Wingstop(WING) - 2024 Q4 - Annual Report

Financial Performance - System-wide sales increased by 36.8% year-over-year to $4.8 billion[178] - Total revenue grew by 36.0$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$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$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]