Here's Why Wingstop Stock Plunged Today
Shares of chicken-wing restaurant chain Wingstop (NASDAQ: WING) plunged on Wednesday morning after the company reported full-year 2020 results. It's not that 2020 was bad; in fact, it was a stellar year for the company. But it appears investors weren't thrilled with management's outlook for the coming year. As a result, Wingstop stock was down 12% as of 10:15 a.m. EST today.
For 2020, Wingstop generated revenue of $248.8 million, up almost 25% year over year. It was able to grow revenue by opening new locations and squeezing more sales out of existing ones. It opened 153 net new locations, an increase of 11% from its store count at the end of 2019. And domestic same-store sales were up an outstanding 21.4% from 2019, as diners increasingly turned to delivery last year because of the pandemic and the fact that chicken wings travel well.
Image source: Getty Images.
Source Fool.com
