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Wingstop Gears Up to Report Q4 Earnings: Things to Keep in Mind
WINGWingstop(WING) ZACKS·2025-02-17 16:16

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 164.5million,indicatinga29.4164.5 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 74million(up27.674 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].