Wingstop Inc. · NASDAQ:WING
Wingstop — Investor Day (May 2022)
89 slides from Wingstop's investor day presentation, May 17, 2022
Slide 1: Investor Day
INVESTOR DAY » ~=MAY 17, 2022
Slide 2: Michael Skipworth, President & CEO
MICHAEL SKIPWORTH President & Chief Executive Officer INVESTOR DAY 2022
Slide 3: Forward-Looking Statements; Non-GAAP Financial Measures
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact or relating to present facts or current conditions included in this presentation are forward-looking statements. Forwa
Slide 4: Today's Objectives
TODAY’S OBJECTIVES Anchor everyone on our strategic path forward Get to know WING senior leadership team! Experience innovative ideas that will ensure a successful delivery of our strategy Deep dive on International business and outlook INVESTOR DAY 2022 4
Slide 5: Steadfast in Our Mission and Vision
STEADFAST IN OUR MISSION AND VISION OUR MISSION OUR VISION TO SERVE THE WORLD FLAVOR TO BECOME A TOP 10 GLOBAL RESTAURANT BRAND INVESTOR DAY 2022 5
Slide 6: A Proven Track Record
A PROVEN TRACK RECORD DRIVEN BY A GLOBAL MARKET AND A PROVEN GROWTH PRESENCE… ALGORITHM $2.3B $1.6M 19.3% 49.6% System-wide sales1 Average unit System-wide sales Stacked domestic volume2 5-yr CAGR3 same-store sales growth4 28M+ 62% 11.6% 793 Unique digital Digital sales mix2 Restaurant development N
Slide 7: Wingstop Performance Is Industry Leading
WINGSTOP PERFORMANCE IS INDUSTRY LEADING 5-YR STACKED DOMESTIC SSS GROWTH1 2021 2020 49.6% 2019 8.0% 42.6% 2018 32.5% 2017 21.4% 25.3% 23.0% 20.0% 20.0% 16.9% 16.0% 11.1% 6.5% 7.0% 4.7% 2.6% Wingstop Chipot le (3) Domin o's (4) McDon ald's Ta co Bell (4) Starb ucks (4) Papa Jo hn's (4) Wendy's (4) K
Slide 8: 2021 Showcased the Resiliency of Our Model
2021 SHOWCASED THE RESILIENCY OF OUR MODEL 8.0% SAME-STORE 23.0% ADJUSTED EBITDA SALES GROWTH GROWTH 72% BONE-IN WING 193 1,105 INFLATION RECORD NET RECORD DEVELOPMENT NEW RESTAURANTS AGREEMENT PIPELINE Data shown for fiscal year ended December 25, 2021. INVESTOR DAY 2022 8
Slide 9: Restaurant Volumes Strengthening Brand Partner Returns
RESTAURANT VOLUMES STRENGTHENING BRAND PARTNER RETURNS AUVs - COMPARABLE RESTAURANTS1 $1,592 $1,246 $1,126 $902 2012 2015 2019 2021 1. Based on restaurants having a full 52 weeks of sales. Average Unit Volumes (AUVs) based on fiscal years ending 12/29/2012, 12/26/2015, 12/28/2019, and 12/25/2021, re
Slide 10: Our Restaurants Continue to Grow Across All Vintages
OUR RESTAURANTS CONTINUE TO GROW ACROSS ALL VINTAGES AVERAGE UNIT VOLUMES (AUVs) BY VINTAGE1 $2.0M 2009 2010 2011 2012 2013 2014 2015 $1.3M 2016 2017 2018 2019 2020 $0.6M YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10 YR 11 YR 12 We Haven’t Found A Point Of Maturation! 1. Average unit volumes sh
Slide 11: We Have a Clear Path to Continued AUV Growth
WE HAVE A CLEAR PATH TO CONTINUED AUV GROWTH… $2.0M+ TARGET DIGITAL TRANSFORMATION DATA- DRIVEN MARKETING $1.6M DELIVERY MENU INNOVATION BRAND AWARENESS TODAY INVESTOR DAY 2022 11
Slide 12: ...Which Will Further Strengthen Returns
…WHICH WILL FURTHER STRENGTHEN RETURNS CASH-ON-CASH RETURNS 2015 2021 Today Domestic System AUV1 $1.1M $1.6M $1.6M Investment Cost2 ~$370K ~ $415K ~ $415K Unlevered COC Return3 50% 50% 70%+ 1. AUV based on Domestic System average for fiscal years ending 12/26/2015 and 12/25/2021, respectively. 2. In
Slide 13: Brand Partners Recognize Strength in Model, Creating Demand for Unit Growth
BRAND PARTNERS RECOGNIZE STRENGTH IN MODEL, CREATING SIGNIFICANT DEMAND FOR UNIT GROWTH GLOBAL RESTAURANT COUNTS GLOBAL DEVELOPMENT PIPELINE1 1,731 1,105 1,059 1,538 986 1,385 1,252 847 1,133 807 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 1. As of December 25, 2021. INVESTOR DAY 2022 13
Slide 14: Translating into Confidence in Our Long-Term Potential
TRANSLATING INTO CONFIDENCE IN OUR LONG-TERM POTENTIAL 7,000+ GLOBAL RESTAURANT POTENTIAL DOMESTIC MARKET INTERNATIONAL MARKETS 1,588 restaurants 203 restaurants 1 1 4,000+ 3,000+ Restaurants Restaurants 1. As of March 26, 2022. INVESTOR DAY 2022 14
Slide 15: ...And Our Strategy Remains Unchanged
…AND OUR STRATEGY REMAINS UNCHANGED TOP 10 GLOBAL RESTAURANT BRAND SUSTAIN SSS GROWTH MAINTAIN BEST-IN-CLASS RETURNS ACCELERATE GROWTH Scale Brand Cost of Goods Master Development Awareness Mitigation Plan Data-Driven Global Expansion Menu Innovation Marketing Global Digital Leverage our Balance Fin
Slide 16: Top 10 Global Restaurant Brand
TOP 10 GLOBAL RESTAURANT BRAND SUSTAIN SSS GROWTH MAINTAIN BEST-IN-CLASS RETURNS ACCELERATE GROWTH Scale Brand Cost of Goods Master Development Awareness Mitigation Plan Data-Driven Global Expansion Menu Innovation Marketing Global Digital Leverage our Balance Fine Tune the Model Sheet Transformatio
Slide 17: Best-in-Class Leadership Team
BEST-IN-CLASS LEADERSHIP TEAM MICHAEL SKIPWORTH ALEX KALEIDA STACY PETERSON MARISA CARONA President & Sr. Vice President, Executive Vice President, Sr. Vice President, Chief Executive Officer Chief Financial Officer Chief Digital & Technology Officer Chief Growth Officer DONNIE UPSHAW GERRY MCGRATH
Slide 18: Donnie Upshaw, Chief People Officer
DONNIE UPSHAW Chief People Officer INVESTOR DAY 2022
Slide 19: Our Culture Is Defined by the Wingstop Way
OUR CULTURE IS DEFINED BY THE WINGSTOP WAY ASPIRATIONAL ACCIDENTAL DISRUPTIVE COMPLACENT CONNECTED AUTHENTIC SILOED AGILE ENTREPRENEURIAL ENTITLED SERVICE-MINDED INDECISIVE FUN INTELLECTUAL CURIOSITY GROWTH BY LEARNING SENSE OF URGENCY PERMISSION-TO-PLAY INVESTOR DAY 2022 19
Slide 20: Our Team Is Wingstop's Competitive Advantage
OUR TEAM IS WINGSTOP’S COMPETITIVE ADVANTAGE HUMBLE RECRUITING & RETAINING IDEAL TEAM PLAYERS RELENTLESS FOCUS ON HUNGRY Building a Cohesive Team Creating Clarity Overcommunicating Clarity Reinforcing Clarity SMART INVESTOR DAY 2022 20
Slide 21: Cultivating a High Performing and Engaged Team
CULTIVATING A HIGH PERFORMING AND ENGAGED TEAM ORGANIZATIONAL TEAM MEMBER HEALTH DEVELOPMENT TALENT ACQUISITION PEOPLE PERFORMANCE MANAGEMENT STRATEGY PROACTIVE TALENT ENGAGED PLANNING CULTURE INVESTOR DAY 2022 21
Slide 22: Innovative Office Space Embodies Our Culture
INNOVATIVE OFFICE SPACE EMBODIES OUR CULTURE AND ATTRACTS TOP TALENT INVESTOR DAY 2022 22
Slide 23: Well-Positioned to Scale the Organization
WELL-POSITIONED TO SCALE THE ORGANIZATION FOR NEXT PHASE OF GROWTH TRACK RECORD PROVEN PEOPLE OF TALENT ENGAGED TEAM STRATEGY DEVELOPMENT AND CULTURE INVESTOR DAY 2022 23
Slide 24: Marisa Carona, Chief Growth Officer
MARISA CARONA Chief Growth Officer INVESTOR DAY 2022
Slide 25: Top 10 Global Restaurant Brand
TOP 10 GLOBAL RESTAURANT BRAND SUSTAIN SSS GROWTH MAINTAIN BEST-IN-CLASS RETURNS ACCELERATE GROWTH Scale Brand Cost of Goods Master Development Awareness Mitigation Plan Data-Driven Global Expansion Menu Innovation Marketing Global Digital Leverage our Balance Fine Tune the Model Sheet Transformatio
Slide 26: Our Strategies Have Staying Power: 18 Consecutive Years of SSS Growth
OUR STRATEGIES HAVE STAYING POWER… DELIVERING 18 CONSECUTIVE YEARS OF DOMESTIC SAME-STORE SALES GROWTH 21.4% 14.8% 15.4% 13.6% 13.8% 12.5% 11.1% 9.9% 8.3% 7.9% 8.0% 6.0% 6.5% 4.9% 4.0% 3.2% 2.6% 1.3% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Demonstrat
Slide 27: We Have a Clear Path to Continued AUV Growth
WE HAVE A CLEAR PATH TO CONTINUED AUV GROWTH $2.0M+ TARGET DIGITAL TRANSFORMATION DATA- DRIVEN MARKETING $1.6M DELIVERY MENU INNOVATION BRAND AWARENESS TODAY INVESTOR DAY 2022 27
Slide 28: $2.0M+ AUV Target
$2.0M+ TARGET DIGITAL TRANSFORMATION DATA- DRIVEN MARKETING $1.6M DELIVERY MENU INNOVATION BRAND AWARENESS TODAY INVESTOR DAY 2022 28
Slide 29: Opportunity to Grow AUVs by Closing Awareness Gap
TREMENDOUS OPPORTUNITY TO GROW AUVS BY CLOSING AWARENESS GAP… BRAND AWARENESS Top Top QSR QSR 2019 2021 Values as of the end of each respective 52-week period. Source: YouGov Brand Health Tracker; Data Shown is Based on Annual Averages. QSR Brands: Arby’s, Burger King, Carl’s Jr, Chick-fil-A, Hardee
Slide 30: ...And We Have the Firepower to Do It
…AND WE HAVE THE FIREPOWER TO DO IT NATIONAL AD FUND PREMIUM CONTENT, LIVE SPORTS $120M+ 3X $41M 2018 2022E 1 2 System sales growth and 1% shift from local to national ad fund 1. For fiscal year ended December 29, 2018. 2. Pro-forma estimate. INVESTOR DAY 2022 30
Slide 31: $2.0M+ AUV Target
$2.0M+ TARGET DIGITAL TRANSFORMATION DATA- DRIVEN MARKETING $1.6M DELIVERY MENU INNOVATION BRAND AWARENESS TODAY INVESTOR DAY 2022 31
Slide 32: We've Been in the Flavor Business Since 1994
WE’VE BEEN IN THE FLAVOR BUSINESS SINCE 1994 Providing Guests New News And Driving Occasions Through Flavor LTOs INVESTOR DAY 2022 32
Slide 33: Opportunistically Leaning into Proven Value Playbook
OPPORTUNISTICALLY LEANING INTO PROVEN VALUE PLAYBOOK ~$8 Per Person Average Driving Occasions Through Value Messaging INVESTOR DAY 2022 33
Slide 34: Menu Innovation Advancing Our Whole Bird Strategy
MENU INNOVATION ADVANCING OUR WHOLE BIRD STRATEGY Developing Craveable Products To Increase Occasions For New And Existing Guests INVESTOR DAY 2022 34
Slide 35: $2.0M+ AUV Target
$2.0M+ TARGET DIGITAL TRANSFORMATION DATA- DRIVEN MARKETING $1.6M DELIVERY MENU INNOVATION BRAND AWARENESS TODAY INVESTOR DAY 2022 36
Slide 36: Meaningful Opportunity to Drive Delivery Sales
MEANINGFUL OPPORTUNITY TO CONTINUE DRIVING OUR DELIVERY SALES DELIVERY SALES MIX 50%+ 27% 13% 1 2 2019 DELIVERY LAUNCH TODAY BENCHMARK 1. 2019: December 2019. 2. Today: March 2022. INVESTOR DAY 2022 37
Slide 37: Stacy Peterson, Chief Digital & Tech Officer
STACY PETERSON Chief Digital & Tech Officer INVESTOR DAY 2022
Slide 38: $2.0M+ AUV Target
$2.0M+ TARGET DIGITAL TRANSFORMATION DATA- DRIVEN MARKETING $1.6M DELIVERY MENU INNOVATION BRAND AWARENESS TODAY INVESTOR DAY 2022 39
Slide 39: Scaling Digital Database to Transform the Business
SCALING DIGITAL DATABASE TO TRANSFORM THE BUSINESS 28M+ 2014 Today 1 Goal Of Digitizing 100% Of Our Transactions 1. Digital guest database as of March 26, 2022. INVESTOR DAY 2022 40
Slide 40: We Are a Tech Company That Serves Flavor
WE ARE A TECH COMPANY THAT SERVES FLAVOR A TRADITIONAL RESTAURANT BRAND A Platform Brand Wins with… • Limited customer data • Promotional driven DATA-RICH STRATEGY TO • Rigid annual calendar GROW SEGMENTS • Point in time transactions • Focused on competitors PERSONALIZED DYNAMIC BRAND CONSUMER ENGAG
Slide 41: Enriched Data Capabilities Enable Personalized Marketing
ENRICHED DATA CAPABILITIES ENABLE IMPACTFUL PERSONALIZED MARKETING HEAVY CHICKEN EARLY TECH CORD CUTTER PREFERRED SANDWICH BUYER ADOPTER WINGSTOP ACTIVELY RESTAURANT OPTED INTO 500 SEARCHING FOR A NET EMAIL VACATION 2 CHILDREN IN HH OVER WORTH ACTIVE LIFESTYLE SPICY FLAVOR PROFILE HAS SOCCER & PREFE
Slide 42: Early in Our Journey, Already Seeing Higher Conversion and Retention
EARLY IN OUR JOURNEY AND ALREADY SEEING HIGHER CONVERSION AND RETENTION DIGITAL USERS LIGHT GROWTH IN GUEST ACQUISITION NEW INCREASING MEDIUM WINGSTOP USAGE HEAVY Start of Pandemic à 2019 2020 2021 2022 INVESTOR DAY 2022 44
Slide 43: Focused Acquisition Strategies Diversifying Our Guest Profile
FOCUSED ACQUISITION STRATEGIES ARE DIVERSIFYING OUR GUEST PROFILE AND ATTRACTING HEAVY QSR USERS Sample of New Segments CORE WINGSTOP GUEST WEEKENDERS SUBURBANITES ETHNIC DIVERSITY INCOME FAMILY Weekenders And Suburbanites Now 1/3 Of Our Customer Database INVESTOR DAY 2022 45
Slide 44: Data Unlocks Meaningful Topline Growth: $500M Opportunity
DATA UNLOCKS MEANINGFUL TOPLINE GROWTH DEVELOPING & GROWING DATABASE +1 +5% VISIT RETENTION SCALING MEASURING INSIGHTS & & DECISIONS $500M OPTIMIZING ACTIVATING ~ OPPORTUNITY ACQUISITION TARGETS INVESTOR DAY 2022 46
Slide 45: $2.0M+ AUV Target
$2.0M+ TARGET DIGITAL TRANSFORMATION DATA- DRIVEN MARKETING $1.6M DELIVERY MENU INNOVATION BRAND AWARENESS TODAY INVESTOR DAY 2022 47
Slide 46: Proactive Investments Have Positioned Us Well
PROACTIVE INVESTMENTS HAVE POSITIONED US WELL 2014 TODAY 1 2 $ 974K AUVs $1.6M AUVs 614 Units 1,791 Units Cash Registers & Standardized POS & Fax Machines Custom App/Website 6% 60%+ DIGITAL MIX DIGITAL MIX 1. As of fiscal year beginning December 29, 2014. 2. As of fiscal quarter ended March 26, 2022
Slide 47: Digital Strength Drives Contribution to AUVs and Profitability
OUR STRENGTH IN DIGITAL DRIVES MEASURABLE CONTRIBUTION TO AUVS AND PROFITABILITY GUEST CHECK $5 LABOR SAVINGS CONVENIENCE BRAND BUILDING HIGHER CHECK FOR DIGITAL ORDERS 1ST PARTY DATA INNOVATION INVESTOR DAY 2022 49
Slide 48: On Par with Digital Sales Mix of Industry Leaders
WE ARE NOW ON PAR WITH THE DIGITAL SALES MIX OF MORE ESTABLISHED INDUSTRY LEADERS DIGITAL SALES MIX 75% 70% 62% 54% 43% 42% Domino's Papa John's Wingstop Starbucks Shake Shack Chipotle (1) (1) (1) (2) (1) (1) 1. As % of domestic sales for fiscal quarter ended March 2022. 2. As % of company-owned res
Slide 49: Global Tech Investments Positioning Us for 100% Digital Business
GLOBAL TECH INVESTMENTS POSITIONING US TO ACHIEVE OUR GOAL OF 100% DIGITAL BUSINESS Investing to fuel our global digital transformation ECOMMERCE GLOBAL BI & INNOVATION PLATFORM ANALYTICS INVESTOR DAY 2022 51
Slide 50: Alex Kaleida, Chief Financial Officer
ALEX KALEIDA Chief Financial Officer INVESTOR DAY 2022
Slide 51: Top 10 Global Restaurant Brand
TOP 10 GLOBAL RESTAURANT BRAND SUSTAIN SSS GROWTH MAINTAIN BEST-IN-CLASS RETURNS ACCELERATE GROWTH Scale Brand Cost of Goods Master Development Awareness Mitigation Plan Data-Driven Global Expansion Menu Innovation Marketing Global Digital Leverage our Balance Fine Tune the Model Sheet Transformatio
Slide 52: AUVs Improving Returns, New Restaurants Opening Stronger Than Ever
AUVS IMPROVING RETURNS, NEW RESTAURANTS OPENING STRONGER THAN EVER AUVs - COMPARABLE RESTAURANTS1 AUVs - NEW RESTAURANTS2 $1,592 $1,305 $1,055 $945 $1,246 $1,126 2015 2019 2021 2018 Class 2019 Class 2020 Class 1. Based on restaurants having a full 52 weeks of sales. AUV based on fiscal years ending
Slide 53: Regions Are Achieving Game-Changing AUVs
REGIONS ARE ACHIEVING GAME-CHANGING AUVS WEST $1,882K NORTH $1,292K SOUTHWEST $1,691K SOUTHEAST $1,239K 1. As of fiscal year ended December 25, 2021. INVESTOR DAY 2022 55
Slide 54: Focused, Simple Operating Model Helps Sustain Growth
OUR FOCUSED, SIMPLE OPERATING MODEL HELPS SUSTAIN LONG-TERM GROWTH EFFICIENT LOW LABOR MODEL FIXED COSTS Simple menu and streamlined Focused on ”B” real operations enable a lean estate sites translating to labor model low occupancy rates STRATEGIC SIMPLE MENU MANAGEMENT COMMODITY BASKET Pricing and
Slide 55: Despite Wing Price Volatility, Development Continues to Accelerate
DESPITE WING PRICE VOLATILITY, DEVELOPMENT CONTINUES TO ACCELERATE 220+ GLOBAL NET NEW RESTAURANTS 193 153 $3.22/lb 133 Meaningful 119 Bone-in Wing Deflation in 2022 0% 2018 2019 2020 2021 2022E 1 $1.63/lb JUMBO BONE-IN WINGS PRICE % INFLATION / (DEFLATION) current Minimizing Volatility Further Acce
Slide 56: Strategy to Take Greater Control of Our Supply Chain
EXECUTING A CLEARLY DEFINED STRATEGY TO TAKE GREATER CONTROL OF OUR SUPPLY CHAIN WHOLE BIRD COST PLUS WHOLE BIRD JOINT VENTURE PRICING PARTNER BUILD BUILD OUR OWN POULTRY COMPLEX POULTRY COMPLEX BUY ACQUISITION Committed To Maintaining Our Asset-lite Model INVESTOR DAY 2022 58
Slide 57: Strategy Will Deliver Predictable Food Costs for Brand Partners
…AND THIS STRATEGY WILL DELIVER PREDICTABLE FOOD COSTS FOR OUR BRAND PARTNERS INPUT/FEED GROW OUT PROCESSING END 23% 25% 52% PRODUCT $1.60 - $1.80 PRICE PER WHOLE BIRD LB Maintaining Best-in-Class Returns INVESTOR DAY 2022 59
Slide 58: Creating a Flywheel for Development
CREATING A FLYWHEEL FOR DEVELOPMENT CASH-ON-CASH RETURNS 2015 2021 Today • AUVs continue fueling growth for brand partners Domestic System AUV1 $1.1M $1.6M $1.6M • Low investment cost • Industry-leading returns driving less Investment Cost2 ~$370K ~ $415K ~ $415K than 2-year payback on investment Un
Slide 59: Top 10 Global Restaurant Brand
TOP 10 GLOBAL RESTAURANT BRAND SUSTAIN SSS GROWTH MAINTAIN BEST-IN-CLASS RETURNS ACCELERATE GROWTH Scale Brand Cost of Goods Master Development Awareness Mitigation Plan Data-Driven Global Expansion Menu Innovation Marketing Global Digital Leverage our Balance Fine Tune the Model Sheet Transformatio
Slide 60: Pipeline and Unit Economics Fueling Industry-Leading Development
STRENGTH OF PIPELINE AND UNIT ECONOMICS FUELING INDUSTRY-LEADING DEVELOPMENT 1 1 DOMESTIC DEVELOPMENT AGREEMENTS DOMESTIC RESTAURANTS 708 717 1,534 1,359 610 600 1,231 1,124 523 300 2018 2019 2020 2021 2018 2019 2020 2021 93% Of Restaurant Openings Driven By Existing Brand Partners 1. Values as of t
Slide 61: Market Planning and Playbook Outline Path to 4,000+ Restaurants
MARKET PLANNING AND PLAYBOOK CLEARLY OUTLINES OUR PATH TO 4,000+ RESTAURANTS MATCH BRAND DATA-DRIVEN MAXIMIZE PARTNERS TO MARKET BRAND EXECUTE GROWTH PLAYBOOK PLANNING AWARENESS OPPORTUNITIES INVESTOR DAY 2022 63
Slide 62: Existing Markets Demonstrate Power of Master Development Plans
EXISTING MARKETS DEMONSTRATE POWER OF OUR MASTER DEVELOPMENT PLANS LOS ANGELES DALLAS-FT. WORTH 2017 2021 2017 2021 1 RESTAURANT COUNT 124 185 104 130 2 5-YR SSS 43.3% 41.2% 3 BRAND AWARENESS LEVELS 1. As of the end of fiscal year. 2. For fiscal year 2017 thru 2021. 3. Based on YouGov Brand Health T
Slide 63: Technology Front and Center in New Restaurant Format
TECHNOLOGY FRONT AND CENTER IN NEW RESTAURANT FORMAT, CREATING OPTIONALITY FOR MARKET PLANS • 100% delivery + carryout mix • Fully-digitized payments • AI voice ordering • Innovative back-of-house design with KDS solution INVESTOR DAY 2022 65
Slide 64: Global Development Well-Positioned for Continued Acceleration
GLOBAL DEVELOPMENT WELL-POSITIONED FOR CONTINUED ACCELERATION 7,000+ GLOBAL RESTAURANT POTENTIAL DOMESTIC MARKET INTERNATIONAL MARKETS 1,588 restaurants 203 restaurants 1 1 4,000+ 3,000+ Restaurants Restaurants 1. As of March 26, 2022 INVESTOR DAY 2022 66
Slide 65: Nicolas Boudet, President of International
NICOLAS BOUDET President of International INVESTOR DAY 2022
Slide 66: International Business Emerging from a Position of Strength
OUR INTERNATIONAL BUSINESS IS EMERGING FROM A POSITION OF STRENGTH TOTAL TOTAL RESTAURANT SALES TO INVESTMENT Q1’22 SSS RESTAURANTS POTENTIAL RATIO MEXICO 107 200 26.8% 2:1 INDONESIA 50 120 3.3% 2:1 UNITED KINGDOM 18 200 - 250 33.1% 8:1 UNITED ARAB EMIRATES 15 25 - 50 14.8% 3:1 SINGAPORE 12 25 19.9%
Slide 67: Existing Markets Proved Resilient Through the Pandemic
EXISTING MARKETS PROVED TO BE RESILIENT THROUGH THE PANDEMIC SALES GROWTH BACK ON TRACK SUPPORTED BY STRONG TRANSACTIONS DIGITAL SALES MIX 24% 18% 40%+ 3-Yr CAGR 3-Yr CAGR 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 1. Results shown based on total sales & transactions in internationa
Slide 68: Confidence in Our Proven International Strategy
WE HAVE CONFIDENCE IN OUR PROVEN INTERNATIONAL STRATEGY PREMIUM QUALITY HALO OFF-PREMISE DINING High-quality positioning supporting a Product attributes support ever-growing premium price delivery/carryout FLAVOR EXPERTISE SIMPLE OPERATING MODEL "Flavor Experts" allows us to Simple ops and smaller f
Slide 69: U.K. Success Is the Blueprint for Global Expansion
U.K. SUCCESS IS THE BLUEPRINT FOR OUR GLOBAL EXPANSION Priced at parity with its competitive fast casual set Diverse asset mix High growth in delivery. Won Deliveroo’s Restaurant of the Year in 2021 200-250 restaurant potential Digital mix of 50%+ $2M+ average unit volume 22% restaurant EBITDA margi
Slide 70: U.K. Has Quickly Created Brand Love Fueled by Flavour
U.K. HAS QUICKLY CREATED BRAND LOVE FUELED BY FLAVOUR Cambridge Circus photo HIGH-END, MODERN ASSETS CREATING FLAVORS, VALUE, AND INNOVATION SOCIAL MEDIA ENGAGEMENT A DESTINATION BRAND LEADING TO STRONG TICKET CULTIVATING BRAND AWARENESS INVESTOR DAY 2022 72
Slide 71: International Business Is Super-Charged for Growth
OUR INTERNATIONAL BUSINESS IS SUPER-CHARGED FOR GROWTH TOTAL INTERNATIONAL RESTAURANTS INTERNATIONAL DEVELOPMENT AGREEMENTS1 15% 66% 3-Yr CAGR Increase 197 497 179 154 128 299 2018 2019 2020 2021 Q1 2021 Today 1. Current development agreements as of May 13, 2022. INVESTOR DAY 2022 74
Slide 72: Expanding North American Dominance Through Canada Launch
EXPANDING OUR NORTH AMERICAN DOMINANCE THROUGH CANADA MARKET LAUNCH Premium positioning Diverse asset mix – following U.K. blueprint Launching with multiple DSPs Leveraging U.S. tech stack 150 - 200 RESTAURANT POTENTIAL Well-capitalized partners with ownership in F&B sector INVESTOR DAY 2022 75
Slide 73: Entering Korea in 2023
ENTERING KOREA IN 2023, A VIBRANT AND INFLUENTIAL ASIAN MARKET 53 million people; high disposable income Diverse asset mix – following U.K. blueprint Strong off-premise consumer behavior with growing delivery business Tech-savvy consumers with one of the highest digital penetration in the world 200
Slide 74: Deployment of Our International Roadmap
RESOLUTE IN THE DEPLOYMENT OF OUR INTERNATIONAL ROADMAP BUILD OUT AND SUPPORT MEXICO U.K. FRANCE EXISTING MARKETS SINGAPORE INDONESIA UAE A CLEAR DEVELOP NEW AND 3-PRONGED SPAIN SAUDI ARABIA SO. KOREA CANADA TARGETED MARKETS APPROACH BELGIUM THAILAND HONG KONG TAIWAN BEGUN GROUNDWORK FOR NETHERLANDS
Slide 75: Prepared to Enter China When Timing Is Right
WE ARE PREPARED TO ENTER CHINA WHEN THE TIMING IS RIGHT RELEVANT BRAND-BUILDING OCCASIONS ASSETS Indexing strongly on group gatherings Full brand immersion with a and differentiated flavors mix of flagship for awareness, small box for scale RELEVANT PREMIUM MENU POSITIONING Our menu line-up is perce
Slide 76: Our International Growth Is Ramping Up
OUR INTERNATIONAL GROWTH IS RAMPING UP China 1,200+ Western Europe RESTAURANTS Middle East / Africa APAC Americas 2032+ 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 INVESTOR DAY 2022 79
Slide 77: Path to 3,000+ International Restaurants
PATH TO ACHIEVING 3,000+ INTERNATIONAL RESTAURANTS HAS MOMENTUM China Western 1,000 - Europe 1,500 425 - 625 restaurants restaurants Middle Americas1 East 275 - 325 100 - 150 restaurants restaurants Asia Pacific 500 - 725 restaurants 1. “Americas” excludes the U.S. INVESTOR DAY 2022 80
Slide 78: Marisa Carona, Chief Growth Officer
MARISA CARONA Chief Growth Officer INVESTOR DAY 2022
Slide 79: Executing Our Growth Plan in a Responsible Way
EXECUTING OUR GROWTH PLAN IN A RESPONSIBLE WAY DIVERSITY, WASTE EQUITY & COMMUNITY INCLUSION MANAGEMENT INVESTOR DAY 2022 82
Slide 80: We Are Proud of Our Diverse Team
WE ARE PROUD OF OUR DIVERSE TEAM DIVERSITY, 50% 69% EQUITY & Board Diversity1 INCLUSION 43% Senior Leadership Team Diversity1 Team Member Diversity1 60% VS Brand Partner 40% Diversity1 100% US Census Unconscious Bias Diversity Training Completion for our Team Members Source: Wingstop EEOC Report for
Slide 81: Minimizing Our Carbon Footprint as We Expand Globally
MINIMIZING OUR CARBON FOOTPRINT AS WE EXPAND GLOBALLY WASTE High-efficiency MANAGEMENT Equipment1 2M+ Water Bottles Recycled2 through our new uniform program LED Lighting 11M+ Gallons of Used Cooking Oil Recycled3 through our Grease Recycling Initiative 100% Wind-Powered Global Support Center 1. Kit
Slide 82: Providing a Positive Impact in Our Communities
PROVIDING A POSITIVE IMPACT IN OUR COMMUNITIES 2020 COMMUNITY HIGHLIGHTS More Than 1M MEALS $1M 1M MEALS provided through donated for donated Flavor for Good employee relief grants 2021 HIGHLIGHTS Wingstop Charities donated MORE THAN $1.1M1 80+ to community organizations Nonprofit & Non-profit Corpo
Slide 83: Michael Skipworth, President & CEO
MICHAEL SKIPWORTH President & Chief Executive Officer INVESTOR DAY 2022
Slide 84: Top 10 Global Restaurant Brand
TOP 10 GLOBAL RESTAURANT BRAND SUSTAIN SSS GROWTH MAINTAIN BEST-IN-CLASS RETURNS ACCELERATE GROWTH Scale Brand Cost of Goods Master Development Awareness Mitigation Plan Data-Driven Menu Innovation Global Expansion Marketing Global Digital Leverage our Balance Fine Tune the Model Sheet Transformatio
Slide 85: A Predictable Financial Model...
A PREDICTABLE FINANCIAL MODEL… MULTI-YEAR STRATEGY TO DISCIPLINED INVESTMENTS AND USE GROW TOPLINE SALES OF CASH System sales increased by 54% Strategic investments for next phase of since 2019 growth MAINTAINING BEST-IN-CLASS ASSET-LITE, STRONG & PREDICTABLE UNIT ECONOMICS FINANCIAL PERFORMANCE Sim
Slide 86: ...And Sustaining Growth Well into the Future
…AND SUSTAINING GROWTH WELL INTO THE FUTURE TOP 10 GLOBAL RESTAURANT BRAND SUSTAIN SAME-STORE SALES Next 3 – 5 Years Long-Term (5 Years+) GROWTH Mid-Single Digit Low-Single Digit Same-Store Sales Growth Same-Store Sales Growth MAINTAIN BEST-IN-CLASS RETURNS 10%+ Annual Unit Growth 10%+ Annual Unit G
Slide 87: Appendix
APPENDIX
Slide 88: Performance Highlights: Acceleration in Our Business
PERFORMANCE HIGHLIGHTS ACCELERATION IN OUR BUSINESS DOMESTIC SAME-STORE SALES GROWTH TOTAL UNITS ($ in millions) R 12% 5-year CAG h ked S S S Growt c year Sta 1,731 49.6% 5- 21.4% 1,385 1,538 1,133 1,252 179 197 998 128 154 11.1% 76 106 6.5% 8.0% 1,359 1,534 3.2% 2.6% 922 1,027 1,124 1,231 2016 2017
Slide 89: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION ($ in thousands) December 31, December 30, December 29, December 28, December 26, December 25, Fiscal Year Ended 2016 2017 2018 2019 2020 2021 Net income $ 13,769 $ 23,940 $ 21,719 $ 20,476 $ 23,306 $ 42,658 (+) Interest expense, net 4,396 5,131 10,123 17,136 16,782 14,984 (+