Wingstop runs a fast-casual chicken wing chain with 1,695 franchised and 36 company-owned locations across 44 U.S. states and 7 countries—think of it as the wing-focused cousin to Domino's Pizza, but with hand-tossed sauces.
Money comes from franchise royalties and fees on $0.70B annual revenue, with a 82.62% gross margin and 27.58% operating margin in 2025—high-margin, recurring income from franchisees, not one-off sales.
Brand loyalty and a simple, scalable franchise model create a solid moat, but rising competition from Popeyes, Buffalo Wild Wings, and Dave's Hot Chicken is eroding its uniqueness in the wing space.
Sell (sector percentile 20) — value C, growth C+, profitability A, momentum D-, revisions C. Updated daily, sector-relative, identical for every user.
Key events, in time order
Fifth consecutive quarter of negative comps, but profit growth suggests cost control and pricing power
Downgrade adds to negative sentiment after weak Q2 and institutional selling
Revenue of $185.6M missed $190.5M estimate; domestic same-store sales fell 7.5%; adjusted EPS of $1.18 beat $1.03 estimate
Revenue miss, SSS decline attributed to consumer pressure
Institutional position change, reflecting big money moves
13F shows major trim, aligning with weak results
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