For the fast-food chain Wingstop Inc. (WING) the year 2020 could be counted as the most successful. Shares have risen by more than 71 percent during the past year, and this year’s gain so far is above 9%.
Five years ago, Wingstop, which specializes in selling different chicken dishes, went public, and the stock has grown by more than 600 percent since then. In 2019, the revenue growth of the network was more than 11%. Yet growth was much higher in 2020, with similar revenue increasing in the second and third quarters by 31.9 percent and 25.4 percent, respectively. The COVID-19 pandemic, which led to a dramatic rise in digital orders, was the growth engine.
Moreover, Wingstop continues to grow its chain of restaurants. At the time of the IPO, 785 restaurants were owned by the group. The business has almost doubled this number to 1,500 restaurants over the years. There are proposals, however, to open 6,000 restaurants. Thus, Wingstop is at the start of the road to development. Competition is increasing the risk for Wingstop, but the firm is widening its product selection, allowing chicken dishes for any palate. The restaurant chain is still searching for new ways to encourage video game purchases, for instance. Wingstop also collaborates with different ads and promotion streaming platforms.
During the pandemic, Wingstop thanked its owners and paid a special dividend of $5 per share in December. That is not the first time that Wingstop has given its owners special dividends. For instance, the firm paid them twice in 2018: the first at $3.02 per share and the second at $3.05.
Therefore, Wingstop is continuing its fast expansion, widening its network, and growing its restaurant revenue. The pandemic has given the digital sales division a boost and moved the business closer to its 100% digital transactions target.
Wingstop Inc. (WING) was a little weak on Friday with a fall of -0.91% to close at $144.95.