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Wingstop (WING) to Report Q4 Earnings: What's in the Cards?
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Wingstop Inc. (WING - Free Report) is scheduled to release fourth-quarter 2023 results on Feb 21, before the opening bell. In the last reported quarter, the company reported an earnings surprise of 32.7%.
How Are Estimates Trending?
The Zacks Consensus Estimate for fourth-quarter earnings per share (EPS) is pegged at 57 cents, indicating a decline of 5% from 60 cents registered in the year-ago quarter.
For revenues, the consensus mark is pegged at $119.5 million, suggesting growth of 14% from the prior-year quarter’s figure.
Let's look at how things have shaped up in the quarter.
Factors at Play
Wingstop’s fourth-quarter top line is expected to increase year over year, backed by menu innovation, new restaurant openings and an expanded delivery platform. The factors mentioned above, growth in average weekly transactions (with Uber Eats and DoorDash) and strong new guest acquisition (across all channels) are likely to have aided the company’s performance 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 boosted the company’s fourth-quarter top line. The Zacks Consensus Estimate for fourth-quarter Royalty revenues, franchise fees and others is pegged at $54 million, suggesting an increase from $47.1 million reported in the prior-year quarter. The consensus mark for revenues from Advertising fees and company-owned restaurant sales is pegged at $40.9 million and $24.4 million, indicating growth of 21.4% and 9.2%, respectively, on a year-over-year basis.
The emphasis on investments in proprietary tech platform is likely to have driven improvement in conversion retention rates and increased frequency 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 margins in the to-be-reported quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Wingstop this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. But that's not the case here.
Earnings ESP: Wingstop has an Earnings ESP of -0.58%. 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 #2.
Stocks Poised to Beat Earnings Estimates
Here are some stocks worth considering from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Shares of PLAY have gained 56% in the past three months. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 34.5%.
Jack in the Box Inc. (JACK - Free Report) has an Earnings ESP of +1.30% and a Zacks Rank #3 at present.
The company's shares have gained 11% in the past three months. JACK’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 10.1%.
Sweetgreen, Inc. (SG - Free Report) has an Earnings ESP of +26.62% and a Zacks Rank #3 at present.
Shares of SG have jumped 24.4% in the past three months. SG’s earnings beat estimates in one of the trailing four quarters and missed thrice, the average surprise being negative 2.9%.
Image: Bigstock
Wingstop (WING) to Report Q4 Earnings: What's in the Cards?
Wingstop Inc. (WING - Free Report) is scheduled to release fourth-quarter 2023 results on Feb 21, before the opening bell. In the last reported quarter, the company reported an earnings surprise of 32.7%.
How Are Estimates Trending?
The Zacks Consensus Estimate for fourth-quarter earnings per share (EPS) is pegged at 57 cents, indicating a decline of 5% from 60 cents registered in the year-ago quarter.
For revenues, the consensus mark is pegged at $119.5 million, suggesting growth of 14% 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 fourth-quarter top line is expected to increase year over year, backed by menu innovation, new restaurant openings and an expanded delivery platform. The factors mentioned above, growth in average weekly transactions (with Uber Eats and DoorDash) and strong new guest acquisition (across all channels) are likely to have aided the company’s performance 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 boosted the company’s fourth-quarter top line. The Zacks Consensus Estimate for fourth-quarter Royalty revenues, franchise fees and others is pegged at $54 million, suggesting an increase from $47.1 million reported in the prior-year quarter. The consensus mark for revenues from Advertising fees and company-owned restaurant sales is pegged at $40.9 million and $24.4 million, indicating growth of 21.4% and 9.2%, respectively, on a year-over-year basis.
The emphasis on investments in proprietary tech platform is likely to have driven improvement in conversion retention rates and increased frequency 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 margins in the to-be-reported quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Wingstop this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. But that's not the case here.
Earnings ESP: Wingstop has an Earnings ESP of -0.58%. 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 #2.
Stocks Poised to Beat Earnings Estimates
Here are some stocks worth considering from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) has an Earnings ESP of +3.51% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of PLAY have gained 56% in the past three months. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 34.5%.
Jack in the Box Inc. (JACK - Free Report) has an Earnings ESP of +1.30% and a Zacks Rank #3 at present.
The company's shares have gained 11% in the past three months. JACK’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 10.1%.
Sweetgreen, Inc. (SG - Free Report) has an Earnings ESP of +26.62% and a Zacks Rank #3 at present.
Shares of SG have jumped 24.4% in the past three months. SG’s earnings beat estimates in one of the trailing four quarters and missed thrice, the average surprise being negative 2.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.