Wingstop Inc. 10-K

Item 9A. Controls and Procedures Evaluation of Disclosure Controls and Procedures Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures, pursuant to Rule 13a-15 under the Exchange Act, as of the end of the period covered by this Annual Report on Form 10-K. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and 39 procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of December 27, 2025 to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Changes in Internal Control over Financial Reporting There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) that occurred during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Management’s Report on Internal Control over Financial Reporting The management of Wingstop Inc. is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) under the Exchange Act. Internal control over financial reporting is a process to provide reasonable assurance regarding the reliability of our financial reporting for external purposes in accordance with accounting principles generally accepted in the United States. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Our management, including our Chief Executive Officer and Chief Financial Officer, assessed the effectiveness of our internal control over financial reporting as of December 27, 2025. In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control-Integrated Framework (2013) . Based on such assessment our management has concluded that, as of December 27, 2025, our internal control over financial reporting is effective based on those criteria. KPMG LLP, an independent registered public accounting firm, has issued an attestation report, included herein, on the effectiveness of our internal control over financial reporting as of December 27, 2025. 40 Report of Independent Registered Public Accounting Firm To the Stockholders and Board of Directors Wingstop Inc.: Opinion on Internal Control Over Financial Reporting We have audited Wingstop Inc. and subsidiaries’ (the Company) internal control over financial reporting as of December 27, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 27, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 27, 2025 and December 28, 2024, the related consolidated statements of comprehensive income, stockholders’ deficit, and cash flows for each of the years in the three-year period ended December 27, 2025, and the related notes (collectively, the consolidated financial statements), and our report dated February 18, 2026 expressed an unqualified opinion on those consolidated financial statements. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ KPMG LLP Dallas, Texas February 18, 2026 41 Item 9B. Other Information During the fiscal quarter ended December 27, 2025, no director or officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement” or "non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K. Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. Not applicable. 42 PART III Item 10. Directors, Executive Officers and Corporate Governance Information required by this Item 10 will be included in our definitive Proxy Statement for the 2026 Annual Meeting of Stockholders and such disclosure is incorporated herein by reference. Item 11. Executive Compensation Information required by this Item 11 will be included in our definitive Proxy Statement for the 2026 Annual Meeting of Stockholders and such disclosure is incorporated herein by reference. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Information required by this Item 12 will be included in our definitive Proxy Statement for the 2026 Annual Meeting of Stockholders and such disclosure is incorporated herein by reference. Item 13. Certain Relationships and Related Transactions, and Director Independence Information required by this Item 13 will be included in our definitive Proxy Statement for the 2026 Annual Meeting of Stockholders and such disclosure is incorporated herein by reference. Item 14. Principal Accounting Fees and Services The Company’s independent registered public accounting firm is KPMG LLP. Information required by this Item 14 will be included in our definitive Proxy Statement for the 2026 Annual Meeting of Stockholders and such disclosure is incorporated herein by reference. 43 PART IV Item 15. Exhibits and Financial Statement Schedules (a) Financial Statements Refer to Index to Financial Statements appearing on Page F-1. (b) Financial Statement Schedules No financial statement schedules are provided because the information called for is not required or is shown in the financial statements or the notes thereto. (c) Exhibits The exhibits listed below are filed or incorporated by reference as a part of this report. Exhibit No. Description 3.1 Amended and Restated Certificate of Incorporation of Wingstop Inc., as amended, filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K (File No. 001-37425) on May 2 3 , 2025 and incorporated herein by reference. 3.2 Amended and Restated Bylaws of Wingstop Inc., effective as of May 22, 2025, filed as Exhibit 3.2 to the Company’s Current Report on Form 8-K (File No. 001-37425) on May 2 3 , 2025 and incorporated herein by reference. 4.1 Form of Stock Certificate for Common Stock, filed as Exhibit 4.1 to the Company’s Registration Statement on Form S-1/A (Registration No. 333-203891) on June 2, 2015 and incorporated herein by reference. 4.2 Second Amended and Restated Base Indenture, dated as of March 9, 2022, by and between Wingstop Funding LLC, as Issuer, and Citibank, N.A., as Trustee and Securities Intermediary, filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K (File No. 001-37425) on March 10, 2022 and incorporated herein by reference. 4.3 Series 2020-1 Supplement to Base Indenture, dated as of October 30, 2020, by and between Wingstop Funding LLC, as Issuer of the Series 2020-1 fixed rate senior secured notes, Class A-2, and Series 2020-1 variable funding senior secured notes, Class A-1, and Citibank, N.A., as Trustee and Series 2020-1 Securities Intermediary, filed as Exhibit 4.2 to the Company's Current Report on Form 8-K (File No. 001-37425) on November 2, 2020 and incorporated herein by reference. 4.4 Series 2022-1 Supplement to Base Indenture, dated as of March 9, 2022, by and between Wingstop Funding LLC, as Issuer of the Series 2022-1 fixed rate senior secured notes, Class A-2, and Series 2022-1 variable funding senior secured notes, Class A-1, and Citibank, N.A., as Trustee and Series 2022-1 Securities Intermediary, filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K (File No. 001-37425) on March 10, 2022 and incorporated herein by reference. 4.5 First Amendment to the Second Amended and Restated Base Indenture, dated as of December 3, 2024, by and between Wingstop Funding LLC, as Issuer, and Citibank, N.A., as Trustee and Securities Intermediary, filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K (File No. 001-37425) on December 4, 2024 and incorporated herein by reference. 4.6 Series 2024-1 Supplement to Base Indenture, dated as of December 3, 2024, by and between Wingstop Funding LLC, as Issuer of the Series 2024-1 fixed rate senior secured notes, Class A-2, and Series 2022-1 variable funding senior secured notes, Class A-1, and Citibank, N.A., as Trustee and Series 2024-1 Securities Intermediary, filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K (File No. 001-37425) on December 4, 2024 and incorporated herein by reference. 4.7 First Supplement to Series 2022-1 Supplement, dated as of December 3, 2024, by and between Wingstop Funding LLC, as Issuer of the Series 2022-1 variable funding senior notes, Class A-1, and Citibank, N.A., as Trustee and Series 2022-1 Securities Intermediary, filed as Exhibit 4.3 to the Company’s Current Report on Form 8-K (File No. 001-37425) on December 4, 2024 and incorporated herein by reference. 4.8 Description of Wingstop Inc. Common Stock, filed as Exhibit 4.4 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 25, 2021 (File No. 001-37425) and incorporated herein by reference. 10.1 Amended and Restated Guarantee and Collateral Agreement, dated as of October 30, 2020, by and among Wingstop Guarantor LLC and Wingstop Franchising LLC, each as a Guarantor, in favor of Citibank, N.A., as Trustee, filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K (File No. 001-37425) on November 2, 2020 and incorporated herein by reference. 44 10.2 Amended and Restated Management Agreement, dated as of October 30, 2020, by and among Wingstop Funding LLC, Wingstop Franchising LLC, Wingstop Guarantor LLC, Wingstop Restaurants Inc., as Manager, and Citibank, N.A., as Trustee, filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K (File No. 001-37425) on November 2, 2020 and incorporated herein by reference. 10.3† Wingstop Inc. 2015 Omnibus Incentive Compensation Plan, filed as Exhibit 10.18 to the Company’s Registration Statement on Form S-1/A (Registration No. 333-203891) on June 2, 2015 and incorporated herein by reference. 10.4† Amendment One to the Wingstop Inc. 2015 Omnibus Incentive Compensation Plan, effective as of June 11, 2015, filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 27, 2015 (File No. 001-37425) and incorporated herein by reference. 10.5† Amendment Two to the Wingstop Inc. 2015 Omnibus Incentive Compensation Plan, effective as of August 3, 2017, filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017 (File No. 001-37425) and incorporated herein by reference. 10.6† Wingstop Inc. 2024 Omnibus Incentive Plan, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 001-37425) on May 23, 2024 and incorporated herein by reference. 10.7† Form of Service-based Restricted Stock Unit Award Agreement under the Wingstop Inc. 2024 Omnibus Incentive Plan, filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K (File No. 001-37425) on May 23, 2024 and incorporated herein by reference. 10.8† Form of Performance-based Restricted Stock Unit Award Agreement under the Wingstop Inc. 2024 Omnibus Incentive Plan, filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K (File No. 001-37425) on May 23, 2024 and incorporated herein by reference. 10.9† Form of Stock Option Award Agreement under the Wingstop Inc. 2024 Omnibus Incentive Plan, filed as Exhibit 10.4 to the Company’s Current Report on Form 8-K (File No. 001-37425) on May 23, 2024 and incorporated herein by reference. 10.10† Form of Restricted Stock Award Agreement under the Wingstop Inc. 2024 Omnibus Incentive Plan, filed as Exhibit 10.5 to the Company’s Current Report on Form 8-K (File No. 001-37425) on May 23, 2024 and incorporated herein by reference. 10.11† Wingstop Inc. Amended and Restated Executive Severance Plan, effective May 26, 2022, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 001-37425) on May 27, 2022 and incorporated herein by reference. 10.12† Form of Wingstop Inc. Executive Severance Plan Participation Agreement, filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K (File No. 001-37425) on May 27, 2022 and incorporated herein by reference. 10.13† Form of Indemnification Agreement, filed as Exhibit 10.16 to the Company’s Registration Statement on Form S-1/A (Registration No. 333-203891) on June 2, 2015 and incorporated herein by reference. 10.14† Wingstop Inc. Employee Stock Purchase Plan, filed as Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 30, 2019 (File No. 001-37425) and incorporated herein by reference. 10.15† Offer Letter between Wingstop Inc. and Michael J. Skipworth, dated April 25, 2022, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 001-37425) on April 29, 2022 and incorporated herein by reference. 10.16 Purchase Agreement, dated as of November 19, 2024, by and among the Company, certain indirect subsidiaries of the Company party thereto, Morgan Stanley & Co. LLC and Barclays Capital Inc, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 001-37425) on November 20, 2024 and incorporated herein by reference. 10.17 Amended and Restated Class A-1 Note Purchase Agreement, dated as of December 3, 2024, by and among Wingstop Funding LLC, as Issuer, each of Wingstop Guarantor LLC and Wingstop Franchising LLC, each as a Guarantor, Wingstop Restaurants Inc., as Manager, the conduit investors party thereto, the financial institutions party thereto, certain funding agents, Morgan Stanley Asset Funding Inc., as Administrative Agent and Morgan Stanley Bank, N.A., as L/C Provider, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 001-37425) on December 4, 2024 and incorporated herein by reference. 10.18† Form of Performance-Based Restricted Stock Unit Award Agreement under the Wingstop Inc. 2024 Omnibus Incentive Plan, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 001-37425) on September 1 5 , 2025 and incorporated herein by reference. 10.19† Form of Service-Based Restricted Stock Unit Award Agreement under the Wingstop Inc. 2024 Omnibus Incentive Plan, filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K (File No. 001-37425) on September 1 5 , 2025 and incorporated herein by reference. 19.1 Wingstop Inc. Insider Trading Compliance Policy , filed as Exhibit 19.1 to the Company ’ s Annual Report on Form 10 -K (File No. 001-37425) on February 1 9, 2025 and incorporated her ein by reference . 21.1* List of Subsidiaries of Wingstop Inc. 23.1* Consent of KPMG LLP, independent registered public accounting firm. 45 31.1* Certification of Chief Executive Officer, pursuant to Rule 13a-14(a) or 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 31.2* Certification of Chief Financial Officer, pursuant to Rule 13a-14(a) or 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 32.1** Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 32.2** Certification of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 97.1† Wingstop Inc. Clawback Policy, filed as Exhibit 97.1 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2023 (File No. 001-37425) and incorporated herein by reference. 101.INS* Inline XBRL Instance Document (XBRL tags are embedded within the Inline XBRL document). 101.SCH* Inline XBRL Taxonomy Extension Schema Document. 101.CAL* Inline XBRL Taxonomy Extension Calculation Linkbase Document. 101.DEF* Inline XBRL Taxonomy Extension Definition Linkbase Document. 101.LAB* Inline XBRL Taxonomy Extension Label Linkbase Document. 101.PRE* Inline XBRL Taxonomy Extension Presentation Linkbase Document. 104* Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101). __________________ * Filed herewith. ** The certifications attached as Exhibits 32.1 and 32.2 furnished herewith are not deemed “filed” with the SEC and are not to be incorporated by reference into any filing of Wingstop Inc. under the Securities Act or the Exchange Act, whether made before or after the date of this Annual Report on Form 10-K, irrespective of any general incorporation language contained in such filing except to the extent the registrant specifically incorporates it by reference. † Indicates management contract or compensatory plan or arrangement. Item 16. Form 10-K Summary None. 46 Signatures Pursuant to the requirements of Section 13 or 15(d) of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Wingstop Inc. /s/ Michael J. Skipworth Michael J. Skipworth President and Chief Executive Officer (Principal Executive Officer) February 18, 2026 Pursuant to the requirements of the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Name Title Date /s/ Michael J. Skipworth President and Chief Executive Officer, Director February 18, 2026 Michael J. Skipworth (Principal Executive Officer) /s/ Alex R. Kaleida Chief Financial Officer February 18, 2026 Alex R. Kaleida (Principal Financial and Accounting Officer) /s/ Lynn Crump-Caine Chair of the Board February 18, 2026 Lynn Crump-Caine /s/ Krishnan Anand Director February 18, 2026 Krishnan Anand /s/ David L. Goebel Director February 18, 2026 David L. Goebel /s/ Thomas R. Greco Director February 18, 2026 Thomas R. Greco /s/ Michael J. Hislop Director February 18, 2026 Michael J. Hislop /s/ Kate S. Lavelle Director February 18, 2026 Kate S. Lavelle /s/ Kilandigalu M. Madati Director February 18, 2026 Kilandigalu M. Madati /s/ Wesley S. McDonald Director February 18, 2026 Wesley S. McDonald /s/ Anna M. Smith Director February 18, 2026 Anna M. Smith 47 INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Consolidated Financial Statements Report of Independent Registered Public Accounting Firm (PCAOB ID 185 ) 2 Consolidated Balance Sheets as of December 27, 2025 and December 28, 2024 4 Consolidated Statements of Comprehensive Income for the fiscal years ended December 27, 2025, December 28, 2024, and December 30, 2023 5 Consolidated Statements of Stockholders’ Deficit for the fiscal years ended December 27, 2025, December 28, 2024, and December 30, 2023 6 Consolidated Statements of Cash Flows for the fiscal years ended December 27, 2025, December 28, 2024, and December 30, 2023 7 Notes to Consolidated Financial Statements for the fiscal years ended December 27, 2025, December 28, 2024, and December 30, 2023 9 F-1 Report of Independent Registered Public Accounting Firm To the Stockholders and Board of Directors Wingstop Inc.: Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of Wingstop Inc. and subsidiaries (the Company) as of December 27, 2025 and December 28, 2024, the related consolidated statements of comprehensive income, stockholders’ deficit, and cash flows for each of the years in the three-year period ended December 27, 2025, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 27, 2025 and December 28, 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended December 27, 2025, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 27, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 18, 2026 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Evaluation of the sufficiency of audit evidence obtained over royalty revenue and advertising fees As discussed in Notes 1 and 17 to the consolidated financial statements, the Company recognized $292.5 million of royalty revenue and $247.6 million of advertising fees for the year ended December 27, 2025. Royalty revenue and advertising fees are calculated as a percentage of franchise restaurant sales over the term of the franchise agreement. We identified the evaluation of the sufficiency of audit evidence obtained over royalty revenue and advertising fees as a critical audit matter. This evaluation required subjective auditor judgement due to the highly automated nature of certain processes to record revenue that involve interfacing data across multiple IT systems. The complexity of the IT environment required the involvement of IT professionals with specialized skills and knowledge. The following are the primary procedures performed to address this critical audit matter. We applied auditor judgement to determine the nature and extent of procedures to be performed over the processing and recording of revenue, including the F-2 determination of IT systems for which those procedures were performed. We evaluated the design and tested the operating effectiveness of certain internal controls related to the processing and recording of revenue. We involved IT professionals with specialized skills and knowledge who assisted in testing certain general IT and automated internal controls over IT systems used for the processing and recording of revenue. We compared revenue recognized to cash received for royalty revenue and advertising fees. We confirmed with a sample of franchisees regarding the amount of royalties and advertising fees that they owed to the Company. In addition, we evaluated the overall sufficiency of the audit evidence obtained over royalty revenue and advertising fees by assessing the results of procedures performed. /s/ KPMG LLP We have served as the Company’s auditor since 2019. Dallas, Texas February 18, 2026 F-3 WINGSTOP INC. AND SUBSIDIARIES Consolidated Balance Sheets (amounts in thousands, except share and par value data) December 27, 2025 December 28, 2024 Assets Current assets Cash and cash equivalents $ 196,572 $ 315,910 Restricted cash 25,994 20,868 Accounts receivable, net 20,823 19,661 Prepaid expenses and other current assets 7,956 6,520 Advertising fund assets, restricted 16,143 32,659 Total current assets 267,488 395,618 Property and equipment, net 130,581 125,953 Operating lease assets 48,637 49,046 Goodwill 83,875 74,718 Trademarks 32,700 32,700 Investments 87,164 8,511 Other non-current assets, net 42,964 29,700 Total assets $ 693,409 $ 716,246 Liabilities and stockholders' deficit Current liabilities Accounts payable $ 12,846 $ 6,943 Current portion of operating lease liabilities 3,232 1,059 Other current liabilities 49,744 46,782 Advertising fund liabilities 16,143 32,659 Total current liabilities 81,965 87,443 Long-term debt, net 1,209,094 1,206,201 Operating lease liabilities 58,080 58,169 Deferred revenues, net of current 47,721 38,877 Deferred income tax liabilities, net 33,142 1,085 Other non-current liabilities 169 57 Total liabilities 1,430,171 1,391,832 Commitments and contingencies (see Note 13) Stockholders' deficit Common stock, $ 0.01 par value; 100,000,000 shares authorized; 27,540,619 and 28,662,614 shares issued and outstanding as of December 27, 2025 and December 28, 2024, respectively 275 287 Additional paid-in-capital 1,529 1,568 Retained deficit ( 744,915 ) ( 676,940 ) Accumulated other comprehensive income (loss) 6,349 ( 501 ) Total stockholders' deficit ( 736,762 ) ( 675,586 ) Total liabilities and stockholders' deficit $ 693,409 $ 716,246 See accompanying notes to consolidated financial statements. F-4 WINGSTOP INC. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income (amounts in thousands, except per share data) Fiscal Year Ended 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 Costs and expenses: Cost of sales (1) 96,058 91,632 70,646 Advertising expenses 261,545 233,306 166,583 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 Total costs and expenses 517,562 460,191 347,461 Operating income 179,291 165,616 112,594 Interest expense, net 35,784 21,292 18,227 Investment (income) expense ( 93,682 ) ( 2,866 ) 57 Income before income tax expense 237,189 147,190 94,310 Income tax expense 62,922 38,473 24,135 Net income $ 174,267 $ 108,717 $ 70,175 Earnings per share Basic $ 6.23 $ 3.72 $ 2.36 Diluted $ 6.21 $ 3.70 $ 2.35 Other comprehensive income (loss) Currency translation adjustment $ 6,850 $ ( 160 ) $ 296 Other comprehensive income (loss) 6,850 ( 160 ) 296 Comprehensive income $ 181,117 $ 108,557 $ 70,471 (1) Cost of sales includes all operating expenses of company-owned restaurants, including advertising expenses, and excludes depreciation and amortization, which are presented separately. See accompanying notes to consolidated financial statements. F-5 WINGSTOP INC. AND SUBSIDIARIES Consolidated Statements of Stockholders’ Deficit (amounts in thousands, except share data) Common Stock Shares Amount Additional Paid-In Capital Retained Deficit Accumulated Other Comprehensive Loss Total Stockholders’ Deficit Balance at December 26, 2022 29,932,668 300 2,797 ( 393,321 ) ( 637 ) ( 390,861 ) Net income — — — 70,175 — 70,175 Shares issued under stock plans 65,779 — 951 — — 951 Tax payments for restricted stock upon vesting ( 14,575 ) — — ( 2,480 ) — ( 2,480 ) Stock-based compensation expense — — 15,558 — — 15,558 Dividends declared on common stock and equivalents — — ( 16,239 ) ( 8,490 ) — ( 24,729 ) Purchases of common stock ( 645,952 ) ( 7 ) ( 391 ) ( 125,878 ) — ( 126,276 ) Currency translation adjustment — — — — 296 296 Balance at December 30, 2023 29,337,920 293 2,676 ( 459,994 ) ( 341 ) ( 457,366 ) Net income — — — 108,717 — 108,717 Shares issued under stock plans 58,234 1 1,556 — — 1,557 Tax payments for restricted stock upon vesting ( 12,736 ) — — ( 4,427 ) — ( 4,427 ) Stock-based compensation expense — — 22,060 — — 22,060 Dividends declared on common stock and equivalents — — ( 11,524 ) ( 17,376 ) — ( 28,900 ) Purchases of common stock ( 720,804 ) ( 7 ) ( 13,200 ) ( 303,860 ) — ( 317,067 ) Currency translation adjustment — — — — ( 160 ) ( 160 ) Balance at December 28, 2024 28,662,614 287 1,568 ( 676,940 ) ( 501 ) ( 675,586 ) Net income — — — 174,267 — 174,267 Shares issued under stock plans 144,418 — 1,367 — — 1,367 Tax payments for restricted stock upon vesting ( 48,020 ) — — ( 13,854 ) — ( 13,854 ) Stock-based compensation expense — — 24,878 — — 24,878 Dividends declared on common stock and equivalents — — ( 13,505 ) ( 18,730 ) — ( 32,235 ) Purchases of common stock ( 1,218,393 ) ( 12 ) ( 12,779 ) ( 209,658 ) — ( 222,449 ) Currency translation adjustment — — — — 6,850 6,850 Balance at December 27, 2025 27,540,619 275 1,529 ( 744,915 ) 6,349 ( 736,762 ) See accompanying notes to consolidated financial statements. F-6 WINGSTOP INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (amounts in thousands) Fiscal Year Ended December 27, 2025 December 28, 2024 December 30, 2023 Operating activities Net income $ 174,267 $ 108,717 $ 70,175 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 25,068 19,490 13,239 Deferred income taxes 35,866 ( 1,809 ) ( 1,551 ) Stock-based compensation expense 24,878 22,060 15,558 (Gain) loss on disposal of assets 6,535 ( 1,038 ) 95 Gain on sale of investment ( 92,485 ) — — Non cash investment income ( 8,770 ) — — Amortization of debt issuance costs 3,129 2,150 2,043 Changes in operating assets and liabilities: Accounts receivable ( 1,162 ) ( 7,253 ) ( 2,947 ) Prepaid expenses and other assets ( 10,968 ) ( 13,221 ) 599 Advertising fund assets and liabilities, net ( 16,910 ) 4,778 10,093 Accounts payable and other current liabilities 3,359 2,928 10,634 Deferred revenue 9,941 9,249 3,593 Other non-current liabilities 317 11,559 70 Cash provided by operating activities 153,065 157,610 121,601 Investing activities Purchases of property and equipment ( 47,441 ) ( 51,929 ) ( 40,833 ) Acquisition of restaurants from franchisee ( 18,532 ) ( 14,048 ) ( 10,832 ) Proceeds from sales of assets 17,330 4,000 320 Payments for investments ( 76,513 ) ( 500 ) ( 808 ) Proceeds from sale of investments 107,700 — — Cash used in investing activities ( 17,456 ) ( 62,477 ) ( 52,153 ) Financing activities Proceeds from exercise of stock options 1,367 1,557 951 Purchases of common stock ( 221,859 ) ( 314,664 ) ( 125,401 ) Borrowings of long-term debt — 500,000 — Repayments of long-term debt — — ( 3,650 ) Payment of deferred financing costs and other debt-related costs — ( 8,832 ) — Tax payments for restricted stock upon vesting ( 13,856 ) ( 4,427 ) ( 2,480 ) Dividends paid ( 32,382 ) ( 28,869 ) ( 24,907 ) Cash (used in) provided by financing activities ( 266,730 ) 144,765 ( 155,487 ) Net change in cash, cash equivalents, and restricted cash ( 131,121 ) 239,898 ( 86,039 ) Cash, cash equivalents, and restricted cash at beginning of period 359,574 119,676 205,715 Cash, cash equivalents, and restricted cash at end of period $ 228,453 $ 359,574 $ 119,676 F-7 WINGSTOP INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (continued) (amounts in thousands) Fiscal Year Ended December 27, 2025 December 28, 2024 December 30, 2023 Supplemental information: Accrued capital expenditures $ 6,294 $ 3,955 $ 2,963 Cash paid for interest $ 52,150 $ 22,697 $ 22,740 Cash paid for taxes $ 27,400 $ 38,842 $ 27,918 See accompanying notes to consolidated financial statements. F-8 WINGSTOP INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (1) Basis of Presentation and Summary of Significant Accounting Policies Overview Wingstop Inc., together with its consolidated subsidiaries (collectively, “Wingstop” or the “Company”), is in the business of franchising and operating Wingstop restaurants. As of December 27, 2025, the Company had a total of 3,056 restaurants in its system. The Company's restaurant base is approximately 98 % franchised, with 2,999 franchised restaurants (including 470 international restaurants) and 57 company-owned restaurants as of December 27, 2025. Summary of Significant Accounting Policies (a) Principles of Consolidation The accompanying consolidated financial statements include the accounts of Wingstop Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to the financial statements and accompanying footnotes to conform to the Company’s current period presentation. (b) Fiscal Year End The Company uses a 52/53-week fiscal year that ends on the last Saturday of the calendar year. Fiscal years 2025, 2024, and 2023 each consisted of 52 weeks. (c) Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions, primarily related to long-lived asset valuation, indefinite and finite lived intangible asset valuation, income taxes, investments, leases, stock-based compensation, and contingencies. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the period. Although management bases its estimates on historical experience and assumptions that are believed to be reasonable under the circumstances, actual results could differ from those estimates. (d) Cash, Cash Equivalents, and Restricted Cash The Company continually monitors its positions with, and the credit quality of, the financial institutions in which it maintains its deposits and investments. As of December 27, 2025 and December 28, 2024, the Company maintained balances in various cash accounts in excess of federally insured limits. All highly liquid instruments purchased with an original maturity of three months or less are considered cash equivalents. Restricted cash includes cash and cash equivalents held for future principal and interest payments as required by the Company's debt agreements (see Note 11). The Company also has Advertising fund restricted cash, which can only be used for activities related to the promotion of the Wingstop brand. F-9 Cash, cash equivalents, and restricted cash within the Consolidated Balance Sheets that are included in the Consolidated Statements of Cash Flows as of December 27, 2025 and December 28, 2024 were as follows (in thousands): December 27, 2025 December 28, 2024 Cash and cash equivalents $ 196,572 $ 315,910 Restricted cash 25,994 20,868 Restricted cash, included in Advertising fund assets, restricted 5,887 22,796 Total cash, cash equivalents, and restricted cash $ 228,453 $ 359,574 (e) Accounts Receivable Accounts receivable, net of allowance for doubtful accounts, consists primarily of accrued royalty fee receivables, collected weekly in arrears, and vendor rebates. Management determines the allowance for doubtful accounts based on historical losses and current economic conditions. On a continuing basis, management analyzes delinquent receivables, which are charged off against the existing allowance account when determined to be uncollectible. (f) Inventories Inventories, which consist of food and beverage products, paper goods, and supplies, are valued at the lower of cost (first-in, first-out) or net realizable value. (g) Cloud Computing Arrangements Cloud computing arrangements (“CCA”) are recorded at cost less accumulated amortization. The Company capitalizes implementation costs associated with its cloud computing arrangements, which are recorded net of amortization in “Prepaid expenses and other current assets” and “Other assets.” CCA implementation costs are amortized over the term of the related hosting agreement, including renewal periods that are reasonably certain to be exercised. CCA implementation costs are included within operating activities in the Company’s consolidated statements of cash flows. (h) Property and Equipment Property and equipment is recorded at cost less accumulated depreciation. Cost includes all direct costs necessary to acquire and prepare assets for use or to develop or obtain internal-use software, including internal labor. Depreciation is recorded using the straight-line method over the following estimated useful lives: Property and Equipment Estimated Useful Lives Building 40 years Leasehold and other improvements Lesser of 7 to 10 years or the expected lease term Equipment, furniture and fixtures 3 to 7 years Capitalized software 3 to 10 years At the time property and equipment are retired, the asset and accumulated depreciation are removed from the accounts, and any resulting gain or loss is included in earnings. The Company expenses repair and maintenance costs that maintain the appearance and functionality of the restaurant but do not extend the useful life of any restaurant asset. Improvements to leased properties are depreciated over the shorter of their useful life or the lease term, which includes a fixed, non-cancelable lease term plus any reasonably assured renewal periods. See Note 6 for additional information. (i) Impairment or Disposal of Long-Lived Assets Property and equipment and finite-life intangible assets are reviewed for impairment periodically and whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. The Company’s assessment of recoverability of property and equipment and finite-lived intangible assets is performed at the component level, which is generally an individual restaurant and requires judgment and an estimate of future restaurant generated cash flows. The Company’s estimates of fair values are based on the best information available and require the use of estimates, judgments, and projections. The Company did no t record any impairment losses on long-lived assets in fiscal years 2025, 2024, or 2023. F-10 (j) Goodwill and Indefinite-Lived Intangible Assets The Company’s indefinite-lived intangible assets consist of goodwill and trademarks, which are not subject to amortization. We generally record goodwill in connection with the acquisition of restaurants from franchisees. On an annual basis (October 1 st of each fiscal year) and whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable, the Company reviews the recoverability of goodwill and indefinite-lived intangible assets. No indications of impairment were identified during fiscal years 2025, 2024, or 2023. It is possible that changes in circumstances or changes in management’s judgments, assumptions, and estimates could result in an impairment charge of a portion or all of its goodwill or other intangible assets. (k) Foreign Currency Translation The foreign currency translation adjustment included in the Consolidated Statements of Comprehensive Income represents the unrealized impact of translating our foreign investment. This amount is not included in Net income and would only be realized upon disposition of our investment. The related Accumulated other comprehensive loss is presented in the Consolidated Balance Sheets. (l) Revenue Recognition Revenues consist primarily of royalties, national advertising fund (the "Ad Fund") contributions (advertising fees), initial and renewal franchise fees, and upfront fees from development agreements and international territory agreements. The Company's performance obligations under its franchise agreements consist of (a) a franchise license, (b) pre-opening services, such as training, and (c) ongoing services, such as management of the Ad Fund contributions, development of training materials and menu items, and restaurant monitoring. These performance obligations are highly interrelated, so they are not considered to be individually distinct and therefore are accounted for as a single performance obligation, which is satisfied by providing a right to use the Company's intellectual property over the term of each franchise agreement. Franchise fee, development fee and international territory fee payments received by the Company before the restaurant opens are recorded as deferred revenue in the Consolidated Balance Sheets. Royalties, including franchisee contributions to the Ad Fund, are calculated as a percentage of franchise restaurant sales over the term of the franchise agreement. Initial and renewal franchise fees are payable by the franchisee prior to the restaurant opening or at the time of a renewal of an existing franchise agreement. The Company's franchise agreement royalties, inclusive of Ad Fund contributions, represent sales-based royalties that are related entirely to the Company's performance obligation under the franchise agreement and are recognized as franchised restaurant sales occur, payable weekly. Additionally, initial and renewal franchise fees are recognized as revenue on a straight-line basis over the term of the respective agreement. The Company's performance obligation under development agreements and international territory agreements generally consists of an obligation to grant exclusive development rights over a stated term. These development rights are not distinct from franchise agreements, so upfront fees paid by franchisees for development rights are apportioned to each franchised restaurant opened and accounted for as an initial franchise fee. The Company records food and beverage revenues from company-owned restaurants upon sale to the customer. The Company collects and remits sales, food and beverage, alcoholic beverage, and hospitality taxes on transactions with customers and reports such amounts under the net method in its Consolidated Statements of Comprehensive Income. Accordingly, these taxes are not included in gross revenue. The Company records a liability in the period in which a gift card is sold. As gift cards are redeemed, the liability is reduced. When gift cards are redeemed at a franchisee-operated restaurant, the revenue and related administrative costs are recognized by the franchisee. The Company recognizes revenue and related administrative costs when gift cards are redeemed at company-owned restaurants. (m) Consideration from Vendors The Company has entered into food and beverage supply agreements with certain major vendors. Pursuant to the terms of these arrangements, rebates are provided to the Company from the vendors based upon the dollar volume of purchases for company-owned restaurants and franchised restaurants. These incentives are recognized as earned throughout the year and are classified as a reduction in Cost of sales with any consideration received in excess of the total expense of the vendor’s products included within Royalty revenue, franchise fees and other within the Consolidated Statements of Comprehensive Income. The incentives recognized were approximately $ 24.5 million, $ 25.3 million, and $ 17.7 million, during fiscal years 2025, 2024, and 2023, F-11 respectively, of which $ 3.2 million, $ 3.1 million, and $ 2.3 million was classified as a reduction in Cost of sales during fiscal years 2025, 2024, and 2023, respectively. (n) Advertising Expenses The Company administers the Ad Fund, for which a percentage of gross sales is collected from domestic restaurant franchisees and company-owned restaurants to be used for various forms of advertising for the Wingstop brand. Effective the first day of fiscal year 2025, domestic franchisees’ contribution rates to the national advertising fund increased to 5.5 %, up from 5.3 %, of gross sales. The national advertising fund contribution rate was 5.3 % for fiscal year 2024. The Company administers and directs the development of all advertising and promotion programs in the Ad Fund for which it collects advertising contributions in accordance with the provisions of its franchise agreements. The Company has a contractual obligation with regard to these advertising contributions. The Company consolidates and reports all assets and liabilities of the Ad Fund as restricted assets of the Ad Fund and liabilities of the Ad Fund within current assets and current liabilities, respectively, in the Consolidated Balance Sheets. As of December 27, 2025, the restricted assets and liabilities of the Ad Fund consisted of $ 5.9 million of cash and cash equivalents, $ 10.2 million of accounts receivable, $ 10.2 million of accrued expenses, and $ 5.9 million of accounts payable. As of December 28, 2024, the restricted assets and liabilities of the Ad Fund consisted of $ 23.7 million of cash and cash equivalents, $ 9.0 million of accounts receivable, $ 15.3 million of accrued expenses, and $ 17.3 million of accounts payable. Pursuant to the Company’s franchise agreements, use of Ad Fund contributions is restricted to advertising, public relations, merchandising, similar activities, and administrative expenses to increase sales and further enhance the public reputation of the Wingstop brand. The aforementioned administrative expenses may also include personnel expenses and allocated costs incurred by the Company that are directly associated with administering the Ad Fund, as outlined in the provisions of the applicable franchise agreements. The Company expenses the production costs of advertising in the period in which the advertising first occurs. All other advertising and promotional costs are expensed in the period incurred. When contributions to the Ad Fund exceed the related advertising expenses, advertising costs are accrued up to the amount of the related contributions. Ad Fund contributions and expenditures are reported on a gross basis on the Consolidated Statements of Comprehensive Income. Advertising expenses incurred by company-owned restaurants are included within Cost of sales in the Consolidated Statements of Comprehensive Income. Company-owned restaurants incurred advertising expenses of $ 7.2 million, $ 6.3 million, and $ 4.9 million in fiscal years 2025, 2024, and 2023, respectively. (o) Leases The Company determines whether an arrangement is a lease at inception and leases restaurants and office space under operating leases. Most lease agreements contain tenant improvement allowances, rent holidays, rent escalation clauses, and/or contingent rent provisions. For leases with renewal periods at the Company’s option, the Company determines the expected lease period based on whether the renewal of any options are reasonably certain at the inception of the lease. For purposes of measurement and amortization of the right-of-use asset and associated lease liability over the terms of the leases, the Company uses the date it takes possession of the leased space for construction purposes at the beginning of the lease term, which is generally two to three months prior to a restaurant’s opening date. As most 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 which are not separated. Certain leases require the Company to pay a portion of real estate taxes, utilities, building operating expenses, insurance, and other charges in addition to rent. (p) Stock-Based Compensation The Company measures stock-based compensation cost at fair value on the date of grant for all share-based awards and recognizes compensation expense over the service period that the awards are expected to vest. The Company has elected to recognize compensation cost for graded-vesting awards subject only to a service condition over the requisite service period of the entire award. For performance awards, the Company recognizes expense in the period in which vesting becomes probable. The Company accounts for forfeitures as they occur. F-12 (q) Income Taxes Income taxes are accounted for under the asset and liability method. Under this method, a deferred tax asset or liability is recognized for the estimated future tax effects attributable to temporary differences between the financial statement basis and the tax basis of assets and liabilities as well as tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period of the change. The Company files a consolidated federal income tax return including all of its wholly-owned subsidiaries. Judgment is required in evaluating the Company’s uncertain tax positions and determining the Company’s income tax expense. The Company assesses the income tax position and records the liabilities for all years subject to examination based upon management’s evaluation of the facts, circumstances, and information available at the reporting date. (r) Recent Accounting Pronouncements In November 2024, Financial Accounting Standards Board (the “FASB”) issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses , which requires, for each relevant expense caption on the income statement, detailed disclosure amounts for purchases of inventory, employee compensation, depreciation, and intangible asset amortization. In January 2025, the FASB issued ASU 2025-01, Income Statement - Reporting Comprehensive Income - Clarifying the Effective Date , which clarifies the effective date of ASU 2024-03 for all public business entities to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. ASU 2024-03 can be applied either prospectively or retrospectively. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and disclosures. In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This amendment introduces a practical expedient for the application of the current expected credit loss (“CECL”) model to current accounts receivable and contract assets. The amendment is effective for annual and interim reporting periods beginning after December 15, 2025, on a prospective basis, with early adoption permitted. We do not expect the adoption of this ASU to have a material impact on our consolidated financial statements. In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software , which updated software development recognition guidance. The guidance is effective for fiscal years beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted. We are currently evaluating the impact of adopting this ASU on our financial statements and disclosures. Recently adopted In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The ASU includes amendments requiring enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The Company adopted this guidance for the fiscal year ending December 27, 2025. Refer to Note 9 for our disclosure related to income taxes. We reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact on our consolidated financial statements. (2) Earnings Per Share Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of shares of common stock outstanding for the reporting period. Diluted earnings per share reflects the potential dilution that could occur if securities convertible into, or other contracts to issue, common stock were exercised or converted into common stock. For the calculation of diluted earnings per share, the basic weighted average number of shares is increased by the dilutive effect of the exercise and vesting of stock options and service-based and performance-based restricted stock units, respectively, determined using the treasury stock method. F-13 Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands): Fiscal Year December 27, 2025 December 28, 2024 December 30, 2023 Basic weighted average shares outstanding 27,974 29,262 29,769 Dilutive shares 100 122 87 Diluted weighted average shares outstanding 28,074 29,384 29,856 At December 27, 2025 and December 28, 2024, approximately 1,000 equity awards were outstanding and were excluded from the dilutive earnings per share calculation because the effect would have been anti-dilutive. No equity awards were excluded from the dilutive earnings per share calculation at December 30, 2023 because the effect would have been anti-dilutive. (3) Stockholders’ Deficit Dividends In connection with the Company's regular dividend program, the Company declared and paid dividends of $ 31.8 million, or $ 1.14 per common share, in fiscal year 2025, $ 28.7 million, or $ 0.98 per common share, in fiscal year 2024, and $ 24.4 million, or $ 0.82 per common share, in fiscal year 2023. Subsequent to the end of fiscal year 2025, on February 17, 2026, the Company’s board of directors declared a quarterly dividend of $ 0.30 per share of common stock, to be paid on March 27, 2026 to stockholders of record as of March 6, 2026, totaling approximately $ 8.3 million. Share Repurchase Program The following table summarized shares repurchased and retired, and the average price per share, during the periods presented: December 27, 2025 December 28, 2024 December 30, 2023 # of shares Weighted average price per share # of shares Weighted average price per share # of shares Weighted average price per share 2023 & 2024 ASR Agreements 317,202 292.28 551,325 305.33 645,952 $ 193.51 Share repurchases 901,191 243.81 169,479 377.09 — — Total share repurchases 1,218,393 $ 256.43 720,804 $ 322.20 645,952 $ 193.51 In August 2023, the Company announced a share repurchase program (the "Share Repurchase Program”), authorizing the repurchase of up to $ 250.0 million of its outstanding shares of common stock and entered into an accelerated share repurchase agreement (the “2023 ASR Agreement”) with a third-party financial institution to repurchase $ 125.0 million of the Company’s common stock. Final settlement of the 2023 ASR Agreement occurred in December 2023. In December 2024, the Company’s Board of Directors authorized the purchase of an additional $ 500.0 million of its outstanding shares of common stock under the Share Repurchase Program and entered into an accelerated share repurchase agreement (the "2024 ASR Agreement”) with a third-party financial institution to repurchase $ 250.0 million of the Company’s common stock. Final settlement of the 2024 ASR Agreement occurred in February 2025. Since the inception of the Company’s share repurchase program in August 2023, the Company has repurchased and retired 2,585,149 shares of its common stock at an average price of $ 258.64 . As of December 27, 2025, $ 91.3 million remained available under the Share Repurchase Program. (4) Fair Value Measurements Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. Assets and liabilities are classified using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value as follows: F-14 Level 1 - Unadjusted quoted prices for identical instruments traded in active markets. Level 2 - Observable market-based inputs or unobservable inputs corroborated by market data. Level 3 - Unobservable inputs reflecting management’s estimates and assumptions. The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to their short-term nature. Certain assets are measured at fair value on a non-recurring basis using Level 3 inputs. The fair value of the Company’s preferred equity investment in the Company’s United Kingdom master franchisee Lemon Pepper Holdings Ltd. (“LPH”) was estimated using a discounted cash flow model that incorporates unobservable inputs, including expected cash flows, discount rates, and an assumed maturity term of approximately five years. Based on this valuation approach, the estimated fair value of the preferred investment was determined at $ 87.5 million. The carrying value of the investment as of December 27, 2025 was $ 85.6 million, net of an allowance for credit losses of $ 5.1 million. Fair value of debt and the investment in debt securities are determined on a non-recurring basis, which results are summarized as follows (in thousands): Fair Value Hierarchy December 27, 2025 December 28, 2024 Carrying Value Fair Value Carrying Value Fair Value Securitized Financing Facility: 2020-1 Class A-2 Senior Secured Notes (1) Level 2 $ 472,800 $ 456,961 $ 472,800 $ 439,846 2022-1 Class A-2 Senior Secured Notes (1) Level 2 $ 248,125 $ 240,061 $ 248,125 $ 230,905 2024-1 Class A-2 Senior Secured Notes (1) Level 2 $ 500,000 $ 514,500 $ 500,000 $ 496,050 Investments in bonds of LPH (2) Level 3 $ 85,597 $ 87,482 $ 3,699 $ 4,560 (1) The fair value of the 2020-1, 2022-1, and 2024-1 Class A-2 Senior Secured Notes was estimated using available market information. (2) The fair value approximates discounted cash flows using current market rates for debt investments with similar maturities and credit risk. Refer to Note 10 for additional information regarding the Company’s investments The Company also measures certain non-financial assets (primarily long-lived assets, intangible assets, and goodwill) at fair value on a non-recurring basis in connection with its periodic evaluations of such assets for potential impairment. (5) Accounts Receivable, net Accounts receivable, net, consist of the following (in thousands): December 27, 2025 December 28, 2024 Vendor rebates receivable $ 7,202 $ 7,575 Royalties receivable 10,611 8,641 Other receivables, net 3,010 3,445 Accounts receivable, net $ 20,823 $ 19,661 F-15 (6) Property and Equipment Property and equipment, net, consisted of the following (in thousands): December 27, 2025 December 28, 2024 Building $ — $ 15,769 Construction in progress 37,438 15,088 Equipment, furniture and fixtures 27,040 21,900 Leasehold and other improvements 35,008 37,560 Capitalized software 88,960 79,186 Land — 2,828 Property and equipment, gross 188,446 172,331 Less: accumulated depreciation ( 57,865 ) ( 46,378 ) Property and equipment, net $ 130,581 $ 125,953 Depreciation expense was $ 20.8 million, $ 16.2 million, and $ 10.6 million for the fiscal years ended December 27, 2025, December 28, 2024, and December 30, 2023, respectively. (7) Intangible Assets and Goodwill The Company’s goodwill and other intangible assets arose from Wingstop’s acquisition of the equity interests of Wingstop Holdings, Inc. in April 2010, as well as the acquisition of restaurants from franchisees. Goodwill represents the excess of purchase consideration transferred for the respective reporting unit over the fair value of the business at the time of the acquisition. The following is a summary of goodwill balances and activity (in thousands): December 27, 2025 December 28, 2024 Balance, beginning of period $ 74,718 $ 67,708 Acquisition of restaurants, net 9,157 7,010 Balance, end of period $ 83,875 $ 74,718 Intangible assets, excluding goodwill, consisted of the following (in thousands): December 27, 2025 December 28, 2024 Weighted Average Amortization Period (in years) Intangible assets: Trademarks $ 32,700 $ 32,700 Indefinite-lived assets 32,700 32,700 Customer relationships (1) 26,300 26,300 20.0 Franchise rights (1) 29,979 20,879 7.3 Less: accumulated amortization ( 32,106 ) ( 27,814 ) Definite-lived assets 24,173 19,365 14.7 Intangible assets, net $ 56,873 $ 52,065 (1) Included within Other non-current assets, net within the Consolidated Balance Sheets. F-16 Amortization expense for definite-lived intangibles was $ 4.3 million in fiscal year 2025, $ 3.3 million in fiscal year 2024, and $ 2.7 million in fiscal year 2023. Estimated amortization expense, for the five succeeding fiscal years and the aggregate thereafter is (in thousands): Fiscal year 2026 $ 4,950 Fiscal year 2027 4,819 Fiscal year 2028 4,636 Fiscal year 2029 4,332 Fiscal year 2030 2,209 Thereafter 3,227 Total $ 24,173 (8) Other Current Liabilities Other current liabilities consisted of the following (in thousands): December 27, 2025 December 28, 2024 Accrued payroll and incentive compensation $ 11,371 $ 15,516 Current portion of deferred revenues 6,928 5,963 Other accrued liabilities 31,445 25,303 Total $ 49,744 $ 46,782 (9) Income Taxes Income tax expense for the fiscal years 2025, 2024, and 2023 consisted of the following (in thousands): Fiscal Year December 27, 2025 December 28, 2024 December 30, 2023 Income (losses) before taxes U.S. $ 134,071 $ 153,831 $ 97,182 Foreign 103,118 ( 6,641 ) ( 2,872 ) Total income before taxes $ 237,189 $ 147,190 $ 94,310 Current expense Federal $ 21,292 $ 32,597 $ 19,398 State 4,647 6,389 4,586 Foreign 1,120 1,296 610 Deferred expense (benefit) Federal 31,751 ( 1,533 ) ( 314 ) State 3,115 ( 276 ) ( 145 ) Foreign 997 — — Income tax expense $ 62,922 $ 38,473 $ 24,135 We adopted ASU 2023-09 "Income Taxes (Topic 740): Improvements To Income Tax Disclosures" on a prospective basis beginning with the year ended December 27, 2025. The following table presents required disclosure pursuant to ASU 2023-09 and reconciles the U.S. federal statutory tax amount and rate to our actual global effective amount and rate for the year ended December 27, 2025 (in thousands): F-17 December 27, 2025 U.S. federal statutory tax rate $ 49,809 21.00 % State and local taxes, net of federal income tax effect (a) 6,655 2.81 Foreign tax effects 2,117 0.89 Effects of cross-border tax laws Subpart F income 7,042 2.97 Basis difference in foreign investments 15,690 6.61 Other ( 1,233 ) ( 0.52 ) Tax credits ( 2,030 ) ( 0.85 ) Nontaxable or nondeductible items Excess tax benefits from equity compensation ( 4,035 ) ( 1.70 ) Officer compensation disallowance 8,560 3.61 Reversal of GAAP gain on sale of business interest ( 20,420 ) ( 8.61 ) Other ( 995 ) ( 0.42 ) Changes in unrecognized tax benefits 3,114 1.31 Other adjustments ( 1,352 ) ( 0.57 ) Effective tax rate 62,922 26.53 % (a) State taxes in California and Texas made up the majority (greater than 50 percent) of the tax effect in this category. The following table presents the required disclosures prior to adoption of ASU 2023-09 and reconciles the income tax at the U.S. federal statutory tax rate to the global effective income tax rate for fiscal years 2024 and 2023 in dollars (in thousands): December 28, 2024 December 30, 2023 Expected income tax expense at statutory rate $ 30,910 $ 19,777 Excess tax benefits from equity compensation ( 2,404 ) ( 1,275 ) Non-deductible expenses 5,954 3,106 State tax expense, net of federal benefit 4,771 3,164 Foreign tax expense 1,296 610 Foreign tax and other tax credits ( 2,708 ) ( 1,760 ) Increase in unrecognized tax benefit 672 398 Other ( 18 ) 115 Income tax expense $ 38,473 $ 24,135 F-18 The components of deferred tax assets (liabilities) were as follows (in thousands): December 27, 2025 December 28, 2024 Deferred tax assets: Deferred revenue $ 8,911 $ 6,671 Accrued incentive compensation 1,171 2,096 Stock based compensation 1,753 1,766 Lease liabilities 14,277 13,601 Intangible assets 483 294 Other 1,778 1,112 Net operating loss carry-forwards and credits 538 538 Valuation allowance ( 577 ) ( 577 ) 28,334 25,501 Deferred tax liabilities: Intangible assets ( 14,800 ) ( 10,275 ) Research and development expenses ( 15,657 ) ( 733 ) Right of use assets ( 11,326 ) ( 11,227 ) Property and equipment ( 1,298 ) ( 4,351 ) Basis difference in foreign investments ( 18,395 ) — ( 61,476 ) ( 26,586 ) Net deferred tax liability $ ( 33,142 ) $ ( 1,085 ) The Company had a state net operating loss carry-forward of $ 23.3 million at December 27, 2025 and December 28, 2024. The state net operating loss carry forwards begin to expire in 2030. The Company had a valuation allowance of $ 0.6 million against its deferred tax assets as of December 27, 2025 and December 28, 2024. In assessing whether a deferred tax asset will be realized, the Company considers whether it is more likely than not that either some portion or all of the deferred tax assets will not be realized. The Company considers the reversal of existing taxable temporary differences, projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, the Company believes it is more likely than not that it will realize a portion of the benefits of the federal and state deductible differences. The Company files income tax returns, which are periodically audited by various federal and state jurisdictions. The Company's income tax returns prior to tax year 2021 are generally considered closed to examination by the applicable tax authorities. F-19 A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Balance as of December 26, 2022 $ 1,298 Additions for tax positions of prior years — Subtractions for tax positions of prior years ( 65 ) Additions for tax positions of current year 468 Subtractions for tax positions of current year — Balance as of December 30, 2023 1,701 Additions for tax positions of prior years — Subtractions for tax positions of prior years ( 118 ) Additions for tax positions of current year 740 Subtractions for tax positions of current year — Balance as of December 28, 2024 2,323 Additions for tax positions of prior years — Subtractions for tax positions of prior years ( 76 ) Additions for tax positions of current year 3,061 Subtractions for tax positions of current year — Balance as of December 27, 2025 $ 5,308 As of December 27, 2025 and December 28, 2024, the accrued interest and penalties on the unrecognized tax benefits were $ 1.7 million and $ 0.9 million, respectively, excluding any related income tax benefits. The Company recorded accrued interest related to the unrecognized tax benefits and penalties as a component of the provision for income taxes recognized in the Consolidated Statement of Comprehensive Income. At December 27, 2025 and December 28, 2024, the amount of unrecognized tax benefits was $ 5.3 million and $ 2.3 million, respectively, which, if ultimately recognized, would reduce the Company’s effective tax rate. The components of income taxes paid were as follows (in thousands): December 27, 2025 Net income taxes paid - federal $ 21,394 Net income taxes paid - state California 2,417 Other states 2,301 Net income taxes paid - foreign 1,288 Income taxes paid $ 27,400 On July 4, 2025, the One Big Beautiful Bill Act ("the Act") was signed into law. The Act makes permanent key elements of the Tax Cuts and Jobs Act, including 100 percent bonus depreciation, domestic research cost expensing, and makes modifications to the international tax framework. The Act includes multiple effective dates, with certain provisions effective in 2025 and others phased in through 2027. All relevant law changes taking effect in 2025 are reflected in the December 27, 2025 financial statements. We will continue to evaluate the impact of the Act's provisions that take effect in future years. (10) Investments In the first fiscal quarter of 2025, LPH, which was an unconsolidated equity method investment of the Company, completed a transaction to sell all its outstanding equity to a third party. The Company received proceeds of $ 107.7 million in the fiscal first quarter 2025 and recognized a gain of $ 97.2 million in Investment (income) expense on the Consolidated Statements of Comprehensive Income. The Company reinvested $ 75.4 million in a newly formed entity for an 18.75 % non-controlling equity interest. Substantially all of the reinvestment in the newly formed entity consisted of preference shares, which will be accounted for as held-to-maturity debt securities, recorded on an amortized cost basis. Interest income related to the securities will be recognized F-20 using the effective interest method in Interest expense, net on the Consolidated Statements of Comprehensive Income. Held-to-maturity debt securities are evaluated for credit losses on a quarterly basis under CECL methodology with an allowance recorded within Investments on the Consolidated Balance Sheets for expected lifetime credit losses. When evaluating an investment for its current expected credit losses, the Company reviews factors such as credit ratings, term and macroeconomic trends, including current conditions and forecasts to the extent they are reasonable and supportable. In connection with the investment in preference shares during the fiscal first quarter 2025, the Company recorded a provision for credit losses of $ 4.7 million in Investment (income) expense on the Consolidated Statements of Comprehensive Income. In addition, the Company received 18.75 % of the outstanding common shares, which will be accounted for using the equity method of accounting, under which the Company’s share of the income of the investee will be recorded in Investment (income) expense on the Consolidated Statements of Comprehensive Income. (11) Debt Obligations Long-term debt consisted of the following components (in thousands): December 27, 2025 December 28, 2024 2020-1 Class A-2 Senior Secured Notes $ 472,800 472,800 2022-1 Class A-2 Senior Secured Notes 248,125 248,125 2024-1 Class A-2 Senior Secured Notes 500,000 500,000 Debt issuance costs, net of amortization ( 11,831 ) ( 14,724 ) Less: current portion of debt — — Long-term debt, net $ 1,209,094 $ 1,206,201 As of December 27, 2025, the scheduled principal payments on debt were as follows (in thousands): Fiscal year 2026 $ — Fiscal year 2027 472,800 Fiscal year 2028 — Fiscal year 2029 248,125 Fiscal year 2030 — Thereafter 500,000 Total $ 1,220,925 Securitized Financing Facility On December 3, 2024, the Company completed a securitized financing transaction, in which Wingstop Funding LLC, a limited purpose, bankruptcy-remote, indirect wholly owned subsidiary of the Company (the “Issuer”), issued $ 500 million of its Series 2024-1 5.858 % Fixed Rate Senior Secured Notes, Class A-2 (the “2024 Class A-2 Notes”). The Issuer also increased the capacity of its revolving financing facility of Series 2022-1 Variable Funding Senior Notes, Class A-1 (the “Variable Funding Notes”) from $ 200 million to $ 300 million. Following the increase, borrowing capacity under the Variable Funding Notes permits borrowings of up to a maximum principal amount of $ 300 million, of which a portion may be used to issue letters of credit. The 2024 Class A-2 Notes and the Variable Funding Notes are referred to collectively as the “2024 Notes.” The proceeds from the securitized financing transaction were used to pay related transaction fees and expenses, strengthen the Company's liquidity position and for general corporate purposes, including the repurchase of shares of the Company’s common stock. In addition to the 2024 Notes, the Company’s outstanding debt consists of its existing Series 2022-1 3.734 % Fixed Rate Senior Secured Notes, Class A-2 (the “2022 Notes”) and Series 2020-1 2.84 % Fixed Rate Senior Secured Notes, Class A-2 (the “2020 Notes”), which have an anticipated repayment date of March 2029 and December 2027, respectively. No borrowings were outstanding under the Variable Funding Notes as of December 27, 2025. The 2024 Notes were issued in a securitization transaction, which is guaranteed by certain limited-purpose, bankruptcy-remote, wholly owned indirect subsidiaries of the Company and secured by a security interest in substantially all of their assets, F-21 including certain domestic and foreign revenue-generating assets, consisting principally of franchise-related agreements, intellectual property, and vendor rebate contracts. The 2024 Notes were issued pursuant to a second amended and restated base indenture and related supplemental indentures (collectively, the “Indenture”). Interest and principal payments on the 2024 Class A-2 Notes are payable on a quarterly basis. The requirement to make such quarterly principal payments on the 2024 Class A-2 Notes is subject to certain financial conditions set forth in the Indenture. The legal final maturity date of the 2024 Notes is in December of 2054, but, unless earlier prepaid to the extent permitted under the Indenture, the anticipated repayment date of the 2024 Class A-2 Notes is December 2031. If the Issuer has not repaid or refinanced the 2024 Class A-2 Notes prior to the anticipated repayment date, additional interest will accrue on the 2024 Notes. The Variable Funding Notes accrue interest at a variable rate based on (i) the prime rate, (ii) the overnight federal funds rates, (iii) the secured overnight financing rate, or (iv) with respect to advances made by conduit investors, the weighted average cost of, or related to, the issuance of commercial paper allocated to fund or maintain such advances, in each case plus any applicable margin, as more fully set forth in the 2024 Variable Funding Note Purchase Agreement, dated December 3, 2024, and the indenture supplement. Commitment fees and other usage fees apply to the Variable Funding Notes facility depending on the type of borrowing requested. There is a 60 -basis points draw fee on borrowings requested pursuant to the terms of the Variable Fund Notes. Additionally, during a commitment availability period, there is a 30 -basis point commitment fee on the committed portion of the Variable Funding Notes. The 2020 Notes, 2022 Notes, and the 2024 Notes (together, the “Notes”) are subject to a series of covenants and restrictions customary for transactions of this type, including (i) that the Issuer maintains specified reserve accounts to be used to make required payments in respect of the Notes, (ii) provisions relating to optional and mandatory prepayments and the related payment of specified amounts, including specified make-whole payments in the case of the Notes under certain circumstances, (iii) certain indemnification payments in the event, among other things, that the assets pledged as collateral for the Notes are in stated ways defective or ineffective, and (iv) covenants relating to recordkeeping, access to information, and similar matters. The Notes are also subject to customary rapid amortization events provided for in the indenture, including events tied to failure to maintain stated debt service coverage ratios, the sum of global gross sales for specified restaurants being below certain levels on certain measurement dates, certain change of control and manager termination events, an event of default, and the failure to repay or refinance the Notes on the applicable scheduled maturity date. The Notes are also subject to certain customary events of default, including events relating to non-payment of required interest, principal or other amounts due on or with respect to the Notes, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties, failure of security interests to be effective, and certain judgments. As of December 27, 2025, the Company was in compliance with all financial covenants. Total debt issuance costs incurred and capitalized in connection with the issuance of the 2024 Notes and 2022 Notes were $ 8.0 million and $ 5.5 million, respectively. As of December 27, 2025, the Company’s leverage ratio under the 2020 Class A-2 Notes, the 2022 Class A-2 Notes, and the 2024 Class A-2 Notes was less than 5.0 x. Per the terms of the Company’s debt agreements, principal payments can be suspended at the borrower’s election until the repayment date as long as the Company maintains a leverage ratio of less than 5.0 x. Accordingly, the Company elected to suspend payments following the principal payment made in the second quarter of 2023, and the entire outstanding balance of the 2020 Class A-2 Notes, the 2022 Class A-2 Notes, and the 2024 Class A-2 Notes has been classified as long-term debt due after fiscal year 2026. The 2020 Class A-2 Notes, the 2022 Class A-2 Notes, and the 2024 Class A-2 Notes are generally subject to 1 % annual amortization. (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). F-22 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. F-23 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 Classification December 27, 2025 December 28, 2024 Right-of-use assets Other non-current assets, net $ 48,637 $ 49,046 Current lease liabilities Other current liabilities 3,232 1,059 Non-current lease liabilities Other non-current liabilities 58,080 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 leases 11.0 years 11.3 years 7.1 years Weighted average discount rate of operating leases 6.25 % 6.08 % 4.52 % Maturities of lease liabilities by fiscal year are as follows (in thousands): Fiscal year 2026 $ 8,335 Fiscal year 2027 8,269 Fiscal year 2028 8,304 Fiscal year 2029 7,955 Fiscal year 2030 7,755 Thereafter 46,180 Total future minimum lease payments 86,798 Less: imputed interest ( 25,486 ) Total lease liabilities $ 61,312 (13) Commitments and Contingencies The Company is subject to legal proceedings, claims, and liabilities, such as employment-related claims and other cases, which arise in the ordinary course of business and are generally covered by insurance. In the opinion of management, the amount of ultimate liability with respect to those actions should not have a material adverse impact on financial position, results of operations, or cash flows. F-24 (14) Employee Benefit Plan The Company sponsors a 401(k) profit sharing plan for all employees who are eligible based upon age and length of service. The Company made matching contributions of approximately $ 1.5 million, $ 1.2 million, and $ 1.1 million for fiscal years 2025, 2024, and 2023, respectively. (15) Stock-Based Compensation In May 2024, the Company’s stockholders approved the adoption of the 2024 Omnibus Award Plan (the “2024 Plan”). All equity grants subject to FASB ASC Topic 718 after the date of approval are made under the 2024 Plan. No further equity grants after that date are permitted under the 2015 Omnibus Award Plan (as amended, the “2015 Plan”). The 2024 Plan is currently the only equity plan from which future equity awards may be granted, but outstanding awards granted under the 2015 Plan will continue to be governed by the terms of the 2015 Plan and the underlying award agreement. The 2024 Plan provides for the grant or award of stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance unit awards, performance share awards, cash-based awards and other stock-based awards to employees, directors, and other eligible persons. Stock options issued under the 2024 Plan expire ten years from the date of the grant. As of December 27, 2025, there were approximately 1.6 million shares available for future grants under the 2024 Plan. In the event of a change in control of the Company (as defined in the 2024 Plan) in connection with which the board of directors or the Compensation Committee of the board of directors determines prior to such change in control that outstanding awards will be honored or assumed or new rights substituted therefore (as required by the Plan), each outstanding award will continue to vest in accordance with its terms. In the event the outstanding awards are not assumed or new rights substituted therefore in connection with the transaction, the awards will become fully vested and, to the extent applicable, exercisable immediately prior to the change in control and shall be exchanged for cash. Stock-based compensation is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the requisite employee service period. The Company recognized approximately $ 24.9 million, $ 22.1 million, and $ 15.6 million in stock compensation expense, net of forfeitures, for fiscal years 2025, 2024, and 2023, respectively, with a corresponding increase to additional paid-in-capital. The Company recognized forfeitures of $ 2.2 million and $ 0.8 million for fiscal years 2025 and 2024, respectively. Stock compensation expense is included in Selling, general and administrative in the Consolidated Statements of Comprehensive Income. Assumptions made regarding forfeitures in determining the remaining unamortized share-based compensation are re-evaluated periodically. Stock Options The following table summarizes stock option activity: Number of Shares (in thousands) Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Remaining Term (in years) Stock options outstanding at December 28, 2024 20 $ 125.17 $ 3,266 6.6 Options granted — — Options exercised ( 5 ) 134.74 Options forfeited — — Stock options outstanding at December 27, 2025 15 122.44 $ 2,120 5.5 Stock options exercisable at December 27, 2025 16 $ 122.44 $ 2,120 5.5 The total intrinsic value of stock options exercised was $ 1.0 million, $ 2.0 million, and $ 0.4 million for fiscal years 2025, 2024, and 2023, respectively. As of December 27, 2025, there was no unrecognized stock compensation expense related to non-vested stock options. F-25 Restricted Stock Units Restricted stock units are granted to employees and generally vest in equal annual amounts over a three year period. The fair value of restricted stock units is based on the closing price on the date of grant. The following table summarizes activity related to restricted stock units: Number of Shares (in thousands) Weighted Average Grant Date Fair Value Nonvested restricted stock units at December 28, 2024 75 $ 220.38 Units granted 98 250.97 Units vested ( 43 ) 172.68 Units forfeited ( 11 ) 254.18 Nonvested restricted stock units at December 27, 2025 119 $ 259.66 As of December 27, 2025, total unrecognized compensation expense related to unvested restricted stock units was $ 24.3 million, which is expected to be recognized over a weighted-average period of 2.4 years. The weighted-average grant date fair value of restricted stock units granted was $ 250.97 , $ 362.70 , and $ 174.57 in fiscal years 2025, 2024, and 2023, respectively. The total fair value of restricted stock units that vested in fiscal years 2025, 2024, and 2023 was $ 7.4 million, $ 4.0 million, and $ 2.1 million, respectively. Performance Stock Units Performance stock units (“PSUs”) represent a right to receive a certain number of shares of common stock based on the achievement of company performance goals and continued employment during the vesting period. Performance stock units cliff-vest at the end of a three year service period, cliff-vest at the end of a five year service period, or vest in equal annual amounts over a three year period. Vested amounts may range from 0 % to a maximum of 250 % of targeted amounts depending on the achievement of performance measures at the end of each vesting period. Such performance measures are based on the Company meeting net new restaurant targets, return on incremental investment targets, or sales targets for the vesting period. The fair value of PSUs is based on the closing price on the date of grant. The compensation expense related to these PSUs is recognized over the vesting period when the achievement of the performance conditions becomes probable. The total compensation cost for the PSUs is determined based on the most likely outcome of the performance condition and the number of awards expected to vest. The following table summarizes activity related to performance stock units: Number of Shares (in thousands) Weighted Average Grant Date Fair Value Nonvested performance stock units at December 28, 2024 91 $ 208.62 Units granted (a) 145 159.13 Units vested ( 90 ) 135.96 Units forfeited ( 4 ) 270.72 Nonvested performance stock units at December 27, 2025 142 $ 250.38 (a) Includes 52,000 incremental PSUs earned with respect to the PSUs granted in fiscal year 2022 and vested in fiscal year 2025 at greater than 100% of target based on performance. As of December 27, 2025, total unrecognized compensation expense related to unvested PSUs was $ 25.5 million, which is expected to be recognized over a weighted average period of 2.3 years. The weighted-average grant date fair value of performance stock units granted was $ 159.13 , $ 306.61 , and $ 145.15 in fiscal years 2025, 2024, and 2023, respectively. The total fair value of performance stock units that vested in fiscal years 2025, 2024, and 2023 was $ 12.2 million, $ 2.5 million, and $ 3.1 million, respectively. F-26 (16) Restaurant Transactions The Company acquired five restaurants from franchisees during the fiscal year ended December 27, 2025, four restaurants from franchisees during the fiscal year ended December 28, 2024, and three restaurants from franchisees during the fiscal year ended December 30, 2023. The total purchase prices are reflected in the table below and were all funded by cash flows from operations. The following table summarizes the allocations of the purchase prices to the estimated fair values of assets acquired and liabilities assumed as a result of these acquisitions (in thousands): Fiscal Year December 27, 2025 December 28, 2024 December 30, 2023 Working capital $ 82 $ 44 $ — Property and equipment 193 253 217 Reacquired franchise rights 9,100 6,710 5,330 Goodwill 9,157 7,041 5,285 Total purchase price $ 18,532 $ 14,048 $ 10,832 The results of operations of these restaurants are included in the Consolidated Statements of Comprehensive Income since the date of acquisition. The acquisitions were accounted for as business combinations. The excess of the purchase price over the aggregate fair value of assets acquired was allocated to goodwill and is attributable to the benefits expected as a result of the acquisition, including sales and growth opportunities. All of the goodwill from the acquisitions is expected to be deductible for federal income tax purposes. Pro-forma financial information of the combined entities is not presented due to the immaterial impact of the financial results of the acquired restaurants on our consolidated financial statements. The fair value measurement of tangible and intangible assets and liabilities as of the acquisition date is based on significant inputs not observed in the market and thus represents a Level 3 fair value measurement. Fair value measurements for reacquired franchise rights were determined using the income approach. Fair value measurements for property and equipment were determined using the cost approach. During fiscal year 2024, the Company completed the sale of seven company-owned restaurants in the New York market to a franchisee for aggregate proceeds of $ 4.0 million. In connection with the sale of the restaurants, the Company recorded a $ 1.0 million pre-tax gain on the sale of the related assets and liabilities, which was net of a $ 31,000 reduction in goodwill. The net gain on these restaurant sales was recorded in (Gain) loss on disposal of assets in the Consolidated Statements of Comprehensive Income. (17) Revenue from Contracts with Customers The following table represents a disaggregation of revenue from contracts with customers for the fiscal years 2025, 2024, and 2023 (in thousands): Fiscal Year December 27, 2025 December 28, 2024 December 30, 2023 Royalty revenue $ 292,466 $ 259,632 $ 186,455 Advertising fees 247,619 217,630 157,138 Franchise fees 6,505 6,080 5,064 Franchise fee, development fees, and international territory fee payments received by the Company are recorded as deferred revenue on the Consolidated Balance Sheets, which represents a contract liability. Deferred revenue is reduced as fees are recognized in revenue over the term of the franchise license for the respective restaurant. As the term of the franchise license is typically ten years , substantially all of the franchise fee revenue recognized in the current fiscal year was included in the F-27 deferred revenue balance as of December 28, 2024. Approximately $ 13.6 million and $ 13.5 million of deferred revenue as of December 27, 2025 and December 28, 2024, respectively, relates to restaurants that were not yet opened, so the fees are not yet being amortized. The weighted average remaining amortization period for deferred franchise and renewal fees related to open restaurants is 7.5 years. The Company did not have any material contract assets as of December 27, 2025. (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. F-28 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. F-29