Specialty restaurant chain operator Wingstop (WING +1.94%) took flight on the stock exchange Wednesday, rising almost 8% higher in price. This was understandable, given that the company published a set of quarterly results that were eminently satisfying. That share price pop easily topped the S&P 500 index's 1% gain.
Wingstop notched a monster beat on adjusted net income
For its third quarter, Wingstop booked $117 million in revenue. That represented a meaty increase of nearly 26% year over year. Same-restaurant U.S. sales rose by 15%, while there were 53 net new restaurant openings during the period, resulting in an end-of-quarter total of 2,099 Wingstop restaurants worldwide.
On the bottom line, Wingstop managed an even more impressive growth number. Its non-GAAP (adjusted) net profit improved by nearly 54% to hit $20.5 million, or $0.69 per share.
Both headline metrics were more than good enough to top analyst estimates. Actually, that's an overstatement, as those prognosticators were collectively modeling only $0.52 per share for adjusted net income. They also low-balled sales; their average projection for that line item was slightly over $109 million.
In its earnings release, Wingstop wasn't shy about mentioning that it is headed toward its 20th year in a row of domestic same-restaurant growth.
It quoted CEO Michael Skipworth as saying, "This consistent growth, coupled with the strength of our unit economics, gives us the confidence in our 2023 global development outlook and our long-term vision of scaling Wingstop into a top 10 global restaurant brand."
NASDAQ: WING
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It also raised its same-restaurant guidance for the full year
Wingstop also proffered guidance for the entirety of 2023. It updated its domestic same-restaurant growth forecast; it now believes this will be 16% over that of 2022. Previously, the company was guiding for only 10% to 12%.
It also maintained its existing forecast of 240 to 250 new "units" (Wingstop outlets of various sizes and configurations) for the year. The company did not provide any net income estimates.
