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Mar 26, 2022

Wingstop Q1 2022 Earnings Report

Wingstop reported fiscal first quarter financial results, with system-wide sales increasing and raising full year unit guidance.

Key Takeaways

Wingstop Inc. announced financial results for the fiscal first quarter ended March 26, 2022. System-wide sales increased 12.7% to $630.0 million and the company had 60 net new openings. Total revenue increased 7.8% to $76.2 million. The company is raising its net new unit guidance for the full year to 220+.

System-wide sales increased 12.7% to $630.0 million.

60 net new openings in the fiscal first quarter 2022, an increase of 13.4%.

Domestic same-store sales increased 1.2%.

Total revenue increased 7.8% to $76.2 million.

Total Revenue
$76.2M
Previous year: $70.7M
+7.8%
EPS
$0.34
Previous year: $0.44
-22.7%
System-wide sales
$630M
Previous year: $559M
+12.7%
Domestic SSSG
1.2%
Previous year: 20.7%
-94.2%
Gross Profit
$37.4M
Previous year: $35.4M
+5.6%
Cash and Equivalents
$287M
Previous year: $40M
+617.7%
Free Cash Flow
$14.1M
Previous year: $10.9M
+28.6%
Total Assets
$507M
Previous year: $218M
+132.9%

Wingstop

Wingstop

Wingstop Revenue by Segment

Wingstop Revenue by Geographic Location

Forward Guidance

The Company is providing updated guidance for 2022, which is a 53-week fiscal year:

Positive Outlook

  • 220+ net new units, which assumes no additional delays in supply chain availability.
  • Low-single digit domestic same store sales growth.
  • SG&A of between $70.0 - $72.0 million.
  • Stock-based compensation expense of between $7.5 - $8.5 million.
  • Diluted earnings per share of between $1.55 to $1.57.

Challenges Ahead

  • The company's ability to achieve or maintain sales and earnings may be affected by COVID-19 related factors.
  • The length of time that the pandemic continues.
  • The inability of workers, including third party delivery drivers, to work due to illness, quarantine, or government mandates.
  • Temporary store closures due to reduced workforces or government mandates.
  • Competitive labor market.

Revenue & Expenses

Visualization of income flow from segment revenue to net income