Wingstop’s monumental growth trajectory isn’t stopping anytime soon, according to fourth quarter financial results released today.
Systemwide sales increased nearly 37 percent from 2023 to 2024. The franchise ended the year with $4.8 billion in sales and 349 new openings, a 15.8 percent increase to 2,563 units worldwide.
In the United States, same-store sales increased by about 20 percent, ending 2024 with an average unit volume of $2.1 million.
“2024 was another record-breaking year, surpassing our industry-leading year in 2023,” CEO and President Michael Skipworth said during the Q4 earnings call. “We achieved record top- and bottom-line results, extending our unprecedented streak of 21 consecutive years of same-store sales growth.”
Even though it’s consistently breaking its own records, Skipworth called Wingstop “the largest brand no one has heard of.”
Digital revenue in Q4 made up 70.3 percent of sales. Wingstop saw an increase in repeat customers via digital ordering as well, Skipworth said.
Last year’s success inspired some new goals for the company. Skipworth said Wingstop is shooting for $3 million in average unit sales, which about 10 percent of stores are already achieving.
It also has its sights set on 10,000 stores worldwide, about quadruple its current footprint.
“Our opportunity is significant to bring Wingstop into more households and attract new life-long fans into the brand,” Skipworth said.
Related: Wingstop Franchisees Combine Forces in Florida to Form MoMagic
In November the franchise announced its intent to issue $500 million in securitized notes. Net proceeds from the notes will be used to pay transaction fees, corporate matters and “strengthen the company’s liquidity position,” according to a news release on the matter. That could include buying back shares of Wingstop stock.
Securitization is a process in which a company combines its debts into a single security as tradeable shares to be sold to investors.
Most of Wingstop’s stores are in the United States, but franchisees operate 359 stores internationally.
“It is encouraging to see our brand resonate so well with consumers across the globe,” Skipworth said.
In December, San Francisco-based investment firm Sixth Street bought Wingstop’s United Kingdom franchise company Lemon Pepper Holdings for more than £400 million, according to Bloomberg. Co-founders Herman Sahota, Tom Grogan and Saul Lewin, as well as Wingstop, will remain minority shareholders, the publication reported.
This year, Wingstop is putting its efforts into marketing opportunities. The brand is the official chicken sponsor of the NBA and is putting more energy into other major sports organizations like the NFL, Skipworth said.