Business

Shares Trade Following Earnings? Wingstop Inc. (NASDAQ: WING)

Oliver Rider 325 Views , 

Wingstop Inc. (NASDAQ: WING) changed 0.63% to recent value of $75.47. The stock transacted 370517 shares during most recent day however it has an average volume of 471.5K shares. It spotted trading -29.75% off 52-week high price. On the other end, the stock has been noted 32.52% away from the low price over the last 52-weeks.

Wingstop Inc. (WING) recently reported financial results for the fiscal third quarter ended September 28, 2019.

Highlights for the fiscal third quarter 2019 contrast to the fiscal third quarter 2018:

  • System-wide sales increased 21.6% to $383.5M
  • Restaurant count increased 10.3% to 1,340 global locations
  • Domestic same store sales increased 12.3%
  • Total revenue increased to $49.9M
  • Net income was $5.9M for the thirteen weeks ended September 28, 2019, contrast to $6.3M in the previous fiscal third quarter
  • Adjusted EBITDA*, a non-GAAP measure, increased 25.8% to $15.4M for the thirteen weeks ended September 28, 2019, contrast to $12.2M in the previous fiscal third quarter

Fiscal third quarter 2019 financial results

Total revenue for the fiscal third quarter 2019 increased to $49.9M from $38.2M in the fiscal third quarter last year.

  • Royalty revenue, franchise fees and other increased $4.1M to $21.9M from $17.8M in the fiscal third quarter of the previous year. The increase was primarilyBecause of 121 net franchise restaurant openings since September 29, 2018 and domestic same store sales growth of 12.3%.
  • Advertising fees and related income increased $5.4M to $14.1M from $8.6M in the fiscal third quarter of the previous year. The increase was primarilyBecause of the increase in the contribution rate to our national advertising fund (the “Ad Fund”) from 3% to 4% of gross sales starting in fiscal year 2019, as well as the 21.6% increase in system-wide sales in the fiscal quarter ended September 28, 2019 contrast to the fiscal quarter ended September 29, 2018.
  • Company-owned restaurant sales increased $2.1M to $13.9M from $11.8M in the fiscal third quarter of the previous year. The increase was primarilyBecause of company-owned same store sales growth of 11.9%, which was primarily driven by a raise in transactions and the acquisition of four franchised restaurants since the previous year comparable period, which resulted in additional sales of $0.7M.

Cost of sales increased to $10.3M from $8.0M in the fiscal third quarter of the previous year. As a percentage of company-owned restaurant sales, cost of sales increased to 74.2% from 67.9%. The increase was driven primarily by a 22.7% increase in the cost of bone-in chicken wings, a raise in the Ad Fund contribution rate from 3% to 4% of gross sales starting in fiscal year 2019, as well as increased third-party delivery fees Because of the completion of the launch of delivery at all company-owned restaurants in the second quarter of 2019. These increases were slightly offset by the increase in company-owned same store sales of 11.9%, which was primarily driven by a raise in transactions.

Advertising expenses increased $4.2M to $12.7M from $8.4M in the fiscal third quarter of the previous year Because of a raise in advertising fees and as a result of a raise in the Ad Fund contribution rate from 3% to 4% of gross sales starting in fiscal year 2019. Advertising expenses are recognized at the same time the related revenue is recognized, which does not necessarily correlate to the actual timing of the related advertising spend.

WING has a gross margin of 78.90% and an operating margin of 22.90% while its profit margin remained 10.60% for the last 12 months. Its earnings per share (EPS) expected to touch remained 17.10% for this year while earning per share for the next 5-years is expected to reach at 11.65%.  The company has 30.21M of outstanding shares and 29.25M shares were floated in the market. According to the most recent quarter its current ratio was 0.9 that represents company’s ability to meet its current financial obligations. The price moved ahead of -8.53% from the mean of 20 days, -12.45% from mean of 50 days SMA and performed -9.85% from mean of 200 days price. Company’s performance for the week was -3.16%, -15.22% for month and YTD performance remained 17.57%.