By Dean Seal
Wingstop said revenue surged in the fourth quarter from higher same-store sales and new franchises, though the top line came in below analyst forecasts.
The chicken-wing chain posted a profit of $26.8 million for the quarter ended Dec. 28, compared with $18.8 million in the same period a year earlier. Earnings were 92 cents a share, 6 cents higher than analysts had expected, according to FactSet.
Total revenue soared 27% to $161.8 million, shy of analyst estimates for $165 million. Company-owned restaurant sales and advertising fee revenue rose but missed projections, according to FactSet.
Shares fell 7.4% to $283.50 in premarket trading.
Royalty revenue and franchise fees were boosted by new franchises and a 10% rise in domestic same-store sales. Advertising fees meanwhile got a boost from system-wide sales rising more than 27% to $1.2 billion during the quarter.
The Dallas company said it expects U.S. same-store sales to rise in the low- to mid-single-digit percentage range for fiscal 2025 and for its global location count to rise 14% to 15%.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
February 19, 2025 08:27 ET (13:27 GMT)
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