Wingstop 2Q Profit, Revenue Rise on New Stores, Lower Costs

Dow Jones
07/29
 

Wingstop said revenue and earnings rose in the second quarter thanks to its development of new franchises and lower costs, offsetting another lukewarm period of consumer spending.

The chicken wing chain posted a profit of $31.3 million, or $1.15 a share, up from $26.8 million, or 96 cents a share, in the same quarter a year earlier.

Stripping out one-time items, adjusted earnings were $1.18 a share. Analysts polled by FactSet had been expecting $1.02 a share.

Revenue rose 6.4% to $185.6 million, coming in shy of analyst projections for $190.3 million.

The company said domestic same-store sales were down 7.5% for the quarter due to ongoing pressure on consumer spending. But net new franchise development pushed the top line higher.

Wingstop said it now expects domestic same-store sales to fall 4% to 6% for the full year, giving some hard numbers to its previous outlook that the metric would decline in the low-single-digits.

Shares rose 4.6% to $141.02 in premarket trading.

 
 

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