WINGCAUTIOUS

Gross Margin

49.9%

Higher than 69% of Consumer Cyclical sector peers

Updated 96h ago

Sector Performance

69th percentile

WING

49.9%

Sector Median

36.3%

Sector Avg

30.6%

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Deep Analysis

Wingstop's gross margin of 49.9% means that for every dollar of revenue, the company keeps $0.499 after paying the direct costs of making its food, giving a picture of its production efficiency.

This figure sits above the Consumer Cyclical sector median of 36.3%, placing Wingstop in the 69th percentile among its peers, indicating above-average profitability relative to the industry. The year-over-year change is not available, but the quarter-over-quarter change shows a drop of -39.7% from the prior quarter's margin of 82.8%. A high gross margin paired with a sharp quarterly decline suggests that while the company retains strong pricing power, the sudden compression demands close attention to cost or revenue shifts. The combination of an elevated level but a steep downward trend introduces uncertainty, as the margin may be volatile rather than stable. This metric supports the overall CAUTIOUS verdict because the recent deterioration contradicts the otherwise favorable industry standing, reinforcing the need for careful monitoring.

Frequently Asked Questions

What does the Gross Margin tell investors about WING?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does WING's Gross Margin compare to its sector?

WING's Gross Margin of 49.9% compares to a Consumer Cyclical sector median of 36.3%, placing it in the 69th percentile.

Who are WING's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: BBY (23.5%), BROS (23.1%), TSLA (21.1%), XPEV (20.6%), BWA (19.2%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.