Wingstop has a 'lot of runway for growth not only here in the U.S., but across the world,' CEO Charlie Morrison tells 'Mad Money's' Jim Cramer.
Wingstop, the Dallas-based franchise operating in 1,300 locations in nine countries, reported a profit of 20 cents per share on nearly $50 million of revenue in its September quarter, beating analyst consensus on those measures. Wall Street expects the wing company to bring in about $198 million of revenue and produce 74 cents of earnings per share for full-year 2019, according to FactSet.
Management expects to almost double its presence in Mexico to 200 locations within the next decade. A new location recently opened in London and another is planned for France by the end of the year.Wingstop partnered with DoorDash to roll out delivery at its home-grown restaurants. Wingstop recently renegotiated a contract with the third-party delivery app and plans to advertise delivery options in the coming year.
Morrison said he is "bullish" about the upside that the delivery platform can bring to the chain. The relationship allowed Wingstop to pay a small commission that offset investments in labor that would have been required to develop its own delivery program. In addition, the privately held DoorDash charges delivery fees and accepts tips for its services, he said.
"If you combine the three of those together, DoorDash can make money off a brand especially like Wingstop," Morrison said. "We have a higher average check [and] a lot of takeout business already. Delivery is a perfect fit, and I think, if you maximize that equation, everybody's going to win." Shares of Wingstop climbed 1.52% in Wednesday's session. The stock has run more than 32% year to date, outgaining the S&P 500's more than 23% return.
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