Wingstop Inc (WING, Financial) announced its financial results for the fiscal third quarter ended September 30, 2023, on November 1, 2023. The company reported a significant increase in net income, which grew by 46% to $19.5 million, or $0.65 per diluted share. Adjusted net income and adjusted earnings per diluted share, both non-GAAP measures, increased 53.3% to $20.5 million, or $0.69 per diluted share.
Financial Performance Highlights
Wingstop Inc (WING, Financial) reported a 26.5% increase in system-wide sales, reaching $885.0 million. The company also opened 53 new outlets in the fiscal third quarter of 2023. Domestic same-store sales increased by 15.3%, and digital sales rose to 66.9%. Total revenue increased by 26.4% to $117.1 million.
Commentary on Results
“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. 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 Michael Skipworth, President and Chief Executive Officer. “This consistent growth, coupled with the strength of our unit economics, gives us the confidence in our 2023 global development outlook and our long-term vision of scaling Wingstop into a Top 10 Global Restaurant Brand.”
Financial Outlook for 2023
Based on year-to-date results, Wingstop Inc (WING, Financial) has updated its guidance for 2023. The company now expects approximately 16% domestic same-store sales growth, up from the previous estimate of 10% to 12%. However, the company expects an increase in SG&A expenses, from the previous estimate of $91.0 - $93.0 million to $94.5 - $95.5 million.
Restaurant Development and Dividend Announcement
As of September 30, 2023, there were 2,099 Wingstop restaurants system-wide. This included 1,837 restaurants in the United States, of which 1,791 were franchised restaurants and 46 were company-owned, and 262 franchised restaurants were in international markets. During the fiscal third quarter 2023, there were 53 net system-wide Wingstop restaurant openings.
In recognition of the Company’s strong cash flow generation and commitment to returning value to stockholders, the board of directors approved a quarterly dividend payable to Wingstop stockholders of $0.22 per share of common stock, resulting in a total dividend of approximately $6.5 million. This dividend will be paid on December 8, 2023 to stockholders of record as of November 17, 2023.
Explore the complete 8-K earnings release (here) from Wingstop Inc for further details.
