Wingstop Inc. increased its guidance for the full fiscal year on Tuesday after reporting a 4.1 percent increase in domestic same-store sales for the third quarter ended Sept. 24.
“Based upon our results to date and expectations for a strong finish to the fiscal year, we are pleased to be raising our annual guidance,” said Charlie Morrison, president and CEO of the Dallas-based fast-casual chicken wing chain.
Wingstop said total revenue for the 2016 fiscal year would between $90.5 million and $91.5 million, up from the $90 million to $91 million it had forecast earlier. Total revenue would increase about 17 percent from 2015, the company said.
Wingstop said it would open more restaurants systemwide as well, upping its expected net new units to between 145 and 155, up from earlier guidance of between 130 and 140.
For the third quarter, Wingstop’s net income decreased to $2.8 million, or 9 cents per share, compared to $3.2 million, or 11 cents per share, in the prior-year period. The company said it had higher labor and administrative costs compared to the same quarter last year. Revenue in the quarter increased 14 percent, to $21.8 million
“We opened 104 net new locations so far in 2016, and ended the fiscal third quarter with 949 restaurants worldwide, representing nearly 18 percent unit growth over the prior-year period,” Morrison said in a statement, adding that the company will be near 1,000 units by year’s end.
“We will also continue to grow our international presence in markets that have Western brand appeal and high per capita chicken consumption,” he said.
The company earlier this week announced a new development agreement for 30 restaurants in Colombia and Panama.