Investor Presentation JANUARY 2016
FORWARD-LOOKING STATEMENTS 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. Forward-looking statements give Wingstop Inc.’s (the “Company”) current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipates,” “believes,” “continues,” “estimates,” “expects,” “goal,” “objectives” “intends,” “may,” “opportunity,” “plans,” “potential,” “near-term,” “long-term,” “projections,” “assumptions,” “projects,” “guidance,” “forecasts,” “outlook,” “target,” “trends,” “should,” “could,” “would,” “will” and similar expressions and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. The forward-looking statements contained in this presentation are based on assumptions that the Company has made in light of its industry experience and perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. As you read and consider this presentation, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (many of which are beyond our control) and assumptions. Although the Company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect its actual operating and financial performance and cause its performance to differ materially from the performance anticipated in the forward-looking statements. The Company believes these factors include, but are not limited to, those described under the sections “Risk Factors” in the prospectus for the Company’s initial public offering and in its other filings with the SEC, which can be found at the SEC’s website www.sec.gov. Further, the Company has not yet completed closing procedures for fiscal fourth quarter or full year 2015, and our independent registered public accounting firm has not yet reviewed or audited the results. Accordingly, these preliminary results are subject to change pending finalization, and actual results could differ materially as we finalize such results. Should one or more of these risks or uncertainties materialize, or should any of these assumptions prove incorrect, the Company’s actual operating and financial performance may vary in material respects from the performance projected in these forward-looking statements. Any forward-looking statement made by the Company in this presentation speaks only as of the date on which it is made. Factors or events that could cause the Company’s actual operating and financial performance to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. Non-GAAP Financial Measures This presentation contains certain non-GAAP financial measures. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the statements of income, balance sheets or statements of cash flow of the company. The Company has provided reconciliations of each non-GAAP financial measure presented to the most directly comparable GAAP measure in the Appendix to this presentation. You should not consider it in isolation, or as a substitute for analysis of results as reported under GAAP. Our calculation of Adjusted EBITDA may not be comparable to that reported by other companies. For additional information about our non-GAAP financial measures, see our filings with the Securities and Exchange Commission. 1
A CATEGORY OF ONE A CATEGORY OF ONE
WHAT MAKES WINGSTOP UNIQUE? EFFICIENT OPERATING MODEL SIMPLE CONCEPT • Pioneered Wings as center of the plate • $1.1M Average Unit Volume • Fast Casual; 98% franchised • 35-40% Year 2 Cash-on-cash return • 11 Flavors spanning spicy, savory, sweet • 75% Take-Out COVETED CONSUMER TECH FORWARD • 15% of sales from online in Q4 2015 • 49% of guests are Millennials (1) • 53% female skew; strong family appeal (2) • Social at the core; engagement over 30% (3) • Digital-first advertising strategy with high ROI • Best in class social sentiment Sources: (1) MRI Data (2) Burke Research 3 (3) Forbes, November 2014
NO DIRECT NATIONAL COMPETITORS Fast Casual, National Footprint & Focused Menu Sets Wingstop Apart Bar Centric Pizza Delivery QSR Chicken Small Regional 4
2015 – ANOTHER TERRIFIC YEAR! INSERT NEW PIC 845 Locations 133 New Openings (Net) 7.9% Domestic SSS Growth 39 states 19% Unit Growth Rate 7 countries 12 Consecutive Years of SSS Growth 5
INDUSTRY LEADING SSS 2012 – 2015 Q3 YTD Stacked Same Store Sales % 2015 Q3 YTD 2014 2013 2012 Cumulative SSS (3) (6) (1) (2) (3) (3) (1) (2) (1) (4) (1) (3) (5) Source: Company filings Notes: (1) Domestic system-wide (2) Global company-owned (3) Domestic company-owned (4) Franchised (5) Dunkin U.S. segment only (6) System-wide 6
7 Confidential Information - Do Not Distribute
Serve The World Flavor To • Intensely loyal fan base We strive to deliver on our commitments to our • Best in class franchisee returns guests, team members, • High growth, asset light model; franchisees & best of both worlds for investors shareholders. • 59 int’l locations in 6 countries, Our brand knows no and we’re just getting started boundaries due to our • Portable concept; <1% domestic unique product, closure rate in 2015 complex flavors and commitment to • Ubiquitous flavor profile works quality. just about everywhere • Always cooked to order • The Craft, the Scratch made sides and dips Crave and • Hand-cut seasoned fries the Culture. • Menu appeal for individuals, groups, families and events 8
COVETED GUEST BASE MILLENNIALS • 18-24 year old Millennial males • African American and Hispanic skew • Group-centered occasions FAMILIES • 24-34 year old Millennial females • Hispanic mom skew • Orders for the whole family FLAVOR CRAVERS • Broad, loyal and diverse guest base attracted by unique flavor experience, product quality, brand personality and convivial nature of eating wings 9
PASSIONATE & ENGAGED FANS Engagement Ratio – % 69% of positive social media Engagement Ratio: A weighted composite of the total number of (1) engagements (likes, comments, comments are about the CRAVE! favorites, retweets) that followers have with a brand relative to total engagements Source: Followers—MM (1) Infegy McDonald’s KFC Pizza Hut Applebee’s Burger King Starbucks Coffee Subway Domino’s Wendy’s Dunkin’ Donuts 7-Eleven Buffalo Taco Bell Dairy Queen Olive Garden Wild Wings Outback Wingstop Baskin-Robbins Chick-fil-A Steakhouse Krispy Kreme Morton’s Hooters Red Lobster Whataburger Hard Rock Steakhouse Source: Forbes, November 2014 10
FUELING DEMAND THROUGH TECHNOLOGY Poised for Online % of Sales Average Ticket Continued Growth ~ 15% • Doubled Sales Mix ~ $20 in 2015 ~ $16 • Millennial ~ 3-6% ~ 1-3% customer base • Simple menu (1) (1) All Orders Online QSR Fast Casual Wingstop In-Restaurant Online Ordering • 75% Take-Out Conversion Rate (2) App Ratings (3) • 60% of orders still 29% come in over the phone 3.0 4.5 10% • Creates 4.5 efficiencies at 23 24 store level Food & Beverage Wingstop 4.5 4.5 Industry Sources: (1) Olo (2) MarketingSherpa Ecommerce Benchmark Study 2014 11 (3) App Store Current Versions Jan 5, 2016
AMPLIFIED BY HIGH ROI DIGITAL-FIRST MARKETING APPROACH Illustrative Ad Spend Growth (1) Scaling to National Media Current Potential for the Future • 13 advertising cooperatives and growing • Illustrative National Ad Budget Future potential to expand into traditional media and national sponsorships • 1000 restaurants in US is target for converting to national • Transitioning first through national digital buys 23 24 Local National Note: 12 (1) Current reflects markets that have shared comprehensive media plans with Wingstop
Recommend
More recommend
