--- title: "Wingstop cuts outlook again as same-store sales slump continues" url: https://burnaze.com/article/f0d7cba4-9fe5-4e6d-8564-7410b3deda1a source: "Nation's Restaurant News" original_url: https://www.nrn.com/fast-casual/wingstop-cuts-outlook-again-as-same-store-sales-slump-continues author: "Alicia Kelso" category: "Chicken" industry: "Restaurants" segment: "Chicken" topics: ["Finance & M&A"] published: 2026-10-28T15:45:08.000Z modified: 2026-10-31T13:17:39.545Z image: https://eu-images.contentstack.com/v3/assets/bltea7aee2fca050a19/blt11415fd10fa5a424/6ae2198017243073104aba2d/Wingstop-Exterior_Day1.jpg?width=720&quality=80&disable=upscale --- # Wingstop cuts outlook again as same-store sales slump continues **TL;DR:** Wingstop reported a 5.4% drop in same-store sales for the third quarter, marking its sixth consecutive quarter of negative growth, and lowered its full-year guidance. The company is taking actions to improve sales performance, including marketing adjustments and operational changes. *By Alicia Kelso, originally published in Nation's Restaurant News on 2026-10-28. [Read the original](https://www.nrn.com/fast-casual/wingstop-cuts-outlook-again-as-same-store-sales-slump-continues).* ## Story Wingstop’s same-store sales were negative once again in the third quarter, marking the chain’s sixth consecutive quarter in the red on the metric and marking a sharp shift from strong growth in the years prior. Worse, the third quarter’s negative 5.4% same-store sales lapped -5.6% from the same period a year ago. CEO Michael Skipworth said the quarterly performance fell below expectations. “Our top priority is improving sales performance and rebuilding transaction growth. We are moving with urgency on the actions we can control in this current operating environment,” he said. “While we're beginning to see positive signals from the changes we've made, the improvement in sales performance is taking longer than we initially anticipated, and the macro trends we are seeing among customers have intensified over the last few months.” Indeed, Wingstop’s performance in the past several quarters has been impacted by macroeconomic pressures, including rising gas prices, as 55% of its domestic locations exist in urban, lower-income markets. That said, Skipworth “isn’t waiting for the consumer environment to improve.” “We are taking deliberate action across our business to strengthen performance, drive greater guest frequency, and acquire new guests,” he said. Much of that action revolves around marketing adjustments to “more clearly connect quality and flavor our guests expect with the compelling value Wingstop can deliver.” The opportunities, Skipworth added, are in driving consideration and acquisition and leveraging the new Club Wingstop loyalty program to deepen relationships with customers. “Ultimately, our objective is to give consumers more compelling reasons to choose Wingstop more often,” he said. Wingstop is also sharpening its focus on operations and just launched a new restaurant scorecard and tool kit to merge guest feedback and restaurant performance data. The company also introduced an AI assistant for its field teams to provide faster insights. Coupled with the Wingstop Smart Kitchen, these initiatives have helped drive a 30% reduction in guest complaints related to food quality and preparation compared to last year. “We recognize that consumers are making more deliberate decisions about where they spend their money, and when they choose to spend that money on Wingstop, we have to deliver. They expect the quality, flavor, and experience that make Wingstop special, and it's our responsibility to deliver on that expectation every time,” Skipworth said. Though Skipworth said the company is seeing progress from its efforts, its full-year guidance was revised down to between negative 6.5% to negative 7%, from the previous estimates of down 4% to 6%. Further, 2026 unit-growth guidance was adjusted to 440 to 450 net new locations, representing 14.4% to 14.7% growth, versus the prior growth of 15% to 16%. Additionally, company-owned unit-level margins contracted for the first time year-over-year since the first quarter of 2025, driven by slow sales and higher cost of goods. However, Skipworth said the “underlying economics” of the business remain compelling, with domestic average unit volumes of approximately $1.85 million unlevered cash-on-cash returns of approximately 60%. He added that most of the new restaurant commitments have come from existing operators, illustrating their continued confidence in the long-term growth of the brand. - Systemwide sales of $1.4 billion, up 6% vs. Q3 2025 - 76 net new openings - Domestic restaurant average unit volumes of $1.85 million - Domestic same-store sales decreased 5.4% versus Q3 2025 - Digital sales represented 73.7% of systemwide sales - Total revenue of $185.1 million, an increase of 5.3% vs. Q3 2025 - Net income increased 2.2% to $29.1 million, or $1.07 per diluted share - Adjusted EBITDA (earnings before interest taxes, depreciation, amortization), increased 0.5% vs. Q3 2025 to $64 million ## Entities - QSR (sector) - Nation's Restaurant News (publication) - Wingstop (company) - same store sales (topic) - Alicia Kelso (person) - sales performance (topic) - Michael Skipworth (person) - operational changes (topic) - marketing adjustments (topic) - full-year guidance (topic) --- Originally reported by Alicia Kelso, Nation's Restaurant News (https://www.nrn.com/fast-casual/wingstop-cuts-outlook-again-as-same-store-sales-slump-continues). Summarized by Burnaze (https://burnaze.com/article/f0d7cba4-9fe5-4e6d-8564-7410b3deda1a).