DALLAS, July 28, 2021 /PRNewswire/ -- Wingstop Inc.
("Wingstop" or the "Company") (NASDAQ: WING) today announced
financial results for the fiscal second quarter ended June 26,
2021.
Highlights for the fiscal second quarter 2021 compared to the
fiscal second quarter 2020:
- System-wide sales increased 15.8% to $589.7 million
- 45 net new openings in the fiscal second quarter 2021, an
increase of 13.1%
- Domestic same-store sales increased 2.1%
- Domestic restaurant AUV increased to approximately $1.6 million, compared to $1.4 million in the prior fiscal second
quarter
- Digital sales increased to 64.5% of sales, compared to 63.7% in
the prior fiscal second quarter
- Total revenue increased 11.9% to $74.0
million
- Net income was $11.3 million, or
$0.38 per diluted share, compared to
net income of $11.5 million, or
$0.39 per diluted share in the prior
fiscal second quarter. Adjusted net income* and adjusted earnings
per diluted share*, both non-GAAP measures, increased 13.1% to
$11.3 million and $0.38 per diluted share, compared to $10.0 million and $0.34 per diluted share in the prior fiscal
second quarter
- Adjusted EBITDA*, a non-GAAP measure, increased 9.5% to
$22.9 million
* Adjusted EBITDA, adjusted net income, and adjusted diluted
earnings per share are non-GAAP measures. Reconciliations of
adjusted EBITDA, adjusted net income, and adjusted earnings per
diluted share to the most directly comparable financial measure
presented in accordance with accounting principles generally
accepted in the United States
("GAAP") are set forth in the schedule accompanying this release.
See "Non-GAAP Financial Measures."
"Our results in the second quarter continue to prove the
strength of our brand and our growth strategies. We successfully
lapped last year's outstanding results and generated domestic
same-store sales growth of 2.1% during this year's fiscal second
quarter, or 34.0% on a two-year basis, an acceleration from the
30.6% we saw in the first quarter," commented Charlie Morrison, Chairman and Chief Executive
Officer of Wingstop. "Despite the challenging commodity
environment, we had another record quarter for development and have
now opened more than 200 restaurants during the last 12 months,
highlighting our brand partners' continued excitement to grow with
our brand. We believe we are well positioned to execute against our
strategic long-term growth drivers."
Key operating metrics for the fiscal second quarter 2021
compared to the fiscal second quarter 2020:
|
Thirteen Weeks
Ended
|
|
June 26,
2021
|
|
June 27,
2020
|
Number of system-wide
restaurants open at end of period
|
1,624
|
|
|
1,436
|
|
Number of domestic
franchise restaurants open at end of period
|
1,415
|
|
|
1,244
|
|
Number of
international franchise restaurants open at end of
period
|
175
|
|
|
162
|
|
System-wide sales (in
thousands)
|
$
|
589,665
|
|
|
$
|
509,045
|
|
Domestic restaurant
AUV (in thousands)
|
$
|
1,556
|
|
|
$
|
1,366
|
|
Domestic same-store
sales growth
|
2.1
|
%
|
|
31.9
|
%
|
Company-owned
domestic same store sales growth
|
(3.1)
|
%
|
|
24.7
|
%
|
Net income (in
thousands)
|
$
|
11,312
|
|
|
$
|
11,539
|
|
Adjusted net income
(in thousands)
|
$
|
11,312
|
|
|
$
|
10,006
|
|
Adjusted EBITDA (in
thousands)
|
$
|
22,882
|
|
|
$
|
20,888
|
|
Fiscal second quarter 2021 financial results
Total revenue for the fiscal second quarter 2021 increased to
$74.0 million from $66.1 million in the fiscal second quarter last
year. Royalty revenue, franchise fees and other increased
$5.3 million primarily due to
domestic same-store sales growth of 2.1% as well as 184 net
franchise restaurant openings since June 27, 2020. Advertising
fees increased $2.7 million due to
domestic system-wide sales growth in the fiscal quarter ended
June 26, 2021 compared to the fiscal quarter ended
June 27, 2020. Company-owned restaurant sales were comparable
to the prior year period.
Cost of sales increased to $14.2
million from $13.4 million in
the fiscal second quarter of the prior year. As a percentage of
company-owned restaurant sales, cost of sales increased to 77.7%
from 73.1% in the prior year comparable period. The increase was
primarily due to a 64.8% increase in the cost of bone-in chicken
wings as compared to the prior year period, in which we experienced
unusually significant deflation in the cost of bone-in chicken
wings.
Advertising expenses were $23.3
million compared to $20.4
million in the fiscal second quarter of the prior year
primarily due to domestic system-wide sales growth. Advertising
expenses are recognized at the same time as the related revenue,
which does not necessarily correlate to the actual timing of the
related advertising spend.
Selling, general & administrative expense ("SG&A")
increased $2.7 million to
$16.1 million from $13.4 million in the fiscal second quarter of the
prior year. The increase in SG&A expense was primarily due
to an increase of $2.0 million in
headcount related expenses to support the growth in our business,
an increase of $0.5 million in
stock-based compensation expense, and an increase of $1.0 million in professional fees to support the
Company's strategic initiatives. These increases were partially
offset by a decrease of $1.0 million
related to a donation made in the prior year period to the National
Restaurant Employee Relief Fund to support restaurant workers in
times of need.
Interest expense, net was $3.7
million in the fiscal second quarter of 2021, a decrease of
$0.5 million, or 11.6%, compared to
$4.2 million in the prior fiscal
period. The decrease was due to the refinancing of our securitized
financing facility on October 30,
2020, which increased our outstanding debt by $162.4 million and reduced our interest rate from
4.97% to 2.84%.
Net income was $11.3 million, or
$0.38 per diluted share, compared to
net income of $11.5 million, or
$0.39 per diluted share, in the
fiscal second quarter of the prior year. Adjusted net income, which
excludes a $2.0 million gain
resulting from the re-franchise of company-owned restaurants to a
franchisee during the prior year period, increased 13.1% to
$11.3 million and $0.38 per diluted share, compared to $10.0 million and $0.34 per diluted share in the prior fiscal
second quarter.
Change in Presentation
Beginning in the fiscal first quarter 2021, we have reclassified
headcount related expenses that support our national advertising
fund to Advertising expenses on the Consolidated Statements of
Operations. These expenses were previously presented within
SG&A and totaled $1.9 million and
$1.8 million for each of the thirteen
weeks ended June 26, 2021 and June 27, 2020,
respectively. Prior period amounts have been reclassified to
conform to the current presentation. This reclassification had no
impact on operating income, the consolidated balance sheets or
statements of cash flows.
Financial Outlook
Consistent with our three- to five-year outlook, the Company
reiterates mid-single digit domestic same store sales growth.
Additionally, the Company expects the following for the fiscal year
ending December 25, 2021:
- Unit growth of 12%+
- Food, Beverage and Packaging costs of approximately 44%, as a
percentage of company owned restaurant sales and total cost of
sales of approximately 80%, as a percentage of company owned
restaurant sales
- SG&A of $64.8 to 66.8
million; and
- Adjusted SG&A, a non-GAAP measure, of between $55.1 - $56.6
million. A reconciliation of Adjusted SG&A to SG&A,
the nearest applicable GAAP measure, is provided below:
|
2021
Outlook
|
|
Low
|
|
High
|
SG&A,
reported
|
$
|
64.8
|
|
|
$
|
66.8
|
|
Stock compensation
expense
|
9.7
|
|
|
10.2
|
|
Adjusted SG&A
(a)
|
$
|
55.1
|
|
|
$
|
56.6
|
|
|
(a)
Adjusted SG&A is a non-GAAP measure.
|
Restaurant Development
As of June 26, 2021, there were 1,624 Wingstop restaurants
system-wide. This included 1,449 restaurants in the United States, of which 1,415 were
franchised restaurants and 34 were company-owned, and 175
franchised restaurants in international markets. During the fiscal
second quarter 2021, there were 45 net system-wide Wingstop
restaurant openings.
Quarterly Dividend
In recognition of the Company's strong cash flow generation,
confidence in the business, and our commitment to returning value
to stockholders, our board of directors approved a 21% increase in
the quarterly dividend payable to Wingstop stockholders from
$0.14 to $0.17 per share of common stock, resulting in a
total dividend of approximately $5.06 million. This dividend will be paid on
September 3, 2021 to stockholders of record as of
August 13, 2021.
The following definitions apply to these terms as used in
this release:
Domestic average unit volume ("AUV") consists of the
average annual sales of all restaurants that have been open for a
trailing 52-week period or longer. This measure is calculated by
dividing sales during the applicable period for all restaurants
being measured by the number of restaurants being measured.
Domestic AUV includes revenue from both company-owned and
franchised restaurants. Domestic AUV allows management to assess
our company-owned and franchised restaurant economics. Changes in
domestic AUV are primarily driven by increases in same-store sales
and are also influenced by opening new restaurants.
Domestic same-store sales reflect the change in
year-over-year sales for the comparable restaurant base. We define
the comparable restaurant base to include those restaurants open
for at least 52 full weeks. This measure highlights the performance
of existing restaurants, while excluding the impact of new
restaurant openings and permanent closures.
System-wide sales represents net sales for all of
our company-owned and franchised restaurants, as reported by
franchisees.
Adjusted EBITDA is defined as net income before
interest expense, net, income tax expense, and depreciation and
amortization (EBITDA) further adjusted for losses on debt
extinguishment and refinancing transactions, transaction costs,
costs and fees associated with investments in our strategic
initiatives, gains and losses on the disposal of assets, and
stock-based compensation expense. We caution investors that amounts
presented in accordance with our definitions of EBITDA and Adjusted
EBITDA may not be comparable to similar measures disclosed by our
competitors, because not all companies and analysts calculate
EBITDA and Adjusted EBITDA in the same manner.
Adjusted net income is defined as net income
adjusted for transaction costs, costs and fees associated with
investments in our strategic initiatives, and related tax
adjustments.
Adjusted net income per diluted share is defined as
adjusted net income divided by weighted average diluted share
count.
Adjusted SG&A is defined as selling, general and
administrative expenses adjusted for losses on debt extinguishment
and refinancing transactions, transaction costs, costs and fees
associated with investments in our strategic initiatives, and
stock-based compensation expense.
Conference Call and Webcast
Chairman and Chief Executive Officer, Charlie Morrison, and Chief Financial Officer,
Michael Skipworth, will host a
conference call today to discuss the fiscal second quarter 2021
financial results at 10:00 AM Eastern
Time.
The conference call can be accessed live by dialing
1-877-259-5243 or 1-412-317-5176 (international). A replay will be
available two hours after the call and can be accessed by dialing
1-877-344-7529 or 1-412-317-0088 (international) and entering the
passcode 10157790. The replay will be available through
Wednesday, August 4, 2021.
The conference call will also be webcast live and later archived
on the investor relations section of Wingstop's corporate website
at ir.wingstop.com under the 'News & Events' section.
About Wingstop
Founded in 1994 and headquartered in Dallas, TX, Wingstop Inc. (NASDAQ: WING)
operates and franchises over 1,600 locations worldwide. The Wing
Experts are dedicated to Serving the World Flavor through an
unparalleled guest experience and offering of classic wings,
boneless wings and tenders, always cooked to order and hand
sauced-and-tossed in fans' choice of 11 bold, distinctive flavors.
Wingstop's menu also features signature sides including fresh-cut,
seasoned fries and freshly-made ranch and bleu cheese dips. In
addition, Wingstop launched virtual brand Thighstop in June 2021 featuring crispy bone-in and boneless
thighs sauced and tossed in Wingstop's 11 signature flavors,
available through Thighstop.com and DoorDash.
In fiscal year 2020, Wingstop's system-wide sales increased
28.8% year-over-year to approximately $2.0
billion, marking the 17th consecutive year of same store
sales growth, and Wingstop achieved over 700% stockholder return
since its 2015 initial public offering. With a vision of becoming a
Top 10 Global Restaurant Brand, it's system is comprised of
independent franchisees, or brand partners, who account for
approximately 98% of Wingstop's total restaurant count of 1,624 as
of June 26, 2021. During the fiscal quarter ended
June 26, 2021, Wingstop opened 45 net new restaurants, an
increase of 13.1%, and announced domestic same-store sales
increased 2.1%. During the fiscal quarter ended June 26, 2021,
Wingstop generated 64.5% of sales via digital channels including
Wingstop.com and the Wingstop app.
A key to Wingstop's success is the Wingstop Way, which includes
a core value system of being Authentic, Entrepreneurial,
Service-minded, and Fun. This value system extends to its
environmental, social and governance platform as Wingstop seeks to
provide value to all stakeholders.
The Company has been ranked on Entrepreneur Magazine's "150
Strongest-growing Franchises" and "The World's Best Franchises"
(2020), Franchise Business Review's "Top Food Franchises" (2020),
Nation's Restaurant News' "Top 200 Restaurant Chains" (2020), Fast
Casual's "Top 100 Movers & Shakers" (2020), and named to The
Stevie Awards for Great Employers (2020).
For more information visit www.wingstop.com or
www.wingstop.com/own-a-wingstop and follow @Wingstop on Twitter and
Instagram and at Facebook.com/Wingstop. Learn more about Wingstop's
involvement in its local communities at
www.wingstopcharities.org.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are
prepared and presented in accordance with GAAP, we use non-GAAP
financial measures, including those indicated above. By providing
non-GAAP financial measures, together with a reconciliation to the
most comparable GAAP measure, we believe we are enhancing
investors' understanding of our business and our results of
operations, as well as assisting investors in evaluating how well
we are executing our strategic initiatives. These measures are not
intended to be considered in isolation or as substitutes for, or
superior to, financial measures prepared and presented in
accordance with GAAP. The non-GAAP measures used in this press
release may be different from the measures used by other companies.
A reconciliation of each measure to the most directly comparable
GAAP measure is available in this news release. In addition, the
Current Report on Form 8-K furnished to the SEC concurrent with the
issuance of this press release includes a more detailed description
of each of these non-GAAP financial measures, together with a
discussion of the usefulness and purpose of such measures.
Forward-looking Statements
Certain statements contained in this news release, as well as
other information provided from time to time by Wingstop Inc. or
its employees, may contain forward-looking statements that involve
risks and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. You can
identify forward-looking statements by the fact that they do not
relate strictly to historical or current facts. These statements
may include words such as "guidance," "anticipate," "estimate,"
"expect," "forecast," "outlook," "target," "project," "potential,"
"plan," "intend," "believe," "think," "confident," "may," "should,"
"can," "have," "will," "seek," "likely," "future" and other words
and terms of similar meaning in connection with any discussion of
the timing or nature of future operating or financial performance
or other events. Examples of forward-looking statements in this
news release include our 2021 fiscal year outlook for SG&A
expenses, Adjusted SG&A expenses, Food, Beverage and Packaging
costs, and unit growth, as well as our three- to five- year outlook
for domestic same store sales growth, and statements regarding our
progress toward our goal of becoming a top 10 global restaurant
brand. Any such forward-looking statements are not guarantees of
performance or results and involve risks, uncertainties (some of
which are beyond the Company's control), and assumptions. Although
we believe any forward-looking statements are based on reasonable
assumptions, you should be aware that many factors could affect our
actual financial results and cause them to differ materially from
those anticipated in any forward-looking statements.
Our ability to achieve or maintain sales and earnings may be
affected by COVID-19 related factors, including, among others: the
length of time that the pandemic continues; the inability of
workers, including third party delivery drivers, to work due to
illness, quarantine, or government mandates; temporary store
closures due to reduced workforces or government mandates; the
unemployment rate; the extent and effectiveness of any COVID-19
stimulus packages; the ability of our franchisees to operate their
restaurants during the pandemic and pay royalties; and trends in
consumer spending during and after the end of the pandemic. Please
refer to the risk factors discussed in our Annual Report on Form
10-K and Quarterly Reports on Form 10-Q, which can be found at the
SEC's website www.sec.gov. The discussion of these risks is
specifically incorporated by reference into this news release.
Any forward-looking statement made by Wingstop Inc. in this
press release speaks only as of the date on which it is made. We
undertake no obligation to update any forward-looking statement,
whether as a result of new information, future developments or
otherwise, except as may be required by law.
Media Contact
Megan
Sprague
972-331-9155
Media@wingstop.com
Investor Contacts
Alex
Kaleida and Susana
Arevalo
972-331-8484
IR@wingstop.com
WINGSTOP INC. AND
SUBSIDIARIES
|
Consolidated
Balance Sheets
|
(amounts in
thousands, except share and per share data)
|
|
|
June 26,
2021
|
|
December
26,
2020
|
|
(Unaudited)
|
|
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
43,504
|
|
|
$
|
40,858
|
|
Restricted
cash
|
4,657
|
|
|
4,815
|
|
Accounts receivable,
net
|
5,854
|
|
|
4,929
|
|
Prepaid expenses and
other current assets
|
9,132
|
|
|
5,532
|
|
Advertising fund
assets, restricted
|
21,561
|
|
|
16,486
|
|
Total current
assets
|
84,708
|
|
|
72,620
|
|
Property and
equipment, net
|
39,598
|
|
|
27,948
|
|
Goodwill
|
53,690
|
|
|
53,690
|
|
Trademarks
|
32,700
|
|
|
32,700
|
|
Customer
relationships, net
|
10,951
|
|
|
11,600
|
|
Other non-current
assets
|
12,617
|
|
|
13,007
|
|
Total
assets
|
$
|
234,264
|
|
|
$
|
211,565
|
|
Liabilities and
stockholders' deficit
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
3,812
|
|
|
$
|
3,658
|
|
Other current
liabilities
|
25,072
|
|
|
26,729
|
|
Current portion of
debt
|
1,200
|
|
|
3,600
|
|
Advertising fund
liabilities
|
21,561
|
|
|
16,486
|
|
Total current
liabilities
|
51,645
|
|
|
50,473
|
|
Long-term debt,
net
|
468,774
|
|
|
466,933
|
|
Deferred revenues,
net of current
|
26,156
|
|
|
24,962
|
|
Deferred income tax
liabilities, net
|
5,416
|
|
|
4,480
|
|
Other non-current
liabilities
|
4,516
|
|
|
6,027
|
|
Total
liabilities
|
556,507
|
|
|
552,875
|
|
Commitments and
contingencies
|
|
|
|
Stockholders'
deficit
|
|
|
|
Common stock, $0.01
par value; 100,000,000 shares authorized; 29,743,375
and 29,687,123 shares issued and outstanding as of June 26,
2021 and
December 26, 2020, respectively
|
298
|
|
|
297
|
|
Additional
paid-in-capital
|
594
|
|
|
421
|
|
Retained
deficit
|
(323,026)
|
|
|
(342,028)
|
|
Accumulated other
comprehensive loss
|
(109)
|
|
|
—
|
|
Total stockholders'
deficit
|
(322,243)
|
|
|
(341,310)
|
|
Total liabilities
and stockholders' deficit
|
$
|
234,264
|
|
|
$
|
211,565
|
|
WINGSTOP INC. AND
SUBSIDIARIES
|
Consolidated
Statements of Operations
|
(amounts in
thousands, except per share data)
|
|
|
Thirteen Weeks
Ended
|
|
June 26,
2021
|
|
June 27,
2020
|
|
(Unaudited)
|
|
(Unaudited)
|
Revenue:
|
|
|
|
Royalty revenue,
franchise fees and other
|
$
|
33,135
|
|
|
$
|
27,858
|
|
Advertising
fees
|
22,577
|
|
|
19,923
|
|
Company-owned
restaurant sales
|
18,288
|
|
|
18,324
|
|
Total
revenue
|
74,000
|
|
|
66,105
|
|
Costs and
expenses:
|
|
|
|
Cost of sales
(1)
|
14,207
|
|
|
13,387
|
|
Advertising
expenses
|
23,301
|
|
|
20,424
|
|
Selling, general and
administrative
|
16,066
|
|
|
13,375
|
|
Depreciation and
amortization
|
1,523
|
|
|
1,398
|
|
Gain on sale of
restaurants and other expenses, net
|
—
|
|
|
(2,016)
|
|
Total costs and
expenses
|
55,097
|
|
|
46,568
|
|
Operating
income
|
18,903
|
|
|
19,537
|
|
Interest expense,
net
|
3,724
|
|
|
4,214
|
|
Income before income
tax expense
|
15,179
|
|
|
15,323
|
|
Income tax
expense
|
3,867
|
|
|
3,784
|
|
Net income
|
$
|
11,312
|
|
|
$
|
11,539
|
|
|
|
|
|
Earnings per
share
|
|
|
|
Basic
|
$
|
0.38
|
|
|
$
|
0.39
|
|
Diluted
|
$
|
0.38
|
|
|
$
|
0.39
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
Basic
|
29,739
|
|
|
29,588
|
|
Diluted
|
29,873
|
|
|
29,793
|
|
|
|
|
|
Dividends per
share
|
$
|
0.14
|
|
|
$
|
0.11
|
|
|
|
(1)
|
Cost of sales
includes all operating expenses of company-owned restaurants,
including advertising expenses, and excludes depreciation and
amortization, which are presented separately.
|
WINGSTOP INC. AND
SUBSIDIARIES
|
Unaudited
Supplemental Information
|
Cost of Sales
Margin Analysis
|
(amounts in
thousands)
|
|
|
Thirteen Weeks
Ended
|
|
June 26,
2021
|
|
June 27,
2020
|
|
In
dollars
|
|
As a % of
company-
owned
restaurant sales
|
|
In
dollars
|
|
As a %
of
company-
owned
restaurant sales
|
Cost of
sales:
|
|
|
|
|
|
|
|
Food, beverage and
packaging costs
|
$
|
8,023
|
|
|
43.9
|
%
|
|
$
|
5,954
|
|
|
32.5
|
%
|
Labor costs
|
3,774
|
|
|
20.6
|
%
|
|
4,687
|
|
|
25.6
|
%
|
Other restaurant
operating expenses
|
2,820
|
|
|
15.4
|
%
|
|
3,086
|
|
|
16.8
|
%
|
Vendor
rebates
|
(410)
|
|
|
(2.2)
|
%
|
|
(340)
|
|
|
(1.9)
|
%
|
Total cost of
sales
|
$
|
14,207
|
|
|
77.7
|
%
|
|
$
|
13,387
|
|
|
73.1
|
%
|
WINGSTOP INC. AND
SUBSIDIARIES
|
Unaudited
Supplemental Information
|
Restaurant
Count
|
|
|
Thirteen Weeks
Ended
|
|
June 26,
2021
|
|
June 27,
2020
|
Domestic
Franchised Activity:
|
|
|
|
Beginning of
period
|
1,371
|
|
|
1,221
|
|
Openings
|
44
|
|
|
23
|
|
Closures
|
—
|
|
|
(2)
|
|
Re-franchised by
Company
|
—
|
|
|
2
|
|
Restaurants end of
period
|
1,415
|
|
|
1,244
|
|
|
|
|
|
Domestic
Company-Owned Activity:
|
|
|
|
Beginning of
period
|
33
|
|
|
32
|
|
Openings
|
1
|
|
|
—
|
|
Closures
|
—
|
|
|
—
|
|
Re-franchised to
franchisees
|
—
|
|
|
(2)
|
|
Restaurants end of
period
|
34
|
|
|
30
|
|
|
|
|
|
Total Domestic
Restaurants
|
1,449
|
|
|
1,274
|
|
|
|
|
|
International
Franchised Activity:
|
|
|
|
Beginning of
period
|
175
|
|
|
160
|
|
Openings
|
4
|
|
|
2
|
|
Closures
|
(4)
|
|
|
—
|
|
Restaurants end of
period
|
175
|
|
|
162
|
|
|
|
|
|
Total System-wide
Restaurants
|
1,624
|
|
|
1,436
|
|
WINGSTOP INC. AND
SUBSIDIARIES
|
Non-GAAP Financial
Measures - EBITDA and Adjusted EBITDA
|
(Unaudited)
|
(amounts in
thousands)
|
|
|
Thirteen Weeks
Ended
|
|
June 26,
2021
|
|
June 27,
2020
|
Net income
|
$
|
11,312
|
|
|
$
|
11,539
|
|
Interest expense,
net
|
3,724
|
|
|
4,214
|
|
Income tax
expense
|
3,867
|
|
|
3,784
|
|
Depreciation and
amortization
|
1,523
|
|
|
1,398
|
|
EBITDA
|
$
|
20,426
|
|
|
$
|
20,935
|
|
Additional
adjustments:
|
|
|
|
Gain on disposal of
assets, net (a)
|
—
|
|
|
(2,016)
|
|
Stock-based
compensation expense (b)
|
2,456
|
|
|
1,969
|
|
Adjusted
EBITDA
|
$
|
22,882
|
|
|
$
|
20,888
|
|
|
|
(a)
|
Represents a gain
resulting from the re-franchise of company-owned restaurants to a
franchisee which is included in Gain on sale of restaurants and
other expenses, net in the Consolidated Statements of
Operations.
|
(b)
|
Includes non-cash, stock-based
compensation.
|
WINGSTOP INC. AND
SUBSIDIARIES
|
Non-GAAP Financial
Measures - Adjusted Net Income and Adjusted EPS
|
(Unaudited)
|
(amounts in
thousands, except per share data)
|
|
|
Thirteen Weeks
Ended
|
|
June 26,
2021
|
|
June 27,
2020
|
Numerator:
|
|
|
|
Net income
|
$
|
11,312
|
|
|
$
|
11,539
|
|
Adjustments:
|
|
|
|
Gain on disposal of
assets, net (a)
|
—
|
|
|
(2,016)
|
|
Tax effect of
adjustments (b)
|
—
|
|
|
483
|
|
Adjusted net
income
|
$
|
11,312
|
|
|
$
|
10,006
|
|
|
|
|
|
Denominator:
|
|
|
|
Weighted-average
shares outstanding - diluted
|
29,873
|
|
|
29,793
|
|
|
|
|
|
Adjusted earnings per
diluted share
|
$
|
0.38
|
|
|
$
|
0.34
|
|
|
|
(a)
|
Represents a gain
resulting from the re-franchise of company-owned restaurants to a
franchisee which is included in Gain on sale of restaurants and
other expenses, net in the Consolidated Statements of
Operations.
|
(b)
|
Represents the tax
effect of the aforementioned adjustments to reflect corporate
income taxes at an assumed effective tax rate of 24% for the
periods ended June 26, 2021 and June 27, 2020, which
includes provisions for U.S. federal income taxes, and assumes the
respective statutory rates for applicable state and local
jurisdictions.
|
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SOURCE Wingstop Restaurants Inc.