Here's Why Wingstop Stock Fell Hard Today
Shares of chicken-wing restaurant chain Wingstop (NASDAQ: WING) fell hard on Wednesday morning following the release of financial results for the third quarter of 2021. The company showed ongoing growth, but results fell short of expectations, causing the stock to fall. Early in the session, it was down 14%. But as of 11:15 a.m. EDT today, it was rebounding and only down 4%.
For the third quarter, Wingstop reported revenue of $65.8 million, an increase of almost 3% from last year. That might seem meager, but remember that the company was hugely successful in 2020. In fact, in the third quarter of 2020, sales were up almost 33% and profits were so strong that management was motivated to declare a special dividend of $5 per share. Continuing to grow revenue on top of last year's gains is quite impressive.
A Wingstop wing dipped in ranch dressing. Image source: Wingstop.
Source Fool.com
