News

Wingstop CEO happy with Q1 performance

May 8, 2019

Wingstop had a lot to brag about Wednesday when it released its financials for Q1, which ended March 30, 2019. System-wide sales increased 15.8% to $362 million, and domestic same-store sales were up 7.1%

"Our strong performance during the first quarter demonstrates the value that our strategic initiatives, including our national advertising campaigns, increased digital and online ordering capabilities, and systematic rollout of delivery across our domestic markets, bring to our restaurants," Chairman and CEO Charlie Morrison said in a company press release. 

Other highlights System-wide domestic same store sales increased 7.1%

• Digital sales increased to 30.2% of domestic system-wide sales.
• Total revenue increased to $48.1 million.
• Net income was $6.6 million, a 7.1% increase compared to $6.2 million in the prior fiscal first quarter.
• Restaurant count increased 10% to 1,273 global locations.

"We are building our business for the long-term, and while we are pleased with the operational and financial performance in the first quarter, we are focused on our vision of becoming a top ten global restaurant brand. In order to achieve this goal, we are preparing our organization for the next level through strategic investments in our people and infrastructure to enhance our digital capabilities and simplify the guest experience," Morrison said. "There is significant white space for Wingstop to attract additional consumers through increased awareness and a broader geographic footprint, and we are confident that our focused execution plan will allow us to capitalize on that opportunity and deliver strong returns to our stockholders."

Financial outlook
Wingstop is updating its outlook for the fiscal year ending Dec, 28 to the following:

• Introducing mid-single digit domestic same store sales growth.
• Increasing selling, general and administrative expenses costs to $52-$55 million from $48-$50 million. Components of SG&A costs include $5.9 - $6.4 million of stock-based compensation expense, $2 million of franchise convention related expense, which is offset by contributions received that are recorded in royalty revenue, franchise fees and other revenue, $7.3 - $7.7 million of expenses related to national advertising, which is offset by advertising contributions recorded in advertising fees and related income.
• Introducing fully diluted earnings per share of approximately $0.72-$0.74 per share, based on 29.8 million shares outstanding.