In a February 16th release, Wingstop Inc. (WING) posted financial results for the 4th quarter and fiscal 2021. 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 competitive environment still restrained by COVID.
For the 4th Quarter of FY 2021 ending December 25th 2021, net income was $6.9 million on total revenue of $72.0 million. Comparable figures for the 4th quarter of fiscal 2020 ending December 26th 2020 were a net loss of $6.4 million on total revenue of $63.3 million. EPS rose from a loss of $0.21 for the 4th quarter of fiscal 2020 to $0.23 for the most recent quarter.
For FY 2021 net earnings were $42.7 million on revenue of $282.5 million compared to net earnings of $23.3 on revenue of $248.8 million for FY 2020. EPS for FY 2021 attained $1.42 compared to $0.79 million for FY 2020.
In commenting on results, Charlie Morrison, Chairman and CEO stated, “Our fourth quarter and full year results reflect continued momentum in our brand, despite the challenging operating environment. Our Brand Partners understand the strength and resiliency of our simple operating model and are increasing new unit investments based on the sustaining topline growth and in anticipation of improving bottom-line performance" He added, "Wingstop reached new highs with domestic average unit values of $1.6 million and the opening of 193 global net new restaurants. Our 8.0% same store sales growth for 2021, or 29.4% on a two-year basis, marked our industry-leading 18th consecutive year of positive same store sales growth. We believe that our proactive investments in technology, combined with our talented team have positioned the brand for continued long-term growth. 2022 is starting with a record development pipeline. We believe our engine for growth will accelerate our progress towards becoming a Top 10 Global Restaurant Brand."
The Company provided guidance of single digit increase in sales growth for FY 2022. Wingstop has 1,731 stores of which 233 are company-owned.
On February 28th the management of Wingstop announced a restructuring of debt. Securitized notes to the value of $250 million would be issued the proceeds of which would be used to strengthen liquidity and for “corporate purposes” Wingstop has also renegotiated the $50 million variable funding note to allow for borrowing of up to $200 million subject to conditions.
On December 25th 2021, WING posted assets of $249.2 million, of which $89.5 million comprised goodwill and trademarks against long-term debt of $469.4 million. The Company had an intraday market capitalization of $4,180 million on March 1st. WING traded with a forward P/E of 79.4 and has ranged over a 52-week period from $112.49 to $187.35 with a 50-day moving average of $156.51. Twelve-month trailing operating margin was 24.9 percent and profit margin 15.1 percent. Return on assets over the past twelve months was 19.1 percent. At close of trading February 15th pre-release, WING was priced at $157.87. At 14H00 post-release on February 16th WING traded at at $164.24 and on March 1st after announcing new financing Wing was priced at $146.82 up 1.0 percent at market close