What began as a tiny buffalo chicken joint in Garland, Texas, back in 1994 has now spread its wings—literally—across the nation, with 2,352 locations and counting. And the secret behind this growth is Chicken… with a lot of sauce. 

Wingstop has mastered the art of delivering that simple, universal joy: that wings make everything better, especially when you’re huddled around the TV with friends, cheering on your favorite team. But at a time where industry giants like Starbucks and McDonald's face consumer pullbacks, I had to look into how Wingstop became one of the hottest chains in the country.

Since Wingstop went public in 2015, its stock has been on an absolute tear, soaring an incredible 1,135%. In just the last five years, it’s shot up 262%. And if you think that’s impressive, just look at the past year—it's more than doubled, jumping 133%. In Q2 2024, their same-store sales jumped 28.7%, which is a significant achievement in the fast-food industry.

Honestly, Wingstop’s growth is nothing short of remarkable in the restaurant industry. Even Chipotle, with its explosive growth in the 2000s, can’t quite match what Wingstop has achieved. And what sets Wingstop apart from other restaurants is how quickly it’s scaled to over 2,000 stores.

So, how did Wingstop carve out its place in the fast-food scene so quickly? For one, their main offering—chicken wings—fits perfectly with sports culture. According to Jim Salera from Stephens Equity Research, “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.” In simple terms, wings and football go hand in hand.

That’s where Wingstop’s CEO, Michael Skipworth has been focused on increasing brand awareness. He said that the company sees a big opportunity to catch up with other national brands. Their targeted advertising during live sports has been a key part of that success.

In fact, earlier this year the brand made headlines when Milwaukee Bucks player Giannis Antetokounmpo pulled out his phone to scan the QR code for a free Wingstop promo during a game against the New Orleans Pelicans. A month later, he posted on his social media with the hashtag #WingstopPartner.

And let’s not forget the rapper Rick Ross, who has become a major player in Wingstop’s franchise business. From one location near Memphis, he’s expanded to nearly 30, turning his investment into what he says is about $40 million a year.

(Source: Wingstop)

Another factor in Wingstop’s rise is their ability to put a lid on pricing. Since 2019, they’ve only increased prices by about 15%. Compare that to competitors, who’ve hiked prices by 30-40%, and you can see why Wingstop stands out. They’ve kept their prices in check while other competitors keep pushing the envelope.

We all remember the chicken sandwich wars that took off right before the pandemic. As Chick-fil-a and Popeye’s shuffled for a share of the market, Wingstop eventually got in on the game. In fact, Wingstop has seen an increase in new guests visiting its locations ever since their chicken sandwich was introduced in June of 2022. In fact, the company reported same store sales increased 28.7% in the 2nd quarter of 2024. By the way, Wingstop has experienced same store sales growth for an incredible 20 years straight. 

Looking ahead, Wingstop has big plans. They aim to triple their U.S. presence and are targeting an Average Unit Volume (AUV) of $3 million. If their past performance is any indicator, they’re on track to hit these goals sooner rather than later.

So, while other chains are hitting rough patches, Wingstop is absolutely crushing it, proving that their wings-and-sports combo is a recipe for success. Investors are paying attention, and wing lovers can’t get enough. One thing’s for sure, Wingstop's hot streak doesn’t look like it’s cooling off anytime soon.

Stocks.News holds positions in Wingstop, McDonalds, Starbucks, and Chipotle.