,985		11.9	%
Selling, general and administrative	32,937		28,097		4,840		17.2	%
Depreciation and amortization	6,220		5,161		1,059		20.5	%

Total costs and expenses	129,095		114,479		14,616		12.8	%
Operating income	45,234		41,220		4,014		9.7	%
Interest expense, net	8,469		5,200		3,269		62.9	%

Investment income, net	—		(471)		471		—	%
Income before income tax expense	36,765		36,491		274		0.8	%
Income tax expense	10,002		9,006		996		11.1	%
Net income	$	26,763	$	27,485	$	(722)	(2.6)	%

(1) Cost of sales includes all operating expenses of company-owned restaurants, including advertising expenses, but excludes depreciation and amortization, which are presented separately.

Revenue

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.

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%.

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.

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.

Cost of sales

The table below presents the major components of cost of sales (dollars in thousands):


	Thirteen Weeks Ended
	June 28, 2025				June 29, 2024
	In dollars		As a % of company-owned restaurant sales		In dollars		As a % of company-owned restaurant sales

Food, beverage and packaging costs	$	11,937	36.8	%	$	10,695	35.8	%
Labor costs	7,441		22.9	%	6,987		23.4	%
Other restaurant operating expenses	5,821		17.9	%	5,757		19.3	%
Vendor rebates	(794)		(2.4)	%	(766)		(2.6)	%


Total cost of sales	$	24,405	75.2	%	$	22,673	75.9	%

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.

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.

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.

Advertising expenses

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.

Selling, general and administrative (“SG&A”)

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.

Depreciation and amortization

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.

Interest expense, net

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.

Income tax expense

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.

Twenty-Six Weeks Ended June 28, 2025 compared to Twenty-Six Weeks Ended June 29, 2024

The following table sets forth our results of operations for the twenty-six weeks ended June 28, 2025 and June 29, 2024 (dollars in thousands):


	Twenty-Six Weeks Ended				Increase / (Decrease)
	June 28, 2025		June 29, 2024		$		%
Revenue:
Royalty revenue, franchise fees and other	$	158,664	$	138,257	$	20,407	14.8	%
Advertising fees	124,234		104,803		19,431		18.5	%
Company-owned restaurant sales	62,525		58,428		4,097		7.0	%
Total revenue	345,423		301,488		43,935		14.6	%
Costs and expenses:
Cost of sales (1)	47,240		43,944		3,296		7.5	%
Advertising expenses	131,328		111,740		19,588		17.5	%
Selling, general and administrative	64,377		53,275		11,102		20.8	%
Depreciation and amortization	12,448		8,571		3,877		45.2	%
Loss on disposal of assets	6,535		—		6,535		100.0	%
Total costs and expenses	261,928		217,530		44,398		20.4	%
Operating income	83,495		83,958		(463)		(0.6)	%
Interest expense, net	17,379		9,744		7,635		78.4	%

Investment income, net	(93,839)		(774)		(93,065)		NM*
Income before income tax expense	159,955		74,988		84,967		113.3	%
Income tax expense	40,927		18,756		22,171		118.2	%
Net income	$	119,028	$	56,232	$	62,796	111.7	%

(1) Cost of sales includes all operating expenses of company-owned restaurants, including advertising expenses, and excludes depreciation and amortization, which are presented separately.

*Not meaningful.

Revenue

During the twenty-six weeks ended June 28, 2025, total revenue was $345.4 million, an increase of $43.9 million, or 14.6%, compared to $301.5 million in the comparable period in 2024.

Royalty revenue, franchise fees and other increased $20.4 million, of which $20.3 million was due to net new franchise restaurant development, partially offset by a decrease of $1.1 million due to a decline in domestic same store sales growth of 0.7%.

Advertising fees increased $19.4 million due to a 14.8% increase in system-wide sales during the twenty-six weeks ended June 28, 2025, and $7.9 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.

Company-owned restaurant sales increased $4.1 million, primarily due to company-owned same store sales growth of 2.5%, which was driven primarily by an increase in transactions.

Cost of sales

The table below presents the major components of cost of sales (dollars in thousands):


	Twenty-Six Weeks Ended
	June 28, 2025				June 29, 2024
	In dollars		As a % of company-owned restaurant sales		In dollars		As a % of company-owned restaurant sales
Food, beverage and packaging costs	$	23,178	37.1	%	$	20,596	35.3	%
Labor costs	14,594		23.3	%	13,663		23.4	%
Other restaurant operating expenses	11,012		17.6	%	11,167		19.1	%
Vendor rebates	(1,544)		(2.5)	%	(1,482)		(2.5)	%
Total cost of sales	$	47,240	75.5	%	$	43,944	75.2	%

Food, beverage and packaging costs as a percentage of company-owned restaurant sales were 37.1% in the twenty-six weeks ended June 28, 2025, compared to 35.3% in the comparable period in 2024. The 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, as well as a 2.6% increase in the cost of bone-in chicken wings as compared to the prior year period.

Labor costs as a percentage of company-owned restaurant sales were 23.3% for the twenty-six weeks ended June 28, 2025, compared to 23.4% in the comparable period in 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, offset by an increase in company-owned restaurant wages.

Other restaurant operating expenses as a percentage of company-owned restaurant sales were 17.6% for the twenty-six weeks ended June 28, 2025, comparable to 19.1% in the prior fiscal year period in 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.

Advertising expenses

During the twenty-six weeks ended June 28, 2025, advertising expenses were $131.3 million, an increase of $19.6 million compared to $111.7 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.

Selling, general and administrative (SG&A)

During the twenty-six weeks ended June 28, 2025, SG&A expense was $64.4 million, an increase of $11.1 million compared to $53.3 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 $7.5 million to support the growth in our business, and an increase in consulting and other professional fees of $3.3 million associated with our strategic initiatives, which includes $2.8 million of system implementation costs.

Depreciation and amortization

During the twenty-six weeks ended June 28, 2025, depreciation and amortization was $12.4 million, an increase of $3.9 million compared to $8.6 million in the comparable period in 2024. The increase in depreciation and amortization was primarily due to capital expenditures related to our technology investments.

Interest expense, net

During the twenty-six weeks ended June 28, 2025, interest expense, net was $17.4 million, an increase of $7.6 million compared to $9.7 million of interest expense, net in the comparable period in 2024. The increase was primarily driven by $15.0 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 twenty-six weeks ended June 29, 2024.

Investment income, net

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.

Income tax expense

During the twenty-six weeks ended June 28, 2025, we recognized income tax expense of $40.9 million yielding an effective tax rate of 25.6%, which is comparable to an effective tax rate of 25.0% in the prior year period.

Liquidity and Capital Resources

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.

Based upon current levels of operations and anticipated growth, we expect that cash flows from operations, combined with our securitized financing facility, including our Variable Funding Notes, will be sufficient to meet our capital expenditure, working capital and debt service requirements for at least the next twelve months and the foreseeable future.

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


	Twenty-Six Weeks Ended
	June 28, 2025		June 29, 2024
Net cash provided by (used in):
Operating activities	$	31,876	$	80,837
Investing activities	16,915		(25,251)
Financing activities	(149,152)		(45,161)
Net change in cash and cash equivalents	$	(100,361)	$	10,425

Operating activities. Our cash flows from operating activities are principally driven by sales at both franchise restaurants and company-owned restaurants, as well as franchise and development fees. We collect franchise royalties from our franchise owners on a weekly basis. Restaurant-level operating costs at our company-owned restaurants, unearned franchise and development fees, and corporate overhead costs also impact our cash flow from operating activities.

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.

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.

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.

Securitized financing facility. On December 3, 2024, the Company completed a securitized financing transaction, in which Wingstop Funding LLC, a limited purpose, bankruptcy-remote, indirect wholly owned subsidiary of the Company (the “Issuer”), issued $500 million of its Series 2024-1 5.858% Fixed Rate Senior Secured Notes, Class A-2 (the “2024 Class A-2 Notes”). The Issuer also increased the capacity of its revolving financing facility of Series 2022-1 Variable Funding Senior Notes, Class A-1 (the “Variable Funding Notes”) from $200 million to $300 million. Following the increase, borrowing capacity under the Variable Funding Notes permits borrowings of up to a maximum principal amount of $300 million, a portion of which may be used to issue letters of credit. The 2024 Class A-2 Notes and the Variable Funding Notes are referred to collectively as the “2024 Notes.” The proceeds from the securitized financing transaction were used to pay related transaction fees and expenses, strengthen the Company's liquidity position and for general corporate purposes, including the repurchase of shares of the Company’s common stock.

In addition to the 2024 Notes, the Company’s outstanding debt consists of its existing Series 2022-1 3.734% Fixed Rate Senior Secured Notes, Class A-2 (the “2022 Class A-2 Notes”) and Series 2020-1 2.84% Fixed Rate Senior Secured Notes, Class A-2 (the “2020 Class A-2 Notes”).

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.

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.

We do not currently expect the restrictions in our debt instruments to impact our ability to make regular quarterly dividends pursuant to our quarterly dividend program. However, any future declarations of dividends, as well as the amount and timing of such dividends, are subject to capital availability and the discretion of our Board of Directors, which must evaluate, among other things, whether cash dividends are in the best interest of the Company and our stockholders.

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.

Critical Accounting Policies and Estimates

Our consolidated financial statements and accompanying notes are prepared in accordance with GAAP. Preparing consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. These estimates and assumptions are affected by the application of our accounting policies. Critical accounting estimates are those that require application of management’s most difficult, subjective, or complex judgments, often as a result of matters that are inherently uncertain and may change in subsequent periods. While we apply our judgment based on assumptions believed to be reasonable under the circumstances, actual results could vary from these assumptions. It is possible that materially different amounts would be reported using different assumptions. Our critical accounting policies and estimates are identified and described in our annual consolidated financial statements and the related notes included in our Annual Report, and there have been no material changes since the filing of our Annual Report.

Recent Accounting Pronouncements

Refer to Note 1, Basis of Presentation, of the notes to the consolidated financial statements.

Special Note Regarding Forward-Looking Statements

This report includes statements of our expectations, intentions, plans and beliefs that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and are intended to come within the safe harbor protection provided by those sections. These statements, which involve risks and uncertainties, relate to the discussion of our business strategies and our expectations concerning future operations, margins, profitability, trends, liquidity and capital resources and to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable. These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms “may,” “will,” “should,” “expect,” “intend,” “plan,” “outlook,” “anticipate,” “believe,” “think,” “estimate,” “seek,” “predict,” “can,” “could,” “project,” “potential” or, in each case, their negative or other variations or comparable terminology, although not all forward-looking statements are accompanied by such terms. These forward-looking statements are made based on expectations and beliefs concerning future events affecting us and are subject to uncertainties, risks, and factors relating to our operations and business environments, all of which are difficult to predict and many of which are beyond our control, that could cause our actual results to differ materially from those matters expressed or implied by these forward-looking statements.

Such risks and other factors include those listed below and elsewhere in this report and our Annual Report, that could cause actual results or outcomes to differ from the results expressed or implied by forward-looking statements:

•our ability to effectively implement our growth strategy;

•our relationships with, and the performance of, our existing and new franchises and franchisees, as well as actions by franchisees that could harm our business;

•our ability to identify, recruit and contract with a sufficient number of qualified franchisees;

•risks associated with food safety, food-borne illness and other health concerns;

•our ability to successfully expand into new and existing markets;

•our ability to effectively compete within our industry;

•risks associated with changes in food and supply costs;

•risks associated with interruptions in our supply chain, including availability of food products;

•risks associated with data privacy, cybersecurity and the use and implementation of information technology, including heightened risks that may arise upon increased adoption of artificial intelligence technologies;

•risks associated with our increasing dependence on digital commerce platforms and third-party delivery service providers;

•uncertainty in the law with respect to the assignment or allocation of liabilities in the franchise business model;

•risks associated with litigation against us or our franchisees;

•risks associated with the availability and cost of labor;

•our ability to successfully advertise and market our business;

•risks associated with changes in customer preferences, perceptions and eating habits;

•risks associated with our future performance and operating results falling below the expectations of securities analysts and investors;

•risks associated with the geographic concentration of our business;

•the impact on our business from unexpected events such as changes in trade relations and policies, including tariffs, retaliatory tariffs and other trade barriers, international conflict or war and related sanctions, acts of terrorism, civil unrest, epidemics and pandemics and severe weather;

•our ability to comply with laws and government regulations, including those relating to food products, employment and franchising, advertising and consumer protection, or increased costs associated with new or changing regulations;

•our ability to maintain adequate insurance coverage for our business;

•risks associated with damage to our reputation or lack of acceptance of our brand in existing or new markets;

•risks associated with our expansion into international markets and foreign government restrictions on operations;

•our ability to attract and retain our executive officers and other key employees;

•our ability to protect our intellectual property, including trademarks, trade secrets and other proprietary rights;

•the impact on our business from environmental, social and corporate governance matters; and

•our ability to comply with the terms of our securitized debt financing and generate sufficient cash flows to satisfy our significant debt service obligations thereunder.

The above list of factors is not exhaustive. Some of these and other factors are discussed in more detail under “Risk Factors” in our Annual Report. When considering forward-looking statements in this report or that we make in other reports or statements, you should keep in mind the cautionary statements in this report and future reports we file with the SEC. Any forward-looking statements made in this report speak only as of the date of the report, unless specified otherwise. New risks and uncertainties arise from time to time, and we cannot predict when they may arise or how they may affect us. Except as required by law, we assume no obligation to update or revise any forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in any forward-looking statements, even if new information becomes available in the future.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Commodity Price Risk. We are exposed to market risks from changes in commodity prices. Many of the food products purchased by us are affected by weather, production, availability and other factors outside of our control, including inflation as compared to the prior year period. Although we enter into arrangements in an effort to mitigate the price volatility of food costs, there are no established fixed price markets for fresh bone-in chicken wings, so we may be subject to prevailing market conditions. Bone-in chicken wings accounted for approximately 20.6% and 18.9% of our company-owned restaurant cost of sales during the twenty-six weeks ended June 28, 2025 and June 29, 2024, respectively. A hypothetical 10% increase in the bone-in chicken wing costs would have increased costs of sales by approximately $1.0 million during the twenty-six weeks ended June 28, 2025. We do not engage in speculative financial transactions nor do we hold or issue financial instruments for trading purposes.

Interest Rate Risk. Our long-term debt, including current portion, consisted entirely of the $1.2 billion incurred under the 2020 Class A-2 Notes, the 2022 Class A-2 Notes, and the 2024 Class A-2 Notes as of June 28, 2025 (excluding unamortized debt issuance costs). The Company’s predominantly fixed-rate debt structure has reduced its exposure to interest rate increases that could adversely affect its earnings and cash flows, but the Company remains exposed to changes in market interest rates reflected in the fair value of the debt and to the risk that the Company may need to refinance maturing debt with new debt at a higher rate. The Company is exposed to interest rate increases under the Variable Funding Notes; however, the Company had no outstanding borrowings under its Variable Funding Notes as of June 28, 2025.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of June 28, 2025, pursuant to Rule 13a-15 under the Exchange Act. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that as of June 28, 2025, our disclosure controls and procedures are effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the SEC, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) that occurred during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

We are currently involved in various claims and legal actions that arise in the ordinary course of business, including claims and actions resulting from employment-related and franchise-related matters. None of these matters, some of which are covered by insurance, has had a material effect on us, and, as of the date of this report, we are not party to any pending legal proceedings that we believe would have a material adverse effect on our business, financial condition, results of operations or cash flows. However, a significant increase in the number of these claims or an increase in amounts owing under successful claims could materially and adversely affect our business, financial condition, results of operations or cash flows.

Item 1A. Risk Factors

A description of the risk factors associated with our business is contained in the “Risk Factors” section of our Annual Report.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

In August 2023, the Company announced the Share Repurchase Program, authorizing the repurchase of up to $250.0 million of its outstanding shares of common stock. On December 5, 2024, the Company’s Board of Directors authorized the purchase of an additional $500.0 million of its outstanding shares of common stock under the Share Repurchase Program. No shares were repurchased under the Share Repurchase Program during the fiscal second quarter 2025. As of June 28, 2025, $191.3 million remained available under the Share Repurchase Program.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

During the thirteen weeks ended June 28, 2025, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

Item 6. Exhibits

Index to Exhibits


Exhibit No.			Description
3.1*			Restated Certificate of Incorporation of Wingstop Inc., as amended through May 22, 2025.
3.2			Amended and Restated Bylaws of Wingstop Inc., effective as of May 22, 2025 , filed as Exhibit 3.2 to the Company’s Current Report on Form 8-K (File No. 001-37425) on May 2 3, 2025 and incorporated by reference herein.
31.1*			Certification of Principal Executive Officer under Section 302 of the Sarbanes–Oxley Act of 2002.
31.2*			Certification of Principal Financial Officer under Section 302 of the Sarbanes–Oxley Act of 2002.
32.1**			Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes–Oxley Act of 2002.
32.2**			Certification of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes–Oxley Act of 2002.
101 INS*			Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101 SCH*			Inline XBRL Taxonomy Extension Schema Document
101 CAL*			Inline XBRL Taxonomy Extension Calculation Linkbase Document
101 DEF*			Inline XBRL Taxonomy Extension Definition Linkbase Document
101 LAB*			Inline XBRL Taxonomy Extension Label Linkbase Document
101 PRE*			Inline XBRL Taxonomy Extension Presentation Linkbase Document
104*			Cover Page Interactive Data File (formatted as Inline XBRL and Contained in Exhibit 101)

* Filed herewith.

** Furnished, not filed.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Wingstop Inc.

(Registrant)

Date:

July 30, 2025

By:

/s/ Michael J. Skipworth

President and Chief Executive Officer

(Principal Executive Officer)

Date:

July 30, 2025

By:

/s/ Alex R. Kaleida

Chief Financial Officer

(Principal Financial and Accounting Officer)

Get the next $WING alert in real time by email

Date	Price Target	Rating	Analyst
8/15/2025	$420.00	Outperform → Strong Buy	Raymond James
7/31/2025	$410.00 → $440.00	Overweight	Barclays
7/31/2025	$367.00 → $405.00	Overweight	Morgan Stanley
7/31/2025	$400.00 → $425.00	Overweight	Stephens
7/31/2025	$330.00 → $400.00	Outperform	Bernstein
7/31/2025	$275.00 → $345.00	Market Perform	BMO Capital Markets
7/14/2025	$350.00	Hold	Melius
7/9/2025		Outperform	William Blair

SEC Form 10-Q filed by Wingstop Inc.

Crush Q3 2025 with the Best AI Superconnector

Recent Analyst Ratings for
$WING

$WING
SEC Filings

Amendment: SEC Form SCHEDULE 13G/A filed by Wingstop Inc.

SEC Form SCHEDULE 13G filed by Wingstop Inc.

SEC Form 144 filed by Wingstop Inc.

$WING
Press Releases

Wingstop Reveals Next Drop: BOGO Chicken Tenders

Wingstop Surprises Fans with Weekly "Wingstop Drops"

Wingstop Inc. Reports Fiscal Second Quarter Financial Results

$WING
Insider Trading

SVP, Chief Financial Officer Kaleida Alex gifted 100 shares, decreasing direct ownership by 1% to 8,262 units (SEC Form 4)

SVP & Chief US Fran & Dev Ops Carona Marisa sold $4,421,109 worth of shares (11,938 units at $370.34) and exercised 1,204 shares at a strike of $134.56, closing all direct ownership in the company (SEC Form 4)

SVP, Chief Financial Officer Kaleida Alex sold $2,030,888 worth of shares (5,400 units at $376.09) and exercised 719 shares at a strike of $140.94, decreasing direct ownership by 35% to 8,362 units (SEC Form 4)

$WING
Analyst Ratings

Wingstop upgraded by Raymond James with a new price target

Barclays reiterated coverage on Wingstop with a new price target

Morgan Stanley reiterated coverage on Wingstop with a new price target

$WING
Large Ownership Changes

Amendment: SEC Form SC 13G/A filed by Wingstop Inc.

Amendment: SEC Form SC 13G/A filed by Wingstop Inc.

Amendment: SEC Form SC 13G/A filed by Wingstop Inc.

$WING
Financials

Wingstop Inc. Reports Fiscal Second Quarter Financial Results

Wingstop Inc. to Announce Fiscal Second Quarter 2025 Financial Results on July 30, 2025

Wingstop Inc. Reports Fiscal First Quarter Financial Results

$WING
Leadership Updates

Bar Tender by Wingstop: The First Bar Dedicated to Chicken Tenders, Served in 12 Bold Flavors

OPI Unveils New RapiDry™ Nail Polish by Teaming Up With Wingstop to Introduce the "Snack in :60 Challenge"

Wingstop Brings Its Iconic Flavor to Paris and Fans Across the World

SEC Form 10-Q filed by Wingstop Inc.

Crush Q3 2025 with the Best AI Superconnector

Recent Analyst Ratings for $WING

$WING SEC Filings

Amendment: SEC Form SCHEDULE 13G/A filed by Wingstop Inc.

SEC Form SCHEDULE 13G filed by Wingstop Inc.

SEC Form 144 filed by Wingstop Inc.

$WING Press Releases

Wingstop Reveals Next Drop: BOGO Chicken Tenders

Wingstop Surprises Fans with Weekly "Wingstop Drops"

Wingstop Inc. Reports Fiscal Second Quarter Financial Results

$WING Insider Trading

SVP, Chief Financial Officer Kaleida Alex gifted 100 shares, decreasing direct ownership by 1% to 8,262 units (SEC Form 4)

SVP & Chief US Fran & Dev Ops Carona Marisa sold $4,421,109 worth of shares (11,938 units at $370.34) and exercised 1,204 shares at a strike of $134.56, closing all direct ownership in the company (SEC Form 4)

SVP, Chief Financial Officer Kaleida Alex sold $2,030,888 worth of shares (5,400 units at $376.09) and exercised 719 shares at a strike of $140.94, decreasing direct ownership by 35% to 8,362 units (SEC Form 4)

$WING Analyst Ratings

Wingstop upgraded by Raymond James with a new price target

Barclays reiterated coverage on Wingstop with a new price target

Morgan Stanley reiterated coverage on Wingstop with a new price target

$WING Large Ownership Changes

Amendment: SEC Form SC 13G/A filed by Wingstop Inc.

Amendment: SEC Form SC 13G/A filed by Wingstop Inc.

Amendment: SEC Form SC 13G/A filed by Wingstop Inc.

$WING Financials

Wingstop Inc. Reports Fiscal Second Quarter Financial Results

Wingstop Inc. to Announce Fiscal Second Quarter 2025 Financial Results on July 30, 2025

Wingstop Inc. Reports Fiscal First Quarter Financial Results

$WING Leadership Updates

Bar Tender by Wingstop: The First Bar Dedicated to Chicken Tenders, Served in 12 Bold Flavors

OPI Unveils New RapiDry™ Nail Polish by Teaming Up With Wingstop to Introduce the "Snack in :60 Challenge"

Wingstop Brings Its Iconic Flavor to Paris and Fans Across the World

Recent Analyst Ratings for
$WING

$WING
SEC Filings

$WING
Press Releases

$WING
Insider Trading

$WING
Analyst Ratings

$WING
Large Ownership Changes

$WING
Financials

$WING
Leadership Updates