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Wingstop (WING) to Post Q2 Earnings: What's in the Offing?
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Wingstop Inc. (WING - Free Report) is scheduled to report second-quarter 2024 results on Jul 31, before the opening bell. In the last reported quarter, WING’s earnings surpassed the Zacks Consensus Estimate by 29%.
Q2 Estimates
The Zacks Consensus Estimate for earnings is pegged at 82 cents per share, suggesting 43.9% growth from the prior-year quarter's level. In the past 30 days, estimates for earnings have witnessed an upward revision of 5.1%. The consensus mark for revenues is pegged at $144 million, indicating growth of 34.4% from the year-ago reported figure.
Factors to Note
The company’s quarterly results are likely to benefit from remarkable success in its newest markets, including Canada, Puerto Rico and Korea, where WING is applying its successful U.K. strategy to achieve record-breaking sales. The rapid scaling of brand awareness in these regions mirrors the achievements seen in the United Kingdom.
Wingstop is making significant strides in its supply-chain strategy, aiming to create predictability and reduce volatility in its core commodities — bone and wings. By collaborating closely with strategic supplier partners, the company has successfully shifted the majority of its purchasing from the spot market. With this move, WING ensures more stable and predictable food costs for its brand partners. This approach not only enhances operational efficiency but also supports the company's growth and development initiatives, acting as a catalyst for continued expansion.
On the other hand, increased transactions are likely to have aided the company’s comps. The consensus estimate for domestic comps growth is pegged at 7%. Moreover, the consensus estimate for advertising fees, royalty revenues, franchise fees and other as well as company-owned restaurant sales is pinned at $51 million, $64 million and $27.4 million, respectively, indicating growth of 39.3%, 33.3% and 21.2%.
Our proven model doesn't conclusively predict an earnings beat for Wingstop this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
WING has an Earnings ESP of -0.14% and a Zacks Rank #2 at present.
Stocks to Consider
Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this reporting cycle.
The company's shares have risen 76.1% in the past year. EAT’s earnings beat estimates in each of the trailing four quarters, the average surprise being 213.4%.
Shake Shack Inc. (SHAK - Free Report) has an Earnings ESP of +1.21% and a Zacks Rank #3 at present.
The company’s shares have risen 9.3% in the past year. SHAK’s earnings beat estimates in each of the trailing four quarters, the average surprise being 73%.
Yum! Brands, Inc. (YUM - Free Report) currently has an Earnings ESP of +1.33% and a Zacks Rank of 3.
Shares of YUM have lost 7.8% in the past year. YUM’s earnings beat estimates in two of the trailing four quarters and lagged twice, delivering an average surprise of 3.9%.
Image: Bigstock
Wingstop (WING) to Post Q2 Earnings: What's in the Offing?
Wingstop Inc. (WING - Free Report) is scheduled to report second-quarter 2024 results on Jul 31, before the opening bell. In the last reported quarter, WING’s earnings surpassed the Zacks Consensus Estimate by 29%.
Q2 Estimates
The Zacks Consensus Estimate for earnings is pegged at 82 cents per share, suggesting 43.9% growth from the prior-year quarter's level. In the past 30 days, estimates for earnings have witnessed an upward revision of 5.1%. The consensus mark for revenues is pegged at $144 million, indicating growth of 34.4% from the year-ago reported figure.
Factors to Note
The company’s quarterly results are likely to benefit from remarkable success in its newest markets, including Canada, Puerto Rico and Korea, where WING is applying its successful U.K. strategy to achieve record-breaking sales. The rapid scaling of brand awareness in these regions mirrors the achievements seen in the United Kingdom.
Wingstop is making significant strides in its supply-chain strategy, aiming to create predictability and reduce volatility in its core commodities — bone and wings. By collaborating closely with strategic supplier partners, the company has successfully shifted the majority of its purchasing from the spot market. With this move, WING ensures more stable and predictable food costs for its brand partners. This approach not only enhances operational efficiency but also supports the company's growth and development initiatives, acting as a catalyst for continued expansion.
On the other hand, increased transactions are likely to have aided the company’s comps. The consensus estimate for domestic comps growth is pegged at 7%. Moreover, the consensus estimate for advertising fees, royalty revenues, franchise fees and other as well as company-owned restaurant sales is pinned at $51 million, $64 million and $27.4 million, respectively, indicating growth of 39.3%, 33.3% and 21.2%.
Wingstop Inc. Price and EPS Surprise
Wingstop Inc. price-eps-surprise | Wingstop Inc. Quote
What the Zacks Model Unveils
Our proven model doesn't conclusively predict an earnings beat for Wingstop this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
WING has an Earnings ESP of -0.14% and a Zacks Rank #2 at present.
Stocks to Consider
Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this reporting cycle.
Brinker International, Inc. (EAT - Free Report) currently has an Earnings ESP of +8.02% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company's shares have risen 76.1% in the past year. EAT’s earnings beat estimates in each of the trailing four quarters, the average surprise being 213.4%.
Shake Shack Inc. (SHAK - Free Report) has an Earnings ESP of +1.21% and a Zacks Rank #3 at present.
The company’s shares have risen 9.3% in the past year. SHAK’s earnings beat estimates in each of the trailing four quarters, the average surprise being 73%.
Yum! Brands, Inc. (YUM - Free Report) currently has an Earnings ESP of +1.33% and a Zacks Rank of 3.
Shares of YUM have lost 7.8% in the past year. YUM’s earnings beat estimates in two of the trailing four quarters and lagged twice, delivering an average surprise of 3.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.