Wingstop Inc. (NASDAQ:WING) Q4 2019 Earnings Conference Call - Final Transcript

Feb 19, 2020 • 10:00 am ET

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Wingstop Inc. (NASDAQ:WING) Q4 2019 Earnings Conference Call - Final Transcript

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Operator
Operator

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Wingstop Incorporated Fiscal Fourth Quarter 2019 Earnings Conference Call. Please note that this conference is being recorded today, Wednesday, February 19, 2020.

On the call, we have Charlie Morrison, Chairman and Chief Executive Officer; Michael Skipworth, Executive Vice President and Chief Financial Officer.

I'd now like to turn the conference over to Michael. Please go ahead.

Executive
Michael J. Skipworth

Thank you and welcome. Everyone should have access to our fiscal fourth quarter 2019 earnings release. A copy is posted under the Investor Relations tab on our website at ir.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 risks 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 risk 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 information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. Reconciliations to comparable GAAP measures are contained in our earnings release.

Lastly, for the Q&A session, we ask that you please each keep to one question and a follow-up, to allow as many participants as possible to ask a question.

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

Executive
Charles R. Morrison

Thank you, Michael, and good morning. We appreciate you joining us for our fourth quarter earnings call. Let me start by congratulating our team members and our franchisees, whom we affectionately refer to as our brand partners, for helping Wingstop deliver another year of industry-leading results in 2019. Their hard work and dedication to our mission to serve the world flavor continue to lead us toward our vision of becoming a top-10 global restaurant brand.

2019 marked our 16th consecutive year of domestic same-store sales growth, which was 11.1% or almost 18% on a two-year basis. We also expanded our global footprint with 133 net new restaurants, ending the year with 1,385 restaurants. The combination of same-store sales growth and 10.6% global unit expansion led to system-wide sales of $1.5 billion, an impressive increase of 20.1% versus the prior year. This strong top line translated to adjusted EBITDA of $57 million for 2019, an increase of 16% over the prior year. Our 2019 results and the underlying strength of our business were driven by our continued execution of our strategy.

People and infrastructure are the foundation of our strategy as we build the organization to the next level. We believe our people are a key competitive advantage and we continue to invest in identifying and developing the best talent. Just last month, we hosted our first Investor Day since becoming a public company in 2015. This Investor Day held in