Wingstop UK sold for over £400m

The UK franchise of Wingstop has been sold to US investment firm Sixth Street as it looks to continue its expansion.

 

Lemon Pepper Holdings, the master franchisee for the chicken wing chain in the UK and Ireland, is understood to have sold the business for more than £400m originally reported.

 

Wingstop made its UK debut in London in 2018 and has grown to 57 sites and created over 2,500 jobs. It comes amid a boom in popularity for fried chicken, with other US chains Popeyes and Dave’s Hot Chicken planning expansion in the UK.

 

Wingstop is aiming to reach 200 restaurants within the next five years with revenue expected to exceed £150m and the end of the year. Pre-tax profits hit £3.5m in the year to March 2024, a turnaround from a £2m loss the previous 12 months.

 

Chris Sherriff, chief executive at Wingstop UK: “This is a major step in our journey as we build the pre-eminent fast casual restaurant brand in the UK and Ireland. 2025 is shaping up to be another landmark year and our focus remains on growing sustainably with the agility to seize the right opportunities as they arise.”

 

Sixth Street already owns Wingstop franchise Far West Services in the US and has also backed Airbnb, Spotify and football Club Real Madrid.

 

Kayvan Heravi, co-head of consumer at Sixth Street: “We believe that the opportunity for the brand globally, and in the UK and Ireland specifically, is only just beginning.”

 

Lemon Pepper Holdings’ founders Tom Grogan, Herman Sahota and Saul Lewin will retain a minority stake in the business, according to the Sunday Times.

 

Wingstop was founded in Dallas, Texas in 1994 and now operates and franchises more than 1,500 locations worldwide.

 

Goldman Sachs International acted as sole financial advisor to Wingstop UK alongside DLA Piper, KPMG, Jamieson, OC&C and HNH.

 

Sixth Street was advised by North Point, Lazard & Co., Cleary Gottlieb Steen & Hamilton LLP, and PwC.