Wingstop Inc. (NASDAQ:WING) Q2 2019 Earnings Conference Call - Final Transcript

Aug 01, 2019 • 10:00 am ET

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Wingstop Inc. (NASDAQ:WING) Q2 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, and welcome to the Wingstop Second Quarter 2019 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Michael Skipworth, CFO of Wingstop. Please go ahead.

Executive
Michael J. Skipworth

Thank you, and welcome. Everyone should have access to our fiscal second quarter 2019 earnings release. A copy is posted under the Investor Relations tab on our website at wingstop.com.

Our discussion today will include forward-looking statements. These forward-looking statements are not guarantees of future performance and, therefore, you should not place undue reliance on them. These statements are also subject to numerous risk and uncertainties that could cause our actual results to differ materially from what we expect. Our recent SEC filings contain a detailed discussion of the risks that could affect our future operating results and financial condition.

We also use certain non-GAAP financial measures that we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for the results prepared in accordance with GAAP. Reconciliations to comparable GAAP measures are contained in our earnings release.

With that, I would like to turn the call over to Charlie.

Executive
Charles R. Morrison

Thank you, Michael, and thank you all for joining us this morning. July marked the 25th anniversary for Wingstop; 25 years of leading industry growth, serving the world flavor and providing our franchisees with one of the best unit economic models in the industry. And to add excitement to this milestone, we're very proud to report another strong quarter of growth highlighted by domestic same-store sales growth of 12.8%.

We ended the second quarter with over 1,300 restaurants in the Wingstop system. These results and the success of the Wingstop brand would not happen if it were not for the hard work and investments of our franchisees, whom we affectionately refer to as our brand partners.

As we look ahead to the second half of 2019 and beyond, our long-term strategy remains unchanged, anchored by our three main growth pillars; sustaining same-store sales growth via growing brand awareness and innovation, maintaining best-in-class unit economics for our franchisees and continuing to expand our global footprint.

All of this ladders up to our vision of building Wingstop into a top 10 global restaurant brand and delivering industry-leading returns to our shareholders. I'm very pleased with the strength of our pipeline of new restaurant development. With the visibility we have today in the pipeline, we have clarity into the development numbers for the balance of 2019. We believe we will open between 136 and 142 net new restaurants in 2019. This rate of unit growth is consistent with our long-term target of 10%-plus unit growth.

Overall, I'm very pleased with the way development is shaping up for 2019. This is largely driven by the strengthening of our domestic pipeline, which is benefiting from the strong top-line growth in our domestic business. We saw the top line momentum from the start