Most of Wingstop’s store growth comes from existing operators looking to reinvest in the franchise.
Domestic Wingstop average unit volumes hit $2 million in this year’s second quarter, an increase of nearly 29 percent, according to the company’s second-quarter earnings call.
The 2,352-unit chicken wing franchise set its $2 million AUV target two years ago when U.S. average volumes hit $1.5 million. Same-store sales are up 28.7 percent, “which was almost entirely driven by transaction growth,” CEO Michael Skipworth said.
Now, Skipworth said a $3 million target isn’t far off.
Wingstop added 73 restaurants last quarter and brought in $1.2 billion last quarter—a 45 percent increase over last year’s Q2. Of those sales, two-thirds came from digital platforms, according to the earnings call.
“I am truly humbled to be part of a brand that is experiencing such unprecedented growth,” Skipworth said on the earnings call.
Related: Wingstop’s Stock Price Surges Ahead
The 30-year-old franchise has grown rapidly over the years. That said, “Not a lot has changed with our brand,” Skipworth said. “We have remained focused on our simple operating model and delivering guests that indulgent Wingstop experience.”
In 2023, Wingstop did $3.5 billion in sales, a 27 percent year-over-year increase. Its more-recently introduced chicken sandwich is bringing in new guests, who Skipworth says are returning.
“What excites me the most about this new guest is they’re demonstrating a higher frequency than our traditional guests,” he said. “Theses guests are moving up the frequency curve faster than what we’ve witness before.”
The chicken wing space is booming. There’s Buffalo Wild Wings, the 1,312-unit brand that did $4 billion in 2022. Bonchon offers Korean fried chicken wings. The brand had more than 400 units and did $327 million in 2022. There are emerging brands, too, such as FAT Brands-owned Hurricane Grill & Wings, Wings Etc. and Wings & Rings.
Related: Demand for Chicken, K-Culture Drives Bonchon Sales
Based on the first half of this year, Wingstop expects to open a total of 285 to 300 new units by the end of 2024. The previous estimate was 275 to 295, Chief Financial Officer Alex Kaleida said.
“The visibility we have into our pipeline gives us the confidence to raise our development outlook,” he said.
Wingstop’s existing operators are driving more than 95 percent of unit growth in the last year, Skipworth said, and the development pipeline is “the strongest it’s ever been.” The franchisor estimates the potential to have a 10,000-unit footprint worldwide, with the capacity to support about 60 percent of those stores in the United States.
About 300 Wingstops exist outside the United States. The company’s international stores experienced same-store sales growth of over 82 percent in the last two years.
“As we look toward Wingstop’s opportunity to scale globally, we believe we have a clear line of sight to scaling Wingstop into a top 10 global restaurant brand,” Skipworth said. “It is an incredibly exciting time at Wingstop.”