Wingstop Inc. WING is scheduled to report third-quarter fiscal 2024 results on Oct. 30, before the opening bell.
The company’s earnings surprise history has been impressive. It surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the surprise being 21.8% on average.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
WING’s Q3 Estimates
The Zacks Consensus Estimate for the fiscal third-quarter earnings per share (EPS) is pegged at 97 cents, indicating growth of 40.6% from 69 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $162.1 million, suggesting a 38.4% increase from the year-ago quarter’s figure.
Wingstop Inc. Price and EPS Surprise
Wingstop Inc. price-eps-surprise | Wingstop Inc. Quote
Factors to Consider
Wingstop’s fiscal third-quarter top line is likely to have increased year over year courtesy of new restaurant openings, menu innovation and strong digital business. This and the emphasis on delivery channel expansion, data-driven marketing and strategic pricing are likely to have aided the company’s performance in the to-be-reported quarter.
Increased focus on MyWingstop tech platform bodes well. After three years of development and a $60 million investment, this platform now drives over $2.5 billion in digital sales, supporting more personalized experiences and stronger digital engagement. With digital orders making up 68.3% of sales (as of the fiscal second quarter) and a growing user base of 45 million, Wingstop is well-positioned to boost customer conversions and visit frequency. The early success of MyWingstop is promising for the third quarter as the company uses its digital platform to increase transactions and loyalty.
However, volatility in food costs is likely to have affected margins in the fiscal third quarter. As WING continues its aggressive expansion, maintaining consistent quality and customer experience across diverse markets will depend on effective training and operational support for franchisees. This in turn is likely to have driven SG&A expenses and increased logistics complexity in the fiscal third quarter.
What Our Model Says
Our proven model predicts 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.
Earnings ESP: Wingstop has an Earnings ESP of +0.52%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3.
Other Stocks Poised to Beat on Earnings
Here are some other stocks worth considering from the Zacks Retail-Wholesale sector, as our model shows that these have the right combination of elements to beat on earnings this season:
Brinker International, Inc. EAT has an Earnings ESP of +4.98% and a Zacks Rank #2. The company's shares have gained 119.7% so far this year. You can see the complete list of today’s Zacks #1 Rank stocks here.
EAT’s earnings beat estimates in the trailing three out of four quarters and missed once, the average surprise being 211%.
McDonald's Corporation MCD has an Earnings ESP of +0.48% and a Zacks Rank of 3. Shares of MCD have declined 1.3% so far this year.
MCD’s earnings beat estimates in the trailing two out of four quarters and missed twice, the average surprise being 1.8%.
The Cheesecake Factory Incorporated CAKE has an Earnings ESP of +5.32% and a Zacks Rank #3. The company's shares have gained 20.1% so far this year.
CAKE’s earnings beat estimates in the trailing three out of four quarters and missed once, the average surprise being 6.5%.
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The Cheesecake Factory Incorporated (CAKE) : Free Stock Analysis Report
Brinker International, Inc. (EAT) : Free Stock Analysis Report
Wingstop Inc. (WING) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
