Wingstop reported its first full-year decline in same-store sales in 22 years on Wednesday, which it blamed largely on a challenging macroeconomic climate.
The fast-casual chain’s domestic same-store sales were down 5.8% for the fourth quarter, and down 3.3% for the year.
But there were signs that last year’s “game changing” rollout of an AI-fueled Smart Kitchen operating system—replacing an archaic system of paper tickets—would pay off in 2026.
Same-store sales at the chain’s 57 company locations were positive, up 1.6% and driven largely by transactions. Those units also have an average unit volume nearing $2.5 million, above the system average of $2 million.
CEO Michael Skipworth said those corporate units are showing results from having the Smart Kitchen system in place for more than a year.
By the end of the fourth quarter, the Smart Kitchens were in all 2,529 domestic franchised locations. But franchisees are still adapting to the new system and putting new operating standards in place.
Skipworth has pledged the new digital Smart Kitchen system will dramatically cut speed of service.
And speed is a key component of Wingstop’s hoped-for transformation.
The new Smart Kitchen system promises to cut service times roughly in half, from about 20 minutes to 10 minutes. That would put Wingstop in the consideration set for delivery, Skipworth has argued, and it makes it a more likely option for lunch.
So far, about 50% of the chain’s domestic units have achieved an average service time of 10 minutes. And delivery times have been cut by about 15% year over year, but there’s more work to do there, Skipworth said.
“This change in delivery time has increased menu-to-order conversions on our aggregators since launch,” he said. “That being said, we are not seeing the reduction in our overall delivery times match the reduction we’re seeing in the speed of service within our restaurant operations. This is something we are working on closely with our delivery partners to ensure we are realizing the full benefit of the improvements we are making in speed.”
The Super Bowl, for example, a record day for sales when the chain brought in an estimated 100,000 new guests, the average speed of service was about 20 minutes.
“Clearly, that’s above our 10-minute target,” said Skipworth. “But I can remember the days when most restaurants would turn off their digital ordering platform because demand and volume is so high.”
Faster service has also boosted frequency, another goal as the chain pushes to reach a $3 million AUV and 10,000 locations. Currently, Wingstop customers average only one visit per month.
But in the second quarter, the chain is planning to roll out its new Club Wingstop loyalty program. A pilot of the program last year showed a 7% increase in frequency among users, and 30% of new guests signed up.
Loyalty will be an incredible driver, said Skipworth. “Just one more visit a quarter is a meaningful step toward that $3 million AUV target,” he said.
Late last year, the chain also rolled out a new advertising campaign with the tagline “Wingstop is here.” The goal is to raise brand awareness for chicken at more everyday occasions, not just sports events.
That’s not to say Wingstop is ignoring the opportunity of sports events. The brand hosted a House of Flavor popup in Milan tied to the Olympics and the launch of the chain there. And expect to see Wingstop stage similar events this summer tied to the World Cup.
But Skipworth wants consumers to think about Wingstop at lunch or snack times, which have shown signs of softness as consumers hold wallets tighter. Future promotions will likely feature chicken sandwiches at more “entry level” pricing, he said.
One of the benefits of the new Smart Kitchens, however, is it gives visibility into Wingstop’s customer base, which has traditionally favored Gen Z.
Skipworth said the brand’s cohort is diversifying, with more Gen X and higher income users. The highest growth is among those at the $50,000 to $100,000 income levels, and the brand is also winning more guests making between $100,000 and $150,000.
Wingstop ended the year with 3,056 units globally, including 470 international locations after entering six new markets outside the U.S. last year.
Skipworth has high hopes for India, where the brand is scheduled to launch this year, and where he sees the potential for 1,000 locations.
For fiscal 2026, the company is expecting to hit a unit-growth rate of 15% to 16%, and Skipworth said development demand remains strong.
This year, the company expects domestic same-store sales to be flat to up in mid-single digits.
Wingstop appeared to beat Wall Street expectations. The company’s stock was up more than 8% in midday trading to $272.67 per share.
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