Wingstop (WING) reports earnings tomorrow: what to expect

Fast-food chain Wingstop (NASDAQ:WING) will be reporting earnings this Wednesday before market open. Here’s what to look for.

Wingstop missed analysts’ revenue expectations last quarter, reporting revenues of $185.6 million, up 6.4% year on year. It was a slower quarter for the company, with a miss of analysts’ same-store sales estimates and a slight miss of analysts’ EBITDA estimates.

Is Wingstop a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Wingstop’s revenue to grow 9.7% year on year, improving from the 8.1% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Wingstop has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Wingstop’s peers in the restaurants segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Domino's delivered year-on-year revenue growth of 3.4%, beating analysts’ expectations by 0.9%, and Darden reported revenues up 5.1%, in line with consensus estimates. Domino's traded down 4.8% following the results while Darden was also down 6.5%.

Read our full analysis of Domino’s results here and Darden’s results here.

There has been positive sentiment among investors in the restaurants segment, with share prices up 4.9% on average over the last month. Wingstop is up 20.3% during the same time and is heading into earnings with an average analyst price target of $187.92 (compared to the current share price of $122.52).

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