Financial Performance - System-wide sales increased by 36.8% year-over-year to $4.8 billion[178] - Total revenue grew by 36.0% to $625.8 million[178] - Net income surged by 54.9% to $108.7 million, equating to $3.70 per diluted share[178] - Adjusted EBITDA increased by 44.8% to $212.1 million[178] - Operating income for fiscal year 2024 was $165.6 million, reflecting a 47.1% increase from $112.6 million in the prior fiscal year[191] - Net income reached $108.7 million, a 54.9% increase compared to $70.2 million in fiscal year 2023[191] - Cash flows from operating activities were $157.6 million, an increase of $36.0 million from $121.6 million in the prior fiscal year[207] Sales and Growth Metrics - Domestic same store sales rose by 19.9% compared to the previous fiscal year[178] - Digital sales accounted for 70.3% of system-wide sales[178] - Domestic average unit volume (AUV) rose to $2.1 million[178] - Company-owned domestic same store sales growth was 7.7%[178] - Company-owned restaurant sales increased by $24.0 million, with same store sales growth of 7.7% primarily due to increased transactions[194] - Royalty revenue, franchise fees, and other increased by $81.3 million, driven by domestic same store sales growth of 19.9% and net new franchise development[192] - Advertising fees rose by $60.5 million, attributed to a 36.8% increase in system-wide sales and an increase in the national advertising fund contribution rate[193] Restaurant Expansion - The number of system-wide restaurants reached 2,563, a 15.8% increase from the prior year[178] Shareholder Returns and Repurchases - The board of directors approved a quarterly cash dividend of $0.27 per share for the third and fourth quarters of 2024, totaling approximately $28.7 million for the fiscal year[212] - The company authorized an additional $500.0 million for share repurchases under its existing program, following the completion of previous repurchases[215] - The Company entered into a $250.0 million accelerated share repurchase agreement, retiring an initial delivery of 551,325 shares, representing approximately 75% of the total expected shares[216] - In fiscal year 2024, the Company repurchased and retired 720,804 shares at an average price of $339.95, compared to 645,952 shares at an average price of $193.51 in fiscal year 2023[217] - As of December 28, 2024, $311.1 million remained available under the Share Repurchase Program, with a total of 1,366,756 shares repurchased since the program's inception in August 2023[217] Revenue Composition - The Company's revenue consists primarily of royalties, franchise fees, and upfront fees from development agreements, with royalties calculated as a percentage of franchise restaurant sales[222][223] - Initial and renewal franchise fees are recognized as revenue on a straight-line basis over the term of the respective agreement[223] Contractual Obligations - The Company has contractual obligations related to debt obligations and interest payments, with further details available in the financial statements[218] - Operating leases and indemnification obligations are also part of the Company's contractual commitments, with a low probability of incurring actual liabilities under indemnifications[219] Accounting Policies - The Company’s accounting policies require estimates and assumptions that may affect reported amounts of assets, liabilities, revenues, and expenses, which could vary from actual results[221]

Financial Data and Key Metrics Changes - For fiscal 2024, domestic same-store sales grew by 19.9%, translating to a two-year stacked comp of 38% [11] - System-wide sales increased by 36.8% to $4.8 billion, with adjusted EBITDA rising 44.8% to $212 million [11][50] - In Q4, system-wide sales increased 27.6% to $1.2 billion, with same-store sales growing by 10.1% [44][45] - Adjusted EBITDA for Q4 was $56.3 million, a 44.2% increase year-over-year [50] Business Line Data and Key Metrics Changes - The company opened a record 349 net new restaurants in 2024, achieving a unit growth of 15.8% [11][36] - Digital sales mix increased to 70%, indicating a strong shift towards online transactions [12] - Company-owned restaurant sales increased by $3.8 million in Q4, driven by new openings and a 3.8% increase in same-store sales [45] Market Data and Key Metrics Changes - The company ended 2024 with 359 international locations and added its eleventh market in Q4 [38] - The international expansion strategy has shown strong interest, particularly in the UK market, with a recent acquisition valued at over $500 million [38] Company Strategy and Development Direction - The company aims to grow average unit volumes (AUVs) to $3 million and scale global unit count to over 10,000 restaurants [16] - Strategies include scaling brand awareness, driving menu innovation, expanding delivery channels, and leveraging data-driven marketing [19] - A new AI-enabled kitchen operating platform is being developed to improve kitchen operations and reduce service times [30][123] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the restaurant industry but emphasized the company's ability to gain market share [68] - The company is confident in achieving low to mid-single-digit same-store sales growth for 2025, despite tough comparisons from previous years [56][78] - Management highlighted the strength of the brand's digital platform and its impact on customer engagement and retention [85] Other Important Information - The company raised over $2 million for St. Jude's Children's Research Hospital during Q4 [40] - A quarterly dividend of $0.27 per share was declared, totaling approximately $7.7 million [55] Q&A Session Summary Question: What is the long-term outlook for same-store sales growth? - Management indicated that the long-term target remains mid-single digits, which serves as a basis for modeling expectations [63][64] Question: How do you see the comp trajectory for 2025? - Management expects the comp trajectory to be influenced by tough comparisons from previous years, particularly in Q1 [78] Question: Can you provide insights on the CRM efforts and database growth? - The company reported a record growth in its digital guest database, which has surpassed 50 million users, leading to increased frequency and satisfaction [85] Question: How does the company measure value in a competitive environment? - Management emphasized that value is about quality and value for money, not just price, and noted improvements in brand health metrics [92][93] Question: What is the expected unit growth for 2025? - The company anticipates a unit growth rate of 14% to 15% for 2025, supported by a strong development pipeline [96] Question: How does the company plan to balance unit growth and same-store sales? - Management stated that they do not see unit growth negatively impacting same-store sales, as there is significant market opportunity [112] Question: What factors will influence pricing strategy in 2025? - The company plans to maintain a disciplined pricing strategy, anticipating a 1% to 2% increase, while monitoring consumer health [106]

Core Insights - Wingstop has been a strong restaurant stock since its IPO in 2015, but recently it has hit 52-week lows after a 12% drop following its Q4 2024 financial results [1] Financial Performance - Wingstop reported a 10% year-over-year increase in same-store sales for Q4 2024, marking the 21st consecutive year of growth in this metric [2][6] - The company opened 349 net new restaurants in 2024, increasing its total by nearly 16% [3] - Revenue for 2024 rose by 36% to $626 million, while net income increased by 55% to $109 million [3] Market Valuation - The stock was trading at over 20 times sales last year, which is considered an extreme valuation for a restaurant stock, even with its growth and high-margin franchise model [4] - The slight miss in Q4 same-store sales expectations contributed to investor sell-off, leading to the stock's decline [4] Long-term Outlook - Despite the recent downturn, Wingstop shares have appreciated by 75% over the last three years, indicating strong long-term performance [5] - Management plans to open thousands of new locations, which is expected to enhance shareholder value in the long run [6]

Core Insights - Wingstop reported revenue of $161.82 million for the quarter ended December 2024, reflecting a year-over-year increase of 27.4% [1] - The earnings per share (EPS) for the quarter was $0.88, up from $0.64 in the same quarter last year, with an EPS surprise of +2.33% compared to the consensus estimate of $0.86 [1] Financial Performance Metrics - Total system-wide restaurants reached 2,563, exceeding the average estimate of 2,543 by eight analysts [4] - Domestic same-store sales growth was reported at 10.1%, slightly below the average estimate of 11.3% [4] - Company-owned domestic same-store sales growth was 3.8%, compared to the average estimate of 5.2% [4] - The number of domestic company-owned restaurants at the end of the period was 50, below the average estimate of 58 [4] - New restaurant openings in international franchised activity were 22, matching the average estimate [4] - Domestic franchised activity saw 83 new restaurant openings, surpassing the average estimate of 63 [4] - Total new restaurant openings were 105, exceeding the average estimate of 85 [4] - The number of international franchised restaurants at the end of the period was 359, aligning with the average estimate [4] - Domestic franchised restaurants totaled 2,154, slightly above the average estimate of 2,127 [4] Revenue Breakdown - Royalty revenue, franchise fees, and other generated $75.70 million, exceeding the average estimate of $74.02 million, with a year-over-year increase of +31.2% [4] - Revenue from company-owned restaurant sales was $30.06 million, below the average estimate of $33.09 million, reflecting a year-over-year increase of +14.6% [4] - Advertising fees revenue was reported at $56.06 million, slightly below the average estimate of $57.07 million, with a year-over-year change of +30% [4] Stock Performance - Wingstop shares returned +9.1% over the past month, outperforming the Zacks S&P 500 composite's +2.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - Wingstop reported quarterly earnings of $0.88 per share, exceeding the Zacks Consensus Estimate of $0.86 per share, and showing an increase from $0.64 per share a year ago, indicating a positive earnings surprise of 2.33% [1] - The company posted revenues of $161.82 million for the quarter ended December 2024, which was below the Zacks Consensus Estimate by 1.61%, but an increase from $127.06 million year-over-year [2] Earnings Performance - Wingstop has surpassed consensus EPS estimates three times over the last four quarters, demonstrating a consistent ability to meet or exceed earnings expectations [2] - The stock has shown a price increase of approximately 7.7% since the beginning of the year, outperforming the S&P 500's gain of 4.2% [3] Future Outlook - The company's earnings outlook will be crucial for determining the stock's immediate price movement, with current consensus EPS estimates for the upcoming quarter at $1.04 on revenues of $177.82 million, and $4.28 on revenues of $751.92 million for the current fiscal year [7] - The estimate revisions trend for Wingstop is currently mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Retail - Restaurants industry, to which Wingstop belongs, is currently ranked in the top 30% of over 250 Zacks industries, indicating a favorable industry outlook that could positively impact stock performance [8] - Another competitor in the same industry, Papa John's, is expected to report a significant decline in earnings, with a projected EPS of $0.48, reflecting a year-over-year change of -47.3% [9]

Core Insights - Wingstop reported strong Q4 2024 results with a diluted EPS of $0.92, exceeding analyst expectations of $0.86, reflecting a year-over-year growth of 43.8% [2][3] - Revenue for the quarter was $161.8 million, slightly below the expected $165 million, but still representing a 27.4% increase compared to the previous year [2][3] Financial Performance - Key metrics for Q4 2024 include: - EPS: $0.92 (Q4 Estimate: $0.86, Q4 2023: $0.64) [3] - Revenue: $161.8 million (Q4 Estimate: $165 million, Q4 2023: $127.1 million) [3] - Net Income: $26.8 million (Q4 2023: $18.8 million) [3] - Adjusted EBITDA: $56.3 million (Q4 2023: $39.1 million) [3] Business Model - Wingstop operates primarily on a franchising model, with 98% of its 2,563 restaurants run by franchisees, allowing for high margins and consistent cash flow [4][7] - The company added 349 new restaurants in 2024, indicating strong franchise confidence and economic viability [4] Menu and Sales Growth - The diverse menu, featuring wings, tenders, and sandwiches in 12 flavors, drives high consumer demand and same-store sales growth [5] - System-wide sales reached $1.2 billion, up from $966 million year-over-year, with same-store sales increasing by 10.1% [6] Digital Strategy - Digital sales accounted for 70.3% of total sales, highlighting the effectiveness of Wingstop's investment in digital customer experiences [6] - The company plans to maintain over 70% of future revenue from digital channels [10][11] Marketing and Expansion - Marketing expenditures increased to 5.3% of sales, supporting growth through enhanced digital marketing and national advertising [8] - Wingstop opened 105 net new restaurants in Q4 2024, showcasing its strong franchising model [7] Future Outlook - The company forecasts a global unit growth rate of 14-15% for 2025, focusing on digital capabilities and same-store sales growth [9] - Planned spending on SG&A expenses is approximately $140 million, with expected depreciation and amortization of $29-$30 million [9]

Financial Performance - System-wide sales increased 36.8% to approximately $4.8 billion in fiscal year 2024, marking the 21st consecutive year of same store sales growth [29]. - Total revenue for fiscal year 2024 increased 36.0% to $625.8 million, up from $460.1 million in the prior fiscal year [12]. - Net income for fiscal year 2024 increased 54.9% to $108.7 million, or $3.70 per diluted share [12]. - Adjusted EBITDA for fiscal year 2024 increased 44.8% to $212.1 million [12]. - Domestic same store sales increased 19.9% in fiscal year 2024 [11]. - In 2024, Wingstop achieved total revenue of $625.8 million, a 36% increase from $460.1 million in 2023 [39]. - The company reported a net income of $108.7 million for the fiscal year 2024, up 55% from $70.2 million in 2023 [39]. - Wingstop's earnings per share for fiscal year 2024 were $3.72, compared to $2.36 in 2023, reflecting strong profitability growth [39]. - Net income for the thirteen weeks ended December 28, 2024, was $26,753,000, compared to $18,814,000 for the same period in 2023, representing a year-over-year increase of 42.4% [46]. - Adjusted EBITDA for the fiscal year ended December 28, 2024, was $212,061,000, a significant increase of 44.8% from $146,484,000 in 2023 [46]. Growth and Expansion - The company opened 349 net new restaurants in fiscal year 2024, representing a 15.8% unit growth [4]. - The company expects a global unit growth rate of 14% to 15% for fiscal year 2025 [21]. - Total system-wide restaurants increased to 2,563 by the end of the period, up from 2,214 in the previous year, reflecting a growth of 15.7% [44]. - Domestic franchised restaurants reached 2,154 at the end of the period, up from 1,877 in the previous year, marking a growth of 14.7% [44]. - The company opened 83 new domestic franchised restaurants during the thirteen weeks ended December 28, 2024, compared to 86 openings in the same period of 2023 [44]. - International franchised restaurants grew to 359, up from 288 in the previous year, indicating a growth of 24.7% [44]. - The company plans to continue expanding its restaurant count, with a focus on new unit openings in the coming years [33]. Financial Position - Total assets increased to $716.2 million in 2024, compared to $377.8 million in 2023, reflecting significant growth [37]. - Long-term debt rose to $1.2 billion in 2024, up from $712.3 million in 2023, indicating increased leverage [37]. - The cost of sales for the fiscal year 2024 was $91.6 million, representing 76.5% of company-owned restaurant sales, compared to 73.7% in 2023 [41]. - Interest expense for the fiscal year ended December 28, 2024, was $21,292,000, compared to $18,227,000 in 2023, reflecting an increase of 11.4% [46]. - The company reported a total income tax expense of $38,473,000 for the fiscal year ended December 28, 2024, up from $24,135,000 in 2023, representing an increase of 59.5% [46]. Marketing and Brand Recognition - Wingstop's advertising expenses for the fiscal year 2024 were $233.3 million, a significant increase from $166.6 million in 2023 [39]. - The company has been recognized as one of the "Hottest Brands" and "Best Brands to Work For," indicating positive brand perception and employee satisfaction [30]. Operational Metrics - Digital sales accounted for 70.3% of system-wide sales in fiscal fourth quarter 2024 [4]. - Domestic average unit volume (AUV) increased to $2.1 million in fiscal year 2024 [4]. - The total number of domestic company-owned restaurants remained stable at 50, unchanged from the previous year [44]. - The company incurred $6,049,000 in stock-based compensation expense for the thirteen weeks ended December 28, 2024, compared to $5,539,000 in the same period of 2023 [46].

Record 349 Net New Restaurants and 15.8% Unit Growth in 2024Delivers 21st Consecutive Year of Same Store Sales Growth with 19.9% in 2024DALLAS, Feb. 19, 2025 /PRNewswire/ -- Wingstop Inc. ("Wingstop" or the "Company") (NASDAQ: WING) today announced financial results for the fiscal fourth quarter and fiscal year ended December 28, 2024.Highlights for the fiscal fourth quarter 2024 compared to the fiscal fourth quarter 2023: System-wide sales increased 27.6% to $1.2 billion 105 net new openings in the fiscal ...

Core Viewpoint - Wingstop Inc. is expected to report strong fourth-quarter fiscal 2024 results, with earnings and revenues projected to grow significantly year over year, driven by various strategic initiatives and operational efficiencies [1][4][3]. Financial Estimates - The Zacks Consensus Estimate for the fiscal fourth-quarter earnings per share is 86 cents, reflecting a growth of 34.4% from 64 cents in the same quarter last year [3]. - Revenue estimates stand at $164.5 million, indicating a 29.4% increase compared to the previous year [3]. Growth Drivers - Key factors contributing to Wingstop's anticipated performance include new restaurant openings, menu innovation, and a robust digital business [4]. - The company is focusing on expanding its delivery channels, utilizing data-driven marketing, and implementing strategic pricing to enhance performance [4]. Comparable Store Sales - The consensus estimate for domestic comparable store sales growth is 5.2% [5]. - Estimates for various revenue streams include advertising fees at $57 million (up 32.2%), royalty revenues at $74 million (up 27.6%), and company-owned restaurant sales at $33.1 million (up 26.2%) [5]. Technological Advancements - The launch of the MyWingstop tech platform, which integrates over $2.5 billion in digital sales, is expected to enhance customer experiences and engagement [6]. - The platform has shown a 10% improvement in order efficiency, a 35% increase in the first-party database, and a 69% digital sales mix, positioning Wingstop favorably for increased transactions and customer loyalty [6]. Cost Management - Despite rising food, beverage, and packaging costs, the company's supply-chain strategies are likely to mitigate volatility in core commodities [7]. - The company successfully navigated over 100% inflation in spot market wing prices through effective supply-chain management and expects a slight decrease in food costs in the fourth quarter, positively impacting the bottom line [8]. Earnings Prediction - The company's earnings model indicates a strong likelihood of an earnings beat, supported by a positive Earnings ESP of +3.01% and a Zacks Rank of 3 [9][10].

Company Overview - Wingstop Inc. (NASDAQ: WING) is set to report its Q4 results on February 19th during pre-market hours, indicating a focus on transparency and timely updates for investors [1]. Growth and Expansion - The company has been rapidly expanding its store network, which suggests a strong growth trajectory and commitment to increasing its market presence [1]. Investment Philosophy - The investment philosophy highlighted emphasizes identifying mispriced securities by understanding the underlying drivers of a company's financials, which can be effectively analyzed through a DCF model valuation [1].