Why Wingstop (WING) Shares Are Trading Higher Today - Wingstop (NASDAQ:WING)

Wingstop Inc WING reported second-quarter FY22 sales growth of 13.2% year-on-year, to $83.78 million, missing the analyst consensus estimate of $86.15 million.
System-wide sales increased 7.5% Y/Y to $633.6 million, Domestic same-store sales decreased 3.3% versus last year and increased 30.7% on a three-year basis, and Digital sales were 60.5% of sales, and the restaurant AUV was $.6 million.
Revenue from royalty, franchise fees, and others rose 8.8% Y/Y, Advertising fee revenue increased 28.4%, and company-owned restaurant sales grew 2.5%.
Total costs and expenses expanded 11.4% Y/Y to $61.4 million. The operating margin was 26.7%, and the operating income for the quarter rose 18.4% to $22.4 million.
Wingstop held $182.9 million in cash and equivalents as of June 25, 2022. Adjusted EBITDA of $23.7 million increased 3.4% Y/Y.
Adjusted EPS of $0.44 beat the analyst consensus of $0.36.
The company's board of directors approved a hike in the quarterly dividend to $0.19 per share, which will be paid on September 2, 2022, to stockholders of record as of August 12, 2022.
Outlook: Wingstop sees FY22 EPS of $1.55 - $1.57, above the consensus of $1.53.
Price Action: WING shares are trading higher by 5.34% at $105.00 in premarket on the last check Thursday.
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Wingstop Reports Mixed Q2 Earnings, Issued Upbeat FY22 EPS Outlook