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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%.

 

Wingstop currently operates 1850 units across the world, with 1600+ franchised in the US and 200+ internationally and just about 40 company owned. 

 

The brand forecast for the 2022 provides for:

 

  • Single digit same stores sales growth for the domestic market.
  • Selling, general and administrative expenses of $70-$72 million.
  • Depreciation and amortization of $10.5-$11.5 million.
  • Interest expense of about $23.5 million.
  • Increase in the quarterly payable dividend from $0.17 to $0.19 per share of common stock for a total dividend of $5.7million.
  • Net openings forecast increase from 220+ to between 200 and 235.

Read more on:

https://finance.yahoo.com/news/wingstop-inc-reports-fiscal-second-120100943.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuYmluZy5jb20v&guce_referrer_sig=AQAAAM1xl1ZZyngj1TRpVPlqdZKIrCJ4ow_N0fNYL3y54V3MstqraM4yW0boTt71Vws53xlHw07sOgFYiZtAughD3WIPx_7r6DVO3NjzMWY_TAoinscfL1NbxlfnfT9SKYYtMK0B2-1XKOjA_wJBG9xX9aUPtnKh_gQFNpZ7uaWS01Pj

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