Wingstop Inc. ( (WING) ) has realeased its Q3 earnings. Here is a breakdown of the information Wingstop Inc. presented to its investors.
Wingstop Inc., a renowned player in the restaurant industry, is known for its specialty in serving a variety of chicken wings and operates over 2,450 locations worldwide.
In its fiscal third quarter of 2024, Wingstop Inc. reported substantial growth with a record 106 net new restaurant openings and a 17.1% increase in system-wide unit growth. The company’s domestic same-store sales rose by 20.9%, attributed mainly to increased customer transactions.
The financial highlights of the quarter included a 39.4% increase in system-wide sales to $1.2 billion, with total revenue climbing to $162.5 million, marking a 38.8% growth from the previous year. The company also saw a 31.9% rise in net income, amounting to $25.7 million, and a significant increase in digital sales, which now comprise 69% of total system-wide sales.
Wingstop’s strategic expansion and enhanced digital sales have positioned the company for continued growth. Its adjusted EBITDA saw a 39.5% increase, reaching $53.7 million. Despite rising costs, particularly in food and packaging, the company maintained strong financial health, bolstered by increased advertising revenue and a boost in domestic average unit volume.
Looking forward, Wingstop’s management remains optimistic, reiterating their guidance for continued growth in domestic same-store sales and global unit expansion. The company aims to open 320 to 330 new units globally by the end of the fiscal year, highlighting its ambitious growth trajectory.
