Foodservice network Wingstop Inc. (NASDAQ: WING) announced second-quarter 2021 results Wednesday, July 28, beating Wall Street analysts’ forecasts. However, immediately after the results were released, the company’s prices fell about 3%. In the July 29 auction, the price of WING rose nearly 5% to $174.2.
Wingstop, which specializes in a variety of chicken products, said revenue of $74 million, up 1% from the previous year and above analysts’ expectations. At the same time, same-store sales grew 2% year on year. It should be mentioned that in the past 12 months the company has opened 200 new restaurants. Additionally, restaurants began to operate even in the midst of the pandemic. The Wingstop Inc. (WING) chain now has 1,624 stores, of which more than 1,440 are located in the United States. The company’s long-term plans include 6,000 restaurants in different countries.
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WING stock declared a 13% increase in adjusted net income to $11.3 million, or $0.38 per share, which is also higher than analysts’ forecasts. Management has yet to present revenue and profit forecasts for the remainder of the year; however, it expects a single-digit increase in comparable sales.
The period of the COVID-19 pandemic did not become unnecessarily stressful for Wingstop Inc. (WING), as the corporate structure was already prepared for specific operating conditions. Even before the blockade began, around 80% of network sales came from delivery orders and around 40% of orders were digital. Subsequently, the number of online orders rose to 60%.
Wingstop Inc. (WING) has recorded revenue growth for 17 consecutive years. So far, 2021 is looking good for the fast-food chain, which could see the company return to revenue growth by the end of the year, for the 18th consecutive time.
On July 30, Wingstop Inc. (WING) stock traded at $171.31. The company has a market cap of $5.18 billion.