Wingstop shares fall after earnings fall

Wingstop Inc. WING,
shares fell 7% in Wednesday’s pre-market trading after the chicken chain reported a year-over-year decline in second-quarter earnings. Net income was $11.3 million, or 38 cents per share, down from $11.5 million or 39 cents per share last year. Revenue was $74.0 million, up from $66.1 million last year. FactSet’s consensus was earnings per share of 33 cents and revenue of $73.3 million. Same-store domestic sales were up 2.1%, below the FactSet consensus for a 2.9% increase. On a two-year basis, growth was 34%. According to Charlie Morrison, the company’s CEO, Wingstop has opened more than 200 restaurants in the past year. Wingstop has 1,624 restaurants system-wide, including 175 franchised restaurants abroad. In the US, 1,415 restaurants are franchised. Wingstop has increased its quarterly dividend by 21% to 17 cents per share, due to be paid to shareholders on September 3, with a record as of August 13. Wingstop shares are up 28.2%, surpassing the S&P 500 index SPX,
that’s an increase of 17.2% for the period.