-- Wingstop (WING) reduced its 2026 domestic same-store sales outlook as the restaurant chain reported weaker-than expected first quarter revenue.
Revenue increased 7.4% to $183.7 million from a year earlier, trailing the consensus on FactSet of $187.8 million. Non-GAAP earnings rose to $1.18 per share from $0.99, topping Wall Street's estimate of $1.03.
Domestic same-store sales in the three months ended March 28 fell 8.7% as transaction volumes declined amid continued pressure on consumer spending.
RBC Capital Markets predicted last week that Wingstop's first-quarter same-store sales would decline by 6.8%, compared to the Street's view for a 5.2% drop, prompting a cut in full-year guidance amid a tough macro environment.
Wingstop's shares fell 0.5% in Wednesday trading, paring earlier losses. The stock has slumped 28% this year.
"Our focus in the first quarter centered upon enhancing unit economics for our brand partners and advancing our strategies that we believe will position us to return to same-store sales growth," CEO Michael Skipworth said in a statement.
The company revised its full-year domestic same-store sales guidance to a low-single-digit decline from the prior outlook of flat to low-single-digit growth, citing economic uncertainty.
"We believe 2026 is going to be a transformational year for Wingstop and remain extremely confident in the long-term opportunity in front of us," Skipworth said.
Royalty revenue and franchise fees rose to $87.5 million in the first quarter from $78.8 million a year earlier. Advertising fees and company-owned restaurant sales also increased.
On Wednesday, Yum Brands (YUM) logged first-quarter results above Wall Street's estimates. On Monday, Domino's Pizza (DPZ) reported weaker-than-expected first-quarter results.
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