Wingstop Inc. (NASDAQ: WING) shares gained sharply Wednesday, as the Dallas-based restaurant chain announced financial results for the fiscal second quarter ended June 28, 2025.
Total revenue for the quarter 2025 increased to $174.3 million from $155.7 million in the prior fiscal second quarter. Royalty revenue, franchise fees and other increased $8.7 million, of which $9.8 million was due to net new franchise development, partially offset by a decrease of $1.4 million due to a 1.9% decline in domestic same store sales.
Advertising fees increased $7.3 million due to a 13.9% increase in system-wide sales in the fiscal second quarter 2025, as well as an increase in the national advertising fund contribution rate to 5.5% from 5.3%, effective the first day of the fiscal first quarter 2025.
Company-owned restaurant sales increased $2.6 million due to company-owned restaurant same store sales growth of 3.6%, driven primarily by an increase in transactions, as well as company-owned restaurants opened and acquired since the prior fiscal second quarter.
Cost of sales was $24.4 million compared to $22.7 million in the prior fiscal second quarter. As a percentage of company-owned restaurant sales, cost of sales decreased to 75.2% from 75.9% in the prior fiscal second quarter. The decrease was primarily driven by sales leverage on labor and other operating expenses.
WING shares spread its wings and gained $75.75, or 26.1%, to begin Wednesday at $366.05.
