NASDAQ$WING

Wingstop Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Wingstop reported strong Q2 2022 financial results, driven by unit growth and resilient brand performance.

Wingstop Inc. announced financial results for the fiscal second quarter ended June 25, 2022, featuring a 7.5% increase in system-wide sales to $633.6 million and 67 net new openings. Total revenue increased 13.2% to $83.8 million, and net income rose 17.6% to $13.3 million, or $0.44 per diluted share. The company reiterated its full-year financial outlook, benefiting from deflation in bone-in wings and proven sales-driving strategies.

  • System-wide sales increased by 7.5% to $633.6 million.
  • The company achieved 67 net new restaurant openings.
  • Total revenue increased by 13.2% to $83.8 million.
  • Net income increased by 17.6% to $13.3 million, or $0.44 per diluted share.

Headline financials

Total Revenue

$83.8M

Previous: $74M+13.2%
EPS (adj)

$0.45

Previous: $0.38+18.4%
Domestic AUV

$1.58M

Previous: $1.56M+1.6%
Domestic same store sales growth

-3.3%

Previous: 2.1%-257.1%
Capital Expenditures

-$12.7M

Previous: -$8.26M-53.7%
Free Cash Flow

$612K

Previous: $3.05M-80.0%
Net Income

$13.3M

Previous: $11.3M+17.6%
Operating Income

$22.4M

Previous: $18.9M+18.4%
Gross Profit

$68.9M

Previous: $59.8M+15.2%
Cash & Equivalents

$166M

Previous: $43.5M+281.2%
Total Assets

$395M

Previous: $234M+68.8%
Stock-Based Comp

-$1.6M

Previous: $2.46M-165.2%

Revenue & EPS history

Wingstop · Revenue · Quarterly

$83.8M

Q2 2022+13.2%vs Q2 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Wingstop · $83.8M total across 3 segments · Q2 2022

  • Royalty revenue, franchise fees and other
    $36M+8.8%
  • Advertising fees
    $29M+28.4%
  • Company-owned restaurant sales
    $18.7M+2.5%

Forward guidance

The Company is reiterating guidance for 2022, which is a 53-week fiscal year, and updating its guidance for net system-wide restaurant openings from 220+ to between 220 and 235.

Tailwinds

  • Low-single digit domestic same store sales growth
  • SG&A of between $70.0 - $72.0 million
  • Stock-based compensation expense of between $7.5 - $8.5 million
  • Depreciation and amortization of between $10.5 - $11.5 million
  • Net system-wide restaurant openings between 220 and 235

Headwinds

  • Interest expense of approximately $23.5 million
  • Diluted earnings per share of between $1.55 to $1.57
  • COVID-19 may affect sales and earnings
  • Inflationary pressures may affect sales and earnings
  • Competitive labor market and supply chain challenges may affect sales and earnings

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 2022

Historical avgQ2 2022

+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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