The ambition of Wingstop, which hails from Dallas, Texas, is to become the McDonald’s of the chicken wing world. They specialise in cooked-to-order, hand-sauced and tossed chicken wings. Their unique flavour profiles, such as Spicy Korean, Hickory Smoked BBQ and Garlic Parmesan, appeal to a broad consumer demographic.
Primarily US focused, with a smaller presence in Mexico, Indonesia and the UK, Wingstop are targeting 3,000 global store locations, up from their current c.1,500.
The business has achieved 17 consecutive years of same store sales growth through attracting franchisees with its highly profitable model. Wingstop say that by year two of operations, new franchisee stores should generate cash-on-cash returns of approximately 35% to 40%.
Wingstop has undoubtedly benefitted from the lockdowns as consumers sought more takeout options. However, this presents a headwind to year-over-year growth figures as we exit the pandemic.
