Wingstop Inc. (WING) saw its shares plunge 5.64% in pre-market trading on Tuesday following the release of its fiscal third-quarter 2025 financial results and disappointing outlook. Despite reporting growth in several key metrics, the company's forecast for domestic same-store sales has raised concerns among investors.
For the third quarter, Wingstop reported a 10.7% increase in net income to $28.5 million, or $1.02 per diluted share. System-wide sales rose 10.0% to $1.4 billion, while total revenue increased 8.1% to $175.7 million. The company also saw an 18.6% jump in adjusted EBITDA to $63.7 million. However, domestic same-store sales decreased by 5.6%, indicating challenges in the core market.
The primary driver behind the stock's pre-market decline appears to be Wingstop's outlook for 2025, which projects an approximately 3% to 4% decline in domestic same-store sales growth. This forecast suggests ongoing difficulties in maintaining growth momentum in established locations, overshadowing the positive aspects of the earnings report such as the company's robust 19.3% net new unit growth with 114 net new restaurants opened during the quarter.