Restaurant Chain Wingstop's Stock On Fire As Domestic Comps Growth Streak Continues: Here's Details

Wingstop Inc WING reported third-quarter FY23 sales growth of 26.4% year-on-year to $117.1 million, beating the analyst consensus estimate of $109.08 million.

System-wide sales increased 26.5% Y/Y to $885 million, Domestic same-store sales increased 15.3% versus last year, and Digital sales increased to 66.9%. Domestic restaurant AUVs increased to $1.8 million.

Revenue from royalty, franchise fees, and others rose 31.8% Y/Y, Advertising fee revenue increased 24.3%, and company-owned restaurant sales grew 18.8%.

Total costs and expenses expanded 26% Y/Y to $86.5 million. The operating margin was 26.2%, and the operating income for the quarter gained 27.3% to $30.6 million.

Adjusted EBITDA of $38.5 million increased 36.7% Y/Y.

Adjusted EPS of $0.69 beat the analyst consensus estimate of $0.52.

Wingstop held $89.4 million in cash and equivalents as of September 30, 2023.

The company's board of directors approved a quarterly dividend of $0.22 per share, which will be paid on December 8, 2023, to stockholders of record as of November 17, 2023.

Outlook: Wingstop raised its FY23 domestic same-store sales growth outlook to about 16% from the previous 10% - 12% growth. WING reiterated its 2023 forecast for 240 - 250 global net new units.

Price Action: WING shares are trading higher by 6.22% at $194.14 on the last check Wednesday.