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Wingstop (WING) Stock Up on Robust Q1 Preliminary Comps

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Wingstop Inc. (WING - Free Report) reported robust preliminary comparable restaurant sales results for the first quarter of fiscal 2021. Following the news, the company’s shares increased 3.8% in after-hour trading session on Mar 31. In the past year, the sock has surged 59.9% compared with the industry’s rally of 63.4%.

Preliminary Comparable Sales

During the fiscal first quarter, domestic same store sales increased 20.7% year over year or 30.6% on a 2-year basis. In fourth-quarter fiscal 2020, comps increased 30.4% on a two-year basis. Company-owned restaurant same-store sales rose 13.4% year over year compared with 10.4% reported in the last reported quarter.

During the quarter, system-wide sales rose 30% year over year (to approximately $558.9 million) compared with 26.5% growth (or $502.5 million) in the fiscal second quarter.

Meanwhile, digital sales contributed 63.6% to sales during the fiscal first quarter compared with 62.5% in fourth-quarter fiscal 2020.


 

Charlie Morrison, chairman and chief executive officer at Wingstop, stated, “We opened 41 net new restaurants, a record-high for the first quarter. This is as a result of achieving a key milestone of over $1.5 million AUVs, translating into best in-class unit economics, and our largest development pipeline to-date. I'm confident we are well on our way to becoming a top 10 global restaurant brand.”

Notably, the company has been benefitting from dining room reopenings along with solid off-premise business. The company is scheduled to report first-quarter fiscal 2021 on April 28, 2021.

Zacks Rank & Key Picks

Wingstop currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the same space include Darden Restaurants, Inc. (DRI - Free Report) , Jack in the Box Inc. (JACK - Free Report) and Chuy's Holdings, Inc. (CHUY - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Darden 2021 earnings are expected to rise 24.9%.

Jack in the Box has three-five-year earnings per share growth rate of 17%.

Chuy's Holdings has a trailing four-quarter earnings surprise of 126.5%, on average.

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