Restaurant chain Wingstop has lowered its full-year outlook after recording flat comparable sales in the first quarter due to a challenging macro environment.
The chain’s domestic same-store sales, which include restaurants open for at least 52 weeks, were up only 0.5 per cent for the quarter ended March 29. This is considered a significant slowdown from last year’s average of 20 per cent growth.
System-wide sales soared 15.7 per cent to $1.3 billion thanks to a record 126 net new units. Total revenue also increased 17.4 per cent to $171.1 million.
The company ended the period with 2689 restaurants, including 2301 in the US and 388 in international markets.
“Despite the challenging and unpredictable macro-environment, our first quarter results demonstrate the staying power of our strategies and resiliency in our model,” said Michael Skipworth, president and CEO.
The chain has lowered its guidance for the full year, expecting domestic same-store sales to grow 1 per cent, compared to the prior low- to mid- single digits.
However, it expects a global unit growth rate of 16-17 per cent instead of the previously 14-15 per cent.
The company noted its outlook is dependent on the macro-environment which is “inherently difficult to predict given current high levels of uncertainty”.
