Wingstop UK bought out by private equity firm in £400m deal

Wingstop UK, renowned for its flavoured wings, has just announced a significant move, with the sale of a majority stake to the well-established US private equity firm, Sixth Street. Although financial specifics weren't made public, indications point to a deal value in the realm of £400 million.

The franchise boasts a strategic edge as Sixth Street steps in with a controlling share, while the original trio who set up Wingstop UK – responsible for launching their debut store at Cambridge Circus in London back in 2018 – stay invested with a minority stake, as reported by City AM.

Speaking with City AM in an April interview, co-founder Herman Sahota highlighted the grand vision behind Wingstop's inception. With no prior experience running restaurants, the founders boldly reached out to the US-based Wingstop with a blind pitch.

"We’d identified a market position for a fast casual player to come into the UK, similar to what we’ve seen with Five Guys in the burger space," Sahota articulated.

As of 31 March, Wingstop had introduced 42 new outlets within the fiscal year and is on course to manage 57 UK venues by the end of the year, positioning itself as the nation's fastest-expanding restaurant label. Focusing largely on a youthful demographic, the brand has garnered endorsements from celebrities including rap artists Stormzy and AJ Tracey.

Fresh off the press last week was the news that Wingstop had managed to more than double its annual sales, recording £84.6 million in turnover for the year ending on 31 March 2024 and pocketing pre-tax profits of £3.5 million. By the close of this year, revenue forecasts are hoping to cross the £150 million mark.

In August information came to light revealing that Wingstop UK, initially majority-owned by its trio of founders, was actively seeking new ownership. "This is a major step in our journey as we build the pre-eminent fast casual restaurant brand in the UK and Ireland," stated Wingstop UK CEO, Chris Sherriff.