Wingstop lowered its 2026 domestic same-store sales outlook for the third time this year on October 28, now projecting a decline of 6.5% to 7%. The chicken wing franchise brand also trimmed its unit growth target and named India as its next market, where it sees room for 1,000 restaurants.
The Dallas-based brand reported its fiscal third quarter results for the period ended September 26, 2026. Domestic same-store sales fell 5.4%while system-wide sales rose 6.0% to $1.437 billion. Wingstop opened 76 net new restaurants in the quarter and ended it with 3,331 locations worldwide. Total revenue reached $185.1 millionup 5.3%. In 2025, the chain added 382 U.S. locations and led QSR Magazine’s growth ranking.
A Third Outlook Cut in 2026
Wingstop first revised its full-year outlook in April, to a low single-digit decline, then again in July, to a decline of 4% to 6%. The new range of 6.5% to 7% is the third revision this year, as reported by Nation’s Restaurant News.
Development guidance moved as well. The company now targets 440 to 450 net new units globally in 2026, or 14.4% to 14.7% growth, compared with a previous range of 15% to 16%. The release attributes the sales decline to lower transaction volumes and continued pressure on consumer spending.
What the Figures Show for Franchised Restaurants
The slowdown weighs mostly on franchise owners. Of the 2,787 Wingstop restaurants in the United States, 2,716 are franchise restaurants and 71 are company-owned. The company’s key metrics table shows domestic average unit volume at $1.848 million in the third quarter, compared with $2.061 million in the third quarter of 2025, a drop of $213,000.
Company-owned restaurants posted a same-store sales decline of 2.7%against 5.4% for the domestic system as a whole. Because the domestic figure combines both groups, franchised restaurants recorded a decline steeper than 5.4%. On the earnings call, Michael Skipworth said unlevered cash-on-cash returns stand at approximately 60% and that most new commitments come from existing operators.
India Named as the Next International Market
Wingstop counted 544 international franchised restaurants at the end of the quarter, including U.S. territories, up from 427 a year earlier. Over the same period, domestic franchised restaurants went from 2,450 to 2,716. Management told analysts that India is the next market, with an opening expected by early 2027 and a potential of 1,000 restaurants.
Marketing and Operations Changes Underway
To rebuild traffic, the brand is adjusting its marketing to link quality and flavor with value, and relying on its Club Wingstop loyalty program. It has also introduced a restaurant scorecard that combines guest feedback with performance data, plus an AI assistant for field teams.
The company reports a 30% reduction in guest complaints about food quality and preparation compared with last year. Updated guidance includes $3 million in restructuring charges tied to a corporate realignment. The next results update will show whether these measures change the sales trend in the fourth quarter.
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Source: lexpress-franchise.com
