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Wingstop (WING) to Report Q2 Earnings: What's in the Cards?
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Wingstop Inc. (WING - Free Report) is scheduled to release second-quarter 2023 results on Aug 2, before the opening bell. In the last reported quarter, the company reported an earnings surprise of 28.3%.
How Are Estimates Trending?
The Zacks Consensus Estimate for second-quarter earnings per share (EPS) is pegged at 51 cents, indicating growth of 13.3% from 45 cents registered in the year-ago quarter.
For revenues, the consensus mark is pegged at $104.9 million, suggesting growth of 25.2% from the prior-year quarter’s figure.
Let's look at how things have shaped up in the quarter.
Factors at Play
Wingstop’s second-quarter top line is expected to increase year over year, backed by menu innovation, delivery channel digital transformation and data-driven marketing initiatives. Momentum in digital orders (through AI voice ordering technology) coupled with the expansion of delivery channel (via Uber Eats and DoorDash collaboration) and new restaurant openings are likely to have improved comps in the to-be-reported quarter.
Solid contributions from Royalty revenues, franchise fees and others, Advertising fees and Company-owned restaurant sales are likely to have aided the company’s second-quarter top line. The Zacks Consensus Estimate for second-quarter Royalty revenue, franchise fees and others is pegged at $45.5 million compared with $36 million reported in the prior-year quarter. The consensus mark for revenues from Advertising fees and Company-owned restaurant sales is pegged at $36.3 million and $23.1 million, indicating growth of 25% and 23%, respectively, on a year-over-year basis.
The emphasis on strengthening the marketing engine and consumer-tested flavor options (in terms of LTO’s) are likely to have driven improvement in retention rates, increased frequency and attracted new guests in the to-be-reported quarter.
Volatility in food costs (concerning the bone-in chicken wings) and increased investments (in terms of technology, development and international expansion) are likely to have dented the company’s performance in the to-be-reported quarter.
What Our Model Says
Our proven model predicts an earnings beat for Wingstop this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Wingstop has an Earnings ESP of +2.44%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other stocks worth considering from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these too have the right combination of elements to post an earnings beat.
Arhaus (ARHS - Free Report) currently has an Earnings ESP of +7.69% and sports a Zacks Rank #1.
ARHS is expected to register a bottom-line decline when it reports second-quarter 2023 results. The Zacks Consensus Estimate for quarterly EPS of 26 cents suggests a fall of 7.1% from the year-ago quarter. Arhaus’ top line is anticipated to rise year over year. The consensus mark is pegged at $325.7 million, indicating an increase of 6.3% from the year-ago quarter’s reported figure. ARHS has a trailing four-quarter earnings surprise of 82.4%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +0.73% and a Zacks Rank of 3.
COST is likely to register bottom-line growth while posting fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly EPS of $4.73 indicates a 12.6% increase from the year-ago reported number. Costco’s top line is projected to ascend year over year. The Zacks Consensus Estimate is pegged at $78.9 billion, indicating 9.5% rise from the prior-year quarter. COST has a trailing four-quarter earnings surprise of 1.8%, on average.
Restaurant Brands International Inc. (QSR - Free Report) has an Earnings ESP of +0.82% and a Zacks Rank #3.
QSR is expected to register a bottom-line decline when it reports second-quarter 2023 results. The Zacks Consensus Estimate for quarterly EPS of 76 cents suggests a fall of 7.3% from the year-ago quarter. Restaurant Brands’ top line is anticipated to rise year over year. The consensus mark is pegged at $1,744 million, indicating an increase of 6.4% from the year-ago quarter’s reported figure. QSR has a trailing four-quarter earnings surprise of 12.9%, on average.
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Wingstop (WING) to Report Q2 Earnings: What's in the Cards?
Wingstop Inc. (WING - Free Report) is scheduled to release second-quarter 2023 results on Aug 2, before the opening bell. In the last reported quarter, the company reported an earnings surprise of 28.3%.
How Are Estimates Trending?
The Zacks Consensus Estimate for second-quarter earnings per share (EPS) is pegged at 51 cents, indicating growth of 13.3% from 45 cents registered in the year-ago quarter.
For revenues, the consensus mark is pegged at $104.9 million, suggesting growth of 25.2% from the prior-year quarter’s figure.
Wingstop Inc. Price and EPS Surprise
Wingstop Inc. price-eps-surprise | Wingstop Inc. Quote
Let's look at how things have shaped up in the quarter.
Factors at Play
Wingstop’s second-quarter top line is expected to increase year over year, backed by menu innovation, delivery channel digital transformation and data-driven marketing initiatives. Momentum in digital orders (through AI voice ordering technology) coupled with the expansion of delivery channel (via Uber Eats and DoorDash collaboration) and new restaurant openings are likely to have improved comps in the to-be-reported quarter.
Solid contributions from Royalty revenues, franchise fees and others, Advertising fees and Company-owned restaurant sales are likely to have aided the company’s second-quarter top line. The Zacks Consensus Estimate for second-quarter Royalty revenue, franchise fees and others is pegged at $45.5 million compared with $36 million reported in the prior-year quarter. The consensus mark for revenues from Advertising fees and Company-owned restaurant sales is pegged at $36.3 million and $23.1 million, indicating growth of 25% and 23%, respectively, on a year-over-year basis.
The emphasis on strengthening the marketing engine and consumer-tested flavor options (in terms of LTO’s) are likely to have driven improvement in retention rates, increased frequency and attracted new guests in the to-be-reported quarter.
Volatility in food costs (concerning the bone-in chicken wings) and increased investments (in terms of technology, development and international expansion) are likely to have dented the company’s performance in the to-be-reported quarter.
What Our Model Says
Our proven model predicts an earnings beat for Wingstop this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Wingstop has an Earnings ESP of +2.44%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks Poised to Beat on Earnings
Here are some other stocks worth considering from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these too have the right combination of elements to post an earnings beat.
Arhaus (ARHS - Free Report) currently has an Earnings ESP of +7.69% and sports a Zacks Rank #1.
ARHS is expected to register a bottom-line decline when it reports second-quarter 2023 results. The Zacks Consensus Estimate for quarterly EPS of 26 cents suggests a fall of 7.1% from the year-ago quarter. Arhaus’ top line is anticipated to rise year over year. The consensus mark is pegged at $325.7 million, indicating an increase of 6.3% from the year-ago quarter’s reported figure. ARHS has a trailing four-quarter earnings surprise of 82.4%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +0.73% and a Zacks Rank of 3.
COST is likely to register bottom-line growth while posting fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly EPS of $4.73 indicates a 12.6% increase from the year-ago reported number. Costco’s top line is projected to ascend year over year. The Zacks Consensus Estimate is pegged at $78.9 billion, indicating 9.5% rise from the prior-year quarter. COST has a trailing four-quarter earnings surprise of 1.8%, on average.
Restaurant Brands International Inc. (QSR - Free Report) has an Earnings ESP of +0.82% and a Zacks Rank #3.
QSR is expected to register a bottom-line decline when it reports second-quarter 2023 results. The Zacks Consensus Estimate for quarterly EPS of 76 cents suggests a fall of 7.3% from the year-ago quarter. Restaurant Brands’ top line is anticipated to rise year over year. The consensus mark is pegged at $1,744 million, indicating an increase of 6.4% from the year-ago quarter’s reported figure. QSR has a trailing four-quarter earnings surprise of 12.9%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.