Wingstop Enters Spain as Part of Wider International Expansion Plans

Rhea-AI Summary

Wingstop (NASDAQ: WING) announced its expansion into Spain, opening four ghost kitchens in Madrid, starting March 31, 2022. This marks Wingstop's entry into the Spanish market, aiming to replicate its success seen in the UK and the US. The company expects to establish a traditional franchise model in Spain over time, emphasizing its unique flavor offerings. Wingstop's recent strong performance includes a system-wide sales increase to $2.3 billion in 2021, reflecting a 20.2% growth from 2020. The brand plans further international expansion, targeting markets in EMEA.

Positive

• Expansion into Spain with four ghost kitchens, enhancing market presence.
• Strong historical performance with 20.2% sales growth to $2.3 billion in 2021.
• Plans for traditional franchise growth in Spain indicate long-term strategy.
• Successful model in the UK provides confidence in potential Spanish success.

Negative

• None.

LONDON, March 17, 2022 /PRNewswire/ -- Wingstop (NASDAQ: WING), the award-winning wing concept with more than 1,700 locations worldwide, today announced its expansion into Spain with the imminent opening of four ghost kitchens in Madrid.

The kitchens – the first two of which will open on 31^st March 2022 in Madrid – were brought to market in partnership with a kitchen logistics partner to jumpstart Wingstop's presence in Spain. The third is scheduled to open in early April, with the fourth earmarked for a summer launch.

Through a delivery-only method, these four kitchens will collectively reach flavour fans across nearly all of Madrid. This is the first of a larger footprint potential in Spain, which is seen as a key growth market for Wingstop.

For the expansion into Spain, Wingstop seeks to capture the attention of new customers by offering its distinctive brand proposition focused on flavour. The company aims to recreate the devoted fanbase developed in the UK, the U.S. and other countries around the world. The delivery-only, ghost kitchen model will quickly integrate the brand into Spain, where Wingstop expects a traditional franchise opportunity to follow in time and is actively seeking a partner to lead its brick-and-mortar growth.

"We are excited to bring the flavour of Wingstop to Spain initially leveraging a delivery-only method. By embracing our entrepreneurial spirit, in just 12 weeks from planning to execution, we're getting Wingstop in front of consumers in Madrid" said Wingstop Vice President EMEA, Lisa Paton.

Wingstop believes it can operate 7,000-plus global restaurants, 3,000 of which are expected to be outside of the US. EMEA is an important component of the global growth strategy, with new markets targeted within the Middle East and Western Europe. Further expansion is also planned for countries where Wingstop has already launched, such as the UK, which has been a major success story for Wingstop.

In the last two, pandemic-affected years, Wingstop in the UK opened 16 new restaurants, won Deliveroo's Restaurant of the Year award and enjoys average unit volumes of over $2 million USD – higher than the average unit volumes of Wingstop's U.S. home market. The UK has successfully attracted a young, urban and loyal customer base, providing confidence in the appeal of the brand and the runway for growth.

This launch comes on the back of strong Q4 and 2021 annual results by Wingstop. The system-wide restaurant count increased by 12.5% in 2021, with 193 net openings. The strong restaurant development combined with same-store sales growth of 8% in the U.S. resulted in system-wide sales of $2.3 billion, up 20.2% vs. 2020.

About Wingstop

Founded in 1994 and headquartered in Dallas, TX, Wingstop Inc. (NASDAQ: WING) operates and franchises more than 1,700 locations worldwide. The Wing Experts are dedicated to Serving the World Flavour through an unparalleled guest experience and use of a best-in-class technology platform, all while offering classic and boneless wings, tenders, and Thigh Bites, always cooked to order and hand sauced-and-tossed in fans' choice of 11 bold, distinctive flavours. Wingstop's menu also features signature sides including fresh-cut, seasoned fries and freshly-made ranch and bleu cheese dips.

In fiscal year 2021, Wingstop's system-wide sales increased 20.2% to approximately $2.3 billion, marking the 18th consecutive year of same store sales growth. With a vision of becoming a Top 10 Global Restaurant Brand, its system is comprised of independent franchisees, or brand partners, who account for approximately 98% of Wingstop's total restaurant count of 1,731 as of December 25, 2021. During the fiscal quarter ended December 25, 2021, Wingstop generated 61.3% of sales via digital channels including Wingstop.com and the Wingstop app. Over the next three years, Wingstop intends to increase digital sales through continued investments in its technology platform and scaling its platform globally.

A key to this business success and consumer fandom stems from The Wingstop Way, which includes a core value system of being Authentic, Entrepreneurial, Service-minded, and Fun. The Wingstop Way extends to the brand's environmental, social and governance platform as Wingstop seeks to provide value to all stakeholders.

Rounding out a strong year in 2021, the Company was ranked #1 on Technomic 500's "Fastest Growing Franchise" and #22 on Entrepreneur Magazine's "Franchise 500," maintained its certification as a Great Place to Work, and was named as a finalist for The Innovation SABRE Award's Best New Product/Brand Launch category for its Thighstop campaign.

For more information visit www.wingstop.com or www.wingstop.com/own-a-wingstop and follow @Wingstop on Twitter, Instagram, Facebook, and TikTok. Learn more about Wingstop's involvement in its local communities at www.wingstopcharities.org

View original content:https://www.prnewswire.com/news-releases/wingstop-enters-spain-as-part-of-wider-international-expansion-plans-301504343.html

SOURCE Wingstop

FAQ

When is Wingstop opening its kitchens in Spain?

Wingstop's first two kitchens in Spain will open on March 31, 2022, with additional locations following in April and summer.

What is Wingstop's stock symbol?

Wingstop's stock symbol is WING.

What are the expected sales figures for Wingstop in 2021?

Wingstop reported system-wide sales of approximately $2.3 billion in 2021.

What market is Wingstop targeting for its expansion?

Wingstop is targeting the Spanish market for its expansion with the opening of ghost kitchens in Madrid.

How successful has Wingstop been in the UK?

Wingstop has opened 16 new restaurants in the UK during the pandemic, achieving high average unit volumes exceeding $2 million.