Wingstop Inc. has announced its intention to enter into a new securitized financing transaction, which will include the issuance of $500 million of new securitized notes. This new series of securitized debt is in addition to the company's existing series 2022-1 and series 2020-1 fixed rate senior notes. The company also plans to increase the capacity of its variable funding note facility from $200 million to $300 million. As of November 13, 2024, there were no outstanding borrowings under the existing variable note funding facility.
The net proceeds from the issuance of the new securitized notes are intended to be used for various purposes, including paying transaction fees, strengthening the company’s liquidity position, and for general corporate purposes, which may include the repurchase of shares of the company’s common stock.
In fiscal year 2023, Wingstop’s system-wide sales increased by 27.1% to approximately $3.5 billion, marking the 20th consecutive year of same store sales growth. As of September 28, 2024, the company's total restaurant count stood at 2,458, with corporate-owned restaurants and independent franchisees or brand partners comprising approximately 98% of the system.
Wingstop's achievements in 2023 include earning the “best places to work” certification, landing on Entrepreneur magazine’s “fastest-growing franchises” list, ranking #16 on “franchise 500,” being listed on Technomic’s “top 500 chain restaurant report,” and appearing in QSR magazine’s “2023 QSR 50” and Franchise Time’s “40 smartest-growing franchises.” Following these announcements, the company's shares moved 0.4%, and are now trading at a price of $339.76. For more information, read the company's full 8-K submission here.
