Shares of Wingstop (NASDAQ:WING) are jumping today, up 9% as of 3:25 p.m. EDT, after the company announced strong first-quarter results.
Total revenue jumped 11.9% over the prior-year period to $37.4 million, driven by domestic same-store sales rising 9.5%. Adjusted net income per share moved 16.4% higher to $7.3 million, or $0.25 per share, which was well ahead of analysts' estimate calling for $0.20 per share.
Chairman and CEO Charlie Morrison commented in the press release:
Our strong start in 2018 is another example of the strength of our model and the outstanding performance of our franchisees and team members. This strong start gives us confidence in our ability to deliver 2018 results that are above our long term targets. The strong top line momentum in the first quarter of 2018 led to adjusted EBITDA growth of 31% and adjusted net income growth of 16.4%.
Business was good in the first quarter, and going forward management will focus on four growth strategies: building brand awareness, innovating its technological platforms, improving its delivery strategy in three test markets, and developing international business. The restaurant business isn't easy, and rising food costs could hurt performance unpredictably, but Wingstop's first quarter was solid. If management executes those four strategies, 2018 will be a strong year.