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Factors Setting the Tone for Wingstop (WING) in Q1 Earnings
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Wingstop, Inc. (WING - Free Report) is set to report first-quarter 2018 results on May 3, after the closing bell.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 6.3%. In fact, Wingstop also surpassed the consensus mark in each of the trailing 11 quarters.
Let’s see how things are shaping up prior to the upcoming quarterly release.
Q1 Expectations
The question lingering in investors’ minds now is whether Wingstop will be able to deliver a positive earnings surprise in the quarter to be reported. The Zacks Consensus Estimate for the first quarter is pegged at 20 cents, lower than 22 cents in the year-ago quarter. Of late, the company’s earnings estimates have been stable. In the fourth quarter of 2017, the company’s witnessed earnings growth of 13.3% on a year-over-year basis. Meanwhile, analysts polled by Zacks expect revenues of nearly $36.54 million, up more than 37.5% from the prior-year quarter.
Let’s delve deeper to find out how the company’s top and bottom lines will shape up this earnings season.
Factors at Play
Wingstop sales in first-quarter 2018 are likely to be driven by the company’s relentless focus on menu innovation and unit expansion. This, in turn, is likely drive comparable sales in the quarter to be reported. Moreover, the company’s new POS system that integrates online orders straight to the kitchen is expected to bolster online ordering growth and lead to higher average check.
Meanwhile, the Zacks Consensus Estimate for the systemwide domestic comps growth in the quarter is pegged at 5.36%, higher than prior-quarter’s growth of 5.2%. The same for the company-owned domestic comps growth in the quarter is pegged at 5.5%, higher than 4.6% in the previous quarter.
Also, the company is relying on continual expansion to boost traffic and sales. In a bid to expand international presence, Wingstop is likely to open restaurant in the UK, France, Panama, Australia and New Zealand. Earlier, it 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 for the next 12 years.
However, higher labor costs and expenses related to new openings might dent the company’s profits in the to-be-reported quarter. Notably, in 2017, cost of sales increased 370 basis points to 77.5% from 73.8%, courtesy of 18% increase in commodities rates for bone-in chicken wings.
Our proven model shows that Wingstop is likely to beat earnings estimates this quarter. This is because the stock has the right combination of two ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Wingstop has an Earnings ESP of +5.66% and a Zacks Rank #3.
Stocks to Consider
Here are a few other stocks from the Restaurant space that investors may consider, as our model shows that they also have the right combination of elements to post an earnings beat this quarter:
Jack in the Box Inc. (JACK - Free Report) has an Earnings ESP of +2.33% and a Zacks Rank of 3.
Del Taco has an Earnings ESP of +10.0% and a Zacks Rank #2.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Factors Setting the Tone for Wingstop (WING) in Q1 Earnings
Wingstop, Inc. (WING - Free Report) is set to report first-quarter 2018 results on May 3, after the closing bell.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 6.3%. In fact, Wingstop also surpassed the consensus mark in each of the trailing 11 quarters.
Let’s see how things are shaping up prior to the upcoming quarterly release.
Q1 Expectations
The question lingering in investors’ minds now is whether Wingstop will be able to deliver a positive earnings surprise in the quarter to be reported. The Zacks Consensus Estimate for the first quarter is pegged at 20 cents, lower than 22 cents in the year-ago quarter. Of late, the company’s earnings estimates have been stable. In the fourth quarter of 2017, the company’s witnessed earnings growth of 13.3% on a year-over-year basis.
Meanwhile, analysts polled by Zacks expect revenues of nearly $36.54 million, up more than 37.5% from the prior-year quarter.
Let’s delve deeper to find out how the company’s top and bottom lines will shape up this earnings season.
Factors at Play
Wingstop sales in first-quarter 2018 are likely to be driven by the company’s relentless focus on menu innovation and unit expansion. This, in turn, is likely drive comparable sales in the quarter to be reported. Moreover, the company’s new POS system that integrates online orders straight to the kitchen is expected to bolster online ordering growth and lead to higher average check.
Meanwhile, the Zacks Consensus Estimate for the systemwide domestic comps growth in the quarter is pegged at 5.36%, higher than prior-quarter’s growth of 5.2%. The same for the company-owned domestic comps growth in the quarter is pegged at 5.5%, higher than 4.6% in the previous quarter.
Also, the company is relying on continual expansion to boost traffic and sales. In a bid to expand international presence, Wingstop is likely to open restaurant in the UK, France, Panama, Australia and New Zealand. Earlier, it 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 for the next 12 years.
However, higher labor costs and expenses related to new openings might dent the company’s profits in the to-be-reported quarter. Notably, in 2017, cost of sales increased 370 basis points to 77.5% from 73.8%, courtesy of 18% increase in commodities rates for bone-in chicken wings.
Wingstop Inc. Price, Consensus and EPS Surprise
Wingstop Inc. Price, Consensus and EPS Surprise | Wingstop Inc. Quote
What Does the Zacks Model Unveil?
Our proven model shows that Wingstop is likely to beat earnings estimates this quarter. This is because the stock has the right combination of two ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Wingstop has an Earnings ESP of +5.66% and a Zacks Rank #3.
Stocks to Consider
Here are a few other stocks from the Restaurant space that investors may consider, as our model shows that they also have the right combination of elements to post an earnings beat this quarter:
Ruth's Hospitality Group, Inc. has an Earnings ESP of +1.70% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Jack in the Box Inc. (JACK - Free Report) has an Earnings ESP of +2.33% and a Zacks Rank of 3.
Del Taco has an Earnings ESP of +10.0% and a Zacks Rank #2.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>