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Wingstop Restaurants Inc. (WING - Free Report) recently released initial unaudited sales figures for fourth quarter and fiscal 2017, which ended on Dec 30, 2017.
Notably, when compared with the fourth quarter and 2016, which had 14- and 53-weeks, respectively, the results for fourth quarter and full year 2017 lag slightly in terms of comparable revenues.
In a bid to be among the top ten global restaurant brands, Wingstop focuses on four long-term growth strategies. These strategies include national advertising, digital expansion, delivery and international development, which, according to management have paid off in the fourth quarter.
WIngstop faced a number of challenges in the fourth quarter, which included record wing inflation of more than 40% and the negative impact of the recent hurricanes in the United States. However, the company is fairly upbeat about its fourth-quarter sales results.
Shares of Wingstop have rallied 51.6% in the past year, outperforming the industry’s gain of 20.4%.
Q4 Sales Results
During the fourth quarter, system-wide restaurant count was up 13.5% year over year to 1,133 worldwide locations. Net openings were 45 in the quarter.
Domestic comps improved 5.2%, while the company recorded company-owned restaurant comps growth of 4.6%.
System-wide sales were up 15.6% to approximately $285 million in the quarter on a year-over year basis.
Fiscal 2017 Sales
Net openings in fiscal 2017 were 135. The company’s domestic comps grew 2.6%, while company-owned restaurant comps increased 1.6%.
System-wide sales increased 14% to roughly $1.1 billion from the previous year.
Notably, fiscal 2017 marked the company’s 14th consecutive year of positive comps growth.
The company’s reported sales figures reflect Wingstop’s potential to maintain the top-line momentum.
In order to boost traffic and sales, the company is relying on continual expansion. Recently, Wingstop opened its 100th location in Reynosa, Mexico, taking its international restaurant count higher. The company also signed two international development agreements for 110 restaurants across Australia and New Zealand over the next 10 years and more than 70 restaurants in France in the next 12 years.
By improving digital ordering and launching national advertising, the company is trying to increase brand awareness in all markets that will continue to drive its top line.
Subsequently, the Zacks Consensus Estimate of total sales for fourth-quarter fiscal 2017 is pegged at $27.85 million, reflecting 12.5% year-over-year growth.
Darden, Domino's and McDonald's 2018 earnings are expected to improve 13.2%, 23.5% and 8.9%, respectively.
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Wingstop Announces Preliminary Q4 & 2017 Sales Results
Wingstop Restaurants Inc. (WING - Free Report) recently released initial unaudited sales figures for fourth quarter and fiscal 2017, which ended on Dec 30, 2017.
Notably, when compared with the fourth quarter and 2016, which had 14- and 53-weeks, respectively, the results for fourth quarter and full year 2017 lag slightly in terms of comparable revenues.
In a bid to be among the top ten global restaurant brands, Wingstop focuses on four long-term growth strategies. These strategies include national advertising, digital expansion, delivery and international development, which, according to management have paid off in the fourth quarter.
WIngstop faced a number of challenges in the fourth quarter, which included record wing inflation of more than 40% and the negative impact of the recent hurricanes in the United States. However, the company is fairly upbeat about its fourth-quarter sales results.
Shares of Wingstop have rallied 51.6% in the past year, outperforming the industry’s gain of 20.4%.
Q4 Sales Results
During the fourth quarter, system-wide restaurant count was up 13.5% year over year to 1,133 worldwide locations. Net openings were 45 in the quarter.
Domestic comps improved 5.2%, while the company recorded company-owned restaurant comps growth of 4.6%.
System-wide sales were up 15.6% to approximately $285 million in the quarter on a year-over year basis.
Fiscal 2017 Sales
Net openings in fiscal 2017 were 135. The company’s domestic comps grew 2.6%, while company-owned restaurant comps increased 1.6%.
System-wide sales increased 14% to roughly $1.1 billion from the previous year.
Notably, fiscal 2017 marked the company’s 14th consecutive year of positive comps growth.
Wingstop Inc. Revenue (TTM)
Wingstop Inc. Revenue (TTM) | Wingstop Inc. Quote
Our Take
The company’s reported sales figures reflect Wingstop’s potential to maintain the top-line momentum.
In order to boost traffic and sales, the company is relying on continual expansion. Recently, Wingstop opened its 100th location in Reynosa, Mexico, taking its international restaurant count higher. The company also signed two international development agreements for 110 restaurants across Australia and New Zealand over the next 10 years and more than 70 restaurants in France in the next 12 years.
By improving digital ordering and launching national advertising, the company is trying to increase brand awareness in all markets that will continue to drive its top line.
Subsequently, the Zacks Consensus Estimate of total sales for fourth-quarter fiscal 2017 is pegged at $27.85 million, reflecting 12.5% year-over-year growth.
Zacks Rank & Stocks to Consider
Wingstop carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the restaurant space are Darden Restaurants, Inc. (DRI - Free Report) , Domino's Pizza, Inc. (DPZ - Free Report) and McDonald's Corporation (MCD - Free Report) , all carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Darden, Domino's and McDonald's 2018 earnings are expected to improve 13.2%, 23.5% and 8.9%, respectively.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
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