Wingstop Inc. executives increased their average unit volume target to $3 million two years after making $2 million their goal.
The Dallas-based chicken chain, which passed $2 million in average unit volumes and had 28.7% same-store sales growth in the second quarter ended June 29, released earnings Wednesday.
“We see sustaining same-store sales growth,” said Michael Skipworth, Wingstop CEO and president. “We are making great progress in scaling brand awareness as we work toward closing the gap and awareness to more mature national brands.”
Wingstop, which celebrated its 30th anniversary earlier this year, ended the quarter on June 29 with 2,040 domestic restaurants. Of those, 52 were company-owned.
During the second quarter, Wingstop began rolling out its proprietary MyWingstop digital platform to the domestic system.
Skipworth said the proprietary platform will allow the brand to personalize transactions further. The company’s customer database has grown to 45 million users, Skipworth added.
“We've invested into really leaning into hyper-personalization and build that digital ordering experience that's customized for our business,” Skipworth said. “When you create ease of access and you create a best-in-class guest-ordering experience, you're going to win more occasions.”
Digital sales generally yield an average check that is 20% higher than other orders, he noted. In the second quarter, about 68.3% of Wingstop’s sales were digital, Skipworth said.
Alex Kaleida, Wingstop’s chief financial officer, said the company was raising guidance for same-store sales, to about 20% for the fiscal year 2024, and increasing net new restaurant development to 285 and 300 — previously 275 to 295.
Kaleida said the brand notice little impact from the California fast-food wage hikes in April.
“We did not see a change in our transaction growth,” he said. “In fact, the trends in California are following a very similar trend to what we see outside of California for our business.”
For the second quarter ended June 29, Wingstop’s net income was $27.5 million, or 93 cents a share, compared to $16.2 million, or 54 cents a share, in the same period a year ago. Revenue was $155.7 million compared to $107.2 million in the prior-year period.
Wingstop, founded in 1994, had 2,352 locations open worldwide as of June 29.
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