Wingstop (WING) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered industry-leading results with 20.9% domestic same-store sales growth, 106 net new openings, and system-wide sales up 39.4% to $1.2 billion, marking the 21st consecutive year of positive comps.

• Average unit volumes (AUVs) surpassed $2.1 million, up from $1.8 million a year ago, fueling strong cash flows and record demand for new restaurant development.

• Digital sales accounted for 69% of system-wide sales, with the first-party database growing over 35% year-over-year.

• Net income increased 31.9% to $25.7 million ($0.88 per diluted share); adjusted EBITDA rose 39.5% to $53.7 million.

• International expansion accelerated, with new markets signed in France, Gulf Coast countries, and Australia, aggregating to a long-term opportunity of over 750 restaurants.

Financial highlights

• Total Q3 revenue increased 38.8% year-over-year to $162.5 million, driven by royalty revenues, franchise fees, and company-owned restaurant sales.

• Adjusted EBITDA rose 39.5% to $53.7 million; diluted EPS increased 35.4% to $0.88.

• Company-owned restaurant sales reached $31.3 million, up 30.8% year-over-year, with a 7.3% same-store sales increase.

• Royalty revenue, franchise fees, and other increased 39.8% to $74.4 million; advertising fees rose 42.1% to $56.8 million.

• Operating income for Q3 was $39.8 million, up 29.9% year-over-year.

Outlook and guidance

• Reiterated 2024 domestic same-store sales growth guidance of approximately 20%.

• Raised net new restaurant opening target for 2024 to 320–330, up from 285–300.

• Updated SG&A guidance to $117.5–$118.5 million, reflecting higher stock-based compensation due to performance.

• Food costs expected to remain in the mid-30% range into 2025, with continued supply chain strategy execution.

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