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Wingstop shares sink after earnings decline

Wingstop Inc. (WING) shares sank 7% in Wednesday premarket trading after the chicken chain reported a year-over-year second-quarter income decline. Net income totaled $11.3 million, or 38 cents per share, down from $11.5 million, or 39 cents per share, last year. Revenue totaled $74.0 million up from $66.1 million last year. The FactSet consensus was for EPS of 33 cents and revenue of $73.3 million. Domestic same-store sales rose 2.1%, below the FactSet consensus for a 2.9% increase. On a two-year basis, the growth was 34%. Wingstop has opened more than 200 restaurants over the last year, according to Charlie Morrison, chief executive of the company. Wingstop has 1,624 restaurants systemwide, including 175 franchised restaurants abroad. In the U.S. 1,415 restaurants are franchised. Wingstop has raised its quarterly dividend 21% to 17 cents per share to be paid on September 3 to shareholders of record as of August 13. Wingstop shares have run up 28.2%, outpacing the S&P 500 index , which is up 17.2% for the period.

-Tonya Garcia; 415-439-6400; AskNewswires@dowjones.com

 

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07-28-21 0848ET

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