Wingstop Q1 Earnings Miss Estimates; Forecasts FY22 EPS Above Street View

Wingstop Inc WING reported first-quarter FY22 sales growth of 7.8% year-on-year to $76.21 million, missing the consensus of $85.59 million.
System-wide sales increased 12.7% Y/Y to $630 million. Domestic same-store sales increased 1.2% versus last year or 31.8% on a three-year basis.
Revenue from royalty, franchise fees, and others rose 10.9% Y/Y, Advertising fee revenue increased 4.7%, and company-owned restaurant sales grew 5.9%.
Total costs and expenses expanded 17.1% Y/Y to $59.6 million. Operating margin was 21.8%, and operating income for the quarter declined 16.1% to $16.6 million.
The company held $297.3 million in cash and equivalents as of March 26, 2022.
Adjusted EBITDA of $22.1 million decreased 7.5% Y/Y.
Adjusted EPS of $0.34 missed the analyst consensus of $0.40.
The company's quarterly dividend of $0.17 per share will be paid on June 10, 2022, to stockholders of record as of May 20, 2022.
Outlook: Wingstop sees FY22 EPS of $1.55 - $1.57, above the consensus of $1.54.
Price Action: WING shares are trading higher by 6.72% at $95.16 on the last check Wednesday.

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