Wingstop shares jump after profit beat and guidance maintained

Wingstop Inc. shares jumped nearly 13% in Thursday premarket trading after it reported second-quarter profit that beat the Street and, unlike many companies lately, maintained its guidance for the year. The chicken wing chain posted net income of $13.3 million, or 44 cents per share, up from $11.3 million, or 38 cents per share, last year. Adjusted EPS of 45 cents beat the FactSet consensus for 36 cents. Revenue of $83.8 million was up from $74.0 million and missed the FactSet consensus for $86.1 million. Domestic same-store sales were down 3.3%. Wingstop Chief Executive Michael Skipworth said in a statement that the company is in a “unique position for the back half of the year where we are benefiting from meaningful deflation in bone-in wings.” The company reiterated its full-year guidance for low-single-digit domestic same-store sales growth and EPS between $1.55 to $1.57. The FactSet consensus is for domestic same-store sales growth of 1.4% and EPS of $1.53. Wingstop shares are down 42.3% for the year to date.

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