WING earnings analysis
What we found in WING's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Wingstop delivered 6.4% Q2 revenue growth to $185.564 million and 16.9% net-income growth to $31.288 million, with GAAP EPS of $1.15 and operating margin expanding to 29.4%. Franchise-unit growth and lower wing costs more than offset a 7.5% domestic same-store-sales decline, but the falling $1.893 million domestic AUV and $1.2 billion debt balance remain central concerns. Year-to-date cash generation improved to $68.301 million, though the increase was substantially influenced by advertising-fund payment timing and working capital.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth resumed sequentially
- Q2 revenue increased 6.4% year over year to $185.564 million and was up approximately 1.0% from Q1 2026 revenue of $183.725 million. Growth was led by an 8.7% increase in royalty, franchise-fee and other revenue to $86.844 million.
- EPS and profit growth accelerated
- GAAP diluted EPS was $1.15, up from $0.96 in Q2 2025 and $1.08 in Q1 2026. Net income rose 16.9% year over year to $31.288 million, while adjusted diluted EPS was $1.18 versus $1.00.
- Margins expanded materially
- Operating income grew 20.8% to $54.631 million, lifting operating margin to 29.4% from 25.9% a year ago and 27.4% in Q1 2026. Calculated gross margin expanded to 86.5% from 86.0% a year ago.
- Unit growth supported system sales
- System-wide sales increased 5.3% to $1.411 billion as the system added 102 net restaurants in Q2, ending at 3,255 locations versus 2,818 a year earlier.
- Lower wing costs aided profitability
- Company-owned food, beverage and packaging costs improved to 35.2% of sales from 36.8%, principally reflecting a 9.1% decline in bone-in wing costs. Adjusted EBITDA increased 12.5% to $66.627 million.
- Operating cash flow strengthened
- Year-to-date operating cash flow increased to $68.301 million from $31.876 million, although management attributed the $36.425 million increase primarily to Ad Fund payment timing and working-capital changes.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Domestic comparable-sales pressure persists
- Domestic same-store sales declined 7.5% in Q2 and 8.1% year to date; domestic AUV fell to $1.893 million from $2.112 million a year earlier. The comparable-sales decline reduced quarterly royalty revenue by $5.0 million.
- Leverage and interest burden remain elevated
- Cash, cash equivalents and restricted cash were $157.4 million at June 27, 2026 after declining $71.013 million year to date, while long-term debt totaled $1.2 billion. Quarterly net interest expense rose 15.9% to $9.813 million.
- Chicken-wing commodity exposure remains
- Bone-in chicken wings represented 19.4% of company-owned restaurant cost of sales year to date. Management estimates that a hypothetical 10% increase in wing costs would increase cost of sales by approximately $1.0 million.
- Technology investment raises cash demands
- Investing cash outflow was $35.936 million year to date versus $16.915 million of inflow a year earlier, as capital expenditures increased for technology and equipment. The filing does not disclose a standalone capex amount, so free cash flow cannot be calculated from the filing.
- No risk-factor updates in the 10-Q
- No updated risk factors were presented in Item 1A; it refers investors to the Annual Report. Accordingly, this 10-Q does not identify a newly added or revised risk factor relative to the 2025 10-K.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.15
- Gross margin
- 86.49%
- Operating margin
- 29.44%
- Segment
- No reportable operating segments were disclosed. Royalty revenue, franchise fees and other was $86.844 million, up 8.7% year over year.
- Segment
- Advertising-fee revenue was $64.536 million, up 4.2% year over year.
- Segment
- Company-owned restaurant sales were $34.184 million, up 5.3% year over year.
What they said about what is next.
The 10-Q does not provide quantitative revenue or EPS guidance. Management states that operating cash flow and its securitized financing facility are expected to meet capital-expenditure, working-capital, and debt-service requirements for at least the next 12 months.
The filing reads about the same as the one before it.
What came before.
- 10-Q · April 29, 2026
- Wingstop reported Q1 2026 revenues of $183.7 million, up 7.4% year-over-year, but below estimates by 2.0%. Diluted EPS came in at $1.18, exceeding expectations by 15.7%. Despite growth in total revenue, net income fell…
- 10-K · February 18, 2026
- Wingstop positions itself as the largest fast-casual wings-focused chain with scale (more than 3,050 locations) and an asset-light, ~98% franchised model that it says drives high margins and capital-efficient growth.…
- 10-Q · November 4, 2025
- Wingstop reported a stronger quarter with revenue of $175.736M (up $13.238M or +8.2% vs. $162.498M a year ago) and diluted EPS of $1.02 (vs. $0.88 prior year). Operating income improved to $48.961M (up $9.143M, +23.0%)…
- 10-Q · July 30, 2025
- Wingstop reported quarterly revenue of $174.3M (thirteen weeks ended June 28, 2025), up year-over-year from $155.7M, with diluted EPS of $0.96 (vs. $0.93 a year ago). Operating income was $45.2M (≈26.0% operating…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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