Despite delivering better-than-expected fourth-quarter results, Wingstop (WING) saw its stock decline on Wednesday. The Dallas-based chicken chain reported adjusted earnings per share of 64 cents, marking a 6.7% increase, although revenue growth slowed for the fourth consecutive quarter, reaching $127.1 million.
Systemwide sales for the quarter surged by 24.5% to $965.9 million, with domestic same-store sales soaring by 21.2%. Notably, digital sales accounted for 67% of systemwide sales, showcasing the company’s strong online presence. Additionally, Wingstop reported 115 net new store openings during the quarter.
CEO Michael Skipworth highlighted 2023 as the company’s strongest year on record, with domestic same-store sales increasing by 18.3% for the year, marking 20 consecutive years of gains.
For fiscal 2024, Wingstop anticipates mid-single-digit domestic same-store sales growth and plans to open 270 new global locations. However, despite these positive indicators, Wingstop’s stock fell by 4.4% following the results, reflecting a retreat from its recent gains. Nonetheless, the stock closed at a record high on Tuesday, having rallied approximately 21% year-to-date.
