Wingstop Opens First Ghost Kitchen in US

Rhea-AI Summary

Wingstop Inc. (NASDAQ: WING) has launched its first domestic ghost kitchen in Dallas, responding to the evolving dining habits due to COVID-19. The company shifted to 100% off-premise operations, showing resilience with a 33.4% increase in same-store sales in April 2020 and a 65% surge in digital sales. The ghost kitchen, under 400 sq. ft., will provide deliveries from a full menu, aligning with Wingstop's goal of digitizing 100% of transactions. The brand's digital channels accounted for 47% of sales as of March 2020.

Positive

• 33.4% increase in same-store sales in April 2020.
• 65% of sales derived from digital channels.
• Successful shift to 100% off-premise operations.
• Launch of first domestic ghost kitchen enhances delivery capacity.

Negative

• None.

DALLAS, June 30, 2020 (GLOBE NEWSWIRE) -- Wingstop Inc. (NASDAQ: WING) today announced the opening of its first domestic ghost kitchen located in the brand’s hometown of Dallas.

At the onset of COVID-19 in March 2020, Wingstop moved quickly to close its dining rooms and shift to 100% off-premise. Wingstop was well-positioned based on its pre-COVID investments in digital and technology platforms, allowing for the brand to seamlessly shift from 80% off-premise and adapt to the change in consumers’ dining behaviors. The resiliency of Wingstop was demonstrated in its April 2020 same-store sales growth of 33.4% and 65% digital sales, which included a delivery sales mix of more than 30% of total sales.

“We have a goal to digitize 100% of transactions as we drive to become a top 10 global restaurant brand and we believe ghost kitchens are a great step for the brand as delivery and digital sales continue to increase,” chairman and CEO Charlie Morrison said. “The team leveraged their entrepreneurial spirit to move quickly and launch Wingstop’s first domestic ghost kitchen.”

The ghost kitchen spans less than 400 square feet, compared to Wingstop’s average restaurant footprint at approximately 1,750 square feet, but offers the full menu guests know and love from Wingstop. The location is open for delivery only and guest orders will be fulfilled from the ghost kitchen just the same as they would from a traditional Wingstop location.  

About Wingstop

Founded in 1994 and headquartered in Dallas, TX, Wingstop Inc. (NASDAQ: WING) operates and franchises over 1,400 locations worldwide. The Wing Experts are dedicated to Serving the World Flavor through an unparalleled guest experience and offering of classic wings, boneless wings and tenders, always cooked to order and hand-sauced-and-tossed in fans’ choice of 11 bold, distinctive flavors. Wingstop’s menu also features signature sides including fresh-cut, seasoned fries and freshly-made ranch and bleu cheese dips.

In 2019, Wingstop’s system-wide sales increased 20.1% year-over-year to $1.5 billion, marking the 16th consecutive year of same store sales growth, and Wingstop achieved over 400% shareholder return since its 2015 initial public offering. With a vision of becoming a Top 10 Global Restaurant Brand, its system is comprised of independent franchisees, or brand partners, who account for more than 98% of Wingstop’s total restaurant count of 1,413 as of March 28, 2020. In February 2019, the Company launched its new tagline and creative campaign “Where Flavor Gets Its Wings” and continued the rollout of national delivery. As of March 28, 2020, Wingstop generated 47% of sales via digital channels including Wingstop.com and the Wingstop app. The Company has been ranked on Franchise Business Review’s “Top 30 Food and Beverage Franchises” (2019), Fast Casual’s “Movers & Shakers” (2019), QSR Magazine’s “The Industry’s 9 Best Franchise Deals” (2019) and “The QSR Top 50” (2019) for limited-service restaurants in the U.S.

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

Media Contact
Megan Sprague
972-331-9155
MSprague@wingstop.com
To download photos of the Wingstop menu, locations and logo, please see here.

Investor Contact
Alex Kaleida and Susana Arevalo
972-331-8484
IR@wingstop.com

FAQ

What is Wingstop's recent achievement regarding ghost kitchens?

Wingstop opened its first domestic ghost kitchen in Dallas to enhance delivery capabilities.

How much did Wingstop's same-store sales grow in April 2020?

Wingstop reported a 33.4% increase in same-store sales in April 2020.

What percentage of Wingstop's sales came from digital channels in March 2020?

As of March 2020, 47% of Wingstop's sales were generated through digital channels.

What was Wingstop's approach to COVID-19 dining restrictions?

Wingstop quickly transitioned to 100% off-premise dining by closing dining rooms.

What is Wingstop's goal regarding transaction digitization?

Wingstop aims to digitize 100% of its transactions.