News

Wingstop reports increases across the board

August 3, 2018

Wingstop Inc. announced today that system-wide sales increased 13.5 percent to $304.9 million and those total revenues were up 17 percent during Q2 for the period ended June 30, 2018.
 
"Wingstop completed another strong quarter of growth on both the top and bottom lines as we continue positioning ourselves to become a top 10 global restaurant brand,” Chairman and CEO Charlie Morrison said in a company press release. "We are effectively executing against our four growth strategies - building greater awareness through national advertising, innovating through technology to enhance the guest experience, optimizing delivery in test markets ahead of a national roll out in 2019, and expanding our international presence."

Q2 highlights:

• System-wide sales increased 13.5 percent to $304.9 million.
• System-wide restaurant count increased 12.5 percent to 1,188 global locations.
• System-wide domestic same-store sales increased 4.3 percent.
• Total revenue increased 17.3 percent to $37 million.
• Net income increased 39.4 percent to $6.8 million, or $0.23 per diluted share, compared to $4.9 million, or $0.17 per diluted share.

Morrison continued, “We believe that raising our quarterly dividend demonstrates the strength of our overall business, our commitment to shareholder value and our confidence in future performance.”

Financial outlook
The company is confirming its long-term guidance of low single-digit domestic same-store sales growth and 10 percent-plus system-wide unit growth. For the fiscal year ending Dec. 29, 2018, the company is reiterating previous guidance, which is consistent with its long-term targets, with the exception of updating certain items impacting fully diluted adjusted earnings per share:

• Depreciation and amortization of approximately $4.5 million, reflecting the impact of amortization of reacquired franchise rights associated with restaurant acquisitions.
• An on-going effective tax rate of approximately 25 percent (previously 23 percent), excluding the impact of excess tax benefits from stock option exercises.
• Stock-based compensation expense of approximately $3.7 million (previously $3 million).

Additionally, the company expects unit development growth to be between 12-12.5 percent.

"We believe that raising our quarterly dividend demonstrates the strength of our overall business, our commitment to shareholder value and our confidence in future performance," Morrison said.