Wingstop Sees 36% Revenue Growth Amid Franchise Expansion

Wingstop's revenue soared by 36% in 2024 as it opened 349 new locations, enhancing its market presence. The company’s same-store sales also climbed 19.9%, indicating strong customer engagement. Investors should monitor potential oversaturation risks in the franchise model.

Date: 27-03-2025

AI Rating: 7

Earnings Analysis for Wingstop

Wingstop has shown remarkable growth in 2024, with a revenue increase of 36%. This growth is primarily attributed to the opening of 349 new restaurant locations, demonstrating an aggressive expansion strategy. Notably, the company's same-store sales in the United States rose by 19.9%, showcasing the increasing popularity of Wingstop's offerings.

Revenue Breakdown

In 2024, Wingstop's total revenue reached approximately $626 million. Of this, company-owned restaurants generated $120 million, while royalties and franchise fees contributed about $288 million and advertising fees brought in $218 million. With only 20% of its revenue coming from its own stores, the franchise model is pivotal for Wingstop's growth strategy.

Net Income

The company's net income stood at around $109 million, reaffirming its profitability as it expands its franchise model. With royalty and franchise fee revenues increasing by over 39% in 2024, this sign of robust franchise growth could indicate further solid earnings in the future.

However, investors should remain cautious. The franchise model carries inherent risks, especially as it expands. Oversaturation of markets and the potential cannibalization of existing locations could pose challenges in sustaining sales growth. Therefore, while the current financial indicators are positive, keeping an eye on same-store sales performance is crucial for the long-term health of the franchise model.

Stocks: WING MCD