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.
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.
"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.
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.