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Investing.com -- Wingstop Inc. (NASDAQ:WING) shares fell 8% after the restaurant chain missed revenue expectations in the third quarter and lowered its same-store sales guidance for the year, despite posting better-than-expected earnings.
The company reported third-quarter adjusted earnings of $1.09 per share, surpassing analyst estimates of $0.93. However, revenue came in at $175.5 million, falling short of the $187.37 million consensus forecast. System-wide sales increased 10% to $1.4 billion compared to the same period last year, while domestic same-store sales declined 5.6%, a stark contrast to the 20.9% growth seen in the third quarter of 2024.
Wingstop’s development momentum remained strong with 114 net new restaurant openings in the quarter, representing 19.3% net unit growth year-over-year. The company now operates 2,932 restaurants globally, including 2,505 in the United States.
"Our third quarter results highlight the strength and resiliency of our business model delivering 18.6% Adjusted EBITDA growth — supported by best-in-class unit economics, strategic investments, disciplined execution, and enthusiasm from our brand partners to open more Wingstops," said Michael Skipworth, President & Chief Executive Officer.
The company revised its full-year 2025 guidance, now expecting a 3% to 4% decline in domestic same-store sales, down from its previous forecast of approximately 1% growth. Wingstop also updated its global net new unit target to 475-485 restaurants, compared to its earlier projection of 17% to 18% global unit growth.
Digital sales continued to gain traction, increasing to 72.8% of system-wide sales. The company’s adjusted EBITDA grew 18.6% to $63.7 million, marking the highest quarter on record.
Wingstop maintained its quarterly dividend of $0.30 per share and continued its share repurchase program, buying back 140,103 shares at an average price of $285.26 during the quarter.