[Executive Summary](index=1&type=section&id=Executive%20Summary) [Fiscal First Quarter 2024 Highlights](index=1&type=section&id=Fiscal%20First%20Quarter%202024%20Highlights) Wingstop Inc delivered strong Q1 FY2024 performance with significant growth in system-wide sales and total revenue | Metric | Q1 FY2024 | Q1 FY2023 | Change | | :--- | :--- | :--- | :--- | | System-Wide Sales | $1.1 Billion | $822 Million | +36.8% | | New Restaurant Openings | 65 | - | - | | Domestic Same-Store Sales Growth | 21.6% | 20.1% | +1.5 pp | | Domestic Restaurant AUV | $1.9 Million | $1.662 Million | +$0.256 Million | | Digital Sales Mix | 68.3% | - | - | | Total Revenue | $145.8 Million | $108.7 Million | +34.1% | | Net Income | $28.7 Million | $15.669 Million | +83.5% | | Diluted Earnings Per Share | $0.98 | $0.52 | +$0.46 | | Adjusted Net Income | $28.7 Million | $17.771 Million | +61.8% | | Adjusted EBITDA | $50.3 Million | $34.584 Million | +45.3% | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) The CEO highlighted the brand's strong momentum and effective strategy, driven by transaction-led same-store sales growth - Domestic same-store sales grew **21.6%**, driven almost entirely by transaction growth[4](index=4&type=chunk) - Domestic AUV surpassed **$1.9 million**, strengthening brand partner returns and the development pipeline[4](index=4&type=chunk) - The company is confident in its path to becoming a **Top 10 Global Restaurant Brand**[4](index=4&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) [Total Revenue Breakdown](index=2&type=section&id=Total%20Revenue%20Breakdown) Total revenue grew 34.1% to $145.8 million, driven by royalty, franchise fee, and advertising revenue growth | Revenue Source | Q1 FY2024 (in millions) | Q1 FY2023 (in millions) | Change (in millions) | | :--- | :--- | :--- | :--- | | Royalty revenue, franchise fees and other | $67.1 | $48.2 | +$18.9 | | Advertising fees | $50.1 | $37.5 | +$12.7 | | Company-owned restaurant sales | $28.5 | $23.1 | +$5.5 | | **Total Revenue** | **$145.8** | **$108.7** | **+$37.1** | - Royalty revenue, franchise fees and other increased by **$18.9 million**, with $9.4 million from 21.6% domestic same-store sales growth and $7.2 million from new franchise restaurant development[8](index=8&type=chunk) - Advertising fees increased by **$12.7 million**, primarily due to a 36.8% increase in system-wide sales in Q1 FY2024[8](index=8&type=chunk) - Company-owned restaurant sales increased by **$5.5 million**, mainly due to 7 net new restaurants and a 6.2% same-store sales growth[8](index=8&type=chunk) [Cost and Expense Analysis](index=2&type=section&id=Cost%20and%20Expense%20Analysis) Cost of sales and SG&A expenses increased, with higher bone-in chicken wing costs impacting margins | Metric | Q1 FY2024 (in millions) | Q1 FY2023 (in millions) | Change (in millions) | | :--- | :--- | :--- | :--- | | Cost of sales | $21.3 | $16.7 | +$4.6 | | Cost of sales as % of company-owned restaurant sales | 74.5% | 72.4% | +2.1 pp | | Selling, general & administrative | $25.2 | $23.6 | +$1.6 | | Depreciation and amortization | $3.4 | $3.0 | +$0.4 | | **Total Costs and Expenses** | **$103.1** | **$83.0** | **+$20.1** | - Cost of sales as a percentage of company-owned restaurant sales increased from 72.4% to **74.5%**, primarily due to higher bone-in chicken wing costs[9](index=9&type=chunk) - SG&A expenses increased by **$1.5 million**, driven by a $2.1 million increase in personnel-related expenses, a $1.4 million increase in professional service fees, and a $0.5 million increase in performance-based stock compensation[10](index=10&type=chunk) - The increase in SG&A was partially offset by the absence of **$2.8 million** in non-recurring consulting fees from the prior year period[10](index=10&type=chunk) [Profitability Metrics](index=7&type=section&id=Profitability%20Metrics) Wingstop achieved substantial growth in operating income, net income, and diluted earnings per share in Q1 FY2024 | Metric | Q1 FY2024 (in thousands) | Q1 FY2023 (in thousands) | Change (in thousands) | | :--- | :--- | :--- | :--- | | Income from operations | $42,738 | $25,672 | +$17,066 | | Net income | $28,747 | $15,669 | +$13,078 | | Diluted earnings per share | $0.98 | $0.52 | +$0.46 | | Adjusted EBITDA | $50,263 | $34,584 | +$15,679 | | Adjusted net income | $28,747 | $17,771 | +$10,976 | [Operational Performance](index=1&type=section&id=Operational%20Performance) [System-wide Sales and Same Store Sales Growth](index=1&type=section&id=System-wide%20Sales%20and%20Same%20Store%20Sales%20Growth) The company reported strong system-wide sales growth and a significant increase in domestic average unit volume | Metric | Q1 FY2024 | Q1 FY2023 | Change | | :--- | :--- | :--- | :--- | | System-Wide Sales | $1,124 Million | $822 Million | +36.8% | | Domestic AUV | $1,918 Thousand | $1,662 Thousand | +$256 Thousand | | Domestic Same-Store Sales Growth | 21.6% | 20.1% | +1.5 pp | | Company-Owned Domestic Same-Store Sales Growth | 6.2% | 10.3% | -4.1 pp | | Digital Sales Mix | 68.3% | - | - | - Domestic same-store sales growth of **21.6%** was primarily driven by an increase in transactions[4](index=4&type=chunk)[15](index=15&type=chunk) - Domestic AUV reached **$1.918 million**, an increase from $1.662 million in the prior year comparable period[6](index=6&type=chunk) [Restaurant Development and Unit Growth](index=1&type=section&id=Restaurant%20Development%20and%20Unit%20Growth) Wingstop's global restaurant count reached 2,279 with 65 net new openings, showing continued expansion | Metric | March 30, 2024 | April 1, 2023 | Change | | :--- | :--- | :--- | :--- | | Total System-Wide Restaurants | 2,279 | 1,996 | +283 | | Domestic Franchised | 1,924 | 1,710 | +214 | | Domestic Company-Owned | 50 | 43 | +7 | | International Franchised | 305 | 243 | +62 | | **Net New Openings This Quarter** | **65** | **40** | **+25** | - The quarter saw **47 net domestic franchised openings**, 1 net domestic company-owned opening, and 17 net international franchised openings[37](index=37&type=chunk) [Financial Outlook & Capital Allocation](index=2&type=section&id=Financial%20Outlook%20&%20Capital%20Allocation) [2024 Financial Guidance](index=2&type=section&id=2024%20Financial%20Guidance) The company updated its FY2024 guidance, projecting low double-digit domestic same-store sales growth and 275-295 net new units - Domestic same-store sales growth: **Low double-digits**[11](index=11&type=chunk) - Global net new units: **275 to 295**[11](index=11&type=chunk) - SG&A expense: **Approximately $111 million**[11](index=11&type=chunk) - Stock-based compensation expense: **Approximately $20 million**[11](index=11&type=chunk) - Depreciation and amortization: **$18 million to $19 million**[11](index=11&type=chunk) [Quarterly Dividend](index=3&type=section&id=Quarterly%20Dividend) The Board of Directors declared a quarterly dividend of $0.22 per share, reflecting strong cash flow generation | Metric | Amount | | :--- | :--- | | Dividend per common share | $0.22 | | Total dividend payment | Approx $6.5 Million | | Payment date | June 7, 2024 | | Record date | May 17, 2024 | [Company Information & Non-GAAP Measures](index=3&type=section&id=Company%20Information%20&%20Non-GAAP%20Measures) [About Wingstop](index=4&type=section&id=About%20Wingstop) Wingstop Inc, founded in 1994, is a global restaurant operator and franchisor with over 2,250 locations worldwide - Founded in 1994 and based in Dallas, TX, Wingstop operates and franchises **more than 2,250 locations** worldwide[22](index=22&type=chunk) - In fiscal year 2023, system-wide sales grew **27.1% to approximately $3.5 billion**, marking the 20th consecutive year of same-store sales growth[23](index=23&type=chunk) - The company's vision is to become a Top 10 Global Restaurant Brand, with approximately **98% of its restaurants owned and operated by independent franchisees** as of March 30, 2024[23](index=23&type=chunk) [Non-GAAP Financial Measures Explanation](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) The company utilizes non-GAAP measures like Adjusted EBITDA to supplement GAAP financials and enhance investor understanding - **Domestic Average Unit Volume (AUV)**: Represents the average annual sales of all restaurants open for 52 weeks or more, used to assess the economic viability of restaurants[14](index=14&type=chunk) - **Domestic Same-Store Sales**: Reflects the change in year-over-year sales for the comparable restaurant base (open for at least 52 full weeks), used to measure existing restaurant performance[15](index=15&type=chunk) - **System-Wide Sales**: Represents the net sales for all company-owned and franchised restaurants, used to evaluate royalty revenue, store performance, brand health, and market position[16](index=16&type=chunk) - **Adjusted EBITDA**: EBITDA adjusted for loss on debt extinguishment, transaction costs, strategic investment costs, and stock-based compensation expense[17](index=17&type=chunk) - **Adjusted Net Income**: Net income adjusted for loss on debt extinguishment, transaction costs, strategic investment costs, and related tax adjustments[18](index=18&type=chunk) - **Adjusted Diluted Earnings Per Share**: Adjusted Net Income divided by weighted average diluted shares outstanding[19](index=19&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $412.3 million as of March 30, 2024, with total liabilities at $846.6 million | Item | March 30, 2024 (in thousands) | Dec 30, 2023 (in thousands) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $108,305 | $90,216 | | Restricted cash | $11,444 | $11,444 | | Advertising fund assets, restricted | $33,710 | $25,328 | | Total current assets | $170,876 | $144,344 | | Property and equipment, net | $99,345 | $91,292 | | Goodwill | $67,708 | $67,708 | | **Total Assets** | **$412,251** | **$377,825** | | **Liabilities and Stockholders' Deficit** | | | | Total current liabilities | $78,829 | $71,004 | | Long-term debt, net | $712,790 | $712,327 | | **Total Liabilities** | **$846,630** | **$835,191** | | **Total Stockholders' Deficit** | **($434,379)** | **($457,366)** | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 FY2024 saw significant growth in total revenue and net income, reflecting strong operational profitability | Item | March 30, 2024 (in thousands) | April 1, 2023 (in thousands) | | :--- | :--- | :--- | | Total revenues | $145,789 | $108,721 | | Cost of sales | $21,271 | $16,695 | | Advertising expenses | $53,192 | $39,643 | | Selling, general and administrative | $25,178 | $23,645 | | Income from operations | $42,738 | $25,672 | | Net income | $28,747 | $15,669 | | Diluted earnings per share | $0.98 | $0.52 | | Dividends per share | $0.22 | $0.19 | [Supplemental Information - Cost of Sales Margin Analysis](index=8&type=section&id=Supplemental%20Information%20-%20Cost%20of%20Sales%20Margin%20Analysis) The cost of sales as a percentage of company-owned restaurant sales rose to 74.5%, driven by higher food costs | Cost of Sales Component | March 30, 2024 (in thousands) | % of Company-Owned Restaurant Sales | April 1, 2023 (in thousands) | % of Company-Owned Restaurant Sales | | :--- | :--- | :--- | :--- | :--- | | Food, beverage and packaging costs | $9,903 | 34.7% | $7,486 | 32.4% | | Labor costs | $6,675 | 23.4% | $5,517 | 23.9% | | Other restaurant operating expenses | $5,410 | 19.0% | $4,226 | 18.3% | | Vendor rebates | ($717) | (2.5)% | ($534) | (2.3)% | | **Total cost of sales** | **$21,271** | **74.5%** | **$16,695** | **72.4%** | - Food, beverage, and packaging costs as a percentage of sales increased from 32.4% to **34.7%**, primarily due to higher bone-in chicken wing costs[9](index=9&type=chunk)[35](index=35&type=chunk) [Supplemental Information - Restaurant Count](index=9&type=section&id=Supplemental%20Information%20-%20Restaurant%20Count) The global restaurant count reached 2,279 by the end of Q1 2024, with a net increase of 65 units during the quarter | Restaurant Type | March 30, 2024 | April 1, 2023 | | :--- | :--- | :--- | | Domestic franchised, end of period | 1,924 | 1,710 | | Domestic company-owned, end of period | 50 | 43 | | International franchised, end of period | 305 | 243 | | **Total system-wide restaurants, end of period** | **2,279** | **1,996** | | **System-wide net openings during the period** | **65** | **40** | [Non-GAAP Reconciliations](index=10&type=section&id=Non-GAAP%20Reconciliations) [EBITDA and Adjusted EBITDA](index=10&type=section&id=EBITDA%20and%20Adjusted%20EBITDA) Adjusted EBITDA grew significantly to $50.3 million in Q1 FY2024, benefiting from higher net income | Item | March 30, 2024 (in thousands) | April 1, 2023 (in thousands) | | :--- | :--- | :--- | | Net income | $28,747 | $15,669 | | Interest expense, net | $4,544 | $4,573 | | Income tax expense | $9,750 | $5,242 | | Depreciation and amortization | $3,410 | $2,989 | | **EBITDA** | **$46,451** | **$28,473** | | Consulting fees adjustment | — | $2,766 | | Stock-based compensation expense adjustment | $3,812 | $3,345 | | **Adjusted EBITDA** | **$50,263** | **$34,584** | - Adjusted EBITDA increased **45.3% to $50.3 million**, benefiting from the absence of $2.8 million in non-recurring consulting fees from the prior year period[5](index=5&type=chunk)[39](index=39&type=chunk) [Adjusted Net Income and Adjusted EPS](index=11&type=section&id=Adjusted%20Net%20Income%20and%20Adjusted%20EPS) Adjusted net income and adjusted diluted EPS saw substantial increases, aligning with GAAP results for the quarter | Item | March 30, 2024 (in thousands) | April 1, 2023 (in thousands) | | :--- | :--- | :--- | | Net income | $28,747 | $15,669 | | Consulting fees adjustment | — | $2,766 | | Tax effect of adjustments | — | ($664) | | **Adjusted net income** | **$28,747** | **$17,771** | | Diluted weighted average shares | 29,478 | 30,031 | | **Adjusted diluted earnings per share** | **$0.98** | **$0.59** | - Adjusted net income increased **61.8% to $28.7 million**, and adjusted diluted EPS was **$0.98** compared to $0.59 in the prior year period[5](index=5&type=chunk)[41](index=41&type=chunk) [Additional Information](index=4&type=section&id=Additional%20Information) [Conference Call and Webcast Details](index=4&type=section&id=Conference%20Call%20and%20Webcast%20Details) The company held a conference call on May 1, 2024, to discuss Q1 FY2024 financial results - The conference call was held on **May 1, 2024, at 10:00 AM Eastern Time**[20](index=20&type=chunk) - A replay of the call is available by telephone or via the company's investor relations website[20](index=20&type=chunk)[21](index=21&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements regarding future operations and performance, which are subject to risks - Forward-looking statements include the outlook for FY2024 domestic same-store sales growth, global net new units, SG&A, stock-based compensation, and depreciation and amortization[27](index=27&type=chunk) - These statements are subject to risks, uncertainties, and other factors that could cause **actual results to differ materially** from those projected[27](index=27&type=chunk) - The company undertakes **no obligation to update or revise** any forward-looking statements, except as required by law[28](index=28&type=chunk) [Contacts](index=5&type=section&id=Contacts) Media and investor contact information is provided for inquiries - Media Contact: Maddie Lupori (Media@wingstop.com)[29](index=29&type=chunk) - Investor Contact: Kristen Thomas (IR@wingstop.com)[29](index=29&type=chunk)

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the trad ...

In its upcoming report, Wingstop (WING) is predicted by Wall Street analysts to post quarterly earnings of $0.74 per share, reflecting an increase of 25.4% compared to the same period last year. Revenues are forecasted to be $135.12 million, representing a year-over-year increase of 24.3%.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 1.3% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during ...

Wingstop recognizes that fans love to celebrate this special day with Wingstop's flavors in hand. The cooked-to-order Wingstop Hot Box will spark up fans' taste buds with their choice of the iconic chicken sandwich, 8-piece classic or boneless wings or 3-piece tenders. The craveable Wingstop Hot Box comes hand sauced-and-tossed in the new strain of T.H.C. (The Hot Chili) Rub*, combining the fiery zest of chili peppers with a secret blend of herbs and spices, paired with a side of Wingstop's iconic ranch, se ...

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the trad ...

Wingstop (WING) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Since a changin ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Wingstop (WING) , which belongs to the Zacks Retail - Restaurants industry.This restaurant chain has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 22.49%.For the most recent quarter, Wingstop was expected to post earnings of $0.57 pe ...

DALLAS, April 2, 2024 /PRNewswire/ -- Wingstop Inc. (NASDAQ: WING) today announced that it will host a conference call and webcast to discuss its fiscal first quarter 2024 financial results on Wednesday, May 1, 2024 at 10:00 a.m. ET. A press release with fiscal first quarter 2024 financial results will be issued before the market opens that morning. The conference call can be joined telephonically by dialing 1-877-259-5243 or 1-412-317-5176 (international) and asking for the Wingstop conference call. A repl ...

The latest trading session saw Wingstop (WING) ending at $367.80, denoting a +0.38% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a loss of 0.2% for the day. At the same time, the Dow lost 0.6%, and the tech-heavy Nasdaq gained 0.11%.The restaurant chain's stock has climbed by 0.03% in the past month, falling short of the Retail-Wholesale sector's gain of 2.13% and the S&P 500's gain of 3.32%.Market participants will be closely following the financial results of Wing ...

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