Fast-food chain Wingstop (NASDAQ:)
reported outcomes forward of analysts’ expectations in Q1 CY2024, with income up 34.1% 12 months on 12 months to $145.8 million. It made a non-GAAP revenue of $0.98 per share, bettering from its revenue of $0.59 per share in the identical quarter final 12 months.
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Wingstop (WING) Q1 CY2024 Highlights:
- Revenue: $145.8 million vs analyst estimates of $136 million (7.2% beat)
- EPS (non-GAAP): $0.98 vs analyst estimates of $0.77 (28.1% beat)
- Gross Margin (GAAP): 48.9%, up from 48.2% in the identical quarter final 12 months
- Same-Store Sales had been up 21.6% 12 months on 12 months
- Store Locations: 2,279 at quarter finish, growing by 283 during the last 12 months
- Market Capitalization: $11.3 billion
The ardour undertaking of two hen wing aficionados in Texas, Wingstop (NASDAQ:WING) is a well-liked fast-food chain identified for its flavorful and crispy hen wings supplied in a wide range of sauces and seasonings.
Modern Fast MealsModern quick meals is a comparatively newer class representing a center floor between conventional quick meals and sit-down eating places. These institutions function an expanded menu choice priced above conventional quick meals choices, usually incorporating brisker and cleaner components to serve prospects prioritizing high quality. These eateries are capitalizing on the notion that your drive-through burger and fries joint is detrimental to your well being due to inferior components.
Sales ProgressWingstop is a small restaurant chain, which typically brings disadvantages in comparison with bigger rivals benefitting from higher model consciousness and economies of scale. On the opposite hand, one benefit is that its development charges could be larger as a result of it is rising off a small base.
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As you may see beneath, the corporate’s annualized income development fee of 24.9% during the last 5 years was unimaginable because it added extra eating places and elevated gross sales at current, established eating places.
This quarter, Wingstop reported fantastic year-on-year income development of 34.1%, and its $145.8 million in income exceeded Wall Street’s estimates by 7.2%. Looking forward, Wall Street expects gross sales to develop 17.2% over the subsequent 12 months, a deceleration from this quarter.
Same-Store SalesWingstop’s demand has been spectacular for a restaurant enterprise during the last eight quarters. On common, the corporate has grown its same-store gross sales by a powerful 13.4% 12 months on 12 months. This efficiency offers it the boldness to quickly open new eating places. When an organization has sturdy demand, extra places ought to assist it attain extra prospects looking for its meals and enhance income development.
In the most recent quarter, Wingstop’s same-store gross sales rose 21.6% 12 months on 12 months. This development was in keeping with the 20.1% year-on-year enhance it posted 12 months in the past.
Key Takeaways from Wingstop’s Q1 Results
We had been impressed by how considerably Wingstop blew previous analysts’ income, gross margin, EBITDA, and EPS expectations this quarter. These beats had been pushed by its same-store gross sales development of 21.6%, which crushed Wall Street’s forecast of 12.7%. Management famous most of its development got here from elevated transactions, not worth, which could be very encouraging. The firm additionally opened extra eating places than anticipated within the quarter, a tailwind for its income development.
Looking forward, Wingstop’s low double-digit same-store gross sales development steerage for the complete 12 months additionally exceeded estimates, and it declared a dividend of $0.22 per share, payable on June 7, 2024 to stockholders of document as of May 17, 2024. Zooming out, we expect this was a unbelievable quarter that ought to have shareholders cheering. The inventory is up 2.2% after reporting and at the moment trades at $393.21 per share.
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