Wingstop Inc. (NASDAQ:WING) shares surged Tuesday after the company posted mixed third-quarter results, with earnings beating expectations even as revenue came in below Wall Street forecasts.
The company posted earnings of $1.09 per share, up from 89 cents a year earlier, and above analysts’ estimate of 93 cents.
Total revenue rose to $175.74 million, missing consensus estimates of $185.86 million.
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System-wide sales rose 10% to $1.4 billion, driven by 114 net new openings, though domestic same-store sales fell 5.6%. Domestic AUV reached $2.1 million and digital sales grew to 72.8% of system-wide sales.
Adjusted EBITDA rose 18.6% to $63.66 million, while operating income climbed to $48.96 million from $39.82 million in the prior-year quarter.
The company ended the quarter with cash and cash equivalents of $237.64 million.
Wingstop ended the third quarter with 2,932 restaurants system-wide, including 2,505 in the United States and 427 in international markets. Of the U.S. locations, 2,450 were franchised and 55 were company-owned.
Capital Return to Shareholders
During the third quarter of fiscal 2025, Wingstop repurchased and retired 140,103 shares of its common stock at an average price of $285.26 per share. The company had $151.3 million remaining under its share repurchase authorization as of Sept. 29, 2025.
The board also authorized a quarterly cash dividend of 30 cents per share, or about $8.3 million in total, payable on Dec. 12, 2025, to shareholders of record as of Nov. 21, 2025.
Outlook
The company revised its fiscal 2025 outlook, now expecting domestic same-store sales to fall about 3% to 4%, compared with its earlier forecast of roughly 1% growth.
CEO Michael Skipworth said on the earnings call that weakening consumer demand has broadened beyond areas with high concentrations of Hispanic and lower-income customers. He noted that the softness is now spreading across more regions and is increasingly affecting middle-income consumers.
It now projects 475 to 485 net new global units, down from its previous guidance of 17% to 18% global unit growth.
Elevated Short Interest
The company has a short float of 3.55 million shares, representing 16.71% of its publicly traded float, indicating a relatively elevated level of short interest among investors betting against the stock.
Price Action: WING shares were trading higher by 15.34% to $246.90 at last check Tuesday.
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