AGB 2022.4 - Wingstop (WING)

Best in Class Growth + Unit Economics

Subscribe to AGB - One analysis of a good business every three weeks.

Wingstop

It’s obvious that Wingstop models many facets of its business after one of the best restaurant franchise businesses, Domino’s (you can read our write-up from 2020 here). With the small size of the restaurants, low start-up costs, best-in-class unit economics, and the heavy investments into the company’s digital strategy, Wingstop has followed much of the Domino’s playbook. Just keep that in mind as we analyze the nuances of the business.

And yes, the valuation of the stock is high. Just a friendly reminder that we generally don't make stock recommendations or comment on valuation.

Wingstop is the leading franchiser of fast casual chicken wing restaurants in the U.S. The company started as a single restaurant in Texas in 1994 and quickly expanded via franchising just three years later. Now, with over 1,700 locations, Wingstop restaurants can be found in 44 states with the highest concentration in Texas, Californ…