Operations

Wingstop CEO positive about future despite Q4 loss

Provided

February 17, 2021

Although Wingstop Inc. missed Wall Street expectations Wednesday when it reported a fourth-quarter loss of $6.4 million or 21 cents per share, CEO Charlie Morrison remained confident in the brand's future. He told investors that 2020 proved the resiliency of Wingstop's model and that Q4, which ended Dec. 26, 2020, was its 17th consecutive year of positive same-store sales growth. Earnings, adjusted for one-time gains and costs, were 18 cents per share.

"The domestic same-store sales growth of 21.4% drove our domestic average unit volumes to almost $1.5 million, advancing our best-in-class unit economics," he said in a company press release. "We opened 153 net new restaurants in 2020, and as we enter into 2021, our pipeline of domestic restaurant commitments exceeds 700, up from 610 in the prior year.

Highlights for the fiscal fourth quarter 2020 compared to the fiscal fourth quarter 2019 included:

• System-wide sales increased 26.5% to $502.5 million.
• 59 openings.
• Domestic same-store sales increased 18.2%.
• Domestic restaurant AUV increased to approximately $1.49 million, compared to $1.25 million in the prior fiscal fourth quarter.
• Digital sales increased to 62.5% of sales, compared to 38.2% in the prior fiscal fourth quarter.
• Total revenue increased 19% to $63.3 million.

Highlights for the fiscal year 2020 compared to the fiscal year 2019:

• System-wide restaurant count increased 11% to 1,538 worldwide locations with 153 net openings.
• System-wide sales increased 28.8% to $2 billion.
• Domestic same-store sales increased 21.4%, marking the 17th consecutive year of same-store sales growth.
• Total revenue increased 24.6% to $248.8 million.
• Net income increased to $23.3 million, or 78 cents per diluted share, compared to $20.5 million, or 69 cents per diluted share, in the prior fiscal year.

The company, which has more than 1,500 units, is reaffirming its three- to five-year outlook and expects at least a 10% increase in system-wide annual unit growth as well as mid-single digit domestic same-store sales growth, according to the release.