Wingstop Inc. (NASDAQ:WING) Q3 2019 Earnings Conference Call - Final Transcript

Oct 30, 2019 • 10:00 am ET

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Wingstop Inc. (NASDAQ:WING) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Wingstop, Inc.'s Fiscal Third Quarter 2019 Earnings Conference Call. Please note that this conference is being recorded today, Wednesday, October 30th, 2019.

On the call today we have Charlie Morrison, Chairman and Chief Executive Officer, and Michael Skipworth, Executive Vice President and Chief Financial Officer.

I would now like to turn the call over to Michael. Michael, please go ahead.

Executive
Michael J. Skipworth

Thank you, and welcome. Everyone should have access to our fiscal third quarter 2019 earnings release. A copy is posted under the Investor Relations tab on our website at wingstop.com.

Our discussion today will include forward-looking statements. These forward-looking statements are not guarantees of future performance and therefore you should not place undue reliance on them. These statements are also subject to numerous risk and uncertainties that could cause our actual results to differ materially from what we expect. Our recent SEC filings contain a detailed discussion of the risk that could affect our future operating results and financial condition.

We also use certain non-GAAP financial measures that we believe can be useful in evaluating our performance. The presentation of this information -- this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. Reconciliations to comparable GAAP measures are contained in our earnings release.

[Operator Instructions]

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

Executive
Charlie Morrison

Thank you Michael, and good morning. We appreciate you joining us for our quarterly earnings call. We celebrated our 25th anniversary as a brand in the third quarter, and if you have read the release that Michael just referenced then you can understand that we have a lot to celebrate here at Wingstop.

Our third quarter performance was exceptional. We opened 37 net new restaurants, ending the quarter with 1,340 Wingstop restaurants. Our system-wide sales grew by 21.6%. Same-store sales for the quarter increased 12.3%, driven primarily by transaction growth and represents an acceleration in the two year comp.

We are well on our way to delivering an industry-leading 16th consecutive year of positive same-store sales growth. This strong top line growth and leverage on our P&L translated to adjusted EBITDA of $15.4 million, up 25.8% over prior-year and earnings per share of $0.20.

These strong third quarter results, as well as the fact that we are raising our full-year guidance is a testament to the effectiveness of our long-term strategies, which include; driving same-store sales growth by growing brand awareness and innovation; maintaining best-in-class unit economics for our brand partners; and continuing to expand our global footprint.

We are excited about the positive momentum in our business and we believe our focus on these strategic pillars along with the investments we made this year have helped build the foundation for sustained growth for the long term.

We previously outlined some of the changes we put in place to deliver on our first strategic pillar, driving same-store sales growth