Wingstop stock retreated Wednesday even as the Dallas-based chicken chain served up better-than-expected Q4 results. Elsewhere, Jack In The Box reports after market close Wednesday.
Wingstop earnings rose 6.7% to 64 cents per share adjusted vs. earnings growth ranging from 27% to 150% over the last four quarters. Revenue growth slowed for the fourth consecutive quarter, increasing 21% to $127.1 million.
FactSet analysts expected adjusted earnings of 57 cents per share on $120.3 million in sales.
Systemwide sales increased 24.5% to $965.9 million for the quarter while domestic same-store sales jumped 21.2%. Digital sales increased to 67% of systemwide sales. Meanwhile, Wingstop reported 115 net new store openings during Q4.
CEO Michael Skipworth noted in the earnings release that 2023 was the strongest year on record for Wingstop. Domestic same-store sales for the year increased 18.3%, marking 20 consecutive years of gains.
Full-year earnings rose nearly 31% to $2.48 per share adjusted while total revenue jumped 28.7% to $460.1 million. FactSet analysts expected 2023 earnings of $2.42 per share on $453.2 million in sales.
The company added 255 new locations during the year, bringing the total Wingstop restaurants to 2,214 systemwide.
For fiscal 2024, Wingstop guided mid-single digit domestic same-store sales growth and expects to open 270 new global locations. Wall Street forecasts 2024 earnings of $2.89 per share adjusted on $528 million in revenue.
Meanwhile, Wingstop is benefiting from falling wing prices. As of the end of January, fresh chicken wing prices were down about 5% at the retail level while frozen wing prices are down 11% compared to January 2023, according to Circana data.
Wingstop Stock
WING stock fell 4.4% Wednesday after results, paring some of its 45% gain that followed a November breakout. The stock closed 16% above its 10-week moving average on Tuesday.
Shares closed at a record high Tuesday, and have rallied about 21% so far this year.
Wingstop is a member of the Leaderboard Leaders Watchlist.
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