Shares for Dallas-based Wingstop Inc. jumped in premarket trading after the company reported domestic same-store sales that contracted less than what was predicted, and better-than-expected earnings, easing fears of a marked slowdown at the chicken chain.
Wingstop’s domestic same-store sales for the fourth quarter fell 5.8%, less than analysts’ expectations of a 6.7% decrease, according to a statement Wednesday. Adjusted earnings per share of $1 beat the 83 cents anticipated.
It forecast 2026 domestic same-store sales to grow at a flat to low-single-digit percentage, signaling relief after three consecutive quarters of steepening declines. Analysts’ polled by Bloomberg expect a 2% increase this year.
The results come as a welcome surprise after analysts had warned the chain’s heavy exposure to lower-income, Hispanic and younger consumers — groups that have pulled back the most on dining out — could weigh on results.
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It also indicates sales are benefiting from the rollout of “smart kitchens,” aimed at improving food quality and order accuracy, along with potential tailwinds from the World Cup and the company’s loyalty program.
– Rachel Phua for Bloomberg
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