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Earnings call: Wingstop reports robust Q3 growth, raises outlook

investing.com 31/10/2024 - 16:36 PM

Wingstop Inc. (NASDAQ:WING) Q3 Earnings Call Summary

Wingstop Inc. announced strong performance in its third-quarter earnings call on October 30, 2024. Key highlights from the call include:

Key Takeaways

  • Same-Store Sales Growth: Domestic same-store sales grew by 20.9%, marking 21 consecutive years of growth.
  • Revenue Growth: Total revenue surged 38.8% to $162.5 million.
  • Digital Sales: Digital sales accounted for 69% of total revenue, boosted by the MyWingstop platform.
  • Expansion Plans: The company plans to open 320-330 new restaurants in 2024, raising its previous target.
  • Unit Growth: Over 100 new restaurants opened in Q3, delivering a unit growth rate of 17%.

Company Outlook

  • 2024 Target: Same-store sales growth is anticipated at approximately 20%.
  • International Expansion: Plans to open 750 new restaurants in markets like France and Australia.
  • SG&A Guidance: Updated SG&A estimates range between $117.5-$118.5 million.

Challenges and Opportunities

  • Rising Costs: Food costs for company-owned restaurants increased to the mid-30% range due to higher wing prices.
  • Lower G&A Expense Growth: G&A expenses increased due to performance compensation but are expected to improve over time.
  • Profit Growth: Adjusted EBITDA rose 39.5% to $53.7 million, with earnings per share increasing 35.4% to $0.88.
  • Dividend Announcement: A dividend of $0.27 per share was announced, payable on December 6, 2024.

Future Growth Strategies

  • The NBA partnership and community initiatives remain crucial for brand visibility.
  • Continued focus on operational efficiency and managing commodity price volatility to drive growth.
  • Excitement among brand partners is at an all-time high, indicating strong investor sentiments.

With robust sales growth, a solid expansion strategy, and effective cost management, Wingstop is positioned for sustained success in the competitive quick-service restaurant sector.




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