Fast-food chain Wingstop (NASDAQ: WING) will be reporting earnings tomorrow before the bell. Here’s what you need to know.
Wingstop beat analysts’ revenue expectations by 7.3% last quarter, reporting revenues of $155.7 million, up 45.3% year on year. It was a strong quarter for the company, with a decent beat of analysts’ earnings estimates.
Is Wingstop a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Wingstop’s revenue to grow 36.5% year on year to $159.9 million, improving from the 26.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.96 per share.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 7 upward revisions over the last 30 days (we track 20 analysts). Wingstop has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 5.9% on average.
Looking at Wingstop’s peers in the restaurants segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Domino's delivered year-on-year revenue growth of 5.1%, missing analysts’ expectations by 1.6%, and Texas Roadhouse reported revenues up 13.5%, in line with consensus estimates. Domino's traded up 4% following the results while Texas Roadhouse was also up 3.6%.
Read our full analysis of Domino’s results here and Texas Roadhouse’s results here.
There has been positive sentiment among investors in the restaurants segment, with share prices up 5.5% on average over the last month. Wingstop is down 12.2% during the same time and is heading into earnings with an average analyst price target of $418.01 (compared to the current share price of $365.37).
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