Wingstop (WING) 31 Jul 242024 Q2 Earnings call transcript

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Wingstop Fiscal Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded today, Wednesday, July 31, 2024.

On the call today are Michael Skipworth, President and Chief Executive Officer; and Alex Kaleida; Senior Vice President and Chief Financial Officer. I would now like to turn the conference over to Alex. ahead. go Please

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

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

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

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

we that should believe be We the I that, in release. use with measures certain to GAAP Presentation to for information like financial evaluating would GAAP. in such isolation substitute comparable earnings performance. Michael. [Operator accordance measures not can Instructions] over our prepared a non-GAAP call turn to useful considered in are With results Reconciliations our or contained of as be in

Thank good you, Alex, and everyone. morning,

Our Wingstop Their restaurant and another second recognizing our Wingstop truly on work by the were support partners. global and incredible by brand our long-term I executing delivered teams focus living start Way to center, partners team, industry-leading our remarkable. want quarter has in the results supplier the relentless quarter. in entire the strategy and the

is development quarter, as delivered demand top partners second and transaction growth. our for same-store line strengthen brand which sales This strengthens. growth our our growth growth, increasing almost the In we economics unit sustained entirely XX.X% from was driven by pipeline continues to

be brand experiencing I growth. am $XX.X XX the year. rate representing humbled growth QX. unprecedented we to a over opened and delivered adjusted We new million, such part EBITDA that of restaurants, net record a a prior is of truly XX.X%

XXth we anniversary. Earlier our this celebrated month,

as in our Dallas, meal first a occasion. which wings began The of the Wingstop plate center pioneering journey opened

and and and in guests our not remained Wingstop has that operating lot model occasion, distinctive that and chicken boneless We brand. our added around years, with delivering quality wings, simple last have tossed focused soft bold the changed on wings, our is the centered XX tenders sandwich, Over a we indulgent cook-to-order flavors.

today remains that open is transaction Wingstop years simple, XX later. and million growth original still in That out roughly experiencing doing efficient of sales footprint $X

lot have past of I we to are proud over confidently a getting at and the say we can X Wingstop. celebrate be just decades, started here While that

Day positioning A AUV little One after assuming $X.X of Investor to over average a growth we role Wingstop's system million of our several years of as supported the and X $X multiyear and strategies then from at ago target outlined that million. CEO, shortly Category the

the are and executing channel, against would These to same were new confident innovation, digital expanding delivery transformation. marketing would strategies partners, our returns for in which of strengthen we multiyear brand today awareness, significant brand turn our lead We our are growth. that create our consist for that strategies scaling data-driven demand

I target sales I confidence us here what level announce today Investor years as these a did to to X against, years runway us. can our just these are of sit we forward look as same in with today the is gives the now And we Day. sustaining confidence we new strategies, success Fast of above AUVs front in $X today, this Yet are X executing $X meaningful million. at our see ago at AUV million. strategies later of and of

sustaining growth. a strategy we see is sales of example same-store awareness Brand great a

growth, opportunity brand brands, percentage only but have year-over-year. in of but great more as our mature points we towards scaling same-store progress remains awareness national are XXXX, yet by we the We than making we have work XX% a In delivering moved meaningful. in gap been awareness awareness closing more to brand sales couple

closing significant. is gap The this impact from

fund, advertising XX%, over the by grew in sales XXXX. in years we the expand our is to invest system double allows media brand in which awareness. XXXX fueled investment past invested During the sales of in perspective, provide dollars system-wide what growth To quarter, and that delivers some us couple which to meaningful firepower has additional a

on media and sports very proven Our streaming with has online in to highly approach and placement creative live strategy breakthrough be effective. focused a video combined targeted

We guest continue team focused a our scores in experience. strong to partners levels delivering quality operational measure value and and great brand on are as excellence and members

The to how evident their and us dividends. upon and delivers is occasion disciplined second almost growth. spend value was pricing has indulgent prioritize the entirely and Our both believe driven is quarter our menu XX.X% approach transaction which uniquely continuing to quality our comp years positioned, when that Wingstop in to over quality discretionary consumer deciding paying value is by We where results, dollars.

years with innovation stickiness flavor who a unique with the guest. menu our sandwich is experiencing brand, quality guest and for Our new and an time, driving the what's this the our chicken attracting is incredible which has Wingstop into over new made first

continue to sandwich in still see reaching X.X U.S. anywhere of fair sandwich to haven't share guests, in we While billion we the our our the growth chicken close chicken come servings annually

guests the about they're frequency curve new what guests are than moving we've this me guest traditional most our before. demonstrating and index on is than higher frequency boneless. faster up excites a What higher witnessed These the

beginning to time Wingstop, we're years tick see the first upwards. frequency in For at my XX

quarter at represented for stands sales XX XX.X% strong. users second over of the sales, and our now million Digital database

migrating the in engagement $X.X digital in our investing guest of to MyWingstop and platform. through guests. data digital more completed billion profiles and sales our been We enrich optimize technology than rollout our our digital recently the of with platform have QX, We our

adapt a quickly more to and that with team that what MyWingstop platform I is best-in-class X the rollout. It us technology proprietary our accomplished years tech I prouder believe and for changing is of started over the be invested most built we allows million. and building a $XX is couldn't we needs. platform consumer Wingstop nearly modern executed ago to

allow have very MyWingstop, are that early, While rates of And us long-term of with increase MyWingstop conversion can frequency. will digital business. level our launch unlock to a the can believe impact we we hyper excited we the on about and personalization new

as Something multiyear we of XXX% driver sales business. digitizing to aspirational our we our of goal as against a continue execute view

Delivery sales to our growth. occasions another strategy of remain sustain core tenet

Wingstop guests. transaction this more of continue mind growth DoorDash delivery in to both We top our space We and opportunity Uber platforms. have view within as fill and to as see Eats the and reach their white with new the of of lot we in a funnel an top make more channel consumers

these levers to growth It's see in remarkable truly multiyear sales been action.

to ahead amount new this combine that consistent to confidence energized When lies I'm gives the you of target us our While in growth of we $X million. us. have made scale the great progress, with team's of ability it by our AUV execution,

year of development. of of XX%, AUV in economics strength The for Based our see approximately a strengthening XXXX our growth raising that combination to the for comp consecutive operating category are us record unit same-store the on our business in sales and growth, we we XXst Wingstop guidance further effectiveness up strategies, the is and one. our demonstrating of setting pace of a is fueling

the have were opened opened excitement our restaurants, important Wingstops. note is more partners over than existing reinvesting. In new that to the we XXX by brand And more XX last restaurants showcasing open partners of it to XX% months, our brand net of

commitments restaurant ever future for pipeline the is strongest been. it's Our

industry-leading has are returns for more partners fueled unlevered demand cash-on-cash brand enjoying significant than Our growth. of XX%, which

restaurants net demand our of new a to for XXX has in we the XXX range pipeline, growth shape increasing to As taken for are restaurant new our outlook XXXX.

continue As we brand a the over of bring further of guests levels expand have years, our way meaningful past scaled new to couple in restaurant and footprint. record the

us have a at have look unit We of front domestically. opportunity hard taken we the in

refreshed in And work a total market an to like top-down market addressable a bottoms-up the reevaluated unit standpoint. U.S. and in through from led of specific a plans our and playbooks. has potential the announce This trade U.S. I'd updated We build area combination to

domestically, early globally. believe with having restaurants we success combine from footprint. now of U.S. Wingstop North Pacific can When Asia America, markets XX,XXX to to current we're Europe outside the opportunity more can we support scale U.S. in X,XXX to our than We tripling restaurants Western more the and region than you we this our the over believe

U.S., sales transaction which trends, growth primarily driven to is are the growth. by same-store we seeing double-digit Similar

growth international AUV than have Our grown more years. last the XX% X in

for international and clear our our is I supercharged markets, playbook have business a growth. believe international We for

Way. foundation and We our We view competitive in we Wingstop people strategy, remain to advantage. of our what culture, investing refer and our as anchored the as a people culture our the our in

that, I'd opportunity is over exciting global towards we As to scale line Wingstop to the restaurant incredibly turn Wingstop's into clear to sight It scaling we Wingstop. of have time at With we believe Alex. an globally, a XX top to brand. call like look

more we've be half you, by Thank had not Michael. excited the could first at I Wingstop. performance

of results AUV our resiliency category Wingstop's our second strategies showcase quarter, In prior of domestic and the position. Our of the our target further million. second exceeded quarter proven $X one solidify

executing million sales, And XX.X% target. us to new multiyear a domestic by the growth, industry by are primarily in strategies remarkable as increase transaction AUV was in driven we growth considering against is position the Michael same-store AUV mentioned, $X reach The QX which truly fueled backdrop.

away opportunity brand in as second fueling in and advertising our a fund flywheel awareness. XX.X% is delivered for the growth creating and We which quarter, system-wide chip our sales we at

in strengthened Our creating level to the demand at and best-in-class pipeline open record a have quarter, more sits our partners further Wingstops brand development unit our economics from more today.

not a yet, in AUVs $X.X even our net for We XXXX vintage on the set record our follows X, pace new record year new a achieving in opened vintages while approaching annualized now quarters. are QX, fully that's units, restaurant XXXX stronger. prior with million X XX for And which

year driven other have The franchise Total fees to visibility by openings primarily restaurants. million since to range increased new by our confidence sales to outlook and a XX.X% XXX pipeline same-store QX, XXX $XXX.X growth to gives prior year XXX million. period of Royalty us XX.X%. we the development versus franchise prior revenue into $XX.X net roughly in the revenue the net increased and comparable raise of our revenues,

and $XX.X in comparable versus Company-owned increase million QX, the due $X.X restaurants prior transaction restaurant to new year sales growth primarily same-store a XX.X% increase net an X of million, driven company-owned period. sales, by totaled in

around wing target of a food mid-XX% be beverage creating per in Our bone-in pound. volatility costs and north quarter, supply that centered spot predictability In minimizing is time when at strategy $X.XX food in effective, market food, proven and costs. well costs the has packaging range of restaurant our were costs to company-owned chain reached on second strategy the our have a highly

in the of acknowledge recent price the movement We market wings. bone-in

in an line changed, for into experience not we per the food mid-XX% to However, continue north pound, a well where have the costs XX% and would Historically, spot environment costs cost to range. food our in we $X expectations sight have of the range. target was market of food

lean is is fueling creating strengthens record As XXXX we food This of into it our our line for to partners cost as with unit level tremendous sight into and us economics. providing of predictability strategy, it continue further brand among is food growth excitement of our costs. this demand best-in-class a

a second an $XX.X on of prior QX compensation our increased In year. performance-based to quarter based investments an of increase measure, million was adjusted support non-GAAP a of long-term growth period stock comparable This EBITDA EBITDA, strategies Adjusted quarter, driven increase by and the that by million, incentive the rate SG&A during a versus and year XXXX growth our industry-leading on the $XX.X is $X versus XX.X% of total performance. XX%. top prior in the million

prior delivered the versus $X.XX, share per XX% of a We year. increase diluted earnings

returns. per repurchased we in our share In repurchase $XX.X tenet million the shareholder at our program second of average share. key remaining is At end stock authorization. XX,XXX quarter, under of our of was $XXX.XX an the Another to strategy price shares QX, current enhance

the XXX,XXX is our program, our strategy our share through repurchased of total average a of of capital program. inception weighted return have shares And dividend regular Since another of price component of at we repurchase a $XXX.XX.

on per $X.XX XX, of of the an XX, our XX%, a dividend approved of XXXX, approximately stockholders demonstration asset-light our strength million September will increase Board July stock, paid which $X.X as totaling XXXX. to is August X, of a of of common of On model. share This record be Directors dividend of

enhancing shareholder a through authorization million combination quarterly regular our program. $XX share repurchase remain committed our to dividend and remaining of We returns

of updates into results XXXX. to visibility shifting the half our the year for Now outlook. we of guidance Based strong on the to providing are our pipeline, the and first following

million, Net approximately SG&A digits. estimated low sales $XXX year guidance million approximately be million $XXX million, and approximately same-store including previously for new $XXX between Domestic and restaurants. XXX compensation of XXX double growth XXX million, expense. stock-based to fiscal previously $XX new net between XXXX, to is XX% of restaurants previously XXX

guidance short-term business. is in driven The a increase performance SG&A our the as by primarily of in the incentive result compensation

by X brand like quarter to our against and results a Our execute the to These to restaurant partners for our strategies to been restaurant open global of testament Operator, not please proven and partners. team our team efforts becoming line extraordinary have members, would I'd top XX are a members, global possible now long-term without questions. we focus supplier brand. have vision turn Q&A. the support results

Tarantino comes David [Operator Instructions] question from The Baird. first from

about start comments strong year. on very your brand a on Congratulations the a had I question awareness. to Michael,

awareness like where couple now wide. I is you'd a consumers think maybe been where points that you brands kind you've be there you that long of you pretty would bigger brand is gap of be on guess just in was if great. I percentage are mostly it the willing opportunity? I mentioned that attracting? of up the are gap, these you would be to where is share versus to brand to term the color any new some wondering versus versus And still up within of only some frame awareness national

for you the question. thank David,

confidence talking said awareness couple year, executing XX% significant. double-digit brand. It's to in the the we've it past, And AUV about talked other that a is we But sales new moved ability in well you It's over a guests I about we're prior we think we're meaningful. in think how or measure us gives as over I delivering lot in a against, we've summarized that to million. brand other $X growth. only points. And strategies few been the target well that these the the national a it percentage our we in about -- are mature bringing of range. it when much of more time over in with of I definitely concert you think new And year-to-date, achieve gap same-store a into lot brands our have think

we that was results XX.X% by our are increasing backdrop, in there's a think I industry are of this and more that that if growth. losing handful you them. lot at look against a transactions brands transaction And where driven delivered a comp primarily

into of think occasions new strategies more that's more innovation, us We chicken become our consideration about the are winning really brand. and that a that And lot I to the we effectiveness menu talked set. and to in in allowing fact showcases sandwich in just bringing the that of how new addition bringing of we're guests guests.

And delivering on occasions. guest as partners our in members focus experience, winning team the and more and restaurant we're excellence a ops brand great

year, for in sales are know outlook brands to expecting in much there's drive And so up increasing shape the growth. we that for that in confidence updated are lot outlook in that this our range. something gives of year continuing saw like XX% approximately line I other where this you to And outsized us a their top same-store environment be to that less don't many

just a follow-up. And Great.

that new something wanted I platform think to of I you're thoughts approaches with the are have the seems contemplating? your the And big on get continue? media. advertising advertising that one of national your Or sort catalyst whether sandwich to chicken been planning you're there to with

chicken servings it understand about chicken U.S. something sandwich the X.X engage how awareness that with Yes, opportunity the can in consumer to Obviously, every relate David, to have sandwich is significant U.S. I to annually with, billion and that back think ties just we just around in

created really come these that's chicken new come then easy in new menu, with of frequently. via point the brand. entry is our navigate bringing what more And guests we're so that we've seen into sooner, we're seeing a And sandwich that these learn the to they back guests enter rest and back and they

that. about around variety with believe It's I abundance. our just really it's And and generally we're resonating think the think by showcasing showcasing I that it's encouraged awareness. our so is flavors, strategy But of about speaking, we about well And advertising, building guests.

Barclays. comes from Jeffrey from Bernstein next The question

My consumer comp for for slowing that seeing industry I lot change on second reflect It for or was one into first any seem doesn't along those to quarter. you concerns July. and or there's question just specifically the in by are in better note if and comps. it's in Obviously, a the macro month follow-up. the trends then whether any share either investor be evident Wondering worse? lines of of results. to I directional you visitation, could your mean trends shift, the would had change mix behavior And anything maybe

Yes, Jeff.

which a in to as relates showed think the we QX, to it operating comp consistent X. in throughout it our a XXst pretty same-store overall year I of couple there's the And And our of just strength we really With deliver saw of XXXX point just I As to things backdrop, think here. quarter, for category up us consistent think about Wingstop setting guide consecutive growth. our sales that's out a business. showcases

in that couple those grow to so of the that that, can continuing then it's gap same-store opportunity. growth awareness, the innovation users for retain occasion, targeted occasions, historically of been then of sales allowed strong executing of significant position continue that do our have that's which business. And XX% we back consumers, of against, access via brand-specific all there, and chicken and database is delivery, And whether we've we're high-frequency of and to the it's they'll to think sandwich, begin digital save if and expand whether our that's they in business see to we've sales, drivers on digital they'll to pull then supported how funnel under to a grow us expand pull pressure in the business. through up decades guests visits continuing some advertise Wingstop to that to really the close how to via million menu top in regardless I seen those closing and back, highlights that a what bringing And with we over new backdrop. more macro able brand, the we've addition brand And XX very indulgent of I within that invested like a by think remains are unique clearly unique you be

And so I us where of in our really we in actually a can environment. brands a a think, in just that, us spot where outlook more puts of year navigating position and it all lot environment to a in challenging are this unique puts this other increase

Understood. imagine these my the And mean, excited follow-up. comp can think growth, long to but you then investors I term. I sustain hard by get at levels

driver. your year like that unit for to the that really what it's this to target So the XX% you fact stable is bumped consistent, more looks XX%. growth The up top line

the you pipeline it's think mentioned strongest I ever.

thoughts was if think is 'XX wondering see you to elevated the higher any But years visibility about going can base I'm but time out kind rate? for of before achieve. many $X we're next that as no you kind is million to to within as how more into necessarily that openings percentage And there million... frame you about to year, that, AUV, wondering, 'XX growth Just in long-term a of maintain $X mean, on talking just talked year, give this that growth. openings I versus XX% of algorithm your

then from And growth you chain a The $X.X to really million, to really in to translated mean just us, is I years, growth. talk strong. AUV focused that's sales, gone often drive same-store on strength brand for in from X partners you that the million combine highlighted demand $X with supply We to for unit lot against Thanks, about continuing it's our And our have economics. really progress strategy. Jeff. something I think but important.

position our the But as And we we U.S., confidence to in that increase the algorithm I able we're as think to far to long-term importantly, in addressable unit deliver market gives as to on us growth like most thought so work have total a opportunity goes. units. it over the continuing X,XXX in be within in we about feel support

we and to gets more that to denominator as we'll demand bigger, we so there Gap] that after and need And obviously, continue year, on units therefore, support to year deliver is open think algorithm, the that. [Audio

around to point be would how can helpful. you rationalizing you're Anything very

rewarding -- we The this to new on moving coming focus guests. frequency consumer us Yes, level and uptick bringing we're driving couple One frequency we of lean of to I as mentioned really, where faster. for -- guests on bring value things. consideration guest we're that. that think become set, in, measured continuing consumers in in traditional of more the thing guests is back continued And Andrew. quality, is record earlier, our The they're and the continue to new and are quarter, delivering an as up and that these in But we that those in new improvements categories. brand a curve I a sooner than are quarter after have

think fit time. how more consumers by and to can And how we encouraged broaden we're more the Wingstop, continue over we frequency win so to in that's view overall starting occasions consideration set because impact really we and their

how helpful. X,XXX Very market. landed second time X,XXX. about long-term went then you've And did to you you raised my Last on follow-up this X,XXX is you the Can the U.S. talk the time stores? is, Okay. this, from for you TAM

curious X,XXX X,XXX. just how So leapfrog you to

more our front markets see runway of a lot a we the of. with to us. it and where of we've more open an restaurants, just past mature couple Andrew, progress to continue over example take made some do years Yes, the of in to lot as has of we

restaurants providing question as new back ties an it prior within the more so bit we've little consideration your set for won And Wingstop of becomes to that's the guests U.S. a opportunity as more more

across the we broader around very over did which X,XXX made we develop analysis the that's our footprint in how United a so States, we of And detailed meaningful opportunity units that how progress and and pretty at over time is triple arrived U.S. today. the would over a

question next America. Sara of comes from Bank The from Senatore

clarification question. a Great. then A and

target size the So is kit X just in -- that terms address or going whether that would as would you that there to production equipment, harder you anything constraints AUV, you it's of you that need anticipate limit leverage now? you any what have of Or on just anything million continued from kind million from than based X standpoint, seeing the could a have swap to the assets even already?

roughly I growing in million still think same And the mentioned transactions. I of remarks, that years Wingstop ago. in box, doing XX is my And the kitchen. opened same out that restaurant prepared efficient we're first that $X

I above. so million little doing any means And of or as $X our by already roughly don't is constraint have here we system today, think we bit capacity sit a XX%, a more

restaurant. of So the lot there's within capacity a

in brand So we who really the kind the within vintages be change the it need don't delivering seen strength to that. of I that And the able achieve is for size we've a box to across all are of see comps. of outsized think sort any structural operations and showcases the or

Got it.

cost. shift the In bone-in of you've a -- at question the made these of is past the benefited goods, structural about then with And obviously, really sort XX% given the food business Okay. it prices. which would have that's been cost

it forward? If should so I also the understand mid-XXs. your this get you of is. trying what around pricing to go presumably, longer for of can the everybody value if how proposition this But limited truly over is because forward is And of kind price up higher at this just time, prices the greater guess has that has kind wanting very maintain wage think or think continue idea pricing that cover means then going I'm to you else to even that I inflation. mid-XXs my wing still while inflation, So to take other of But cover this about head strong. going fixed amounts I kind only to

So strategy? maybe input bit what pricing works a this little cost, how your clarity and more for on just then input costs

Alex. core question. on us. of we the of is mentioned chain excitement the is the this a our in partners costs. our our first mitigate the Thanks brand strength Sara, this, of our strategy to strategy for view supply is it's and the the this unit for Yes, big And Michael volatility -- economics at food unlock

Just to our a the paint picture history of a bit brand. as

$X.XX $X.XX. was at you year spot like wing just back by was our time. and XXXX our market spot market about to was on trace we If $X.XX had average forward just below today, price under food ended price QX, XX%. a a saw that the in quarter cost move and XX% that quarter-to-quarter, Fast We the to the market for wings

have into really really is do to can growth gotten business. to remain this partners to opportunistic price, us XXXX. your something are maximize allows transaction on excited about, now question take our So in we And we that price visibility and our increases what seeing disciplined this we're on brand

question O'Cull Stifel. next from Chris from The comes

-- $X had the a question a just -- went I the I changes. TAM system U.S. about goal Michael, billion. I $XX to mean from went follow-up Yes. had billion sales from

So can a U.S. reasonable the the determine little you color research give us to in did a more chain company for the the potential around that's

when it maybe at analysis understanding new our was one I to more mature or Chris, the approach. get I high necessarily are demographics, think, of and understanding category pretty area markets, from detailed trade in than bottoms specific, a I perform the about us, pretty gives level, brands that don't if there. how as who us mean that. operate of but we think easy confidence in that mature worked think, more to tops-down Yes. It's a up these yet restaurants deliver have footprints, similar a like other then you some ability emerging But

the Can And think, opening, Okay. you help just this event in AUVs exceeding countries. a can with years? X many to the the Western region, U.S. are expand have response, units year. over plans let's X that how system how Paris to The company system U.K. marketing in you in I believe planned the now Michael, the understand next an that European announced us And then, in later say,

business. across we're what all of that double-digit Europe. we're have I while, growth the just Indonesia, as for in momentum think experiencing to in or conversation mature in ones -- the more our about the I Chris, we've our markets, pretty similar Western Mexico would it's U.S. such been If even look we're international the we to don't Yes, a excited And seeing narrow we

And that so opportunity overall excitement our brand have, about the pretty us we with that's U.S. for bullish the proven And new In is playbook. development lot performing the about we a our We're And you're outside U.K., couple right. the business extremely have pipeline of in of the that that demand the opportunity well. countries. gives

you're so additional to We're replicate And Rico. going markets the that into. doing in that we across Puerto us Canada, see that expand already

a That's the You like feel right. it's exactly location mentioned know Paris We we us opening playbook, later. in proven.

just about the and partner so And right finding it's thing. scaling this

overall excited of pretty opportunity the we're so And about U.S. outside

Danilo Gargiulo from question from next comes Bernstein. The

might a mentioned question And more is growth you today. quarter congrats My capacity bit again is kitchen going refrigeration know $X about constraint space once your AUV seeing forward. to exceptional there be But little that limited. back I on the million you're an again. on that no

if what us how chain your the of AUV. delivery are successful most are that also, so, now million forward? increased does some stores from help can And are about if stores give million And above the right having strategy the can $X understand on some your us you whether leveraging $X already maybe going that change percentage context supply So AUVs you suppliers?

Thank you, good and morning.

ones that the one sit I are with from fundamental AUV million additional change require to achieve here things delivery that's in require and house. XX% $X restaurants already our the doesn't those is the the mentioned is the to levels. asset may a do only $X difference doing kitchen the not today, Wingstop week, operations. fundamental or of And of chicken below back the the have unique over I a million tenure. those of of but think It And AUVs. or we system to previously, really, as about It one to change a

If stack pretty up chart right. into restaurants it's by a up vintage, our linear you the

bit to had And little tenured in of opportunity have more of so restaurants the who reality participate those XX are years soon a growth. sales these is, to same-store the XX more be

your is Great. bundle price And a bundled up your that the you activity competitors? in consumers of relevance winning strategy, some category? advertising from of maybe some of you are pricing And the picking track promotion -- chicken that deals any talk elevated strategy, just on think denting maybe witnessing the you are at seeing compared we've to challenges ability about the can positioning now your what to reflecting Why wings the least to this also and standards? doing competitors your do promotional are meal challenges on seen so you or of on

Yes.

pack current plays a thinking the bit more for but do to, really our in. to that new the and guests part group our X of provide there's well really our is group a pack anything Our reactive group on which a of occasion playbook I wouldn't off-premise. years bundle that or been a that allows something those the maybe little Wingstop menu environment. today provided occasion that's and will, that you if It's of us it over strategy, highlights It's or plenty say

guest we deliver when us And on do bundles, on expectations. deliver it so to allows highlight and that

lot I the are environment, we lean quite focused with working our too executing have the we'll think against As we're not believe it relates we're as and QX or strategies continue quite can think to into pivot, well, a see our just to to frankly, on we there's competitive that results, you those.

The comes Brian Marlin next from question Harbour from Stanley.

X like right? what what from uplift? is kind do think answer that, or to you And million might maybe be impactful material doing, if just the Going something AUVs, expanding think what that be driving million about do most to in obvious think But product of will you that? more you assortment X you're

our exactly more their is you more in think seeing about top bringing occasions, what opening about against the executing oversimplify and $X the funnel, which the million, it, strategies and of if really doing winning results. set AUVs into line more QX we sight we we Brian, and in the guests scaling becoming consideration we're of we're it's what we're kind have as to of believe of

off-premise change we I remarks, And as just the delivery relates take of the so roughly go I on mature prepared as sales in to And highlight our to low. awareness, awareness north points of strategies to that of of in levels runway the don't platforms I And differently. are delivery against. channel. this brand front it's more we talked fundamental have there's or And we're do XX% we have that heavy mix. about a our our think wanted really of amount chase after within earlier brands, delivery one it's that XX%. executing It's still it but us -- if really benchmark was

really that ordering launch example a a create allowing customized MyWingstop. access us. so of game again, of build is you digital when changer our you hyper there's for us you're to to personalization ton there. be win that's experience guest we've And that lean which best-in-class and in data going another opportunity the I believe first-party invested that's of And leverage a business, occasions. more going to create that ordering think, to experience, into ease for We

continuing strategies are about to So that of some I really the into it's Brian, lean just think, working. us

is just stores, Your longer, kind about suggested kind vintage any highest it's some they drive -- do faster of you been other those to those lower view, times? have in of open service have But kind drive prior from do volume like you Or can higher sales operational are really your things volume of your answer stores the of AUVs. you've stores? there in learn advantage there

more tenured But that I tenured operational generally some not the allows restaurants other the team it's it's would efficiencies relates the there's impact more improvements I of a as tenure and wouldn't have or just to the about than out, than it likely because anything say they speaking, restaurant, there. volumes call whether in operations not expand fundamental our there's in to really this emerging productivity asked ability exciting restaurant the us there's where demand, a think seeing grow AUVs. to which continue these And to you lot about markets, pent-up of really new and and restaurants. smaller, brand I difference. We're newer higher-volume a in of continue some confidence gives

from The comes from next question Barish Jefferies. Andy

mean impressive XQ, us move that number so? sales of you I kind understand maybe the And the kind if mean to of I initially. obviously up? year wasn't But number didn't think in you start over it digital expected why that that's how glide with helps help that The stayed out path at do so, percent. it it's the or can MyWingstop rolling XX-plus same. next

sales okay Andy, channel growth because as But is consistent QX it was which are with consumers come into way and our we did a strong digital carryout we to to perspective, pretty the engage nondigital and and total some see grow. the really that in some brand saw mix just -- with we're choosing brand.

rollout digital to MyWingstop, end we're a from in obviously, perspective, see so pretty year-over-year And sales, the we're completed continuing encouraged And by QX. the of by. strength excited. we're we which

guests and remind position a a sales into MyWingstop, and drive enrich database does and how be very to we've to top invested able drive guest over does experience our to built that million really personalized Wingstop But consideration digital everybody, XX increase ultimately and that lean have think with So personalization, us in growth continue about this digital to of we're to hydro we to platform for XX% of strong mind for experience leverage data in that's check. guest users that going which average that to experience. excited about we're can a the

Stephens Inc. question next The comes from Jim from Salera

consumer an for we've increased for marketing seems products what about what TV. noticed you target? us us, with and like more the to is tender actually tenders maybe towards Sandwich think the that boneless. you million $X just Can give you guys skewing the some the tender Chicken Michael, you to help talked around And along pathway update AUV potential kind mix the of on

our pull lower actually see you're Sandwich. do we opportunity occasion. more tender that seeing and highlighting advertising, lever it's Wingstop Yes, say to about that an we Chicken as around that right. have And as variety occasions. I mix abundance to tender an that the would offer than win more at is opportunity just as tenders a if you're We in that indulgent

more set we the pretty about. I to, excited targeted do we're consideration which or that there, of win an more specific but as see nothing opportunity and become So before, as mentioned occasions,

value the And like with versus to support taken strategy more historically, seems growth. brand million Great. strong $X and viewed bit maybe But the Can towards the again, some AUV? Okay. absolute price as talk value, little to to offering, and supply from more and supporting the experiential value. relative that's and and It tenders. electric maybe towards industry we Wingstop going favorably absolute the tilting absolute like maybe $X of sandwich you tilting versus value more chain an offerings, million the more traffic it's about a just tilting new

kind a check. say growth in we've you see hasn't sustained I And little can think really average have actually positioning of our our would in I brand of not seen Yes. changed. that bit

consumer's over I the we the evolve with about an dollars. is that's quality. discretionary last have shows they're And And selective so to quality or it's and way about and seen for food becoming Wingstop, value up. And indulgent It's the our spend as more so how about year occasion. flavor what think desire those

had a how that brand is And it's we time that's so as towards when leaning out, like we've And a for feel less they helping support consumers really gut are our now. and more long for fill position been positioned, dine do looking experiential.

The next from Haskett. Farmer Gordon question Jeff comes from

in pointed company curious have on front. strong the very that suggest Your just numbers your I'm demand has of demand softening restaurant California. markets. California to in life the is seen good system sales same-store several peers all of But what across material Wingstop

lean to but this one that model partners April have a roster see Alex. of this see And I operating they the wage post, allows in transaction Jeff, disciplined took growth. And on prior the a and they same a results in the change here were this different. offset our pricing wage We we is in size in to us example some Wingstop increase X. good very measured comments, think we on being category that of -- help deploy increase did streamlined of restaurant. Yes, our brand to not that we and is saw

trends California in fact, California of the In outside business. see a are to we trend our very similar for what following

follow-up just on And MyWingstop. one Okay. That's helpful.

this are seeing point, just I XXX for willing what the XXX test restaurants of some some curious share couple been a operating test have would or I'm platform. the you terms key be at MyWingstop of us the to learnings think of that in of what the you're responding how so with early platform. consumers those and are to with MyWingstop restaurants from the quarters

that's app. a into time web But capabilities from to it consumer we Jeff, a feedback in I partners helping pilot launched I provides consumer-facing would that and from relates the MyWingstop perspective, really brand business test over as we say restaurant rollout profitability. visibility we think would from positive our to the thing the and team in in point allowing about the associated until talked solution drive as completed out them. their MyWingstop wasn't And I the them launch just intelligence it real before, is it biggest operational or is about could new the BI the with members time experience business we've

what And see. days encouraged but there, by so early we're we

The next question Guggenheim. comes from Gregory from Francfort

My you lot how is loyalty Do like half right making recently couple it? and investments maybe question you the of And those making? or technology have on and royalty that? been the you investments feel contemplated supply in a return you're fee digital current Have about the making on structure are to you the the you gives of changes franchisees or chain. thinking maybe investments fee and of last guys years,

advertising the that to our or close where time of fee from something the and feel focus see partners best opportunity increase partners unit and fund in want our the tech our contemplate been opportunity in to advertising, awareness to for shareholders centered ask established increases with now fund returns is is us on right the now in most say see the We we and rollout. a as investment we I'd growth, we around for it as the growth us brand, we so or national brand and our to tech MyWingstop gap X,XXX has time. that Yes, you brand ahead that among -- opportunity we for where the part But our for maximize recently plus.

has conference now the and concluded. session, question-and-answer our you concludes presentation. This Thank attending for today's

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