Wingstop financial report for second quarter

American brand Wingstop – famous for its chicken wings – has reported second quarter financial results as followings:

System-wide sales increased 7.5% to $633.6 million.
67 net new openings in the fiscal second quarter 2022.
Domestic restaurant average unit sales volume of $1.6 million.
Digital sales of 60.5% of sales.
Total revenue increased 13.2% to $83.8 million from $74 million.
Adjusted EBITDA increased 3.4% to $23.7 million vs. $22.9 in the prior year.
Royalty revenue, franchise fees and other increased $2.9 million primarily due to 229 net franchise restaurants openings since June 2021.
Increase in revenue partially offset by a decline in domestic same store sales of 3.3%.
Advertising fees increase $6.4 million resulting from the increase in national advertising fund contribution from 4% to 5%.
Company owned units increase in system sales by $0.5 million mostly driven by 6 new units vs. prior year and partially offset by decrease of 4.9% in same stores sales driven by declining transactions.
Cost of sales increases to $14.9 million from $14.2 million (including $0.2 million of pre-opening expenses) to a total of 78.5% from 77.6% in the prior year.
Labor costs increase has been partially offset by a decrease in food, beverage and packaging costs.
Selling, general and administrative expense decrease to $13.9 million from $16.1 million in prior year mostly by forfeited stock awards in 2022.
Interest expenses increase by $2.3 million (from $3.7 million to $6 million) following the securitized financing transactions on March 2022 which brought outstanding debt to $250 million.
Income tax rate decrease to 18.7% from 25.5%.