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Wingstop Inc(WING-Q)
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Wingstop (WING) To Report Earnings Tomorrow: Here Is What To Expect

StockStory - Tue Oct 31, 2023

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Fast-food chain Wingstop (NASDAQ:WING) will be reporting earnings tomorrow before market hours. Here's what to expect.

Last quarter Wingstop reported revenues of $107.2 million, up 27.9% year on year, beating analyst revenue expectations by 3.06%. It was a mixed quarter for the company, with an impressive beat of analysts' revenue estimates but a miss of analysts' gross margin estimates.

Is Wingstop buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Wingstop's revenue to grow 17.7% year on year to $109.1 million, slowing down from the 40.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.52 per share.

Wingstop Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates four times over the last two years.

Looking at Wingstop's peers in the restaurants segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Chipotle delivered top-line growth of 11.3% year on year, missing analyst estimates by 0.06% and BJ's reported revenues up 2.34% year on year, missing analyst estimates by 2.22%. Chipotle traded up 5.2% on the results, BJ's was down 4.11%.

Read our full analysis of Chipotle's results here and BJ's's results here.

The whole tech sector has been facing a sell-off, and while some of the restaurants stocks have fared somewhat better, they have not been spared, with share price declining 2.67% over the last month. Wingstop is down 3.11% during the same time, and is heading into the earnings with analyst price target of $196.2, compared to share price of $178.57.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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The author has no position in any of the stocks mentioned.