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Stock Alert: Wingstop Up 9% As Sales Rise Despite COVID-19 Pandemic

Shares of Wingstop Inc. (WING) are gaining about 9% on Tuesday morning after the chicken wings restaurant reported a preliminary first-quarter results that recorded growth in sales.

WING is currently trading at $92.28, up $7.61 or 8.99%, on the NASDAQ.

The Dallas, Texas-based chicken wing chain's first-quarter sales rose despite the company switching to takeout-only due to the ongoing coronavirus pandemic.

Wingstop Chief Executive Charlie Morrison said in a letter that takeout and delivery represented about 80% of the company's sales before the pandemic, and digital sales represented 40%.

For the first-quarter, same-store sales rose 9.9%, with same-store sales rising 11.5% in the period between December 29, 2019 and January 25, 2020.

"While we have seen a slight decline in overall transactions due to the loss of dine in, growth in our average ticket has surpassed these transaction declines as we're primarily serving meals for families," Morrison said.

During the start of coronavirus outbreak the company initiated a promotion to offer free delivery via Wingstop.com and Wingstop App to "ease the burden of delivery fees for guests." The company said it will continue offering free delivery promotion through April 30.

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