Wingstop Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Wingstop Inc. filed its 2023 10-K report detailing financial performance and business operations.</b>

AI Summary

Wingstop Inc. (WING) filed a Annual Report (10-K) with the SEC on February 21, 2024. Wingstop Inc. reported its fiscal year 2023 results, ending December 30, 2023. The company's business address is 15505 Wright Brothers Drive, Addison, TX 75001. Wingstop Inc. was formerly known as Wing Stop Holdings Corp. The filing is a 10-K report under the 1934 Securities Exchange Act. The company's Standard Industrial Classification code is 5812 (Retail-Eating Places).

Why It Matters

For investors and stakeholders tracking Wingstop Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Wingstop's financial health, operational strategies, and risk factors for the fiscal year 2023, crucial for investors to assess the company's performance and future outlook. Understanding the company's financial statements, including revenue streams and debt levels, is essential for evaluating its growth trajectory and investment potential.

Risk Assessment

Risk Level: — Wingstop Inc. shows moderate risk based on this filing. The filing is a standard 10-K, which is a routine annual report. While it contains detailed financial information, it does not indicate any immediate or severe risks beyond those typically associated with a publicly traded company in the restaurant industry.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand Wingstop's performance drivers and potential challenges for the upcoming fiscal year.

Key Numbers

• 20231230 — Fiscal Year End (Reported period)
• 20240221 — Filing Date (Date of submission)
• 5812 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• Wingstop Inc. (company) — Filer name
• Wing Stop Holdings Corp (company) — Former company name
• 15505 Wright Brothers Drive (location) — Business address
• Addison, TX 75001 (location) — Business address
• 1934 Act (regulation) — SEC Act

FAQ

Industry Context

Wingstop operates in the fast-casual restaurant sector, specializing in chicken wings. This sector is characterized by high competition, evolving consumer preferences, and reliance on franchise models.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, which mandates public companies to submit regular financial disclosures to the SEC, ensuring transparency for investors.

What Investors Should Do

1. Analyze Wingstop's revenue breakdown and growth trends from the 10-K filing.
2. Assess the company's operational efficiency and any disclosed risks.
3. Compare Wingstop's financial performance against industry benchmarks.

Key Dates

• 2023-12-30: Fiscal Year End — End of the reporting period for financial statements.
• 2024-02-21: Filing Date — Date the 10-K report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial 10-K filing for the fiscal year 2023. Previous filings would be for earlier fiscal years.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share WING NASDAQ Global Select Mar
• $1.8 million — ) has grown consistently, approximating $1.8 million during fiscal year 2023. Our domestic o
• $480,000 — age initial investment of approximately $480,000, excluding real estate purchase or leas
• $10,000 — defined market area. Franchisees pay a $10,000 development fee per restaurant to-be-de
• $20,000 — franchisees must pay a franchise fee of $20,000 for each restaurant opened. Under our

Filing Documents

• wing-20231230.htm (10-K) — 1341KB
• exh211-listofsubsidiaries2.htm (EX-21.1) — 9KB
• exh231kpmgconsent10-k2023.htm (EX-23.1) — 2KB
• exh311ceocertq42023.htm (EX-31.1) — 10KB
• exh312cfocertq42023.htm (EX-31.2) — 10KB
• exh321soxceocertq42023.htm (EX-32.1) — 5KB
• exh322soxcfocertq42023.htm (EX-32.2) — 5KB
• exh971wingstopincclawbackp.htm (EX-97.1) — 38KB
• wing-20231230_g1.jpg (GRAPHIC) — 104KB
• 0001636222-24-000011.txt (&nbsp;) — 7761KB
• wing-20231230.xsd (EX-101.SCH) — 49KB
• wing-20231230_cal.xml (EX-101.CAL) — 98KB
• wing-20231230_def.xml (EX-101.DEF) — 242KB
• wing-20231230_lab.xml (EX-101.LAB) — 754KB
• wing-20231230_pre.xml (EX-101.PRE) — 493KB
• wing-20231230_htm.xml (XML) — 936KB

Business

Item 1. Business 5 Item 1A.

Risk Factors

Risk Factors 11 Item 1B. Unresolved Staff Comments 26 Item 1C. Cybersecurity 26 Item 2.

Properties

Properties 28 Item 3.

Legal Proceedings

Legal Proceedings 28 Item 4. Mine Safety Disclosures 28 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 29

Reserved

Item 6. Reserved 31 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 31 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 40 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 40 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 41 Item 9A.

Controls and Procedures

Controls and Procedures 41 Item 9B. Other Information 43

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 43 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 44 Item 11.

Executive Compensation

Executive Compensation 44 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 44 Item 13. Certain Relationships and Related Transactions, and Director Independence 44 Item 14. Principal Accountant Fees and Services 44 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 45

Form 10-K Summary

Item 16. Form 10-K Summary 47

Signatures

Signatures 48 3 Cautionary Note Regarding Forward-Looking Statements This report includes statements of our expectations, intentions, plans and beliefs that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and are intended to come within the safe harbor protection provided by those sections. These statements, which involve risks and uncertainties, relate to the discussion of our business strategies and our expectations concerning future operations, sales, margins, profitability, net new units, trends, liquidity and capital resources and to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable. These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms "may," "will," "should," "expect," "intend," "plan," "outlook," "anticipate," "believe," "think," "estimate," "seek," "predict," "can," "could," "project," "potential" or, in each case, their negative or other variations or comparable terminology, although not all forward-looking statements are accompanied by such terms. Examples of forward-looking statements in this Annual Report on Form 10-K include, but are not limited to, our expectations with respect to our growth, strategic initiatives, and future operations, liquidity, expenses, and consumer appeal. These forward-looking statements are made based on expectations and beliefs concerning future events affecting us and are subject to uncertainties, risks, and factors relating to our operations and business environments, all of which are difficult to predict and many of which are beyond our control, that could cause our actual results to differ materially from those matters expressed or implied by these forward-looking statements. Such risks and other f

Business

Item 1. Business Throughout this report, unless the context indicates otherwise, Wingstop Inc. (NASDAQ: WING) and its consolidated subsidiaries are referred to as the "Company," "Wingstop," or in the first-person notations of "we," "us," and "our." General Wingstop is the largest fast casual chicken wings-focused restaurant chain in the world, with over 2,200 locations worldwide. The first Wingstop opened in Garland, Texas in 1994, and we began franchising Wingstop restaurants in 1997. Since 2015, Wingstop Inc.'s common stock has traded on the Nasdaq Global Select Market under the symbol "WING." We are dedicated to serving the world flavor through an unparalleled guest experience and offering of classic wings, boneless wings, tenders, and chicken sandwiches, always cooked to order, and hand-sauced-and-tossed in 11 bold, distinctive flavors. The Company is primarily a franchisor, with approximately 98% of Wingstop's restaurants currently owned and operated by independent franchisees. We operate in a single segment for reporting purposes and generate revenues by charging royalties, advertising fees, and franchise fees to our franchisees and by operating a number of our own restaurants. We believe our asset-light, highly-franchised business model generates strong operating margins and requires low capital expenditures, creating stockholder value through strong and consistent free cash flow and capital-efficient growth. Our Brand It is our mission to serve the world flavor. We offer our guests fresh, cooked-to-order wings, tenders, and chicken sandwiches with bold, layered flavors that touch all of the senses, and we complement our wings, tenders, and chicken sandwiches with fresh-cut, seasoned fries and fresh, hand-cut carrots and celery. We round out the flavor experience with ranch and bleu cheese dips that are made in-house daily. We never use heat lamps or microwaves in the preparation of our food. Our 11 flavor offerings, along with limited time offering

View Full Filing

View this 10-K filing on SEC EDGAR