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Wingstop Q4 Earnings: Record Growth, Strong Unit Expansion, & Digital Momentum

  • Writer: Hardik Shah
    Hardik Shah
  • Feb 19
  • 3 min read
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TLDR

  • Robust Revenue Growth: System-wide sales surged 36.8% to $4.8 billion in 2024.

  • Aggressive Expansion: 349 net new restaurants opened in 2024, a 15.8% unit growth.

  • Digital Leadership: 70% of system-wide sales came from digital channels.


Financial Results


Wingstop Inc. is a leading fast-casual restaurant brand specializing in cooked-to-order chicken wings, tenders, and chicken sandwiches, served in 12 distinctive flavors. Founded in 1994 and headquartered in Dallas, TX, the company operates on a highly franchised business model, with over 2,563 locations globally.

The brand is on a mission to become a Top 10 Global Restaurant Brand by scaling its digital capabilities and expanding its international footprint. Wingstop earnings:


Fourth Quarter 2024 vs. Q4 2023

  • System-wide sales: +27.6%, reaching $1.2 billion.

  • Total revenue: +27.4%, hitting $161.8 million.

  • Net income: +42.2%, at $26.8 million ($0.92 per diluted share).

  • Adjusted EBITDA: +44.2%, rising to $56.3 million.


Full-Year 2024 vs. Full-Year 2023

  • System-wide sales: +36.8%, reaching $4.8 billion.

  • Total revenue: +36.0%, at $625.8 million.

  • Net income: +54.9%, at $108.7 million ($3.70 per diluted share).

  • Adjusted EBITDA: +44.8%, hitting $212.1 million.


CEO Michael Skipworth emphasized Wingstop’s industry-leading unit economics, attributing the company’s strong performance to its digital transformation, unit expansion, and operational efficiency:

“2024 results demonstrated the strength and staying power of our strategies. We reached new highs with domestic AUVs of $2.1 million and opened 349 net new restaurants – a remarkable 15.8% growth rate.”

Operational Performance


Wingstop continues to strengthen its market position through several key initiatives:

  • Aggressive Expansion:

    • 105 net new openings in Q4.

    • 349 net new openings in 2024, growing system-wide locations to 2,563.

    • International growth: Now operating in 11 markets, with the UK business recently valued at over $500 million.

  • Digital-First Strategy:

    • 70.3% of total sales now come from digital channels.

    • 50 million+ digital database, growing nearly 30% year-over-year.

    • Hyper-personalization & AI-driven CRM improving guest frequency and loyalty.

  • Operational Efficiency:

    • Launched "MyWingstop", a proprietary tech stack enhancing order accuracy and guest engagement.

    • Announced AI-powered kitchen automation to reduce order wait times and optimize back-of-house operations.


Market Insights


Wingstop benefited from changing consumer preferences and smart positioning against traditional QSR players:

  • Unlike most quick-service restaurant (QSR) brands struggling with declining traffic, Wingstop delivered double-digit transaction growth in 2024.

  • Competitors are leaning into low-cost value menus, while Wingstop maintains value-for-money positioning:

    “While the QSR industry is focused on $5 meal deals, Wingstop is winning by offering indulgent, high-quality products at an attractive price point.”

  • Delivery & Takeout Strength: Consumers continue to favor off-premise dining, aligning with Wingstop’s 70% digital mix.


Strategic Initiatives


  1. Scaling Brand Awareness

    • Increased advertising fund contribution from 5.3% to 5.5%.

    • Expanded sports sponsorships with NBA, NFL, WWE, and UFC.

  2. Menu Innovation & Expansion

    • Testing new limited-time offerings to drive guest frequency.

    • Exploring expansion into additional dayparts (e.g., lunch & late night).

  3. Technology & Automation

    • AI-driven kitchen operations to reduce service times and increase throughput.

    • Further investment in hyper-personalized digital marketing.

  4. Franchise Expansion & International Growth

    • Record 2,000-unit development pipeline, indicating strong franchisee demand.

    • Further expansion into new international markets.


Forward Guidance


Wingstop expects continued strong performance in 2025 with:

  • Low- to mid-single-digit same-store sales growth.

  • Global unit growth of 14% to 15%.

  • SG&A expenses of ~$140 million (including ~$4.5 million in system implementation costs).

  • Stock-based compensation expense of ~$26 million.

  • Interest expense of ~$46 million.

  • Depreciation & amortization of $29-$30 million.


Shareholder Returns

  • Declared a quarterly dividend of $0.27 per share (March 28, 2025 payout).

  • Authorized an additional $500 million for share repurchases, with $311 million remaining under the buyback program.


The Bottom Line


Wingstop’s record-breaking year highlights its strong brand, digital innovation, and operational efficiency. Key takeaways for investors and CPG entrepreneurs:

  1. Scalability & Unit Economics: AUVs surpassed $2.1M, proving strong franchise appeal.

  2. Digital Dominance: 70%+ digital sales mix and a 50M+ customer database provide significant future monetization opportunities.

  3. Long-Term Vision: With a clear path to 10,000+ global units, Wingstop is well-positioned for sustained growth.


For investors, Wingstop’s asset-light, high-margin model makes it a compelling long-term growth story.

For CPG founders, its data-driven marketing and AI-powered efficiency strategies offer valuable lessons in scaling a consumer brand.


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