Wingstop (WING) Q4 2024 earnings summary

Executive summary

• Achieved record top- and bottom-line results in 2024, with 21 consecutive years of same-store sales growth and a 19.9% increase in 2024.

• Opened a record 349 net new restaurants, representing 15.8% unit growth and expanding system-wide sales by 36.8% to $4.8 billion.

• Digital sales mix reached over 70%, with the digital database surpassing 50 million customers, up nearly 30% year-over-year.

• Launched proprietary MyWingstop tech stack and AI-enabled kitchen platform to enhance guest experience and operational efficiency.

• Net income increased 54.9% year-over-year to $108.7 million; significant charitable contributions included over $2 million for St. Jude's and $3.7 million in community grants.

Financial highlights

• Domestic same-store sales grew 19.9% for the year and 10.1% in Q4, primarily driven by transaction growth.

• Adjusted EBITDA increased 44.8% to $212.1 million for the year and 44% to $56.3 million in Q4.

• Earnings per diluted share for Q4 rose 44% to $0.92; Q4 net income rose 42.2% to $26.8 million.

• System-wide sales for Q4 increased 27.6% year-over-year to $1.2 billion; total revenue up 27.4% to $161.8 million.

• Company-owned restaurant sales increased by $24 million year-over-year, with $16 million from same-store sales growth and $8 million from new/acquired units.

Outlook and guidance

• 2025 guidance: low-to-mid single-digit same-store sales growth and global unit growth rate of 14%-15%.

• Adjusted EBITDA growth rate projected at approximately 15% for 2025.

• SG&A expected to be about $140 million, including $4.5 million in non-recurring system implementation costs; stock-based compensation ~$26 million.

• Food and packaging costs anticipated to remain in the mid-30% range for 2025.

• Advertising fund contribution rate to increase from 5.3% to 5.5% in 2025.