INVESTOR DAY JANUARY 2020 MICHAEL SKIPWORTH Chief Financial Officer
INVESTOR DAY 1 FORWARD-LOOKING STATEMENTS NON-GAAP FINANCIAL MEASURES This presentation contains forward-looking statements that are subject to risks and This presentation contains certain non-GAAP financial measures. The Company has uncertainties. All statements other than statements of historical fact or relating to provided a reconciliation of Adjusted EBITDA, a non-GAAP financial measure, to net present facts or current conditions included in this presentation are forward-looking income in the Appendix to this presentation. Adjusted EBITDA is used by investors as a statements. Forward-looking statements give Wingstop Inc.’s (the “Company”) current supplemental measure to evaluate the overall operating performance of companies in expectations and projections relating to its financial condition, results of operations, the Company’s industry, but you should not consider it in isolation, or as a substitute for plans, objectives, future performance and business. These statements may include analysis of results as reported in accordance with GAAP. The Company’s calculation of words such as “anticipates,” “believes,” “continues,” “estimates,” “expects,” “goal,” Adjusted EBITDA may not be comparable to that reported by other companies. For “objectives” “intends,” “may,” “opportunity,” “plans,” “potential,” “near-term,” “long-term,” additional information about the Company’s non-GAAP financial measures, see the “projections,” “assumptions,” “projects,” “guidance,” “forecasts,” “outlook,” “target,” Company’s filings with the SEC. “trends,” “should,” “could,” “would,” “will” and similar expressions and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. PRELIMINARY FINANCIAL AND
The forward-looking statements contained in this presentation are based on OPERATIONAL RESULTS assumptions that the Company has made in light of its industry experience and This presentation sets forth certain preliminary estimates of financial and operating perceptions of historical trends, current conditions, expected future developments and results that we expect to report for the fourth quarter and full year 2019. We have not other factors it believes are appropriate under the circumstances. As you read and yet completed customary closing procedures for this preliminary financial and consider this presentation, you should understand that these statements are not operational data, and our independent registered public accounting firm has not yet guarantees of performance or results. They involve risks, uncertainties (many of which reviewed or audited such results. Accordingly, these preliminary results are subject to are beyond the Company’s control) and assumptions. The Company believes these change pending finalization, and actual results could differ materially as we finalize factors include, but are not limited to, those described under the sections “Risk Factors” such results. and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in its Annual Report on Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission (the “SEC”). Any forward-looking statement made by the Company in this presentation speaks only as of the date on which it is made. Factors or events that could cause the Company’s actual operating and financial performance to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement except as may be required by law.
INVESTOR DAY 2 PRE-RELEASE OF PRELIMINARY 2019 RESULTS
+10.6% unit growth to 1,385 worldwide locations with 45 net openings in Q4 and 133 net openings for the year.
+12.2% domestic same store sales growth for Q4, +11.1% for the year – marking our 16th consecutive year of positive same store sales growth.
+21.2% system-wide sales growth to approximately $397.2 million in Q4 and +20.1% on an annual basis to approx. $1.5 billion.
Invested $1.6 million in Q4 in connection with management consulting engagement, and incurred $1.1 million in organizational-related changes.
INVESTOR DAY 3 CHARLIE MORRISON Chairman & CEO
INVESTOR DAY 4 WELCOME TO INVESTOR DAY TODAY’S OBJECTIVES
Anchor everyone on our strategic path forward
Get to know new members of WING senior leadership team!
Experience innovative ideas that will ensure a successful delivery of our strategy
See our revised International strategy and outlook
INVESTOR DAY 6 STEADFAST IN OUR MISSION AND VISION
OUR MISSION OUR VISION
TO SERVE THE WORLD TO BECOME A TOP 10 FLAVOR GLOBAL RESTAURANT BRAND
INVESTOR DAY 7 INVESTOR DAY BEST-IN-CLASS RESULTS SINCE 2015 IPO
GLOBAL MARKET PRESENCE 500+ 13.1% 10 Net new Unit development Countries of locations1 4-yr CAGR1 operations
TRACK RECORD OF PERFORMANCE 31.3% 16.5% 17.7% Stacked domestic System-wide sales Adjusted EBITDA same-store sales 4-yr CAGR1 4-yr CAGR4 growth1 93% 406% $338M Average cash Total shareholder Capital Returned conversion3 return since IPO2 since IPO2
Notes 1. From fiscal year 2015 to end of fiscal year 2019 2. As of 12/28/2019 3. From end of fiscal year 2015 to 2019 Q3 TTM. Defined as Adj. EBITDA less CapEx (excludes one time investments such as restaurant acquisitions and 2019 purchase of new headquarters) 4. From end of fiscal year 2015 to 2019 Q3 TTM (proxy for 2019 fiscal year) INVESTOR DAY 9 INDUSTRY-LEADING PERFORMANCE IN 2019
GLOBAL MARKET PRESENCE DOMESTIC 1,385 10.6% 133 Global Unit development Net new 16 locations growth units CONSECUTIVE YEARS OF SAME-STORE SALES GROWTH TRACK RECORD OF PERFORMANCE 20.1% 94% 39% INTERNATIONAL System-wide Delivery Digital sales 8 sales growth coverage 2 mix1 CONSECUTIVE YEARS OF 11.1% 17.6% $1.25M SAME-STORE SALES GROWTH 1-Yr domestic 2-Yr domestic Average unit SSS growth SSS growth volume
Notes: Results as of 12/28/2019. 1. For period ending 12/28/2019 2. % of domestic restaurants with delivery as of 12/28/2019 INVESTOR DAY 10 THE SECRET TO OUR SUCCESS
Average Unit Volumes 1
$1.5MM
2009 2010 2011 2012 $1.0MM 2013 2014 2015 2016
$0.6MM YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10
Note: 1. Average unit volumes shown for each 52 week period since restaurant opening for their respective year. Results through 12/28/19. INVESTOR DAY 11 WE HAVE NOT FOUND A POINT OF MATURATION
16%
14%
12% 2019 Domestic SSS of 11.1%
10%
8%
6%
Original 4% Restaurant > $3.5M AUV 2%
0% 1994 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Note: Domestic same store sales growth as of fiscal year end 12/28/19. Vintage defined as year restaurant opened. INVESTOR DAY 12 THUS, IF YOU BUILD THEM… THEY WILL GROW!
$1,510
$1,215
$905
2012 2015 2019 LESS THAN 1% CLOSURE RATE LAST 5 YEARS
Notes: Based on Restaurants (465 count) operating in 2012 or earlier for each time period shown and have a full 52 weeks of sales starting in 2012. AUV $ in thousands, based on fiscal year ending 12/29/2012, 12/26/2015, and 12/28/2019, respectively INVESTOR DAY 13 RESULT: LASTING VALUE FOR OUR BRAND PARTNERS
Brand Partner 1 Brand Partner 2 Brand Partner 3 AUV
Annualized Sales Size of bubble determined by unit counts
EXAMPLES OF BRAND PARTNER EVOLUTION AND GROWTH PROGRESSION (2012-2019)
INVESTOR DAY 14 CONFIDENCE IN OUR LONG-TERM POTENTIAL
GLOBAL RESTAURANT POTENTIAL
Domestic Market International Markets
1,231 restaurants 154 restaurants 44 states 9 countries 3,000+ 3,000+ Domestic restaurant potential International restaurant potential
Note: As of 12/28/19. INVESTOR DAY 15 TOP 10 GLOBAL RESTAURANT BRAND
SUSTAIN SSS VIA BRAND MAINTAIN BEST-IN-CLASS EXPAND AWARENESS AND INNOVATION UNIT ECONOMICS GLOBAL FOOTPRINT
National Cost of Goods Fortress Key Advertising Mitigation U.S. Markets
Operating Digital Enter Non-Traditional Efficiencies Restaurant Locations
Advantages Continue International Delivery of Scale Expansion
INVEST IN PEOPLE AND INFRASTRUCTURE TO BUILD THE ORGANIZATION FOR THE NEXT LEVEL
INVESTOR DAY 16 TOP 10 GLOBAL RESTAURANT BRAND
SUSTAIN SSS VIA BRAND MAINTAIN BEST-IN-CLASS EXPAND AWARENESS AND INNOVATION UNIT ECONOMICS GLOBAL FOOTPRINT
National Cost of Goods Fortress Key Advertising Mitigation U.S. Markets
Operating Digital Enter Non-Traditional Efficiencies Restaurant Locations
Advantages Continue International Delivery of Scale Expansion
INVEST IN PEOPLE AND INFRASTRUCTURE TO BUILD THE ORGANIZATION FOR THE NEXT LEVEL
INVESTOR DAY 17 BEST TEAM IN THE INDUSTRY!
CHARLIE MORRISON MICHAEL SKIPWORTH MAHESH SADARANGANI CHRISTINA CLARKE Chairman & CEO Chief Financial Officer Chief Operating Officer Chief Marketing Officer
NICOLAS BOUDET MADISON JOBE DONNIE UPSHAW REBECCA MINOR MARISA CARONA President International Chief Development Officer SVP of People General Counsel VP of Strategy and Chief of Staff
INVESTOR DAY 18 DONNIE UPSHAW Senior Vice President, People
INVESTOR DAY 19 A WINNING BRAND
Fortune Fast Casual Nation's Restaurant Top 50 of 100 Top 100 Movers News Top 200 (#89) Fastest Growing and Shakers
QSR Magazine Great Place to Oncon Icon Best Franchise Deals Work Certified Award 2019
DFW Best and FSTEC Franchise Direct Brightest Accelerator Top Franchises (#81) Companies “National Chain”
INVESTOR DAY 20 PEOPLE AS THE COMPETITIVE ADVANTAGE
Top 10 Global Brand People Process Building our Talent
Advance Top Talent to Key Roles 6
5 from our Competitors our from Differentiated Talent Talent Differentiated Develop Critical Skills
Coach Performance 4
Engage and Retain 3
Culture Alignment 2
Assess Potential & Management Strategy Management Integrated Talent Talent Integrated Bench Strength Attract Top Talent 1
INVESTOR DAY 21 INVESTING IN ORGANIZATION HEALTH
Our journey with The Table Group Holding one another accountable focused on the following: for behaviors and actions, focusing on collective results Building a Cohesive Leadership Team • Building trust and eliminating politics
Established meeting Create Clarity and communication • Intellectually aligned. What is most important, right norms now? Overcommunicate Clarity Cascading to organization • Reinforce what is true and important through a series of team Reinforce Clarity meetings and off-sites • Overcommunicate through all people processes
INVESTOR DAY 22 INVESTING IN TOP TALENT WITH INDUSTRY-LEADING ENGAGEMENT SCORES
2017 Wingstop Engagement Score 1 2018 Wingstop Engagement Score 1 Engaging Higher Discretionary Effort 84% Recruiting 88% Competitive for Top Talent Industry Average 69% Industry Average 77%
+34% vs 2015 Rewarding Pay for Performance 2015 2016 2017 2018 2019 Director and VP Average Salary 2
Notes: 1. Qualtrics engagement survey measured during 2017 and 2018. 2. Internal salary data for fiscal years 2015 through 2019. INVESTOR DAY 23 ATTRACTING AND RETAINING TOP TALENT
New Wingstop Headquarters Addison, TX INVESTOR DAY 24 CHRISTINA CLARKE Chief Marketing Officer
INVESTOR DAY 25 TOP 10 GLOBAL RESTAURANT BRAND
SUSTAIN SSS VIA BRAND MAINTAIN BEST-IN-CLASS EXPAND AWARENESS AND INNOVATION UNIT ECONOMICS GLOBAL FOOTPRINT
National Cost of Goods Fortress Key Advertising Mitigation U.S. Markets
Operating Digital Enter Non-Traditional Efficiencies Restaurant Locations
Advantages Continue International Delivery of Scale Expansion
INVEST IN PEOPLE AND INFRASTRUCTURE TO BUILD THE ORGANIZATION FOR THE NEXT LEVEL
INVESTOR DAY 26 OUR STRATEGIES HAVE STAYING POWER
Consistent growth across all vintages 15.4% 14.8% 13.6% 13.8% 12.5% 11.1% 9.9% 8.3% 7.9% 16 6.0% 6.5% 4.9% CONSECUTIVE YEARS 4.0% OF DOMESTIC SAME- 3.2% 2.6% STORE SALES GROWTH 1.3%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Co-ops Formed in Key Centralized National Markets Creative Media & Elevated Creative
INVESTOR DAY 27 CONSUMER SEGMENTATION TO IDENTIFY GROWTH OPPORTUNITIES
Heavy BOX BOX BOX BOX 16+ Annual Visits 1 2 3 4 Wingstop Medium BOX BOX BOX BOX Usage 8-15 Annual Visits 5 6 7 8
Light to Never BOX BOX BOX BOX BOX 0 to 7 Annual Visits 9 10 11 12 13
Non-User Super Light Light Medium Heavy 0 Annual Visits 1-47 Annual Visits 48-95 Annual Visits 95-143 Annual Visits 144+ Annual Visits
QSR Usage
Notes: Burke Revenue Map Profile Update, Q32019 INVESTOR DAY 28 CONSUMER SEGMENTATION TO IDENTIFY GROWTH OPPORTUNITIES
Heavy BOX BOX BOX BOX 16+ Annual Visits 1 2 59%3 of Wingstop4 Our Core Wingstop Visits Medium BOX BOX BOX BOX Usage 8-15 Annual Visits 5 6 7 8
BOX BOX BOX NonBOX Frequenct FansBOX & Light to Never 67% of QSR Visits 0 to 7 Annual Visits 9 10 11 Habitual12 QSR Users13
Non-User Super Light Light Medium Heavy 0 Annual Visits 1-47 Annual Visits 48-95 Annual Visits 95-143 Annual Visits 144+ Annual Visits
QSR Usage
Notes: Burke Revenue Map Profile Update, Q32019 INVESTOR DAY 29 DEEP KNOWLEDGE OF OUR CONSUMER
NON- HABITUAL OUR CORE FREQUENT QSR FANS USERS
WINGSTOP VISITS Every 2-4 Weeks Every 3-12 Months None
AA/Hispanic
WHO THEY Income ARE
Family
Notes: Burke Revenue Map Profile Update, Q32019 INVESTOR DAY 30 DEEP KNOWLEDGE OF OUR CONSUMER
NON- HABITUAL OUR CORE FREQUENT QSR FANS USERS
WINGSTOP VISITS Every 2-4 Weeks Every 3-12 Months None
AA/Hispanic
WHO THEY Income ARE
Family
CONSIDER WINGSTOP AS 100% Consideration 50-60% Consideration <20% Consideration A RESTAURANT CHOICE
Notes: Burke Revenue Map Profile Update, Q32019 INVESTOR DAY 31 BENCHMARKING SHOWS SIGNIFICANT RUNWAY FOR LONG-TERM GROWTH
Brand Growth Funnel Q1-Q3 2019 Gap to QSR Peers 1
AWARENESS 17 pts
Conversion to CONSIDERATION 13 pts
Conversion to P3M PURCHASE 20 pts
REPEAT 0.5 visits/qtr (PM)
Note: INVESTOR DAY 32 1. Q1-3 2019 Burke consumer research report. Peer group includes Buffalo Wild Wings, Chick-fil-a, Chipotle, Dominos, KFC, Panda Express, Pizza Hut, Taco Bell, Whataburger. INCREASING WINGSTOP FANS BY BRINGING NEW USERS INTO THE BRAND
HEAVY Box 3 Box 4 16+ Annual WS CORE WINGSTOP FANS MEDIUM Box 7 Box 8 8-15 Annual WS
LIGHT Box 12a Box 13a 4-7 Annual WS
INFREQUENT Box 12a Box 13a 2-3 Annual WS NON-FREQUENT FANS ANNUAL Box 12b Box 13b 1 Annual WS
LOST Box 12c Box 13c
Last visit 12M+ WINGSTOPVISIT FREQUENCY/RECENCY NEVER Box 12d Box 13d HABITUAL QSR Medium Heavy 95-143 Annual QSR 144+ Annual QSR
QSR USAGE 1
Notes: 1. Q1-Q3 2019 vs. 2018 Revenue Map Expanded INVESTOR DAY 33 INCREASING WINGSTOP FANS BY BRINGING NEW USERS INTO THE BRAND
HEAVY Box 3 Box 4 16+ Annual WS CORE WINGSTOP FANS +1.1pt User Growth MEDIUM Box 7 Box 8 8-15 Annual WS +3.5pts WS Visit Growth
LIGHT Box 12a Box 13a 4-7 Annual WS
INFREQUENT Box 12a Box 13a AVERAGE INCREMENTAL CUSTOMERS 2-3 Annual WS 2 NON FREQUENT PER RESTAURANT FANS ANNUAL Box 12b Box 13b 1 Annual WS 459 408 LOST Box 12c Box 13c Last visit 12M+ WINGSTOPVISIT FREQUENCY/RECENCY 224 NEVER Box 12d Box 13d HABITUAL QSR Medium Heavy 95-143 Annual QSR 144+ Annual QSR
QSR USAGE 1 Q1 2019 Q2 2019 Q3 2019
Notes: 1. Q1-Q3 2019 vs. 2018 Revenue Map Expanded 2. Q1-Q3 2019 vs. 2018 Revenue Map Expanded, Internal sales data. INVESTOR DAY 34 SYSTEM SALES GROWTH FUELING ADDITIONAL ADVERTISING FUND INVESTMENT
Growing National Advertising Fund
2015 2016 2017 2018 2019 2020E
INVESTOR DAY 35 SYSTEM SALES GROWTH FUELING ADDITIONAL ADVERTISING FUND INVESTMENT
INVESTMENT STRATEGIES Growing National Advertising Fund
Increasing National Media Reach
Breakthrough Creative
Local Amplification
Strategic Partnerships
Personalized CRM 2015 2016 2017 2018 2019 2020E
INVESTOR DAY 36 PERSONALIZED CRM TO DRIVE CONSUMER ENGAGEMENT AND BEHAVIOR
Industry-Leading Partnerships Personalized CRM Journeys Campaign Application
INVESTOR DAY 37 PERSONALIZED CRM TO DRIVE CONSUMER ENGAGEMENT AND BEHAVIOR
Industry-Leading Partnerships Personalized CRM Journeys Campaign Application
INVESTOR DAY 38 2020: “ALWAYS ON” COMMUNICATIONS TO DELIVER BRAND AND BUSINESS GROWTH
Q1 Q2 Q3 Q4
Integrated NATIONAL CAMPAIGN #1 NATIONAL CAMPAIGN #2 Marketing Windows LOCAL LOCAL CO-OP CO-OP MEDIA MEDIA
TV Media 100-120 TRP’s 85 TRP’s 100-120 TRP’s 85 TRP’s
Earned Media SOCIAL PR AND DIGITAL ADVERTISING Awareness & Consideration Consideration & Awareness
NATIONAL THE BIG COLLEGE PRO & COLLEGE Pulse Point CHICKEN GAME BASKETBALL FOOTBALL Activation WING DAY
CRM CRM CONSUMER JOURNEY MAPPING
& Repeat Repeat & Purchase
INVESTOR DAY 39 MAHESH SADARANGANI Chief Operating Officer
INVESTOR DAY 40 JOURNEY AT WINGSTOP
CHANNEL STRATEGY
TRADITIONAL
NON-TRADITIONAL
DELIVERY
INVESTOR DAY 41 TOP 10 GLOBAL RESTAURANT BRAND
SUSTAIN SSS VIA BRAND Maintain Best-In-Class EXPAND AWARENESS AND INNOVATION Unit Economics GLOBAL FOOTPRINT
National Cost of Goods Fortress Key Advertising Mitigation U.S. Markets
Operating Digital Enter Non-Traditional Efficiencies Restaurant Locations
Advantages Continue International Delivery of Scale Expansion
INVEST IN PEOPLE AND INFRASTRUCTURE TO BUILD THE ORGANIZATION FOR THE NEXT LEVEL
INVESTOR DAY 42 DIGITAL IS OUR BUSINESS
Most Efficient Way Injected Straight Wingstop’s Stated Mission $5 Higher Average Check 1 to Place an Order Into the POS is to be 100% Digital
Note: 1. Domestic digital ticket average compared to the average ticket value placed in the store or by phone. INVESTOR DAY 43 GOAL REMAINS TO DIGITIZE EVERY TRANSACTION
100% IN-RESTAURANT
ABOVE RESTAURANT ORGANIC DIGITAL GROWTH
INCREMENTAL DELIVERY 39% GROWTH
EXISTING DIGITAL & DELIVERY 1
TODAY TOMORROW
Notes: 1. Digital sales for period ending 12/28/2019 INVESTOR DAY 44 ACCESS WINGSTOP “ANYWHERE”
SOCIAL MOBILE APP WINGSTOP.COM DELIVERY CHANNELS Removing obstacles to convert every order to Digital
INVESTOR DAY 45 INNOVATING TO CLOSE THE GAP TO 100%
PICKUP LOCKERS ORDERING KIOSKS VOICE ACTIVATION
• Seamless guest experience • Easy & quick ordering • First to offer customized / personalized ordering on • Encourages digital ordering • Higher guest check Alexa • Simplifies DoorDash • Upselling capabilities • Hands free, voice delivery pickups activated ordering
INVESTOR DAY 46 DELIVERY IS A BIG DRIVER FOR DIGITAL IN 2020 AND BEYOND
National Delivery Improve Data Coverage in 2020 Sharing
94% Delivery coverage1 Limited today, but expect to share data across both platforms
Exclusive, Long-term Launch National Contract Signed Delivery Marketing in mid-February Industry-low commission rates Focus on driving revenue through Wingstop channels
Note: 1. % of domestic restaurants with delivery as of 12/28/2019 INVESTOR DAY 47 ENSURING CONSISTENT OPERATIONS IS PARAMOUNT TO OUR SUCCESS
Overall Satisfaction Digital Satisfaction Top Gun Restaurants
Top Quartile Requirements: • Restaurant 2% 8% Audit Scores 7% • Overall Satisfaction 3% • Digital Satisfaction
2017 2018 2019 2017 2018 2019
WE HAVE DONE A GOOD JOB BLOCKING AND TACKLING ON FUNDAMENTALS
INVESTOR DAY 48 MY PRIORITIES
Best-in-Class Simple Operating Model Operations Team Unit Economics
Today Domestic System AUV 1 $1.25M Investment Cost 2 $390k Unlevered COC Return 3 50%+
Protect our Model Bolster Returns Build Best-in-Class Organization
Notes: 1. AUV based on Domestic System average, as of 12/28/2019 2. Investment cost based on previous four fiscal years average actual costs as submitted by brand partners; excludes pre-opening and working capital. 3. Average restaurant economics are internal Company estimates based on unaudited results reported by brand partners. INVESTOR DAY 49 THE FUTURE
STRATEGIC PRIORITIES END GOAL
Drive Acceleration in Development Improve centers of excellence across organization Through Bigger, Better, Faster Restaurant Openings Develop best-in-class operations leaders
Measurement through data-driven decision making
Fierce focus on field accountability and communication
Increase collaboration between field ops and brand partners
INVESTOR DAY 50 MICHAEL SKIPWORTH Chief Financial Officer
INVESTOR DAY 51 TOP 10 GLOBAL RESTAURANT BRAND
SUSTAIN SSS VIA BRAND MAINTAIN BEST-IN-CLASS EXPAND AWARENESS AND INNOVATION UNIT ECONOMICS GLOBAL FOOTPRINT
National Cost of Goods Fortress Key Advertising Mitigation U.S. Markets
Operating Digital Enter Non-Traditional Efficiencies Restaurant Locations
Advantages Continue International Delivery of Scale Expansion
INVEST IN PEOPLE AND INFRASTRUCTURE TO BUILD THE ORGANIZATION FOR THE NEXT LEVEL
INVESTOR DAY 52 BEST-IN-CLASS RETURNS KEY TO SUCCESS AS REGIONS MATURE
Pillars of Restaurant Operating Model:
• 80% off-premise North West AUV $885k AUV $1,438k • Focused menu and operating model
• Average Building square footage of ~1,700,
Southwest in-line location AUV $1,458k Southeast AUV $880k • Sustaining investment cost at $390k, to allow model to absorb range of AUVs
• Leading to low breakeven and closure rates
Note: As of 12/28/19, average unit volumes based on 2019 performance during open weeks and estimated for a full 52 week period. INVESTOR DAY 53 CONSISTENT SALES GROWTH ENHANCING UNIT LEVEL ECONOMICS
Average Unit Volumes 2
$1.5MM $1,510
$1,215 2009 2010
2011 $1.0MM 2012
$905 2013
2014
2015
2016
$0.6MM 2012 2015 2019 YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10
Average Unit Volumes ($ in MMs) 1
Notes: 1. Based on restaurants (465 count) operating as of 2012 or earlier for each time period shown and having a full 52 weeks of sales starting in 2012. AUV based on fiscal years ending 12/29/2012, 12/26/2015, and 12/28/2019, respectively. 2. Average unit volumes shown for each 52 week period since restaurant opening for their respective year. Results through 12/28/2019. INVESTOR DAY 54 AND STRONGER NEW RESTAURANT OPENINGS IMPROVE OVERALL RETURNS
$945k
$850k
2017 Class 1 2018 Class 2
Note: 1 Represents 2018 average unit sales for restaurants opening in 2017. 2 Represents 2019 average unit sales for restaurants opening in 2018. INVESTOR DAY 55 CONFIDENCE IN OUR MODEL WITH INDUSTRY-LEADING MARGINS
2019 Q3 Restaurant Margins 1
25.8%
24.3%
20.8% 19.8% 19.0% 18.6%
Notes: 1. SEC filings, results for Q3 2019. Company Owned Restaurants onl.y INVESTOR DAY 56 SIMPLE OPERATING MODEL HELPS SUSTAIN LONG- TERM GROWTH
EFFICIENT LABOR MODEL LOW FIXED COSTS
• Simplicity of our menu and • Focused on ”B” real estate operations enables us to staff sites translating to low with a lean labor model occupancy rates • Minimal changes in staffing • Capacity to support growth during peak windows
STRATEGIC MENU MANAGEMENT SIMPLE COMMODITY BASKET
• Strategic & targeted price increases • Focused on managing/reducing leveraging leading 3rd party revenue volatility in chicken wing pricing management service through Whole Bird strategy • Innovation utilized to drive mix shift • Strategic partnership with PFG
INVESTOR DAY 57 FOCUSED SUPPLY CHAIN STRATEGY WILL MAINTAIN MARGINS AND REDUCE VOLATILITY
Bone-in wings majority of protein mix today… …with purchases tied to a highly-volatile spot market
Protein Mix
Boneless Wings/Tenders
Bone-In Wings
INVESTOR DAY 58 SHIFT TOWARD CONTRACT & GRAIN-BASED PRICING CAN REDUCE COST VOLATILITY
Higher Price Volatility Lower Price Volatility MARKET CONTRACT GRAIN- PRICE PRICE BASED
Chicken represents 65% of our purchases Available for: Available for: Available for: Bone-In Wings Boneless Wings, Whole Wings, Thighs, Tenders Whole Bird
1. Improving quality an increasing mix of our boneless wings How will we achieve this? 2. Introducing new protein cuts such as whole wings & thighs 3. Purchasing whole birds and finding a market for any unused parts
INVESTOR DAY 59 MAINTAINING UNIT LEVEL ECONOMICS WILL CONTINUE TO FUEL RESTAURANT DEVELOPMENT
2012 2015 Today • AUVs continue to increase over time Domestic System AUV 1 $900k $1.13M $1.25M • Low investment cost provides attractive entry into the Brand Investment Cost 2 $370k $370k $390k • ~90% of new restaurants in Unlevered COC 2019 were built by existing Return 3 ~30% 50%+ 50%+ brand partners
Notes: 1. AUV based on Domestic System average based on fiscal year ending 12/29/2012, 12/26/2015, and 12/28/2019, respectively 2. Investment cost based on previous four fiscal years average actual costs as submitted by brand partner; excludes pre-opening and working capital. 3. Average restaurant economics are internal Company estimates based on unaudited results reported by brand partner. INVESTOR DAY 60 MADISON JOBE Chief Development Officer
INVESTOR DAY 61 TOP 10 GLOBAL RESTAURANT BRAND
SUSTAIN SSS VIA BRAND MAINTAIN BEST-IN-CLASS EXPAND AWARENESS AND INNOVATION UNIT ECONOMICS GLOBAL FOOTPRINT
National Cost of Goods Fortress Key Advertising Mitigation U.S. Markets
Operating Digital Enter Non-Traditional Efficiencies Restaurant Locations
Advantages Continue International Delivery of Scale Expansion
INVEST IN PEOPLE AND INFRASTRUCTURE TO BUILD THE ORGANIZATION FOR THE NEXT LEVEL
INVESTOR DAY 62 GOAL TO REACH 6,000+ GLOBAL LOCATIONS
DOMESTIC GLOBAL
154 units 1,231 units 3,000+ units 3,000+ units
FORTRESS Long-term Currently Goal of 3x 90% 50/50 IN CORE & Domestic Split EMERGING US MARKETS 1,385 units 6,000+ units Domestic International
NON-TRADITIONAL
Stadiums & Sport Airports Casinos Colleges & Ghost Kitchens Food Courts Complexes Universities
INVESTOR DAY 63 A PROVEN AND HIGHLY PORTABLE BRAND
2012 2019 Domestic Restaurants 533 1,231 States 32 44 AUV $900k $1.25M 2012 2019
3 14
1 5 2 2 1 4 2 3 1 9 19 6 2 13 4 1 5 10 2 3 14 3 22 1 26 2 9 22 1 1 17 68 14 131 17 273 5 29 5 1 22 9 2 16 6 2 19 9 5 15 17 13 4 7 6 35 10 10 10 5 2 6 11 6 35 14 22 226 352 69 23 2
2
Note: As of 12/28/19. INVESTOR DAY 64 DOMESTIC GROWTH ANCHORED BY FORTRESSING KEY MARKETS
IDENTIFIED 25 KEY MARKETS TO FORTRESS PROFILE OF A MARKET (DMA) THAT HAS BEEN SUCCESSFULLY FORTRESSED: • Cover > 75% of DMA population with restaurant protected trade areas
OPPORTUNITY • Brand awareness in DMA > the TO ESTABLISH national average 1,000+ • SSS growth > peer group1 ADDITIONAL RESTAURANTS • Average unit volumes in DMA ≥ the national average
Current pipeline: Current penetration: ~400 restaurants ~725 restaurants opened
Notes: 1. APT Index. The APT Index analyzes retail and restaurant performance across 150,000+ locations. INVESTOR DAY 65 HIGHER PENETRATION CORRELATES TO STRONGER RESULTS
DALLAS-FT. WORTH LOS ANGELES MIAMI ST. LOUIS
Restaurant Count 1 115 151 24 10
Market Penetration 2 89% 66% 41% 25%
Average Unit Volume 1 $1.6M $1.5M $1.2M $1.0M
5-yr Stacked SSS 1 38.4% 32.1% 27.0% 25.0%
Notes: 1. Data as of 12/28/2019 2. Defined as percent of population served by our restaurants, Data as of 12/28/2019. INVESTOR DAY 66 NON-TRADITIONAL SITES ENABLE ACCESS TO NEW GROWTH OPPORTUNITIES
Wingstop Fully Azteca Stadium in Ghost Kitchen Channel Penetrated Potential Mexico in U.K. Stadiums & Sports Complexes
Airports Casinos +500 Colleges & Dallas-Ft. Worth New Cooking Universities Restaurants Airport Platform
Ghost Kitchens
Food Courts
INVESTOR DAY 67 HEALTH OF PIPELINE AND BEST-IN-CLASS UNIT ECONOMICS FUELING GROWTH
DOMESTIC CASH-ON- DOMESTIC DEVELOPMENT DOMESTIC RESTAURANTS 4 CASH RETURNS AGREEMENTS 4 610 1,231 1,124 530 523 2012 2015 Today 518 1,027 450 922 786 Domestic System AUV 1 $900k $1.13M $1.25M
Investment Cost 2 $370k $370k $390k
Unlevered COC Return 3 ~30% 50%+ 50%+ 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019
of current agreements represent of new restaurants in 2019 were >70% development for fortress markets ~90% built by existing brand partners
Notes: 1. AUV based on Domestic System average based on fiscal year ending 12/29/2012, 12/26/2015, and 12/28/2019, respectively 2. Investment cost based on previous four fiscal years average actual costs as submitted by franchisee; excludes pre-opening and working capital. 3. Average restaurant economics are internal Company estimates based on unaudited results reported by franchise owners. 4. Data as of fiscal year end for 12/26/2015, 12/31/2016, 12/30/2017, 12/29/2018, and 12/28/2019. INVESTOR DAY 68 NICOLAS MARISA BOUDET CARONA President, Vice President, International Strategy and Chief of Staff
INVESTOR DAY 69 TOP 10 GLOBAL RESTAURANT BRAND
SUSTAIN SSS VIA BRAND MAINTAIN BEST-IN-CLASS EXPAND AWARENESS AND INNOVATION UNIT ECONOMICS GLOBAL FOOTPRINT
National Cost of Goods Fortress Key Advertising Mitigation U.S. Markets
Operating Digital Enter Non-Traditional Efficiencies Restaurant Locations
Advantages Continue International Delivery of Scale Expansion
INVEST IN PEOPLE AND INFRASTRUCTURE TO BUILD THE ORGANIZATION FOR THE NEXT LEVEL
INVESTOR DAY 70 EMERGING INTERNATIONAL BUSINESS: HIGHLY PORTABLE BRAND WITH STRONG GROWTH POTENTIAL
154 RESTAURANTS ACROSS 9 MARKETS, WITH 5 MARKETS OPENING 2017 OR LATER
MEXICO INDONESIA COLOMBIA PANAMA FRANCE
91 UNITS 33 UNITS 4 UNITS 3 UNITS 1 UNIT
2009 2013 2014 2015 2017 2017 2018 2018 2019
SINGAPORE UAE MALAYSIA UK
7 UNITS 8 UNITS 4 UNITS 3 UNITS
8 CONSECUTIVE YEARS OF SAME-STORE SALES GROWTH
Notes: As of 12/28/2019 INVESTOR DAY 71 MEXICO DEMONSTRATES HEALTHY GROWTH AND STRONG DEVELOPMENT PIPELINE…
Restaurant Count 3 91
76
60
44 34
Profitable casual dining sports bar concept
50% 5 year stacked same-store sales growth 1 2015 2016 2017 2018 2019 200 restaurant commitment 2.2% 14.2% 8.5.% 14.0% 10.8% $650K average unit volume 2 Same Store Sales Growth 1
Notes: 1. Same store sales growth calculated in local currency 2. U.S. dollars as of 12/28/2019 3. Data as of fiscal year end for 12/26/2015, 12/31/2016, 12/30/2017, 12/29/2018, and 12/28/2019. INVESTOR DAY 72 …SIMILAR PORTABILITY AND STRONG RESULTS IN INDONESIA
Restaurant Count 3 33 29
21
15
10
Profitable fast casual model with high delivery 2015 2016 2017 2018 2019 82% 5 year stacked same-store sales growth 1 0.5% 33.4% 20.8% 7.6% 19.8% 60 restaurant commitment Same Store Sales Growth 1 $420K average unit volume 2 Notes: 1. Same store sales growth calculated in local currency 2. U.S. dollars as of 12/28/2019 3. Data as of fiscal year end for 12/26/2015, 12/31/2016, 12/30/2017, 12/29/2018, and 12/28/2019. INVESTOR DAY 73 HOWEVER, WE TOOK A PAUSE IN Q2 2019
London (Circus) Singapore (Studio) Chicken 5-7 minute average order time 5-7 minute average order time consumption Year 1 AUV $2.9M1 AUV $0.6M (500sqft store)2 per capita
Assessed & refined international expansion strategy Prevalence of France (Toulon) London (Dalston) western brands 6-8 minute average order time 5-7 minute average order time Est. annualized AUV $2.8M3 Est. annualized AUV $1.7M3
Notes: 1. Represents first full year average unit volume in U.S. dollars (Nov ‘18 through Oct ‘19) 2. Average unit volume in U.S. dollars as of 12/28/2019 3. Full year average unit volume in U.S. dollars estimated based on weekly sales and weeks open INVESTOR DAY 74 PARTNERED WITH BCG TO DEVELOP COMPREHENSIVE STRATEGY FOR INTERNATIONAL EXPANSION
What is the right offering? Where to play? How to execute?
What are the key elements of Which markets best align with What's the right entry the Wingstop model that should these elements and how do we strategy, operating model and form the core of our prioritize based on geography, organizational support international offering? headroom and other operating needed to support strategy? considerations?
BCG makes no guarantee, representation or warranty as to the accuracy, reliability, completeness, or currency of the information in this document. BCG will not be liable for any loss, damage, cost, or expense incurred or arising by reason of any person using or relying on information in this document. INVESTOR DAY 75 . BRAND DIFFERENTIATORS GLOBALLY – KEY STRENGTHS INFORM WHERE OUR BRAND FITS BEST
Premium Quality Halo Off-Premise Dining Product attributes support ever-growing High quality positioning supporting a delivery/takeaway premium price
Flavor Expertise Simple Operating Model "Flavor experts" allows us to differentiate Simple ops and smaller footprints enable scaling by market and economics
Chicken Wing Focus Specialized product in a high growth protein segment
INVESTOR DAY 76 ROBUST APPROACH TO MARKET IDENTIFICATION
All countries (200+)
SCALE OF • Included all countries with LSR1 market >$1.5B POTENTIAL MARKET
• LSR market size and historical growth MARKET • Presence of chicken in LSR market ATTRACTIVENESS • Consumer income and purchasing power • Future growth outlook
• Geopolitical instability score • Difficulty to establish office space MARKET ACCESS- • Difficulty to file and pay taxes ABILITY • Labor cost index / commercial real estate cost • Availability of partners
PRIORITY COUNTRY LIST Notes: INVESTOR DAY 77 1. LSR = Limited Service Restaurants THREE DATA CRITERIA USED TO DEFINE MARKET ARCHETYPES ALIGNED WITH KEY BRAND STRENGTHS
Price point feasibility Cost to operate Off-premise dining Ability of market to support Rent and labor costs of Strength of off-premise premium price offering market (takeaway and delivery) dining behaviors
Desired outcome: High Desired outcome: Low- to Mid- Desired outcome: High
INVESTOR DAY 78 OPTIMAL ARCHETYPES: INTERSECTION OF PREMIUM PRICE OFFERING AND HIGH OFF-PREMISE
Best fit for royalty maximization
Low Cost to Operate High
HigherHigherpriceprice HigherHigherpriceprice HigherHigherpriceprice High LLowerowercostcost toto operateoperate HigherHighercostcost toto operateoperate HigherHighercostcost to to operate operate HigherHigheroffoff--premisepremise behaviorbehavior HigherHigheroffoff--premisepremise behaviorbehavior LowerLower off off-premise-premise behavior behavior
Lower price HigherHigherpriceprice Best fit for based price and Lower cost to operate LowerLower costcost toto operateoperate off-premise Higher off-premise behavior LowerLower offoff--premisepremise behaviorbehavior Next best fit with based on premium pricing
Lower price Price Point Feasibility Point Price Lower cost to operate Low Lower off-premise behavior
Low Off-Premise Dining
INVESTOR DAY 79 FOCUS ON PREMIUM BRAND POSITIONING VALIDATED BY RECENT OPENINGS
Low Cost to Operate High
Singapore Dalston Toulon, France Flavor Studio
High London, UK Market entry in Smaller format to Existing US high traffic lower occupancy format location cost
Indonesia: High touch table Best fit based on price and service, lower AUV off-premise Next best fit based on premium pricing
Price Point Feasibility Point Price Mexico: Casual dining Lower AUV and Low higher complexity
Low Off-Premise Dining
INVESTOR DAY 80 TWO PRIMARY MODELS WILL FUEL INTERNATIONAL GROWTH: CORE U.S. AND SMALL BOX
Low Cost to Operate High
E.g. China, E.g. UK, Australia, Japan, E.g. Saudi Arabia,
High Western Europe, Singapore Southern France Canada, UAE, South Korea,
E.g. Germany, Denmark, Spain Best fit for based price and off-premise Next best fit with based on
premium pricing Price Point Feasibility Point Price
Low
Low Off-Premise Dining
INVESTOR DAY 81 EVALUATED KEY FACTORS TO DETERMINE WHERE TO PLAY AND MARKET PRIORITIZATION
Archetype Fit with key Wingstop elements
Proximity of other markets and ability to scale brand, cost Geography and support for next opportunity
Headroom Number of Wingstop units market can support
INVESTOR DAY 82 TOP ~15 TARGET MARKETS + OUR TARGET ARCHETYPES = 3,000+ RESTAURANTS GOAL
W. Europe China 425-625 1,000-1,500 restaurants restaurants
Mid. East 100-150 Americas 1 restaurants 275 – 325 restaurants APAC 500-725 restaurants
Notes: 1. Americas excludes U.S. INVESTOR DAY 83 EXAMPLE: A SUCCESSFUL WESTERN, PREMIUM BRAND CONCENTRATED GROWTH BY REGION
Leveraged presence in UK to build out Western Europe and the Middle East Entered Canada, leveraging US PHASE PHASE brand strength 1 2
PHASE 3 PHASE Entered Hong Kong in prep 4 for China entry
Focused on building depth in one region before moving to a new region
INVESTOR DAY 84 A CLEAR AND FOCUSED 3-PRONGED APPROACH
Build out and support existing markets
MEXICO UK FRANCE UAE SINGAPORE
Our strategic plan COLOMBIA PANAMA INDONESIA MALAYSIA and anticipated New launches supporting regional scale phases of growth
NETHERLANDS SAUDI ARABIA GERMANY CANADA
Begin groundwork for key major markets
CHINA SO. KOREA JAPAN AUSTRALIA
INVESTOR DAY 85 INTERNATIONAL EXPANSION ROADMAP
1,200+ restaurants China Western Europe Middle East / Africa APAC Americas
2,030+ 2019 1 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Notes: 1. Data as of 12/28/2019 INVESTOR DAY 86 CONFIDENT CHINA HAS THE MARKET ARCHETYPE TO DRIVE A LARGE PART OF OUR LONG-TERM GROWTH
We are unique. Complex market requires a Flavor is our anchor. more sophisticated approach. We are a category of one. Wingstop will look beyond the typical franchised model.
Ecommerce usage is paramount and high. North Asia (Korea/Japan) is the trend- Wingstop is digitally setter for China. advanced and savvy. Wingstop will establish presence there.
On- and off-premise behavior is high. Complexity requires early planning. Wingstop plays in both seamlessly Wingstop to start discussion in 2020. and is ultra-accessible.
INVESTOR DAY 87 ORGANIZATIONAL INVESTMENT WILL SCALE AS WE INVEST AHEAD OF GROWTH
Year 1: $1 - 2M Build out support for existing footprint and invest in launch team
Year 3 – 5: $3 - 5M Build out in-region capabilities as units scale
> Year 5: $3 - 5M Build out new regional teams as efforts focus on new regions and "big bet" markets
Note: Dollars represent incremental investment in each phase. INVESTOR DAY 88 STRATEGY DRIVES PRIORITIES OF ROYALTY REVENUES, UNIT GROWTH AND UNIT ECONOMICS
Markets that match our Seek like-minded partners: Build a team to execute proven archetype - With access to capital our go-forward plan - World-class operators - With real estate access
INVESTOR DAY 89 BUILDING A RESPONSIBLE AND SUSTAINABLE ORGANIZATION FOR THE NEXT LEVEL
TOP 10 GLOBAL RESTAURANT BRAND
SUSTAIN SSS VIA BRAND MAINTAIN BEST-IN-CLASS EXPAND AWARENESS AND INNOVATION UNIT ECONOMICS GLOBAL FOOTPRINT
National Cost of Goods Fortress Key Advertising Mitigation U.S. Markets
Operating Digital Enter Non-Traditional Efficiencies Restaurant Locations
Advantages Continue International Delivery of Scale Expansion
INVEST IN PEOPLE AND INFRASTRUCTURE TO BUILD THE ORGANIZATION FOR THE NEXT LEVEL
INVESTOR DAY 90 CORPORATE SOCIAL RESPONSIBILITY (CSR) PLATFORM LOOKS TO OUR MISSION AS THE FOUNDATION
Mindful of the impact of our restaurants and drive to eliminate waste TO SERVE THE WORLD FLAVOR
Service-minded in the Platform authentic treatment of our to Wingstop stakeholders
INVESTOR DAY 91 PROVIDING VALUE TO ALL STAKEHOLDERS
GUESTS
COMMUNITY TEAM MEMBERS & BRAND PARTNERS
CSR
SUPPLIER PARTNERS
SHAREHOLDERS
INVESTOR DAY 92 PROVIDING VALUE TO ALL STAKEHOLDERS
GUESTS
COMMUNITY TEAM MEMBERS & BRAND • Diversity and inclusion PARTNERS • Pay equity
CSR
SUPPLIER PARTNERS
SHAREHOLDERS
INVESTOR DAY 93 PROVIDING VALUE TO ALL STAKEHOLDERS
GUESTS
COMMUNITY TEAM MEMBERS & BRAND PARTNERS
CSR
SUPPLIER PARTNERS
SHAREHOLDERS
INVESTOR DAY 94 PROVIDING VALUE TO ALL STAKEHOLDERS
GUESTS
COMMUNITY TEAM MEMBERS & BRAND PARTNERS
CSR
• Food waste SUPPLIER PARTNERS (supplier & in-restaurant) • Packaging SHAREHOLDERS • Oil recycling
INVESTOR DAY 95 PROVIDING VALUE TO ALL STAKEHOLDERS
GUESTS
• Food safety & quality COMMUNITY TEAM MEMBERS • Youth engagement & BRAND PARTNERS
CSR
SUPPLIER PARTNERS
SHAREHOLDERS
INVESTOR DAY 96 POSITIVELY IMPACTING OUR COMMUNITIES AND TEAM MEMBERS THROUGH WINGSTOP CHARITIES
FOUNDATION CHARITIES ENGAGING OUR YOUTH IN THE PURSUIT OF THEIR SUPPORTING TEAM PASSIONS: MEMBERS IN TIMES OF CRISIS ART / CAREER / EDUCATION / SPORTS
www.wingstopcharities.org
INVESTOR DAY 97 TOP 10 GLOBAL RESTAURANT BRAND
SUSTAIN SSS VIA BRAND MAINTAIN BEST-IN-CLASS EXPAND AWARENESS AND INNOVATION UNIT ECONOMICS GLOBAL FOOTPRINT
National Cost of Goods Fortress Key Advertising Mitigation U.S. Markets
Operating Digital Enter Non-Traditional Efficiencies Restaurant Locations
Advantages Continue International Delivery of Scale Expansion
INVEST IN PEOPLE AND INFRASTRUCTURE TO BUILD THE ORGANIZATION FOR THE NEXT LEVEL
INVESTOR DAY 98 GLOBAL BRAND IN THE EARLY STAGES OF GROWTH AND EXPANSION
GLOBAL RESTAURANT POTENTIAL
Domestic Market International Markets
1,231 restaurants 154 restaurants 44 states 9 countries 3,000+ 3,000+ Domestic restaurant potential International restaurant potential
INVESTOR DAY 99 SUSTAINING A PREDICTABLE FINANCIAL MODEL INTO THE FUTURE
Multi-year strategy to grow top- Disciplined investments and line sales use of cash 80% increase in system sales since Positioned for next phase of 2015 growth
Maintaining best-in-class unit Asset light, low capital model with economics sustained leverage of 6-7x AUV of $1.25M, leading 98% franchised, 90%+ cash conversion restaurant margins
Leading cash-on-cash returns Increasing shareholder value for our Brand Partners Over $300M returned capital, ~400% Returns of 50%+ TSR
INVESTOR DAY 100 GROWTH TARGETS
TOP 10 GLOBAL RESTAURANT BRAND
Next 3 – 5 Years Long-Term (5 Years+)
SUSTAIN SSS VIA BRAND Mid-Single Digit Low Single Digit AWARENESS AND INNOVATION Same Store Sales Growth Same Store Sales Growth
MAINTAIN BEST-IN-CLASS UNIT ECONOMICS 10%+ Annual Unit Growth 10%+ Annual Unit Growth
EXPAND Accelerated International GLOBAL FOOTPRINT G&A Investment $4 - 7M
MAXIMIZE FREE CASH FLOW CONVERSION AND BEST-IN-CLASS SHAREHOLDER RETURNS
INVESTOR DAY 101 Q&A
NASDAQ: WING APPENDIX
INVESTOR DAY 103 SUSTAINING MOMENTUM IN TOP-LINE GROWTH
SYSTEM-WIDE SALES 1 TOTAL UNITS 1 $MM Domestic 1,515 International 1,385 1,261 1,252 1,087 1,133 154 972 128 822 998 106 845 76 59 1,231 1,027 1,124 786 922
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019
DOMESTIC SAME-STORE SALES GROWTH 1
11.1% 7.9% 6.5% 3.2% 2.6%
2015 2016 2017 2018 2019
Notes: 1. Data as of fiscal year end for 12/26/2015, 12/31/2016, 12/30/2017, 12/29/2018, and 12/28/2019. INVESTOR DAY 104 HISTORICAL ADJUSTED EBITDA AND NET INCOME
ADJUSTED EBITDA 1 NET INCOME 2 $MM $MM 55.3 49.0 23.9 21.7 19.8 39.1 33.0 28.9 13.8 10.1
2015 2016 2017 2018 Q3 2019 TTM 2015 2016 2017 2018 Q3 2019 TTM
Note: 1. 2015 results have not been restated to account for changes in revenue recognition 2. Refer to Appendix for reconciliation INVESTOR DAY 105 FRANCHISOR CASH FLOW PRIORITIES
CASH CONVERSION CAPITAL ALLOCATION OPPORTUNITIES 70.0 100.0% 93.4% 93.8% 93.5% 91.9% 93.1% • Deleveraging
75.0% 51.5 • Opportunistic franchisee acquisition 50.0 45.0 • Strategic company store 36.6 50.0% development 30.9 30.0 27.0 • Cash return to shareholders 25.0%
10.0 0.0% 2015 2016 2017 2018 Q3 2019 TTM
Cash Flow1,2 ($M) % of Adjusted EBITDA2
Note: 1. Defined as Adjusted EBITDA – Capex (excl. one time purchase of new headquarters and restaurant acquisitions). 2. 2015 results have not been restated to account for changes in revenue recognition. INVESTOR DAY 106 EBITDA GROWTH AND CASH GENERATION SUPPORT RETURN OF CAPITAL AND DELEVERAGING
NET DEBT / TTM ADJUSTED EBITDA 1
$1.83 Per $2.90 Per $3.17 Per $3.05 Per Share Share Share Share Dividend Dividend Dividend Dividend
6.8x More than $300M of capital returned 5.8x 5.6x 5.2x 5.0x to shareholders since IPO 4.5x
3.1x 2.4x Manage leverage in the 6-7x range
Q1 2015 Post Q2 2016 Q2 2016 Pro- Q4 2017 Q4 2017 Pro- Q3 2018 Q3 2018 Pro- Q3 2019 Recap. Forma forma Forma
Notes: 1. Leverage = Net Debt / LTM Adjusted EBITDA INVESTOR DAY 107 HISTORICAL ADJUSTED EBITDA RECONCILIATION
In $000s
Year Ended Year Ended Year Ended Year Ended 39 Weeks Ended 39 Weeks Ended Dec. 26, 20155 Dec. 31, 2016 Dec. 30, 2017 Dec. 29, 2018 Sep. 29, 2018 Sep. 28, 2019
Net income 10,106 13,769 23,940 21,719 19,300 17,429
Interest expense, net 3,477 4,396 5,131 10,123 6,623 12,952
Income tax expense 5,739 8,188 4,802 5,208 3,925 3,626
Depreciation and amortization 2,682 3,008 3,376 4,313 3,163 4,019
EBITDA 22,004 29,361 37,249 41,363 33,011 38,026 Adjustments
Management agreement termination fee 1 3,297 – – – – –
Management fees 2 237 – – – – –
Transaction costs 3 2,186 2,388 – 3,898 1,462 –
Stock-based compensation expense 4 1,155 1,231 1,851 3,725 2,012 4,809
Adjusted EBITDA 28,879 32,980 39,100 48,986 36,485 42,835
Notes: 1. One-time fee of approx. $3.3 million paid in consideration of termination of management agreement with Roark Capital Management, LLC. 2. Includes management fees and other out-of-pocket expenses paid to Roark Capital Management, LLC. 3. Represents costs and expenses related to refinancing of our debt facility and our public offerings. 4. Includes non-cash, stock-based compensation. 5. 2015 results have not been restated to account for changes in revenue recognition INVESTOR DAY 108 NET DEBT RECONCILIATION
In $000s Adjustments for Q3 Pro-Forma September 29, 2018 Refinance 1 Ending Balance Total Debt 215,358 104,642 320,000 Cash and Cash Equivalents 3,023 3,023 Net debt 212,335 104,642 316,977
Note: Adjusted for proceeds from the new senior secured debt facility. INVESTOR DAY 109