Wingstop reported better-than-expected first-quarter earnings and revenue Wednesday, as the chicken wing chain's domestic same-store sales ramped higher. WING shares edged lower Wednesday and Thursday but rose sharply Friday morning.
Texas-based Wingstop saw Q1 EPS come in at 98 cents, up 66% compared to first quarter 2023, while revenue increased 34% to $145.79 million. Meanwhile, domestic same-store sales grew 21.6% in Q1.
Analysts predicted earnings of 77 cents per share and sales totaling $136.3 million. Analysts also expected same-store sales to increase 7.8%, according to FactSet.
The restaurant chain now expects low double-digit domestic same-store sales growth for the full year. The company also reiterated Wednesday it expects 2024 depreciation and amortization of between $18 million and $19 million.
Wingstop Stock
Wingstop stock edged down 0.2% to 383.98 during market trade on Wednesday, moving above a 379 buy point and holding above the 50-day and 10-week lines. It fell fractionally again Thursday but jumped more than 2% early Friday.
WING shares fell a fraction Tuesday to 384.79, trading just off record highs. Heading into its earnings report Wednesday, Wingstop had surged 50% this year. Shares have booked eight consecutive monthly gains.
Ahead of Q1 earnings, analysts handed Wingstop several stock price target increases. Citi, Jefferies and Morgan Stanley hiked targets to 375, 335 and 315, respectively, in mid-April.
On April 11, Stephens resumed coverage of Wingstop with an overweight rating and a 425 price target. The firm noted that Wingstop is one of the "few publicly traded restaurant names that is delivering consistent same-store sales growth."
Meanwhile, the 54 stocks in the IBD-tracked Retail-Restaurants industry group have collectively advanced more than 23% in 2024, outperforming the S&P 500 index by a wide margin. Restaurant stocks have shown bullish action in recent days and Cava Group was the IBD Stock Of The Day Friday. Chipotle Mexican Grill held that honor last Thursday.
Texas Roadhouse Q1 earnings grew 32% to $1.69 with revenue totaling $1.32 billion, up 13% compared to Q1 2023. The earnings results late Thursday came in above expectations while the company met analysts' sales forecast. Texas Roadhouse stock is in a buy zone from a flat base buy point of 157.12.
Meanwhile, fellow restaurant stock Shake Shack also reported better-than-expected EPS but missed revenue expectations early Thursday.
Wingstop stock has a 98 Composite Rating out of a best-possible 99. The stock also has a 97 Relative Strength Rating and a 95 EPS Rating.
Please follow Kit Norton on X, formerly known as Twitter, @KitNorton for more coverage.
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