Wingstop UK returns to profit amid sale rumours

US chicken chain Wingstop has said it sees “strong growth prospects” in the UK amid rumours the business has been put up for sale.

Lemon Pepper Holdings, the master franchisee of Wingstop UK, reportedly hired Goldman Sachs to run a sale process earlier this summer.

Revenue at the chicken chain rose 122% to £84.7m in the year ended 31 March 2024 as it opened 12 new restaurants, filings show.

Wingstop UK also posted a pre-tax profit of £3.5m, a turnaround from a £2m loss the previous 12 months.

The group opened its first London restaurant in 2018 and is set to end 2024 with 57 UK sites.

“The directors continue to believe that there are strong growth prospects in the premium fast casual chicken market and intend to continue the roll out of Wingstop in the UK,” director Paddy Bamford wrote in the company’s accounts.

“Despite the macro headwinds we have been facing in terms of inflationary pressures on utilities, labour and cost of sales, Lemon Pepper Holdings Limited has been able to maintain and improve profitability across its estate.”

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

The US parent company became a minority investor in the UK business in 2021, which has helped drive further expansion. In 2022 Lemon Pepper Holdings secured a multi-million-pound debt facility to fund more growth.

Lemon Pepper Holdings declined to comment on the sale rumours earlier this year.