It’s been a big day for restaurant chain Wingstop (NASDAQ:WING). It released some very solid earnings and a pleasant projection about profitability to come. Investors are definitely happy, with the stock up nearly 8% at the time of writing.
Wingstop delivered killer earnings along with its high-quality chicken wing fare. It posted earnings of $0.60 per share, handily beating analysts’ projections that called for $0.41. It also walked over the earnings figure from this time last year, where it pulled in $0.24 per share. Revenue also turned out a winner, coming in at $104.9 million against projections that looked for $100.96 million. Growth projections also looked sound, as Wingstop reaffirmed previous guidance that looked for mid-single-digits in same-store sales growth in the U.S.
Wingstop is also continuing an expansion plan. Just in the fourth quarter, Wingstop added 61 new locations, giving it 1,959 restaurants throughout the world. It plans to open an additional 240 locations in Fiscal Year 2023. Its new line of chicken sandwiches also lent a hand in sales gains this quarter. Though there will be some supply chain issues involved, especially given the sheer amount of bird flu and culled flocks we’ve seen so far, Wingstop is on track for gains.
Analysts, meanwhile, are somewhat split about Wingstop stock. Analyst consensus calls it a Moderate Buy right now, based on three Buys and three Holds assigned in the past three months. An average share price target of $163, meanwhile, means Wingstop stock has some substantial downside risk with it as well.
