Wingstop shares rise following strong third-quarter earnings

Wingstop shares rose nearly 9% following the release of third-quarter financial results that exceeded Wall Street profit estimates. The company reported an adjusted net income of $29.3 million, or $1.08 per share, surpassing the expected $1.02 per share.

While revenue grew 5.3% year over year to $185 million due to new store openings, the company faced challenges with existing locations. Domestic same-store sales declined 5.4%, leading management to lower the full-year same-store sales forecast to a decline between 6.5% and 7%. This trend reflects broader consumer struggles with rising costs and dining out frequency.

To combat these trends, CEO Michael Skipworth highlighted the new Club Wingstop loyalty program and operational investments aimed at improving service speed. The company maintains an aggressive expansion strategy, with plans to open up to 450 net new stores in 2026. Management reported a development pipeline of over 2,300 committed restaurants globally, with long-term goals to exceed 10,000 locations, including a target of 1,000 stores in India.