What happened

Shares of Wingstop Inc. (NASDAQ:WING), an operator of restaurants specializing in sauced and tossed chicken wings, are up 14% as of 11:33 a.m. EDT Friday after second-quarter earnings beat estimates and an increased quarterly dividend.

So what

Second-quarter revenue jumped 17.3% to $37 million, checking in just slightly below analysts' estimates calling for $37.2 million. The bottom line, however, checked in with a 39.4% increase in net income to $0.23 per share compared to analysts' estimates of $0.21 per share.

Chicken wings on a cutting board.

Image source: Getty Images.

"Wingstop completed another strong quarter of growth on both the top and bottom lines as we continue positioning ourselves to become a top 10 global restaurant brand," said Chairman and CEO Charlie Morrison in a press release.

Now what

In other news, the company also demonstrated its strong cash flow generation and confidence in business momentum to boost the quarterly dividend by 29% to $0.09 per share. While the cost of bone-in chicken wings -- which was down 22.9% during the second quarter -- will add volatility to the company's performance, if Wingstop can execute on its four growth strategies of building brand awareness, improving guest experience, optimizing delivery in test markets before a full 2019 rollout, and expanding internationally, it's well positioned for further growth.

Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.