Operations

Wingstop misses Q3 expectations

November 3, 2021

Although Wingstop Inc. reported Wednesday that systemwide sales were up 16.7% for the fiscal third quarter ending Sept. 25, the chicken wing chain's earnings of $11.3 million missed analyst expectations. Earnings, adjusted for non-recurring gains, were 29 cents per share, falling short of the 35 cents predicted by analysts. The Texas-based chain posted $65.8 million in revenue, also below the $75.3 million forecasted.

CEO Charlie Morrison, however, remained positive about the chain's performance.

"Despite the macro headwinds all of us are facing, Wingstop continues to outperform," he said in a company press release. "Our focus on our long-term strategy continues to fuel industry-leading same-store sales and restaurant development growth for the brand."

While he admitted that chicken prices are still high due to macro inflationary factors including a labor shortage, the company achieved a record quarter for restaurant development opening 49 stores.

"We also continued our strong top-line momentum and grew domestic same-store sales by 3.9%, or 29.3% on a two-year basis, which is on pace for our 18th consecutive year of positive same-store sales growth for the brand," Morrison said. "Our results underscore the strength and resiliency of our brand and the resolve of our brand partners to stay focused on the long-term despite the difficult operating environment."

Highlights for the fiscal third quarter 2021 compared to the fiscal third quarter 2020:

System-wide sales increased 16.7% to $594.3 million.
49 openings.
Domestic same-store sales increased 3.9%.
Domestic restaurant AUV of approximately $1.6 million
Digital sales were 61.6% of sales.
Total revenue increased 2.8% to $65.8 million, which was impacted by a rebate of $6.9 million of advertising surplus that was returned to franchisees in the third quarter to partially offset the impact of record high wing inflation.

Founded in 1994 and headquartered in Dallas, Wingstop has over 1,600 locations.