Wingstop Stock Soars on Upgraded Same-Store Sales Growth Forecast and Q2 Revenue Beat

Wingstop shares saw a significant increase in premarket trading on Wednesday following the release of their Q2 earnings, which exceeded analyst expectations.

The restaurant chain reported earnings per share (EPS) of $0.93 for the quarter, surpassing the consensus estimate of $0.82. Revenue for the period reached $155.7 million, also beating analysts’ projections of $145.11 million. As a result, Wingstop stock experienced a jump of more than 4%.

The company announced an adjusted EBITDA of $51.8 million, reflecting a remarkable 51% year-over-year increase, compared to the estimated $46.7 million. Furthermore, domestic same-store sales growth reached 28.7%, well above the expected 19.6%.

Based on its year-to-date performance, Wingstop has adjusted its guidance for 2024. The company now anticipates domestic same-store sales growth of approximately 20%, an upward revision from the previous low double-digit forecasts. The expected global net new units has been updated to between 285 and 300, increased from the earlier estimate of 275 to 295. Moreover, SG&A expenses are projected to range from $114 million to $116 million, higher than the earlier estimate of $111 million.

Wingstop is also reaffirming its guidance for 2024, estimating depreciation and amortization expenses to be between $18 million and $19 million, with stock-based compensation expenses expected to be around $20 million.

Michael Skipworth, President and Chief Executive Officer, stated, “Due to the strength and staying power of our multi-year strategies, we believe we have line of sight to a new AUV target of $3.0 million.”