Part I [Business](index=5&type=section&id=Item%201.%20Business) Wingstop is a highly franchised fast-casual chicken wing chain with over 1,950 global locations, aiming to be a Top 10 Global Restaurant Brand through growth and digital sales - Wingstop is the world's largest fast-casual chicken wings-focused restaurant chain, with **over 1,950 locations worldwide** as of year-end 2022[21](index=21&type=chunk) - The company operates on an asset-light, highly-franchised business model, with approximately **98% of its restaurants** owned and operated by independent franchisees[22](index=22&type=chunk) - Wingstop's vision is to become a **Top 10 Global Restaurant Brand**, targeting over **4,000 domestic and 3,000 international restaurants**[25](index=25&type=chunk) - Digital sales account for **over 60% of total sales**, supported by CRM and a proprietary digital platform[27](index=27&type=chunk) Domestic Restaurant Unit Economics (FY 2022) | Metric | Value (USD) | | :--- | :--- | | Average Unit Volume (AUV) | ~$1.6 million | | Average Estimated Initial Investment | ~$440,000 (excluding real estate) | | Target Year 2 Unlevered Cash-on-Cash Return | ~50%+ | - As of December 31, 2022, Wingstop had **238 international franchised restaurants** across eight countries[33](index=33&type=chunk) [Risk Factors](index=11&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including franchisee reliance, growth execution, food safety, supply chain disruptions, chicken wing price volatility, competition, and cybersecurity - Growth strategy is substantially dependent on new restaurant development by franchisees and their ability to secure financing, as Wingstop does not provide direct financing[63](index=63&type=chunk)[64](index=64&type=chunk) - A substantial portion of revenue comes from royalties from franchised restaurants (**98% of the system**), making performance reliant on franchisee operational success and financial stability[66](index=66&type=chunk) - The company is susceptible to volatility in food costs, especially for bone-in chicken wings, which have no established fixed-price markets, experiencing substantial inflation in 2021 and significant deflation in 2022[75](index=75&type=chunk) - All domestic restaurants are sourced through a single distributor, Performance Food Group (PFG), creating a dependency risk for the entire supply chain[83](index=83&type=chunk)[44](index=44&type=chunk) - Significant geographic concentration exists, with **57% of domestic restaurants** located in Texas, California, Illinois, and Florida, making the business susceptible to regional economic and environmental events[108](index=108&type=chunk) - The company faces cybersecurity risks due to reliance on technology for digital sales, payment processing, and data storage, where a breach could lead to data loss, operational disruption, and reputational damage[86](index=86&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk) - The terms of the company's securitized debt include restrictive covenants, such as maintaining a specified debt service coverage ratio, where a breach could result in a rapid amortization event or default[128](index=128&type=chunk)[129](index=129&type=chunk) [Unresolved Staff Comments](index=25&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - There are no unresolved staff comments[141](index=141&type=chunk) [Properties](index=26&type=section&id=Item%202.%20Properties) Wingstop owns its 78,000 sq ft corporate headquarters in Addison, Texas, with company-owned restaurants in leased 1,700 sq ft facilities - The company owns its corporate headquarters and global support center, a **78,000 square foot office building** in Addison, Texas[142](index=142&type=chunk) - All company-owned restaurants are located in leased facilities, with a typical restaurant occupying approximately **1,700 square feet**[143](index=143&type=chunk)[144](index=144&type=chunk) [Legal Proceedings](index=26&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various ordinary course legal actions, none expected to materially affect its business or financial condition - The company is not party to any pending legal proceedings expected to have a material adverse effect on its business, financial condition, or results of operations[145](index=145&type=chunk) [Mine Safety Disclosures](index=26&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[146](index=146&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=27&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Wingstop's common stock trades on NASDAQ under 'WING', with no Q4 2022 equity repurchases and a $0.19 per share quarterly dividend declared in February 2023 - The company's common stock trades on the NASDAQ Global Select Market under the symbol **'WING'**[149](index=149&type=chunk) - No equity securities were repurchased during the fourth quarter of the fiscal year ended December 31, 2022[151](index=151&type=chunk) - On February 21, 2023, the board of directors declared a quarterly dividend of **$0.19 per share** of common stock, payable on March 31, 2023[154](index=154&type=chunk) [Reserved](index=29&type=section&id=Item%206.%20Reserved) This section is intentionally left blank [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In FY2022, Wingstop achieved significant growth with **$2.7 billion** system-wide sales and **$357.5 million** total revenue, driven by new openings, same-store sales, and lower chicken wing costs Fiscal Year 2022 Performance Highlights | Metric | FY 2022 (USD) | Change vs. FY 2021 (%) | | :--- | :--- | :--- | | System-wide Sales | $2.7 billion | +16.8% | | Total Revenue | $357.5 million | +26.6% | | Net Income | $52.9 million | +24.1% | | Adjusted EBITDA | $108.8 million | +23.1% | | Domestic Same Store Sales Growth | 3.4% | - | | System-wide Restaurant Count | 1,959 | +13.2% (228 net openings) | | Domestic AUV | $1.6 million | - | Restaurant Count Growth (2021-2022) | Restaurant Type | End of 2021 (Count) | End of 2022 (Count) | | :--- | :--- | :--- | | Domestic Franchised | 1,498 | 1,678 | | Domestic Company-Owned | 36 | 43 | | International Franchised | 197 | 238 | | **Total System-wide** | **1,731** | **1,959** | - The increase in total revenue was driven by **221 net franchise restaurant openings**, **3.4% domestic same-store sales growth**, and an increase in the national advertising fund contribution rate from **4% to 5%**[179](index=179&type=chunk)[180](index=180&type=chunk) - Cost of sales as a percentage of company-owned restaurant sales decreased from **81.7% to 79.3%**, primarily due to a **26.9% decrease** in the cost of bone-in chicken wings[182](index=182&type=chunk)[184](index=184&type=chunk) - Net cash from operating activities increased to **$76.2 million** in FY2022 from **$48.9 million** in FY2021, driven by higher operating income and changes in Ad Fund cash flows[196](index=196&type=chunk)[197](index=197&type=chunk) - In March 2022, the company completed a securitized financing transaction, issuing **$250 million** in new notes and establishing a new **$200 million** variable funding facility, with proceeds used for a special dividend of **$119.5 million**, fees, and general corporate purposes[199](index=199&type=chunk)[200](index=200&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are commodity price fluctuations, especially for bone-in chicken wings, and interest rate changes, though its debt is predominantly fixed-rate - The company is exposed to commodity price risk, especially for bone-in chicken wings, which have no established fixed-price markets; a hypothetical **10% increase** in wing costs in FY2022 would have increased cost of sales by approximately **$1.5 million**[208](index=208&type=chunk) - Interest rate risk is largely mitigated by a predominantly fixed-rate debt structure; however, the company is exposed to interest rate increases on its **$200 million variable funding note facility**, which had no outstanding borrowings as of December 31, 2022[209](index=209&type=chunk) [Financial Statements and Supplementary Data](index=41&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Wingstop's audited consolidated financial statements for FY2022, including Balance Sheets, Income, Stockholders' Deficit, and Cash Flow Statements, with KPMG LLP's audit report [Report of Independent Registered Public Accounting Firm](index=42&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) KPMG LLP issued unqualified opinions on Wingstop's FY2022 consolidated financial statements and internal controls, noting a critical audit matter for franchisee-reported revenue - KPMG LLP issued an unqualified opinion on the consolidated financial statements and the effectiveness of internal control over financial reporting as of December 31, 2022[221](index=221&type=chunk)[256](index=256&type=chunk) - A critical audit matter was identified regarding the sufficiency of audit evidence for royalty revenue and advertising fees, as this revenue is derived from sales data reported by franchisees[259](index=259&type=chunk)[261](index=261&type=chunk) [Consolidated Balance Sheets](index=54&type=section&id=Consolidated%20Balance%20Sheets) As of December 31, 2022, Wingstop's total assets increased to **$424.2 million**, liabilities to **$815.1 million** due to debt, resulting in a **$390.9 million** stockholders' deficit Consolidated Balance Sheet Data (in thousands USD) | Account | Dec 31, 2022 | Dec 25, 2021 | | :--- | :--- | :--- | | Cash and cash equivalents | $184,496 | $48,583 | | Total Assets | $424,190 | $249,203 | | Long-term debt, net | $706,846 | $469,394 | | Total Liabilities | $815,051 | $558,728 | | Total stockholders' deficit | $(390,861) | $(309,525) | [Consolidated Statements of Comprehensive Income](index=55&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) For FY2022, Wingstop's total revenue grew to **$357.5 million**, operating income increased to **$91.9 million**, and net income reached **$52.9 million**, or **$1.77 per diluted share** Consolidated Income Statement Highlights (in thousands USD, except per share data) | Metric | FY 2022 (USD) | FY 2021 (USD) | | :--- | :--- | :--- | | Total Revenue | $357,521 | $282,502 | | Operating Income | $91,933 | $73,756 | | Net Income | $52,947 | $42,658 | | Diluted Earnings Per Share | $1.77 | $1.42 | [Consolidated Statements of Cash Flows](index=57&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In FY2022, net cash from operating activities was **$76.2 million**, investing used **$28.7 million**, and financing provided **$103.3 million**, increasing cash and equivalents by **$150.8 million** Summary of Cash Flows (in thousands USD) | Activity | FY 2022 | FY 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $76,238 | $48,878 | | Net cash used in investing activities | $(28,683) | $(29,853) | | Net cash provided by (used in) financing activities | $103,254 | $(23,389) | | **Net change in cash, cash equivalents and restricted cash** | **$150,809** | **$(4,364)** | [Notes to Consolidated Financial Statements](index=58&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies and financial data, including revenue disaggregation, securitized debt, lease obligations, stock-based compensation, the **$250 million** new debt issuance, and **$4.00 per share** special dividend - The company's fiscal year 2022 consisted of **53 weeks**, while 2021 and 2020 each consisted of **52 weeks**[278](index=278&type=chunk) - In fiscal year 2022, the company paid a special dividend of **$4.00 per share** (**$119.5 million total**) and regular dividends totaling **$0.72 per share** (**$21.5 million total**)[310](index=310&type=chunk)[312](index=312&type=chunk) - On March 9, 2022, the company issued **$250 million** of Series 2022-1 3.734% Fixed Rate Senior Secured Notes, Class A-2, and entered into a new **$200 million** variable funding note facility[330](index=330&type=chunk) - The company acquired **3 restaurants** from franchisees for a total purchase price of **$7.8 million** during fiscal year 2022[357](index=357&type=chunk)[358](index=358&type=chunk) Disaggregation of Revenue (in thousands USD) | Revenue Source | FY 2022 | FY 2021 | | :--- | :--- | :--- | | Royalty revenue | $142,900 | $119,396 | | Advertising fees | $119,011 | $81,529 | | Franchise fees | $4,357 | $4,020 | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=41&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on any matter of accounting principles, practices, or financial statement disclosure - None[211](index=211&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls and internal control over financial reporting were effective as of December 31, 2022, with KPMG LLP issuing an unqualified attestation report - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2022[213](index=213&type=chunk) - Management assessed internal control over financial reporting as effective as of December 31, 2022, based on the COSO framework (2013)[217](index=217&type=chunk) - KPMG LLP, the independent registered public accounting firm, issued an unqualified attestation report on the effectiveness of the company's internal control over financial reporting[218](index=218&type=chunk)[221](index=221&type=chunk) [Other Information](index=43&type=section&id=Item%209B.%20Other%20Information) There is no other information to report in this section - None[228](index=228&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=43&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[230](index=230&type=chunk) Part III [Directors, Executive Compensation, Security Ownership, and Other Matters](index=44&type=section&id=Item%2010%2C%2011%2C%2012%2C%2013%2C%2014) Information for Items 10-14, covering directors, executive compensation, security ownership, related transactions, and accountant fees, is incorporated by reference from the 2023 Proxy Statement - Information for Item 10 (Directors, Executive Officers and Corporate Governance) will be included in the 2023 Proxy Statement and is incorporated by reference[233](index=233&type=chunk) - Information for Item 11 (Executive Compensation) will be included in the 2023 Proxy Statement and is incorporated by reference[234](index=234&type=chunk) - Information for Items 12, 13, and 14 will be included in the 2023 Proxy Statement and is incorporated by reference[235](index=235&type=chunk)[236](index=236&type=chunk)[237](index=237&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=45&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists exhibits filed with or incorporated by reference into the Form 10-K, including governance documents, debt agreements, and compensation plans, with no financial statement schedules - This section provides a list of exhibits filed as part of the report, including the Amended and Restated Certificate of Incorporation, debt agreements, and various compensation plans[240](index=240&type=chunk)[242](index=242&type=chunk) [Form 10-K Summary](index=47&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company did not provide a Form 10-K summary - None[245](index=245&type=chunk)

Wingstop, Inc. (NASDAQ:WING) Q3 2022 Earnings Conference Call October 26, 2022 10:00 AM ET Company Participants Susana Arevalo - Vice President of FP&A and Investor Relations Michael Skipworth - President and Chief Executive Officer Alex Kaleida - Senior Vice President and Chief Financial Officer Conference Call Participants John Glass - Morgan Stanley David Tarantino - Baird Jeffrey Bernstein - Barclays Jared Garber - Goldman Sachs Jon Tower - Citi Andrew Charles - Cowen Jeff Farmer - Gordon Haskett Andy B ...

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Wingstop Inc. (NASDAQ:WING) Q1 2022 Earnings Conference Call May 4, 2022 10:00 AM ET Company Participants Susana Arevalo - Susana Arevalo, Vice President of FP&A and Investor Relations Michael Skipworth - President and Chief Executive Officer Alex Kaleida - Senior Vice President and Chief Financial Officer Conference Call Participants David Tarantino - Baird Jeffrey Bernstein - Barclays Andrew Charles - Cowen and Company John Glass - Morgan Stanley Andy Barish - Jefferies Chris OÂ'Cull - Stifel Jon Tower - ...

Wingstop Inc. (NASDAQ:WING) Q4 2021 Earnings Conference Call February 16, 2022 10:00 AM ET Company Participants Susana Arevalo - Investor Relations Charlie Morrison - Chairman and Chief Executive Officer Alex Kaleida - Senior Vice President and Chief Financial Officer Conference Call Participants David Tarantino - Baird John Glass - Morgan Stanley Jeffrey Bernstein - Barclays Nicole Miller - Piper Sandler Jeff Farmer - Gordon Haskett Andrew Charles - Cowen James Rutherford - Stephens, Inc. Chris O'Cull - S ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark one) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 25, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File No. 001-37425 WINGSTOP INC. (Exact name of registrant as specified in its charter) 15505 Wright Brothers Drive Addison, Texas 75001 ...

Wingstop Inc. (NASDAQ:WING) Q3 2021 Earnings Conference Call November 3, 2021 10:00 AM ET Company Participants Alex Kaleida - Senior Vice President & Chief Financial Officer Charlie Morrison - Chairman & Chief Executive Officer Michael Skipworth - President & Chief Operation Officer Conference Call Participants Andrew Charles - Cowen David Tarantino - Baird Jeffrey Bernstein - Barclays John Glass - Morgan Stanley Andy Barish - Jefferies Jeff Farmer - Gordon Haskett Michael Tamas - Oppenheimer Chris Carril - ...

Wingstop, Inc. (NASDAQ:WING) Q2 2021 Earnings Conference Call July 28, 2021 10:00 AM ET Company Participants Charles Morrison - Chairman, President and Chief Executive Officer Michael Skipworth - Executive Vice President and Chief Financial Officer Conference Call Participants David Tarantino - Baird Jeffrey Bernstein - Barclays Andy Barish - Jefferies John Glass - Morgan Stanley Nicole Miller - Piper Sandler Jon Tower - Wells Fargo Andrew Charles - Cowen Jeff Farmer - Gordon Haskett Andrew Strelzik - BMO M ...

Wingstop, Inc. (NASDAQ:WING) Q1 2021 Earnings Conference Call April 28, 2021 10:00 AM ET Company Participants Michael Skipworth - EVP & CFO Charles Morrison - Chairman, President & CEO Conference Call Participants David Tarantino - Robert W. Baird & Co. Andrew Barish - Jefferies Andrew Charles - Cowen and Company Michael Tamas - Oppenheimer Brian Harbour - Morgan Stanley Patrick Johnson - Stifel, Nicolaus & Company Michael Rothstein - Goldman Sachs Group Joshua Long - Piper Sandler & Co. Jake Bartlett - Tru ...

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