Wingstop Inc.WING

Wingstop Inc. Leases Disclosure

10-KFiled Feb 18, 20262 min read
(12)Leases
The Company determines whether an arrangement is a lease at inception. The Company has operating leases for retail store locations, office space, and equipment. The Company's leases have remaining terms of 0.4 years to 12.2 years, some of which include options to extend the lease term for up to ten years. Lease terms may include options to renew when it is reasonably certain that the Company will exercise that option. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.
As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available on the commencement date in determining the present value of lease payments. The Company has lease agreements that contain both lease and non-lease components. For real estate leases, the Company accounts for lease components together with non-lease components (e.g., common-area maintenance).
During the fiscal first quarter 2024, the Company executed a lease for an office building, which commenced in May 2024. The operating lease has an initial lease term of 13.8 years with undiscounted fixed payments of $66.9 million in the aggregate over the initial term.
Components of lease expense were as follows (in thousands):
Year Ended
December 27,
2025		December 28,
2024		December 30,
2023
Operating lease cost (1)
$7,698 $6,813 $3,523 
Variable lease cost (2)
1,101 987 733 
Total lease cost$8,799 $7,800 $4,256 
(1) Includes short-term leases, which are immaterial.
(2) Primarily related to adjustments for inflation, common area maintenance, and property tax.
Supplemental cash flow information related to leases is as follows (in thousands):
Year Ended
December 27,
2025		December 28,
2024		December 30,
2023
Operating cash flow information:
Cash paid (received) for amounts included in the measurement of lease liabilities (1)
$6,954 $(3,658)$3,348 
Non-cash activity:
Right-of-use assets obtained in exchange for new operating lease liabilities$3,540 $43,101 $6,346 
(1) Includes tenant improvement reimbursements received.
Supplemental balance sheet information related to our operating leases is as follows (in thousands):
Year Ended
Balance Sheet ClassificationDecember 27,
2025		December 28,
2024
Right-of-use assets
Other non-current assets, net
$48,637 $49,046 
Current lease liabilitiesOther current liabilities3,232 1,059 
Non-current lease liabilitiesOther non-current liabilities58,080 58,169 
Weighted average lease term and discount rate information related to leases was as follows:
Year Ended
December 27,
2025		December 28,
2024		December 30,
2023
Weighted average remaining lease term of operating leases11.0 years11.3 years7.1 years
Weighted average discount rate of operating leases6.25 %6.08 %4.52 %
Maturities of lease liabilities by fiscal year are as follows (in thousands):
Fiscal year 2026$8,335 
Fiscal year 20278,269 
Fiscal year 20288,304 
Fiscal year 20297,955 
Fiscal year 20307,755 
Thereafter46,180 
Total future minimum lease payments86,798 
Less: imputed interest(25,486)
Total lease liabilities$61,312 

Historical Timeline

Fiscal YearFiled
2025Feb 18, 2026Showing above
2024Feb 19, 2025
2023Feb 21, 2024
2022Feb 22, 2023
2021Feb 16, 2022
2020Feb 18, 2021
2019Feb 19, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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