Wingstop’s Q1 hammered by weather, consumer pressures

Wingstop’s first quarter proved just how unforgiving a brutal winter can be for some restaurant concepts. And, also for concepts with a heavy mix of lower-income consumers who are struggling amid a relentless inflationary environment.

Wingstop’s domestic same-store sales reported Wednesday morning fell 8.7%, marking the 7th straight quarter of decelerating comps and the third straight quarter of worsening two-year comp trends, according to William Blair analyst Sharon Zackfia.

And while revenue rose 7%, bolstered by continued strong unit expansion, it fell short of analysts’ expectations by about 2%. Because of the soft quarter, full-year same-store sales guidance was revised to a low-single-digit decline, from flat to up low-single digits previously.

“Our same-store sales result in Q1 was disappointing and fell below our expectations,” CEO Michael Skipworth said during the company’s earnings call. “As the quarter progressed, two factors came into play. The first was atypical winter weather, resulting in temporary restaurant closures in over 700 restaurants. Secondly, elevated gas prices as a result of the conflict in the Middle East … stressed the balance sheet of the lower-income consumer that our business overindexes to.”

That said, Skipworth maintained optimism that the company is making “measurable progress” against key initiatives, adding that its strategy remains unchanged. During the quarter, for instance, Wingstop opened 97 net new restaurants, marking a 17% year-over-year increase. Margins also increased during the quarter, providing confidence behind that unit growth. Since the beginning of 2023, the chain has opened over 1,000 restaurants globally and more than doubled systemwide sales to over $5.4 billion.

Additionally, the Wingstop Smart Kitchen has yielded improvements in speed, accuracy and consistency. The company experienced a 16% improvement in the number of restaurants hitting its targeted speed of service compared to Q4, as well as a 5% improvement in accuracy, and a 17% improvement in digital customer satisfaction scores. More restaurants are achieving a 10-minute order time, while standard delivery times are “moving closer” to the company’s goal of less than 30 minutes, Skipworth said.

To maintain progress on speed, Wingstop is planning to launch an Order Ready Tracker by the end of the second quarter that will enhance communication with guests. The feature connects to the Wingstop Smart Kitchen, providing real-time status updates. In test, it created more precise delivery times, reduced complaints and improved accuracy.

“When we deliver that high-quality, cooked-to-order Wingstop experience and execute with speed, accuracy and consistency, we drive stronger conversion, improved retention and incremental sales,” Skipworth said. “We expect the Wingstop Smart Kitchen to be a meaningful contributor to scaling AUVs towards our target of $3 million.”

Wingstop ended 2025 with AUVs at $2 million, according to Technomic data.

Skipworth is also bullish on the chain’s new loyalty program, called Club Wingstop.

“This is not a traditional discount-driven rewards program,” he said. “Club Wingstop is built around a simple premise: members eat first, giving our most engaged guests access experiences and benefits that go beyond points and discounts. What differentiates the platform is how it enhances the guest interaction through capabilities like group ordering, point sharing and personalized offers that adapt based on behavior.”

Wingstop built an AI-enabled tool to allow the program to create such personalization and “strengthen emotional connection” to drive sustained frequency. In test, the program has so far generated improved retention, higher reactivation of lapsed users and increased engagement. Skipworth added that members are also spending more. The national launch is planned for the end of Q2 and will include a 360-degree marketing push.

The loyalty program is also expected to complement the chain’s new “Wingstop is here” advertising campaign, introduced in Q4, which Skipworth said is bringing in more higher-income consumers.

“This gives us confidence that our marketing is resonating with a broader audience and is reflective of the opportunity we're targeting in our demand space,” he said.

“While the level of uncertainty in the current operating environment remains high, our path forward and strategies are very clear. We are focused on strengthening our operations through the Wingstop Smart Kitchen, expanding our reach to new guests, and launching Club Wingstop, each of which we believe will drive a return to same-store sales growth and further strengthen brand partner profitability and returns.”