Delivers 19th Consecutive Year of Domestic
Same Store Sales Growth and 13.2% Increase in Unit Count in
Fiscal Year 2022
DALLAS, Feb. 22,
2023 /PRNewswire/ -- Wingstop Inc. (NASDAQ: WING)
today announced financial results for the fiscal fourth quarter and
fiscal year ended December 31, 2022, periods that benefited
from a 53rd week as compared to fiscal 2021.
Highlights for the fiscal fourth quarter 2022 compared to the
fiscal fourth quarter 2021:
- System-wide sales increased 28.9% to $775.7 million
- 61 net new openings in the fiscal fourth quarter 2022
- Domestic same store sales increased 8.7%
- Domestic restaurant AUV of $1.6
million
- Digital sales of 63.2%, an increase of 1.9% to the prior fiscal
fourth quarter
- Total revenue increased 45.6% to $104.9
million
- Net income increased 155.2% to $17.6
million, or $0.59 per diluted
share, compared to net income of $6.9
million, or $0.23 per diluted
share in the prior fiscal fourth quarter
- Adjusted EBITDA, a non-GAAP measure, increased 71.6% to
$34.7 million, compared to adjusted
EBITDA of $20.2 million in the prior
fiscal fourth quarter
Highlights for the fiscal year 2022 compared to the fiscal
year 2021:
- System-wide sales increased 16.8% to $2.7 billion
- System-wide restaurant count increased 13.2% to 1,959 worldwide
locations with 228 net openings
- Domestic same store sales increased 3.4%
- Total revenue increased 26.6% to $357.5
million
- Net income increased 24.1% to $52.9
million, or $1.77 per diluted
share, compared to $42.7 million, or
$1.42 per diluted share, in the prior
fiscal year. Adjusted net income and adjusted earnings per diluted
share, both non-GAAP measures, increased 37.3% to $55.4 million, or $1.85 per diluted share, compared to $40.3 million, or $1.35 per diluted share in the prior fiscal
year
- Adjusted EBITDA, a non-GAAP measure, increased 23.1% to
$108.8 million, compared to adjusted
EBITDA of $88.4 million in the prior
fiscal year
Adjusted EBITDA, adjusted net income, adjusted earnings per
diluted share, and cost of sales excluding pre-opening expenses are
non-GAAP measures. Reconciliations of adjusted EBITDA, adjusted net
income, adjusted earnings per diluted share, and cost of sales
excluding pre-opening expenses 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."
"Wingstop delivered another record year in 2022 highlighted by
13.2% unit growth and an industry-leading 19th consecutive year of
positive same store sales growth. We delivered 8.7% domestic same
store sales growth over the prior fiscal fourth quarter, which was
driven entirely by transaction growth," said Michael Skipworth, President and Chief Executive
Officer. "The combination of strong top-line growth and meaningful
deflation in our business in 2022 has continued to strengthen our
brand partners' unit economics and positioned the brand for
continued long term growth on our path to scaling Wingstop into a
Top 10 Global Restaurant Brand."
Key operating metrics for the fiscal fourth quarter 2022
compared to the fiscal fourth quarter 2021:
|
Fiscal Quarter
Ended
|
|
December 31,
2022
|
|
December 25,
2021
|
Number of system-wide
restaurants open at end of period
|
1,959
|
|
1,731
|
Number of domestic
franchise restaurants open at end of period
|
1,678
|
|
1,498
|
Number of international
franchise restaurants open at end of period
|
238
|
|
197
|
System-wide sales (in
millions)
|
$
776
|
|
$
602
|
Domestic AUV (in
thousands)
|
$
1,606
|
|
$
1,592
|
Domestic same store
sales growth(1)
|
8.7 %
|
|
7.5 %
|
Company-owned domestic
same store sales growth(1)
|
2.6 %
|
|
5.3 %
|
Net income (in
thousands)
|
$
17,596
|
|
$
6,896
|
Adjusted net income (in
thousands)
|
$
18,059
|
|
$
7,272
|
Adjusted EBITDA (in
thousands)
|
$
34,659
|
|
$
20,198
|
|
|
|
|
|
|
(1) For
the fiscal fourth quarter 2022, same store sales percentages were
calculated excluding the 53rd week.
|
|
Fiscal fourth quarter 2022 financial results
Total revenue for the fiscal fourth quarter 2022 increased to
$104.9 million from $72.0 million in the fiscal fourth quarter last
year. Royalty revenue, franchise fees and other increased
$14.0 million primarily due to
domestic same store sales growth of 8.7%, 221 net franchise
restaurant openings since December 25, 2021, and $3.0 million of additional revenue from the 53rd
week. Advertising fees increased $13.5
million due to an increase in the national advertising fund
contribution rate to 5% from 4% effective the first day of the
fiscal second quarter 2022, a 28.9% increase in system-wide sales
in the fiscal fourth quarter 2022, and $2.7
million of additional advertising fees from the 53rd week.
Company-owned restaurant sales increased $5.3 million due to an increase of $3.1 million related to the increase in the
number of company-owned restaurants compared to the prior year
comparable period, a 2.6% increase in company-owned same store
sales driven by an increase in transactions, and $1.5 million of additional sales from the 53rd
week.
Cost of sales increased to $17.0
million from $14.4 million in
the fiscal fourth quarter of the prior year, and included
$0.1 million and $0.3 million in pre-opening expenses in the
fiscal fourth quarter 2022 and 2021, respectively. As a percentage
of company-owned restaurant sales, cost of sales (excluding
pre-opening expenses) decreased to 75.8% from 84.7% in the prior
year comparable period. The decrease was primarily driven by food,
beverage and packaging costs benefiting from a 49.3% decrease in
the cost of bone-in chicken wings as compared to the prior year
period. This benefit was partially offset by the opening of eight
restaurants in the New York City
market since the prior year comparable period, which have higher
rent and other operating costs.
Selling, general & administrative ("SG&A") increased
$0.3 million to $18.3 million from $18.0
million in the fiscal fourth quarter of the prior year. The
increase in SG&A was primarily due to an increase of
approximately $1.0 million related to
the 53rd week and $0.9 million in
headcount-related expenses to support the growth in our business.
These increases were partially offset by a decrease of $0.7 million in stock-based compensation expense
related primarily to stock awards forfeited during the fiscal
fourth quarter.
Interest expense, net was $5.3
million in the fiscal fourth quarter of 2022, an increase of
approximately $1.6 million, or 41.4%,
compared to $3.8 million in the
fiscal fourth quarter of the prior year. The increase was due to
the securitized financing transaction completed in March 2022, which increased our outstanding debt
by $250 million, as well as an
estimated $0.4 million of additional
interest expense related to the 53rd week.
Key Operating Metrics for the fiscal year 2022 compared to
the fiscal year 2021:
|
Fiscal Year
Ended
|
|
December 31,
2022
|
|
December 25,
2021
|
Number of system-wide
restaurants open at end of period
|
1,959
|
|
1,731
|
Number of domestic
franchise restaurants open at end of period
|
1,678
|
|
1,498
|
Number of international
franchise restaurants open at end of period
|
238
|
|
197
|
System-wide sales (in
millions)
|
$
2,739
|
|
$
2,345
|
Domestic AUV (in
thousands)
|
$
1,606
|
|
$
1,592
|
Domestic same store
sales growth(1)
|
3.4 %
|
|
8.0 %
|
Company-owned domestic
same store sales growth(1)
|
1.0 %
|
|
3.4 %
|
Net income (in
thousands)
|
$
52,947
|
|
$
42,658
|
Adjusted net income (in
thousands)
|
$
55,351
|
|
$
40,323
|
Adjusted EBITDA (in
thousands)
|
$
108,808
|
|
$
88,393
|
|
|
|
|
|
|
(1) For
the fiscal year 2022, same store sales percentages were calculated
excluding the 53rd week.
|
|
Fiscal year 2022 financial results
Total Revenue for fiscal year 2022 was $357.5 million, an increase of $75.0 million, or 26.6%, compared to $282.5 million in the prior fiscal year. Royalty
revenue, franchise fees and other increased $27.9 million primarily due to 221 net franchise
restaurant openings since December 25, 2021, same store sales
growth of 3.4%, and $3.0 million due
to additional revenue in the 53rd week. Advertising fees
increased $37.5 million due to a 16.8% increase in system-wide
sales during fiscal year 2022, an increase in the national
advertising fund contribution rate to 5% from 4% effective the
first day of the fiscal second quarter 2022, and $2.7 million of additional advertising fees from
the 53rd week. Additionally, during the prior fiscal year, a
$6.9 million non-recurring rebate of
advertising surplus was returned to franchisees, reducing the
revenue recognized in the prior fiscal year. Company-owned
restaurant sales increased $9.6
million primarily due to an increase of $7.7 million related to the increase in the
number of company-owned restaurants compared to the prior fiscal
year, company-owned same store sales growth of 1.0%, which was
driven by an increase in average ticket, and approximately
$1.5 million of additional sales from
the 53rd week.
Cost of sales increased to $63.4
million from $57.4 million in
the prior fiscal year and included $0.9
million and $0.5 million in
pre-opening expenses in the fiscal years 2022 and 2021,
respectively. As a percentage of company-owned restaurant sales,
cost of sales (excluding pre-opening expenses) decreased to 78.2%
from 81.0% in the prior year comparable period. The decrease was
primarily due to a 26.9% decrease in the cost of bone-in chicken
wings as compared to the prior fiscal year. This benefit was
partially offset by the opening of eight restaurants in the
New York City market since the
prior year comparable period, which have higher rent and other
operating costs.
SG&A expense was $67.1 million
in fiscal year 2022, an increase of $4.2
million, or 6.6%, compared to $62.9
million in the prior fiscal year. The increase in
SG&A expense was primarily due to an increase of $4.0 million in headcount related expenses to
support the growth in our business, an increase of $2.3 million in professional fees to support the
Company's strategic initiatives and approximately $1 million related to the
53rd week. These increases were partially offset by
a decrease of $5.4 million in
stock-based compensation expense primarily related to stock awards
forfeited in fiscal year 2022.
Interest expense, net was $21.2
million in fiscal year 2022, an increase of $6.2 million, or 41.7%, compared to $15.0 million in the prior fiscal year. This
increase was due to the securitized financing transaction completed
in March 2022, which increased our
outstanding debt by $250 million, as
well as an estimated $0.4 million of
additional interest expense related to the
53rd week.
Financial Outlook
The Company is reaffirming its three- to five-year outlook of
mid-single digit domestic same store sales growth. Additionally,
the Company expects the following for 2023, which is a 52-week
fiscal year:
- Approximately 240 global net new units;
- SG&A of between $82.0 -
$84.0 million;
- Stock-based compensation expense of between $11.5 - $12.5
million; and
- Depreciation and amortization of between $14.0 - $15.0
million.
Restaurant Development
As of December 31, 2022, there were 1,959 Wingstop
restaurants system-wide. This included 1,721 restaurants in
the United States, of which 1,678
were franchised restaurants and 43 were company-owned, and 238
franchised restaurants were in international markets. During the
fiscal fourth quarter 2022, there were 61 net system-wide Wingstop
restaurant openings.
Quarterly Dividend
In recognition of the Company's strong cash flow generation and
our commitment to returning value to stockholders, on
February 21, 2023, our board of directors authorized and
declared a quarterly dividend of $0.19 per share of common stock, resulting in a
total dividend of approximately $5.7
million. This dividend will be paid on March 31, 2023
to stockholders of record as of March 10, 2023.
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 domestic 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 reflects the change in
year-over-year sales for the same store restaurant base. We define
the same store 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. We review same store
sales for domestic company-owned restaurants as well as system-wide
domestic restaurants. Domestic same store sales growth is driven by
increases in transactions and average transaction size. Transaction
size increases are driven by price increases or favorable mix shift
from either an increase in items purchased or shifts into higher
priced items.
System-wide sales represents net sales for all of
our company-owned and franchised restaurants, as reported by
franchisees. This measure allows management to better assess
changes in our royalty revenue, our overall store performance, the
health of our brand and the strength of our market position
relative to competitors. Our system-wide sales growth is driven by
new restaurant openings as well as increases in same store
sales.
Adjusted EBITDA is defined as net income before
interest expense, net, income tax expense (benefit), and
depreciation and amortization (EBITDA), further adjusted for losses
on debt extinguishment and financing 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.
Adjusted net income is defined as net income
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 related tax adjustments that management
believes are not indicative of the Company's core operating results
or business outlook over the long-term.
Adjusted earnings per diluted share is defined as
adjusted net income divided by weighted average diluted share
count.
We caution investors that amounts presented in accordance with
our definitions above may not be comparable to similar measures
disclosed by our competitors because not all companies and analysts
calculate certain non-GAAP measurements in the same manner.
Conference Call and Webcast
The Company will host a conference call today to discuss the
fiscal fourth quarter 2022 financial results at 10:00 AM Eastern Time. The conference call can be
joined telephonically by dialing 1-877-259-5243 or 1-412-317-5176
(international) and asking for the Wingstop conference call. 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 1996778. The replay will
be available through Wednesday, March 1,
2023.
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 more than 1,950 locations worldwide. The
Wing Experts are dedicated to Serving the World Flavor through an
unparalleled guest experience and use of a best-in-class technology
platform, all while offering classic and boneless wings, tenders,
and chicken sandwiches, 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 fiscal year 2022, Wingstop's system-wide sales increased
16.8% to approximately $2.7 billion,
marking the 19th consecutive year of same store sales growth. With
a vision of becoming a Top 10 Global Restaurant Brand, our system
is comprised of independent franchisees, or brand partners, who
account for approximately 98% of Wingstop's total restaurant count
of 1,959 as of December 31, 2022.
A key to this business success and consumer fandom stems from
The Wingstop Way, which includes a core value system of being
Authentic, Entrepreneurial, Service-minded, and Fun. The Wingstop
Way extends to the brand's environmental, social and governance
platform as Wingstop seeks to provide value to all
stakeholders.
Rounding out a strong year in 2022, the Company made
Technomic 500's "Fastest Growing Franchise" list, was ranked
#16 on Entrepreneur Magazine's "Franchise 500," won Fast
Casual's Excellence in Food Safety award, and was named to Fast
Company's "The World's Most Innovative Companies" list ranking #4
in the dining category. For more information visit www.wingstop.com
or www.wingstop.com/own-a-wingstop and follow @Wingstop on Twitter,
Instagram, Facebook, and TikTok. 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 Securities and Exchange
Commission (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
This news release includes statements of our expectations,
intentions, plans and beliefs that constitute "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, and are intended to come within the safe
harbor protection provided by those sections. These statements,
which involve risks and uncertainties, relate to the discussion of
our business strategies and our expectations concerning future
operations, margins, profitability, trends, liquidity and capital
resources and to analyses and other information that are based on
forecasts of future results and estimates of amounts not yet
determinable. These forward-looking statements can generally be
identified by the use of forward-looking terminology, including the
terms "may," "will," "should," "expect," "intend," "plan,"
"position," "outlook," "guidance," "anticipate," "believe,"
"think," "estimate," "seek," "predict," "could," "project,"
"potential" or, in each case, their negative or other variations or
comparable terminology, although not all forward-looking statements
are accompanied by such terms. Examples of forward-looking
statements in this news release include, but are not limited to,
our 2023 fiscal year outlook for domestic same store sales growth,
SG&A expense, stock-based compensation expense, depreciation
and amortization, and unit growth. These forward-looking statements
are made based on expectations and beliefs concerning future events
affecting us and are subject to uncertainties, risks, and factors
relating to our operations and business environments, all of which
are difficult to predict and many of which are beyond our control,
that could cause our actual results to differ materially from those
matters expressed or implied by these forward-looking statements.
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.
When considering forward-looking statements in this news release
or that we make in other reports or statements, you should keep in
mind the cautionary statements in this news release and future
reports we file with the SEC. New risks and uncertainties arise
from time to time, and we cannot predict when they may arise or how
they may affect us. Any forward-looking statement in this news
release speaks only as of the date on which it was made. Except as
required by law, we assume no obligation to update or revise any
forward-looking statements for any reason, or to update the reasons
actual results could differ materially from those anticipated in
any forward-looking statements, even if new information becomes
available in the future.
Media Contact
Megan
Sprague
972-331-9155
Media@wingstop.com
Investor Contact
Ashley
Firlan
IR@wingstop.com
WINGSTOP INC. AND
SUBSIDIARIES Consolidated Balance
Sheets (amounts in thousands, except share and per share
data)
|
|
|
|
|
|
December 31,
2022
|
|
December 25,
2021
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
184,496
|
|
$
48,583
|
Restricted
cash
|
13,296
|
|
3,448
|
Accounts receivable,
net
|
9,461
|
|
6,993
|
Prepaid expenses and
other current assets
|
4,252
|
|
4,928
|
Advertising fund
assets, restricted
|
15,167
|
|
6,197
|
Total current
assets
|
226,672
|
|
70,149
|
Property and equipment,
net
|
66,851
|
|
54,503
|
Goodwill
|
62,514
|
|
56,877
|
Trademarks
|
32,700
|
|
32,700
|
Customer relationships,
net
|
9,015
|
|
10,302
|
Other non-current
assets
|
26,438
|
|
24,672
|
Total
assets
|
$
424,190
|
|
$
249,203
|
Liabilities and
stockholders' deficit
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
5,219
|
|
$
5,414
|
Other current
liabilities
|
34,726
|
|
28,070
|
Current portion of
debt
|
7,300
|
|
—
|
Advertising fund
liabilities
|
15,167
|
|
6,197
|
Total current
liabilities
|
62,412
|
|
39,681
|
Long-term debt,
net
|
706,846
|
|
469,394
|
Deferred revenues, net
of current
|
27,052
|
|
28,024
|
Deferred income tax
liabilities, net
|
4,180
|
|
7,432
|
Other non-current
liabilities
|
14,561
|
|
14,197
|
Total
liabilities
|
815,051
|
|
558,728
|
Commitments and
contingencies
|
|
|
|
Stockholders'
deficit
|
|
|
|
Common stock, $0.01
par value; 100,000,000 shares authorized;
29,932,668 and 29,837,454 shares issued and outstanding as of
December 31, 2022 and December 25, 2021, respectively
|
300
|
|
299
|
Additional
paid-in-capital
|
2,797
|
|
463
|
Retained
deficit
|
(393,321)
|
|
(310,031)
|
Accumulated other
comprehensive loss
|
(637)
|
|
(256)
|
Total stockholders'
deficit
|
(390,861)
|
|
(309,525)
|
Total liabilities
and stockholders' deficit
|
$
424,190
|
|
$
249,203
|
WINGSTOP INC. AND
SUBSIDIARIES Consolidated Statements of
Operations (amounts in thousands, except per share
data)
|
|
|
Fiscal Quarter
Ended
|
|
Year
Ended
|
|
December 31,
2022
|
|
December 25,
2021
|
|
December 31,
2022
|
|
December 25,
2021
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
Royalty revenue,
franchise fees and other
|
$
47,137
|
|
$
33,106
|
|
$
158,614
|
|
$
130,676
|
Advertising
fees
|
35,339
|
|
21,857
|
|
119,011
|
|
81,529
|
Company-owned
restaurant sales
|
22,391
|
|
17,065
|
|
79,896
|
|
70,297
|
Total
revenue
|
104,867
|
|
72,028
|
|
357,521
|
|
282,502
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Cost of sales
(1)
|
17,098
|
|
14,724
|
|
63,395
|
|
57,416
|
Advertising
expenses
|
37,111
|
|
22,429
|
|
123,069
|
|
83,989
|
Selling, general and
administrative
|
18,339
|
|
18,023
|
|
67,061
|
|
62,895
|
Depreciation and
amortization
|
3,289
|
|
2,564
|
|
10,899
|
|
7,943
|
Loss (gain) on
disposal of assets
|
159
|
|
70
|
|
1,164
|
|
(3,497)
|
Total costs and
expenses
|
75,996
|
|
57,810
|
|
265,588
|
|
208,746
|
Operating
income
|
28,871
|
|
14,218
|
|
91,933
|
|
73,756
|
Interest expense,
net
|
5,310
|
|
3,754
|
|
21,230
|
|
14,984
|
Loss on debt
extinguishment and financing
transactions
|
—
|
|
—
|
|
814
|
|
—
|
Other (income)
expense
|
192
|
|
(113)
|
|
573
|
|
(135)
|
Income before income
tax expense
|
23,369
|
|
10,577
|
|
69,316
|
|
58,907
|
Income tax
expense
|
5,773
|
|
3,681
|
|
16,369
|
|
16,249
|
Net income
|
$
17,596
|
|
$
6,896
|
|
$
52,947
|
|
$
42,658
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
Basic
|
$
0.59
|
|
$
0.23
|
|
$
1.77
|
|
$
1.43
|
Diluted
|
$
0.59
|
|
$
0.23
|
|
$
1.77
|
|
$
1.42
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
|
|
|
|
|
|
|
Basic
|
29,924
|
|
29,831
|
|
29,893
|
|
29,769
|
Diluted
|
30,003
|
|
29,970
|
|
29,963
|
|
29,944
|
|
|
|
|
|
|
|
|
Dividends per
share
|
$
0.19
|
|
$
0.17
|
|
$
4.72
|
|
$
0.62
|
|
|
(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)
|
|
|
|
Fiscal Quarter
Ended
|
|
December 31,
2022
|
|
December 25,
2021
|
|
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
|
$
7,732
|
|
34.5 %
|
|
$
7,816
|
|
45.8 %
|
Labor costs
|
5,447
|
|
24.3 %
|
|
4,250
|
|
24.9 %
|
Other restaurant
operating expenses
|
4,457
|
|
19.9 %
|
|
3,029
|
|
17.7 %
|
Vendor
rebates
|
(538)
|
|
(2.4) %
|
|
(371)
|
|
(2.2) %
|
Total cost of
sales
|
$
17,098
|
|
76.4 %
|
|
$
14,724
|
|
86.3 %
|
Pre-opening expenses
(1)
|
134
|
|
0.6 %
|
|
276
|
|
1.6 %
|
Cost of sales
(excluding pre-opening expenses)
|
16,964
|
|
75.8 %
|
|
14,448
|
|
84.7 %
|
|
|
(1)
|
Pre-opening expenses
are incurred in conjunction with the opening of a new restaurant
and are included within Other restaurant operating expenses in the
table above.
|
|
Fiscal Year
Ended
|
|
December 31,
2022
|
|
December 25,
2021
|
|
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
|
$
30,579
|
|
38.3 %
|
|
$
31,496
|
|
44.8 %
|
Labor costs
|
19,234
|
|
24.1 %
|
|
16,022
|
|
22.8 %
|
Other restaurant
operating expenses
|
15,380
|
|
19.3 %
|
|
11,457
|
|
16.3 %
|
Vendor
rebates
|
(1,798)
|
|
(2.3) %
|
|
(1,559)
|
|
(2.2) %
|
Total cost of
sales
|
$
63,395
|
|
79.3 %
|
|
$
57,416
|
|
81.7 %
|
Pre-opening expenses
(1)
|
935
|
|
1.2 %
|
|
484
|
|
0.7 %
|
Cost of sales
(excluding pre-opening expenses)
|
62,460
|
|
78.2 %
|
|
56,932
|
|
81.0 %
|
|
|
|
(1)
|
Pre-opening expenses
are incurred in conjunction with the opening of a new restaurant
and are included within Other restaurant operating expenses in the
table above.
|
WINGSTOP INC. AND
SUBSIDIARIES Unaudited Supplemental
Information Restaurant Count
|
|
|
Fiscal Quarter
Ended
|
|
Fiscal Year
Ended
|
|
December 31,
2022
|
|
December 25,
2021
|
|
December 31,
2022
|
|
December 25,
2021
|
Domestic Franchised
Activity:
|
|
|
|
|
|
|
|
Beginning of
period
|
1,631
|
|
1,461
|
|
1,498
|
|
1,327
|
Openings
|
50
|
|
38
|
|
187
|
|
170
|
Closures
|
(1)
|
|
(1)
|
|
(4)
|
|
(2)
|
Acquired by
Company
|
(2)
|
|
—
|
|
(3)
|
|
(3)
|
Re-franchised by
Company
|
—
|
|
—
|
|
—
|
|
6
|
Restaurants end of
period
|
1,678
|
|
1,498
|
|
1,678
|
|
1,498
|
|
|
|
|
|
|
|
|
Domestic
Company-Owned Activity:
|
|
|
|
|
|
|
|
Beginning of
period
|
42
|
|
32
|
|
36
|
|
32
|
Openings
|
—
|
|
4
|
|
5
|
|
7
|
Closures
|
(1)
|
|
—
|
|
(1)
|
|
—
|
Acquired by
Company
|
2
|
|
—
|
|
3
|
|
3
|
Re-franchised to
franchisees
|
—
|
|
—
|
|
—
|
|
(6)
|
Restaurants end of
period
|
43
|
|
36
|
|
43
|
|
36
|
|
|
|
|
|
|
|
|
Total Domestic
Restaurants
|
1,721
|
|
1,534
|
|
1,721
|
|
1,534
|
|
|
|
|
|
|
|
|
International
Franchised Activity:
|
|
|
|
|
|
|
|
Beginning of
period
|
225
|
|
180
|
|
197
|
|
179
|
Openings
|
13
|
|
18
|
|
45
|
|
34
|
Closures
|
—
|
|
(1)
|
|
(4)
|
|
(16)
|
Restaurants end of
period
|
238
|
|
197
|
|
238
|
|
197
|
|
|
|
|
|
|
|
|
Total System-wide
Restaurants
|
1,959
|
|
1,731
|
|
1,959
|
|
1,731
|
WINGSTOP INC. AND
SUBSIDIARIES Non-GAAP Financial Measures - EBITDA and
Adjusted EBITDA (Unaudited) (amounts in
thousands)
|
|
|
Fiscal Quarter
Ended
|
|
Fiscal Year
Ended
|
|
December 31,
2022
|
|
December 25,
2021
|
|
December 31,
2022
|
|
December 25,
2021
|
Net income
|
$
17,596
|
|
$
6,896
|
|
$
52,947
|
|
$
42,658
|
Interest expense,
net
|
5,310
|
|
3,754
|
|
21,230
|
|
14,984
|
Income tax
expense
|
5,773
|
|
3,681
|
|
16,369
|
|
16,249
|
Depreciation and
amortization
|
3,289
|
|
2,564
|
|
10,899
|
|
7,943
|
EBITDA
|
$
31,968
|
|
$
16,895
|
|
$
101,445
|
|
$
81,834
|
Additional
adjustments:
|
|
|
|
|
|
|
|
Loss on debt
extinguishment and financing
transactions (a)
|
—
|
|
—
|
|
1,124
|
|
—
|
Loss (gain) on disposal
of assets (b)
|
159
|
|
70
|
|
1,164
|
|
(3,497)
|
Consulting fees
(c)
|
450
|
|
425
|
|
875
|
|
425
|
Stock-based
compensation expense (d)
|
2,082
|
|
2,808
|
|
4,200
|
|
9,631
|
Adjusted
EBITDA
|
$
34,659
|
|
$
20,198
|
|
$
108,808
|
|
$
88,393
|
|
|
(a)
|
Represents costs and
expenses related to the refinancing of our securitized financing
facility and payment of a special dividend; all transaction costs
are included in Loss on debt extinguishment and refinancing
transactions with the exception of $310,000 during the fiscal year
ended December 31, 2022 that is included in Selling, general
and administrative on the Consolidated Statements of
Operations.
|
(b)
|
Represents a loss
(gain) resulting from the sale of assets to a franchisee. The loss
(gain) is included in Loss (gain) on disposal of assets on the
Consolidated Statements of Operations.
|
(c)
|
Represents costs and
expenses related to consulting projects to support the Company's
strategic initiatives, which are included in Selling, general and
administrative on the Consolidated Statements of
Operations.
|
(d)
|
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)
|
|
|
|
|
|
Fiscal Quarter
Ended
|
|
Fiscal Year
Ended
|
|
December 31,
2022
|
|
December 25,
2021
|
|
December 31,
2022
|
|
December 25,
2021
|
Numerator:
|
|
|
|
|
|
|
|
Net income
|
$
17,596
|
|
$
6,896
|
|
$
52,947
|
|
$
42,658
|
Adjustments:
|
|
|
|
|
|
|
|
Loss on debt
extinguishment and financing
transactions (a)
|
—
|
|
—
|
|
1,124
|
|
—
|
Loss (gain) on
disposal of assets (b)
|
159
|
|
70
|
|
1,164
|
|
(3,497)
|
Consulting fees
(c)
|
450
|
|
425
|
|
875
|
|
425
|
Tax effect of
adjustments (d)
|
(146)
|
|
(119)
|
|
(759)
|
|
737
|
Adjusted net
income
|
$
18,059
|
|
$
7,272
|
|
$
55,351
|
|
$
40,323
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding - diluted
|
30,003
|
|
29,970
|
|
29,963
|
|
29,944
|
|
|
|
|
|
|
|
|
Adjusted earnings per
diluted share
|
$
0.60
|
|
$
0.24
|
|
$
1.85
|
|
$
1.35
|
|
|
(a)
|
Represents costs and
expenses related to the refinancing of our securitized financing
facility and payment of a special dividend; all transaction costs
are included in Loss on debt extinguishment and refinancing
transactions with the exception of $310,000 during the fiscal year
ended December 31, 2022 that is included in Selling, general
and administrative on the Consolidated Statements of
Operations.
|
(b)
|
Represents a loss
(gain) resulting from the sale of assets to a franchisee. The loss
(gain) is included in Loss (gain) on disposal of assets on the
Consolidated Statements of Operations.
|
(c)
|
Represents costs and
expenses related to consulting projects to support the Company's
strategic initiatives, which are included in Selling, general and
administrative on the Consolidated Statements of
Operations.
|
(d)
|
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 December 31, 2022 and December 25, 2021,
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.