Wingstop Inc (WING)

Net profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 108,717 70,175 52,947 42,658 23,306
Revenue US$ in thousands 625,807 460,055 357,521 282,502 248,811
Net profit margin 17.37% 15.25% 14.81% 15.10% 9.37%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $108,717K ÷ $625,807K
= 17.37%

Net profit margin is a key financial metric that indicates the company's profitability by measuring the percentage of net income generated from total revenue. Analyzing Wingstop Inc's net profit margin over the past five years, we observe a consistent upward trend, reflecting the company's improving profitability.

As of December 31, 2020, Wingstop Inc had a net profit margin of 9.37%, which increased to 15.10% by December 31, 2021, indicating a significant improvement. The trend continued with net profit margins of 14.81% in 2022, 15.25% in 2023, and 17.37% in 2024.

The company's consistent growth in net profit margin highlights its effective cost management, revenue generation, and operational efficiency. This positive trend suggests that Wingstop Inc is effectively translating its revenue into profits, which can be viewed favorably by investors and stakeholders.