Texas-based Wingstop, which has nearly 2,000 locations, said digital sales were up 60% in Q2, which also revealed a net income increase of 17.6% to $13.3 million, or 44 cents per diluted share, missing the analyst consensus estimate of $86.15 million.
“Our second quarter results demonstrate the resiliency and underlying strength of the Wingstop brand as the unit economics have continued to strengthen throughout 2022, fueling another record number of net new openings this quarter,” Michael Skipworth, president and CEO, said in a company press release. “We are in a unique position for the back half of 2022 where we are benefiting from meaningful deflation in bone-in wings, have a proven playbook, along with sales-driving levers that give us confidence in our ability to deliver on our outlook for 2022.”
Wingstop, which opened 67 units during Q2 —including its first Canadian location — will add about 150 by year’s end and signed a development agreement for the rights to South Korea with the first restaurant coming in 2023.
What’s next?
Skipworth, who took the CEO title in March 2022, said the chain was executing growth levers in the second half of 2022 as it continues its path to $2 million average unit volume, including:
- Added a delivery service provider with the launch of Uber Eats across the domestic system.
- Will increase advertising spend by over 35% during the second half of the year.
- Leaned in on value launching the Boneless Meal Deal bundle, consisting of 20 boneless wings, four flavors, two dips and a large fry for only $15.99. This is the highest mixing
bundle the brand has launched with approximately 7% sales mix. - Will enhance media spend enabled by a 1% shift from local to national advertising.
- Was investing in proprietary technology to protect its digital business, now at $1.5 billion.
- Will expand first-party database.
- Was taking greater control of the poultry supply chain in an effort to minimize the volatility in food costs.
