Hollis Johnson/Business Insider
- Wingstop beat Wall Street estimates for the first quarter.
- Global sales increased 20.4% compared to the first-quarter of 2017.
- Same store sales increased 9.5%.
- Watch Wingstop trade in real-time here.
Wingstop beat on both the top and bottom lines for the first quarter, but shares are little changed following the results.
The wing chain reported adjusted earnings of $0.25 a share, topping the Bloomberg consensus estimate of $0.19. Revenue came in at $37.4 million compared to the $36.28 million that was expected. Global sales grew 20.4% to $313 million.
“Our strong start in 2018 is another example of the strength of our model and the outstanding performance of our franchisees and team members," CEO Charlie Morrison said in a press release. "This strong start gives us confidence in our ability to deliver 2018 results that are above our long term targets."
Last year, the company faced one of the most difficult years in its 23-year histry as wing prices reached record highs. The high costs, combined with conservative spending by its main customer base, lower-middle income Americans, led to a rise in traders betting against the stock. Still, the company managed to end the year with positive same-store sales growth. The first-quarter of 2018, continued the positive trend, with same-store sales surging 9.5%.
Wingstop management reiterated previous guidance for fiscal-year 2018 which includes low single-digit same store sales growth in the domestic market and adjusted EBITDA growth of 13%-15%. The Dallas-based chicken-wing chain is also in the process of finding a new Chief Marketing Officer after Flynn Dekker resigned in March.
Wingstop shares are up more than 69% this year.
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