Category Of Its Own
Wingstop CEO Charlie Morrison was a guest on Cramer's "Mad Money" show Wednesday to talk about the company's performance and outlook. The CEO started off by stating Wingstop operates in a "category all by itself" yet it boasts among the best margins within the broader restaurant industry. Meanwhile, the company's streak of positive same-store sales growth now stands at 16 exiting 2019, he said.
Digital sales accounted for 39% of total sales as of the end of 2019 while around 160 restaurants are already more than 50% digital while another "handful" is more than 60% digital, Morrison said. Compared to pizza delivery chains, Wingstop is a "clear second" in digital penetration but is still "growing fast."
Wingstop's relationship with food delivery platform DoorDash is "fantastic" as the company benefits from higher check averages, Morrison said. DoorDash is doing a great job on its end of providing top quality delivery services that match guests' expectations.
Wingstop's total store count in some states can be counted on one hand and Morrison said there is plenty of white space for growth. What's most important is the "portability" of chicken wings which is popular in every market where Wingstop operates.
"Our restaurants continue to comp up each and every year from the day they open all the way through their history -- even the oldest restaurants in the system," the CEO said. "So we have a lot of confidence in our ability to really penetrate those markets in the future."
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