Q1 2024 Wingstop Inc Earnings Call Transcript
Key Points
- Wingstop Inc (WING) reported a significant 21.6% same-store sales growth, primarily driven by transaction growth.
- The company opened 65 net new restaurants, reflecting a 14% growth rate, and is on track to open between 275 and 295 new restaurants in 2024.
- Adjusted EBITDA reached $50.3 million, marking a 45% growth rate over the previous year.
- Digital sales accounted for 68% of total sales in Q1, with the rollout of the proprietary tech stack, MyWingstop, enhancing digital transaction capabilities.
- International expansion is strong, with markets like the U.K. showing AUVs exceeding $2.5 million, and new markets like Canada, Puerto Rico, and Korea performing well.
- Despite strong growth, there is an acknowledged need to close the gap in brand awareness compared to top QSRs, indicating significant marketing and outreach efforts are still required.
- The company anticipates a need for increased investments in technology and supply chain to support continued growth, which could impact short-term profitability.
- Wingstop Inc (WING) faces macroeconomic uncertainties, including potential consumer spending pullbacks and election year unpredictability.
- The company's SG&A expenses increased by $1.5 million compared to the previous year, driven by investments to support long-term growth.
- While digital sales are high, there is a continuous need to innovate and enhance the digital customer experience to maintain competitive edge and customer engagement.
Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Wingstop Fiscal First Quarter 2024 Earnings Conference Call. (Operator Instructions) Please note that this conference is being recorded today, Wednesday, May 1, 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 the Fiscal First 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 risks that could affect our
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