In This Article:
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Same-Store Sales Growth: 0.5% growth in Q1, despite challenging conditions.
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New Store Openings: Record 126 units opened in Q1.
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Digital Sales: Increased to 72% of total sales.
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Adjusted EBITDA: Increased 18.4% to $59.5 million.
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System-Wide Sales: Increased 15.7% to $1.3 billion.
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Total Revenue: Increased 17.4% to $171 million.
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Company-Owned Restaurant Sales: Increased by $1.5 million with 1.4% same-store sales growth.
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SG&A Expenses: Increased by $6.3 million to $31.4 million.
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Adjusted EPS: $0.99, a 1% increase versus the prior year.
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Share Repurchase: 830,012 shares repurchased at an average price of $257.40 per share.
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Dividend: $0.27 per share, totaling approximately $7.5 million.
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Net New Global Unit Growth Rate: Increased to 16% to 17% for 2025.
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Wingstop Inc (NASDAQ:WING) reported a record opening of 126 new units in the first quarter, showcasing strong development momentum.
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Digital sales increased to 72%, indicating a successful digital transformation strategy.
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Adjusted EBITDA increased by 18.4% to $59.5 million, demonstrating strong financial performance.
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The company launched the Wingstop Smart Kitchen in over 200 restaurants, reducing order times by 50% and improving guest satisfaction.
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Wingstop Inc (NASDAQ:WING) achieved a record level of new guest acquisition in March, driven by the relaunch of crispy chicken tenders.
Negative Points
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Consumer sentiment has dropped to its second lowest level since 1952, affecting the macro environment.
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The company is experiencing a near-term pullback in certain geographic pockets, particularly among Hispanic and lower middle-income consumers.
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Same-store sales growth was only 0.5%, impacted by California fires, severe winter weather, and macroeconomic challenges.
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The company anticipates a same-store sales decline by mid-single digits in the second quarter due to strong prior-year comparisons.
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Increased SG&A expenses by $6.3 million due to investments in long-term growth and nonrecurring system implementation costs.
Q & A Highlights
Q: Can you provide more insight into the comp outlook for 2025, especially given the macro headwinds? A: Michael Skipworth, President and CEO, explained that the first half of the year is expected to be tougher due to strong comparisons from previous years. The company observed a pullback in consumer confidence, particularly in pockets over-indexed to Hispanic and lower-middle-income consumers. However, this is not broad-based, and Wingstop remains confident in its strategies and the underlying health of the business.