Wingstop up after quarterly profit beat
WING•Stock performance
As of the last close, the stock was down 43.5% year to date.
Outlook and analyst comment
Wingstop now expects domestic same-store sales to decline between 4% and 6% versus its prior forecast of a low-single-digit decline.
"Given the company's forward chicken contracts and declining prices, we think COGS (cost of goods sold) will continue to be favorable," said Logan Reich, analyst at RBC Capital Markets.
"Given depressed investor sentiment and 6 SSS (same-store sales) misses in the past 8 quarters, we think the guide down will be welcomed by investors" - RBC Capital Markets.
Shares rise after profit beat
Shares of restaurant chain Wingstop WING.O rose 7.6% to $145.08 after the company beat second-quarter profit estimates, helped by lower food, beverage and packaging costs, reflecting a decrease in the cost of bone-in chicken wings.
Revenue misses estimates as spending pressure continues
Wingstop posted second-quarter adjusted EPS of $1.18 versus estimates of $1.03, according to LSEG-compiled data.
Quarterly revenue rose 6.4% to $185.6 million, but missed estimates of $190.5 million, hurt by continued pressure on consumer spending.
The company's food, beverage and packaging costs at company-owned restaurants fell to 35.2% of sales in the quarter from 36.8% a year earlier.
