In the latest market close, Wingstop (WING) reached $243.20, with a -0.6% movement compared to the previous day. The stock fell short of the S&P 500, which registered a loss of 0.34% for the day. On the other hand, the Dow registered a gain of 0.03%, and the technology-centric Nasdaq decreased by 0.56%.The the stock of restaurant chain has fallen by 0.97% in the past month, lagging the Retail-Wholesale sector's gain of 3.02% and the S&P 500's gain of 2.56%.Analysts and investors alike will be keeping a clos ...

DALLAS, Jan. 4, 2024 /PRNewswire/ -- As millions of Americans embrace the Dry January trend, Wingstop (NASDAQ: WING) boldly declares that flavor cannot take a backseat. With many resolutions for 2024 being about adding something to your life, Wingstop introduces Dry Rub January – challenging fans to indulge in Wingstop's signature dry rubs on cooked-to-order wings, chicken tenders and chicken sandwiches all month long, for a flavor experience to enhance the New Year. Wingstop introduces Dry Rub January, ...

Wingstop Inc. (NASDAQ:WING) Q3 2023 Earnings Conference Call November 1, 2023 10:00 AM ET Company Participants Alex Kaleida - Senior Vice President & Chief Financial Officer Michael Skipworth - President & Chief Executive Officer Conference Call Participants Pratik Patel - Barclays David Tarantino - Baird Sara Senatore - Bank of America Andy Barish - Jefferies Joshua Long - Stephens Brian Harbour - Morgan Stanley Andrew Charles - TD Cowen Karen Holthouse - Citi Daniel Gold - BMO Michael Tamas - Oppenheimer ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File No. 001-37425 WINGSTOP INC. 15505 Wright Brothers Drive Addison, Texas 75001 (Address of principal executive offices) (Zip Cod ...

Company Participants Conference Call Participants Andrew Barish - Jefferies Michael Skipworth - President, CEO & Director Jeffrey Bernstein - Barclays Bank Christopher Carril - RBC Capital Markets Michael Tamas - Oppenheimer Andrew Charles - TD Cowen Operator Thank you, and welcome to the Fiscal Second Quarter 2023 Earnings Conference Call for Wingstop. Our results were published earlier this morning and are available on our Investor Relations website at ir.wingstop.com. Our discussion today includes forwar ...

We have seen growth in all channels, but expansion in our delivery channels showcases the opportunity we believe we have to continue to scale this channel long-term and drive further AUV growth. As we continue to lean into innovation and pursue our aspirational goal of digitizing every transaction, we are excited about early results from a test we just completed around AI-enabled phone orders. We are expanding this test to where we convert phone orders would still represent about 10% of our sales today into ...

Financial Data and Key Metrics Changes - In Q4 2022, company-owned restaurant sales increased by $5.3 million due to a 2.6% increase in same-store sales, primarily driven by transaction growth [5] - The cost of sales as a percentage of company-owned restaurant sales decreased by 900 basis points in Q4 compared to the prior year, driven by lower food costs, particularly a 49% decrease in the cost of bone-in chicken wings [5] - The company ended Q4 with $526.8 million in net debt, with a net debt to trailing 12-month adjusted EBITDA ratio of 4.8x, which is 1.5x lower than at the end of the first quarter [6] Business Line Data and Key Metrics Changes - The company opened 228 net new units globally in 2022, representing a 13.2% growth rate, achieving record years for both domestic and international businesses [111] - The average unit volume (AUV) is above $1.6 million, with food costs in the low 30% range [112] - The company anticipates maintaining an increased pace of development with approximately 240 net new units in 2023, translating to over 12% unit growth compared to the prior year [7] Market Data and Key Metrics Changes - The company reported a favorable commodity outlook for 2023, with full-year cost of sales expected to be approximately 75%, improving by over 300 basis points year-over-year [129] - The digital sales generated nearly $1.7 billion in 2022, showcasing the strength of the company's digital platform [116] - The company is seeing strong growth in delivery, with the potential to double the size of its delivery business [116] Company Strategy and Development Direction - The company aims to achieve a target of $2 million-plus AUVs, leveraging brand awareness, menu innovation, and expanding the delivery channel [122] - The launch of the chicken sandwich in 2022 is seen as a significant growth opportunity, targeting over 160 million chicken sandwich consumers [115] - The company is focused on building brand awareness through increased advertising, with a 40% growth in the national advertising fund in 2022 [114] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating 2023 despite macroeconomic uncertainties, supported by a proven strategy that has delivered 19 consecutive years of same-store sales growth [113] - The sentiment among brand partners is positive, with strong unit economics and excitement for continued growth [11] - The company is proactive in addressing supply chain challenges and has made significant investments to mitigate volatility in food costs [14] Other Important Information - The company has launched a capability for guests to donate to Wingstop Charities through rounding up their checks, which is expected to triple the grants provided to date [127] - The company is expanding into new international markets, with early successes in Canada and Korea [117] Q&A Session Summary Question: How has the year started and what is the outlook for comps? - Management indicated that the company is well-positioned with strong transaction growth and confidence in achieving mid-single-digit same-store sales growth for 2023 [2][23] Question: Will franchisees take any price increases this year? - Management expects to return to a disciplined pricing approach, with a historical pattern of 1 to 2 points of price increases [29] Question: What is the impact of the chicken sandwich on customer frequency? - The chicken sandwich has proven to be highly incremental, driving frequency and attracting new guests [60][62] Question: How is the company addressing supply chain challenges? - Management is actively engaging with potential partners to minimize volatility in food costs and has made proactive investments in supply chain strategies [96] Question: What are the expectations for delivery sales and boneless sales mix? - The company is seeing delivery sales grow and anticipates the boneless mix to reach all-time highs, approaching 40% [87][88]

Part I [Business](index=5&type=section&id=Item%201.%20Business) Wingstop is a highly franchised fast-casual chicken wing chain with over 1,950 global locations, aiming to be a Top 10 Global Restaurant Brand through growth and digital sales - Wingstop is the world's largest fast-casual chicken wings-focused restaurant chain, with **over 1,950 locations worldwide** as of year-end 2022[21](index=21&type=chunk) - The company operates on an asset-light, highly-franchised business model, with approximately **98% of its restaurants** owned and operated by independent franchisees[22](index=22&type=chunk) - Wingstop's vision is to become a **Top 10 Global Restaurant Brand**, targeting over **4,000 domestic and 3,000 international restaurants**[25](index=25&type=chunk) - Digital sales account for **over 60% of total sales**, supported by CRM and a proprietary digital platform[27](index=27&type=chunk) Domestic Restaurant Unit Economics (FY 2022) | Metric | Value (USD) | | :--- | :--- | | Average Unit Volume (AUV) | ~$1.6 million | | Average Estimated Initial Investment | ~$440,000 (excluding real estate) | | Target Year 2 Unlevered Cash-on-Cash Return | ~50%+ | - As of December 31, 2022, Wingstop had **238 international franchised restaurants** across eight countries[33](index=33&type=chunk) [Risk Factors](index=11&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including franchisee reliance, growth execution, food safety, supply chain disruptions, chicken wing price volatility, competition, and cybersecurity - Growth strategy is substantially dependent on new restaurant development by franchisees and their ability to secure financing, as Wingstop does not provide direct financing[63](index=63&type=chunk)[64](index=64&type=chunk) - A substantial portion of revenue comes from royalties from franchised restaurants (**98% of the system**), making performance reliant on franchisee operational success and financial stability[66](index=66&type=chunk) - The company is susceptible to volatility in food costs, especially for bone-in chicken wings, which have no established fixed-price markets, experiencing substantial inflation in 2021 and significant deflation in 2022[75](index=75&type=chunk) - All domestic restaurants are sourced through a single distributor, Performance Food Group (PFG), creating a dependency risk for the entire supply chain[83](index=83&type=chunk)[44](index=44&type=chunk) - Significant geographic concentration exists, with **57% of domestic restaurants** located in Texas, California, Illinois, and Florida, making the business susceptible to regional economic and environmental events[108](index=108&type=chunk) - The company faces cybersecurity risks due to reliance on technology for digital sales, payment processing, and data storage, where a breach could lead to data loss, operational disruption, and reputational damage[86](index=86&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk) - The terms of the company's securitized debt include restrictive covenants, such as maintaining a specified debt service coverage ratio, where a breach could result in a rapid amortization event or default[128](index=128&type=chunk)[129](index=129&type=chunk) [Unresolved Staff Comments](index=25&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - There are no unresolved staff comments[141](index=141&type=chunk) [Properties](index=26&type=section&id=Item%202.%20Properties) Wingstop owns its 78,000 sq ft corporate headquarters in Addison, Texas, with company-owned restaurants in leased 1,700 sq ft facilities - The company owns its corporate headquarters and global support center, a **78,000 square foot office building** in Addison, Texas[142](index=142&type=chunk) - All company-owned restaurants are located in leased facilities, with a typical restaurant occupying approximately **1,700 square feet**[143](index=143&type=chunk)[144](index=144&type=chunk) [Legal Proceedings](index=26&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various ordinary course legal actions, none expected to materially affect its business or financial condition - The company is not party to any pending legal proceedings expected to have a material adverse effect on its business, financial condition, or results of operations[145](index=145&type=chunk) [Mine Safety Disclosures](index=26&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[146](index=146&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=27&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 under 'WING', with no Q4 2022 equity repurchases and a $0.19 per share quarterly dividend declared in February 2023 - The company's common stock trades on the NASDAQ Global Select Market under the symbol **'WING'**[149](index=149&type=chunk) - No equity securities were repurchased during the fourth quarter of the fiscal year ended December 31, 2022[151](index=151&type=chunk) - On February 21, 2023, the board of directors declared a quarterly dividend of **$0.19 per share** of common stock, payable on March 31, 2023[154](index=154&type=chunk) [Reserved](index=29&type=section&id=Item%206.%20Reserved) This section is intentionally left blank [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In FY2022, Wingstop achieved significant growth with **$2.7 billion** system-wide sales and **$357.5 million** total revenue, driven by new openings, same-store sales, and lower chicken wing costs Fiscal Year 2022 Performance Highlights | Metric | FY 2022 (USD) | Change vs. FY 2021 (%) | | :--- | :--- | :--- | | System-wide Sales | $2.7 billion | +16.8% | | Total Revenue | $357.5 million | +26.6% | | Net Income | $52.9 million | +24.1% | | Adjusted EBITDA | $108.8 million | +23.1% | | Domestic Same Store Sales Growth | 3.4% | - | | System-wide Restaurant Count | 1,959 | +13.2% (228 net openings) | | Domestic AUV | $1.6 million | - | Restaurant Count Growth (2021-2022) | Restaurant Type | End of 2021 (Count) | End of 2022 (Count) | | :--- | :--- | :--- | | Domestic Franchised | 1,498 | 1,678 | | Domestic Company-Owned | 36 | 43 | | International Franchised | 197 | 238 | | **Total System-wide** | **1,731** | **1,959** | - The increase in total revenue was driven by **221 net franchise restaurant openings**, **3.4% domestic same-store sales growth**, and an increase in the national advertising fund contribution rate from **4% to 5%**[179](index=179&type=chunk)[180](index=180&type=chunk) - Cost of sales as a percentage of company-owned restaurant sales decreased from **81.7% to 79.3%**, primarily due to a **26.9% decrease** in the cost of bone-in chicken wings[182](index=182&type=chunk)[184](index=184&type=chunk) - Net cash from operating activities increased to **$76.2 million** in FY2022 from **$48.9 million** in FY2021, driven by higher operating income and changes in Ad Fund cash flows[196](index=196&type=chunk)[197](index=197&type=chunk) - In March 2022, the company completed a securitized financing transaction, issuing **$250 million** in new notes and establishing a new **$200 million** variable funding facility, with proceeds used for a special dividend of **$119.5 million**, fees, and general corporate purposes[199](index=199&type=chunk)[200](index=200&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are commodity price fluctuations, especially for bone-in chicken wings, and interest rate changes, though its debt is predominantly fixed-rate - The company is exposed to commodity price risk, especially for bone-in chicken wings, which have no established fixed-price markets; a hypothetical **10% increase** in wing costs in FY2022 would have increased cost of sales by approximately **$1.5 million**[208](index=208&type=chunk) - Interest rate risk is largely mitigated by a predominantly fixed-rate debt structure; however, the company is exposed to interest rate increases on its **$200 million variable funding note facility**, which had no outstanding borrowings as of December 31, 2022[209](index=209&type=chunk) [Financial Statements and Supplementary Data](index=41&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Wingstop's audited consolidated financial statements for FY2022, including Balance Sheets, Income, Stockholders' Deficit, and Cash Flow Statements, with KPMG LLP's audit report [Report of Independent Registered Public Accounting Firm](index=42&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) KPMG LLP issued unqualified opinions on Wingstop's FY2022 consolidated financial statements and internal controls, noting a critical audit matter for franchisee-reported revenue - KPMG LLP issued an unqualified opinion on the consolidated financial statements and the effectiveness of internal control over financial reporting as of December 31, 2022[221](index=221&type=chunk)[256](index=256&type=chunk) - A critical audit matter was identified regarding the sufficiency of audit evidence for royalty revenue and advertising fees, as this revenue is derived from sales data reported by franchisees[259](index=259&type=chunk)[261](index=261&type=chunk) [Consolidated Balance Sheets](index=54&type=section&id=Consolidated%20Balance%20Sheets) As of December 31, 2022, Wingstop's total assets increased to **$424.2 million**, liabilities to **$815.1 million** due to debt, resulting in a **$390.9 million** stockholders' deficit Consolidated Balance Sheet Data (in thousands USD) | Account | Dec 31, 2022 | Dec 25, 2021 | | :--- | :--- | :--- | | Cash and cash equivalents | $184,496 | $48,583 | | Total Assets | $424,190 | $249,203 | | Long-term debt, net | $706,846 | $469,394 | | Total Liabilities | $815,051 | $558,728 | | Total stockholders' deficit | $(390,861) | $(309,525) | [Consolidated Statements of Comprehensive Income](index=55&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) For FY2022, Wingstop's total revenue grew to **$357.5 million**, operating income increased to **$91.9 million**, and net income reached **$52.9 million**, or **$1.77 per diluted share** Consolidated Income Statement Highlights (in thousands USD, except per share data) | Metric | FY 2022 (USD) | FY 2021 (USD) | | :--- | :--- | :--- | | Total Revenue | $357,521 | $282,502 | | Operating Income | $91,933 | $73,756 | | Net Income | $52,947 | $42,658 | | Diluted Earnings Per Share | $1.77 | $1.42 | [Consolidated Statements of Cash Flows](index=57&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In FY2022, net cash from operating activities was **$76.2 million**, investing used **$28.7 million**, and financing provided **$103.3 million**, increasing cash and equivalents by **$150.8 million** Summary of Cash Flows (in thousands USD) | Activity | FY 2022 | FY 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $76,238 | $48,878 | | Net cash used in investing activities | $(28,683) | $(29,853) | | Net cash provided by (used in) financing activities | $103,254 | $(23,389) | | **Net change in cash, cash equivalents and restricted cash** | **$150,809** | **$(4,364)** | [Notes to Consolidated Financial Statements](index=58&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies and financial data, including revenue disaggregation, securitized debt, lease obligations, stock-based compensation, the **$250 million** new debt issuance, and **$4.00 per share** special dividend - The company's fiscal year 2022 consisted of **53 weeks**, while 2021 and 2020 each consisted of **52 weeks**[278](index=278&type=chunk) - In fiscal year 2022, the company paid a special dividend of **$4.00 per share** (**$119.5 million total**) and regular dividends totaling **$0.72 per share** (**$21.5 million total**)[310](index=310&type=chunk)[312](index=312&type=chunk) - On March 9, 2022, the company issued **$250 million** of Series 2022-1 3.734% Fixed Rate Senior Secured Notes, Class A-2, and entered into a new **$200 million** variable funding note facility[330](index=330&type=chunk) - The company acquired **3 restaurants** from franchisees for a total purchase price of **$7.8 million** during fiscal year 2022[357](index=357&type=chunk)[358](index=358&type=chunk) Disaggregation of Revenue (in thousands USD) | Revenue Source | FY 2022 | FY 2021 | | :--- | :--- | :--- | | Royalty revenue | $142,900 | $119,396 | | Advertising fees | $119,011 | $81,529 | | Franchise fees | $4,357 | $4,020 | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=41&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 on any matter of accounting principles, practices, or financial statement disclosure - None[211](index=211&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls and internal control over financial reporting were effective as of December 31, 2022, with KPMG LLP issuing an unqualified attestation report - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2022[213](index=213&type=chunk) - Management assessed internal control over financial reporting as effective as of December 31, 2022, based on the COSO framework (2013)[217](index=217&type=chunk) - KPMG LLP, the independent registered public accounting firm, issued an unqualified attestation report on the effectiveness of the company's internal control over financial reporting[218](index=218&type=chunk)[221](index=221&type=chunk) [Other Information](index=43&type=section&id=Item%209B.%20Other%20Information) There is no other information to report in this section - None[228](index=228&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=43&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[230](index=230&type=chunk) Part III [Directors, Executive Compensation, Security Ownership, and Other Matters](index=44&type=section&id=Item%2010%2C%2011%2C%2012%2C%2013%2C%2014) Information for Items 10-14, covering directors, executive compensation, security ownership, related transactions, and accountant fees, is incorporated by reference from the 2023 Proxy Statement - Information for Item 10 (Directors, Executive Officers and Corporate Governance) will be included in the 2023 Proxy Statement and is incorporated by reference[233](index=233&type=chunk) - Information for Item 11 (Executive Compensation) will be included in the 2023 Proxy Statement and is incorporated by reference[234](index=234&type=chunk) - Information for Items 12, 13, and 14 will be included in the 2023 Proxy Statement and is incorporated by reference[235](index=235&type=chunk)[236](index=236&type=chunk)[237](index=237&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=45&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists exhibits filed with or incorporated by reference into the Form 10-K, including governance documents, debt agreements, and compensation plans, with no financial statement schedules - This section provides a list of exhibits filed as part of the report, including the Amended and Restated Certificate of Incorporation, debt agreements, and various compensation plans[240](index=240&type=chunk)[242](index=242&type=chunk) [Form 10-K Summary](index=47&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company did not provide a Form 10-K summary - None[245](index=245&type=chunk)

Wingstop, Inc. (NASDAQ:WING) Q3 2022 Earnings Conference Call October 26, 2022 10:00 AM ET Company Participants Susana Arevalo - Vice President of FP&A and Investor Relations Michael Skipworth - President and Chief Executive Officer Alex Kaleida - Senior Vice President and Chief Financial Officer Conference Call Participants John Glass - Morgan Stanley David Tarantino - Baird Jeffrey Bernstein - Barclays Jared Garber - Goldman Sachs Jon Tower - Citi Andrew Charles - Cowen Jeff Farmer - Gordon Haskett Andy B ...

Wingstop Inc. (NASDAQ:WING) Q2 2022 Earnings Conference Call July 28, 2022 10:00 AM ET Company Participants Susana Arevalo - Vice President of FP&A & Investor Relations Michael Skipworth - President & Chief Executive Officer Alex Kaleida - Senior Vice President & Chief Financial Officer Conference Call Participants David Tarantino - Baird Jeffrey Bernstein - Barclays John Glass - Morgan Stanley Andy Barish - Jefferies Andrew Charles - Cowen Jared Garber - Goldman Sachs Jon Tower - Citi Dennis Geiger - UBS B ...