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Dallas-based Wingstop Inc. (WING - Free Report) is set to report second-quarter 2016 results on Aug 4, after the market closes. This will be the company’s fifth quarterly results after its IPO last June.
Last quarter, this restaurant operator posted a positive earnings surprise of 14.29% for the fourth consecutive quarter.
In fact, the company has surpassed earnings estimates in the trailing three quarters with an average positive surprise of 19.23%.
Let us see what is in store for the company this quarter.
Factors to Consider This Quarter
Wingstop, which operates as a chicken wings specialist, serves classic and boneless wings with bold flavors. In the preceding quarter, the company reported a 4.6% increase in domestic same-restaurant sales.
Wingstop has an enviable streak of reporting positive comps for 12 years. We expect the trend to continue in the to-be-reported quarter as well backed by menu innovation and unit growth. The company's store count has also been growing. We expect an increase in store count this time around as well, which will consequently boost revenues in the to-be reported quarter.
However, higher costs and expenses are likely to hurt the company’s profits in the to-be-reported quarter.
Earnings Whispers
Our proven model does not conclusively show that Wingstop is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: Earnings ESP for Wingstop is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 14 cents.
Zacks Rank: Wingstop has a Zacks Rank #4 (Sell). We note that the Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement.
Stocks to Consider
Here are some companies in the restaurant sector that investors may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) , with an Earnings ESP of +2.27% and a Zacks Rank #1.
Jack in the Box Inc. (JACK - Free Report) with an Earnings ESP of +1.15% and a Zacks Rank #2.
Carrols Restaurant Group Inc. (TAST - Free Report) with an Earnings ESP of +4.35% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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Wingstop (WING) Q2 Earnings: What to Expect?
Dallas-based Wingstop Inc. (WING - Free Report) is set to report second-quarter 2016 results on Aug 4, after the market closes. This will be the company’s fifth quarterly results after its IPO last June.
Last quarter, this restaurant operator posted a positive earnings surprise of 14.29% for the fourth consecutive quarter.
In fact, the company has surpassed earnings estimates in the trailing three quarters with an average positive surprise of 19.23%.
WINGSTOP INC Price and EPS Surprise
WINGSTOP INC Price and EPS Surprise | WINGSTOP INC Quote
Let us see what is in store for the company this quarter.
Factors to Consider This Quarter
Wingstop, which operates as a chicken wings specialist, serves classic and boneless wings with bold flavors. In the preceding quarter, the company reported a 4.6% increase in domestic same-restaurant sales.
Wingstop has an enviable streak of reporting positive comps for 12 years. We expect the trend to continue in the to-be-reported quarter as well backed by menu innovation and unit growth. The company's store count has also been growing. We expect an increase in store count this time around as well, which will consequently boost revenues in the to-be reported quarter.
However, higher costs and expenses are likely to hurt the company’s profits in the to-be-reported quarter.
Earnings Whispers
Our proven model does not conclusively show that Wingstop is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: Earnings ESP for Wingstop is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 14 cents.
Zacks Rank: Wingstop has a Zacks Rank #4 (Sell). We note that the Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement.
Stocks to Consider
Here are some companies in the restaurant sector that investors may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) , with an Earnings ESP of +2.27% and a Zacks Rank #1.
Jack in the Box Inc. (JACK - Free Report) with an Earnings ESP of +1.15% and a Zacks Rank #2.
Carrols Restaurant Group Inc. (TAST - Free Report) with an Earnings ESP of +4.35% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>