Q3 2024 Wingstop Inc Earnings Call Transcript
Key Points
- Wingstop Inc (WING) reported a 20.9% increase in domestic same-store sales, primarily driven by transaction growth.
- The average unit volume (AUV) for Wingstop restaurants surpassed $2.1 million, up from $2 million last quarter and $1.8 million in the prior year.
- Wingstop Inc (WING) opened over 100 new restaurants in Q3, achieving a unit growth rate of 17%, marking a record for the company.
- The company has a strong development pipeline, expecting to open between 320 to 330 net new restaurants in 2024.
- Wingstop Inc (WING) has successfully implemented a supply chain strategy that mitigates volatility in food costs, maintaining food costs within the targeted mid-30% range.
- The company anticipates a potential slowdown in same-store sales growth in Q4, with implied guidance suggesting a deceleration.
- SG&A expenses increased by $9.2 million, driven by performance-based stock compensation and headcount-related expenses.
- Company-owned restaurant food costs were reported at 37%, higher than the system average due to a higher bone-in wing mix.
- The company is facing a competitive industry value environment, with many large QSRs pushing meal deals.
- There is a noted gap in brand awareness compared to more mature QSR brands, despite strong sales growth.
Good morning, ladies and gentlemen. And thank you for standing by. Welcome to the Wingstop fiscal third quarter, 2024 earnings conference call. (Operator Instructions)
Please note that this conference is being recorded today Wednesday, October 30, 2024. On the call today are Michael Skipworth, President and Chief Executive Officer; and Alex Kaleida, Senior Vice President and Chief Financial Officer. I would now like to turn the conference over to Alex. Please go ahead.
Thank you and welcome to our fiscal third quarter, 2024 earnings conference call for Wingstop. Our results were published earlier this morning and are available on our investor relations website at ir.wingstop.com.
Our discussion today includes forward-looking statements. These statements are not guarantees of future performance and are subject to numerous risks and uncertainties that could cause our actual results to differ materially from what we currently expect. Our SEC filings describe various
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