Small Bizeo Initiates Wingstop at Strong Buy

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Small Bizeo initiates Wingstop at Strong Buy based on unit economics, failure rates and franchisee testimonials.

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"We find comfort in that the concept has simple operations, a tasty product and is scalable. After speaking to many franchisees, we get the impression that franchisees are happy and looking to open more locations, which is always a good sign"

Founded in 1994, Wingstop is quickly emerging as a leading wing franchise. With 467 locations at the end of 2010, Wingstop is growing very rapidly. The investment required to build out a franchise is around $400k, but average store sales are quite healthy (~$750,000). This concept is ripe for further growth.

"We find comfort in that the concept has simple operations, a tasty product and is scalable. After speaking to many franchisees, we get the impression that franchisees are happy and looking to open more locations, which is always a good sign," says Small Bizeo Founder Kal Gullapalli.

"I have opened 3 franchises in the last 3 years and plan to open more. The support system here is very strong," says one franchisee who wishes to remain anonymous.

The average store size is around 1,500 square feet. Small box stores decrease the amount of inherent risk in a franchise investment.

Overall, this franchise is top notch based on many data points. Wingstop is a leader in its sector and has the right team to continue growing the concept. The owners of Wingtop, Roark Capital, also own other franchises such as Moe's Southwest Grill, Cinnabon, Carvel and now Arby's.

The above rating was created by Small Bizeo, a objective franchise research firm. Small Bizeo, led by Kal Gullapalli, prepares detailed industry and company level research for prospective franchise buyers via their “Get Smart” platform.

To view their in-depth analysis on Wingstop or any other franchises, please visit http://www.smallbizeo.com and check out their "Get Smart" application.

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Kal Gullapalli
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