Wingstop Inc (WING)

Pretax margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	147,190	135,466	126,129	111,896	94,310	92,689	84,587	78,691	69,356	56,564	55,645	54,462	58,907	40,728	33,494	33,638	26,943	39,255	37,064	27,729
Revenue (ttm)	US$ in thousands	625,807	591,043	545,649	497,123	460,055	437,865	413,433	390,037	357,521	324,682	297,794	288,017	282,502	273,756	271,960	264,065	248,811	238,715	224,602	207,059
Pretax margin		23.52%	22.92%	23.12%	22.51%	20.50%	21.17%	20.46%	20.18%	19.40%	17.42%	18.69%	18.91%	20.85%	14.88%	12.32%	12.74%	10.83%	16.44%	16.50%	13.39%

December 31, 2024 calculation

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

The pretax margin of Wingstop Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The pretax margin started at 13.39% in March 2020, saw an increase to 16.50% by June 2020, and remained relatively stable around this level until experiencing a decline in December 2020 to 10.83%. However, there was a recovery in the pretax margin in the following quarters, reaching 20.85% in December 2021.

The trend continued with fluctuations but generally showing an upward trajectory, with the pretax margin peaking at 23.52% in December 2024. This indicates an improvement in the company's ability to generate profits before taxes relative to its total revenue over the analyzed period. The consistent increase in pretax margin reflects positively on Wingstop Inc's operational efficiency and profitability management. It suggests effective cost management and potentially higher revenue growth contributing to enhanced profitability for the company.