In a July 28th release, Wingstop Inc. (WING) posted financial results for the second quarter of fiscal 2022. This specialty QSR Company competes directly with privately held Buffalo Wild Wings and indirectly with national chains offering chicken. The Company experiences the same pressures of increased cost of ingredients, labor and transport as competitors in an environment still restrained by COVID and inflation. In addition, flavored wings are now readily available from supermarkets and in bulk from club stores for home meals and entertaining.
Domestic same-store sales decreased by 3.3 percent. System-wide sales were up by 7.5%. Digital orders comprised 60.5 percent of sales.
For the 2nd Quarter of FY 2022 ending June 25th 2022, net income was $13.3 million on total revenue of $83.8 million. Comparable figures for the 2nd quarter of fiscal 2022 ending June 26th 2021 were net income of $11.3 million on total revenue of $74.0 million. Diluted EPS increased from $0.38 for the 2nd quarter of fiscal 2021 to $0.44 for the most recent quarter.
The Company reiterated guidance for FY 2022 comprising a low single-digit increase in sales growth for FY 2022 with a diluted EPS range of $1.55 to $1.57. Systemwide restaurant openings will attain a range of 220 to 235 units
Wingstop operates 1,858 stores of which 39 U.S. locations are company-owned with 219 franchised operations in international markets.
In commenting on the quarter Michael Skipworth, president and CEO stated "Our second quarter results demonstrate the resiliency and underlying strength of the Wingstop brand as the unit economics have continued to strengthen throughout 2022, fueling another record number of net new openings this quarter." He added "We are in a unique position for the back half of 2022 where we are benefiting from meaningful deflation in bone-in wings, have a proven playbook, along with sales-driving levers that give us confidence in our ability to deliver on our outlook for 2022."
On June 25th, WING posted assets of $395.4 million, of which $99.2 million comprised goodwill and trademarks against long-term debt of $709.6 million. The Company had an intraday market capitalization of $3,120 million on July 29th. WING trades with a forward P/E of 69.9 and has ranged over a 52-week period from $67.67 to $187.35 with a 50-day moving average of $84.80. Twelve-month trailing operating margin was 23.5 percent and profit margin 13.3 percent. Return on assets over the past twelve months was 11.7 percent. At close of trading on July 27th pre-release, WING was priced at $100.31. At close of trading on July 28th WING priced at $119.74. On March 1st after announcing new financing, WING closed at $146.82.