NASDAQ$WING

Wingstop Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Wingstop's Q2 2024 financial performance was marked by significant growth.

Wingstop Inc. reported a strong fiscal second quarter 2024, with a 45.2% increase in system-wide sales, a 28.7% increase in domestic same store sales, and 73 net new restaurant openings. Total revenue increased by 45.3% to $155.7 million, and net income increased by 69.9% to $27.5 million.

  • System-wide sales increased by 45.2% to $1.2 billion.
  • Domestic same store sales increased by 28.7%, driven primarily by transaction growth.
  • Domestic restaurant AUV increased to $2.0 million.
  • The company had 73 net new openings in the fiscal second quarter 2024.

Headline financials

Total Revenue

$156M

Previous: $107M+45.3%
EPS (adj)

$0.93

Previous: $0.57+63.2%
Capital Expenditures

-$21.5M

Previous: -$17M-26.2%
Free Cash Flow

$6.03M

Previous: -$821K+834.0%
Net Income

$27.5M

Previous: $16.2M+69.9%
Operating Income

$41.2M

Previous: $26.5M+55.8%
Gross Profit

$133M

Previous: $90.5M+46.9%
Cash & Equivalents

$96.7M

Previous: $189M-48.7%
Total Assets

$452M

Previous: $451M+0.1%
Stock-Based Comp

$4.93M

Previous: $3.55M+38.9%

Revenue & EPS history

Wingstop · Revenue · Quarterly

$156M

Q2 2024+45.3%vs Q2 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Wingstop · $117M total across 3 segments · Q3 2023

  • Royalty revenue, franchise fees and other
    $53.2M+31.8%
  • Advertising fees
    $40M+24.3%
  • Company-owned restaurant sales
    $24M+18.8%

Forward guidance

Wingstop provided updated guidance for 2024, including approximately 20% domestic same store sales growth, 285 to 300 global net new units, and SG&A expense of between $114 - $116 million. The company reiterated guidance for depreciation and amortization of between $18 - $19 million, and stock-based compensation expense of approximately $20 million.

Tailwinds

  • Approximately 20% domestic same store sales growth, previously low double digits.
  • 285 to 300 global net new units, previously 275 to 295.
  • Depreciation and amortization of between $18 - $19 million.
  • Stock-based compensation expense of approximately $20 million.
  • Strong cash flow generation and commitment to returning value to stockholders.

Headwinds

  • SG&A expense of between $114 - $116 million, previously $111 million.
  • Increase in the cost of bone-in chicken wings impacted cost of sales.
  • Increase in SG&A expense due to headcount-related expenses.
  • Increase in incentive compensation and performance-based stock compensation expense.
  • Increase in consulting and other professional fees associated with strategic initiatives.

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 2024

Historical avgQ2 2024

+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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