Wingstop is not seeing the same consumer pullback that fast food chains like McDonald’s and Starbucks have experienced this year.
Part of that success is because its traditional offering, chicken wings, is popular with watching live sports.
“If you’re thinking about someone who has to make a decision on where to trim spending, the likelihood that they’re going to give up something that is associated with your social event is much lower,” said Stephens equity research analyst Jim Salera.
Wingstop CEO Michael Skipworth told CNBC that the company has leaned into advertising with live sports.
“We have a huge opportunity to close the gap to brand awareness and other national brands, and we’re continuing to chip away at that,” said Skipworth.
The company has also managed to keep price increases below those of its fast-food competitors. Since 2019, Wingstop has only raised its prices by about 15%, while its quick-service peers fell in the 30% to 40% range, according to an analyst note published by BTIG on July 31.
“There is a lot less discipline relative to what Wingstop has done in recent years,” said TD Cowen senior research analyst Andrew Charles.
In its fiscal fourth quarter of 2024, the company saw its domestic same-store sales increase 28.7%.
And its stock is on the rise. Wingstop went public in 2015 at about $30 per share. It’s up more than 50% year-to-date and now trades at around $400 per share.
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