Wingstop Q3 2022 Earnings Report
Key Takeaways
Wingstop Inc. reported a system-wide sales increase of 17.7% to $699.6 million, driven by a 6.9% increase in domestic same store sales. The company opened 40 net new restaurants and saw total revenue rise by 40.9% to $92.7 million. Net income increased by 18.4% to $13.4 million, or $0.45 per diluted share, while adjusted EPS also reached $0.45.
System-wide sales increased by 17.7% reaching $699.6 million.
Domestic same store sales grew by 6.9%.
Total revenue increased by 40.9% to $92.7 million.
Net income increased by 18.4% to $13.4 million, with EPS at $0.45.
Wingstop
Wingstop
Wingstop Revenue by Segment
Wingstop Revenue by Geographic Location
Forward Guidance
The Company is increasing guidance for diluted earnings per share to between $1.61 and $1.63, previously between $1.55 to $1.57. Additionally, the Company expects the following for the fiscal year ended December 31, 2022: •Low-single digit domestic same store sales growth; •Net system-wide restaurant openings of between 225 - 235, previously between 220 - 235 •SG&A of between $68.5 - $70.5 million, previously between $70.0 - $72.0 million; •Stock-based compensation expense of approximately $6.0 million, previously $7.5 - 8.5 million; •Depreciation and amortization of between $10.5 - $11.5 million; and •Interest expense of approximately $22.5 million, previously $23.5 million.
Positive Outlook
- Diluted earnings per share guidance increased to between $1.61 and $1.63.
- Net system-wide restaurant openings expected to be between 225 - 235.
- SG&A expected to be between $68.5 - $70.5 million.
- Stock-based compensation expense of approximately $6.0 million.
- Depreciation and amortization of between $10.5 - $11.5 million.
Challenges Ahead
- Low-single digit domestic same store sales growth expected.
- Interest expense of approximately $22.5 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income