Wingstop(US:WING)2025-02-19 19:19Financial Data and Key Metrics Changes - For fiscal 2024, domestic same-store sales grew by 19.9%, translating to a two-year stacked comp of 38% [11] - System-wide sales increased by 36.8% to $4.8 billion, with adjusted EBITDA rising 44.8% to $212 million [11][50] - In Q4, system-wide sales increased 27.6% to $1.2 billion, with same-store sales growing by 10.1% [44][45] - Adjusted EBITDA for Q4 was $56.3 million, a 44.2% increase year-over-year [50] Business Line Data and Key Metrics Changes - The company opened a record 349 net new restaurants in 2024, achieving a unit growth of 15.8% [11][36] - Digital sales mix increased to 70%, indicating a strong shift towards online transactions [12] - Company-owned restaurant sales increased by $3.8 million in Q4, driven by new openings and a 3.8% increase in same-store sales [45] Market Data and Key Metrics Changes - The company ended 2024 with 359 international locations and added its eleventh market in Q4 [38] - The international expansion strategy has shown strong interest, particularly in the UK market, with a recent acquisition valued at over $500 million [38] Company Strategy and Development Direction - The company aims to grow average unit volumes (AUVs) to $3 million and scale global unit count to over 10,000 restaurants [16] - Strategies include scaling brand awareness, driving menu innovation, expanding delivery channels, and leveraging data-driven marketing [19] - A new AI-enabled kitchen operating platform is being developed to improve kitchen operations and reduce service times [30][123] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the restaurant industry but emphasized the company's ability to gain market share [68] - The company is confident in achieving low to mid-single-digit same-store sales growth for 2025, despite tough comparisons from previous years [56][78] - Management highlighted the strength of the brand's digital platform and its impact on customer engagement and retention [85] Other Important Information - The company raised over $2 million for St. Jude's Children's Research Hospital during Q4 [40] - A quarterly dividend of $0.27 per share was declared, totaling approximately $7.7 million [55] Q&A Session Summary Question: What is the long-term outlook for same-store sales growth? - Management indicated that the long-term target remains mid-single digits, which serves as a basis for modeling expectations [63][64] Question: How do you see the comp trajectory for 2025? - Management expects the comp trajectory to be influenced by tough comparisons from previous years, particularly in Q1 [78] Question: Can you provide insights on the CRM efforts and database growth? - The company reported a record growth in its digital guest database, which has surpassed 50 million users, leading to increased frequency and satisfaction [85] Question: How does the company measure value in a competitive environment? - Management emphasized that value is about quality and value for money, not just price, and noted improvements in brand health metrics [92][93] Question: What is the expected unit growth for 2025? - The company anticipates a unit growth rate of 14% to 15% for 2025, supported by a strong development pipeline [96] Question: How does the company plan to balance unit growth and same-store sales? - Management stated that they do not see unit growth negatively impacting same-store sales, as there is significant market opportunity [112] Question: What factors will influence pricing strategy in 2025? - The company plans to maintain a disciplined pricing strategy, anticipating a 1% to 2% increase, while monitoring consumer health [106]