Wingstop Stock Jumps On Solid Q3, Raised FY22 EPS Outlook

Wingstop In WING reported third-quarter FY22 sales growth of 40.9% year-on-year to $92.67 million, beating the consensus of $89.46 million.
System-wide sales increased 17.7% Y/Y to $699.6 million, Domestic same-store sales increased 6.9% versus last year, and Digital sales were 62% of sales. Domestic restaurant AUV was $1.6 million.
Revenue from royalty, franchise fees, and others rose 23% Y/Y, Advertising fee revenue increased 106.4%, and company-owned restaurant sales grew 16%.
Total costs and expenses expanded 52.6% Y/Y to $68.6 million. The operating margin was 25.9%, and the operating income for the quarter rose 15.6% to $24.1 million.
Wingstop held $186.7 million in cash and equivalents as of September 24, 2022. Adjusted EBITDA of $28.4 million increased 32.7% Y/Y.
Adjusted EPS of $0.45 beat the analyst consensus of $0.36.
The company's board of directors approved a quarterly dividend of $0.19 per share, which will be paid on December 2, 2022, to stockholders of record as of November 11, 2022.
Outlook: Wingstop raised FY22 EPS guidance to $1.61 - $1.63 from $1.55 - $1.57, above the consensus of $1.58.
It sees low-single digit domestic same store sales growth.
It expects net system-wide restaurant openings of between 225 – 235.
Price Action: WING shares are trading higher by 15.9% at $156.25 on the last check Wednesday.
Photo Via Wikimedia Commons

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