#United States #Dallas #financial results #Wingstop #restaurant growth

Wingstop Inc. Achieves Record Growth in 2024

Wingstop Inc., renowned for its flavorful chicken wings, has delivered remarkable financial results for its fiscal year 2024, with notable growth across various metrics. The company showcased robust performance, achieving system-wide sales of approximately $4.8 billion, marking a 36.8% increase from the previous year. This achievement is significant, especially given that it represents the 21st consecutive year of same-store sales growth, validating the effectiveness of Wingstop's strategies.

Key Highlights of Fiscal Year 2024

In the fourth quarter alone, Wingstop reported a 27.6% increase in system-wide sales, reaching $1.2 billion. Notably, the company opened 105 new locations, contributing to a total of 2,563 restaurants globally by the year-end. This expansion reflects a growth rate of 15.8%. The average unit volume (AUV) for domestic restaurants also saw a significant rise, increasing to $2.1 million.

Furthermore, digital sales proved to be a crucial driver, accounting for 70.3% of total system-wide sales. This digital transformation has allowed Wingstop to leverage technology effectively, providing an exceptional customer experience while catering to the growing demand for online ordering.

Financial Performance Metrics

The financial outcomes for 2024 were equally impressive. Total revenue surged by 36.0%, amounting to $625.8 million. Net income also skyrocketed, up 54.9% to $108.7 million, translating to $3.70 per diluted share. The increase in adjusted EBITDA—a non-GAAP measure—was equally substantial, rising 44.8% to $212.1 million.

The company's growth strategies and brand loyalty were clearly reflected in its strong performance, as CEO Michael Skipworth noted, “The 2024 results demonstrated the strength and staying power of our strategies,” emphasizing the positive outlook for the future as Wingstop aims to become a top player in the global restaurant market.

Operational Insights

In 2024, Wingstop experienced a 10.1% domestic same-store sales growth in the fourth quarter compared to the prior year. This steady growth continued to illustrate the strong customer base and the effectiveness of promotional strategies undertaken by the brand. The increase in total revenue was fueled by not only new openings but also enhanced marketing efforts, including a higher contribution to the national advertising fund.

However, the cost of sales also rose, attributed mainly to increased food and packaging expenses, including the costs associated with bone-in chicken wings. Nevertheless, Wingstop managed to maintain healthy profit margins amid these rising costs, which is a testament to its efficient supply chain management and pricing strategies.

Looking Ahead: Financial Outlook for 2025

As Wingstop prepares for fiscal year 2025, the company is projecting moderate growth but remains optimistic about global unit expansion of 14% to 15% and low- to mid-single digit growth in domestic same-store sales. The anticipated SGA expenses are expected to reach around $140 million, reflecting continued investments in workforce expansion and strategic initiatives.

The announcement of a quarterly dividend of $0.27 per share, amounting to $7.7 million, underscores the company’s commitment to delivering value to its shareholders as it grows.

Conclusion

Wingstop Inc.'s exceptional performance in 2024 reiterates its strong market position and commitment to growth. With a strategy focused on enhancing customer experiences via digital channels and restaurant expansion, along with an ambitious vision, Wingstop is well on its way to achieving its goal of becoming a top global restaurant brand. Are you ready to experience the flavors? Wingstop is only getting started!