Release Date: February 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you comment on the comps outlook for 2025 and the long-term expectations? A: Michael Skipworth, President and CEO, explained that the low to mid-single-digit comps outlook for 2025 is part of a broader three- to five-year target of mid-single digits. This target is meant to guide long-term expectations, and while Wingstop has outperformed in recent years, the target serves as an average over time.
Q: How do you see the comp trajectory for 2025, particularly for Q1? A: Michael Skipworth noted that while the restaurant industry has seen declining traffic, Wingstop has gained market share. The company expects the comp trajectory to be influenced by the laps of previous high transaction growth. Alex Kaleida, CFO, added that Q1 might see some noise due to unseasonal weather and fires in California, but overall, the pacing will follow the laps.
Q: How do you measure your value scores, and how do you communicate value to consumers? A: Michael Skipworth emphasized that value is more than just a price point; it's about value for money paired with quality. Wingstop has seen improvements in brand health metrics, exiting 2024 at record highs. The company focuses on delivering quality and value rather than competing with low-price value meals.
Q: Is there any impact of accelerating unit growth on same-store sales? A: Michael Skipworth stated that there is no significant impact from unit growth on same-store sales. The domestic business has a lot of white space for expansion, and new restaurants are showing strong productivity, which excites both the company and its brand partners.
Q: Can you share insights on the new kitchen operating system and its deployment? A: Michael Skipworth described the new AI-enabled kitchen operating platform as a game-changer for Wingstop. It is designed to enhance kitchen operations, improve team member productivity, and manage guest expectations. The system is expected to be rolled out within the next 12 months and is anticipated to unlock unmet demand and increase frequency.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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