Investor

Presentation
JANUARY 2016

FORWARD-LOOKING STATEMENTS
Forward-Looking Statements
This presentation contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact
or relating to present facts or current conditions included in this presentation are forward-looking statements. Forward-looking statements give
Wingstop Inc.s (the Company) current expectations and projections relating to its financial condition, results of operations, plans, objectives, future
performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These
statements may include words such as anticipates, believes, continues, estimates, expects, goal, objectives intends, may, opportunity,
plans, potential, near-term, long-term, projections, assumptions, projects, guidance, forecasts, outlook, target, 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.
The forward-looking statements contained in this presentation are based on assumptions that the Company has made in light of its industry experience
and perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the
circumstances. As you read and consider this presentation, you should understand that these statements are not guarantees of performance or results.
They involve risks, uncertainties (many of which are beyond our control) and assumptions. Although the Company believes that these forward-looking
statements are based on reasonable assumptions, you should be aware that many factors could affect its actual operating and financial performance
and cause its performance to differ materially from the performance anticipated in the forward-looking statements. The Company believes these factors
include, but are not limited to, those described under the sections Risk Factors in the prospectus for the Companys initial public offering and in its
other filings with the SEC, which can be found at the SECs website www.sec.gov. Further, the Company has not yet completed closing procedures for
fiscal fourth quarter or full year 2015, and our independent registered public accounting firm has not yet reviewed or audited the results. Accordingly,
these preliminary results are subject to change pending finalization, and actual results could differ materially as we finalize such results. Should one or
more of these risks or uncertainties materialize, or should any of these assumptions prove incorrect, the Companys actual operating and financial
performance may vary in material respects from the performance projected in these forward-looking statements.
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 Companys 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, whether as a result of new information,
future developments or otherwise, except as may be required by law.
Non-GAAP Financial Measures
This presentation contains certain non-GAAP financial measures. A non-GAAP financial measure is defined as a numerical measure of a companys
financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in
accordance with GAAP in the statements of income, balance sheets or statements of cash flow of the company. The Company has provided
reconciliations of each non-GAAP financial measure presented to the most directly comparable GAAP measure in the Appendix to this presentation.
You should not consider it in isolation, or as a substitute for analysis of results as reported under GAAP. Our calculation of Adjusted EBITDA may not
be comparable to that reported by other companies. For additional information about our non-GAAP financial measures, see our filings with the
Securities and Exchange Commission.

A CATEGORY OF ONE

WHAT MAKES WINGSTOP UNIQUE?

SIMPLE CONCEPT

Pioneered Wings as center of the plate

Fast Casual; 98% franchised
11 Flavors spanning spicy, savory, sweet

COVETED CONSUMER

49% of guests are Millennials (1)

53% female skew; strong family appeal (2)
Best in class social sentiment

EFFICIENT OPERATING MODEL

$1.1M Average Unit Volume

35-40% Year 2 Cash-on-cash return
75% Take-Out

TECH FORWARD

15% of sales from online in Q4 2015

Social at the core; engagement over 30% (3)
Digital-first advertising strategy with high ROI

Sources:
(1)
(2)
(3)

MRI Data
Burke Research
Forbes, November 2014

NO DIRECT NATIONAL COMPETITORS

Fast Casual, National Footprint & Focused Menu Sets Wingstop Apart

Bar Centric

QSR Chicken

Pizza Delivery

Small Regional

2015 ANOTHER TERRIFIC YEAR!

INSERT NEW PIC

845 Locations

133 New Openings (Net)

39 states

19% Unit Growth Rate

7.9% Domestic
SSS Growth

7 countries

12 Consecutive Years of SSS Growth

5

INDUSTRY LEADING SSS

2012 2015 Q3 YTD Stacked Same Store Sales
%

2015 Q3 YTD
2014
2013
2012
Cumulative SSS

(1)

(2)

(3)

(3)

(1)

(2)

(3)

(1)

(4)

(1)

(5)

(6)

(3)

Source: Company filings

Notes:
(1) Domestic system-wide
(2) Global company-owned
(3) Domestic company-owned
(4) Franchised
(5) Dunkin U.S. segment only
(6) System-wide

Confidential Information - Do Not Distribute

To
Serve

We strive to deliver on
our commitments to our
guests, team members,
franchisees &
shareholders.

The
World

Our brand knows no

boundaries due to our
unique product,
complex flavors and
commitment to
quality.

Intensely loyal fan base

Best in class franchisee returns
High growth, asset light model;
best of both worlds for investors

59 intl locations in 6 countries,

and we're just getting started
Portable concept; <1% domestic
closure rate in 2015
Ubiquitous flavor profile works
just about everywhere

Always cooked to order

Flavor

The Craft, the

Crave and
the Culture.

Scratch made sides and dips

Hand-cut seasoned fries
Menu appeal for individuals,
groups, families and events
8

COVETED GUEST BASE

MILLENNIALS
18-24 year old Millennial
males
African American and
Hispanic skew
Group-centered
occasions

FAMILIES
24-34 year old Millennial
females
Hispanic mom skew
Orders for the whole
family

FLAVOR CRAVERS
Broad, loyal and diverse
guest base attracted by
unique flavor experience,
product quality, brand
personality and convivial
nature of eating wings
9

PASSIONATE & ENGAGED FANS

Engagement Ratio %

69% of positive social media

comments are about the CRAVE!

Engagement Ratio: A weighted

composite of the total number of
engagements (likes, comments,
favorites, retweets) that followers have
with a brand relative to total
engagements

(1)

Source:
(1)

FollowersMM

Infegy
McDonalds

KFC

Pizza Hut

Applebees

Burger King

Starbucks Coffee

Subway

Dominos

Wendys

Dunkin Donuts

7-Eleven

Buffalo
Wild Wings

Taco Bell

Dairy Queen

Olive Garden

Baskin-Robbins

Chick-fil-A

Whataburger

Hard Rock

Outback
Steakhouse
Hooters

Krispy Kreme
Red Lobster

Wingstop
Mortons
Steakhouse

Source: Forbes, November 2014

10

FUELING DEMAND THROUGH TECHNOLOGY

Poised for
Continued Growth

Average Ticket

Online % of Sales
~ 15%

Doubled Sales Mix

in 2015

~ $20
~ $16

Millennial
customer base

~ 3-6%
~ 1-3%

QSR

(1)

Fast Casual

(1)

Wingstop

Online
Online
Ordering

All Orders
In-Restaurant

Conversion Rate (2)

75% Take-Out

App Ratings (3)

29%

3.0

4.5

10%

4.5
23

Food & Beverage

Industry

Wingstop

Sources:
(1) Olo
(2) MarketingSherpa Ecommerce Benchmark Study 2014
(3) App Store Current Versions Jan 5, 2016

4.5

Simple menu

24

4.5

60% of orders still

come in over the
phone
Creates
efficiencies at
store level

11

AMPLIFIED BY HIGH ROI DIGITAL-FIRST

MARKETING APPROACH
Illustrative Ad Spend Growth (1)
Scaling to National Media

Current

Potential for the Future

Future potential to expand

into traditional media and
national sponsorships
1000 restaurants in US is
target for converting to
national
Transitioning first through
national digital buys

Illustrative National Ad Budget

13 advertising cooperatives
and growing

23

24
Local

Note:
(1) Current reflects markets that have shared comprehensive media plans with Wingstop

National

12

RESULT: COMPELLING UNIT ECONOMICS

In $000s

Franchisee
Year 2
Target

Franchise Awards

Unit Economics
AUV (1)

890

Investment Cost (2)

370

Unlevered Year 2 COC Return

35% - 40%

78% of current commitments from existing

franchisees

2015 Franchisee
Satisfaction - Best
Franchise

Top 10 Fastest
Growing Chains

Top 40, Best

Franchises for
African Americans

The Best
Franchise Deal
in North America

#24, Top Movers

and Shakers List

#1 in System
Sales Growth

Whitespace opportunity to grow

Most Effective Use of
Social Media

2015 Golden
Chain Winner

Notes:
(1) AUV based on 2013 vintage year 1 performance of approximately $820,000 and year 2 growth rate for all new stores since 2006 of approximately 8.5%
(2) Investment cost based on last 2 fiscal years actual costs; excludes pre-opening and working capital

13

VALIDATED BY STRONG COMPANY STORE

PERFORMANCE
19 Company-Owned Restaurants in Dallas (12), Houston (2), and Las Vegas (5)
Same Store Sales(1)
%

Average Unit Volume(2)

Restaurant Profit(2)(3)

$MM

$MM
Margin 1214
+881 bps
7.8

7.9

5.9
4.7

2012
Total
Units:

23

24

19

19

%
17.6%
Margin:

Notes:
(1) For 19 company-owned restaurants as of 9/26/15; excludes re-franchised restaurants
(2) Includes all company-owned restaurants. 1 was re-franchised in October of 2012 and 5 were re-franchised in February 2014
(3) Sales less Cost of Goods Sold, Labor and Other Operating Expenses

2013

2014

LTM Sep.
2015

20.4%

26.4%

25.8%

14

PROVEN CONCEPT ACROSS A VARIETY OF

MARKETS
39 State Footprint with Room to Grow in All Markets (1)
Total Domestic Store Count Q3: 756

Averaging 3 Domestic Closures Per Year Since 2013

Note:
(1) Restaurant count as of 09/26/15

15

ACCELERATING PACE OF DEVELOPMENT

Gross New Unit Openings by Year

Domestic Restaurant Opening Commitments

Rapid Unit Development

Healthy Franchisee Base

142

78% of current domestic pipeline is from existing

franchisees as of 12/26/15

Mix of small and large franchisees

24

530
503

102
20

363

74
10
57
4

118

274
1

82

35
6

64
53

29

2011

2012

Domestic

2013

International

2014

2015

2012

2013

2014

2015

Development Commitments

16

LONG-TERM STORE POTENTIAL ROADMAP

Domestic Bridge to Long-Term Goal

Remaining Opportunity
Domestic Commitments

814

2,500

Existing Markets
New Markets
618

855

900
196

566

786

334

1,645

786

(1)
2015
2014(actual)
(actual)(1)

Existing Market Potential

Note:
(1) Includes 745 restaurants in existing markets and 41 restaurants in new markets as of 12/26/15.

New Market Potential

Long-Term Domestic Potential

17

INTERNATIONAL POTENTIAL
Current Units and Per Capita Poultry Consumption(1)

Europe
Market

Europe

Consumption

European Union

AsiaAsia

21kg

North
America
Africa

U.S. Consumption: 44kg

Middle
East

Asia

Africa
Americas
Market

Consumption

Latin America and

Caribbean

30kg

Brazil

39kg

Canada

32kg

Mexico

25kg

Market

South
America

Market

Consumption

South Africa

31kg

Existing Footprint
Market

Units

Mexico

30

Philippines

Indonesia

Russia

Singapore

UAE

Middle East

(1)
Market

Saudi Arabia

Consumption
44kg

Consumption

Asia and Pacific

8kg

Malaysia

41kg

Australia

39kg

New Zealand

35kg

China

12kg

Indonesia

6kg

India

2kg

Source: OECD-FAO Agricultural Outlook 2015

Total
51
Note:
(1) Unit data as of Q315; Poultry consumption in estimated average kilograms per capita from 2012 to 2014

18

LONG TRACK RECORD OF DELIVERING

OUTSTANDING RESULTS
Total Units

System-Wide Sales
845

$MM
~821
821

712
614

679

546

550
457

Growth %:

2012

2013

2014

9.4%

12.5%

16.0%

2015
2015
est (2)

2012

18.7%

2013

2014

2015
est (2)
2015

Adjusted EBITDA(1)

Total Revenue
$MM

$MM
77.6 77.9

2015 est (2)

High Growth + Franchisor Cash Flow

Notes:
(1) Refer to Appendix for reconciliation
(2) 2015 estimates represent updated guidance issued on 01/11/16.

19

THE BEST OF BOTH WORLDS

Rapid Expansion

Robust Cash Conversion

% FY 2014 Cash Conversion and Unit Growth (1)

LTM Q3 Gross Unit Openings

15

(2)

(2)

(2)

Unit Growth:
Source: Public company filings

2.4%

16.0%

3.9%

6.8%

3.0%

Notes:
1. Defined as (EBITDA CapEx) / EBITDA
2. Calculations use Adj. EBITDA

6.9%

20

SIMPLE AND STRONG BALANCE SHEET

EBITDA Growth and Cash Generation Support
Deleveraging(1)

Balance Sheet
($MM)

Capitalization
as of Q1 2015
(Inclusive of
Recap)

Capitalization
as of Q2 2015
(Post-IPO)

Capitalization
as of Q3 2015

Cash

2.9

4.9

5.7

Revolving
Credit
Facility

0.0

0.0

0.0

Term Loan

132.5

100.5

95.5

Total Debt

132.5

100.5

95.5

Total Debt /
LTM
Adjusted
EBITDA

5.3x

3.9x

3.6x

(2)

Notes:
(1) Leverage = Gross Debt / LTM Adjusted EBITDA
(2) Primary proceeds at IPO used to achieve leverage of ~3.9x LTM Adj. EBITDA

21

LONG-TERM FINANCIAL TARGETS*

Attractive Business Model

Disciplined Unit Growth

Long-Term Growth Targets

10%+ annual unit growth
~2,500 domestic unit potential

+
Strong Same Store Sales Growth

Low single digit annual growth

Consistent new store ramp

=
13% - 15% Adjusted EBITDA growth
Steady, Reliable Profit Growth

18% - 20% Net Income / EPS growth

Strong free cash flow and conversion

*These are not projections; they are goals and are forward-looking, subject to significant business, economic, regulatory and competitive uncertainties and contingencies,
many of which are beyond the control of the Company and its management, and are based upon assumptions with respect to future decisions, which are subject to
change. Actual results will vary and those variations may be material. For discussion of some of the important factors that could cause these variations, please consult the
Risk Factors section in the prospectus for the Companys initial public offering and in its other filings with the SEC. Nothing in this presentation should be regarded as a
representation by any person that these goals will be achieved and the Company undertakes no duty to update its goals.

22

#Appendix

23

YTD HISTORICAL ADJUSTED EBITDA

RECONCILIATION
In $000s
Year Ended
December 29, 2012

Year Ended
December 28, 2013

Year Ended
December 27, 2014

YTD
September 27, 2014

(1)

(1)

YTD
September 26, 2015

Net income

3,580

7,530

8,986

7,485

6,311

Interest expense, net

2,431

2,863

3,684

2,871

2,764

Income tax expense

3,000

4,493

5,312

4,426

3,753

Depreciation and
amortization

2,930

3,030

2,904

2,232

1,944

11,941

17,916

20,886

17,014

14,772

3,297

Management fees(3)

422

436

449

338

237

Transaction costs(4)

308

395

2,169

976

2,186

Gains and losses on

disposal of assets(5)

(20)

(86)

(86)

Stock-based
compensation expense(6)

464

748

960

322

492

2,500

15,615

19,495

24,378

18,564

20,984

EBITDA
Adjustments
Management agreement
termination fee(2)

Earn-out obligation(7)
Adjusted EBITDA

Notes:
1. LTM Adjusted EBITDA calculated as YTD September 26, 2015 + Year Ended December 27, 2014 YTD September 27, 2014
2. One-time fee of approx. $3.3 million paid in consideration of termination of management agreement with Roark Capital Management, LLC
3. Includes management fees and other out-of-pocket expenses paid to Roark Capital Management, LLC
4. Represents costs and expenses related to refinancings of our credit agreement and our initial public offering
5. Represents non-cash gains and losses resulting from the sale of company-owned restaurants to a franchisee and associated goodwill impairment
6. Includes non-cash, stock-based compensation
7. Represents an earn-out payment made to our prior owner based on us achieving revenue benchmarks specified in the acquisition agreement governing our purchase.
There are no further obligations related to the earn-out remaining under the acquisition agreement

24

QUARTERLY HISTORICAL ADJUSTED

EBITDA RECONCILIATION
In $000s
Year Ended
December 29, 2012

Year Ended
December 28, 2013

Year Ended
December 27, 2014

Quarter Ended
September 27, 2014

Quarter Ended
September 26, 2015

Net income

3,580

7,530

8,986

1,993

3,173

Interest expense, net

2,431

2,863

3,684

876

800

Income tax expense

3,000

4,493

5,312

1,178

1,784

Depreciation and
amortization

2,930

3,030

2,904

690

636

11,941

17,916

20,886

4,737

6,393

Management fees(2)

422

436

449

111

Transaction costs(3)

308

395

2,169

776

Gains and losses on

disposal of assets(4)

(20)

(86)

Stock-based
compensation expense(5)

464

748

960

112

150

2,500

15,615

19,495

24,378

5,736

6,543

EBITDA
Adjustments
Management agreement
termination fee(1)

Earn-out obligation(6)
Adjusted EBITDA

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 refinancings of our credit agreement and our initial public offering
4. Represents non-cash gains and losses resulting from the sale of company-owned restaurants to a franchisee and associated goodwill impairment
5. Includes non-cash, stock-based compensation
6. Represents an earn-out payment made to our prior owner based on us achieving revenue benchmarks specified in the acquisition agreement governing our purchase.
There are no further obligations related to the earn-out remaining under the acquisition agreement

25