Wingstop Inc. Reports Fiscal First Quarter Financial Results

Core Insights - Wingstop Inc. reported a record 126 net new openings in the first quarter of fiscal 2025, achieving an 18% net new unit growth compared to the same period in fiscal 2024 [1][3] - The company demonstrated resilience in its business model despite macroeconomic challenges, with a strong pipeline of franchise development and industry-leading returns for brand partners [3][4] Financial Performance - Total revenue for the first quarter of fiscal 2025 increased to $171.1 million, up from $145.8 million in the prior year, representing a 17.4% growth [5][8] - System-wide sales rose by 15.7% to $1.3 billion, driven by new restaurant openings and same-store sales growth [8][22] - Net income surged 221% to $92.3 million, or $3.24 per diluted share, compared to $28.7 million in the same quarter last year [8][38] Operational Metrics - The number of system-wide restaurants increased to 2,689, with 2,250 domestic franchise restaurants and 388 international franchise restaurants [4][14] - Domestic average unit volume (AUV) rose to $2.1 million, reflecting strong sales performance [8][18] - Digital sales accounted for 72% of system-wide sales, indicating a significant shift towards online ordering [8] Cost and Expenses - Cost of sales increased to $22.8 million, with a margin of 76.0% of company-owned restaurant sales, up from 74.5% in the prior year [6][40] - Selling, general, and administrative (SG&A) expenses rose to $31.4 million, driven by increased headcount and system implementation costs [7][8] Shareholder Returns - The board of directors declared a quarterly dividend of $0.27 per share, totaling approximately $7.5 million, to be paid on June 6, 2025 [15] - The company repurchased a total of 868,527 shares under an accelerated share repurchase agreement at an average price of $287.84 per share [16][17] Future Outlook - The company provided updated guidance for fiscal 2025, indicating expectations for continued growth in same-store sales and unit expansion, while acknowledging the unpredictable macro-environment [13][19]