Wingstop (WING) 21 Feb 242023 Q4 Earnings call transcript

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Wingstop Fiscal Fourth Quarter and Full Year 2023 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded today, Wednesday, February 21, 2024.

On the call today are Michael Skipworth, President and Chief Executive Officer; and Alex Kaleida, Senior Vice President and Chief Financial Officer.

to conference like to now would turn over the Alex. I ahead. go Please

you, Fiscal Conference XXXX the welcome Call Quarter Wingstop. Thank to Year Fourth and and Full for Earnings

on earlier and were at this results Relations website published are Our available our Investor ir.wingstop.com. morning

includes could These statements today from results differ cause future our guarantees are risks numerous what statements. subject expect. materially are actual and to forward-looking we and discussion not of Our performance uncertainties currently that to

could affect Our future describe SEC risks that filings and results condition. our financial various operating

to We believe isolation use in contained information evaluating Presentation that with substitute certain release. comparable should earnings non-GAAP financial our Reconciliations prepared as such or can our GAAP measures we results measures of in in be accordance for useful are considered a not be in performance. GAAP.

Lastly [Operator for the session, Instructions]. Q&A

that, over would call With to Michael. to the like I turn

results year staying are the Good for transactions. Wingstop. morning, XXXX full delivered primarily demonstration call. comp executing everyone, marked industry-leading the true We one and our of positioning. thank on strategies we record joining of with year the unprecedented for sales for showcase XXth strength strongest category and consecutive you These XX% the of power a of of by a Wingstop's driven same-store they're an growth year, and

benefit the adjusted week more the when of a This translated opened point economics. billion. $X.X than of Company-owned and EBITDA of to of sales during record the a XXXX. our growth XX% restaurant chain XX% proof strategy We XXX were unit of net system-wide new our fueling into XXrd excluding growth industry-leading margins XX%, supply restaurants, effectiveness

addition the our we sales that delivered domestic to and quarter same-store our of while first chicken of build of driven We demonstrated the the we strength a marking key by year. saw lapped in as a entirely business XXXX, as momentum the strong the such through was Eats, year, comp we executed of Uber started strongest sandwich. couple growth. This in we the transaction quarter as launch progress XXXX with the was XX% the quarter growth levers fourth Wingstop in

Our domestic in transaction XX.X%, by growth. almost was sales driven entirely growth quarter the same-store

the pipeline of we pleased are are a and a knew great development of at weighted to restaurants. visibility XXX open the openings excitement fourth desire exciting we into the demonstration expressing be a time on and openings record economics the Based would truly unit It's our of beginning our end restaurant is the quarter. XXXX, net partners, the our toward in new more brand This year, the Wingstop. strength strong of who of our at with an

remained foundation strategies accelerating partners, have members brand strategies we team culture, The support of the XXXX. global believe by accomplished which sustaining is growth, our our maintaining our brand growth Our over best-in-class years. our competitive in partners and are I'm of team, truly the what advantage. for And and same-store humbled returns sales restaurants consistent and in our people

Wingstop we the with the all was at of our look of size restaurants economics. strength X,XXX more the to unit the it starts of existing footprint, As opportunity XXXX, end triple than at that

and million, north well now of Our $X AUVs we have of AUVs are above sight line expanding $X.X to we clear believe million.

on believe record the our to us have with and strategies than a creating less partners enjoying return to have margins development XX% an translated continue brand position growth, We still to well and less greater payback. than combined Wingstop's $XXX,XXX AUV upfront pipeline. investment our made saw is returns on are average X-year we with deliver more than strategy progress our chain predictability a against of long-term and unlevered targets. that on returns now and strengthened our supply low cash-on-cash is Our restaurant best-in-class

At our our further outlined than delivery $X marketing to strategies and a occasion, our expands transformation of data-driven digital Day million. more expanding system Those digital awareness, AUVs increase to increasing our in we that platform. innovation, brand XXXX, best-in-class menu Investor strategies consist

we proven are benefits us As designed multiyear AUV. to and to our have demonstrated give in XXXX, confidence scale further strategies

In fueled an which we a than decline that backdrop these AUVs in to primarily that progress industry double-digit great has million. year, by $X.X growth, increasing the last transaction AUV was against is made $XXX,XXX against more growth strategies, growth, seen traffic. by transaction

across that growth And all another we vintages. is unique story Wingstop seeing are of transaction part the

restaurant, In in healthy to we transaction see continue original our fact, even growth.

helping Our always-on and sales a our gives great during system-wide expand the continue XX% firepower our meaningful against in growth fund nearly strategy awareness. this of opportunity. gap, make media remains With ad to this us national progress to is awareness invest XXXX, strategy which behind brand us

Wingstop. innovation to bring menu chicken continues into Our with new guests sandwich

with new the years. X bold distinctive and chicken indulgent that Wingstop sandwich to is time menu guests enhanced core to they in XX these order, tossed flavors, our learning a are have the enjoy come over to and navigate flavors our for our of soft experience appreciate first occasion As cooked the and our guests of that rest

mix has chicken guests frequency our skew helped sandwich are well which traditional higher increase now than higher a our boneless towards mix, as new guests to boneless us XX%. Our as a demonstrating

reminder, chain our And will of unit meat supply advance greater strategy utilization further our as a strengthen and breast economics. helps

restaurants mix XX% operating the We enjoying where in have are exceeds examples that XX% food costs many with today boneless low range.

with new guest fourth guest acquisition have marked highest frequency, the our strategies of an periods increase on record. Our higher acquisition, one quarter in and along to led

the an low in across frequency saw including income all We cohorts, income increase also gap.

the the up digital XXXX. surged, Our sales at sales $X digital XX% with mix at and of XXXX a XX%, we months in billion passed from last end XX exited

experience are one that making digital in technology, rates with we XX hyper-personalized investments now And over over Our time to guest ability guests, is believe the retention conversion, the users combined we our strong. database will frequency. we drive have create a and million with

brand by metrics. continue through categories consumers restaurant improvements prioritize has our record we as Wingstop transaction measured these selective is progress in industry-leading to they know business value. their health This and of both quality with spend, XXXX. and growth supported We in remain

our serve guests believe excellence. for We the value with improvements a and been disciplined supported by members in restaurants want quality and well to and as best-in-class operating and to provide focus scores measured brand on a a our their to focus in pricing relentless have restaurants experience. approach dedicated thank partners team I as

strengthen back unit of that and during operating is growth the openings nearly in development showcased our commitments economics XXX XX% under new existing accelerate net that of were record for partners agreements, positions This restaurant commitments in category year, was Wingstop the to XXXX Wingstop. a demand year we brand brand to in into reinvesting Our both fact exited partners growth. also restaurant from one. recognize continue that us representing year a X,XXX the approximately the with to new

this domestic And business. beyond our success extends

are of U.S. in the We XX outside now markets

hands consumers flavors exciting Canada an across response incredibly consumer open This get is our for those of the Average proof example of in globe exceed sales is is markets Canadian point ahead. as their success established restaurants is and we from more the on the already the us. growth for up in Our that another lining weekly to Toronto.

is we're supercharged time, first to is the In generated development for playbook and by domestic enjoying are to with providing flavor set sales business, growth XXXX, our guests same-store our international for growth executing markets also XXXX and continue pipeline. proven our primarily growth. international capitalize up this business with to our greater consistent I business on access driven International believe the transaction momentum. our

of Alex best-in-class provide we but returns. capital and combined our our shortly, with our algorithm, on in our specific details will strategy, believe deliver will confident growth remain shareholder long-term outlook targets XXXX return

asset-light accelerated an have an clearly program repurchase we $XXX strategies our strengthened our of maximize repurchase share shareholder partner share This of example XXXX, million to of our we totaling another our and ability returns, $XXX While at is we in launched enhance demonstrate is the returns. model strength set fourth the first To commitment, a quarter. returns. program million. completed core our also of tenet level In authorization shareholder to brand

I a truly one. AUVs XXXX positioning to us north Wingstop another is that category sales in of $X is advance of believe million. established of base well layer

acquisition We guest will continue and to invest in building and frequency. brand awareness increasing

and Our them have which partner open in investments more supply excited chain food volatility on strategy is to Wingstops. maintains their returns costs, mitigating brand

brand partners global flavor. I I importantly, to members in team our restaurants, in achieve invest to is becoming we a the center our XX partners thank believe industry dedication our top all of vision we in supplier the continue And serving brand. support team, of motivated that team to to restaurant entire best our the and for and our world the the team, Wingstop their the want in and have

to With that, I'd to Alex. over call the turn like

double-digit whether you, or our of a growth, AUV hit that sales primarily adjusted same-store by EBITDA and new net comp transactions. was We operations for year financial our Thank year for Wingstop, an health of all We it's driven increase XXXX units XX.X% XXX was on brand $XXX.X accounts a opened Michael. metrics, million. unit XXXX with growth XXth expansion, generated standout in performance. consecutive

year our XXXX XXXX want to a outlook, XXrd into week. everyone, dive and Before included I remind fiscal quarterly I results

So year-over-year XXrd XX XXXX current weeks Please includes for our in not the Therefore, quarter weeks impact specifically week of as comparable XXXX. release in the identified. to results XX the are the year. earnings fourth unless in compared strictly review

by due sales the Our system-wide Royalty fiscal quarter to in quarter prior since growth growth revenue year million franchise by offset $X fourth XXX XX.X% net week and revenues, the increased XX.X%, XXXX. estimated million the additional transaction associated domestic comparable XXrd of the of year fourth $XX.X primarily an in by same-store fees other year. with versus prior during and franchise growth in openings period, was sales driven the revenue

by driven QX sales same-store expenses. new the the as prior in QX, by additional $X.X $X.X compared restaurants comparable of XX.X% increase the of and operating to million net Company-owned points in year, versus by on by growth, restaurant decreased XXX transaction period driven primarily offset primarily labor and in week. due XXrd sales million and year sales X from a by restaurant sales basis Cost sales a increased company-owned of prior leverage sales, to percentage

the we have food to for purposes, anticipate results Our supply we volatility chain into carrying costs cost company-owned restaurant and yielding be is approximately XX%. wing we to and mitigate bone-in anticipated. XXXX modeling progress is The the strategy made

food predictable a the underscores bird supply whole this in for further our mix boneless best-in-class strategy. advance economics. helps And which with of new our the our unit strategy. QX, system reached progress in cost, high Additionally, This XX% our will our strengthen chain

SG&A professional $X.X million an of a QX a compensation million by with driven comparable to increase the short-term the a million increase million $XX.X increased $X.X long-term investments. in company's of result and $X.X of fees strategic versus in by an of company's initiatives, year associated performance total of increase as the $X.X million. incentive-based period and headcount-related prior

by Additionally, of year million benefit in the $X.X the $X an approximately from lapped impact prior QX offset week. million stock XXrd forfeitures

growth put by increase XX.X% this $X.X XXXX. the EBITDA, measure, the prior EBITDA in fourth the with the in to the an reported XX% estimated $XX.X excluding on associated And adjusted top prior a basis. in grew of week is versus a of When impact year adjusted that Adjusted growth XXXX, on this EBITDA comparable was in million the XX% non-GAAP XXrd versus context, was million period quarter quarter, year.

non-GAAP excluding growth of We delivered the XXrd adjusted earnings increase and year versus year the XX% a estimated impact X.X% prior associated the a week. share, when measure, $X.XX $X.XX, prior per diluted with versus

to million. highly flows inaugural strategic Our generate to a common maximizing To our ASR shareholder support an share launched position while that that of our repurchase on asset-light XXXX, announced authorized $XXX free us cash we at demonstrate continues stock XX. model franchised we we initiatives In share accelerated of repurchased connection at a returns. $XXX our In program August, price shares XXX,XXX total of program, in with December program repurchase average million $XXX.XX. commitment, concluded strong

dividend our at is of Additionally, free program flow. XX% targeted regular cash

of Our be shareholders of which dividend of quarterly on per XX authorized paid our share, to $X.XX March Board next of March as X. will record Directors

to continue shareholder balance of to in our position enable is returns. will Our sheet in strategies that a strength investments maximize

turning our for Now outlook to XXXX.

sales XX%. are you As net guiding to with stock-based to mid-single-digit strategies us expense. from XXXX. approximately approximately growth, we inputs, we approximately to industry-leading $XX translate guidance is will million, we which EBITDA estimated our By same-store heard of XX% global adjusted restaurants, represents another can domestic an be SG&A to million a of estimated today, and these year. believe our including $XXX a targets, deliver growth XXX X-year rate X- growth new utilizing in anticipate Consistent compensation

thank center support to deliver our partners the like and incredible I'd members in helped supplier partners brand us year. restaurants, have record that our the team at and another

fortunate commitment global Wingstop gives their We top talent have achieving and throughout of restaurant to such are confidence a our vision truly brand. us and becoming the dedication XX in

to turn open please for Operator, the now like questions. Q&A. I'd to that, With line

Tarantino [Operator Instructions] David Our from today with Baird. comes first question

your the if Michael, kind of as specifically, again up could My same-store about to this XXXX. about on tough sales great the recently? mid-single relative range outlook of confidence being about a you on that Congratulations kind traffic momentum think is year? to I XXXX delivering you've specifically for whether frame in thoughts outlook exiting wondering, drive and of type of digits. the that question you year, been was the your the able talk And growth especially comparisons

not in measuring really was David, that year by the results the very primarily against think a question. that sales with excited pleased growth only the was for XX% was we an delivered plus And transactions. part, XXXX. incredible for thank same-store backdrop that you an in But delivering is industry We're driven transactions. declines most it and I

positioning solidified for think so one And really category the of Wingstop. it I

the itself. we're excited the about progress saw well momentum we're the are by build XXXX the We that we're the QX as highlighted as throughout we And against into encouraged We making strategies executing. prepared acquisition QX highest proud against. our remarks new of that our executing we're and of strategies the of strength showcases it that pretty period really was that something guests in we're

remarkably confident growing the on towards our there's industry goal of ability a record on know that to north in we're the exceeding on we ability pretty know outlook. advance to and year, continue said, X-year drive something our so That And of we're business of. our When we to we of X-year of we're but that's yet strong basis, a in million. deliver $X proud X- have growth strategies our compared -- compare top the to AUVs and confidence that our to

Jeffrey question next The from Barclays. is Bernstein with

things, to the as look 'XX. on unit question A Great. growth side of we

'XX, you provided if guidance openings. initial So back XXX you global to for look

I think deals into XXX.

about and trying whether you And forward potential And U.S. then guess, the wondering international have your it Just If gauge to could U.S. I the think on I from difference and that whether you was with each? flash to XXX. really these you're today, the international? follow-up. XX% so there? comes we that talk your provided initial or guidance you should much, coming comes if whether to which we But equates where comes care try you from thoughts engage growth? one growth versus of from pipeline openings in as just about the in AUVs royalties upside and if I from, confidence

Jeff, Wingstop, the to of really a at unit the existing thank of think XX% it when development of to strength partner the our AUVs, pipeline of the supply economics, truly combined XXXX, new record to visibility proud net returns for the grow year, really our that translating strategy to testament with really I that But were We're XXX the openings scaling than our the time. against excitement in number you the based community progress able XXX on guided to reinvesting we with year, were brand net. partners partners, we restaurants, progress those made the for a deliver a want we the less brand average. in had beginning Wingstop. brand chain we've is X-year Obviously, at it the with industry-leading in which In was speaks over that on in question. payback

the -- XXXX. cited of where showed I compared almost development our end prepared so count approximately started agreements opened restaurants in reflects that think that we That reflects That to commitments really in the X,XXX that year. at And new we remarks, you up XXX when commitments. our the we

for are brand up So signing more. partners

guide our as can. this something in as our provide confident we're confidence in roughly to year, again target long-term able we we pretty us of today the it's and existing year, brand the shape sit here here restaurants we're So with XXX that level plus, being above any demand And today. takes pipeline initial of updates to we'll XX% of But with sit XXXX. the partners throughout excited we about from guide grow our have from obviously, our

just And international for of the in U.S. that thinking mix 'XX? and you're

Yes.

I pretty think in as for that what you similar XXXX as saw we mix far out. estimate how a see should expect as to breaks XXX XXXX

my And follow-up just it. the sheet. Got on is balance

quarter, the think talked I [indiscernible]. last you about

flexibility So X just get well mentioned historically recent quarter, about. Board on we return you thinking just wanted to but to in the ahead, think about target to as some expect retain we update XXXX? on know trying talked below fourth the -- balance the that's sheet Xx current whether more whether which way still a the levels I either to or leverage aggressive wonder the an should uncertainty to you've quarters, And "navigate"

share first repurchase $XXX ahead that interest in to environment. of you turn, include recapitalization of if is strategies, And flexibility the a us rate in elevated couple think this out to authorization recall, behind our strength a of us Jeff, XXXX. for a took invest sheet. we I balance last this position, has, our position million given build ago with in years pointed Alex. Yes, which And cash you our our of

need see without ago, opportunity given to us years trace generating few we the continue be what's different you which we cash historical upon to flow has that for if leverage rate the returns. leverage. to think take us I said, That fuel of predicated up being where to a levels, we at Xx it necessarily we're invest comfortable back will were, at shareholder the maximize and I to are think And

question with The Charles Andrew Cowen. TD next from is

key through to change? initiative as just launch Michael, My see And guess I'm tech X. and the the Alex, April on traffic? of with just can the what is at Wingstop is with follow-up, walk will that through be begins a of netting curious, what can stack ticket us you should the us question to this really, help you from then related modeling And help a drive March. fee end where of benefit expense that you'll X.X% out? walk is What cost the that that tech sales perspective? of And sales a preview the

Andrew, And that's It's something or focus e-commerce to very pilot We're own parties our we've going other allows excited are tech the big by We're My great. on strategic investment component elements made. been that on stack. and working Wingstop, built us last schedule. on parts encouraged with And investing My where in But we've the the sense, modern about us. a the it's modern it makes architecture investment third stack that technology few Wingstop. then digital building our progress we leveraging and business. customized in we've and Wingstop's in for made we've that specifically capital for our a really years, for experience of is

over this to it begin beginning that out encouraged really we're us going by this roll into that you're the that about. out, we're is those which Those rolling first-party it's will leaning to relates track create of for we impact And customer customer conversion on system-wide and to right, as we frequency. data unlock that in are will something our really things excited a experience, April time, ability -- things And retention. have really are to we're hyper-personalized impact ability and think, turn, journey, and we're

that, technology behind that elements excited innovative and majority and this scenes, continuing industry the and And different grow mix. see digital to are part behind this an we're at and That's every consumer-facing proud folks an ordering works we our and journey experience, they infrastructure and is will in more fourth transaction. are business. do quarter a that backdrop of of be XX% to that. the of building But but of in digital pretty Obviously, we're about relevant their there it a measuring on some exited bit most little just something we're customer of a digitize declines the

to we're make And encouraged there. so by the we continue progress

of And then let jump part question. into second Alex I'll the your

of this And it cover address -- to of consolidated And advertising launch start advertising -- point unit your Michael's on will as with profitability fund with the you Andrew, the restaurants to ultimately, the we this on the coinciding My the what and At P&L, question platform. the similar view operating And lines, X.X%. quarter, we Wingstop sales opportunity our be view Yes. what from is so our expenses very will it look fee. contribution of enhance and our Wingstop move in rate neutral intent revenue fee the technology that's will to of to X% to My And the the economics. for expense associated ongoing to opportunity to today. is, see means

from Joshua with question Stephens. next Long The is

When of those brand advertising, a versus expectations? to ad clearly have talk on little we the talk sales your a into could expect could forward? this curious to awareness a see of same-store where also, you was brand that -- the some it working approach And bit also think have then I activity several might about key premium I follow-up. be is this grown you lean that mentioned at fund. years, little driver going last bit about always look how a where performing seems being if to And you as but we dollars then you meaningfully. I about Can compared to the

the for you thank Josh, question.

really shown where and working. increase of that I that's we pointed think a sports. the leaned that And into you time we really our think it And eyeballs you at This a dollars to deployed obviously, combine And ago, would ad as is is when where deploy. said we the our itself. our is that's able well, believe hypothesis years couple be. you in with, live demonstrated we're really strategy up strategy out, we meaningful

of If an increase XX% we the have that, at XXXX dollars alone, back we the to is creative you that something combined translates that look there. equal almost of in pretty we're to growth sales And the late with amount just we're results in think invest. system-wide ad QX new we go deployed excited about and seeing

in with I seeing QX, as being XX% expect only growth X in those working. can over game results, example. it's sales in an as while on far even we're of think transaction-driven, showing majority lean what as the a to we growth same-store Josh, we're us incredible is that So particular, And up that and or into from we results us, X to spots strategy sales same-store obviously think working. expect And you think I a believe

gap us opportunity from continue we of And to chip opportunity close a other described meaningful awareness so lot national there's the still perspective. a to what for brand at brands a as to to away

And effectiveness we're going something of ad our so to into lean with and that. into at chip the the firepower continue strategy is fund our to additional away

I little in about talk some around are the prepared unit of the brand and driver mentioned in is focused underlying the of strong culture. think a also, the going about support underlying key bit you something continued appetite Could for then people at That's driver that investments a to imagine when just then happening also organization and that? -- to But comments. on we And least very the support your brand you results That's be growth? the helpful. or partners' that is

Yes.

You best culture, said hire, how people, It of in And it's with into well. delivered seriously. is driving and sure starts are in our testament in something strategy driving we we very the health, I results lean The XXXX really our take we with organizational we the that throughout think clarity our that how it foundation invest that onboard. the organization. the of that's And and the we're organization. we clarity making we're

the in over day. deliver. open restaurant at a We I have we're that line net X able the XXX demonstration quarter, and we obviously, that the of the the represents healthiness new think were supported Wingstop. of with culture that's able team to in which business success growth restaurants to is a top here we're seeing the fourth And And really

question Sara is Bank from next with The America. Senatore of

just the I wanted food to about please. ask costs,

XX%. talked you where the system costs. have boneless I about low is said how you But seeing you're think above your you is XX%, So food XXs restaurants mix at

and So kind really close to that, to you're guiding of mid-XXs.

commodity absence fact trying costs significant just I'm that to a and do So even I the or you're and are of the of price? as have continuous trying about where of any change that a function? you're is if going communicate, just step proposition guiding think to to this sort with sort value this of of understand, kind And the to a mid-XXs

which on But the are system to Yes. perspective. from can Alex actually mid-XXs food restaurants, boneless this. XXXX a No, and specific our I'll really is our the add in, jump average outlook below company-owned costs for to in

in we range. an we're proud mentioned mid-XX% of prepared return remarks, brand our pretty in as for incredible would think in system think demonstrating very partners something And so than those I return to of. you and And I bit be it's is mean pretty a that excess at average. cash-on-cash XX% that could lower the mid-XXs a That interpret target strong little on said, unlevered

where it to environment stay improvements in and relates very proven measuring in pricing other as very brands to. and value think prepared going in taken a value pricing, continuing remarks, we're we price of it to we're perceptions, our in continued of have focused are But and a disciplined to but And lot we about particularly committed prudent that think quality something I on are declines strategy believe an lot a what in be is scores. we've approach we to demonstrated to and a value that's acknowledged around measuring how

protective very be we'll continue focus XXXX. that forward of the to going we're it's as to business on in drive so we And something and

bit about little historical that be know a again, just pricing, I low give consistent single year you of don't Should in then a ahead, And the sort historical you the your think closer that your you we rates increase to above in Okay. of thinking low is single-digit probably to to about pricing as approach as to very with more closer follow-up. but run kind averages? still I price think industry point, digits.

say going this our is you opportunistic and that X% I to last to menu year historical that higher little in to year. X% more pricing will Act where saw is good Sara, modestly to a Alex. April. back proxy But go Yes, markets. a the I about cadence this be would we're FAST think we'll anticipate that of in effective us to take for relation I probably excludes California, price, increase X% to a X% price

with next Stanley. question from The Harbour Brian Morgan is

And still you as you was of the you done digital you're what ordering? it lately the just was maybe have Or driver Could talk mobile go are in about more just delivery, channel, delivering seeing there? still advertising higher, mix that? seeing delivery

an carryout. element every consistent channel seeing, includes well. includes as It That I growth we're think that a includes just mix as channel, unique from We're across delivery. that pretty just It X it's not story another actually channel. say that growth digital nondigital seeing QX this Brian, single just carryout I perspective, example. QX dine-in. our would our it's not But mix sales demonstrates delivery was in to to

healthy to really a that it's so we're seeing. approach growth And

stayed perspective, the we're that increase And a quarter from pretty -- to while would would consistent from in it growth delivery point mix X channel quarter I so I seeing or our to digital guess X. in

Okay.

good. Sounds

expect question, adjust to sort do been with have you would follow of In consistent your a have for or some the too. last sense that up Just you California, what magnitude? about your to franchisees pricing peers talking of

average, on wage Brian, historical within about points California, at price. Alex we when our of at the we Yes. approach looking I to points work done increase would price we're look impact would the And we've say, around year. is a to X somewhere X of this of referenced that -- to pricing is minimum X X

yet, kind others So hearing cadence, referenced. a of of above think, you're or I prior not our historical below much what our lot but

can Brian, million the roster at that's And in us in restaurants. average X one lean We is we team Yes. model operating a our that system run for size members. streamlined of that about $X.X shift that difference deploy with

I So lessens of impact. think the some that

is with Gargiulo Danilo Bernstein. from question next The

I as a of of one, chains category can comment a are wonder your the seeing national on category. breaking especially larger if some into entering bit you we in expand

you're so whether on stores impact are share to players So can you national far are located the who seeing any offering close that these maybe wings? now

wings No, it's Yes. national directly would but promoting brands other a here, And promote benefit What wings, just I answer a some the say, I comment to unpack when seen there's few at is time. to appreciate to this actually components our historically question. your other about we've business. brands

there's that really mind, go makes someone versus are They fact, Wingstop, top decision brand. of aware wings tree. if not a In other to Wingstop of consumers and

historically, we've business. so seen that tailwind as a to our And

business average less of on operating We operating part remarks, that we on strength our sight category us against unit of have so now million. in simple that executing our of that that's mentioned in on initial prepared think increasing even we're also an one, our And today is to above investment give these And top $X the that us our I $X.X is economics, AUV drivers than it. million. above of of $XXX,XXX. line our model. we AUVs about believe of the multiyear We building that's as is think

that a opened, we XX% they over incredible numbers at see one. get. type up it economics, brand really and I in that shows the net some understand XXX existing and And those They are that and the because unit returns. see that return so pretty new brand the of were of are enjoying think the they in of they partners we partners those of reinvesting, category And restaurants understand

think a our And so lot that and speaks the I results positioning. to to

We transactions. our So you restaurant all chart. increasing that talked comping positive these vintages And pretty elements is oldest a stack and year, the our up linear there's it's in of I years, think -- about and if after it restaurant our a brand. by and other it's system is company-owned

strong. they $X.X the the very That start there. out volume talked similar restaurants to system, We growing comping million. strong average and Our XXXX come XXXX our of Restaurants gate then is vintage comp unit about for was the our from of vintage growth. rest transaction

for X,XXX And We're to a feet line. of not our efficient in very profile, us competing is in labor very Alex on cap. our allowing square so box. that mentioned, efficient XX% is upon a our business operate all centered off-premise, average, model. footprint,

and something then think believe And mix, industry-leading so the and to continue us mentioned we XX% for an the digital number I we expand. -- we

one. a all that So things, I in we believe those because of of it's we category think are

quintile Excellent. the stores, the causing please, words, AUV Can the In much the strong how AUV? your of of the kind delta? between, And stores see distribution your "weaker" you follow kind to very bottom enable the million into on more uplift of can in have top say, opportunity system of your stores? million $X.X the you $X and So us unit across your on I quintile of the understand performance the economics if do and if AUV. stores other to a up, difference what's you help

participated is common that years versus how million Yes, is growth, $X tenure. sales higher-volume consecutive difference, below The between denominator there's same-store restaurants of have many one are really difference that in. that maybe of in threshold XX really years those just that restaurants and these those

entire digits a the sitting which today. for Dallas-Fort is double over the as above we great is market that of comping XXX think million, is showcase have me an at market, I to Worth And AUV and restaurants market is that for market that to just market $X in highlight kind that well.

a And to Wingstop referenced haven't tenure. here beautiful think still so is And that really we that I the fact the is I comping. the even really original ceiling. first it difference thing found is speaks that

maturity we're found pretty or haven't that ceiling about. quite excited And so we within something our box either. It's

today multiyear executing over and million And ability average we confidence to to to above of these we're a the in million $X increase strategies have time. $X.X our against so continue from system lot that

O'Cull The Chris Stifel. next from with is question

seen development to follow-up. improvements there franchisees unit domestic economics, the pipeline their quite of Or to in a obstacles development guys development? is of ahead I strong, forward but realize then are had it that with I have continued make And kind still look difficult build that the commitments? pull you to development

No, Chris.

we're actually outside seeing know was developing then the Canada, their of and And XXXX, examples definitely of is question Puerto specific market markets. are an brand opened in we're another think we excited to I U.S. itself as highlighted that some ahead business. about I schedule. example, U.S., seeing the of we're I manifest these even where your what partners But new really Rico.

We have ahead seeing strong seeing show the seeing some as brand really land up, actually developing playbook our of these they're and schedule their these of are results, international well, markets that proven well.

encouraged outside by progress of well. as So the we're U.S. we're the seeing

that's of best best that growth are how are tell that in maybe as And expect unit segment? just in a showing to of that, which in maybe countries and I improvement economics. follow-up future which pipeline the out of returns? could But terms the the wondering we the International showing you And playing pace us ones if kind then was could

Yes.

over how here are as are our there and here I well average above AUVs the time, similar us, think the you've they're heard in about there U.S. seeing very business in in talk the U.S., Chris, unit the we the and U.K. economics system

flagship that playbook. our and is built would in that brand proven then the and from their so market, say how playbook, out with and the we additional And of points how itself, our demonstrated of I we is launched started expand access and

markets very playbook and execute results. actually them results. seeing We're the I similar similar referenced, other -- we're that same very those And so we're see seeing

And before, so for in really the building it momentum is business growth, prepared mentioned we're think excited in this seeing progress we're our by we're my international it and remarks. it. really and mentioned and about I've some is business, encouraged supercharge I We

is question next with Farmer Gordon from Jeff The Haskett.

well. as A a and question follow-up

improved there quarters with notable to So line turnover from somewhat labor levels, earlier the XX-year been your in recent Has impact in reduced on metrics trends just relates staffing, traffic it comments. as force? better a

Yes. relates how know the that highlighted the boxes. were roster efficient model Alex of required as it labor to I our our and efficiency

You as X with members. run team as few a Wingstop can

measuring within the ensuring restaurants around And operate team we've we've line. in our guest of record brand those that's and about system, ladders so levels improvements talked up say those on lot but the we some we partners, issues satisfaction on scores. haven't translating what we're think value. would the a excellence. really hiring, around all seen focused with to is I really I I been for been relates members it brand some as And And delivering think the we quality And of some to and results it top of their support

on of in the both guests, new I believe, and Okay. QX. follow-up, number And then QX record

thoughts your So what momentum? we on of looking the of guest are balance out XXXX, as to acquisition here sit sort net continuing

of in are occasions sandwich occasion sandwich the There's guests coming And just U.S. the we've that chicken surface. in initially. the number annually. think scratching are we're these coming in Yes. lot billion before. A We chicken X.X new this through referenced

scratching quarter, excited or just this we're the different last our there. new that guests. these think but look coming that traditional really about But are they core we little about we in a so And than we're guests surface talked bit

they're children learning they're rest bit little the less higher to a mix, They're digitally, engage back to navigate higher frequency a of higher likely kind They're quicker initial coming demonstrating at demonstrating to menu little have that after check. bit income, home, us actually boneless a a boneless, with bit little support helping are average drive over-indexing the are and and and they they again, of that visit.

these lot in and a around bring is runway so broader of capture But average really guests a us mix more and they're driving about. think having for boneless impact business to there check, of our not elements excited we're are new only on driving couple the opportunity we And additional occasions.

next The is Andy Barish with from question Jefferies.

of the then follow-up. Just international circling quick and stuff back a on some

so implementing you've successfully all been the arrows that in obviously don't You the quiver in U.S. the have still

ahead these what comps similar bit to would of thought? more So have are give the some us numbers kind Just a little especially in tracking a of incredible there. U.S. of bit the results, background little you

executing what they markets reporting consistent tracking. we're international with primarily Yes, Andy, transaction the international is we're driven by for the They're as sales and this are growth. And that's a again, playbook same-store our in in is Alex. that domestic. well, markets, seeing

the are guys size the you were some stuff of couple you've food Okay. near chain company being? to and locked And and supply I But chain of the that. are a of time for mean, recall there supply for term? discussions side. on quickly about kind you then on following understanding or where a for cost up "owning" But the just scale at are want at are that's with comfortable where guide least I you of you years kind like where ago, now the and kind be

us, away the strategy, from committed just and today market. progress how chain We being today, in that of remain buy But in structure spot confidence our We're the we're agreements to that, obviously, is Andy, next that the definitely we're not the food expect seeing very are year. and one cost about fluctuations first something the supply we purchase what more for simply position a we're visibility week-to-week to and moving our have and excited component the into perspective which for finished. from the able results to more of

level yet, joint But vertically an committed that remain co-investment we or some integrated. ultimately control to could include strategy, of components include a complex taking include of amount some of could and entire additional of could which venture

restaurants. in at partners see all yet volatility what us we're the the longer-term strategy, to and think that that part costs opening of it's minimize remains in think confidence but our all And gives more focus I that I brand able And so play. on food

Citigroup. is question with from Jon next Tower The

update curious that me. efforts test I'm in time? kind aspirational up sales of markets, of ordering guys your XXX% you kind a Just if the digital voice can to give The mix AI to the in for few especially you an get on had over

it's the we're enhancing seeing to what We're progress, and happy models with a help platform us transaction. experience. in every that of investments good of achieve Jon. digitizing continue goal in of we're And and that something our ordering opportunities test. digital Yes, can I best-in-class our These aspirational think example large language

a scaling it lever view $X million. we AUVs as us So our on beyond to another for path

Okay. How many in is today? it stores

We have about a little over XXX restaurants.

for My just Wingstop of hurdles it's Great. I maybe talk believe this international can launch. rollout, you the the not in And terms markets time? domestic-only -- about that reasons Okay. Can you the or into a at moving the

Yes.

in the there's needed do a here investment Jon, that's in element practical something to the like done we've the think, I U.S. support investments to

I million. that's think that helped our north business a digital the OLO is U.S. a us of today, strategic that our included playbook to partner it in like scale $X business where

I is And of are in business My we time, whether digital think think we it to these the makes make U.S. as can of and taking markets they over or evaluate not or this find international to Wingstop scale kind sense that initially. we can a the -- I this outside good strategy platform is investment scale, approach

there as are one leaning is opportunities a U.S. We're continue a integration OLO But using the like OLO with to of that. we partner a in I of the around markets help think ordering. replicating And leverage OLO elements and couple I to Alex the partnership them. we outside voice see referenced to then with into referenced partner

digital of XXX ways Alex we'll as continue XXX% our digitized and a business. goal -- our to expand over aspirational so fully to continue to drive mentioned, to it to business find And

know then is you And platform 'XX? last past as -- chicken you've real we where Could I the opportunity pipeline? spoken being opportunity. discuss in tender in that where your feel to business Can an about a something the in just see Great. you one. there's like you the coming as think

times low guests the chicken Even on Yes, aren't tenders core mini good tenders is aware mixes It option. example awareness menu. is our something today, low even in with that at chicken very a our Jon, of a single digit.

a to to bring our believe we for that of -- well. think our of of users opportunity leveraging new, I good usage innovation tender guests profiles a example are menu sandwich a us so high as the and lot is flavor chicken an And within something lot also

us new into drive an is it consider guests brand. to opportunity the to continue for to as So

from next The is question with Geiger UBS. Dennis

a you've are You've initiatives resonating, that newer got this some and got coming clearly initiatives of bunch year. supporting traffic

touched sales about together. the excited for levers on curious drivers the all different all 'XX that's you're how working you think at that XXXX? of if a about these drivers momentum most from And recognizing that of or if speak some the about But maybe of this could impactful you lot to for So sales year? most kind is just you've

it's expanding in us Yes. mean our still which these meaningful even brand we've made for mentioned opportunity I in executing drivers awareness, I is XXXX, we the after think us, whether and the against, a progress XX% we're mix, growth to delivery brands that's north fund able be channel ad much support continuing that still off-premise heavy to a mix. of delivery. more mature We're to XX%. know expand awareness roughly We enjoyed at

that through in see sandwich growth of the we occasions kind channel, chicken menu we along So meaningful innovation. can move and

And of those technology our us lot $X of all from million today. overall help we're that million making multiyear drive them, the database we equally digital of the talked continue of each digital have those We impact support that in deleveraging AUVs launch one business. north just our to of that of a them. and surface to there. we're we're all the level marketing because target the have, Wingstop, associated with mentioned scratching kind have think all of of exceeding a about $X.X My I there and runway our about of excited We investments

concludes as attending today. call our conference today's This session for you Thank well for our question-and-answer as presentation.

now may disconnect. You