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Wingstop sees Q1 same-store sales boost despite COVID-related shift

April 7, 2020

Wingstop Inc. released preliminary fiscal first-quarter results showing a boost in same-store business following the switch to takeout and delivery due to the COVID-19 outbreak. 

The Dallas-based restaurant chain said domestic same-store sales during the quarter rose 9.9% and 6.2% at company-owned stores, despite being forced to suspend dining room service starting March 16 due to the outbreak.

The company said that while overall transactions declined slightly due to the dining room suspension, the average ticket price increased as customer orders for entire families raised over sales. Prior to the dining room shutdown, carryout and delivery service represented 80% of the overall business.

Wingstop said overall sales rose 18.6% during the quarter to $429.9 million and digital orders represented 47% of overall sales. As a precautionary measure, the company borrowed $16 million under its varying funding notes to leave a balance of $31 million in cash. 

CEO Charlie Morrison and CFO Michael Skipworth will host a first-quarter conference call on May 6 to discuss results. 

The company launched a free delivery option for web and mobile orders and is continuing that promotion until April 30.

The company is also paying employees more. It recently launched an incentive program to add $150 per week to full-time workers during the outbreak.

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