Wingstop Inc. (WING) shares are soaring 27.80% in pre-market trading on Wednesday following the release of its fiscal second-quarter 2025 results that significantly exceeded analyst expectations. The chicken wing restaurant chain reported strong growth in various key metrics and raised its annual growth forecast, demonstrating resilience in a challenging market environment.
The company's adjusted earnings per share came in at $1.00, substantially beating the IBES estimate of $0.87. This performance was supported by a 12% increase in total revenue, which reached $174.3 million. System-wide sales saw an impressive 13.9% growth, totaling $1.34 billion for the quarter. Wingstop's expansion strategy remained on track, with 129 net new restaurant openings, representing a 19.8% net new unit growth and bringing the total number of system-wide restaurants to 2,818.
Despite a slight 1.9% decrease in domestic same-store sales, Wingstop's overall performance impressed investors. The company raised its annual forecast for global unit growth rate to 17% to 18%, up from the previous 16% to 17%. Additionally, Wingstop's board of directors approved an 11% increase in the quarterly dividend from $0.27 to $0.30 per share, reflecting confidence in its financial strength and commitment to shareholder returns. The new dividend will be payable on September 5, 2025, to stockholders of record as of August 15, 2025.
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