Wingstop up after quarterly profit beat
BUZZ-Wingstop up after quarterly profit beat Updates
** Shares of restaurant chain Wingstop WING.O up 7.6% at $145.08
** Co beat second-quarter profit estimates, helped by lower food, beverage and packaging costs, reflecting a decrease in cost of bone-in chicken wings
** Co posted Q2 adjusted EPS of $1.18 vs estimates of $1.03, according to LSEG-compiled data
** Co's food, beverage and packaging costs at company-owned restaurants fell to 35.2% of sales in the quarter from 36.8% a year earlier
** "Given the company's forward chicken contracts and declining prices, we think COGS (cost of goods sold) will continue to be favorable" said Logan Reich, analyst at RBC Capital Markets
** Quarterly revenue rises 6.4% to $185.6 million, but misses estimates of 190.5 million, hurt by continued pressure on consumer spending
** Co now expects domestic same-store sales decline between 4% and 6% vs its prior forecast of low-single digit decline
** "Given depressed investor sentiment and 6 SSS (same-store sales) misses in the past 8 quarters, we think the guide down will be welcomed by investors" - RBC Capital Markets
** As of last close, stock down 43.5% YTD
(Reporting by Sanskriti Shekhar in Bengaluru)