Wingstop Inc. posted domestic same-store sales growth of 21.6%, easily eclipsing major restaurant players, the company said Wednesday in releasing earnings for the first quarter ended March 30.
Dallas-based Wingstop said the 21.6% domestic same-store sales increase was driven mostly by transaction growth and reflected consumers’ willingness to spend discretionary dollars with the brand.
Michael Skipworth, CEO and president, said on an analysts’ call: “We believe that indulgent Wingstop occasion delivers upon both quality and value and has us uniquely positioned.”
Skipworth said the company’s first quarter performance led it to raise its 2024 guidance from mid-single digits to low double-digit same-store sales growth.
Average unit volumes are about $1.9 million, he added, quickly approaching a target of $2 million.
“It's an incredibly exciting time at Wingstop as we scale toward our vision of becoming a Top 10 global restaurant brand,” he said.
However, Skipworth said the company’s strategic pillars remained:
One of those was a proprietary technology stack called MyWingstop that began rolling out in April after testing in a small number of stores, he said.
“We are just scratching the surface on the opportunity to leverage our digital database as our restaurant AUV is expanded digital sales can also continue to increase — now accounting for 68% of sales in Q1,” Skipworth said.
During the first quarter systemwide sales grew by 37%, Skipworth added, “which delivers additional firepower in our advertising fund to invest meaningful dollars behind our opportunity to expand brand awareness,
“Our increased media investment is providing new opportunities such as advertising in the NFL playoff and becoming the presenting sponsor for the NBA's Wednesday primetime matchup,” he said.
For the first quarter ended March 30, Wingstop’s net income increased to $28.7 million, or 98 cents a share, from $15.7 million, or 52 cents a share, in the prior-year period. Revenues increased to $145.8 million from $108.7 million in the same quarter last year.
Wingstop, founded in 1994, owns and franchises more than 2,250 locations worldwide.
The company opened 65 net new restaurants in the quarter.
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