Wingstop Inc. Reports Fiscal Second Quarter 2023 Financial Results and Increases Quarterly Dividend

Discover the Latest Financial Results and Dividend Increase of Wingstop Inc. (NASDAQ: WING) in Q2 2023


Wingstop Inc. (NASDAQ: WING) released its financial results for the fiscal second quarter ended July 1, 2023, showcasing impressive growth and positive performance. Along with robust financials, the company announced an increase in its quarterly dividend as a testament to its strong cash flow generation and commitment to rewarding shareholders.

Financial Highlights

The fiscal second quarter of 2023 proved to be outstanding for Wingstop, with several key metrics showing substantial growth compared to the same period in the previous year:

  • System-wide sales surged by 27.8%, reaching $809.8 million.
  • Domestic same store sales experienced a remarkable 16.8% growth.
  • Digital sales saw a significant increase, rising to 65.2%.
  • Total revenue increased by 27.9% to $107.2 million.
  • Net income rose by 21.6% to $16.2 million, or $0.54 per diluted share.

Strong Financial Outlook

Based on its year-to-date performance, Wingstop updated its financial guidance for fiscal year 2023. The company now anticipates 10% to 12% domestic same store sales growth, up from the previously projected high-single digits. Furthermore, Wingstop expects to add 240 to 250 new global units, reiterating its previous projection. SG&A is forecasted to be between $91.0 million and $93.0 million, reflecting an increase due to consulting projects supporting strategic initiatives. Stock-based compensation expenses are expected to be around $14.0 million to $15.0 million, reflecting an incentive-based compensation increase tied to the company's performance.

Restaurant Development

As of July 1, 2023, Wingstop boasted an impressive total of 2,046 restaurants in its system. Of these, 1,794 were in the United States, including 1,749 franchised and 45 company-owned restaurants. Additionally, the company had 252 franchised restaurants in international markets. During the second quarter of 2023, Wingstop opened a total of 50 net system-wide restaurants, reflecting its continued commitment to expansion.

Quarterly Dividend Increase

In a move to reward its shareholders, Wingstop's board of directors approved an increase in the quarterly dividend. The dividend per share of common stock will rise from $0.19 to $0.22, resulting in a total dividend payout of approximately $6.6 million. This enhanced dividend is scheduled to be paid on September 8, 2023, to stockholders of record as of August 18, 2023.

Wingstop Inc.'s fiscal second quarter 2023 financial results exceeded expectations, showcasing impressive growth and a commitment to delivering value to its shareholders. With strong financials and a positive outlook for the rest of the fiscal year, Wingstop continues to be a standout player in the restaurant industry, setting its sights on becoming a Top 10 Global Restaurant Brand. The increased quarterly dividend demonstrates the company's dedication to rewarding its investors while maintaining its position as a leader in the market. As the company's growth trajectory continues, investors can expect to see even more positive developments in the future.

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