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Wingstop (WING) Q3 Earnings call transcript Oct 30, 2024

Daily EarningsWednesday, Oct 30, 2024 11:43 pm ET

1min read

WING --

In Wingstop's fiscal third quarter 2024 earnings call, the company showcased its impressive financial performance and strategic initiatives aimed at sustaining its growth trajectory. Here are the key takeaways from the call:

Financial Performance and Growth

- Wingstop reported a 20.9% increase in domestic same-store sales growth, surpassing $2 million in AUVs for the first time.- The company opened over 100 new restaurants in Q3, marking a 17% unit growth rate, and expects to open between 320 to 330 net new restaurants in 2024.- The combination of AUV growth and a strong development pipeline has strengthened the company's industry-leading unit economics.

Strategic Initiatives and Investments

- Wingstop's media strategy, particularly its focus on live sports and streaming platforms, has contributed to record levels of new guest acquisition and brand awareness growth.- The company's partnership with the NBA as the official chicken partner and official wing of the league is expected to provide new opportunities for brand visibility and growth.- The launch of MyWingstop, the company's proprietary tech stack, has enhanced operational capabilities, guest experience, and digital sales mix, with a 69% digital sales mix and a 35% increase in first-party database.- The company has also made significant progress in mitigating volatility in its core commodity through its supply chain strategy, resulting in record cash flows for brand partners.

Market Opportunities and International Expansion

- Wingstop's international business is experiencing strong growth, with plans to expand in France and other markets, aiming for over 750 new restaurants across these markets.- The company's focus on digital transformation and menu innovation, such as the Chicken Sandwich and MyWingstop platform, is expected to further drive growth and differentiate Wingstop from competitors.

Executive Comments and Investor Questions

- The company's executives expressed confidence in their strategies, highlighting the effectiveness of their media strategy, brand awareness initiatives, and supply chain strategies.- In response to investor questions, they acknowledged the potential for mid-single-digit comps in 2025 and the sustainability of their growth, despite the challenges posed by increasing competition and inflationary pressures.

In summary, Wingstop's fiscal third quarter 2024 earnings call underscored the company's strong financial performance, strategic initiatives, and future growth prospects. With a focus on brand awareness, menu innovation, and digital transformation, Wingstop is well-positioned to continue its industry-leading growth and expand its footprint both domestically and internationally.

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