Wingstop Inc (WING)

Pretax margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Earnings before tax but after interest (EBT) US$ in thousands 147,190 94,310 69,316 58,907 26,943
Revenue US$ in thousands 625,807 460,055 357,521 282,502 248,811
Pretax margin 23.52% 20.50% 19.39% 20.85% 10.83%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $147,190K ÷ $625,807K
= 23.52%

The pretax margin of Wingstop Inc has shown a positive trend over the past five years, increasing from 10.83% as of December 31, 2020, to 23.52% as of December 31, 2024. This indicates that the company has been effectively managing its pre-tax profitability and controlling its operating expenses relative to its revenues. The consistent improvement in pretax margin suggests that Wingstop Inc has been able to enhance its operational efficiency and generate higher profits before accounting for taxes. Overall, the increasing pretax margin reflects positively on the financial performance and profitability of Wingstop Inc during the period under review.