Wingstop Inc. (NASDAQ:WING) Q3 2019 Earnings Conference Call - Final Transcript

Oct 30, 2019 • 10:00 am ET

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Wingstop Inc. (NASDAQ:WING) Q3 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. [Operator Instructions] The first question today comes from David Tarantino with Baird. Please go ahead.

Analyst
David Tarantino

Hi, good morning, congratulations on such strong results. Charlie, I just wonder conceptually, if you could talk about your plan for 2020, at this point. I mean, you obviously are going to be cycling some very big comparisons. So perhaps, can you talk about what the sales driving initiatives are that you think can help to sustain the positive comps, as you have to roll over these big comparisons? Thanks

Executive
Charlie Morrison

Good morning, David. Thanks for the question. While I can't provide specific insight into the outlook for 2020, what I can point to is the strength of these strategic pillars that we have been talking about, frankly, since our IPO centered on continuing to scale our national advertising efforts, the expansion of digital and delivery as key drivers of our overall business platform. And I think you're seeing even this year even in this most recent quarter, we have been able to demonstrate the ability to lap strong performance with equally, if not, better strong performance. And that has been a hallmark of this brand for a number of years and I think it demonstrates just the potential and upside we have working our way towards our long-term vision of being a top 10 restaurant brand.

That said, a couple of areas to call out. Number one, we highlighted that we wanted to be fully rolled out with delivery either this year or into next year. We are ahead of schedule, which is good news. We do anticipate leveraging our national TV advertising with the delivery message. It won't be the sole message, but it certainly will be a component part of the message. And that will be the first time that we have delivered a message to the consumer pointed towards the delivery platform.

So we can expect that next year. And then I would also call attention to the growth in system-wide sales and the dollars that, that continues to produce for our national advertising efforts going into next year. So system-wide sales up over 21% this quarter is a good demonstration of continuing to fuel additional growth in the future as we continue to expand our reach to a much broader segment of consumers, which I believe -- we believe is helping fuel quite a bit of this top line growth right now.

Analyst
David Tarantino

All right. And on the national advertising, I think you mentioned -- or you have the option of increasing the spending ratio. Have you made any decision on whether you plan to do that for 2020?

Executive
Charlie Morrison

Yes, we do not plan to do that for 2020. We feel it's in the best interest of the brand long term that we hold that option back. And given the momentum and strength of the comp and what I just called out a minute ago in terms of the growth drivers that we believe can carry us forward for some period