Wingstop beats as same-store sales surge (WING)

pulse

May 3, 2018 9:47 PM

Wingstop beats on earnings, delivering $0.25 per share compared to analysts' estimates of $0.19 per share. The fast food chain also reported same store sales growth of 9.5%, starting off 2018 strong after battling high chicken wing costs last year.

Global sales increased 20.4% compared to the first-quarter of 2017.
Same store sales increased 9.5%.

Wingstop beat on both the top and bottom lines for the first quarter, but shares are little changed following the results.

The wing chain reported adjusted earnings of $0.25 a share, topping the Bloomberg consensus estimate of $0.19. Revenue came in at $37.4 million compared to the $36.28 million that was expected. Global sales grew 20.4% to $313 million.

Last year, the company faced one of the most difficult years in its 23-year histry as wing prices reached record highs. The high costs, combined with conservative spending by its main customer base, lower-middle income Americans, led to a rise in traders betting against the stock. Still, the company managed to end the year with positive same-store sales growth. The first-quarter of 2018, continued the positive trend, with same-store sales surging 9.5%.

Wingstop management reiterated previous guidance for fiscal-year 2018 which includes low single-digit same store sales growth in the domestic market and adjusted EBITDA growth of 13%-15%. The Dallas-based chicken-wing chain is also in the process of finding a new Chief Marketing Officer after Flynn Dekker resigned in March.

Wingstop shares are up more than 69% this year.

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