Financing

Wingstop's wings clipped as the chain cuts its 2025 outlook

The fast-casual chicken chain downgraded expectations for the year as economic malaise grows. But CEO Michael Skipworth expects trends to turn positive again in 2026.
Wingstop
The digital Smart Kitchen system replaces the use of paper checks. | Photo courtesy of Wingstop.

A troubled economy impacting a broader swath of consumers dampened Wingstop’s third quarter. 

Same-store sales declined 5.6% during the quarter, though Wingstop was lapping an eye-popping nearly 21% increase in same-store sales a year ago.

And Wingstop’s 55 company restaurants reported comparable sales up 3.8%, driven almost entirely by transactions. That’s because company units have upgraded to Wingstop’s new AI-fueled Smart Kitchen platform, which has cut speed in half to about 10 minutes. 

Still, though the fast-casual chain believes the soft sales trends will pass, the 2,932-unit Wingstop downgraded expectations for the year, saying same-store sales will decline between 3% to 4%, rather than the 1% sales growth expected previously.

Economic headwinds are hitting more middle-income consumers in more geographies, said CEO Michael Skipworth. Earlier this year, the chain said softening sales were seen mostly among Hispanic and lower-income guests, which are a large part of Wingstop’s traditional audience.

“We believe this is only temporary, and the current consumer environment will prove to be cyclical,” Skipworth said. “While none of us can predict the duration, where I am focused is on the strategies we are executing.”

Those strategies include the Smart Kitchen roll out, which Skipworth continues to describe as a game changer. The platform is in 2,000 domestic units and the company expects it to be in all U.S. locations by the end of the year.

The speedier service time achieved with the Smart Kitchen platform puts Wingstop in the consideration set for a broader range of customers. Wingstop, for example, now shows up in searches on platforms that filter for delivery under 30 minutes.

And, now that the brand is showing up on those searches, Wingstop has followed up with a new “Wingstop is Here” marketing campaign designed to prompt consumers to think about wings as an everyday treat, not just party food for the big game.

The campaign “broadens the top of the funnel,” Skipworth said, to include any gathering of two or more people, across ethnic, income and age-group lines.

Also coming is a new loyalty program, to be dubbed Club Wingstop.

The chain is piloting the program, which aims to further engage that broader audience with “hyper-personalized” digital experiences, without discounting. On track to launch in the second quarter of 2026, Skipworth said, sign-up rates and engagement are already ahead of expectations based on early results.

Wingstop is also accelerating growth in a push to reach 10,000 units globally. This year, net new unit growth is expected to be between 475 to 485 globally, about 100 more than previously projected.

Currently, the chain is adding about one restaurant per day, Skipworth said. About 369 net new restaurants have opened in the first nine months of 2025, which is a nearly 20% growth rate. During the third quarter, the chain added 114 net new restaurants.

Internationally, the chain is growing in the Netherlands, expanding in France with “multiple flagships,” and preparing to move into Ireland, Thailand and Italy. The chain also signed an agreement to go into India, which has the potential for 1,000 restaurants alone, he said.

Third-quarter revenues grew 8.1% to $175.7 million. Net income increased 10.7% to $28.5 million.

Wall Street appeared to like the news. Wingstop’s stock climbed nearly 11% to close at $237.32 per share Tuesday.

 

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