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

Oct 30, 2019 • 10:00 am ET


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


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Charlie Morrison

previously between $52 million and $55 million.

Consistent with the last quarter, we included the reconciliation on our earnings release from SG&A as reported to an adjusted SG&A number that excludes transaction fees, noncash stock-based compensation, and is further adjusted for convention and marketing related items, which items have an equal and offsetting contribution in revenue and do not impact profitability metrics.

Let me provide a few updates on each of the components that are included in the SG&A reconciliation. Convention cost of $1.7 million, previously $2 million. Expenses related to national advertising are between $7.7 million and $8.2 million, prior estimate was between $7.3 million to $7.7 million. Stock-based comp of $6.5 million to $6.7 million, previously $5.9 million to $6.4 million. Adjusting for these components, we expect adjusted SG&A for 2019 to be between $37.6 million and $38.9 million, narrowing our range from our prior guidance.

Before opening the call for questions, we wanted to comment on our new corporate headquarters that we announced in June. We closed on the 80,000 square foot building on September 10, funding the $18.3 million purchase price with cash on hand. We are not anticipating any significant P&L impact for the new headquarters in 2019.

As we finalize the design plans to build up the new space and the overall timing of our move, we will provide an update as part of our 2020 outlook in our next earnings call.

In closing, we're focused on the right strategic pillars that give us confidence in our long-term growth algorithm of low single-digit same-store sales and 10% plus unit growth, which we believe will continue to deliver best-in-class returns.

Thank you all for joining us today. We will now be happy to answer any questions that you may have.