Stock Monitor: Good Times Restaurants Post Earnings Reporting
LONDON, UK / ACCESSWIRE / December 15, 2017 / Active-Investors free earnings report on Wingstop Inc. (NASDAQ: WING) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=WING. Wingstop reported its third quarter fiscal 2017 operating results on November 02, 2017. The restaurant chain outperformed top- and bottom-line expectations and confirmed its guidance for FY17. Register today and get free access to our complimentary member's area where many more reports are available:
Active-Investors.com is currently working on the research report for Good Times Restaurants, Inc. (NASDAQ: GTIM), which also belongs to the Services sector as the Company Wingstop. Do not miss out and become a member today for free to access this upcoming report at:
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Earnings Highlights and Summary
For the period ended September 30, 2017, Wingstop's total revenue jumped 19.3% to $26.0 million from $21.8 million in Q3 2016. The Company's revenue numbers beat analysts' estimates of $25 million.
Wingstop's cost of sales increased to $7.8 million in Q3 2017 from $6.1 million in Q3 2016. As a percentage of company-owned restaurant sales, the Company's cost of sales increased to 80.9% from 74.7% in the year ago same period. The increase was driven primarily by a 41.3% increase in commodity rates for bone-in chicken wings as compared to the prior year's corresponding period.
For Q3 2017, Wingstop's selling, general, and administrative expenses (SG&A) decreased 8.4% to $8.1 million compared to $8.9 million in Q3 2016, due to a decrease in nonrecurring costs of $1.4 million related to the refinancing of the Company's credit agreement and subsequent dividend payout, which occurred in Q3 2016.
During Q3 2017, Wingstop's net income advanced to $5.0 million, or $0.17 per diluted share, compared to net income of $2.8 million, or $0.09 per diluted share, in Q3 2016. The Company's adjusted net income increased 34.3% to $5.0 million, or $0.17 per diluted share, compared to $3.7 million, or $0.13 per diluted share, in the prior year's same quarter, and came in ahead of Wall Street's estimates of $0.15 per share.
During Q3 2017, Wingstop's royalty revenue and franchise fees increased $2.7 million to $16.4 million from $13.7 million in Q3 2016. The growth was attributed to a 14.6% increase in the number of franchised restaurants and domestic same store sales growth of 4.1%. The Company's other revenue increased $0.7 million on a y-o-y basis, primarily due to an increase in vendor rebates compared to the prior year's same period.
For Q3 2017, Wingstop's company-owned restaurant sales increased $1.5 million to $9.7 million from $8.2 million in Q3 2016, as a result of the acquisition of two restaurants from a franchisee in July 2017 resulting in sales of $0.8 million, Company-owned domestic same store sales growth of 5.5%, and the opening of one company-owned restaurant in December 2016.
As of September 30, 2017, there were 1,088 Wingstop's restaurants system-wide. This included 994 restaurants in the United States, of which 971 were franchised restaurants and 23 were Company-owned. Wingstop's international presence consisted of 94 franchised restaurants across seven countries. During Q3 2017, there were 32 net system-wide Wingstop's restaurants opened, including 5 international franchised locations.
Quarterly Dividend Program
Wingstop's Board of Directors has authorized and declared a quarterly dividend of $0.07 per share of common stock, totaling approximately $2.0 million. This dividend will be paid on December 19, 2017, to shareholders of record as of December 04, 2017.
Fiscal Year 2017 Financial Outlook
Wingstop confirmed its financial outlook for the fiscal year ending December 30, 2017. The Company is forecasting System-wide unit growth of approximately 13% to 15% and low single digit domestic same store sales growth. Wingstop is projecting net income for FY17 to be in the range of $20.9 million to $21.2 million, and fully diluted EPS growth of 23% to 25%, which reflects 29.3 million diluted shares outstanding, over 2016 adjusted earnings per diluted share of $0.58, and adjusted EBITDA growth of 13% to 15%.
Stock Performance Snapshot
December 14, 2017 - At Thursday's closing bell, Wingstop's stock dropped 2.76%, ending the trading session at $41.54.
Volume traded for the day: 564.77 thousand shares, which was above the 3-month average volume of 519.54 thousand shares.
Stock performance in the last month – up 4.66%; previous three-month period – up 22.97%; past twelve-month period – up 31.33%; and year-to-date – up 40.39%
After yesterday's close, Wingstop's market cap was at $1.21 billion.
Price to Earnings (P/E) ratio was at 57.61.
The stock has a dividend yield of 0.67%.
The stock is part of the Services sector, categorized under the Restaurants industry.
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