Wingstop CEO sticks by plans for new stores, hires as industry struggles

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'We anticipate continuing to hire, not only just to service the demand we're seeing now, but our franchisees are doing a fantastic job of reigniting growth in new restaurants,' Wingstop CEO Charlie Morrison said.

The chicken chain has brought on about 6,000 new employees in the U.S. since the start of the pandemic and does not expect to slow down as the company bets on its delivery strategy to reach customers in a physical distancing culture.

For years, Wingstop has consistently opened at least 20 restaurants each quarter. The company in July reported fiscal second-quarter domestic same-store sales growth of nearly 32% powered in large part by digital sales, which made up a healthy majority of U.S. sales. Wingstop, beating Wall Street estimates, posted $66.1 million in revenue, up 36% from a year earlier, and had earnings of $11.5 million, or 39 cents per share, more than double from $4.9 million a year ago.

Meanwhile, the broader restaurant industry continues to face headwinds as establishments grapple with capacity limits and other restrictions in efforts to contain the Covid-19 outbreak, as new daily U.S. cases continue to hover in the 30,000 to 40,000 range. The daunting signs and approaching winter are creating headaches for commercial landlords, who run into their own challenges of finding tenants in a recession, as diners lose access to outside seating to augment business.

Wingstop has 1,436 total locations, including 1,244 in the U.S., as of June 27. That's up from 1,385 at the end of December.

 

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