Wingstop Inc (NASDAQ:WING) had a mixed quarterly earnings report as its profit topped expectations, but the company unveiled a weak outlook.
The wing restaurant chain announced fourth-quarter net income of $10.5 million, or 36 cents per share, topping the year-ago earnings of $4.3 million, or 15 cents per share. Adjusted earnings came in at 17 cents per share, topping the consensus estimate of 16 cents per share.
Revenue for the period came in at $28.3 million for Wingstop, a 21.9% increase from the $24.6 million it reported in the year-ago quarter. Analysts were calling for revenue of $27.5 million to close out its fiscal 2017.
The Dallas, Texas-based company reported domestic same-store sales at a 5.2% gain compared to the year-ago period, while its system-wide sales popped 15.6%. Wingstop’s system-wide restaurant count surged 13.5% to 1,133 global locations.
For the full year, the chain reported net income of $27.3 million, or 93 cents per diluted share, ahead of the year-ago $15.2 million, or 52 cents per diluted share. Adjusted earnings were 30.7% higher to $21.8 million, or 74 cents per share.
Windstop’s revenue surged 17.5% to $105.6 million, while domestic same-store sales increased 2.65. Its system-wide sales surged 14% to $1.1 billion, plus the company added 135 new restaurants in 2017.
For its first quarter of fiscal 2018, the company sees its adjusted earnings as being around 75 cents per share, below the Wall Street consensus estimate of 83 cents per share, according to data compiled by FactSet.
After the close of the market Thursday, WING shares fell about 9% on its weak guidance.