Wingstop Stock Slides On Q3 Earnings Miss

Wingstop Inc WING reported third-quarter FY21 revenue growth of 2.8% year-on-year, to $65.78 million, missing the analyst consensus of $74.50 million.
System-wide sales increased 16.7% Y/Y to $594.3 million. Domestic same-store sales increased 3.9% or 29.3% on a two-year basis.
Revenue from royalty, franchise fees rose 13.9% Y/Y, advertising fee revenue declined 20.7%, and company-owned restaurant sales grew 11.9%.
Total costs and expenses contracted 9.5% Y/Y to $44.9 million. The operating margin was 31.6%, and operating income for the quarter rose 45.6% to $20.8 million.
The company held $53.5 million in cash and equivalents as of September 25, 2021.
Adjusted EBITDA of $21.4 million increased 16.2% Y/Y.
Adjusted EPS of $0.29 missed the analyst consensus of $0.35.
The company's quarterly dividend of $0.17 per share of common stock is payable on December 10, 2021, to stockholders of record as of November 19, 2021.
Outlook: Wingstop expects FY21 domestic same-store sales growth of 7-8%.
Price Action: WING shares are trading lower by 10.6% at $150.50 on the last check Wednesday.

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