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Wingstop: Key Points from 3Q19

  • Strategy is to continue driving sales through increased brand awareness & innovation and an increase in its national ad fund contribution from 3% to 4% at the beginning of 2019 now funds two 12-week national TV campaigns, local TV in the interim & an always-on digital presence.
  • 36% digital sales mix was up 10% y/y and its proprietary online ordering site & app (launched at the beginning of 2019) has driven increased conversion rates. Digital orders carry a $5 higher ticket & corporate believes it can continue to drive digital sales without employing discounts or incentives like other brands do.
  • Delivery roll-out began in late 2018 & will be available to 90%+ of the system by year-end (national TV ads promoting delivery will begin in 2020).

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