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Thursday, February 22, 2018

=Wingstop (WING) reported earnings on Thur 22 Feb 2018 (a/h)

Wingstop (preannounced) beats on EPS by $0.01, beats on revs; guides FY18 EPS below consensus 
  • Reports Q4 (Dec) earnings of $0.17 per share, $0.01 better than the Capital IQ Consensus of $0.16; revenues rose 14.1% year/year to $28.29 mln vs the $27.49 mln Capital IQ Consensus.
    • System-wide restaurant count increased 13.5% to 1,133 global locations
    • Domestic same store sales increased 5.2%
    • Royalty revenue and franchise fees increased $2.7 million to $18.3 million from $15.6 million in the fiscal fourth quarter last year.
    • Company-owned restaurant sales increased $0.9 million to $10.0 million from $9.1 million in the fiscal fourth quarter last year.
  • Co issues downside guidance for FY18, sees EPS of ~$0.75, excluding non-recurring items, vs. $0.84 Capital IQ Consensus Estimate.
  • Company is reiterating its long-term targets and providing an update on certain items that will impact how Wingstop reports its financials in 2018.
    • 10%+ system-wide unit growth
    • Low single digit domestic same store sales growth
    • Adjusted EBITDA growth of 13% - 15%
Wingstop On Call discusses 2018 guidance/revised 2017 adj. EPS numbers
  • FY 17 Adjusted net income increased 29.0% to $21.8 million, or $0.74 per diluted share vs then-estimates of $0.73/share
  • The co notes that the new FY 18 EPS guidance of ~$0.75 is comparable to  fully diluted Adj. EPS of $0.69 for fiscal year 2017, which has been restated to reflect the new revenue recognition standards. 
  • to break this down more.. the previous estimates for 2018 were for 15% EPS growth.. now that the co has guided for ~$0.75/share in FY 18 EPS vs restated benchmark of $0.69/share EPS in 2017 than the guidance is calling for 9% EPS growth, including the tax benefit. Excluding the tax benefit though would put 2017 adj. EPS at $0.61 though would mean the FY 18 guidance is actually calling for 23% EPS growth (beating the 15% EPS growth estimates)

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