Quick-food chain Wingstop (NASDAQ:)
reported outcomes forward of analysts’ expectations in Q1 CY2024, with income up 34.1% 12 months on 12 months to $145.8 million. It made a non-GAAP revenue of $0.98 per share, enhancing from its revenue of $0.59 per share in the identical quarter final 12 months.
Is now the time to purchase Wingstop? Discover out by studying the unique article on StockStory, it is free.
Wingstop (WING) Q1 CY2024 Highlights:
- Income: $145.8 million vs analyst estimates of $136 million (7.2% beat)
- EPS (non-GAAP): $0.98 vs analyst estimates of $0.77 (28.1% beat)
- Gross Margin (GAAP): 48.9%, up from 48.2% in the identical quarter final 12 months
- Similar-Retailer Gross sales have been up 21.6% 12 months on 12 months
- Retailer Areas: 2,279 at quarter finish, rising by 283 over the past 12 months
- Market Capitalization: $11.3 billion
The fervour mission of two hen wing aficionados in Texas, Wingstop (NASDAQ:WING) is a well-liked fast-food chain recognized for its flavorful and crispy hen wings supplied in quite a lot of sauces and seasonings.
Fashionable Quick FoodModern quick meals is a comparatively newer class representing a center floor between conventional quick meals and sit-down eating places. These institutions function an expanded menu choice priced above conventional quick meals choices, typically incorporating more energizing and cleaner elements to serve clients prioritizing high quality. These eateries are capitalizing on the notion that your drive-through burger and fries joint is detrimental to your well being due to inferior elements.
Gross sales GrowthWingstop is a small restaurant chain, which typically brings disadvantages in comparison with bigger opponents benefitting from higher model consciousness and economies of scale. However, one benefit is that its progress charges may be larger as a result of it is rising off a small base.
take away adverts
.
As you’ll be able to see beneath, the corporate’s annualized income progress price of 24.9% over the past 5 years was unimaginable because it added extra eating areas and elevated gross sales at present, established eating places.
This quarter, Wingstop reported great year-on-year income progress of 34.1%, and its $145.8 million in income exceeded Wall Avenue’s estimates by 7.2%. Wanting forward, Wall Avenue expects gross sales to develop 17.2% over the subsequent 12 months, a deceleration from this quarter.
Similar-Retailer SalesWingstop’s demand has been spectacular for a restaurant enterprise over the past eight quarters. On common, the corporate has grown its same-store gross sales by a powerful 13.4% 12 months on 12 months. This efficiency provides it the boldness to quickly open new eating places. When an organization has sturdy demand, extra areas ought to assist it attain extra clients looking for its meals and increase income progress.
Within the newest quarter, Wingstop’s same-store gross sales rose 21.6% 12 months on 12 months. This progress was according to the 20.1% year-on-year improve it posted 12 months in the past.
Key Takeaways from Wingstop’s Q1 Outcomes
We have been impressed by how considerably Wingstop blew previous analysts’ income, gross margin, EBITDA, and EPS expectations this quarter. These beats have been pushed by its same-store gross sales progress of 21.6%, which crushed Wall Avenue’s forecast of 12.7%. Administration famous most of its progress got here from elevated transactions, not value, which could be very encouraging. The corporate additionally opened extra eating places than anticipated within the quarter, a tailwind for its income progress.
Wanting forward, Wingstop’s low double-digit same-store gross sales progress steerage for the complete 12 months additionally exceeded estimates, and it declared a dividend of $0.22 per share, payable on June 7, 2024 to stockholders of file as of Might 17, 2024. Zooming out, we predict this was a unbelievable quarter that ought to have shareholders cheering. The inventory is up 2.2% after reporting and at present trades at $393.21 per share.
take away adverts
.
