New York, February 19, 2026, 09:40 EST — Regular session
- Wingstop shares slipped at the open, giving back some ground following a sharp rally in the previous session.
- Weaker same-store sales are up against a fresh growth goal set for 2026, leaving investors with a decision.
- The company is tossing a new dividend and fresh buybacks into the mix—more fuel for the short-term story.
Wingstop Inc (WING) started Thursday’s session down roughly 1%, slipping after a 10.8% surge the previous day. Investors took a hard look at the chicken-wing company’s growth targets, especially in light of yet another decline in same-store sales. Shares kicked off trading at $276.15, swinging from $269.62 up to $277.72 early on. The stock is changing hands at nearly 45 times trailing earnings. (Public)
Set-up counts here: Wingstop isn’t just another restaurant stock. It’s branded as a “growth at a premium” story, and while that premium usually sticks, it can unravel quickly if there’s a dip in traffic or if guidance turns unclear.
The stumble on Thursday isn’t happening in a vacuum. Management is set for a conference call later this morning, and investors are pressing for more specifics on what’s fueling demand. They’re also watching for clues: has the sales drop started to stabilize, or is it just moving to a different spot on the calendar?
Wingstop reported an 8.6% jump in fourth-quarter revenue, reaching $175.7 million. Adjusted earnings landed at $1.00 a share. But domestic same-store sales slipped 5.8%. Looking ahead to 2026, the company expects domestic same-store sales to be flat or notch up in the low-single digits, and sees global unit growth between 15% and 16%. The board announced a 30-cent quarterly dividend, set for payment on March 27. During the quarter, Wingstop bought back 248,278 shares, leaving $91.3 million still available in its repurchase program. (Wingstop Investor Relations)
Chief Executive Michael Skipworth praised the team’s “operational excellence,” highlighting 493 net new restaurants planned for 2025 and the swift expansion of the Wingstop Smart Kitchen throughout the U.S. footprint.
That growth target jumps out: 15% to 16% unit expansion is hefty for a restaurant sector where building and labor costs have climbed. Investors are going to press for specifics—are those new locations coming from the U.S., overseas, or a mix? Plus, what are franchisees actually earning in returns?
Same-store sales — which track performance at locations open at least a year — are another source of concern, often seen as a stand-in for underlying demand. Wingstop’s domestic average unit volume, or AUV (annual sales per restaurant), dropped to $2.0 million this quarter, slipping from $2.138 million in the same period last year.
Margins got a boost as well. Wingstop pointed to lower bone-in wing prices as a plus for food costs, but noted interest expense climbed after wrapping up a securitized financing deal in late 2024.
It’s rare to see a dividend in a high-growth restaurant name, giving the trade a fixed date on the calendar. Investors are also eyeing any fresh detail on buybacks, especially coming off a quarter when shares sat well below their earlier peaks.
Stephens stuck with its “overweight” call after the results came out, keeping the price target at $375. BTIG Research called the stock a “buy,” according to MarketBeat. (MarketBeat)
The bear case isn’t a stretch. Should those negative domestic same-store sales drag on, or if wing prices and labor start inching up again, franchise margins take a hit. And for a richly valued stock, disappointment bites harder.
