
(18)			Segment Information

In accordance with Segment Reporting, the Company uses the management approach for determining its reportable segments. The management approach is based upon the way that management reviews performance and allocates resources.

The Company has one reportable segment: restaurants. The restaurant segment sells food and beverage through its company-owned restaurants as well as collects royalties, franchise fees, and Ad Fund contributions from franchised restaurants. The restaurant segment derives revenue from both company-owned and franchised restaurants domestically and from franchised restaurants across 18 international countries and territories. The Company manages the business activities on a consolidated basis, as Wingstop restaurants all have similar customers, sell similar products, and have a similar process to sell those products. The measure of restaurant segment assets is reported as Total assets on the Consolidated Balance Sheets. The accounting policies of the restaurant segment are the same as those described in Note 1.

The Company’s chief operating decision-maker (the “CODM”) is its Chief Executive Officer. The Company measures segment profit using consolidated net income. The CODM uses consolidated net income in deciding whether to reinvest profits into the restaurant segment or into other parts of the Company, such as for acquisitions, share repurchases or to pay dividends. Components of consolidated net income, including SG&A, are used to monitor budget versus actual results in assessing performance of the segment.

Financial information for the Company’s reportable segment is as follows (in thousands):


	Fiscal Year
	December 27, 2025		December 28, 2024		December 30, 2023
Revenue:
Royalty revenue, franchise fees and other	$	321,782	$	288,354	$	207,077
Advertising fees	247,619		217,630		157,138
Company-owned restaurant sales	127,452		119,823		95,840
Total revenue	696,853		625,807		460,055
Cost of sales:
Food, beverage and packaging costs	46,893		43,371		31,697
Labor	29,576		28,317		22,963
Other operating costs	22,751		23,025		18,314
Vendor rebates	(3,162)		(3,081)		(2,328)
Total cost of sales	96,058		91,632		70,646
Advertising expenses	261,545		233,306		166,583
Selling, general & administrative:
Transaction costs	497		316		—
Consulting fees	—		—		5,150
System implementation costs	5,839		1,713		—
Amortization of capitalized system implementation costs	934		—		—
Stock-based compensation expense	24,878		22,060		15,558
Other segment expense (1)	96,208		92,712		76,190
Total selling, general and administrative	128,356		116,801		96,898
Depreciation and amortization	25,068		19,490		13,239
(Gain) loss on disposal of assets	6,535		(1,038)		95
Interest expense, net	35,784		21,292		18,227

Investment (income) expense	(93,682)		(2,866)		57
Income tax expense	62,922		38,473		24,135
Net income	$	174,267	$	108,717	$	70,175

(1) Other segment expense consists primarily of corporate related items such as headcount-related expenses, office rent expense, and other overhead costs.

Historical Timeline

Fiscal Year	Filed
2025	Feb 18, 2026	Showing above
2024	Feb 19, 2025

2019	Feb 19, 2020

2018	Feb 27, 2019

2017	Feb 23, 2018

2016	Mar 3, 2017

2015	Mar 4, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Wingstop Inc. Segments Disclosure

Historical Timeline

About Segments Disclosures

Other Available Disclosures