Fiscal First Quarter 2024: A Strong Performance for Wingstop Inc.
Here’s a breakdown of Wingstop Inc.’s highlights for the fiscal first quarter of 2024 in comparison to the same period in 2023:
- System-wide Sales Surge: A remarkable 36.8% increase to $1.1 billion.
- Expansion: 65 new openings during the quarter.
- Domestic Same Store Sales: Up by an impressive 21.6%.
- Domestic Restaurant AUV: Climbed to $1.9 million.
- Digital Sales: Represented 68.3% of total system-wide sales.
- Revenue Growth: Total revenue surged by 34.1% to reach $145.8 million.
- Net Income: Soared by 83.5% to $28.7 million, or $0.98 per diluted share.
- Adjusted Metrics: Adjusted net income and adjusted earnings per diluted share (both non-GAAP measures) increased by 61.8% to $28.7 million, or $0.98 per diluted share. Adjusted EBITDA, another non-GAAP measure, surged by 45.3% to $50.3 million.
In the words of Michael Skipworth, President & Chief Executive Officer: “Our fiscal first quarter 2024 showcased the momentum behind the Wingstop brand and the continued strength of our strategies, delivering 21.6% domestic same-store sales growth driven almost entirely by transaction growth.”
Financial Breakdown:
- Total revenue for the quarter jumped to $145.8 million, with significant contributions from various sources including royalty revenue, franchise fees, and other revenue streams.
- Advertising fees rose due to the substantial increase in system-wide sales.
- Company-owned restaurant sales increased due to new openings and same-store sales growth.
Financial Outlook: Based on the year-to-date performance, the company provided updated guidance for 2024 including:
- Low double-digit domestic same-store sales growth.
- Anticipated global net new unit openings of 275 to 295.
- Projected SG&A expense of approximately $111 million.
- Expected stock-based compensation expense of approximately $20 million.
- Reiteration of guidance for depreciation and amortization between $18 – $19 million for 2024.
Restaurant Development: As of March 30, 2024, Wingstop had 2,279 restaurants worldwide, with 65 net system-wide openings during the quarter.
Quarterly Dividend: In acknowledgment of strong cash flow generation, the board approved a quarterly dividend of $0.22 per share of common stock, totaling approximately $6.5 million, payable on June 7, 2024.
Definitions: The release also provides definitions for key terms such as domestic average unit volume, domestic same store sales, and system-wide sales to facilitate understanding.
Conference Call and Webcast: A conference call discussing the fiscal first quarter 2024 financial results will be held today at 10:00 AM Eastern Time, with details for participation and replay provided.
For further information, the archived webcast will be available on Wingstop’s investor relations website.
