Wingstop Q1 Results Exceed Street Expectations

Wingstop Inc WING reported first-quarter FY23 revenue growth of 42.7% year-on-year to $108.72 million, beating the consensus of $99.42 million.
Adjusted EPS improved to $0.59 from $0.33 in 1Q22, beating the consensus of $0.45.
System-wide sales increased 30.4% Y/Y to $821.6 million, Domestic same-store sales increased 20.1% versus last year, and Digital sales increased 65.2%. Domestic restaurant AUV was $1.7 million.
Royalty revenue, franchise fees, and others increased by $13.1 million, reflecting domestic same-store sales growth of 20.1% and 199 net franchise restaurant openings since March 26, 2022.
Adjusted EBITDA increased 59.8% Y/Y to $34.6 million.
Operating margin was 23.6%, up by 182 bps, and the operating income for the quarter jumped 54.6% YY to $25.67 million.
Wingstop held $209.5 million in cash and equivalents as of April 1, 2023.
Dividend: WIND declared a quarterly dividend of $0.19 per share, payable on June 9, 2023, to stockholders of record as of May 19, 2023.
As of April 1, 2023, there were 1,996 Wingstop restaurants system-wide. With 1,753 restaurants and 243 franchised restaurants in international markets.
FY23 Outlook: Wingstop expects high-single-digit domestic same-store sales growth.
WING continues to expect about 240 global net new units in 2023.
Also Read: Don Lemon-Pepper? Rick Ross Trolls Fired CNN Host, Offers Him A Job At Wingstop
Price Action: WING shares are trading higher by 7.12% at $213.51 on the last check Wednesday.

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