NASDAQ$WING

Wingstop Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Wingstop reported strong Q2 2021 financial results, demonstrating brand strength and growth strategies with increased system-wide sales and domestic same-store sales.

Wingstop Inc. reported fiscal second quarter financial results with a 15.8% increase in system-wide sales, 2.1% increase in domestic same-store sales, and total revenue increase of 11.9% to $74.0 million. The company opened 45 net new restaurants, representing a 13.1% unit growth.

  • System-wide sales increased by 15.8% to $589.7 million.
  • 45 net new restaurant openings, representing a 13.1% increase.
  • Domestic same-store sales increased by 2.1%.
  • Digital sales accounted for 64.5% of total sales.

Headline financials

Total Revenue

$74M

Previous: $66.1M+11.9%
EPS (adj)

$0.38

Previous: $0.34+11.8%
Domestic AUV

$1.56M

Previous: $1.37K+113809.2%
Domestic same store sales growth

2.1%

Previous: 31.9%-93.4%
Capital Expenditures

-$8.26M

Previous: -$2.67M-209.3%
Free Cash Flow

$3.05M

Previous: $8.87M-65.6%
Net Income

$11.3M

Previous: $11.5M-2.0%
Operating Income

$18.9M

Previous: $19.5M-3.2%
Gross Profit

$59.8M

Previous: $52.7M+13.4%
Cash & Equivalents

$43.5M

Previous: $45.8M-4.9%
Total Assets

$234M

Previous: $201M+16.5%
Stock-Based Comp

$2.46M

Previous: $1.97M+24.7%

Revenue & EPS history

Wingstop · Revenue · Quarterly

$74M

Q2 2021+11.9%vs Q2 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Wingstop · $74M total across 3 segments · Q2 2021

  • Royalty revenue, franchise fees and other
    $33.1M+18.9%
  • Advertising fees
    $22.6M+13.3%
  • Company-owned restaurant sales
    $18.3M-0.2%

Forward guidance

The Company reiterates mid-single digit domestic same store sales growth. Additionally, the Company expects the following for the fiscal year ending December 25, 2021: •Unit growth of 12%+ •Food, Beverage and Packaging costs of approximately 44%, as a percentage of company owned restaurant sales and total cost of sales of approximately 80%, as a percentage of company owned restaurant sales •SG&A of $64.8 to 66.8 million; and •Adjusted SG&A, a non-GAAP measure, of between $55.1 - $56.6 million.

Tailwinds

  • Unit growth of 12%+
  • Mid-single digit domestic same store sales growth
  • Strong cash flow generation
  • Commitment to returning value to stockholders
  • Continued excitement to grow with our brand

Headwinds

  • Challenging commodity environment
  • COVID-19 related factors
  • Unemployment rate
  • Temporary store closures
  • Inability of workers to work due to illness, quarantine, or government mandates

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+2.7%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+3.5%

Avg return

30 days after

63%

31 / 49 earnings

Positive

+26.6%

Q2 2022

Best reaction

-22.0%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.8%-13.0%-9.3%
Q4 2025+10.8%-1.4%-25.4%
Q3 2025+10.8%+11.3%+22.8%
Q1 2025+14.5%+16.8%+48.2%
Q4 2024-13.4%-22.7%-29.6%
Q3 2024-22.0%-19.5%-10.9%
Q2 2024-1.3%-6.4%+2.5%
Q1 2024-0.8%+2.9%-4.2%
Q4 2023+3.0%+7.7%+9.8%
Q3 2023+8.7%+13.0%+32.8%
Q2 2023-1.7%-0.9%-5.7%
Q1 2023+4.1%+3.6%-0.8%
Q4 2022+4.8%+4.2%+10.9%
Q3 2022+17.5%+17.5%+15.3%
Q2 2022+26.6%+24.3%+16.1%
Q1 2022-1.4%-9.4%-12.4%
Q4 2021-1.5%-15.3%-16.7%
Q3 2021-2.6%+1.1%-7.7%
Q2 2021+2.5%+0.5%+1.1%
Q1 2021+6.7%+8.0%-3.7%
Q4 2020-16.0%-20.9%-20.8%
Q3 2020+1.6%+13.7%+8.3%
Q2 2020+19.1%+22.0%+23.6%
Q1 2020+1.7%+4.6%-0.8%
Q4 2019-0.5%-4.2%-44.4%
Q3 2019-0.3%-8.0%-4.4%
Q2 2019-3.2%-1.3%+4.8%
Q1 2019+3.7%+3.6%+16.8%
Q4 2018+0.6%-1.2%+14.8%
Q3 2018-6.7%-7.1%-4.7%
Q2 2018+20.6%+20.6%+36.4%
Q1 2018+10.7%+12.7%+4.1%
Q4 2017-3.0%-0.1%+3.0%
Q3 2017+10.4%+8.7%+17.5%
Q2 2017+5.2%+6.7%+8.9%
Q1 2017+10.7%+5.8%+0.3%
Q4 2016-3.7%-6.8%+4.7%
Q3 2016+1.5%-1.5%+17.6%
Q2 2016+11.6%+16.8%+17.2%
Q1 2015+2.3%
Q1 2016+1.4%
Q4 2013+0.2%
Q1 2014+0.2%
Q4 2015+4.2%
Q3 2014-5.8%
Q3 2015-0.5%
Q2 2014+0.4%
Q4 2014+0.4%
Q2 2015+0.7%

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