© Reuters. Wingstop (WING) shares jump after topping Q3 estimates on ‘underlying momentum’
Wingstop (NASDAQ:) shares popped more than 4% ahead of the open on Wednesday after earnings for its third quarter topped consensus expectations.
The fast food company beat earnings and revenue estimates by a solid margin, with its Q3 EPS of $0.69 being $0.17 better than the analysts’ estimate of $0.52. Revenue for the quarter came in at $117.1 million, up 26.4% YoY and well above the consensus estimate of $109.27 million.
Net earnings rose by 53.3% compared to the previous year, while system-wide sales rose 26.5% to $885.0 million. Domestic same-store sales grew by 15.3%, while the company’s digital sales jumped 66.9%.
“Our third quarter results showcase the multi-year strategies we are executing against, delivering 15.3% domestic same-store sales growth in the quarter, primarily driven by transaction growth,” said Michael Skipworth, WING’s President and CEO. “We are measuring record levels in brand health metrics, demonstrating the underlying momentum at Wingstop, and putting us on a path to deliver our 20th consecutive year of domestic same-store sales growth,” said
Looking forward, WING now sees full-year 2023, approximately 16% in domestic same-store sales growth, above the previous guidance range of 10% to 12%. The company still expects to open 240 to 250 global net new units during the full year.
WING approved a quarterly dividend of $0.22 per share, resulting in a total dividend of approximately $6.5 million.
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