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Wingstop Shares Jump As Q4 Earnings Smashes Estimates

  • Wingstop Inc (NASDAQ: WING) reported fourth-quarter FY22 sales growth of 45.6% year-on-year to $104.87 million, beating the consensus of $100.90 million.

  • System-wide sales increased 28.9% Y/Y to $775.7 million, Domestic same-store sales increased 8.7% versus last year, and Digital sales were 63.2% of sales. Domestic restaurant AUV was $1.6 million.

  • Revenue from royalty, franchise fees, and others rose 42.3% Y/Y, Advertising fee revenue increased 61.7%, and company-owned restaurant sales grew 31.2%.

  • Total costs and expenses expanded 31.5% Y/Y to $75.99 million. The operating margin was 27.5%, and the operating income for the quarter jumped 103% to $28.8 million.

  • Adjusted EBITDA of $34.7 million increased 71.6% Y/Y.

  • Adjusted EPS of $0.60 beat the analyst consensus of $0.41.

  • Wingstop held $197.8 million in cash and equivalents as of Dec. 31, 2022.

  • The company's board of directors approved a quarterly dividend of $0.19 per share, which will be paid on Mar. 31, 2023, to stockholders of record as of Mar. 11, 2023.

  • Outlook: Wingstop reaffirmed its three- to five-year outlook of mid-single digit domestic same store sales growth. WING expects about 240 global net new units in 2023.

  • Price Action: WING shares are trading higher by 13.11% at $188.00 on the last check Wednesday.

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This article Wingstop Shares Jump As Q4 Earnings Smashes Estimates originally appeared on Benzinga.com

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