Operations

Wingstop flying high despite pandemic

July 29, 2020

Wingstop Inc. shares rose more than 15% Wednesday after the chain beat earnings and revenue forecasts for the fiscal second-quarter.

The company reported fiscal second-quarter earnings of $11.5 million, or 39 cents a share in the quarter, beating consensus estimates of 30 cents. Earnings compared with 4.9 million, or17 cents a share in the year-ago quarter.

System-wide sales increased 37%, and total revenue hit $66.1 million — up from $48.6 million in the fiscal second quarter last year. Digital sales increased to 63.7% of domestic system-wide sales, according to a company press release.

"We benefited from a steadfast focus on expanding our digital business and leveraging delivery to make it seamless for fans to access the craveable flavors of our fresh, cook-to-order wings, fries and sides," CEO and Chairman Charlie Morrison said in a company press release.. "Despite the unprecedented circumstances, we opened 23 net new restaurants which highlights the excitement of our brand partners to grow with Wingstop and the strength of the unit-level economics. We believe we are well-positioned to continue making progress towards our vision of becoming a top 10 global restaurant brand."

Highlights for the fiscal second quarter 2020 compared to the fiscal second quarter 2019:

• System-wide sales increased 37% to $509 million.
• 23 openings in the fiscal second quarter 2020.
• Domestic same store sales increased 31.9%.
• Total revenue increased 36.1% to $66.1 million.