Dallas-based Wingstop Inc., principally owned by Atlanta-based Roark Capital Group, rose to No. 65 in the Latest Year ranking of U.S. systemwide sales, from No. 74 the Preceding Year. Wingstop was founded in 1994, and purchased by Roark in 2010. The LSR/Chicken chain has units in 36 states. Its menu features primarily bone-in chicken, boneless chicken wings and chicken strips in a variety of flavors, plus fries.
About 97 percent of Wingstop’s restaurants are franchised, and the average transaction size in the Latest Year was $15.61. The company owns 19 restaurants and franchises the remaining 712 units.
Wingstop began franchising abroad in 2009, and now has units in Indonesia, Mexico, the Philippines, Russia, Singapore and the United Arab Emirates. International sales figures are not included in Nation’s Restaurant News’ Top 100 census.
Keys to growth:
Initial public offering. Wingstop Inc. made its long-awaited public debut on June 12 at $19 per share, in an IPO valued at $110.2 million, giving the company additional funding for growth.
Carryout business. Wingstop has a strong carryout business, which has become increasingly popular industrywide. Wingstop said in May, in a Securities and Exchange Commission filing for an initial public offering, that average volumes at domestic units in the Latest Year were near $1.1 million. Restaurants are about 1,700 square feet, and do a domestic carryout mix of about 75 percent of sales. The company also recently introduced online ordering.
Sales growth as units mature. Sales build as Wingstop units mature, the company said. “Our restaurants do not generally experience a ‘honeymoon’ period of higher sales upon opening, but instead typically build year over year,” the company said in its IPO filing. Wingstop said average initial investment, excluding real estate and pre-opening expenses, is about $370,000 per unit.
Leadership changes. Recent personnel changes included executives of marketing and finance. In September, the company named Michael Mravle chief financial officer, succeeding Lance Loshelder, who moved to the position of executive vice president of finance. Mravle most recently had been group vice president of financial planning and U.S. chief financial officer for Tampa, Fla.-based Bloomin’ Brands Inc., parent to Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar. In February, Wingstop named Flynn Dekker chief marketing officer, succeeding Doug Willmarth, who left the company. Dekker was most recently chief marketing officer for The Colony, Texas-based Pizza Inn Holdings Inc.
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