Wingstop UK is achieving average unit value (AUV) north of $2.5m (£2m), according to global CEO Michael Skipworth.
This is higher than the AUV in the wider Wingstop network, which is $1.9m (£1.5m) , and has allowed the UK business, Lemon Pepper Holdings, to accelerate growth and expand to more than 40 units.
Skipworth said the brand’s international business is “supercharged for growth”.
“There is tremendous excitement across the globe as consumers have the opportunity to experience our flavour for the first time,” he told analysts.
The international business is seeing same-store sales trends similar to the U.S. business, double digit growth stacked on top of double digit growth in the prior year and primarily driven by transactions.
New markets Canada, Puerto Rico and Korea are “following that U.K. playbook” and achieving record sales weeks.
“We believe our new markets are scaling awareness on a curve that draws parallel to the success we are experiencing in the U.K,” Skipworth said. “The strength we’re having in our global development and visibility into our pipeline gives us the confidence to increase our 2024 outlook to a range of 275 to 295 net new restaurants.”
Wingstop Inc will maintain direct relationships with its successful franchise in the UK, Skipworth said, citing the strong AUV metrics.
“There’s no need for us to dilute our economics on that. And so we’re looking to just be direct.
The CEO added: “We’re encouraged by how the brand is resonating around the globe. I wouldn’t say any of the geopolitical or any of the unrest that’s around the globe right now is impacting our progress or the level of interest we have from parties that are looking to grow with the brand.”
The company was reported Q1 numbers, with system-wide sales up 36.8% to $1.1bn.
Total revenue increased 34.1% to $145.8m.
Wingstop Inc opened 65 new stores in the fiscal first quarter 2024.
The brand had 305 international franchise restaurants open at end of period.
Digital sales increased to 68.3% of system-wide sales.
