Wingstop Q2 2022 Earnings Report
Key Takeaways
Wingstop Inc. announced financial results for the fiscal second quarter ended June 25, 2022, featuring a 7.5% increase in system-wide sales to $633.6 million and 67 net new openings. Total revenue increased 13.2% to $83.8 million, and net income rose 17.6% to $13.3 million, or $0.44 per diluted share. The company reiterated its full-year financial outlook, benefiting from deflation in bone-in wings and proven sales-driving strategies.
System-wide sales increased by 7.5% to $633.6 million.
The company achieved 67 net new restaurant openings.
Total revenue increased by 13.2% to $83.8 million.
Net income increased by 17.6% to $13.3 million, or $0.44 per diluted share.
Wingstop
Wingstop
Wingstop Revenue by Segment
Wingstop Revenue by Geographic Location
Forward Guidance
The Company is reiterating guidance for 2022, which is a 53-week fiscal year, and updating its guidance for net system-wide restaurant openings from 220+ to between 220 and 235.
Positive Outlook
- 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
- Depreciation and amortization of between $10.5 - $11.5 million
- Net system-wide restaurant openings between 220 and 235
Challenges Ahead
- Interest expense of approximately $23.5 million
- Diluted earnings per share of between $1.55 to $1.57
- COVID-19 may affect sales and earnings
- Inflationary pressures may affect sales and earnings
- Competitive labor market and supply chain challenges may affect sales and earnings
Revenue & Expenses
Visualization of income flow from segment revenue to net income