American fast-food chain Wingstop has reported a net income of $27.48m for the second quarter (Q2) of 2024, a surge of almost 70% from $16.18m a year previously.
However, net income has fallen marginally from the $28.74 million reported in Q1 2024.
For the quarter ended 29 June 2024, Wingstop’s diluted earnings per share also saw an increase, reaching $0.93 from $0.54 in Q2 2023.
This shows a minor drop from the $0.98 per diluted share recorded in Q1 2024.
Wingstop’s total revenue surged by 45.3% to $155.69m in Q2 2024, up from $107.17m in the same quarter of the previous year. This marks an increase from the $145.78m reported in Q1 2024.
Royalty revenue, franchise fees and other income streams for Wingstop increased to $71.16m in Q2 2024 - a $23.2m rise from $47.98m last year.
Advertising fees for Wingstop saw an uptick, reaching $54.65m from $36.59m a year previously.
Sales from company-owned restaurants grew by $7.3m to $29.88m in Q2 2024, compared to $22.59m in Q2 2023.
System-wide sales for Wingstop increased by 45.2% to $1.17bn in Q2 2024, up from $810m in Q2 2023.
Domestic same-store sales continued to show growth, with a 28.7% increase in Q2 2024 compared to a 16.8% growth in Q2 2023 and a 21.6% increase in Q1 2024.
Average unit volume (AUV) for domestic restaurants rose to $2.03m in Q2 2024, up from $1.70m in Q2 2023.
Digital sales maintained a steady rate, accounting for 68.3% of system-wide sales in Q2 2024, consistent with the previous quarter.
Operating income for Wingstop also saw an increase, reaching $41.22m in Q2 2024 from $26.45m in Q2 2023.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for the company showed a 50.7% increase to $51.77m, compared to $34.35m in Q2 2023.
As of 29 June 2024, Wingstop's restaurant count stood at 2,352 system-wide, including 2,040 in the US, with 1,988 franchised and 52 company-owned, alongside 312 franchised restaurants in international markets and US territories.
Q2 2024 saw 73 net new Wingstop restaurant openings system-wide.
Wingstop president and CEO Michael Skipworth said: “With same-store sales growth of 28.7%, driven primarily by transactions, our AUVs now exceed $2.0m, a target we set only two years ago when AUVs just crossed $1.5m. Due to the strength and staying power of our multi-year strategies, we believe we have line of sight to a new AUV target of $3m.
“This growth in AUVs has further enhanced our best-in-class unit economics, and as we continue to open new restaurants at a record pace, we believe there is an opportunity to more than triple our current US footprint.”
