Wingstop Inc. (NASDAQ:WING) Q3 2017 Earnings Conference Call Transcript

Nov 02, 2017 • 04:30 pm ET

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Wingstop Inc. (NASDAQ:WING) Q3 2017 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the Wingstop Incorporated Fiscal Third Quarter 2017 Earnings Conference Call. (Operator Instructions). Please note that this conference is being recorded today, Thursday, November 2, 2017.

On the call, we have Charlie Morrison, Chairman and CEO; and Michael Skipworth, CFO.

I would now like to turn the conference over to Michael. Please go ahead.

Executive
Michael Skipworth

Thank you, and welcome. By now, everyone should have access to our fiscal third quarter 2017 earnings release. The copy is posted under the IR tab at wingstop.com.

(Forward-Looking Cautionary Statements).

With that, I would like to turn the call over to Charlie.

Executive
Charlie Morrison

Thank you, Michael. And good afternoon, everyone. We appreciate your interest in Wingstop and for joining us today on our call to discuss our third quarter 2017 results. We continued to execute against our strategic initiatives as we delivered another strong quarter for our global brand, posting solid results for our shareholders against a challenging backdrop.

During the quarter, we witnessed the devastating effects of natural disasters on our business, including Hurricanes Harvey and Irma and the earthquake near Mexico City. Although so much property was damaged in many of our franchisees, team members and their families were displaced, thankfully, none of them were injured in these strategies.

During the aftermath of the storms, our Wingstop family came together to support one another and our communities. A little over a year ago, we created the Wingstop Foundation, a charitable nonprofit, to support our team members in difficult times including strategies like these. And the foundation also assists underserved youth in our communities by providing access to higher education through individual scholarships, grants and partnerships with community and business organizations.

I'm pleased that the Wingstop Foundation raised over $90,000 from our franchisees and our corporate team to support the hurricane relief. We also took the Wingstop Food Truck to affected areas and served up some delicious, hot, fresh wings to first responders and families displaced by these strategies at no cost to them. The smiles and appreciation were overwhelming.

It's no coincidence that our fourth quarter advertising campaign centers on the theme that you can't stop when it comes to your crave for Wingstop. And we think that the way that our franchisees and team members stepped up in the face of these natural disasters is further evidenced that you can't stop Wingstop.

Despite the challenges, the underlying momentum in our business continues to remain strong, with same-store sales growing 4.1% in the quarter, net of the impact of these events. We grew system-wide sales 16.1%, and total revenue growth exceeded 19%. Adjusted EBITDA and adjusted net income grew at 25.2% and 34.3%, respectively. Another strong quarter for Wingstop.

Our launch of national advertising earlier this year is increasing brand awareness in all markets and continues to drive top-line momentum, which accelerated in Q3 relative to Q2 against a tough industry backdrop. We were strong across all geographies, but we continue to see