Wingstop Signs Agreement for Development Rights for South Korea

Rhea-AI Summary

Wingstop (Nasdaq: WING) has signed an agreement for development rights in South Korea, aiming to open 60 restaurants over ten years, with potential for a total of 200-250 locations. The first restaurant is set to launch in early 2023. This expansion supports Wingstop's goal of becoming a Top 10 Global Restaurant Brand, leveraging its strong digital platform and the demand for western brands in Korea's tech-savvy market. The company also plans additional growth in Canada and Indonesia, targeting over 7,000 global restaurants, predominantly outside the U.S.

Positive

• Agreement for 60 restaurants in South Korea, potential for 200-250 total.
• Expected first restaurant opening in early 2023.
• Successful international expansion strategy evidenced by milestones in Canada and Indonesia.
• Wingstop aims for over 7,000 global locations, with 3,000 outside the U.S.
• Strong digital sales are expected to enhance market penetration.

Negative

• None.

DALLAS, May 16, 2022 /PRNewswire/ -- Wingstop (Nasdaq: WING) – the rapidly-growing and technology-forward fast casual wing restaurant – today announced an agreement for the development rights for South Korea, contributing to its robust international expansion pipeline. The agreement outlines an initial commitment of 60 restaurants over a ten-year period, with the potential for 200-250 total restaurants in the country, the first expected to open in early 2023.

Korea is a key growth market outlined in Wingstop's strategic roadmap to becoming a Top 10 Global Restaurant Brand. This expansion follows the brand's proven strategy that has been formative and successful in other international markets. Wingstop's industry-leading digital business will reach the masses through use of its sophisticated tech stack – for both in-restaurant and off-premise occasions – playing to Korea's highly-digitized economy and widespread adoption of food delivery.

"The established demand for western brands and a tech-savvy, delivery-centric consumer base in Korea is expected to prime Wingstop's success," said Nicolas Boudet, Wingstop's President of International. "This agreement demonstrates the brand's strong global expansion momentum, on the heels of development milestones in Canada and Indonesia. In partnership with an established operator in the region, we look forward to bringing our craveable flavor experience to Korea – a vibrant market that is influential in the Asia-Pacific region and a key growth lever for our business."

The first of 100 planned restaurants in Canada will open next month and an expanded development agreement in Indonesia was recently executed, taking the market from 50 to 120 anticipated restaurants. Wingstop believes that it can achieve 7,000-plus global restaurants – over 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% year-over-year 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, our system is comprised of independent franchisees, or brand partners, who account for approximately 98% of Wingstop's total restaurant count of 1,791 as of March 26, 2022. During the fiscal quarter ended March 26, 2022, Wingstop opened 60 net new restaurants, an increase of 13.4%, and announced domestic same-store sales increased 1.2%. During the fiscal quarter ended March 26, 2022, Wingstop generated 62.3% 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 Contact    
Megan Sprague and Maddie Lupori  
Media@wingstop.com   
Click here for media assets  

 

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SOURCE Wingstop Restaurants Inc.

FAQ

What is Wingstop's expansion plan for South Korea?

Wingstop plans to open 60 restaurants in South Korea over ten years, with potential for 200-250 total locations.

When will the first Wingstop restaurant open in South Korea?

The first Wingstop restaurant in South Korea is expected to open in early 2023.

How many global restaurants does Wingstop aim to have?

Wingstop aims to achieve over 7,000 global restaurants, with more than 3,000 expected to be outside the U.S.

What recent milestones has Wingstop achieved in international markets?

Wingstop has achieved significant milestones in Canada and Indonesia, expanding its restaurant base in those countries.

How does Wingstop plan to leverage digital sales in its expansion?

Wingstop intends to enhance digital sales through continued investments in its technology platform and scaling it globally.