Article
1 on 1 with Wingstop CEO: Why IPO was the way to go
While going public seems like a trendy move for fast casuals these days, CEO Charlie Morrison didn’t take the decision lightly when deciding to take Wingstop public earlier this year
October 1, 2015 by Cherryh Cansler — Editor, FastCasual.com
It’s been a solid year of growth and success for Wingstop, which went public in June, as it celebrates the opening of its 800th restaurant unit this month and will end the year with a total of 120 new restaurants. With chicken wing season — aka football season — in full swing, that growth should only pick up, said Charlie Morrison, CEO of Wingstop.
"We sold millions and millions of wings for the Super Bowl earlier this year," Morrison said.
In fact, on Super Bowl Sunday, the chain sold over 8 million wings and plans to surpass the goal for the 2016 big game.
"If you look at last year’s numbers and if you add those 120 new stores (opening in 2015) and factor in that we are seeing same-stores sales growth at 6 percent, that is going to be well over 8 million for this next Super Bowl," he said.
Finding the flavor sweet spot
Wingstop opened in 1994 with nine flavors and now has 11. The fact the menu has only made two additions in over 20 years is a testament to how seriously the chain takes its wings. Although Wingstop rolls out about two LTO flavors each year, menu permanence is reserved only for the most cravable flavors, Morrison said. Mango Habanero, which hit the menu last year as a LTO, is only the second flavor to be added as a permanent item. (The other was the Louisiana Rub created four years ago). When the Mango Habanero LTO ran out, customers took to Twitter and Facebook, demanding its return.
"When we tried to take it away, customers voiced (so much) anger and frustration that we put it on the menu," said Morrison, describing why the chain decided to bring back Mango Habanero.
Finding the flavor sweet spot isn’t easy, as Morrison said flavors must meet the demand for heat but also offer an interesting mix of savory and sweet. The chain’s current LTO, Spicy Korean Q, is a perfect example, he said.
"(Creating flavors) is complex, which is good," he said. "We spend a lot of time in ‘flavor development.’ It’s the best part of my job."
Going public
While going public seems like a trendy move for fast casuals these days, Morrison said he didn’t take the decision lightly.
"Our growth story felt like it was in a positon to be public," he said. "For investors, we had the best of both worlds, the growth characteristics (associated) with mostly company owned (businesses) but we have the cash flow characteristics of a franchised-oriented company. The market has rewarded those types of companies, and we met both (critierias.)"
It's obvious looking at the numbers that Morrison’s decision is paying off.
"It’s been great; the stock has performed nicely," he said. "We are a brand positioned for growth."
The Wingstop story is very simple and clear, said Morrison, as is his goal of eventually operating 2,500 domestic units.
"We are well on our way to achieving that big goal and are internationally positioned to grow," he said.
Wingstop is already open in Central Mexico, North Africa and Southeast Asia.
About Cherryh Cansler
