Wingstop Inc (WING)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 66.17% | 62.99% | 62.90% | 56.60% | 51.82% |
| Operating profit margin | 26.46% | 24.47% | 25.71% | 26.11% | 23.07% |
| Pretax margin | 23.52% | 20.50% | 19.39% | 20.85% | 10.83% |
| Net profit margin | 17.37% | 15.25% | 14.81% | 15.10% | 9.37% |
Wingstop Inc has shown a consistent improvement in its profitability ratios over the years. The gross profit margin has steadily increased from 51.82% in 2020 to 66.17% in 2024, indicating the company's ability to effectively control its production and operating costs.
Moreover, the operating profit margin has also seen positive growth, rising from 23.07% in 2020 to 26.46% in 2024. This suggests that Wingstop has been able to manage its operating expenses efficiently while generating higher revenues.
The pretax margin reflects the company's profitability before tax expenses, showing a healthy growth trend from 10.83% in 2020 to 23.52% in 2024. This indicates Wingstop's ability to generate stronger earnings relative to its total revenue.
Lastly, the net profit margin, which represents the company's bottom-line profitability after all expenses have been deducted, has also improved from 9.37% in 2020 to 17.37% in 2024. This signifies Wingstop's success in managing its costs and generating higher net income as a percentage of total revenue.
In summary, Wingstop Inc has demonstrated consistent profitability improvements across its gross profit margin, operating profit margin, pretax margin, and net profit margin, showcasing effective cost management and revenue optimization strategies over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 23.12% | 29.80% | 21.67% | 29.60% | 27.13% |
| Return on assets (ROA) | 15.18% | 18.57% | 12.48% | 17.12% | 11.02% |
| Return on total capital | 31.21% | 44.16% | 29.09% | 46.14% | 45.68% |
| Return on equity (ROE) | — | — | — | — | — |
Wingstop Inc's profitability ratios show a positive trend over the past five years. The Operating return on assets (Operating ROA) has steadily increased from 27.13% in 2020 to 29.80% in 2023, indicating the company's ability to generate operating profits from its assets. However, there was a slight decrease to 21.67% in 2022 and a subsequent increase to 23.12% in 2024.
The Return on assets (ROA) has also shown improvement, rising from 11.02% in 2020 to 18.57% in 2023, before stabilizing at 15.18% in 2024. This metric reflects the company's efficiency in generating profits relative to its total assets.
The Return on total capital, which measures the return on all capital invested in the company, has fluctuated over the years, reaching a peak of 46.14% in 2021 but dipping to 29.09% in 2022, and then recovering to 31.21% in 2024.
Notably, Return on equity (ROE) data is unavailable for analysis. Overall, the upward trend in profitability ratios suggests Wingstop Inc's effective management of assets and capital to drive increased profitability.