In 2025, Wingstop’s 21-year streak of positive same-store sales came to a halt. In Q1 2026, those same-store sales fell an eye-popping 8.7%.
CEO Michael Skipworth told analysts during the earnings call that the quarterly performance was a disappointment and cited inclement weather and consumer pressures. He then outlined the tailwinds pushing the brand toward a full recovery, including its new Club Wingstop loyalty program and accelerated menu innovation.
Once that call ended, however, the punditry began and it was fully centered on what was driving Wingstop’s issues. A lot of public brands have a big chunk of lower-income consumers but weren’t turning in such dismal numbers, so the commentary shifted to a theme that is all too familiar in the industry, expansion at the expense of existing restaurants’ performance.
Consider Wingstop’s domestic footprint of 2,204 at the end of 2024 versus 2,586 restaurants at the end of 2025, for instance — an increase of 17.3%. That builds on the plus-50% growth throughout the past three years and the plus-90% growth throughout the past five years.
Wingstop is eyeing about 6,000 U.S. locations alongside a goal of reaching $3 million in average unit volumes, yet in 2025, its AUVs decreased to $2 million from about $2.14 million the year prior. If new restaurants are being added faster than demand is growing, sales become diluted and the cannibalization question inevitably surfaces.
During a recent interview, Skipworth said cannibalization is “something we always keep an eye on” and measure every year, but those measurements are showing something opposite — intentionality. One of Wingstop’s biggest objectives as it targets 6,000 U.S. restaurants (from just over 2,500 now) is to recruit new guests and Skipworth said having a Wingstop nearby is a major driver of customer acquisition.
“The playbook was built and designed for the next phase of growth. Nothing is uncharacteristic or unplanned,” he said. “The restaurants we opened in Q1 measured lower cannibalization levels than ever before and those restaurants annualize at a higher volume than those we opened in 2025.”
Any AUV pressures in 2025, he added, were more the result of the macroenvironment.
Franchisees don’t seem skittish. Wingstop opened a record 493 net new restaurants last year and is guiding for another 15% unit growth this year. The expansion is driven by a record development pipeline of more than 2,200 committed units.
Contact Alicia Kelso at Alicia.Kelso@informa.com
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