Wingstop (WING) reported $127.06 million in revenue for the quarter ended December 2023, representing a year-over-year increase of 21.2%. EPS of $0.64 for the same period compares to $0.60 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $119.77 million, representing a surprise of +6.08%. The company delivered an EPS surprise of +12.28%, with the consensus EPS estimate being $0.57.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- a ...

13.0% Increase in Unit Count in 2023 18.3% Domestic Same Store Sales Growth in 2023, Driven Primarily by an Increase in Transactions DALLAS, Feb. 21, 2024 /PRNewswire/ -- Wingstop Inc. (NASDAQ: WING) today announced financial results for the fiscal fourth quarter and fiscal year ended December 30, 2023. The fiscal fourth quarter and fiscal year ended December 31, 2022 benefited from a 53rd week as compared to fiscal 2023. Unless otherwise noted, all amounts presented for the prior fiscal periods are on a 14 ...

FOR IMMEDIATE RELEASE Wingstop Inc. Reports Fiscal Fourth Quarter and Full Year 2023 Financial Results 13.0% Increase in Unit Count in 2023 Adjusted EBITDA, adjusted net income, and adjusted earnings per diluted share are non-GAAP measures. Reconciliations of adjusted EBITDA, adjusted net income, and adjusted earnings per diluted share to the most 1 ▪ System-wide sales increased 24.5% to $965.9 million ▪ 115 net new openings in the fiscal fourth quarter 2023 ▪ Domestic same store sales increased 21.2%** ▪ D ...

PART I [Business](index=5&type=section&id=Item%201.%20Business) Wingstop is the largest fast-casual chicken wing chain, operating a highly-franchised model with over 2,200 global locations, aiming to be a Top 10 Global Restaurant Brand - Wingstop is the largest fast-casual chicken wing chain with over **2,200 locations worldwide**, operating a primarily franchised model where approximately **98% of restaurants** are independently owned[21](index=21&type=chunk)[22](index=22&type=chunk) - The company's vision is to become a Top 10 Global Restaurant Brand, with a long-term goal of expanding to over **4,000 restaurants in the U.S.** and over **3,000 internationally**[25](index=25&type=chunk) Key Restaurant Operating Metrics (FY 2023) | Metric | Value | | :--- | :--- | | Domestic Average Unit Volume (AUV) | ~$1.8 million | | Average Initial Investment (Franchisee) | ~$480,000 | | Target Year 2 Unlevered Cash-on-Cash Return | ~70%+ | | Digital Sales Percentage | >60% | - Franchisees are required to pay a **6% royalty** on gross sales and contribute **5% of gross sales** to the national advertising fund, increasing to **5.3% in Q2 2024**[40](index=40&type=chunk) - Chicken is the largest product cost, representing approximately **53.3% of all purchases** for FY2023, with all U.S. food and packaging supplied through a single distributor[43](index=43&type=chunk)[44](index=44&type=chunk) [Risk Factors](index=11&type=section&id=Item%201A.%20Risk%20Factors) Key risks include franchisee dependency, intense competition, volatile food costs, food safety, cybersecurity threats, reliance on a single distributor, and legal complexities - The company's growth strategy relies substantially on new restaurant development by franchisees, dependent on their ability to access financing[65](index=65&type=chunk)[66](index=66&type=chunk) - Profitability is highly susceptible to volatility in food costs, especially for bone-in chicken wings, which lack established fixed-price markets[82](index=82&type=chunk) - Significant cybersecurity risks exist due to reliance on technology and personal information collection, potentially leading to data loss, operational disruption, and reputational damage[85](index=85&type=chunk)[86](index=86&type=chunk) - Digital sales accounted for **67.0% of domestic sales in Q4 2023**, creating significant dependence on the reliability of digital commerce platforms and third-party delivery apps[95](index=95&type=chunk) - A significant geographic concentration exists, with **56% of domestic restaurants** in Texas (**23%**), California (**20%**), Florida (**7%**), and Illinois (**6%**), exposing the company to regional risks[112](index=112&type=chunk) - Restrictive covenants in the company's securitized debt facility, such as a debt service coverage ratio, could trigger a default or rapid amortization event if breached[132](index=132&type=chunk)[133](index=133&type=chunk) [Unresolved Staff Comments](index=26&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company has no unresolved staff comments from the Securities and Exchange Commission - None[144](index=144&type=chunk) [Cybersecurity](index=26&type=section&id=Item%201C.%20Cybersecurity) Wingstop's cybersecurity program follows the NIST framework, overseen by the Board's Technology Committee, with no material incidents reported - The company's cybersecurity program is guided by the National Institute of Standards and Technology (NIST) Cyber Security Framework, including security policies, risk assessments, and a third-party risk management program[145](index=145&type=chunk)[148](index=148&type=chunk) - Oversight is provided by the Technology Committee of the Board, consisting of **five independent directors**, in conjunction with the Audit Committee[151](index=151&type=chunk) - As of the report date, the company is unaware of any cybersecurity incidents materially affecting its business, operations, or financial condition[150](index=150&type=chunk) [Properties](index=28&type=section&id=Item%202.%20Properties) Wingstop owns its 78,000 sq ft headquarters; all 2,214 system restaurants operate in leased facilities averaging 1,700 sq ft - The company owns its **78,000 square foot** corporate headquarters and global support center in Addison, Texas[154](index=154&type=chunk) - All company-owned restaurants are in leased properties, typically under **five- to ten-year leases**, with an average size of approximately **1,700 square feet**[155](index=155&type=chunk)[156](index=156&type=chunk) [Legal Proceedings](index=28&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in ordinary course legal actions, none of which are expected to materially affect its financials - The company is involved in various claims and legal actions in the ordinary course of business, but none are expected to have a material adverse effect on its financials[157](index=157&type=chunk) [Mine Safety Disclosures](index=28&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[158](index=158&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=29&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Wingstop's common stock trades on NASDAQ, declared a **$0.22 per share dividend**, and repurchased **$125.0 million** under a **$250.0 million** program - On February 20, 2024, the company's board declared a quarterly dividend of **$0.22 per share**[162](index=162&type=chunk) - In August 2023, the Board approved a **$250.0 million** share repurchase program, with **$125.0 million** remaining available as of December 30, 2023[165](index=165&type=chunk) - The company executed a **$125.0 million** Accelerated Share Repurchase (ASR) agreement, concluding on December 21, 2023, repurchasing and retiring **645,952 shares** at an average price of **$193.51**[166](index=166&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) FY2023 saw **27.1% system-wide sales growth** to **$3.5 billion**, **28.7% revenue increase** to **$460.1 million**, and **32.5% net income growth** to **$70.2 million**, driven by unit expansion and same-store sales Fiscal Year 2023 Performance Highlights (vs. FY 2022) | Metric | FY 2023 | FY 2022 | % Change | | :--- | :--- | :--- | :--- | | System-wide Sales | $3.5 billion | $2.7 billion | +27.1% | | Total Revenue | $460.1 million | $357.5 million | +28.7% | | Net Income | $70.2 million | $52.9 million | +32.5% | | Adjusted EBITDA | $146.5 million | $107.6 million | +36.1% | | Domestic Same Store Sales | 18.3% | 3.4% | +14.9 p.p. | | System-wide Restaurants | 2,214 | 1,959 | +13.0% | - Total revenue increased by **$102.5 million (28.7%)**, primarily due to a **$48.5 million** increase in royalty and franchise fees and a **$38.1 million** increase in advertising fees, reflecting strong sales growth and unit expansion[190](index=190&type=chunk)[191](index=191&type=chunk)[192](index=192&type=chunk) - Cost of sales for company-owned restaurants decreased as a percentage of sales to **73.7%** from **79.3%** in the prior year, mainly due to a **27.1% decrease** in bone-in chicken wing costs[193](index=193&type=chunk) - Selling, general and administrative (SG&A) expenses increased by **$29.8 million (44.5%)** to **$96.9 million**, driven by higher incentive compensation, consulting fees, and increased headcount[197](index=197&type=chunk) Cash Flow Summary (in thousands) | Activity | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Net cash from Operating activities | $121,601 | $76,238 | | Net cash used in Investing activities | ($52,153) | ($28,683) | | Net cash (used in) from Financing activities | ($155,487) | $103,254 | [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces commodity price risk from volatile bone-in chicken wing costs, with interest rate risk mitigated by fixed-rate debt - The company is exposed to commodity price risk, especially for bone-in chicken wings, which lack established fixed-price markets and accounted for **16.8% of company-owned restaurant cost of sales in FY2023**[221](index=221&type=chunk) - A hypothetical **10% increase** in bone-in chicken wing costs in FY2023 would have increased company-owned restaurant cost of sales by approximately **$1.2 million**[221](index=221&type=chunk) - The company's long-term debt is predominantly fixed-rate, reducing exposure to interest rate increases, with no outstanding borrowings on the 2022 Variable Funding Notes as of December 30, 2023[222](index=222&type=chunk) [Financial Statements and Supplementary Data](index=41&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section directs readers to the consolidated financial statements and supplementary data starting on page F-1 - This item directs the reader to the company's financial statements, which begin on page F-1 of the filing[223](index=223&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=43&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants regarding financial disclosure - None[224](index=224&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls and internal control over financial reporting were effective, affirmed by an unqualified auditor opinion - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 30, 2023[226](index=226&type=chunk) - Management's assessment, based on the COSO framework, concluded that the company's internal control over financial reporting was effective as of December 30, 2023[229](index=229&type=chunk) - The independent auditor, KPMG LLP, issued an unqualified opinion on the effectiveness of the company's internal control over financial reporting[230](index=230&type=chunk)[232](index=232&type=chunk) [Other Information](index=45&type=section&id=Item%209B.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during Q4 2023 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the fourth quarter ended December 30, 2023[239](index=239&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=46&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2024 Proxy Statement - Information for this item is incorporated by reference from the 2024 Annual Meeting of Stockholders Proxy Statement[243](index=243&type=chunk) [Executive Compensation](index=46&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation information is incorporated by reference from the 2024 Annual Meeting of Stockholders Proxy Statement - Information for this item is incorporated by reference from the 2024 Annual Meeting of Stockholders Proxy Statement[244](index=244&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=46&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership information is incorporated by reference from the 2024 Annual Meeting of Stockholders Proxy Statement - Information for this item is incorporated by reference from the 2024 Annual Meeting of Stockholders Proxy Statement[245](index=245&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=46&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Related party transactions and director independence information is incorporated by reference from the 2024 Proxy Statement - Information for this item is incorporated by reference from the 2024 Annual Meeting of Stockholders Proxy Statement[246](index=246&type=chunk) [Principal Accountant Fees and Services](index=46&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Principal accountant fees and services information is incorporated by reference from the 2024 Proxy Statement - Information for this item is incorporated by reference from the 2024 Annual Meeting of Stockholders Proxy Statement[247](index=247&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=47&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section references the Index to Financial Statements on page F-1 and lists all filed or incorporated exhibits - This item refers to the Index to Financial Statements on page F-1 and lists all exhibits filed with the report[250](index=250&type=chunk)[251](index=251&type=chunk) [Form 10-K Summary](index=49&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company indicates that no Form 10-K summary is provided - None[255](index=255&type=chunk)

Analysts on Wall Street project that Wingstop (WING) will announce quarterly earnings of $0.57 per share in its forthcoming report, representing a decline of 5% year over year. Revenues are projected to reach $119.52 million, increasing 14% from the same quarter last year.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.9% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Prior ...

Wall Street expects a year-over-year decline in earnings on higher revenues when Wingstop (WING) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 21. O ...

Wingstop (WING) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term. Shares of this restaurant chain have returned +10.4% over the past month versus the Zacks S&P 500 composite's +3.7% change. The Zacks Retail - Restaurants industry, to which Wingstop belongs, has gained 2.5% over this period. Now the key question is: Where could the stock be headed in the near term? Although media reports ...

In the latest market close, Wingstop (WING) reached $293.25, with a -0.76% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.1%. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 0.3%.Heading into today, shares of the restaurant chain had gained 13.1% over the past month, outpacing the Retail-Wholesale sector's gain of 6.89% and the S&P 500's gain of 5.78% in that time.Investors will be eagerly watching for the performance of Wingstop in ...

Unlike the sticky honey consistency that's expected, Wingstop's Hot Honey is a craveable dry rub, delivering sweet flavors with a bold kick of cayenne pepper and ancho chili. The flavor can be hand sauced-and-tossed on cooked to order chicken sandwiches, classic wings, boneless wings or tenders. "Our fans have spoken and we listened. Their passion for Wingstop's Hot Honey Rub is undeniable," said President & CEO, Michael Skipworth. "To show our love to our fans this Valentine's Day, we're bringing Hot Honey ...

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities 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, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score ...