Wingstop (WING) shares skyrocketed 27.80% in early trading on Wednesday following the release of its fiscal second-quarter 2025 results that significantly surpassed analyst expectations. The chicken wing restaurant chain demonstrated robust growth and expansion, prompting an increase in its annual growth forecast.

The company reported an adjusted earnings per share (EPS) of $1.00, handily beating the IBES estimate of $0.87. Total revenue climbed 12% year-over-year to $174.3 million, while system-wide sales saw an impressive 13.9% growth, totaling $1.34 billion. Wingstop's adjusted EBITDA of $59.205 million also outperformed the IBES estimate of $55.8 million.

Investors were particularly encouraged by Wingstop's strong expansion trajectory. The company opened 129 net new restaurants during the quarter, representing a 19.8% net new unit growth. This expansion led management to raise its annual global unit growth forecast to 17-18%, up from the previous 16-17% range. Additionally, Wingstop's board approved an increase in the quarterly dividend from $0.27 to $0.30 per share, further boosting investor confidence. While domestic same-store sales decreased slightly by 1.9%, the overall growth story and the company's ability to exceed earnings expectations appear to be the primary drivers behind the stock's substantial surge.