Investors didn't get much relief on Wednesday from the rout that Wall Street suffered Tuesday. Although the Nasdaq Composite (^IXIC -0.09%) posted a small gain for the session, it finished well below its highs. Further declines for the S&P 500 (^GSPC 0.03%) and the Dow Jones Industrial Average (^DJI 0.21%) showed the damage that has been done to investor sentiment so far this week.


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Data source: Yahoo! Finance.

Yet there were stocks that moved higher after reporting strong financial results for the most recent quarter. Some of these companies operate in spaces that have been under stress, so it was somewhat surprising to see them deliver such positive performances. Read on to find out what Wingstop (WING -2.99%) and Garmin (GRMN -0.43%) had to say about the impact the tough macroeconomic environment has had on their respective businesses.

Wingstop looks tasty

Shares of Wingstop finished the day up 8% after the chicken wing chain reported its fourth-quarter financial results. Even as many restaurant companies have struggled amid rising input costs due to food inflation, Wingstop has been able to take advantage of unusual price behavior in the chicken wing market to boost its sales and profits.

Wingstop's Q4 numbers were truly impressive. Systemwide sales jumped 29% year over year to $776 million, with 61 net new restaurant openings in the fourth quarter alone. Domestic same-store sales were up 8.7%, and revenue for the franchise parent soared 46% to $105 million. And net income rose the most of all, posting a massive 155% increase from year-ago levels to $17.6 million, or $0.59 per share. For the full year, it delivered 17% systemwide sales growth, a 27% rise in revenue, and a 37% rise in adjusted earnings to $1.85 per share.

A close look at Wingstop's results shows some interesting facets of the business. Its company-owned locations saw slower growth than its franchise operations, showing the value of the franchise model. Also, margins expanded dramatically because bone-in chicken wing prices plummeted by nearly half from where they were 12 months previously.

With Wednesday's share-price gains, Wingstop stock hit an all-time high. The company's latest report shows that consumers still have a healthy appetite for good food at cost-effective prices, and shareholders were happy to see Wingstop giving customers what they want.

Garmin looks to find its way

Meanwhile, shares of Garmin closed 4% higher on Wednesday. The maker of GPS location systems reported fourth-quarter financials that showed both the extent to which its business has come under pressure and the efforts it has made to carve out space in some key niche markets, despite threats to what was once its core business.

Garmin's quarterly revenue fell 6% year over year to $1.31 billion, even though 2022's fourth quarter had an extra week compared to the prior-year period. Adjusted earnings were down 13% to $1.35 per share. The fitness and auto categories provided the most notable drags on Garmin's sales performance, with fitness products in particular seeing a 28% plunge in sales.

However, there were a few positive areas. Sales of aviation products rose 27% as high-priced avionics systems remained in high demand worldwide. Moreover, sonar and chart-plotting products helped Garmin's marine segment grow revenue by 7%.

Shareholders hope that Garmin has found a way forward, as management is forecasting that full-year revenue in 2023 will rise by about 3% to $5 billion. Pro-forma earnings of $5.15 per share would be roughly flat compared to 2022, however, and that suggests Garmin has more progress to make before it can return to a growth trajectory.