Wingstop Plans to Double Its Restaurant Count in Indonesia with New Development Agreement

Rhea-AI Summary

Wingstop Inc. (NASDAQ: WING) has expanded its development agreement in Indonesia, increasing its commitment from 60 to 120 restaurants by 2028. The brand, which currently operates 50 locations in Indonesia, has opened five new restaurants this year. This growth strategy is part of Wingstop's vision to become a top global restaurant brand, with plans for over 7,000 locations worldwide. Digital sales have surged from 35% to 65% during the pandemic, demonstrating the brand's adaptability and resilience in a challenging market.

Positive

• Expansion of restaurant count in Indonesia from 60 to 120 by 2028.
• Current brand partner opened 5 new restaurants in 2022.
• Wingstop's digital sales have increased from 35% to 65% during the pandemic.
• Demonstrates successful adaptation and resilience in a challenging operating environment.

Negative

• None.

DALLAS, April 27, 2022 /PRNewswire/ -- Today, Wingstop Inc. (NASDAQ: WING) announced an expanded development agreement in Indonesia with its current brand partner, doubling its commitment from 60 to 120 restaurants by 2028. This new agreement highlights the proven portability of Wingstop across the globe and is expected to accelerate its pace of openings for the market.

Wingstop's first restaurant opened in 2014 and its brand partner currently operates 50 restaurants throughout the country, five of which opened in 2022. Due in part to an asset mix strategy with a focus on high foot traffic locations and off-premise occasions, our Indonesian brand partner has delivered on the established development targets each year.

"There's no slowing down for Wingstop's international growth – Indonesia being a prime example," said Nicolas Boudet, Wingstop's President of International. "This expanded development agreement speaks to our commitment, in partnership with our Indonesian brand partner, to accelerate Wingstop's growth, both by expanding our footprint and continuing to progress our technology-forward strategy. Success in Indonesia signals business development potential in our broader Asia Pacific region as we continue our quest to Serve the World Flavor."

As experienced worldwide, the pandemic presented a challenging operating environment in Indonesia, but Wingstop's economic model showcased resiliency and the brand partner continued new restaurant development with 18 net new restaurants since 2020. The team emphasized off-premise occasions to match changing consumer behavior – shifting from 35% of digital sales pre-pandemic to upwards of 65%.

With this new accelerated path forward for development in Indonesia, Wingstop continues to execute against its goal of becoming a Top Ten Global Restaurant Brand. Wingstop believes it can operate 7,000-plus global restaurants, 3,000 of which are expected to be outside of the U.S.

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 Flavor 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 flavors. 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, was named as a finalist for The Innovation SABRE Award's Best New Product/Brand Launch category for its Thighstop campaign, and named to Fast Company's "The World's Most Innovative Companies" list ranking #4 in the dining category.

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.

Media Contacts   
Maddie Lupori and Megan Sprague
Media@wingstop.com  
Press assets here

 

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SOURCE Wingstop Restaurants Inc.

FAQ

What is Wingstop's new development agreement in Indonesia?

Wingstop announced an expanded development agreement in Indonesia, doubling its restaurant commitment from 60 to 120 by 2028.

How many restaurants does Wingstop currently operate in Indonesia?

Wingstop currently operates 50 restaurants in Indonesia.

What recent changes have occurred in Wingstop's digital sales?

Wingstop's digital sales increased from 35% to 65% during the pandemic, reflecting the brand's adaptability.

What is Wingstop's long-term vision for global restaurant locations?

Wingstop aims to operate over 7,000 restaurants globally, with a significant portion outside of the U.S.