Wingstop’s first quarter results for 2025 were met positively by the market, as management pointed to robust unit development and notable success in drawing new customers despite a challenging consumer environment. CEO Michael Skipworth acknowledged that softer consumer sentiment—particularly among lower-middle-income and Hispanic guests—impacted select regions, but emphasized that these pressures appeared localized rather than widespread. Skipworth credited the company’s record 126 new openings, higher digital engagement, and early momentum from the relaunch of crispy chicken tenders as core drivers. He stated, “Our comp of 0.5% includes impacts from the California fires, more severe winter weather events in the Southeast and the macro backdrop we’re now operating in.”
Is now the time to buy WING? Find out in our full research report (it’s free).
Wingstop (WING) Q1 CY2025 Highlights:
- Revenue: $171.1 million vs analyst estimates of $170.8 million (17.4% year-on-year growth, in line)
- Operating Margin: 22.4%, down from 29.3% in the same quarter last year
- Locations: 2,689 at quarter end, up from 2,279 in the same quarter last year
- Same-Store Sales were flat year on year (21.6% in the same quarter last year)
- Market Capitalization: $9.66 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Wingstop’s Q1 Earnings Call
- Jeffrey Bernstein (Barclays) asked about the rationale behind the more modest same-store sales outlook and the factors affecting sequential trends. CFO Alex Kaleida explained that tough comparisons from prior years and localized consumer pullbacks shaped the cautious guide, but underlying business health remains solid.
- David Tarantino (Baird) inquired about the sales impact of the Smart Kitchen rollout and whether its benefits are included in guidance. Kaleida said early adopting restaurants show sales lifts, but guidance does not factor in incremental gains from the platform.
- Danilo Gargiulo (Bernstein) asked about international expansion, especially in China and India. CEO Michael Skipworth noted momentum in international markets, with China viewed as a long-term opportunity but not an immediate priority due to the geopolitical climate.
- Andrew Charles (TD Cowen) questioned if increased restaurant development was causing cannibalization of sales at mature stores. Skipworth responded that sales transfer remains consistent with historical trends, and strong unit economics continue to drive franchisee expansion.
- Christine Cho (Goldman Sachs) probed the uptake of tenders since the relaunch. Skipworth reported that tenders are now mixing higher than the chicken sandwich at launch and are attracting new guests to the brand.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will monitor (1) the pace and impact of the Wingstop Smart Kitchen rollout on guest satisfaction and throughput, (2) the launch and initial traction of the loyalty program pilot, and (3) the company’s ability to sustain accelerated unit growth, particularly in new international markets. Shifts in consumer spending and margin recovery will also be closely tracked.
Wingstop currently trades at $334.64, up from $230.51 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
Our Favorite Stocks Right Now
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
