investor
play

INVESTOR PRESENTATION JUNE 2018 0 FORWARD-LOOKING STATEMENTS - PowerPoint PPT Presentation

INVESTOR PRESENTATION JUNE 2018 0 FORWARD-LOOKING STATEMENTS Forward-Looking Statements This presentation contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact


  1. INVESTOR PRESENTATION JUNE 2018 0

  2. FORWARD-LOOKING STATEMENTS Forward-Looking Statements This presentation contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact or relating to present facts or current conditions included in this presentation are forward-looking statements. Forward-looking statements give Wingstop Inc. ’s (the “Company”) current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipates,” “believes,” “continues,” “estimates,” “expects,” “goal,” “objectives” “intends,” “may,” “opportunity,” “plans,” “potential,” “near - term,” “long - term,” “projections,” “assumptions,” “projects,” “guidance,” “forecasts,” “outlook,” “target,” “trends,” “should,” “could,” “would,” “will” and similar expressions and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. The forward-looking statements contained in this presentation are based on assumptions that the Company has made in light of its industry experience and perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. As you read and consider this presentation, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (many of which are beyond its control) and assumptions. Although the Company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect its actual operating and financial performance and cause its performance to differ materially from the performance anticipated in the forward-looking statements. The Company believes these factors include, but are not limited to, those described under the sections “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in its Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) . Should one or more of these risks or uncertainties materialize, or should any of these assumptions prove incorrect, the Company’s actual operating and financial performance may vary in material respects from the performance projected in these forward-looking statements. Any forward-looking statement made by the Company in this presentation speaks only as of the date on which it is made. Factors or events that could cause the Company’s actual operating and financial performance to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. Non-GAAP Financial Measures This presentation contains certain non-GAAP financial measures. A “non -GAAP financial measure” is defined as a numerical measure of a company’s financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the statements of income, balance sheets or statements of cash flow of the company. The Company has provided a reconciliation of Adjusted EBITDA, a non-GAAP financial measure, to net income in the Appendix to this presentation. Adjusted EBITDA is presented because management believes that such financial measure, when viewed with the Company’s results of operations presented in accordance with GAAP and the reconciliation of Adjusted EBITDA to net income, provides additional information to investors about certain material non-cash items and about unusual items that the Company does not expect to continue at the same level in the future. Adjusted EBITDA is used by investors as a supplemental measure to evaluate the overall operating performance of companies in the Company’s industry, but you should not consider it in isolation, or as a substitute for analysis of results as reported in accordance with GAAP. The Company’s calculation of Adjusted EBITDA may not be comparable to that reported by other companies. For additional information about the Company’s non-GAAP financial measures, see the Company’s filings with the SEC. 1

  3. CATEGORY OF ONE 2

  4. STRONG START TO 2018 Key Highlights (1) • System-wide restaurant count increased 12.2% to 1,157 global locations • Q1 Domestic same store sales growth of 9.5% • System-wide sales increased 20.4% • Total revenue increased 11.9% to $37.4 million • Adjusted EBITDA increased 31.0% to $12.5 million • Completed recapitalization and paid a $3.17 per share special dividend • Favorable bone-in wing pricing resulting in 11.3% deflation in Q1 Note: (1) Based on Q1 2018 financial results. 3

  5. LONG TRACK RECORD OF OUTSTANDING RESULTS CONTINUES 3 Year CAGR (1) Unit Development 17% System-Wide Sales 17% Revenue 16% Adjusted EBITDA (2) 19% Notes: (1) Three-year period ended December 30, 2017. (2) Refer to Adjusted EBITDA reconciliation in Appendix. 4

  6. SSS OUTPACE TOP INDUSTRY BRANDS 2012 – 2017 Stacked Same Store Sales 2017 2016 2015 49.9% 2014 2.6% 46.2% 2013 3.2% 2012 7.9% 32.0% 12.5% 22.8% 21.0% 17.0% 9.9% 16.7% 12.7% 11.8% 7.8% 13.8% 3.0% (1) (1) (2) (3) (3) (3) (1) (1) (4) (1) (3) Source: Company filings. Notes: (1) Domestic system-wide (4) North America (2) Americas 5 (3) Total System

  7. LONG-TERM GROWTH DRIVERS National Advertising Delivery Digital Expansion International 6

  8. NATIONAL ADVERTISING NATIONAL ADVERTISING 7

  9. SUCCESSFUL 2017 NATIONAL ADVERTISING ROLLOUT WITH UPSIDE OPPORTUNITY 2017 National Advertising Launch Future of National Ad Fund • Launched mid-February • National Ad Fund will grow with system-wide sales • Reach of 80% adults 18-49 • Designed to provide multi-year • Cadence of 2-3 weeks on/off benefit • Aided brand awareness • Opportunity to increase contribution improvement of 500 bps from 3% to 4% in 2019 System Sales Comp vs. APT Index vs. Sales Index SSS % APT Sales Index 9.0% 7.0% 5.0% 3.0% 1.0% -1.0% -3.0% 2017 2018 2019 -5.0% Source: APT Index. 8

  10. SALES TRENDS PRE-NATIONAL ADVERTISING ROLLOUT Wingstop SSS variance to the APT Index - four weeks ended February 11, 2017 4.9% -9.2% 6.5% -8.7% -9.1% 12.1% -9.0% -12.2% -5.7% -11.8% -16.8% -2.6% -2.1% -10.5% -12.7% -9.6% -15.5% -9.3% -4.7% 4.6% -4.5% -8.9% -8.6% -11.8% -15.8% -9.2% -12.1% -6.6% 6.9% -4.6% -6.6% -17% to -12% -5.5% -3.4% -5.3% -12% to -8% -5.5% -8% to 0% -10.6% -9.7% 0% to 5% 5% to 13% Source: APT Index. SSS variances compare Wingstop stores to APT index stores in those markets. 9

  11. SALES TRENDS POST-NATIONAL ADVERTISING ROLLOUT Wingstop SSS variance to the APT Index - four weeks ended December 30, 2017 9.9% 29.4% 30.6% 2.5% 19.0% 5.9% 14.6% 30.4% 51.3% 9.6% 24.9% 10.3% 25.3% 11.5% 18.4% 3.0% 8.4% 25.7% 4.2% 8.0% 2.7% 6.7% 6.9% 8.5% 13.5% 35.6% 10.2% 11.2% 4.2% 12.5% 32.9% 15.9% -10% to 0% 21.7% 25.2% 17.1% 0% to 5% 5.6% 5% to 10% 16.1% 8.8% 10% to 20% 20%+ Source: APT Index. SSS variances compare Wingstop stores to APT index stores in those markets. 10 10

  12. DELIVERY 11 11

  13. EARLY SUCCESS IN INITIAL DELIVERY TEST MARKETS Delivery Test Markets - Blended Same Store • Initial test market of Las Vegas Transaction Lift market experienced 10%+ 12.0% incremental sales lift 10.0% 8.0% • 6.0% Expanded test in late Q4 to Chicago 4.0% and Austin markets; experienced mid- 2.0% high single digit incremental sales lift 0.0% Wk 1 Wk 2 Wk 3 Wk 4 Wk 5 Wk 6 Wk 7 Wk 8 Wk 9 Wk 10 Wk 11 Wk 12 Wk 13 Wk 14 Wk 15 Wk 16 Wk 17 • Strategic partnership with DoorDash Delivery Test Markets – Blended Digital Sales Mix • Likely rollout market-by-market beginning late 2018 / early 2019 26.0% 24.0% 22.0% 20.0% 18.0% 16.0% 14.0% Pre (13 wks) Wk 1 Wk 2 Wk 3 Wk 4 Wk 5 Wk 6 Wk 7 Wk 8 Wk 9 Wk 10 Wk 11 Wk 12 Wk 13 Wk 14 Wk 15 Wk 16 Wk 17 System Online Pickup Avg. Online Pickup Wingstop.com Delivery Marketplace Delivery 12 12

  14. DIGITAL 13 13

  15. POISED FOR CONTINUED DIGITAL GROWTH 74% Wingstop Restaurants > 20% Digital Sales (1) • 75% take-out 25.0% 400 24.0% Online Sales % (excl. Call Center) 350 • Almost 50% phone orders 23.0% 300 Store Count 250 22.0% • $5 higher digital average 200 ticket (1) 21.0% 150 20.0% 100 • Q1 digital sales of 24% 19.0% 50 vs. fast casual average of - 18.0% 6% (2) Q2-17 Q3-17 Q4-17 Q1-18 Less than 10% Between 10-15% Between 15-20% Between 20-25% Greater than 25% Online Sales % Sources: (1) As of quarter ended 3/31/18 for Domestic restaurants. (2) OLO. 14 14

  16. ON OUR WAY TO BEST IN CLASS DIGITAL SALES 60% 50% 40% Digital Sales % Potential impact from delivery 30% 2019 annual growth of 400 bps 2018 BOY growth of 300 bps 20% 10% 0% (1) (1) (2) (1) (1) (3) Sources: (1) Q1 2018 earnings call transcript. (2) Q3 2017 earnings call transcript. Dunkin ’ Donuts I nvestor Day 2/8/18. (3) 15 15

Download Presentation
Download Policy: The content available on the website is offered to you 'AS IS' for your personal information and use only. It cannot be commercialized, licensed, or distributed on other websites without prior consent from the author. To download a presentation, simply click this link. If you encounter any difficulties during the download process, it's possible that the publisher has removed the file from their server.

Recommend


More recommend