The following is a summary of the Wingstop Inc. (WING) Q1 2024 Earnings Call Transcript:
Financial Performance:
Wingstop reported Q1 same-store sales growth of 21.6%, primarily driven by transaction growth.
The company opened 65 new restaurants, marking a 14% growth rate.
Adjusted EBITDA amounted to $50.3 million, a 45% growth rate over the prior year.
Company-owned restaurant sales totaled $28.5 million in Q1, an increase of $5.5 million, mainly due to a 6.2% increase in company-owned same-store sales.
Total revenue increased by 34.1% to $145.8 million from the prior year.
The company's 2024 comp guidance has been increased from mid-single-digits to low-double-digit same-store sales growth due to the strong start of the year.
Business Progress:
Wingstop plans the rollout of its proprietary tech stack, 'My Wingstop', by the end of Q2.
Using their growing customer database for targeted personalisation to increase customer conversion, retention rates, and interaction frequency.
A global expansion strategy anticipates 275 to 295 net new restaurant openings.
The advertising strategy diversified in live sports and creative media brought in new guests and increased the digital database to over 40 million users.
With the successful launch of the $0.70 boneless promotion contributing to high quality and value scores, they aim to improve service speed through tech investments.
The launch of 'My Wingstop' showed promising results in conversion rates.
Future ad fund surplus will be used to expand AUVs and enhance brand partner unit economics.
International expansion success with new deals anticipated in upcoming quarters.
More details: Wingstop IR
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