Wingstop Inc. today unveiled its financial performance for the fiscal fourth quarter and fiscal year ending on December 30, 2023. Notably, the fiscal fourth quarter and fiscal year concluded on December 31, 2022, featured a 53rd week compared to fiscal 2023. Unless specified otherwise, all figures for the preceding fiscal periods are presented on a 14-week or 53-week basis, respectively.
Here are the key highlights for the 13-week fiscal fourth quarter of 2023 compared to the 14-week fiscal fourth quarter of 2022:
- System-wide sales surged by 24.5% to reach $965.9 million.
- The fiscal fourth quarter of 2023 witnessed the opening of 115 net new outlets.
- Domestic same-store sales exhibited a robust growth of 21.2%.
- Domestic restaurant Average Unit Volume (AUV) rose to $1.8 million.
- Digital sales constituted 67.0% of system-wide sales.
- Total revenue escalated by 21.2% to $127.1 million.
- Net income witnessed a 6.9% increase, reaching $18.8 million, or $0.64 per diluted share.
- Adjusted net income and adjusted earnings per diluted share, both non-GAAP metrics, experienced a 4.9% surge, amounting to $18.8 million, or $0.64 per diluted share.
- Adjusted EBITDA, another non-GAAP metric, saw a 13.2% rise, totaling $39.1 million.
Moving on to the highlights for the 52-week fiscal year of 2023 compared to the 53-week fiscal year of 2022:
- System-wide sales registered a substantial growth of 27.1%, reaching $3.5 billion.
- Fiscal year 2023 saw the opening of 255 net new outlets.
- The system-wide restaurant count increased by 13.0% to encompass 2,214 locations worldwide.
- Domestic same-store sales experienced an impressive growth of 18.3%.
- Total revenue surged by 28.7% to $460.1 million.
- Net income saw a notable increase of 32.5%, totaling $70.2 million, or $2.35 per diluted share.
- Adjusted net income and adjusted earnings per diluted share, both non-GAAP measures, soared by 36.0%, reaching $74.1 million, or $2.48 per diluted share.
- Adjusted EBITDA, another non-GAAP measure, witnessed a remarkable increase of 36.1%, amounting to $146.5 million.
Please note that fiscal year 2022 contained an extra week in the fourth quarter, resulting in incremental system-wide sales, revenues, net income, and Adjusted EBITDA.
Adjusted EBITDA, adjusted net income, and adjusted earnings per diluted share are non-GAAP measures. Reconciliations of these measures to the most directly comparable GAAP financial measure are provided in the accompanying schedule. For further details, refer to “Non-GAAP Financial Measures.”
Michael Skipworth, President and Chief Executive Officer, expressed, “2023 marked the strongest year on record for Wingstop,” emphasizing the company’s remarkable performance and growth prospects.
For the fiscal fourth quarter of 2023, total revenue surged to $127.1 million from $104.9 million in the preceding fiscal fourth quarter. This increase was primarily driven by various factors, including domestic same-store sales growth, net new franchise development, and advertising fees.
In the fiscal year 2023, total revenue escalated to $460.1 million from $357.5 million in the previous fiscal year, with factors such as domestic same-store sales growth, net new franchise development, and advertising fees playing significant roles.
Looking ahead to fiscal 2024, the company anticipates mid-single-digit domestic same-store sales growth, approximately 270 global net new units, SG&A of approximately $108 million, stock-based compensation expense of approximately $19 million, and depreciation and amortization ranging between $18 million to $19 million.
As of December 30, 2023, Wingstop operated 2,214 restaurants worldwide, including 1,926 in the United States and 288 in international markets and U.S. territories. During fiscal year 2023, the company opened 255 net system-wide Wingstop restaurants.
Furthermore, Wingstop initiated a share repurchase program, with $125.0 million already repurchased under the ASR Agreement. Additionally, a quarterly dividend of $0.22 per share of common stock was approved by the board of directors, underscoring the company’s commitment to delivering value to shareholders.
