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Jun 29, 2024
Wingstop Q2 2024 Earnings Report
Wingstop's Q2 2024 financial performance was marked by significant growth.
Key Takeaways
Wingstop Inc. reported a strong fiscal second quarter 2024, with a 45.2% increase in system-wide sales, a 28.7% increase in domestic same store sales, and 73 net new restaurant openings. Total revenue increased by 45.3% to $155.7 million, and net income increased by 69.9% to $27.5 million.
System-wide sales increased by 45.2% to $1.2 billion.
Domestic same store sales increased by 28.7%, driven primarily by transaction growth.
Domestic restaurant AUV increased to $2.0 million.
The company had 73 net new openings in the fiscal second quarter 2024.
Wingstop
Wingstop
Wingstop Revenue by Segment
Wingstop Revenue by Geographic Location
Revenue by Segment
Royalties & Fees Revenue
CapyFin.comAdvertising Fees Revenue
CapyFin.comCompany Restaurant Sales Revenue
CapyFin.comRevenue by Geographic Location
System-wide Sales Revenue
CapyFin.com Forward Guidance
Wingstop provided updated guidance for 2024, including approximately 20% domestic same store sales growth, 285 to 300 global net new units, and SG&A expense of between $114 - $116 million. The company reiterated guidance for depreciation and amortization of between $18 - $19 million, and stock-based compensation expense of approximately $20 million.
Positive Outlook
- Approximately 20% domestic same store sales growth, previously low double digits.
- 285 to 300 global net new units, previously 275 to 295.
- Depreciation and amortization of between $18 - $19 million.
- Stock-based compensation expense of approximately $20 million.
- Strong cash flow generation and commitment to returning value to stockholders.
Challenges Ahead
- SG&A expense of between $114 - $116 million, previously $111 million.
- Increase in the cost of bone-in chicken wings impacted cost of sales.
- Increase in SG&A expense due to headcount-related expenses.
- Increase in incentive compensation and performance-based stock compensation expense.
- Increase in consulting and other professional fees associated with strategic initiatives.
Revenue & Expenses
Visualization of income flow from segment revenue to net income