Why Wingstop Stock Absolutely Plunged Today
Shares of restaurant chain (NASDAQ: WING) absolutely plunged on Wednesday after the company reported financial results for the third quarter of 2024. As of 3 p.m. ET, Wingstop stock was down a painful 20%.
The Q3 headline numbers were incredible for Wingstop. The company had nearly 2,400 locations at the end of the second quarter, but still added 106 more in Q3 alone. The chain enjoyed 20% same-store-sales growth in the U.S., leading to year-over-year revenue growth of 39%. If investors were hoping for impressive growth, they got it.
Wingstop's Q3 net income was up 32% to $25.7 million. And that's strong growth as well in isolation. But profits were up less than revenue, and investors were hoping for more. In a nutshell, that's why Wingstop was down so much today.
Source Fool.com
