Wingstop (WING) Q2 2024 earnings summary

Executive summary

• System-wide sales grew 45.2% year-over-year to $1.2 billion in Q2 2024, with 73 net new restaurant openings and a total of 2,352 locations worldwide.

• Domestic same-store sales surged 28.7%, primarily driven by transaction growth, and digital sales reached 68.3% of system-wide sales.

• Adjusted EBITDA was $51.8 million, up 50.7% year-over-year, and net income rose 69.9% to $27.5 million ($0.93 per diluted share).

• Domestic AUVs surpassed $2 million, with a new target of $3 million and management seeing potential to triple the U.S. footprint.

• System-wide sales growth fueled increased advertising and brand awareness efforts.

Financial highlights

• Total revenue increased 45.3% year-over-year to $155.7 million in Q2 2024.

• Company-owned restaurant sales reached $29.9 million, up $7.3 million, with 14.1% same-store sales growth.

• Royalty revenues, franchise fees, and other revenue rose by $23.2 million, driven by 300 net franchise openings and 28.7% same-store sales growth.

• Operating income for Q2 2024 was $41.2 million, up 55.8% year-over-year.

• Earnings per diluted share were $0.93, a 70% increase year-over-year.

Outlook and guidance

• Raised 2024 domestic same-store sales growth guidance to approximately 20%, up from low double digits.

• Increased net new restaurant outlook to 285–300 for 2024, up from 275–295.

• SG&A guidance raised to $114–116 million, including $20 million in stock-based compensation.

• Management expects cash flows from operations and available borrowings to be sufficient for capital needs and debt service for at least the next twelve months.

• No material changes to critical accounting policies or estimates since the last annual report.