American restaurant chain Wingstop has reported an 83.5% surge in net income for the first quarter of 2024, with figures reaching $28.7m from $15.67m a year previously.
For the quarter ending 30 March 2024, Wingstop’s total revenues were $145.8m, a jump of 34% compared with $108.7m in the first quarter of 2023.
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The company experienced an $18.9m increase in royalty revenue and franchise fees, with $9.4m attributed to a 21.6% growth in domestic same-store sales while $7.2m was a result of net new franchise development.
Advertising fees also saw a significant uptick, increasing by $12.7m due to a 36.8% rise in system-wide sales for the first quarter (Q1) of 2024.
Sales from company-owned restaurants contributed an additional $5.5m, bolstered by the opening of seven net new company-owned restaurants since Q1 2023.
System-wide sales experienced a substantial increase of 36.8%, reaching $1.1bn, up from $822m a year previously.
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By GlobalDataWingstop noted that the domestic restaurant average unit volume (AUV) surpassed $1.9m, propelled by 21.6% growth in domestic same-store sales.
The expansion of Wingstop’s global presence was marked by the addition of 65 new restaurants during the quarter, bringing the total count to 2,279 locations worldwide.
This includes 1,974 restaurants in the US, 1,924 franchised and 50 company-owned, and 305 franchised restaurants in international markets and US territories.
However, the cost of sales also rose to $21.3m from $16.7m in Q1 2023.
As a percentage of company-owned restaurant sales, their cost increased to 74.5%, up from 72.4% a year previously.
Wingstop announced a quarterly dividend of $0.22 per share, resulting in a total dividend payout of $6.5m.
Wingstop president and CEO Michael Skipworth said: “Our fiscal first quarter 2024 showcased the momentum behind the Wingstop brand and the continued strength of our strategies, delivering 21.6% domestic same-store sales growth driven almost entirely by transaction growth.
“Our domestic AUV exceeded $1.9m, further strengthening best-in-class returns for our brand partners and strengthening our development pipeline, which gives us confidence in our ability to scale Wingstop into a Top 10 global restaurant brand.”
