Wingstop Inc Intrinsic Value Calculation – WINGSTOP INC Reports Record-Breaking Earnings for Second Quarter of FY2023.
August 19, 2023
🌥️Earnings Overview
Wingstop Inc ($NASDAQ:WING) reported their financial results for the second quarter of FY2023, ended June 30 2023, with total revenue of USD 107.2 million, an increase of 27.9% from the same period in the prior year. Net income for the quarter was USD 16.2 million, a 21.6% rise compared to the preceding year’s quarter.
Price History
On Wednesday, WINGSTOP INC reported record-breaking earnings for the second quarter of FY2023. The stock opened at $165.2 and closed at $167.7, down by 0.4% from its prior closing price of 168.4. WINGSTOP INC attributed its record-breaking success to increasing customer demand for their product offerings, which led to an expansion of their product lines and an increase in brand awareness. The company also attributed its success to making strategic investments in technology, marketing, and store operations which has enabled them to optimize their operations for better efficiency and customer experience.
The company also reported that they have seen several positive trends including increased same-store sales growth, a rise in catering orders, and double-digit growth in their online and mobile ordering channels. This indicates that the company is continuing to perform well even during the pandemic and is continuing to stay competitive within the market. With continued investments in technology, marketing and store operations, the company is poised to continue its growth in the coming months and years. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Wingstop Inc. More…
| Total Revenues | Net Income | Net Margin |
| 413.43 | 62.81 | 15.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Wingstop Inc. More…
| Operations | Investing | Financing |
| 94.74 | -41.83 | -30.43 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Wingstop Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 451.22 | 816.57 | -12.19 |
Key Ratios Snapshot
Some of the financial key ratios for Wingstop Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.6% | 24.8% | 25.3% |
| FCF Margin | ROE | ROA |
| 16.1% | -17.5% | 14.5% |
Analysis – Wingstop Inc Intrinsic Value Calculation
At GoodWhale, we recently conducted an analysis of Wingstop Inc‘s financials. After running our proprietary Valuation Line, we found that the fair value of Wingstop Inc’s share is around $193.4. Our analysis suggests that investors should consider buying the stock as it offers a margin of safety. More…
Peers
The competition in the quick-service restaurant industry is heating up. Wingstop Inc, a leading player in the chicken wing segment, is facing increased competition from Wowprime Corp, Various Eateries PLC, and Hostmore PLC. These companies are all vying for a share of the quick-service restaurant market and are each employing different strategies to gain an edge over their competitors. Wingstop Inc is well-positioned to compete against these rivals and maintain its position as a leading player in the industry.
– Wowprime Corp ($TWSE:2727)
Wiprime Corp, a 9.14B market cap company as of 2022, is a holding company with a -1.91% ROE. The company invests in a range of businesses including healthcare, education, and technology.
– Various Eateries PLC ($LSE:VARE)
Eateries PLC has a market cap of 34.27M as of 2022. The company has a Return on Equity of -5.88%. Eateries PLC is a restaurant company that operates in the United Kingdom.
– Hostmore PLC ($LSE:MORE)
Hostmore PLC is a U.K.-based holding company engaged in the operation of hotels. As of 2022, the company had a market capitalization of 22.07 million pounds and a return on equity of 2.42%. The company operates a portfolio of hotels in the United Kingdom, Spain, and Portugal.
Summary
WINGSTOP INC‘s second quarter of FY2023 saw strong performance with total revenue increasing 27.9% year-over-year to USD 107.2 million and net income increasing 21.6% to USD 16.2 million. This is a positive sign for investors as it shows the company has strong financial performance, a result of its continued success in marketing and product innovation. Looking forward, WINGSTOP INC’s financial performance and stability should remain strong, making it an attractive investment option for investors seeking growth and stability in the market.
