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Wingstop Drops on Earnings Beat, Revenue Miss

Joseph Lu

Wingstop Inc. WING just released its 2016 fourth quarter financial results, posting earnings of $0.15 per share and revenues of $24.8 million.

Currently, Wingstop is a Zacks Rank #1 (Strong Buy) and is down 1.3% to $25.65 per share in trading shortly after its earnings report was released.

Beat earnings estimates. The company posted earnings of $0.15 per share, beating the Zacks Consensus Estimate of $0.14 per share.

Missed revenue estimates. The company saw revenue figures of $24.8 million, missing our consensus estimate $25 million.

Wingstop had 153 net opening in fiscal 2016, an increase of 15% from fiscal 2015. While the company increased their presence in the market, their domestic same-store sales also went up 3.2%. Though the company missed our Zacks Consensus Estimates for revenue, it was still an increase of 20.3% from the same period a year ago.

For fiscal year of 2017, Wingstop looks to achieve:

  • System wide unit growth of approximately 13% to 15%
  • Low single digit domestic same-stores sales growth
  • Net income between $18.5 million and 18.8 million
  • Fully diluted EPS growth of 8% to 10%, which reflects 29.3 million diluted shares outstanding, over 2016 adjusted earnings per diluted share of $0.58

“2016 was an incredibly productive year at Wingstop as we executed on our key strategic and financial objectives and delivered exceptionally strong results for our shareholders,” said President and Chief Executive Officer Charlie Morrison. “We have now passed the 1,000 restaurant milestone, reflecting yet another step toward our goal of 2,500+ domestic restaurants and living out our mission to Serve the World Flavor.”

Here’s a graph that looks at Wingstop:

Wingstop Inc. Price and Consensus

Wingstop Inc. Price and Consensus | Wingstop Inc. Quote

Wingstop Inc. franchises and operates restaurants. The Company’s operating segment consists of Franchise segment and Company segment. It offers cooked-to-order, hand-sauced and tossed chicken wings. Wingstop Inc. is headquartered in Dallas, Texas

Check back later for our full analysis on Wingstop’s earnings report!

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