WING - Earnings call transcript Q4 2024

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Operator

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Wingstop Fiscal Fourth Quarter and Full Year 2024 Earnings Conference Call. [Operator Instructions]. Please note that this conference is being recorded today, Wednesday, February 19, '25.

of are Senior President Financial Vice Kristen Senior today Officer; Chief Officer; call Thomas, Kaleida, Alex President Manager the Michael and Skipworth, Executive and On Relations. Investor and Chief

go like now conference Kris. turn I ahead. would to over the to Please

Unknown Executive

Thank Fiscal Quarter Year to and Wingstop. the Call Earnings Conference for welcome you, Full and Fourth XXXX

results website at Relations published our on Investor earlier Our this available morning and are ir.wingstop.com.

to performance numerous statements. These and statements not and Our are cause today future subject what we could to includes forward-looking that currently discussion results expect. differ risks from guarantees uncertainties are actual of our materially

useful Our results evaluating of Presentation session, are information as risks and please GAAP our SEC a for non-GAAP substitute our ask earnings that Reconciliations to should operating question participants We X allow such considered results comparable follow-up question. in not condition. a last a ask our to be use accordance as GAAP. certain and future we various to prepared as contained in with isolation in filings keep to financial that or we financial performance. many could describe measures measures possible that in be release. affect can each you believe

With like to that, over to I would Michael. turn call the

Michael Skipworth

Thank morning. appreciate We and you, good Kristen, everyone joining call. our

California in Wingstop, hundred California. of moment those for affected acknowledge have Southern several to always by special results, a from and our Wingstop take discussing devastation the to millions we Before wildfires want I been fans. where the restaurants place has a

communities. like impact this out to go profound impacted. can entire a have and events Tragic on thoughts prayers Our those

Cross, dollar the month need partnership dollar with during program up February, made $XXX,XXX. Roundup will through support and we for those American in To contributions match the to help our of in Red

the We our protect worked who communities. and also gratitude our have responders, deepest tirelessly extend first to heroically to

industry line and leader XX of surpassing in was one unprecedented XXXX operate. top of the our category same-store record extending of we XXXX our to which growth. bottom on showcases results, another years sales record Now that our consecutive year, streak results. achieved We

For by XX.X% stacked XX%. by a new to of to grew We translates billion. sales driven grew record XX.X% by domestic fiscal we XX.X%, that restaurants And X-year $X.X comp XXX transactions. unit opened a a XXXX, system-wide delivering growth. And same-store sales net primarily

Adjusted EBITDA to increased million. XX.X% $XXX

ever been, acknowledge partners Our brand in started. of results center, a growth, Digital support Without to not them, and my of digital increased with global feel by our our to strong passionate primarily is business we as fourth team partners. transaction in all the underlying I strong. the that same-store success these yet and driven and the increased restaurants million. to and mix in possible. and were which be Adjusted sales the to quarter saw in delivered we I sales we growth Wingstop. strategies growth. Wingstop XX% fuel opened and is frequency to our facets in a just be results getting the business. are it's XX%. continue are the members XXX believe want our staying We In XX.X% time thank new net comp has years quarter continues $XX.X XX supplier happened here this These health demand for power our first increase double-digit of our at restaurant an as results XXXX, growth like our demonstration guests. of which would EBITDA

volumes, $X a years average just surpassed unit previous our of million we industry-leading ago. over Within the results set in target XXXX, target X

established we our targets for opportunity unit took and scaled, AUVs grow we and to this XXXX million have to Wingstop. an restaurants. scale reevaluate global in effort, can $X believe the for We AUVs global global units. long-term to we we new count Based both opportunity XX,XXX As on over

As transformed a behind creating to scale, years, our with has I strategies. into over last greater capacity the Wingstop brand couple reflect of invest back

tough the no While recognizing believe the occasions, when choices it of. quality yet, are consumer heard value we comes largest has is Wingstop the facing delivers. And also they restaurant to and proposition we're brand still one

enabling system-wide us have a way awareness of that an to up budget in has greater sales now $X.X billion, ad we meaningful to to Wingstop over With bring fund that show indulgent occasion. scale,

percentage over We XX% gap single-digit in pace, a mature increasing to the are at of by brand steady but couple brands. more a past low years, our building awareness at remains

Our opportunity lifelong fans into into attract more Wingstop is new significant brand. households and the to bring

previous are our XXXX, years, million executing sales to multiyear our move we strategies closer with laser-focused Consistent us AUV in on $X target. to

It's value, brand driving business. of leveraging our Our having transformation. scaling delivery menu innovation, data-driven are a quality, clear are consideration health awareness, strategies record our the see improvements on levels. standpoint, and scores, strategies purchase to intent at continuing seeing consist impact XXXX digital expanding brand marketing and our in From our channels, we finishing

strategies of in as of scores, and learning X time well phase on spent of partners from growth, showcase we and believe learning our the fair along our us impact industry. consumers to significant been are more remains with a past our have years, entering and from in to we're restaurants. we our we There brand restaurant insights ahead have opportunities focused amount gain operating broadly digital as extracting runway share executing, we we're that restaurant guests, with Over this are and the Wingstop, our the are our significant frequent What growth. continue We excellence those confidence members fair team having. the internal a transaction next gives

as wing the advancing official our We will strategy effectiveness of to always-on the relationship placements. into and forward excited are see our the media chicken continue of and marketing MBA. look to to lean chicken our We further partner

sizable multiple see presence including combined executing our of our game we executed the transactions MBA players All-Star give with to in confidence we in record league. UFC. is years are the years have marquee both the top NFL, our at grow strategies brand familiar great past expand the activations in A X sales of and growth. new WWE as on opportunity supported ability us demonstrated spaces, XX awareness, us consecutive and weekend, this We'll we and the This by in the same-store sales of growth example also

MyWingstop we was advance believe been business. tech digital digital our for platform. year will XXXX, the always forefront us a at We has in best-in-class at which transformational further and our our proprietary XXXX stack, Wingstop Technology for launched

The personalization million the providing and most digital nearly our seen versus Our impacts on database year, Guests data to optimized truly hyper pace the our our growth a a has personal customers, into surpassed improved gathered frequency from record beginning early increased ROIs experience launch them is content. of with registrations, relevant have with around platform enabled of we level -- strategy. new are which pronounced personalization XX% new by center acquisition hyper XX prior guest remarkable.

for that in is to will way a technology which more them, we been X in a risk resonates focused notifications past have information us and personally the of opting while the more in engaging our consumer-facing help This and that can advantage with also meaningful have the with fine-tune number our quarters, of for house the to of experience, our past the creating we many profiles increase Over in been seen an guests competitive restaurant. a guests platform. around innovating of our back engage we registering And our the platform, feel Wingstop. in have investments on digital optimize with

on guest solution and manual or another unmet experience. times ago, demand. challenge expand to shortening using future set that we over as started variability we demand. today processes consider restaurants lead X quote potentially A in The be to for It an demand consideration create unlock inconsistent consumers. times could believe can and a operate for we opportunities could our curvy be working like opportunity can example little an to quote years the daypart And lunch, in impact a capitalize on that risk longer will

step to us further our brand the XX brand for the benefiting in same-store solution driven fundamentally distinctive was a will almost experienced primarily transactions phase from sales that change cook-to-order on in is quality that XX% our that next hand past function AUVs X of over our to deliver years, our technology X and solution toss soft a chicken growth A positioning growth allow focused in While the we built by improves operations. flavors. growth brand of back-of-house been overall have and bold invested that

guest and basis. doing allow will that our We a a while expectations have set of this also for will more believe the over operating an reduction member times system discovered on have unlock become platform kitchens. and new unlock In proprietary brand ] service we proprietary on [ our meaningful our will around Ultimately, time. enable quote consistent to a in opportunity of increase kitchen in technology improving and AI-enabled we pent-up monetize how we speed team an demand frequency restaurant. believe to consideration developed in we another us this, We the operate kitchen powerful deliver

unit of accustomed of operating returns share for strategies issue. our of not set continues a executing, our of target to XX% platform $X are have fair already of to target system we the And our $X experience clear, and have brand it volume partner last convention this about This million. Wingstop new our our about further of Over and brand our north plus, be confidence AUVs I is million. is we our solution new is quarter, our to. partners want at scaling plenty consideration in We volumes above just strengthens ensuring that to restaurants average with are be too of industry-leading see part existing grown guests. and $X this throughput they capturing XX% and million, a supports unveiled This

are year more for begin on this true we'll initiative. We the rollout, game to and provide in a excited coming updates changer the system-wide Wingstop,

Essential seen past. best food level in With believe our our of investing is average economics, predictability flows a haven't strategy, our operations and created million, and into unit their the food of behind And they, we cash to are successful more businesses franchise in turn, Coupling $X.X we their XXXX supply we the at unit the the in growth. with record costs, than volumes in system levels. have partners to predictability scale this brand cost seeing alongside infrastructure industry. are

record anticipate rate we for well what growth restaurants XXXX. opened in XX% demonstrated demand is to XX%. as of Our XXX unit as net new the brand which partners' growth for in is a XXXX

of our for a brand partners development XX% roughly Wingstop. at growth pipeline translating into see is back development come This pipeline for We the demand end commitments X,XXX under development from with to nearly continue the strongest of existing XXXX, reinvesting into agreements Wingstop. restaurant ever record

the expansion last showcased more acquired was added successfully the The locations international for over in in strategy demand roughly and into we're success our level that million XXth quarter. our international interest the of U.K. was the Wingstop business. can $XXX Wingstops by our year fourth seeing month value The business, with provide. XXX creation for international showcases XX restaurants our in We translated ended market

early so so well encouraging globe. it to Although expansion, consumers across the international brand see resonates Wingstop is with our is in its

Z, globally, our value millennial quality see brand deliver. attracts we what consumer Gen that can that and sparks a with we to Consistent

excited XXXX scale see accelerator Wingstop journey XX a in our be restaurant global to another to top We brand. are to

exciting our Jude's close St. with to new by sharing like Hospital. partnership I'd Children's for news fundraising of program Lastly, Research a

success the we fourth for And created a share an our so back. in in opportunity way. we big did to quarter, give During who those

in for partner XXXX partners, brand back, million national on brand support life-threatening our this our our for world-class Our opportunities $X to such efforts obligation to will and directly diseases. with organization was look million opportunity and we'll team, an local with support St. to The to also these it grateful Jude's sponsorships childhood change mission. over positions and we Jude. business of St. to the exceptional continue research give St. as growth. and over incredible, that Wingstop, cancer Jude in health and a is step year life-saving organizations. organizations share I'm to along believe one is of is We well we phase and our that believe, to strong. along our for partners, happy XXXXdelivered this advance treatment and has other with and underlying charities $X.X momentum grants community families for for us that impact raised year next The are

focused closer move our global on As we are strategies, brand. disciplined becoming execution we into of XXXX, which to top us will XX we realizing of the a bring restaurant believe our vision

like With that, to the call turn over I'd to Alex.

Alex Kaleida

you, morning. good Thank and

revenues, we from Full are prior Michael, Royalty results. franchise In increased driven among our the $X brand openings System-wide record since year XX.X% openings billion. fees you net of Wingstop and $XX now heard versus other approaching prior year another delivered the sales a of As for sales billion. year fourth for XXX showcasing increased $X.X partners. pace year and franchise to revenue Wingstop by demand a system-wide the quarter, million, comparable the period, new industry-leading

Company-owned opened as company-owned million X.X% a in basis, was XX.X%, by as sales in by was growth restaurant transaction the grew a primarily XX.X%, in In a to sales, same-store transaction driven restaurant X-year growth. acquired QX same-store stack increase driven our addition, due and by by growth. transactions. $X.X comp On increased sales and driven by sales same-store quarter, well fourth which sales primarily

In gain. million In with X restaurants brand Manhattan company York New sale the the partner. signed the restaurants, for the the company-owned in XX conjunction development in fourth $X sale City an a existing market. market a our restaurants quarter, agreement the connection transaction, completed In to partners with of of surrounding the pretax recorded the we brand

acquisitions of million in be following million. $XXX to company-owned range new in in modeling restaurants, For disposition sales New of our openings $XXX we York anticipate restaurant XXXX, the XXXX in restaurant purposes, the to

XXX we deflationary increased chicken costs typical of to in and QX as costs bone points by prior prior environment year. sales the This the year. cost driven packaging sales and as Overall primarily compared of food a by restaurant percentage company-owned is in lap basis of the

at for able the For XXXX, for of and end the range food the into first were mid-XX% time in costs packaging our a and expectations brand's communicate we visibility history, have target year. to

Our brand at chicken throughout QX and to partners levels. in continued rise immediately saw elevated starting bone-in started the the when benefits year costs

the food just with cost below ended In higher wings. target would costs market spot have XXX year the partners classic on been fact, likely mid-XX% movement the food for to basis historically, points the XXX given where pricing

visibility the costs we mid-XX% packaging the with and XXXX Consistent XXXX. year, and prior into anticipate food range for to be further have in

we percentage scale restaurant XXXX, headcount-related in a the XX% of a which be Additionally, by our investments driven leverage quarter, expenses company-owned system-wide to SG&A million anticipate million in as by for continues of the sales increased primarily of period vision $XX.X our our support comparable of we sales total a as year business. was X.X% toward cost growth global XX $X.X the to restaurants between and XX%. show to to of prior SG&A top in becoming versus brand.

SG&A outlook for the SG&A percentage range. while similar percentage anticipate non-GAAP X.X% on operating a that measure is a And our making the was to an aspirations. X% XXXX, for based as expectations in XX.X% in $XX.X a increase Adjusted support we versus sales on Our our the long-term year. for of million to XXXX prior of long-term system-wide investments quarter, EBITDA,

$XXX model. was EBITDA strength Since EBITDA million, adjusted franchised XXXX year in XXXX, full have we our of our doubled our highly asset-light the highlighting

we ] delivered quarter, versus XX% addition, year. of prior [ In share the earnings increase $X.XX the a for diluted per

notes. the repurchase the used related transaction company's fees series purposes, liquidity corporate the issuance pay to and general transaction, financing a expenses, from December, of were a In and million we shares new of $XXX which of strengthened including for of securitized position stock. securitized the the transaction Proceeds company's completed included common

securitization of the per additional reduced approximately result the $X.XX expense this QX a transaction, completed December EPS interest As with associated share. by in we

anniversary mark company. since Maximizing June key our shareholder will public tenth -- a returns of our This strategies. becoming a remains

the securitization have nearly the the fourth in to $XXX our of additional transaction total following To of delivered that repurchase of Directors shareholder billion capital million repurchase our X,XXX%. accelerated of of $X our an Board During by quarter. shareholders commitment into authorized for entered demonstrate program, an a and share time, that stock to $XXX million our end we company And share close conclude program. to repurchase our the further to is quarter, agreement nearly return the returned common of first the anticipated

shares expected received retired delivered Upon under the total our execution Wingstop of XXX,XXX common representing agreement, ASR stock, and shares be the an ASR XX% agreement. to the estimated of of

under XXXX, the $XXX.X remain December repurchase million XX, share available As of program.

in share to XX, approximately $X.XX paid XXXX, capital dividend dividend returning of to to regular of to on dividend. of This a X, per of Board remain common addition share March On total of committed XXXX. we stock, quarterly of shareholders our In as and dividend resulting a through $X.X stockholders million. Directors declared repurchase quarterly XX, record our March will our XXXX program, authorized February be

Now on XXXX to our outlook.

heard us you providing mid-single-digit and growth same-store strategies confident of on growth path our Michael, of a XXnd that from in year. our guidance the have low we for sales sales to to consecutive are As year same-store our are

how an system to SG&A guidance which rate for implementation we nonrecurring continuing XX% adjusted growth and approximately $X.X that XX%, will be and stock-based which scale to global are $XX add-back million, of million an is outlook costs is $XXX expense. compensation of approximately footprint industry-leading, we is our unit example be to Our believe EBITDA million estimated to of globally. includes

expense XXXX. million be is to anticipated interest $XX Additionally, for approximately

XXXX. EBITDA growth XX% rate translates adjusted in inputs, these By utilizing approximately to

the X.X% X.X%. will first of the fund advertising for increase purposes, at to contribution Lastly, quarter the rate XXXX, modeling of start from

P&L impact the is funding investment modeling net As this neutral as a additional associated expense this a our with will operating to be subplatform. reminder,

year without commitment. was dedication continued Wingstop restaurant partners. team for have XXXX our incredible thank continued possible them to want and of global not the an members, results would supplier their partners been team and I members, brand for our support

achieving proud units. of path we the with progress into $X year, made million are XX,XXX-plus we our the greater have and of While past global against enter to XXXX our visibility we over AUV strategies targets

I'd to open Operator, Q&A. questions. line turn please like for to now the

Operator

We [Operator will and now question to begin Instructions]. session. answer

with Tarantino David from comes today question first Baird. Our

David Tarantino

outlook, the could I unusual My question right low you're is mid-single year what to comps term? for as is on expectation if Is follow-up. have XXXX an wondering about cycling? maybe on is to the comment And to I framework XXXX. think maybe you digits targets? was low you Or what your your a long-term mid-single given do digits use now, longer

Michael Skipworth

is for the this David, Michael. Thank question. you

meant it of on I for of kind and as maybe target that's more we X-year to think term. XXXX years, an to the X- that previously as can And that mid-single we've that basis relates you long outlook X-year a to expectations to our what it's a of significantly at out And obviously, guide basis. in we average. to intended, we since prior long-term we as over that and had digits, X- broadly kind look model issued the as have but target, be use outlook, see to the to really average few would outperformed against

David Tarantino

you on want do for specifically, trajectory talk on could half thinking a comp if and would about -- about and comment playing thinking half, be -- QX the great. year? And you this And the then that the how how what year think you're as whether first to of quarters just Great. the out see perhaps you is you about kind follow-up you're

Michael Skipworth

to expect definitely as morning relates questions We this a David. comps. Thanks, few it

head if restaurant broader maybe Wingstop, take I'll past at response. before, entire more meaningful those industry transactions. delivered was industry, actually But a XXXX that a experienced a declining the And you across if being we've industry And and at comp in on I look in years that's think that you over actually it's way. in And look year the XX.X% XX%. X the where gained traffic. an the backdrop share just So that by was Wingstop industry the of restaurant driven comp, against north not the a transactions primarily of on both growing in hit

frustrated consumer also those a backdrop is price the were multiyear X excited revenue effectiveness attribute against but impacts, base that with we the position in us really put outsized really build and just in advantage operating took lot win that able something to to too would about that of level our that I and executing from One grew and industry change we And that almost grow took acknowledge we of strategies there. the an provide view of in things. a much marketplace as then what proven fact share new that that of in, we're we're of and believe the a that. off that we're brands And this the step we and

long and out. million innovation today prepared MyWingstop the running in to to that our value, we've we made the everybody growth the the in which confident as really our the investments target operating way at continue promoting as this backdrop us term. confidence year remarks, really investments And to even up on be scale and be a in as to million. along that referenced $X way, believe spot that AUV the a tenants the and QSR remain we it's brand. brand it able we able for to we also around we as platform, deliver new prioritize in we've sustain managing term is continue heavily the actually gives consumer business we're understand the into evolved. strategic being look way position or I their definitely Wingstop value are to QX, $X.X along we But to want think year selective transaction to both business and are from going of kitchen to the are we we a But has setting business trends. that a is quality But And reverse of that today or end long growth long-term for in made way that showcase whether

on, I point And really think I important business. and our it an just strength underlying the is think of hits

we not are delivering that really our be of north fundamentals strong. again, the might of are While overall XX% comps business the

then show XX% something look you us for strategy, grow And XX digital a users, you of they've just digital is And million it's look allowed information and of million flows our business and and progress that's about. XX at north made $X.X to today. at from a with supply that and number year partners the If at seeing our cash strong are -- about we're ever drive given now XXXX the brand really unit excited you're AUV development database new business, data XXX our itself we've that's million against is for that it's what the chain up us been, north as in about ago our users. we're able to as

is for generated really XXXX, if thing look $X.X our think again. XXXX in that one you the on expect of opened their and restaurants to model, sales. outlook understand that we in at as billion sales, can you see, based we I strength system do north to important of And you our And the annualize that

see really and and that And strategies against. a healthy strong, of our really we and our potential lot so runway in the is we're of strength model executing

Alex Kaleida

on a bit in the pace this of can comp. David, jump And the Alex. I is

mid function, is Something low on to our a same-store we guidance really of your to sales in digital the did lap. contemplate point

an is example. quarter first The

primarily We we're where transaction consecutive have driven in first comp years X the by XX% lapping growth. a quarter

the the see of out, the in be But we believe related a the weather heard think it's that's only of I in out lab. be this to there California. little and unseasonal first specifically, ours did quarter. Southeast function the what other that, fires outside the from one-off about of So you've call and lapping. pacing in we do QX more kind and bit more that But we'll of I follow of peers will the noise will a is example

Operator

The Cowen. next question Andrew is TD with from Charles

Andrew Charles

that Al, maybe just last to a follow-up question.

will You quarter, Is lapse a you XQ the point us can into you're similar for Last instance, us flow, or up think quarterly through through guys how of the instructing there the and quarters you shape help the the XXXX? from X-year through if guide metric way about holding talked XXXX. XQ. about trend stack kind you will, to

Alex Kaleida

I out wouldn't say last Unfortunately, some just as lapping. of play given linear what it's the growth transaction had what as Yes. Andrew, we're we year of and level

the to So on comp to we think we what about thought it we my more the pacing about how same-store contested and of or comments guidance. the back in low mid-single-digit sales

Andrew Charles

Okay. And then on I just wanted to CRM the efforts. follow up

how the XX And learnings CRM, it was your working many people you You quarter have in these data the given you've how Can the are implementation. you're a MyWingstop from think in just and just given set are just database you had sales users. digital, were record starting lots [ of people early number. that with platform of said the tech talked about following love how e-mail XX% with us ] remind I database, you many million added base? the fourth into that

Michael Skipworth

and XX% we're we've in Hi, to and use MyWingstop ability I really we're months our strong in Andrew. that excited saw mean, built, Yes, well connect number that X lean the really And heavy users deal growth and mentioned year-over-year. digital growth actually and hyper the then multiyear excited. up is new the in we're growth -- with And seeing database -- check what frequency we're see connect guest we're among over heavy. seeing seeing that highest to an and our we've nearly within we X% of guests But XX seen early an have in roughly over of the personalization. both increase fact with heavy MyWingstop our number to XX% some the we guests increase is among we gas with are of as in that million actually the that an move about strategy over our And that really our of experience users. is curve really of as average year-over-year. of we with satisfaction consumer like saw increase. we XX% frequency. lean see to saw hitters the We digital that into we We actually

ends frequencies really leveraging of nice by And so MyWingstop growth the personalization. seeing in curve, hyper we're this both

as drive think to business about we're the view term. so to to we drive as over business something really we continuing And the continue this the excited long that and about growth,

Operator

from is Jeffrey question next The with Bernstein Barclays.

Jeffrey Bernstein

in -- you Great. My first best on measure And think own up do peers QSRs you value for of person mentioned example, bundle, one that QSR think the your value. meal question, a scores? sandwich environment all following in about value, especially much have, you you you where how Michael, an communicate value just for how basis. both per consumers very $X family do do a know on attractive you talking pretty meal menu,

for have Just score you communicate best think trying a And and sense then that. to about how I to follow-up. get where X you how

Michael Skipworth

we think improvements I highs XXXX, And that in you that think we health point. note important than is measured in year indulgent just And about in more It's with brand value in really those it money. occasion, actually price that more that or metrics. value prepared yes, Wingstop compare to and pair it's I the record that our quality remarks, we've when our Jeff, mentioned a for scores. exited at

against necessarily showcased quality. fair the is competing and $X share, value positioned to is in prioritizing not we our Wingstop meal, know And that so think well we which I but guest XXXX. win value we're that

Jeffrey Bernstein

the well actually for is to more XX% XX% just It's long-term That's past follow-up been XX% you're And that for growth. plus above did you plus growth about about Understood. clearly the the although on XX% decade. thinking then unit talking we've just XXXX, in the 'XX. to similar the

should target so just or much So next growth, versus you XXXX. mentioned, mid-teen I that you is more think Seemingly, U.S. years. openings And about X,XXX reasonable have international the few wondering, said within units. stronger you for assumption that think how a we pipeline for a

Michael Skipworth

pipeline us about. gives XXXX, our obviously, number excited able to Yes, we're something excited And to the for by a development pipeline. to confidence be not Jeff, of guide We're really at we're strong a encouraged point what such and beyond that's strength years you just where guide what necessarily you And back ever roughly X,XXX restaurant commitments. our pipeline we're ago, I going will as strong tell was that go as been. to really is about X But is if XXXX. it's

on XXXX I and enter that mentioned that As the X-year commitments we it's close around X,XXX reflects restaurants in as restaurant XXX opening call, period. to

up the and can so of the excitement. showing you it's And see, really level in pipeline,

to testament have and just of more the the partners is a unit brand Our with strength Wingstops economics. opening it

Operator

is The Salera Inc. next Stephens, question with Jim from

James Salera

reasonable to to continue a whole Michael, 'XX new how and attract experiential focus a marketing acquisition? QSR which If just I impact wanted maybe kind of back value at And in environment at price as something very acquisition, having in been has had the the we guys, growth you messaging of some circle kind when big focused a still you but industry your this the of on price. of source combination about you to said does customers messaging customer is and about advertisement value and moment? new for thoughts kind think new your guest the

Michael Skipworth

question. Thanks the for

on we think they the that new as a of heavy call, we QSR guest record level mentioned And acquisition. are user. saw I

it we're new the what some is And that. MyWingstop leverage about that showcases part of core wing, we're we're that guests back and seeing chicken the when it commodity, core coming of by we've ever seen, throughout think and it's guests, a These talked so Wingstop, we're that sandwich XXXX. in, seeing come into rates what excited and saw we're retention in encouraged in than via we And retain which highest our little them encouraged that pretty traditional and I do seeing whether bring are we're our the we're to them by. of new them product curve faster guests up bone-in about able the or our we bit frequency move

consumers, and on that deliver And think, to spending they but selective that consumer out is it, dollars. mentioned value think in I are how their earlier, we the they for. looking quality able So the dining are we're I

well bit fair our I they and to is are more win making share. choices being selective, so positioned more when Wingstop And think a

James Salera

X in as compare XXXX a have you How Great. follow-up. the guide to that. quick just of as occasions? is factor given way And maybe part Have your out and same-store can guys we a pricing to think as average about kind a as what QSR sales ticket other maybe a across

Alex Kaleida

Jim, this Yes. is Alex. jump I can in.

of in tend X party more Our be to -- average be or more. low larger of we occasion group a that mid-$XX size to tends range, a to ticket

maybe fast quite eater frequently may more So see comparable not occasions individual food. with of you the

a in just I'd X% Regarding past, pricing strategy do just the the a uncertainty historical amount macro about years cadence lower going anticipate, to like year, facing is end, they to faced X inform of monitor inflation there. some to approach, different consumer X% but the listen and the this other and our in towards maybe on pricing, particularly significant consumer the this we're expect about pricing disciplined the our we learned the dissimilar a based market talked where of California given of having to trend not This in in of what consumer we windows. we've health and to in

Operator

The with Bank Senatore next question from America. of is Sara

Sara Senatore

follow-ups. about I question, One kind any mean, I it same-store that wouldn't growth, moderating you is, talked so. in unit when accelerating think X in sense maybe I like -- a potentially slightly growth sales? there of guess role any unit is has had have you

X be that obviously everything I You that those compare and tough still but sometimes on And your aside things. just you long to thoughts there have -- tends get inverse I from runway, else covered. correlation to an between wanted a

context And So I'll of the quick just that comp versus unit especially then see? question. want that what have notion in franchisees of and balance, to another growth

Michael Skipworth

really total No, is we're of not X,XXX. business, I is we north restaurants you yet if opportunity seeing know think that which but X,XXX today, our than any look at believe And more you our impact. domestic

of a in front of white lot So us. there's space

XXXX the vintage, $X.X playing $X.X -- out see XXXX around excited X in on our don't about about development in $X.X we that at the million million a about which really million. of average, so outperforming is vintage role gates And we year overall comp. came actually the really and somewhere But talked about is we're to what

restaurants we're And is brand about which so And our excited encouraging partners really to obviously, continued that see. are seeing these really as productivity new in well.

Sara Senatore

return repurchase. Got deciding in the how it. in That's the context very to helpful quickly thought done you've color. share And the just then you guess I dividends want in just what terms past, shareholders as the was higher of know well. environment? rate I special cash to interest of on Alex,

Alex Kaleida

think return Yes. Thanks, you have or I Sara. this And saw And our opportunistic strategy. a opportunity with shareholder issued of that -- the the maximize Board is long-term we of think sought tranche last debt and quarter, to the our through conversation approached program. an for way a about support to capital approval returns new new repurchase share $XXX us million and $XXX was $XXX be million additional from million

I and a And so strategy thinking Board. accelerated the repurchase shareholders. million share that you'll into see value can on long-term the our to mindset or us about think along $XXX with continue that we creation, for of that capital we're provide have focus of about think deployment as capital program, end And we and return the opportunity

Sara Senatore

dividend? So value of was stock the better value the just the compelling -- than idea that is use a is that a special

Michael Skipworth

That's right.

Operator

Brian with Morgan The Harbour next from Stanley. is question

Brian Harbour

the anything times? of about deploy? system change some how would capacity you predictive there? that operating And that main Is you to is kitchen there expect think the service we should add quickly else thereby just to Michael, and sort mentioned, lower there

Michael Skipworth

and role technology and member. members the ticket to the change a fully as Brian, be kitchen the And excited while yes, going we further just is something leveraging known it isn't and team think brand are about integrated going into gamification specifically this actually built engage also And was new we our up we And as think this well to This this really speed This this, really kitchen Wingstop leverage as enhance ultimately, see And operations. members. cues we to a opportunity competency believe is about, quality and increase new workflow. role platform. was codeveloped a for. But order the team and to it's really doing it's actually the does for of that Wingstop. we fundamentally is are our visual our for AI team excited able partners, operating going we're to provides exciting kitchen digitization and platform. of that to productivity clarity

digital their also foundational MyWingstop. order screens think that solution this we've of about and going with around us platform in their guest to we happening as made allow includes platform But investments actually our be think But we that's consumer-facing manage is will expectations our inside order-ready status. order opportunities to the to what's Brian, kitchen this connect our business, consumer-facing something,

demand increase million. we increase and be but And AUVs that we towards to know And to to so consistent. this able help it's going of to continue scale the only we is big pretty unmet some exciting believe for be frequencies as believe driver to a unlock not we're to more more going it's make we -- consideration going us, it's speed, Wingstop and to will us over time, $X going be continue

Brian Harbour

about kind think strategies really you those this placement? personalized as you do Do maybe years. think it's think this whether of you sort you've worked well the ad into have When most will the more which Is the couple harder? leaning it side, expect sales and that advertising had to about X over change of of come be it. that or good of this of What year Which innovation impactful those to more do off of could you last you most perhaps Got Okay. do it's several marketing very very right? drive delivery business year, years. year, --

Michael Skipworth

there growth of or each years. and of where year But growth. there were the inverse those answered where what's comp the there's years XX probably sales healthy ago high, and synergistic strategies I consecutive XXst in of that it is as sales against. we we're executing think I -- was growth of the question And driving same-store board, one the then was other those and been mentioned across asked these we've were year most, think really sales years the really lower. the Brian, been our marked the some nature prepared a And across remarks, XXXX

And any different. that strategies lot be runway associated going of it's working have each XXXX so these And I don't to is a them. think together with

brands. brand if I in think over And XX-point gap year, to runway of remarks, amount have to actually low awareness. the called we you other we We digits. it over our mid-single just national last prepared in referenced moved the this we out back a reflect

these huge. and is example an they of have. multiyear strategies opportunity just impact that so that's the And And

but would call And about don't it's I executing one with of specifically, of them out think so each one any I against them discipline.

Operator

The with next question Stifel. from Chris O'Cull is

Christopher O'Cull

follow-up of comp quick year? a level had set quarter will the the on guided the cadence. you any range maybe for full outside trying I expectations. fall help Do everyone Alex, on I'm anticipate to just

Alex Kaleida

to but deliver guidance, we're low outlook our think I quarterly confident to give to going sales. not ability mid-single-digit of we're same-store Chris, in our

Christopher O'Cull

and overlap new Okay. crossover much between there traditional or Fair relatively programming. enough. those been And How like I on has and on more to a then WWE sports marketing and programming the I is like company the UFC audiences NBA marketing. NFL. audiences question know had

curious audiences. just Just you I'm years. what from a kind significant these of the understand new where you've might get of had incrementality presence kind over

Alex Kaleida

audiences, Wingstop's But you wouldn't lot a say overlap, tell what I guests. like new there's but there Chris, audience These looks lot. Yes. some is core would core is I their a

like And growing so really what these new we we're that's some properties of into. about

we like And about we're UFC about. lot a grow these excited as so some we new that as opportunity awareness brand talk of continuing of to -- think areas there's look we in

Operator

with Danilo question Bernstein. next is Gargiulo The from

Danilo Gargiulo

increasing on MyWingstop up maybe awareness the you Michael, if awareness. your maybe over today, you've with comment on want frequency to you how on thoughts as accelerate are to are pushing Wingstop you hyper on I that the your generate sales actually upside reflecting gap that then what more And kind expecting specifically, much from past been quarters, that? And awareness couple ROI versus follow able the you're marketing your And personalization. and given up of reflect to of happy platform the on how closure? are

Michael Skipworth

time. question. Thank -- in average, times the Wingstop We're when excited big about that we frequency we're about a talking quarter point as on is points a a we you the brand see moving frequency, about that occasion, But talk awareness. X with month. this opportunity opportunity still Obviously, at because once it's low for decimal relatively or a

meaningful AUVs $X a X know working scale X we our to million. concert we're from in has things X so to how just X.X to those occasion more impact in And winning really a that with going our today another as look But quarter AUVs. we we at target of about million think

Unknown Analyst

Okay. you're it? Excellent. And operational then terms the that going early you communicate in demand to serving And seeing pent-up that increased service were the what stores maybe how plan you then stores on of forward? or tested was test in you And the the the to kitchen have I'm from uplift results consumers of speed seeing? some -- do you're much improvement are now sales initiative, wondering how margin

Michael Skipworth

test we we marketing to of this example are as in service. been Yes. it's win we a meaningful increase saw restaurant. to able front and we've about recently, but pretty now, if just about outperform really that But in that an a more we're I earlier, of as that consumer to unit message control. frequency, going think with that referenced Obviously, X capture per it's and we us. volume our opportunity occasion, take more a testing this for speed are few call And what seeing restaurants a consistency had it, seeing in excited in restaurants. and restaurants, we've We're our over roughly, increase year most we test, really it in quite XX a those remarkable average in And see

within, these we're a set, call so be not strategies confidence demand a executing strategy, unmet way out of anything more there, us really we against. to to then this get these the which of really gives existing going leverage a we're in that become really lot and next the new months. bolsters as but And XX from that consideration executing to It's to it start strategies think capture against. we're it, able this And rolled

Operator

Jeff The next Gordon question from Farmer with is Haskett.

Jeffrey Farmer

You income health can did touch share your across thoughts on the Wingstop that lower of cohorts, on especially your of some income the it, consumer? but you customer

Michael Skipworth

good Jeff, Yes. morning.

more -- more I I speaking, guess, kind I'll okay. just seems think say broadly of -- broadly the consumer

okay consumer If card it's balances, you is the in credit jobs, it's I whether wouldn't seems say data, say general. good. okay. whether bad wouldn't at I look the wages,

for engage our the data And with increase they definitely consistent indulgence we or the we the that anything, and anxiety exposure think consumer this to some consumer. an But that Wingstop insights but speaking, okay. conduct, in and I our whether obviously, seen impact continue can we've strategies and about But with their generally behavior the the obviously, we'll of stay that, today. execute consumer. about it's consumer how say we're trip elevated will on we the future know that's to just in I taking close see against talking of

Jeffrey Farmer

Okay. here. That's helpful. And just follow-up X

like through party? things are In some how Is How metrics? measuring doing that Or your customer. that? of a anxiety you terms of those third core you are measuring with

Michael Skipworth

think consumer's in reported both in elevated it you we just the And third-party internally. January insights leverage our about research mean we as anxiety how own future. an the Yes. as I was well I that increase consumer saw do widely

Operator

from Goldman with Cho Sachs. is question Next Christine

Hyun Jin Cho

you envision continue also, And Canada? So of the Europe any Western from momentum side I the impact to the upon of recent expansion? how drive touch in in business. Wingstop U.K. do future wanted of to view international acquisition the you Do

Alex Kaleida

Christine, We example to for We as see that a you charged it's upfront as as investment a we heard And that as that facilitate for area to been the an international the making creation small thanks way us. area exciting development well the in took super business. We've brand talk facilitate us. about for growth really equity a about transaction, these of way the value $XXX create shareholders. with of our talking the And us our upwards this. the a on the million the minority for is in by market. startups And transaction low of partners open position a saw growth. market. strategy question. The you've in also was our international value for investments for U.K.

part specifically, For went financial we're and restaurant XXX an this of we could into one a the with well. extended transaction, as just somewhere this conversations as agreement could at point, U.K. thought range think see now opportunity where was Ireland see opportunity Europe the restaurants. I having transaction opportunity the there that And an in the we U.K. expansion the be development U.K. and and the bought beyond we seeing through the we sponsor the upwards in that Ireland. XXX We do be of business, Western including as

X to XXXX more so be in strategy we markets really new in a additional And enter year. component to international and as to from come that our us which we're it's anticipate X of markets, about excited this we probably

what our based Canada of they've -- brand after to With provinces proper. in Wingstop about seen at start example They're and the regards expand almost Canada opportunity can is that strong. as U.K. into we that our building awareness really other saw flagship looking business. in those off on It's is market than locations that in extensions what also Toronto now is well, to examples just the in And Canada, partner that outside faster deliver. up moving thinking curve another

for So is the really us. a international one story exciting

new in what XX% to addition outlook development, we're to unit component in seeing of our In and it's XX%. a

Operator

from Guggenheim question Francfort Securities. Gregory with Next is

Gregory Francfort

were basically a the Alex, to last think try visit. to you talking you a strategy REIT customer and and get then I about the bring I time spoke, in

help And in improve? was days. you're the that? much Can frame that you first maybe it seen up just what maybe How other metric strategies on working from XX think any you've to front? doing I change you're that

Alex Kaleida

measure of Yes. seen after metrics quickly of visit that that our first XX Great do from how in database, an through guest is entering the new days. flow That's a they example What first of do launch our we've MyWingstop. question. return we one of

opportunity were high level, so yet of for And X still for there's lot retention that additional we of a record us. guest first that out XXXX, rate. visit retention had looking We rates, one. new a just measure And we on coming following a record

around against. learn they cohort investments see something we're around That's guest then different build we're -- can making so data points years. our that can how that we deploy And enriching we XXX to early database, about and the attaching one benefits And mentioned, the segment and them, providing that we Michael hyper of in personalization very strategies opportunity. a groups future as something on multiyear profile

Operator

This Fiscal XXXX Wingstop and Fourth Call. question-and-answer concludes the and Quarter Thank Conference today's Year our for session Full mentation. attending you Earnings

You may now disconnect.

Wingstop (WING) 19 Feb 252024 Q4 Earnings call transcript