Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-K

(Mark one)


☒			ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 28, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission File No. 001-37425


WINGSTOP INC.
(Exact name of registrant as specified in its charter)


Delaware						47-3494862
(State or other jurisdiction of incorporation or organization)						(IRS Employer Identification No.)
2801 N Central Expressway Suite 1600 Dallas, Texas						75204
(Address of principal executive offices)						(Zip Code)

(972) 686-6500

(Registrant’s telephone number, including area code)


Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	WING	NASDAQ Global Select Market
Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. x Yes ¨ No

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. ¨ Yes x No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes ¨ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). x Yes ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

☐

Non-accelerated filer

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. x

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to § 240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes x No

As of June 28, 2024, the aggregate market value of the registrant’s outstanding common equity held by non-affiliates was approximately $12.4 billion, based on the closing price of the registrant’s common stock on June 28, 2024, the last trading day of the registrant’s most recently completed fiscal second quarter.

As of February 18, 2025, there were 28,662,645 shares of common stock, par value of $0.01 per share, outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the proxy statement for the registrant’s 2025 annual meeting of stockholders, which will be filed no later than 120 days after the end of the registrant’s fiscal year ended December 28, 2024, are incorporated by reference into Part III of this report.

TABLE OF CONTENTS

PART I


		Page
Item 1.	Business	5
Item 1A.	Risk Factors	11
Item 1B.	Unresolved Staff Comments	26
Item 1C.	Cybersecurity	26
Item 2.	Properties	28
Item 3.	Legal Proceedings	28
Item 4.	Mine Safety Disclosures	28

PART II


Item 5.	Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	29
Item 6.	Reserved	30
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	31
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	39
Item 8.	Financial Statements and Supplementary Data	39
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	39
Item 9A.	Controls and Procedures	40
Item 9B.	Other Information	42
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	42

PART III


Item 10.	Directors, Executive Officers and Corporate Governance	43
Item 11.	Executive Compensation	43
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	43
Item 13.	Certain Relationships and Related Transactions, and Director Independence	43
Item 14.	Principal Accountant Fees and Services	43

PART IV


Item 15.	Exhibits and Financial Statement Schedules	44
Item 16.	Form 10-K Summary	46
Signatures		47

Cautionary Note Regarding Forward-Looking Statements

This report includes statements of our expectations, intentions, plans and beliefs that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are intended to come within the safe harbor protection provided by those sections. These statements, which involve risks and uncertainties, relate to the discussion of our business strategies and our expectations concerning future operations, sales, margins, profitability, net new units, trends, liquidity and capital resources and to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable. These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms “may,” “will,” “should,” “expect,” “intend,” “plan,” “outlook,” “anticipate,” “believe,” “think,” “estimate,” “seek,” “predict,” “can,” “could,” “project,” “potential” or, in each case, their negative or other variations or comparable terminology, although not all forward-looking statements are accompanied by such terms. Examples of forward-looking statements in this Annual Report on Form 10-K include, but are not limited to, our expectations with respect to our growth, strategic initiatives, and future operations, liquidity, expenses, and consumer appeal. These forward-looking statements are made based on expectations and beliefs concerning future events affecting us and are subject to uncertainties, risks, and factors relating to our operations and business environments, all of which are difficult to predict and many of which are beyond our control, that could cause our actual results to differ materially from those matters expressed or implied by these forward-looking statements. Such risks and other factors include those listed in “Item 1A. Risk Factors,” and elsewhere in this report.

When considering forward-looking statements in this report or that we make in other reports or statements, you should keep in mind the cautionary statements in this report and future reports we file with the Securities and Exchange Commission (the “SEC”). New risks and uncertainties arise from time to time, and we cannot predict when they may arise or how they may affect us. Any forward-looking statement in this report speaks only as of the date on which it was made. Except as required by law, we assume no obligation to update or revise any forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in any forward-looking statements, even if new information becomes available in the future.

PART I


Item 1.			Business

Throughout this report, unless the context indicates otherwise, Wingstop Inc. (NASDAQ: WING) and its consolidated subsidiaries are referred to as the “Company,” “Wingstop,” or in the first-person notations of “we,” “us,” and “our.”

General

Wingstop is the largest fast casual chicken wings-focused restaurant chain in the world, with more than 2,550 locations worldwide. The first Wingstop opened in Garland, Texas in 1994, and we began franchising Wingstop restaurants in 1997. Since 2015, Wingstop Inc.’s common stock has traded on the Nasdaq Global Select Market under the symbol “WING.” We are dedicated to serving the world flavor through an unparalleled guest experience and offering of classic wings, boneless wings, tenders, and chicken sandwiches, always cooked to order, and hand-sauced-and-tossed in 12 bold, distinctive flavors.

The Company is primarily a franchisor, with approximately 98% of Wingstop’s restaurants currently owned and operated by independent franchisees. We operate in a single segment for reporting purposes and generate revenues by charging royalties, advertising fees, and franchise fees to our franchisees and by operating a number of our own restaurants. We believe our asset-light, highly-franchised business model generates strong operating margins and requires low capital expenditures, creating stockholder value through strong and consistent free cash flow and capital-efficient growth.

Our Brand

It is our mission to serve the world flavor. We offer our guests fresh, cooked-to-order wings, tenders, and chicken sandwiches with bold, layered flavors that touch all of the senses, and we complement our wings, tenders, and chicken sandwiches with fresh-cut, seasoned fries and fresh, hand-cut carrots and celery. We round out the flavor experience with ranch and bleu cheese dips that are made in-house daily. We never use heat lamps or microwaves in the preparation of our food.

Our 12 flavor offerings, along with limited time offerings of special flavors, create a differentiated experience that drives demand across multiple day parts and occasions. Paired with our numerous order options (dine-in / carryout / delivery; individual / combo meals / family packs) that allow guests to enjoy Wingstop during any occasion, whether it is a quick carry-out snack, a party size order for their favorite group occasion, or delivery for a family meal, we believe this customizable unique experience drives repeat business and brand loyalty.

Our Vision

Our vision is to become a Top 10 Global Restaurant Brand. Based on our internal analysis, we believe there is opportunity for our brand to grow to more than 6,000 restaurants across the United States and to more than 4,000 restaurants internationally. Our approach to becoming a Top 10 Global Restaurant Brand centers around the following key strategic priorities:

–sustaining long-term same store sales growth;

–maintaining best-in-class returns; and

–expanding our global footprint.

The foundation of this approach is our culture, which we define as The Wingstop Way, our investment in people as a competitive advantage necessary to continue to scale our organization for the next phase of growth, and our cultivation of a global mindset.

Sustaining Long-Term Same Store Sales Growth

We believe in sustaining long-term same store sales growth through a combination of brand awareness, menu innovation, delivery, data-driven marketing and maximizing our digital leadership position. Our national advertising program is funded through the Wingstop Restaurants Advertising Fund (the “Ad Fund”), a consolidated not-for-profit advertising fund for which a percentage of gross sales is collected from Wingstop restaurant domestic franchisees and company-owned restaurants to be used for various forms of advertising for the Wingstop brand. Domestic franchisees are required to contribute 5.3% of gross sales to the Ad Fund. The national advertising program supports elevated marketing spend and premium placements through an extensive range of social media and digital marketing channels, including search engine, digital video, and social media advertising, to allow us to target core customers and create top of mind consideration with relevant, impactful messaging.

The national advertising program also supports our digital initiatives and related strategies, including our focused investments in customer relationship management and our proprietary digital platform, which allows us to deploy a digital platform-based marketing strategy. As a result of these investments, we continue to sustain digital sales above 60%.

Maintaining Best-in-Class Unit Economics

We believe the growing popularity of the Wingstop experience and the operational simplicity of our restaurants translate into attractive economics at our franchised and company-owned locations. Existing franchisees accounted for more than 90% of franchised restaurants opened in each of 2023 and 2024, which we believe further underscores our restaurant model’s financial appeal.

Upon the opening of a new restaurant, its sales volume generally builds year after year. Our domestic average unit volume (“AUV”) has grown consistently, approximating $2.1 million during fiscal year 2024. Our domestic operating model provides for a low average initial investment of approximately $535,000, excluding real estate purchase or lease costs and pre-opening expenses. In year two of operation of a new restaurant, we target a franchisee unlevered cash-on-cash return of approximately 70%+. We believe low entry costs and high returns provide a compelling investment opportunity for our franchisees that has helped drive the continued growth of our system.

Expanding Our Global Footprint

We believe in the importance of building one global brand with a distinctive flavor experience that is consistent around the globe. This includes laying the groundwork for a global supply chain to support expansion of our global footprint, as well as creating a consistent digital presence centered around our global technology strategy which includes expanding our best-in-class domestic digital platform internationally.

We believe that there is significant opportunity to continue to expand globally, and we intend to focus our efforts on increasing our geographic penetration in both existing and new domestic markets, as well as international markets. We believe our highly-franchised model positions us for continued strong unit growth over the medium- and long-term. We expect franchisee demand for our brand, supported by compelling unit economics, operational simplicity, low entry costs, and flexible real estate profile, to drive global restaurant growth.

We believe we can achieve our domestic restaurant potential by doubling our current footprint through expansion in both existing and emerging markets. Our domestic market expansion strategy focuses on maximizing our brand market share and visibility in key priority markets. We have a robust development pipeline with approximately 90% of our domestic commitments as of December 28, 2024 from existing franchisees, supporting the strength of our restaurant business model and our positive franchisor-franchisee relationships.

We also believe that there is a significant opportunity to grow our business internationally. In fiscal year 2024, we opened 71 net new international restaurants, and as of December 28, 2024, we had 359 international restaurants located in 11 countries and U.S. territories, all of which were franchised.

We believe that our restaurant operating model translates well internationally based on our small real estate footprint, our simplicity of operations, the universal and broad appeal of chicken, and our ability to customize our wide variety of flavors to local tastes.

Our Franchise

Franchise Overview

Our franchisees operated a total of 2,513 restaurants in 45 states and 12 countries and U.S. territories as of December 28, 2024. We have rigorous qualification criteria and training programs for our franchisees and require them to adhere to strict operating standards. We work hard to ensure that every Wingstop franchise location meets the same quality and customer service benchmarks in order to preserve the consistency and reliability of the Wingstop brand.

Franchisees (along with their managers) must attend and successfully complete a four-week training program prior to opening a new franchise restaurant. Our training program covers various topics including Wingstop culture, food preparation and storage, food safety, cleaning and sanitation, marketing and advertising, point of sale (“POS”) systems, accounting, and hospitality, among others.

All of our franchise agreements require that each franchised restaurant be operated in accordance with our defined operating procedures, adhere to the menu we establish, and meet applicable quality, service, health, and cleanliness standards. We may terminate the franchise rights of any franchisee who does not comply with our standards and requirements. We believe that maintaining superior food quality, an inviting and energetic atmosphere, and excellent guest service are critical to the reputation and success of our concept. Therefore, we enforce the contractual requirements of our franchise agreements.

We have a broad and diversified domestic franchisee base. Since 2014, the number of franchisees who own ten or more restaurants has more than doubled. This increase is consistent with our strategy to grow with our existing franchisees. As of December 28, 2024, our domestic franchise base of 196 franchisees had an average restaurant ownership of approximately eleven restaurants per franchisee and an average tenure of ten years.

U.S. Franchise Agreements

We enter into area development agreements with U.S. franchisees, pursuant to which they are granted the right to develop restaurants in a defined market area. Franchisees pay a $10,000 development fee per restaurant to-be-developed at the time a development agreement is signed, which fee is not refundable. When a mutually agreeable site for a restaurant has been chosen, we enter into a franchise agreement with the franchisee, under which the franchisee is generally granted the right to operate a restaurant in a particular location, typically providing for a 10-year initial term, with an opportunity to enter into one or more renewal franchise agreements subject to certain conditions. We generally update and/or revise our franchise agreement on an annual basis and, as a result, the agreements we enter into with individual franchisees may vary. Our franchise documents currently provide that franchisees must pay a franchise fee of $20,000 for each restaurant opened.

Under our current standard franchise agreement, each franchisee is required to pay us a royalty of 6% of their gross sales net of discounts. Each restaurant also contributes 5.3% of gross sales net of discounts to the Ad Fund to fund national marketing and advertising campaigns. The national advertising fund contribution rate increased to 5.3% from 5%, effective the first day of the fiscal second quarter 2024. These funds are managed by the Ad Fund and are primarily used to create advertising content and purchase digital and television advertising on a national level, as well as to support digital and technology-related costs. Beginning the fiscal first quarter of 2025, the advertising fund contribution rate will increase to 5.5% to support digital and technology-related costs.

International Franchise Agreements

Our markets outside of the United States are operated by master franchisees with franchise and distribution rights for entire regions or countries. The master franchise agreement typically requires the franchisees to open a minimum number of restaurants within a specified period. The master franchisee is generally required to pay an initial, upfront development fee for the territory as well as a franchise fee for each restaurant opened. Under our current standard master franchise agreement, each master franchisee is also required to pay a continuing royalty fee as a percentage of sales, which varies among international markets, but is currently set at 6%.

Suppliers and Distribution

Our franchisees are required to purchase all chicken, groceries, produce, beverages, equipment and signage, furniture, fixtures, logo-imprinted paper goods, and cleaning supplies solely from suppliers that we designate and approve. Our supply partners are required to meet strict quality standards. We regularly inspect vendors to ensure our standards are being met and that prices offered are competitive. We also have a Global Supplier Code of Conduct that outlines the standards and business practices that we expect of all our direct and extended suppliers as we strive to meet the highest standards of business conduct.

The principal raw materials for a Wingstop restaurant operation are bone-in and boneless chicken wings, tenders, and chicken fillets. Therefore, chicken is our largest product cost item and represented approximately 57.6% of all purchases for the 2024 fiscal year. Company-owned and franchised restaurants purchase their bone-in and boneless chicken wings, chicken tenders, and chicken fillets from suppliers that we designate and approve. Our chicken supply is diversified both geographically and with a broad range of suppliers supporting the Wingstop system. We designate sources for potatoes to ensure that they are grown to our specifications. We also require franchisees to use our proprietary sauces, seasonings, and spice blends and to purchase them and other proprietary products only from designated sources.

All food items and packaging goods for Wingstop restaurants in the U.S. are currently supplied through one distributor. Currently, there are 21 geographically diverse distribution centers, which carry all products required for a Wingstop restaurant and service all of Wingstop’s domestic restaurants. The distributor is contractually obligated to deliver products to our restaurants at least twice weekly, and provides consolidated deliveries with a tightly controlled and monitored cold chain for

perishable items. The distributor’s national distribution system has a documented recovery plan to handle any disruption. Wingstop contracts directly with manufacturers to sell products to the distributor, who in turn receives a fee for delivering these items to our restaurants. The majority of Wingstop’s highest-spend items are formula or fixed-contract priced. Wingstop has also negotiated agreements with its beverage suppliers to offer beverage dispensing systems, along with associated branded products, in all Wingstop restaurants.

Information / Technology Systems

We have core information systems in place that, together with focused investments we are making in technology (including our proprietary digital platform), we believe are designed to scale and support our future growth plans. We specify a POS system and restaurant management system in all domestic restaurants that help facilitate the operation of the restaurants by recording sales, purchasing and inventory of goods, managing of labor and assessing restaurant performance. Our POS system and restaurant management system is configured to record and store financial information in a manner that we specify, and we require franchisees to provide us with continual and unlimited independent access to all information on each POS system.

We have a proprietary online ordering platform and mobile ordering applications that integrate with third party delivery providers and our POS system, which makes it easy for our guests to order-ahead, and which we believe leads to higher check averages.

We require our franchisees’ electronic information systems, including POS systems, to comply with and be maintained in accordance with established network security standards, including applicable Payment Card Industry and data privacy standards.

Human Capital Resources

As of December 28, 2024, we employed 1,335 employees, affectionately referred to as “team members,” of whom 325 were full-time corporate-based and regional personnel. The remainder were part-time or restaurant-level team members. None of our team members are represented by a labor union or covered by a collective bargaining agreement, and we believe that we have good relations with our team members. Our franchise owners are independent business owners, so they and their employees are not considered our team members and are therefore not included in our team member count.

Our human capital objectives include attracting, retaining, and accelerating the growth of our team members. Our team member programs are designed to develop talent and prepare team members for advancement and leadership positions in the future; provide market-competitive pay and benefits; focus on team members’ health, safety and well-being; enhance our culture through our continuing efforts to make our workplace more engaging and inclusive; and acquire talent and facilitate internal talent mobility to create a high-performing and diverse workforce.

Diversity, Equity, and Inclusion

We are committed to fostering an environment of diversity, equity, and inclusion, including among our board of directors, and having diverse representation across all levels of our workforce. Examples of some of our recent efforts and metrics include:

•diversity and inclusion education training was offered to team members throughout the year;

•65% of our franchisees and 50% of our board of directors identify as diverse;

•90% of our team members identify as diverse; and

•we are a member of the Women’s Foodservice Forum and the Multicultural Foodservice & Hospitality Alliance Group.

We are also committed to providing competitive pay to compensate and reward our team members. All corporate management and staff and restaurant management positions for company-owned restaurants, including hourly assistant managers and shift leaders, are eligible for performance-based cash incentives. Our incentive plan reinforces and rewards individuals for achievement of specific company and/or restaurant business goals.

We offer comprehensive benefit programs to eligible team members. Our core health and welfare benefits are supplemented with a variety of voluntary benefits and paid time away from work programs. We maintain a strong focus on team member well-being, health and safety.

We invest in people and infrastructure to build the organization for the next level. In addition to seeking to acquire new talent in the marketplace that share our values and goals, we recognize and support the growth and development of our team members

and offer opportunities to participate in regular talent and development planning reviews to assist us with growing our internal restaurant teams.

Government Regulation

We and our franchisees are subject to various federal regulations affecting the operation of our business. We and our franchisees are subject to the U.S. Fair Labor Standards Act, the U.S. Immigration Reform and Control Act of 1986, the Occupational Safety and Health Act, and various other federal and state laws governing matters such as minimum wage requirements, overtime, fringe benefits, workplace safety and other working conditions and citizenship requirements. A significant number of our and our franchisees’ food service personnel are paid at rates related to the applicable minimum wage, and past increases in the minimum wage have increased our and our franchisees’ labor costs, as would future increases. Our distributors and suppliers also may be affected by higher minimum wage and benefit standards, which could result in higher costs for goods and services supplied to us and our franchisees.

We are subject to extensive and varied state and local government regulation affecting the operation of our business, as are our franchisees, including regulations relating to public and occupational health and safety, sanitation, fire prevention, and franchise operation. Each Wingstop restaurant is subject to licensing and regulation by a number of governmental authorities, including with respect to zoning, health, safety, the preparation and sale of food, sanitation, food safety, nutritional information disclosure, environmental, and building and fire safety, in the jurisdiction in which the restaurant is located. Our and our franchisees’ licenses to sell alcoholic beverages must be renewed annually and may be suspended or revoked at any time for cause, including violation by us or our employees, or our franchisees or their employees, of any law or regulation pertaining to alcoholic beverage control, such as those regulating the minimum age of patrons or employees, advertising, wholesale purchasing, and inventory control.

In addition, we are subject to the rules and regulations of the Federal Trade Commission (the “FTC”) and various state laws regulating the offer and sale of franchises. The FTC and various state franchise laws require that we furnish a franchise disclosure document containing certain information to prospective franchisees in advance of any franchise sale or the receipt of any consideration for the franchise, and a number of states require registration of the franchise disclosure document at least annually with state authorities. We are operating under exemptions from registration (though not disclosure) in several states based on our qualifications for exemption as set forth in each such state’s laws. Substantive state laws that regulate the franchisor-franchisee relationship, including in the areas of termination and non-renewal, presently exist in a substantial number of states. We believe that our franchise disclosure document and franchising procedures comply in all material respects with both the FTC guidelines and all applicable state laws regulating franchising in those states in which we have offered franchises.

Our international franchised restaurants are subject to national and local laws and regulations that are often similar to those affecting our U.S. restaurants. We believe that we have established procedures at our international franchised restaurants that provide reasonable assurance that our international franchised restaurants comply in all material respects with the laws of the applicable foreign jurisdiction.

Other factors pertaining to our competitive position in the industry are addressed under the section entitled “Risks Related to Our Business and Our Industry” and listed in “Item 1A. Risk Factors” of this report.

Trademarks

We have many registered trademarks and believe that the Wingstop mark and Wingstop names and logos, in particular, have significant value and are important to our business. Our policy is to pursue registration of our trademarks and to vigorously oppose the infringement of any of our trademarks. We license the use of our registered marks to franchisees through franchise agreements.

Environmental Matters

We are not aware of any federal, state or local environmental laws or regulations that we would expect to materially affect our earnings or competitive position or result in material capital expenditures. However, increased focus on environmental matters by legislative, governmental or other authorities may lead to new regulatory initiatives, particularly in the area of climate

change. We cannot predict the effect of possible future environmental legislation or regulations (including those related to climate change). During the 2024 fiscal year, we had no material environmental compliance-related capital expenditures.

Community Involvement

Wingstop Charities, a non-profit organization, is committed to strengthening the communities that we serve by being strong, active, corporate citizens, and good neighbors. We’ve expanded our reach and impact by forming partnerships with No Kid Hungry, St. Jude Children’s Research Hospital, and the American Red Cross, funded by the growth of our Round Up Program, which allows our guests to contribute to the great work of these organizations. Since its inception, Wingstop Charities has awarded more than 300 grants and contributed more than $6 million across three key programs: Community Grants, Team Member Assistance, and the Morrison Family Scholarship Program. To learn more about how Wingstop Charities is making an impact in our local communities, visit www.wingstopcharities.org.

Available Information

We make available, free of charge, through our internet website www.wingstop.com, our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after such material is electronically filed with or furnished to the SEC. Materials filed with the SEC are also available at www.sec.gov.

References to our website addresses or the website addresses of third parties in this report do not constitute incorporation by reference of the information contained on such websites and should not be considered part of this report.


Item 1A.			Risk Factors

Risks Related to Our Business and Our Industry

If we fail to successfully implement our growth strategy, which includes opening new restaurants, our ability to increase our revenue and operating profits could be materially adversely affected.

Our growth strategy relies substantially upon new restaurant development by existing and new franchisees, and we are continuously seeking to identify target markets where we can enter or expand. We and our franchisees face many challenges in opening new restaurants, including:

•selection and availability of, and competition for, suitable restaurant locations;

•availability of financing;

•negotiation of acceptable lease and financing terms;

•securing required governmental permits and approvals, including zoning approvals;

•availability and training of, and compensation for, qualified personnel;

•availability of required restaurant equipment;

•unanticipated increases in construction and development costs; and

•legal and regulatory requirements applicable to our industry.

In particular, because substantially all of our new restaurant development is funded by franchisee investment, our growth strategy is dependent on our franchisees’ (or prospective franchisees’) ability to access funds to finance such development. We do not provide our franchisees with direct financing and therefore if our franchisees (or prospective franchisees) are not able to obtain independent financing at commercially reasonable rates, or at all, they may be unwilling or unable to invest in the development of new restaurants, and our future growth could be adversely affected. To the extent our franchisees are unable to open new restaurants at the level that we anticipate, our revenue growth would come primarily from growth in same store sales. Our failure to add a significant number of new restaurants or grow same store sales would adversely affect our ability to increase our revenue and operating income and could materially adversely affect our business, financial condition, and operating results.

As we continue to grow, our existing systems and processes and personnel may not be adequate to support our continued growth. We may need to upgrade and expand our infrastructure and information systems, automate more processes and hire, train and retain restaurant employees and corporate support staff, all of which may result in increased costs and inefficiencies.

Our success depends in significant part on the future performance of existing and new franchise restaurants, and we are subject to a variety of additional risks associated with our franchisees.

As of December 28, 2024, approximately 98% of our restaurants were operated by franchisees. As a result, a substantial portion of our revenue comes from royalties generated by our franchised restaurants. Accordingly, we are reliant on the performance of our franchisees in successfully operating their restaurants and paying royalties to us on a timely basis. Our franchise system subjects us to a number of risks, any one of which may impact our ability to collect royalty payments from our franchisees, harm the goodwill associated with our franchise, and materially adversely affect our business and results of operations.

Our franchisees are an integral part of our business. We may be unable to successfully implement our growth strategy without the participation of our franchisees and the adherence by our franchisees to our restaurant operation guidelines. Because our ability to control our franchisees is limited, our franchisees may fail to focus on the fundamentals of restaurant operations, such as quality, service, and cleanliness, which would have a negative impact on our success and/or adversely impact the goodwill associated with our franchise. In addition, our franchisees may fail to renovate their existing restaurants or support our marketing initiatives, which could materially adversely affect their sales trends, average weekly sales, and results of operations, thereby impacting royalty revenue. Although we provide frequent training opportunities to our franchisees to ensure consistency among our operations, there may be differences in the quality of operations at our franchised restaurants that impact the profitability of those restaurants. In addition, if our franchisees fail to renew their franchise agreements, our royalty revenue may decrease, which in turn could materially adversely affect our business, financial condition, and operating results.

The failure of our franchisees to comply with applicable laws could negatively impact our reputation or results of operations. For example, our franchisees are solely responsible for making their own hiring, firing and disciplinary decisions, scheduling hours and establishing compensation. Any failure by our franchisees to comply with applicable employment laws could negatively impact our reputation and our ability to hire and/or retain employees. Furthermore, if one of our key franchisees

were to become insolvent or otherwise were unable or unwilling to pay us royalties, Ad Fund contributions, or other amounts owed, our business, financial condition, and results of operations could be adversely affected. In a franchisee bankruptcy, the bankruptcy trustee may reject its franchise agreements under the applicable bankruptcy code, in which case there would be no further royalty payments from such franchisee. The amount of the proceeds, if any, that may ultimately be recovered in a bankruptcy proceeding of such franchisee may not be sufficient to satisfy a damage claim resulting from such rejection.

If we fail to identify, recruit and contract with a sufficient number of qualified franchisees, our ability to open new franchised restaurants and increase our revenue could be materially adversely affected.

The opening of additional franchised restaurants depends, in part, upon the availability of prospective franchisees who meet our criteria. We may not be able to identify, recruit or contract with suitable franchisees in our target markets on a timely basis or at all. Although we have developed criteria to evaluate and screen prospective franchisees, our franchisees may not ultimately have the business acumen or be able to access the financial or management resources that they need to open and successfully operate the restaurants contemplated by their agreements with us. Existing franchisees may elect to cease restaurant development for other reasons and state franchise laws may limit our ability to terminate or modify these license agreements. If any of these situations occur, our growth may be slower than anticipated, which could materially adversely affect our ability to increase our revenue and materially adversely affect our business, financial condition and results of operations.

Also, the number of new franchised Wingstop restaurants that actually open in the future may differ materially from the number of signed commitments from existing and new franchisees. Historically, a portion of our signed commitments have not ultimately opened as new franchised Wingstop restaurants. The historic conversion rate of signed commitments to new franchised Wingstop restaurants may not be indicative of the conversion rates we will experience in the future, and the total number of new franchised Wingstop restaurants actually opened in the future may differ materially from the number of signed commitments disclosed at any point in time.

Our stated sales to investment ratio and target unlevered cash-on-cash return may not be indicative of future results of any new franchised restaurant.

Initial investment levels, AUV levels, restaurant-level operating costs and restaurant-level operating profit of any new restaurant may differ from average levels experienced by franchisees in prior periods due to a variety of factors, and these differences may be material. Accordingly, our stated sales to investment ratio and average unlevered cash-on-cash return may not be indicative of future results of any new franchised restaurant. In addition, estimated initial investment costs and restaurant-level operating costs are based on information self-reported by our franchisees and have not been verified by us. Furthermore, performance of new restaurants is impacted by a range of risks and uncertainties beyond our or our franchisees’ control, including those described by other risk factors described in this report.

Food safety and food-borne illness concerns may have a material adverse effect on our business.

Food safety is a top priority, and we dedicate substantial resources so that our customers enjoy safe, high quality food products. However, food-borne illnesses, such as salmonella, E. coli infection, or hepatitis A, and food safety issues, including food tampering or contamination, have occurred in the food industry in the past, and could occur and impact our business in the future. Any report or publicity linking our restaurants to instances of food-borne illness or food safety issues could materially adversely affect our brand and reputation as well as our revenue and profits. Even instances of food-borne illness or food safety issues occurring solely at our competitors’ restaurants could result in negative publicity about the food service industry or fast casual restaurants generally and adversely impact our restaurants.

In addition, our reliance on third-party food suppliers and distributors increases the risk that food-borne illness incidents could be caused by factors outside of our control and that multiple restaurants could be affected rather than a single restaurant. We cannot ensure that all food items are properly maintained during transport throughout the supply chain or that our employees and our franchisees and their employees will identify all products that may be spoiled and should not be used. Our industry has also long been subject to the threat of food tampering by suppliers, employees, third-party delivery service providers, and others such as the addition of foreign objects in the food that we sell. Reports, whether or not true, of injuries caused by food tampering have in the past severely injured the reputations and brands of restaurant chains in the quick service restaurant market and could affect us in the future as well. If our customers become ill from food-borne illnesses or injured from food tampering, we could also be forced to temporarily close some restaurants. Moreover, any instances of food contamination, whether or not at our restaurants, could subject our restaurants or our suppliers to a food recall pursuant to the Food and Drug Administration Food Safety Modernization Act.

Our expansion into new and existing markets may present increased risks.

Some of our new restaurants are located in markets where there may be limited or no market recognition of our brand. Those markets may have competitive conditions, consumer tastes and discretionary spending patterns that are different from those in our existing markets, and we may encounter well-established competitors with substantially greater financial resources than us. As a result, those new restaurants may be less successful than restaurants in our existing markets.

We may need to build brand awareness in new markets through greater investments in advertising and promotional activity than we originally planned, which could negatively impact the profitability of our operations in such new markets. Our franchisees may find it more difficult in new markets to hire, motivate and keep qualified employees who can project our vision, passion and culture. In addition, we may have difficulty finding reliable suppliers or distributors or ones that can provide us, either initially or over time, with adequate supplies of ingredients meeting our quality standards. Restaurants opened in new markets may also have lower average restaurant sales than restaurants opened in existing markets and may take longer to, or fail to, grow and reach expected sales and profit levels. Additionally, new markets may have higher rents and labor costs. These factors could negatively impact our unit economics and overall profitability.

We also intend to continue opening new franchised restaurants in our existing markets as a core part of our growth strategy. As a result, the opening of a new restaurant in or near markets in which our restaurants already exist could adversely affect the sales of our existing restaurants.

Our success depends on our ability to compete with many other restaurants.

The restaurant industry in general, and the fast casual category in particular, are intensely competitive, and we compete with many well-established restaurant companies on the basis of food taste and quality, price, service, value, location, convenience, digital engagement, delivery and overall customer experience. Our competitors include individual restaurants and restaurant chains that range from independent local operators to well-capitalized national and regional restaurant companies, including restaurants offering chicken wings, tenders, and chicken sandwiches, as well as dine-in, carry-out, and delivery services offering other types of food.

As our competitors expand their operations or as new competitors enter the industry, we expect competition to continue to intensify. Should our competitors increase their spending on advertising and promotions or if their advertising and promotions are more effective, we could experience a loss of customer traffic to our competitors and a material adverse effect on our business, financial condition, and results of operations. We and our franchisees compete with other restaurant chains and other retail businesses for quality site locations, management, hourly employees, and we also compete for qualified franchisees. We also have experienced and will likely continue to face the risk that new or existing competitors will copy our business model, menu options, presentation, ambiance, marketing or advertising, among other things. Consumer tastes, nutritional and dietary trends, traffic patterns, and the type, number, and location of competing restaurants often affect the restaurant business, and our competitors may react more efficiently and effectively to those conditions.

Moreover, we may also compete with companies outside the fast casual, quick service, and casual dining segments of the restaurant industry, such as deli sections and in-store cafés of several major grocery store chains and from home delivery meal plan services, as well as from convenience stores and other dining outlets. These competitors may have, among other things, a more diverse menu, lower operating costs, better locations, better facilities, better management, more effective marketing, more efficient operations, stronger brand recognition, more loyal customer bases and more convenient offerings than we have. If we are unable to compete effectively, it could decrease our traffic, sales and profit margins, which could materially adversely affect our business, financial condition, and results of operations.

Changes in food and supply costs could materially adversely affect our results of operations.

Our profitability depends in part on our ability to anticipate and react to changes in food and supply costs. There are no established fixed price markets for bone-in chicken wings. As a result, we are subject to prevailing market conditions and remain susceptible to volatility in food costs. The cost of chicken can be volatile. Although we enter into arrangements in an effort to mitigate the volatility of food costs, any increase in the prices of the ingredients most critical to our menu, particularly chicken, could materially adversely affect our operating results. Food costs may also increase as a result of factors beyond our control, such as inflation, general economic conditions, seasonal fluctuations, weather conditions, energy costs, feed prices, labor shortages, industry demand, food safety concerns, product recalls and government regulations. Increased weather volatility or other long-term changes in weather patterns, including those related to climate change, could have a significant impact on the price or availability of some of our ingredients. Additionally, avian influenza, or similar poultry-related diseases, may negatively affect the supply chain by increasing costs and limiting availability of chicken. As a result, we may not be able

to anticipate or successfully react to changing food costs, including the price of bone-in chicken wings, by adjusting our purchasing practices, increasing our menu prices to pass along commodity price increases to our customers or making other operational adjustments, which could materially adversely affect the demand for product and our operating results.

Interruptions in the supply of product to company-owned restaurants and franchisees could materially adversely affect our revenue.

In order to maintain quality-control standards and consistency among restaurants, our franchise agreements obligate our franchisees to obtain food and other supplies from preferred suppliers approved by us in advance. Currently, all food items and packaging goods for Wingstop restaurants are currently sourced through one distributor with 21 geographically diverse distribution centers. In this regard, we and our franchisees depend on a group of suppliers and our distributor for food ingredients, beverages, paper goods, and distribution. We and our franchisees bear risks associated with the timeliness, solvency, reputation, labor relations, freight costs, price of raw materials, and compliance with health and safety standards of each supplier and our distributor. We have little control over such suppliers or the distributor. Disruptions in these relationships may reduce company-owned restaurant and franchisee sales and, in the case of reduced franchisee sales, our royalty income. Overall difficulty of suppliers meeting restaurant product demand, interruptions in the supply chain, obstacles or delays in the process of renegotiating or renewing agreements with preferred suppliers or the distributor, financial difficulties experienced by suppliers or the distributor, or the deficiency, lack, or poor quality of alternative suppliers or distributors could adversely impact company-owned restaurant and franchisee sales, which could materially adversely affect our business, financial condition, and operating results and, in the case of reduced franchisee sales, would reduce our royalty income and revenue. In addition, our focus on a limited menu could make these consequences more severe.

Cyber incidents or deficiencies in cybersecurity could negatively impact our business by causing data loss, a disruption to our operations, a compromise or corruption of confidential or personal information, damage to our employee and business relationships and reputation, and/or litigation and liability, all of which could subject us to loss and harm our brand.

As our brand profile and our reliance on technology has increased, so have the risks posed to our systems, both internal and those we have outsourced. Additionally, the data integration and complexity of our technology systems have increased, particularly in our international markets and our information technology systems include the use of electronic payment methods and the collection and storage of personal information from individuals. These conditions expose us and our franchisees to increased risk of cyber incidents, privacy and/or security breaches or intrusions, and other risks, such as an intentional attack or an unintentional event that results in disruptions to our operations. We rely on commercially available systems, software, tools and monitoring to provide security for processing, transmitting, and storing such information. The use of personally identifiable information by us is regulated by foreign, federal, and state laws, which continue to evolve, as well as by certain third-party agreements. As privacy and information security laws and regulations change, we may incur additional costs to ensure that we remain in compliance with those laws and regulations. See “Changing regulations relating to privacy, information security, and data protection could increase our costs and affect or limit how we collect and use personal information” below for a further discussion on privacy, information security, and data protection regulations.

Our franchisees, contractors, and third parties with whom we do business have experienced cyber incidents and security breaches or intrusions in which confidential or personal information could have been stolen and we, our franchisees, contractors, and third parties with whom we do business may experience cyber incidents and security breaches or intrusions in which confidential or personal information is stolen in the future. Third parties may have the technology or know-how to breach the security of confidential or personal information collected, stored or transmitted by us or our franchisees, and our and their security measures and those of third parties with whom we do business, including technology vendors, solution providers, software manufacturers and supply chain vendors, may not effectively prohibit others from obtaining improper access to this information. Third parties have been and will likely be able to continue to develop and deploy viruses, worms and other malicious software programs, such as ransomware, that attack our systems and the systems of our franchisees’ and third parties with whom we do business or otherwise exploit any security vulnerabilities. The techniques used to obtain unauthorized access, disable or degrade service, or sabotage systems change frequently and are often difficult to detect for long periods of time, which may cause a breach to go undetected for an extensive period of time. Advances in computer and software capabilities, technology, new tools or social engineering tactics, and other developments may increase the risk of such a breach. If a person is able to circumvent the security measures of our business, our franchisees’ businesses or those of other third parties, he or she could destroy or steal valuable information or disrupt the operations of our business. In addition, our franchisees, contractors or third parties with whom we do business or to whom we outsource business operations may attempt to circumvent our security measures in order to misappropriate confidential information and may purposefully or inadvertently cause a breach involving such information. The costs to us to eliminate any of the foregoing cybersecurity vulnerabilities or to address a cyber incident could be significant and have a material adverse impact on our business, financial condition, and results of operations. The rapid evolution and increased adoption of artificial intelligence technologies may intensify our cybersecurity risks by making

cyber incidents more difficult to detect, contain, and mitigate for us, our franchisees, contractors, and third parties with whom we do business.

If we, our employees, franchisees, or vendors fail to comply with applicable laws, regulations, or contract terms, and covered information is obtained by unauthorized persons, used inappropriately, or destroyed, it could adversely affect our reputation, disrupt our operations and result in costly litigation, judgments, or penalties resulting from violation of laws and payment card industry regulations. Any such claim or proceeding could cause us to incur significant unplanned expenses and significantly harm our reputation, which could have a material adverse impact on our business, financial condition, and results of operations. A cyber incident could also require us to provide notifications, result in adverse publicity, loss of sales and profits, increase fees payable to third parties, and result in penalties or remediation and other costs that could materially adversely affect the operation of our business, financial condition, and results of operations. In addition, our cyber liability coverage may be inadequate or may not be available in the future on acceptable terms, or at all, and defending a suit, regardless of its merit, could be costly and divert management’s attention. See “Item 1C. Cybersecurity” for more information about the Company’s cybersecurity risk management and governance.

Our increasing reliance on credit or debit cards for payment increases the risk of regulatory compliance and security breaches or intrusions, which could materially adversely impact our business, financial condition, or results of operations.

The majority of our restaurant sales are paid by credit or debit cards. In connection with credit or debit card transactions in-restaurant, we and our franchisees collect and transmit confidential information to card processors. The systems currently used for transmission and approval of electronic payment transactions, and the technology utilized in electronic payments themselves, all of which can put electronic payment at risk, are determined and controlled by the payment card industry, not by us, through enforcement of compliance with the Payment Card Industry - Data Security Standards (as modified from time to time, “PCI DSS”). We and our franchisees must abide by the PCI DSS in order to accept electronic payment transactions. If we or our franchisees fail to abide by the PCI DSS, we or our franchisees could be subject to fines, penalties or litigation, which could materially adversely impact our business, financial condition, or results of operations. In addition, we or our franchisees have been and will likely continue to become subject to claims for purportedly fraudulent transactions arising out of the actual or alleged theft of credit or debit card information, and we or our franchisees may also be subject to lawsuits or other proceedings relating to these types of incidents.

Changing regulations relating to privacy, information security, and data protection could increase our costs and affect or limit how we collect and use personal information.

The United States, the European Union, and other countries in which we operate are increasingly adopting or revising privacy, information security, and data protection laws and regulations that could have a significant impact on our current and planned privacy, data protection, and information security-related practices, our collection, use, sharing, retention, and safeguarding of consumer and/or employee information, and some of our current or planned business activities. In the United States, these include rules and regulations promulgated under the authority of the FTC, the Health Insurance Portability and Accountability Act of 1996, federal and state labor and employment laws, state data breach notification laws, and state privacy laws such as the California Consumer Privacy Act of 2018 (the “CCPA”) and the California Privacy Rights Act (the “CPRA”). The CPRA expanded the CCPA’s requirements, restricted the use of certain categories of personal information that we handle, and established a new regulatory agency to implement and enforce the law. A number of other states have enacted similar data privacy laws, and other states and countries are considering passing or expanding privacy laws in the near term. Many of these laws and regulations provide consumers and employees with a private right of action if a covered company suffers a data breach related to a failure to implement reasonable data security measures. For example, the CCPA and CPRA provide a private right of action for certain data breaches coupled with statutory damages under certain circumstances. Compliance with the CCPA, CPRA, and other laws relating to the protection of personal information involve significant costs and could result in significant liability in the event we allow an unauthorized disclosure of personal information. In the European Union, this includes the General Data Protection Regulation (the “GDPR”). We may need to take measures to comply with requirements contained in the GDPR (or similar legislation implemented in the United Kingdom), such as implementing appropriate mechanisms for the cross-border transfer of personal data, follow mandatory data breach notification requirements, and provide robust rights for data subjects. Additionally, several states and localities have also enacted statutes banning or restricting the collection of biometric information. These data privacy and biometric information laws will require us to incur additional costs and expenses in our efforts to comply. An actual or perceived failure to comply with these domestic or international laws and others that may be passed could subject our business to regulatory scrutiny, significant administrative and monetary sanctions, damages under some laws to individuals, and reputational damage. In addition, the FTC and other state and federal agencies have been increasing their scrutiny of the ways in which companies use personally identifiable information for marketing and analytics, as well as the circumstances under which companies share such data with other companies, including social media companies, for such purposes. We may need to continue to make adjustments as updated guidance becomes available, or other privacy,

information security or data protection laws and regulations take effect in jurisdictions in which we currently operate or may in the future operate.

The legal framework around privacy issues is rapidly evolving, as various federal and state government bodies are considering adopting new privacy laws and regulations. These emerging laws and regulations have resulted and will likely continue to result in significant limitations on or changes to the ways in which we can collect, use, host, store, or transmit personal information and other data. Compliance with privacy, data protection, and information security laws to which we are subject could continue to result in additional costs, and our failure to comply with such laws could result in potentially significant regulatory investigations or government actions, penalties or remediation, and other costs, as well as adverse publicity, loss of sales and profits, and an increase in fees payable to third parties. Additionally, the rapid evolution and increased adoption of artificial intelligence technologies and our obligations to comply with emerging laws and regulations may increase scrutiny from or actions by regulators, consumer groups or other third parties, increase the scope of regulation or government restrictions applicable to our business, or subject our business to increased risks of litigation. Each of these implications could materially adversely affect our business, financial condition, and results of operations.

We and our franchisees rely on information technology to process transactions and manage our business, and a disruption or a failure of such systems or issues with our key technology providers or technology could harm our ability to effectively manage our business and/or result in the loss of guests.

Network and information technology systems, including point-of-sale and payment processing systems, technologies supporting our digital and delivery business, technologies that manage our supply chain, and technologies that facilitate collection of cash, payment of obligations, marketing initiatives, employee engagement and payroll processing, and various other processes and procedures, are integral to our business. Our ability to effectively manage our business and coordinate the procurement, distribution and sale of our products depends significantly on the availability, reliability, and security of these systems. Many of these critical systems are provided and managed by third parties, and we are reliant on those third-party providers to implement protective measures that ensure the security and availability of their systems. While we have systems in place to attempt to manage third-party cybersecurity risks, such procedures may not be sufficient to address all potential failures of third-party systems.

In addition, we utilize various computer systems, including our franchisee reporting system, by which our franchisees report their weekly sales and pay their corresponding royalty fees and required Ad Fund contributions. This system is critical to our ability to accurately track sales and compute and receive royalties and Ad Fund contributions due from our franchisees.

Our operations depend upon our ability to protect our computer equipment and systems against damage from physical theft, fire, power loss, computer, network and telecommunications failure, or other catastrophic events, as well as from internal and external security breaches or intrusions, viruses and other disruptive software, worms, improper usage by employees, and other disruptive problems. Any damage or failure of our computer systems or network infrastructure that causes an interruption in our operations could have a material adverse effect on our business and subject us to litigation or actions by regulatory authorities. In addition, such events could result in a need for a costly repair, upgrade or replacement of systems, or a decrease in, or in the collection of, royalties and Ad Fund contributions paid to us by our franchisees. To the extent that any disruption, security breach, or any failure of our disaster recovery and business continuity plans to mitigate such harm were to result in a loss of, or damage to, our data or applications, or inappropriate disclosure of confidential or proprietary information, we could incur liability which could materially affect the operation of our business, our financial condition, and results of operations. It is also critical that we establish and maintain certain licensing and software agreements for the software we use in our day-to-day operations. A failure to procure or maintain these licenses could have a material adverse effect on our business operations.

We are dependent to a significant extent on our ongoing relationship with key technology providers, including their personnel, resources, technological expertise, systems and technology and their ability to help execute our digital, restaurant technology and enterprise technology initiatives and support our technology innovation and growth initiatives. The inability of us or our providers to execute those initiatives, or a breakdown in the relationship with those providers, could have an adverse impact on our business, results of operations, and financial condition.

There are risks associated with our increasing dependence on digital commerce platforms to maintain and grow sales, and limitations, disruptions or unavailability of our digital commerce platforms, or our ability to distribute our apps, could harm our ability to compete and conduct our business.

Customers are increasingly using e-commerce websites and apps, both domestically and internationally, like www.wingstop.com, our mobile ordering application, and third-party delivery apps, to order and pay for our products and select optional delivery and curbside services. In the fourth quarter of 2024, digital sales accounted for 70.3% of our domestic sales.

As a result, we and our franchisees are increasingly reliant on digital ordering and payment for such sales, and portions of our digital commerce platforms depend on third-party services, including cloud-based technologies and platforms. Our ability to effectively manage and grow our business depends significantly on the reliability and capacity of these systems, and we continue to invest in technology innovations, such as our proprietary digital platform that was implemented in 2024, as part of our growth strategy. There can be no assurance that we will realize the intended benefits of these investments or achieve expected results, nor can we be certain of our ability to adequately and/or timely implement, execute, transition between, maintain, or enhance such technologies, which could result in: platform outages; loss of data; disruptions to or reduced efficiency in our operations; delays in customer service; dissatisfaction from our customers; loss of sales; or negative publicity and damage to our reputation. Our apps and other digital ordering and payment platforms could be damaged or interrupted by power loss, technological failures, cyber-attacks or data breaches, other forms of sabotage, or acts of God. Further, we may not be successful in achieving protection of our related intellectual property, or information systems, including those necessary for implementation and management of our proprietary digital platform. Remediation of these or related issues could result in significant, unplanned capital investments. In addition, the availability, distribution and functionality of our apps and updates to our apps are dependent on mobile app stores and their related policies, terms and conditions. Occasionally, we and our franchisees have experienced or could experience temporary disruptions in ours or their operations due to third-party systems failing to adequately perform. Because we and our franchisees rely on digital orders for a significant portion of our sales, any limitations in functionality, interruptions or unavailability of any of our or third-party digital ordering or payment platforms could limit or delay customers’ ability to order through such platforms. Further, developing and implementing consumers’ evolving technology demands or industry trends may place a significant financial burden on us and, particularly with respect to digital commerce platforms, could result in a loss of customers and related market share. If our digital ordering and payment platforms do not meet customers’ expectations in terms of security, speed, attractiveness, or ease of use, or if we fail to implement emerging technologies as quickly and efficiently as our competitors, customers may be less inclined to return to such platforms. Any such limitation, damage, interruption or unavailability of our digital commerce platforms or failure of those platforms to meet customers’ expectations could materially adversely affect our and our franchisees’ sales and our growth prospects, results of operations and financial condition.

Any failure by us or our third-party delivery providers to provide timely and reliable delivery services may materially adversely affect our business and reputation.

As of December 28, 2024, delivery services were available at all Wingstop restaurants throughout the United States. Interruptions or failures in our delivery services could prevent the timely or successful delivery of our products. These interruptions may be due to unforeseen events that are beyond our control or the control of our delivery providers, such as inclement weather, natural disasters, transportation disruptions, labor shortages, sabotage by an outside party, civil protests or unrest. In addition, changes in business practices of our delivery providers and governmental regulations could materially adversely impact delivery services and/or profitability.

If our products are not delivered on time and in safe and proper condition, customers may refuse to accept our products and have less confidence in our services, in which case our business and reputation may suffer. If our third-party delivery service providers fail to follow the quality standards or other terms that they agreed to with us, it could result in harm to our business and reputation and could force us to pursue arrangements with alternative delivery service providers, which could result in an interruption to our delivery services. These factors may materially adversely impact our sales and our brand reputation. We also incur additional costs associated with delivery orders, and it is possible that these orders could reduce more profitable carry-out or in-restaurant orders.

Uncertainty in the law with respect to the assignment or allocation of liabilities in the franchise business model could materially adversely impact our profitability.

One of the legal foundations fundamental to the franchise business model has been that, absent special circumstances, a franchisor is generally not responsible for the acts, omissions, or liabilities of its franchisees, whether with respect to the franchisees’ employees or otherwise. In the last several years, this principle has been the subject of differing and inconsistent interpretations at the National Labor Relations Board (“NLRB”) and in the courts, and the question of whether a franchisor can be held liable for the actions or liabilities of a franchisee under a vicarious liability theory, sometimes called “joint employer,” has become highly fact dependent and generally uncertain. In March 2024, a federal court blocked the enforcement of the NLRB’s amended 2023 regulation on joint employment, leaving the NLRB’s previous 2020 regulation on joint employment in effect. However, it is possible that the NLRB or another government agency will attempt to restore the proposed 2023 standard through new rulemaking or alternative methods and legislation has been proposed from time to time to require franchisors to be responsible for ensuring franchisee compliance with certain laws. A regulatory, judicial or legislative determination that we are a “joint employer” with our franchisees or that our franchisees are part of one unified system subject to joint and several

liability could subject us and/or our franchisees to liability for employment-related, health and safety related and other liabilities of our franchisees and could cause us to incur other costs that have a material adverse effect on our profitability, which would adversely impact our business, financial condition, and results of operations.

Our business activities subject us and our franchisees to litigation risk that could subject us to significant money damages and other remedies or by increasing our and our franchisees’ litigation expense.

We and our franchisees are, from time to time, the subject of, or potentially the subject of, complaints or litigation, including customer claims, class-action lawsuits, personal-injury claims, environmental claims, intellectual property claims, employee claims regarding workplace matters such as wage-related or workforce scheduling claims, allegations of improper termination, harassment, discrimination and claims related to violations of laws, such as the Americans with Disabilities Act of 1990 (“ADA”), religious freedom laws, the Fair Labor Standards Act, other employment-related laws, the Occupational Safety and Health Act, the Employee Retirement Income Security Act of 1974, as amended, advertising laws and state and local “dram shop” laws. Each of these claims may increase our and our franchisees’ costs, limit the funds of our franchisees available to make royalty payments and reduce the execution of new franchise agreements. Litigation against a franchisee or its affiliates by third parties or regulatory agencies, whether in the ordinary course of business or otherwise, may also include claims against us by virtue of our relationship with the defendant-franchisee, whether under vicarious liability, joint employer, or other theories.

Regardless of whether any claim brought against us or a franchisee in the future is valid or whether we or they are liable, such a claim would be expensive to defend and may divert time, money and other valuable resources away from our or their operations and, thereby, hurt our business. In addition, the ability of a defendant-franchisee to make royalty payments in the event of such claims may be decreased and adverse publicity resulting from such allegations may materially adversely affect us and our brand, regardless of whether these allegations are valid or whether we or they are liable. Our international business may be subject to additional risks related to litigation, including difficulties in enforcement of contractual obligations governed by foreign law due to differing interpretations of rights and obligations, compliance with multiple and potentially conflicting laws, new and potentially untested laws and judicial systems, and reduced or diminished protection of intellectual property. A substantial judgment against us could materially adversely affect our business, financial condition, and operating results. Insurance may not be available at all or in sufficient amounts to cover any liabilities with respect to any of these or other matters. A substantial judgment, or judgment or other liability in excess of our or our franchisees’ available insurance coverage, resulting from claims could materially adversely affect our business, financial condition, and results of operations.

We may engage in litigation or arbitration with our franchisees.

Although we believe we generally enjoy a positive working relationship with the vast majority of our franchisees, the nature of the franchisor-franchisee relationship may give rise to litigation or arbitration with our franchisees. In the ordinary course of business, we are the subject of complaints or litigation from franchisees, usually related to alleged breaches of contract or wrongful termination under the franchise arrangements. We may also engage in future litigation or arbitration with franchisees to enforce the terms of our franchise agreements and compliance with our brand standards as determined necessary to protect our brand, the consistency of our products and the customer experience, or to enforce our contractual indemnification rights if we are brought into a matter involving a third party due to the franchisee’s alleged acts or omissions. In addition, we may be subject to claims by our franchisees relating to our Franchise Disclosure Document (“FDD”), including claims based on financial information contained in our FDD. Engaging in such litigation or arbitration may be costly and time-consuming and may distract management and materially adversely affect our relationships with franchisees and our ability to attract new franchisees. Any negative outcome of these or any other claims could materially adversely affect our results of operations as well as our ability to expand our franchise system and may damage our reputation and brand. Furthermore, existing and future franchise-related legislation could subject us to additional litigation risk in the event we terminate or fail to renew a franchise relationship.

Our business could be adversely affected by increased labor costs.

Labor is a primary component of our operating costs. Increased labor costs due to factors such as competition for workers, labor shortages, labor market pressures, increased minimum wage requirements, paid sick leave or vacation accrual mandates, or other legal or regulatory changes, such as predictive scheduling, may adversely impact operating costs for us and our franchisees. Additional taxes or requirements to incur additional employee benefit costs, including the requirements of the Patient Protection and Affordable Care Act or any new or replacement healthcare requirements, could also adversely impact our operating costs. From time to time, legislation increases the minimum wage at the federal, state and local level, or creates a council that could, among other things, increase minimum wages and impose additional minimum working or operating standards. The establishment of such laws in one state may have a ripple effect in other states, substantially increase labor costs and negatively impact our operating costs.

Our success depends in part upon effective advertising and marketing campaigns, which may not be successful, and franchisee support of such advertising and marketing campaigns.

We believe the Wingstop brand is critical to our business and expend resources in our marketing efforts using a variety of media outlets. We expect to continue to conduct brand awareness programs and customer initiatives, including product promotions, to attract and retain customers. Additionally, new social media platforms and other digital marketing initiatives are developing rapidly, and we need to continuously innovate, evolve, and invest in our social media strategies to maintain broad appeal with guests and brand relevance. Should our advertising and promotions not be effective, our business, financial condition and results of operations could be materially adversely affected.

The support of our franchisees is critical for the success of the advertising and marketing campaigns we seek to undertake, and the successful execution of these campaigns will depend on our ability to maintain alignment with our franchisees. Our franchisees are currently required to contribute specified percentages of their gross sales to certain advertising funds and programs. There can be no assurances that these funds will be sufficient to meet our marketing needs or that additional funds will be provided by our franchisees in the future. The lack of continued financial support for our advertising activities could hinder our marketing efforts, which may materially adversely affect our business, financial condition, and operating results. While we maintain control over advertising and marketing materials and can mandate certain strategic initiatives pursuant to our franchise agreements, we need the active support of our franchisees if the implementation of these initiatives is to be successful. If our initiatives are not successful, resulting in expenses incurred without the benefit of higher revenue, our business, financial condition and results of operations could be materially adversely affected.

We are vulnerable to changes in consumer preferences and regulation of consumer eating habits that could harm our business, financial condition, and results of operations.

Consumer preferences and eating habits often change rapidly and without warning, moving from one trend to another among many products or concepts. We depend on some of these trends, including the trend regarding away-from-home or take-out dining. Consumer preferences towards away-from-home and take-out dining or certain food products might shift as a result of, among other things, new information, attitudes regarding diet and health concerns or dietary trends related to cholesterol, carbohydrate, fat and salt content of certain food items, including chicken wings, in favor of foods that are perceived as healthier. Our menu is currently comprised primarily of chicken wings, tenders and sandwiches, and fries, and a change in consumer preferences away from these offerings would have a material adverse effect on our business, financial condition, and operating results. Negative publicity over, or increased costs relating to, the health aspects of, or animal welfare or other social or environmental concerns related to, the food items we sell may adversely affect demand for our menu items and could have a material adverse effect on traffic, sales and results of operations.

Regulations may also continue to change as a result of new information and attitudes regarding diet and health. These changes may include regulations that impact the ingredients and nutritional content of our menu items. The federal government and a number of states, counties and cities, have enacted laws requiring multi-unit restaurant operators to make certain nutritional information available to customers and/or legislation prohibiting the sales of certain types of ingredients in restaurants. If our customers perceive our menu items to contain unhealthy caloric, sugar, sodium, or fat content, our results of operations could be adversely affected. The success of our restaurant operations depends, in part, upon our ability to effectively respond to changes in consumer preferences and eating habits, negative publicity and consumer health and disclosure regulations and to adapt our menu offerings to fit the dietary needs, preferences and eating habits of our customers without sacrificing flavor. To the extent we are unable to respond with appropriate changes to our menu offerings, it could materially adversely affect customer traffic and our results of operations. Furthermore, any change in our menu could result in a decrease in existing customer traffic.

Our operating results may fluctuate significantly and could fall below the expectations of securities analysts and investors due to certain factors, some of which are beyond our control, resulting in a decline in our stock price.

Our operating results may fluctuate significantly because of a number of factors, including:

•the timing of new restaurant openings;

•profitability of our restaurants, especially in new markets;

•inflationary pressures and changes in interest rates;

•increases and decreases in average weekly sales and same store sales, including due to the timing and popularity of sporting and other events;

•macroeconomic and geopolitical conditions, globally, nationally and locally;

•changes in consumer discretionary spending, consumer preferences and competitive conditions;

•legal and regulatory changes;

•costs associated with litigation;

•increases in infrastructure costs; and

•fluctuations in commodity prices.

Accordingly, results for any one fiscal quarter or year are not necessarily indicative of results to be expected for any other fiscal quarter or year and our results for any particular future period may decrease or change compared to the prior period. In the future, operating results may fall below the expectations of securities analysts and investors. In that event, the price of our common stock would likely decrease.

Because many of our restaurants are concentrated in certain geographic areas, we are susceptible to economic and other trends and developments, including adverse weather conditions, in these areas.

As of December 28, 2024, 52% of our 2,204 domestic restaurants were spread across Texas (21%), California (19%), Florida (6%), and Illinois (6%). Given our geographic concentrations, economic conditions and other unforeseen events, including but not limited to negative publicity, local strikes, terrorist attacks, increases in energy prices, natural or man-made disasters, adverse weather conditions, or the enactment of more stringent state and local laws and regulations in these geographic areas, could have a disproportionate adverse effect on our business, financial condition, and results of operations.

Unexpected events have impacted and may in the future impact our business, financial condition and results of operations.

The occurrence of one or more unexpected events, including war, acts of terrorism, epidemics and pandemics (such as the COVID-19 pandemic), civil unrest, fires, tornadoes, tsunamis, hurricanes, earthquakes, floods, and other forms of severe weather (including those caused or exacerbated by climate change) in the United States or in other countries in which we operate, or in which our suppliers are located, have affected and could in the future affect our operations and financial performance. Such events could affect our guest traffic, sales and operating costs and/or cause complete or partial closure of one or more distribution centers, cause temporary or long-term disruption or inoperability of our information technology systems (including our proprietary digital platform), temporary or long-term disruptions in our delivery channel or the supply of products from suppliers, and disruption and delay in the transport of products, any of which may have a material adverse effect on our business, financial condition, and results of operations. Existing insurance coverage may not provide protection from all the costs that may arise from such events.

Our business is subject to various laws and regulations and changes in such laws and regulations, and/or our failure to comply with existing or future laws and regulations, could materially adversely affect us.

We are subject to certain state franchise registration requirements, the rules and regulations of the FTC and various state laws regulating the offer and sale of franchises in the United States through the provision of franchise disclosure documents containing certain mandatory disclosures, various state laws regulating the franchise relationship, and certain rules and requirements regulating franchising arrangements in foreign countries. Noncompliance with applicable laws, regulatory requirements and governmental guidelines regulating franchising could reduce anticipated royalty income, which in turn could materially adversely affect our business, financial condition, and results of operations.

We and our franchisees are subject to various existing U.S. federal, state, local, and foreign laws affecting the operation of restaurants and the sale of food and alcoholic beverages, including various sales tax laws, license and permit requirements, health, sanitation, fire, and safety standards. We and our franchisees may in the future become subject to regulation (or further regulation) seeking to tax or regulate high-fat foods, to limit the serving size of beverages containing sugar, to ban or restrict the use of certain packaging materials, or to require the display of detailed nutrition information. Each of these regulations would be costly to comply with and/or could result in reduced demand for our products. The failure of our restaurants to comply with applicable regulations and obtain and maintain required licenses, permits, and approvals (including those for the sale of alcoholic beverages) could adversely affect our existing restaurants and delay or result in our decision to cancel the opening of new restaurants, which would materially adversely affect our results of operations.

We and our franchisees may also have a substantial number of hourly employees who are required to be paid pursuant to applicable federal or state minimum wage laws. From time to time, various federal, state, and local legislators have proposed or approved changes to minimum wage, predictive scheduling with penalty pay, and additional time off requirements, especially for fast-food workers. These and any future similar increases in other regions in which our restaurants operate will increase the cost of labor and may negatively affect our and our franchisees profit margins as we and our franchisees may be unable to increase our menu prices in order to pass future increased labor costs on to our guests. Also, reduced margins of franchisees could make it more difficult to sell franchises. If menu prices are increased by us and our franchisees to cover increased labor

costs, the higher prices could adversely affect transactions which could lower sales and thereby reduce our margins and the royalties that we receive from franchisees.

Although we require all workers in our company-owned restaurants and in our corporate support office to provide us with government-specified documentation evidencing their employment eligibility, some of our employees may, without our knowledge, be unauthorized workers. We currently participate in the “E-Verify” program, an Internet-based, free program run by the U.S. government to verify employment eligibility, in all of our company-owned restaurants and in our corporate support office. However, use of the “E-Verify” program does not guarantee that we will successfully identify all applicants who are ineligible for employment. Unauthorized workers may subject us to fines or penalties, and if any of our workers are found to be unauthorized, we could experience adverse publicity that negatively impacts our brand and it may be more difficult to hire and keep qualified employees. We could also become subject to fines, penalties and other costs related to claims that we did not fully comply with all recordkeeping obligations of federal and state employment eligibility or immigration compliance laws. Failure by our franchisees to comply with employment eligibility or immigration laws may also result in adverse publicity and reputational harm to our brand and could subject them to fines, penalties and other costs. These factors could materially adversely affect our business, financial condition, and results of operations.

The impact of current laws and regulations, the effect of future changes in laws or regulations that impose additional requirements and the consequences of litigation relating to current or future laws and regulations, or our inability to respond effectively to significant regulatory or public policy issues, could increase our compliance and other costs of doing business and therefore have an adverse effect on our results of operations. Failure to comply with the laws and regulatory requirements of federal, state, local and foreign authorities (including those applicable to us as a public company) could result in, among other things, revocation of required licenses, administrative enforcement actions, fines and civil and criminal liability. In addition, certain laws, including the ADA, could require us or our franchisees to expend significant funds to make modifications to our restaurants if we fail to comply with applicable standards. Compliance with all of these laws and regulations can be costly and can increase our exposure to litigation or governmental investigations or proceedings.

Our current insurance and the insurance of our franchisees may not provide adequate levels of coverage against claims.

We currently maintain insurance we believe is customary for businesses of our size and type. However, there are types of losses we may incur that cannot be insured against or that we believe are not economically reasonable to insure. Such losses could have a material adverse effect on our business, financial condition, and results of operations. In addition, our franchise agreements require each franchisee to maintain certain insurance types and levels. Certain extraordinary hazards, however, may not be covered, and insurance may not be available (or may be available only at prohibitively expensive rates) with respect to many other risks. Moreover, any loss incurred could exceed policy limits and policy payments made to franchisees may not be made on a timely basis. Any such loss or delay in payment could have a material adverse effect on a franchisee’s ability to satisfy obligations under the franchise agreement, including the ability to make royalty payments. We also require franchisees to maintain general liability insurance coverage to protect against the risk of product liability and other risks and demand strict franchisee compliance with health and safety regulations. However, franchisees may receive or produce defective food or beverage products, which may materially adversely affect our brand’s goodwill and our business. Further, a franchisee’s failure to comply with health and safety regulations, including requirements relating to food quality or preparation, could subject them, and possibly us, to litigation. Any litigation, including the imposition of fines or damage awards, could exceed or be excluded from insurance coverage, and, as a result, adversely affect the ability of a franchisee to make royalty payments or could generate negative publicity or otherwise adversely affect us.

Damage to our reputation could negatively impact our business, financial condition, and results of operations.

We believe we have built our reputation on the high quality and bold, distinctive, and craveable flavors of our food, value, and service, and we must protect and grow the value of our brand to continue to be successful in the future. Any incident that erodes consumer affinity for our brand could significantly reduce its value and damage our business. For example, our brand value could suffer and our business could be adversely affected if customers perceive a reduction in the quality and safety of our food, value, or service or otherwise believe we have failed to deliver a consistently positive experience. We may also be adversely affected by customers’ experiences with third-party delivery from our restaurants.

We may be adversely affected by news reports or other negative publicity, regardless of their accuracy, regarding food quality issues, public health concerns, illness, safety, injury, security breaches or intrusions with respect to confidential guest or employee information, employee related claims relating to alleged employment discrimination, wage and hour violation, labor standards or health care and benefit issues, or government or industry findings concerning our restaurants, restaurants operated by other food service providers, or others across the food industry supply chain. The risks associated with such negative

publicity cannot be eliminated or completely mitigated and may materially affect our business, financial condition, and results of operations.

The availability of information on social media platforms is virtually immediate as is its impact. Many social media platforms immediately publish the content their subscribers and participants can post, often without filters or checks on accuracy of the content posted. The opportunity for dissemination of information, including proprietary or inaccurate information, is seemingly limitless and readily available. Information posted may be adverse to our interests and may be inaccurate, each of which may harm our performance, prospects, brand, or business. The harm may be immediate without affording us an opportunity for redress or correction. Other risks of social media use include the association with controversial celebrities or influencers. The perception of our social media campaigns, or the inappropriate use of social media by our guests or employees, may materially adversely affect our reputation, business, financial condition, and results of operations.

Our expansion into international markets exposes us to a number of risks that may differ in each country where we have franchise restaurants.

As of December 28, 2024, we have franchised restaurants in eleven international countries and U.S. territories and plan to accelerate our growth internationally. Expansion in international markets may be affected by local economic, market, and cultural conditions. Our business, financial condition and results of operations may be adversely affected if the global markets in which our franchised restaurants compete are affected by changes in political, economic, or other factors. These factors, over which neither our franchisees nor we have control, may include:

•recessionary or expansive trends and economic downturns in international markets;

•changing labor conditions and difficulties in staffing and managing our foreign operations;

•increases in the taxes we pay and other changes in applicable tax laws;

•legal and regulatory changes, and the burdens and costs of our compliance with a variety of foreign laws;

•difficulty in securing suitable local suppliers in international markets;

•changes in inflationary pressures and interest rates;

•changes in exchange rates and the imposition of restrictions on currency conversion or the transfer of funds;

•difficulty in protecting our brand, reputation, and intellectual property;

•difficulty in collecting our royalties and longer payment cycles;

•expropriation of private enterprises;

•anti-American sentiment in certain locations and the identification of the Wingstop brand as an American brand;

•political and economic instability, including due to national and international conflicts or wars, sanctions, acts of terror, COVID-19 or other pandemics or similar events;

•the U.S. Foreign Corrupt Practices Act and other similar anti-bribery and anti-kickback laws; and

•other external factors.

Our international expansion efforts may require considerable management time as well as start-up expenses for market development before any significant revenues and earnings are generated. Negotiated incentives or discounts provided in connection with the opening of new markets may result in lower cash flows and profits than existing international markets. Operations in new foreign markets may achieve low margins or may be unprofitable, and expansion in existing markets may be affected by local economic and market conditions. Therefore, as we continue to expand internationally, we or our franchisees may not experience the operating margins we expect, we may experience a delay in or loss of royalty income, our results of operations and growth may be negatively impacted, and our common stock price may decline.

The loss of key employees or difficulties recruiting and retaining qualified employees or effectively managing changes in our workforce could adversely impact our business, financial condition, and operating results.

Much of our future success depends on the continued availability and service of our executive officers and qualified employees. The market for highly skilled employees and leaders in the restaurant industry is extremely competitive. Our inability to successfully recruit and retain highly-skilled and talented executive officers and other key employees, as well as a qualified workforce in our restaurants, or to successfully execute succession planning for key employees, could have a material adverse effect on our business and prospects and impair our growth, particularly in the context of current labor shortages, as we may not be able to find suitable individuals to replace such personnel on a timely basis. The departure of any of our executive officers or key employees could be viewed in a negative light by investors and analysts, which could cause the price of our common stock to decline. We also place a large amount of importance on our culture, which we believe has been an important contributor to our success, and as we continue to grow, it may be increasingly difficult to maintain our culture. If we are unable to recruit,

retain and motivate employees sufficiently to maintain our current business and support our projected growth, our business, financial condition, and operating results may be adversely affected.

Our failure or inability to enforce our trademarks or other proprietary rights could adversely affect our competitive position or the value of our brand.

We believe that our trademarks and other proprietary rights are important to our success and our competitive position, and, therefore, we devote resources to the protection of our trademarks and proprietary rights. The protective actions that we take, however, may not be enough to prevent unauthorized use or imitation by others, which could harm our image, brand or competitive position. If we commence litigation to enforce our rights, we will incur significant legal fees.

We cannot assure you that third parties will not claim infringement by us of their proprietary rights in the future. Any such claim, whether or not it has merit, could be time-consuming and distracting for executive management, result in costly litigation, cause changes to existing menu items or delays in introducing new menu items, or require us to enter into royalty or licensing agreements. As a result, any such claim could have a material adverse effect on our business, results of operations, and financial condition.

Environmental, social and corporate governance (ESG) matters may impact our business and reputation.

There is increasing focus, public interest, and legislative pressure related to public companies’ ESG practices. Legislative, regulatory or other efforts, including those of the SEC and multiple states and countries, to combat ESG concerns could result in new or more stringent forms of oversight and expand mandatory and voluntary reporting, diligence and disclosure, which could increase costs and require resources dedicated toward the collection and disclosure of data (such as information regarding potential risks of climate change or greenhouse gas emissions), and bring additional focus on and further impact our business, results of operations, and financial condition. Further, if our ESG practices fail to meet investor, customer, consumer or employees’ evolving expectations and standards for responsible corporate citizenship in areas including environmental stewardship (including climate change, greenhouse gas emissions, packaging and waste), animal welfare, diversity, human capital management, and corporate governance and transparency, our reputation, brand, appeal to current and potential customers and investors, and employee retention may be negatively impacted, which could have a material adverse effect on our business, financial condition, and results of operations. Furthermore, if our competitors’ ESG practices are perceived to be better than our own, certain investors or customers may elect to invest in or be a patron of our competitors instead, which would have an adverse impact on our business, financial condition, and results of operations.

Risks Related to our Indebtedness

The terms of our securitized debt financing through certain of our wholly-owned subsidiaries include restrictive terms, and our failure to comply with any of these terms could result in a default, which would have a material adverse effect on our business and prospects.

Unless and until we repay all outstanding borrowings under our securitized debt facility, we will remain subject to the restrictive terms of these borrowings. The securitized debt facility, under which certain of our wholly-owned subsidiaries issued and guaranteed fixed rate notes and variable funding notes, contain a number of covenants, with the most significant financial covenant being a debt service coverage calculation. These covenants limit our ability and the ability of certain of our subsidiaries to, among other things: incur additional indebtedness; alter the business we conduct; make certain changes to the composition of our management team; pay dividends and make other restrictive payments beyond specified levels; create or permit liens; dispose of certain assets; make certain investments; engage in certain transactions with affiliates; and consolidate, merge or transfer all or substantially all of our assets.

The securitized debt facility also requires us to maintain specified financial ratios. Our ability to meet these financial ratios can be affected by events beyond our control, and we may not satisfy such a test. A breach of these covenants could result in a rapid amortization event or default under the securitized debt facility. If amounts owed under the securitized debt facility are accelerated because of a default and we are unable to pay such amounts, the investors may have the right to assume control of substantially all of the securitized assets. If a rapid amortization event occurs under the indenture governing the securitized debt (including, without limitation, upon an event of default under the indenture or the failure to repay the securitized debt at the end of the applicable term), the funds available to us would be reduced or eliminated, which would in turn reduce our ability to operate or grow our business and materially adversely affect our financial condition or results of operations.

If we are unable to refinance or repay amounts under the securitized debt facility prior to the expiration of the applicable term, our cash flow would be directed to the repayment of the securitized debt and, other than management fees sufficient to cover

minimal selling, general and administrative expenses, would not be available for operating our business. No assurance can be given that any refinancing or additional financing will be possible when needed or that we will be able to negotiate acceptable terms. In addition, our access to capital is affected by prevailing conditions in the financial and capital markets and other factors beyond our control. There can be no assurance that market conditions will be favorable at the times that we require new or additional financing.

We may be unable to generate sufficient cash flow to satisfy our significant debt service obligations, which would materially adversely affect our financial condition and results of operations.

Our ability to make principal and interest payments on and to refinance our indebtedness will depend on our ability to generate cash in the future, which, to a certain extent, is subject to general economic, financial, competitive, legislative, regulatory, and other factors that are beyond our control. If our business does not generate sufficient cash flow from operations, in the amounts projected or at all, or if future borrowings are not available to us under our variable funding notes in amounts sufficient to fund our other liquidity needs, our financial condition and results of operations may be materially adversely affected. If we cannot generate sufficient cash flow from operations to make scheduled principal amortization and interest payments on our debt obligations in the future, we may need to refinance all or a portion of our indebtedness on or before maturity, sell assets, delay capital expenditures or seek additional equity investments.

Risks Related to Ownership of our Common Stock

Our stock price may be volatile or may decline regardless of our operating performance.

The market price of our common stock may fluctuate significantly in response to a number of factors, most of which we cannot control, including those described under “Risks Related to Our Business and Our Industry” and the following:

•potential fluctuation in our annual or quarterly operating results;

•changes in capital market conditions that could affect valuations of restaurant companies in general or our goodwill in particular or other adverse economic conditions;

•changes in financial estimates by any securities analysts who follow our common stock, our failure to meet these estimates or failure of those analysts to initiate or maintain coverage of our common stock;

•downgrades by any securities analysts who follow our common stock;

•changes in our dividend policy or any share repurchase program;

•future sales of our common stock by our officers, directors and significant stockholders;

•global economic, legal, and regulatory factors unrelated to our performance;

•investors’ perceptions of our prospects;

•announcements by us or our competitors of significant contracts, acquisitions, joint ventures, or capital commitments; and

•investor perceptions of the investment opportunity associated with our common stock relative to other investment alternatives.

In addition, the stock markets, and in particular Nasdaq, have experienced extreme price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many food service companies. In the past, stockholders have instituted securities class action litigation following periods of market volatility. If we were involved in securities litigation, we could incur substantial costs and our resources and the attention of management could be diverted from our business.

Anti-takeover provisions in our charter documents and under Delaware law could make an acquisition of us more difficult, limit attempts by our stockholders to replace or remove our current management and limit the market price of our common stock.

Provisions in our amended and restated certificate of incorporation and amended and restated bylaws may have the effect of delaying or preventing a change of control or changes in our management. Our amended and restated certificate of incorporation and amended and restated bylaws include provisions that:

•authorize our board of directors to issue, without further action by the stockholders, up to 15,000,000 shares of undesignated preferred stock;

•require that any action to be taken by our stockholders be effected at a duly called annual or special meeting and not by written consent;

•specify that special meetings of our stockholders can be called only upon the request of a majority of our board of directors or by the chairman of the board of directors;

•establish an advance notice procedure for stockholder proposals to be brought before an annual meeting, including proposed nominations of persons for election to our board of directors;

•establish that our board of directors is divided into three classes, with each class serving staggered three-year terms; and

•prohibit cumulative voting in the election of directors.

These provisions may frustrate or prevent any attempts by our stockholders to replace or remove our current management by making it more difficult for stockholders to replace members of our board of directors, which is responsible for appointing the members of our management, and may discourage, delay, or prevent a transaction involving a change of control of our company that is in the best interest of our minority stockholders. Even in the absence of a takeover attempt, the existence of these provisions may adversely affect the prevailing market price of our common stock if stockholders view them as discouraging future takeover attempts. In addition, we have opted out of the Delaware General Corporation Law (“DGCL”) Section 203, relating to business combinations with interested stockholders, but our amended and restated certificate of incorporation provides that engaging in any of a broad range of business combinations with any “interested” stockholder (any stockholder with 15% or more of our capital stock) for a period of three years following the date on which the stockholder became an “interested” stockholder is prohibited, subject to certain exceptions.

Our amended and restated certificate of incorporation designates the Court of Chancery of the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees.

Our amended and restated certificate of incorporation provides that, unless we consent in writing to an alternative forum, the Court of Chancery of the State of Delaware will be the sole and exclusive forum, to the fullest extent permitted by law, for (i) any derivative action or proceeding brought on our behalf, (ii) any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers and employees to us or our stockholders, (iii) any action asserting a claim arising pursuant to any provision of the DGCL, our amended and restated certificate of incorporation or our amended and restated bylaws or (iv) any action asserting a claim that is governed by the internal affairs doctrine, in each case subject to the Court of Chancery having personal jurisdiction over the indispensable parties named as defendants therein. Any person purchasing or otherwise acquiring any interest in any shares of our capital stock shall be deemed to have notice of and to have consented to this provision of our amended and restated certificate of incorporation. This choice of forum provision may limit our stockholders’ ability to bring a claim in a judicial forum that it finds favorable for disputes with us or our directors, officers or employees, which may discourage such lawsuits against us and our directors, officers and employees even though an action, if successful, might benefit our stockholders. Stockholders who do bring a claim in the Court of Chancery could face additional litigation costs in pursuing any such claim. The Court of Chancery may also reach different judgments or results than would other courts, including courts where a stockholder considering an action may be located or would otherwise choose to bring the action, and such judgments or results may be more favorable to us than to our stockholders. In addition, the enforceability of similar choice of forum provisions in other companies’ certificates of incorporation has been challenged in legal proceedings, and it is possible that, in connection with any applicable action brought against us, a court could find the choice of forum provisions contained in our amended and restated certificate of incorporation to be inapplicable or unenforceable in such action.


Item 1B.			Unresolved Staff Comments

None.


Item 1C.			Cybersecurity

Risk Management

As part of the Company’s enterprise risk management program, the Company maintains a comprehensive information security program that is designed to identify, protect against, detect and respond to, and manage cybersecurity threats. The program contains security measures that include, but are not limited to, the following: security policies and procedures; physical and environmental protections; monitoring processes and systems; asset management; risk assessments; a vulnerability management and remediation program; and maintenance of a third-party risk management program. We consult the National Institute of Standards and Technology Cyber Security Framework for guidance and leverage internal and external resources to design and execute our cybersecurity program.

The Company also trains employees to understand their role in attempting to protect the Company from cybersecurity attacks. Our information security training program for employees includes computer-based training at hire, annual follow-up training and acknowledgement of our information security policies, regular internal communications, and testing to measure the effectiveness of our information security program. For example, we conduct regular phishing awareness campaigns designed to emulate current threats and provide immediate feedback and, as necessary, additional training or remedial action.

In addition, the Company engages third parties to assist in assessing, identifying, and remediating material risks from cybersecurity threats. Our key cybersecurity controls are regularly tested and audited by third-party service providers, which we retain to help identify vulnerabilities in our systems and to help maintain compliance to standards and regulatory requirements. Other third-party service providers are enlisted by the Company for security operations center services to augment our teams’ monitoring capabilities and to assist with our investigation and response to alerts on emerging and ongoing threats.

We also maintain a third-party risk management program that includes policies and procedures designed to oversee and manage the cybersecurity risks associated with our third-party service providers. The Company conducts risk assessments at the initial onboarding of vendors or service providers who have access to Company systems or data and, subsequently, at regular intervals in an effort to help determine the severity and scope of risks to Company systems, data and operations.

In addition to implementing safeguards that attempt to minimize risks associated with a cybersecurity incident, the Company maintains disaster recovery and business continuity plans that include data backup capabilities. We also have incident response procedures designed to address cybersecurity events that may occur despite the safeguards we have put in place. Further, our incident response procedures and business continuity plans are also designed to assist in responding to breaches of any of our third-party service providers.

As of the date of this report, we are not aware of any cybersecurity incidents that have materially affected or are reasonably likely to materially affect the Company, including our business strategy, results of operations, or financial condition. In 2024, the Company has continued to make strategic investments in both its technical and organizational measures to further enhance its security capabilities and planning for detecting, preventing, and responding to cybersecurity attacks. Risks from cybersecurity threats that are reasonably likely to materially affect the Company, its business strategy and results of operations or financial condition, include (but are not limited to): data loss; a disruption to our operations; a compromise or corruption of confidential or proprietary information; damage to our employee and business relationships and reputation; increased burden of regulatory compliance; and/or litigation and liability. See our related risk factors in “Item 1A. Risk Factors” for more information about the Company’s risks from cybersecurity threats and how such threats may impact the Company’s business, operations, and financial results.

Governance

Our Board classifies cybersecurity and information technology infrastructure among the most significant potential risks to our business in the Company’s enterprise risk management program. The Technology Committee, which consists of five independent directors, is responsible for the oversight of the Company’s cybersecurity and technology-related risks and management’s efforts to monitor and oversee those risks. The Technology Committee oversees these risks in conjunction with the Audit Committee, which also consists entirely of independent directors, and, as necessary, participates in joint meetings with the Audit Committee to discuss these matters.

Our Vice President of Information Security and Enterprise Information Technology (“CISO”), who reports to our Senior Vice President, Chief Information Officer (“CIO”), oversees our information security program and matters of risk relating to cybersecurity. Our CISO possesses more than 20 years of experience in information technology-related roles, including engineering, governance, and security, undergraduate and post-graduate degrees in information technology and security, and industry-recognized cybersecurity certifications. Our CISO and members of our Information Technology team, including our CIO, periodically provide risk reports to the Board and its committees, including assessments of the Company’s cybersecurity risks, their potential impact on our business operations, and management’s strategies to monitor and mitigate those risks. The committee chairs, in turn, report to the full Board as part of our general risk management process.


Item 2.			Properties

The Company leases an office building in Dallas, Texas containing approximately 112,200 square feet, which we use as our corporate headquarters and global support center. We also own a 78,000 square foot office building in Addison, Texas, which we are currently evaluating for future use, and which has not been leased, rented, or currently utilized.

All company-owned restaurant real estate facilities are leased by us, typically under five- to ten-year leases with one or two five-year renewal options, often containing rent escalation provisions, and generally requiring us to pay a proportionate share of real estate taxes, insurance and common area and other operating costs in addition to base or fixed rent. All domestic and international franchise restaurants are leased or owned directly by the respective franchisees.

Due to lower square footage requirements, our restaurants can be located in a variety of locations. They tend to be located primarily in shopping centers, as in-line or end-cap locations. Our restaurants generally occupy approximately 1,700 square feet of leased retail space. As of December 28, 2024, we and our franchisees operated 2,563 restaurants in 45 states and 12 countries and U.S. territories.


Item 3.			Legal Proceedings

We are currently involved in various claims and legal actions that arise in the ordinary course of our business, including claims and actions resulting from employment-related and franchise-related matters. None of these matters, some of which are covered by insurance, has had a material effect on us, and, as of the date of this report, we are not party to any pending legal proceedings that we believe would have a material adverse effect on our business, financial condition, results of operations or cash flows. However, a significant increase in the number of these claims or an increase in amounts owing under successful claims could materially and adversely affect our business, financial condition, results of operations or cash flows.


Item 4.			Mine Safety Disclosures

Not applicable.

PART II


Item 5.			Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Our common stock trades on the NASDAQ Global Select Market under the symbol “WING”. As of February 18, 2025, there were 144 stockholders of record of our common stock. This number excludes stockholders whose stock is held in nominee or street name by brokers.

Dividends on Common Stock

On February 18, 2025, the Company’s board of directors declared a quarterly dividend of $0.27 per share of common stock, to be paid on March 28, 2025 to stockholders of record as of March 7, 2025, totaling approximately $7.7 million.

We evaluate dividend payments on common stock within the context of our overall capital allocation strategy with our board of directors on an ongoing basis, giving consideration to a number of factors including our current and forecasted earnings, financial condition, the general economic and regulatory environment, cash requirements, cash surplus, legal requirements or limitations, and other factors. There can be no assurance that we will continue to pay such dividends or as to the amount of any such dividends if paid.

Recent Sales of Unregistered Securities

There were no sales of unregistered securities during the fiscal year ended December 28, 2024 that were not previously reported on a Quarterly Report on Form 10-Q or a Current Report on Form 8-K.

Issuer Purchases of Equity Securities

The following table sets forth information on our share repurchases of our common stock during the fourth quarter of 2024:


Period	Total Number of Shares Purchased (1)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2)
September 29, 2024 - October 26, 2024	—	$	—	—	$	61,082,928
October 27, 2024 - November 30, 2024	—	—		—	61,082,928
December 1, 2024 - December 28, 2024	551,325	$	328.54	551,325	311,082,928
Total	551,325	$	328.54	551,325	$	311,082,928

(1) On December 9, 2024, the Company entered into an accelerated share repurchase agreement (the “ASR Agreement”) with a third-party financial institution to repurchase $250.0 million of the Company’s common stock under its Share Repurchase Program (as defined in note (2) below). Pursuant to the terms of the ASR Agreement, during the fiscal fourth quarter of 2024 the Company made an initial payment to the financial institution of $250.0 million in cash and received and retired 551,325 shares of its common stock, representing an estimated 75% of the total shares expected to be delivered under the ASR Agreement, based on the closing price on the date of initial delivery of $328.54. The delivery of any remaining shares will occur at the final settlement of the transactions under the ASR Agreement, which is scheduled to occur in the fiscal first quarter of 2025.

(2) On December 5, 2024, the Company’s board of directors authorized the repurchase of up to an additional $500.0 million of its outstanding shares of common stock under its existing share repurchase program (the “Share Repurchase Program”). The authorization for the repurchase continues until all such shares have been repurchased or the repurchase plan is terminated by action of our board of directors. As of December 28, 2024, $311.1 million remained available under the Share Repurchase Program.

Performance Graph

The following performance graph compares the dollar change in the cumulative stockholder return on our common stock with the cumulative total returns of the NASDAQ Composite Index and the Standard & Poor’s 400 Restaurant Index (the “S&P 400 Restaurant Index”). This graph assumes a $100 investment in our common stock and in each of the foregoing indices on December 28, 2019, and assumes the reinvestment of dividends, if any. The indices are included for comparative purposes only. They do not necessarily reflect management’s opinion that such indices are an appropriate measure of the relative performance of our common stock, and historical stock price performance should not be relied upon as an indication of future stock price performance. This graph is “furnished” and not “filed” with the SEC and it is not “soliciting material,” and should not be incorporated by reference in any of our filings under the Securities Act or the Exchange Act, whether made before or after the date hereof and irrespective of any general incorporation language in such filing.


Item 6.			Reserved

Not applicable.


Item 7.			Management’s Discussion and Analysis of Financial Condition and Results of Operations

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read in conjunction with the accompanying audited consolidated financial statements and notes. Forward-looking statements in this MD&A are not guarantees of future performance and may involve risks and uncertainties that could cause actual results to differ materially from those projected. Refer to “Cautionary Note Regarding Forward-Looking Statements” elsewhere in this report and “Item 1A. Risk Factors” for a discussion of these risks and uncertainties.

A comparison of our results of operations and cash flows for fiscal year 2023 compared to fiscal year 2022 can be found under “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 30, 2023, filed with the SEC on February 21, 2024.

We operate on a 52- or 53-week fiscal year ending on the last Saturday of each calendar year. Our fiscal quarters are comprised of 13 weeks, with the exception of the fourth quarter of a 53-week year, which contains 14 weeks. Fiscal years 2024 and 2023 each contain 52 weeks, while fiscal year 2022 contains 53 weeks.

Overview

Wingstop is the largest fast casual chicken wings-focused restaurant chain in the world and has demonstrated strong, consistent growth. As of December 28, 2024, we had a total of 2,563 restaurants in our system. Our restaurant base is 98% franchised, with 2,513 franchised locations (including 359 international locations) and 50 company-owned restaurants as of December 28, 2024. We generate revenues by charging royalties, advertising fees and franchise fees to our franchisees and by operating a number of our own restaurants.

We plan to grow our business by opening new franchised restaurants and increasing our same store sales, while leveraging our franchise model to create shareholder value. Domestic same store sales have increased for 21 consecutive years beginning in 2004, which includes 3-year cumulative domestic same stores sales growth of 41.6% since the beginning of fiscal year 2022. We believe our asset-light, highly-franchised business model generates strong operating margins and requires low capital expenditures, creating shareholder value through strong and consistent operating cash flow and capital-efficient growth.

Highlights for Fiscal Year 2024 Compared to Fiscal Year 2023

•System-wide sales increased 36.8% over the prior fiscal year to $4.8 billion;

•System-wide restaurant count increased 15.8% over the prior fiscal year to a total of 2,563 worldwide locations, driven by 349 net unit openings;

•Domestic same store sales increased 19.9% over the prior fiscal year;

•Company-owned domestic same store sales increased 7.7% over the prior fiscal year;

•Digital sales increased to 70.3% of system-wide sales;

•Domestic AUV increased to $2.1 million;

•Total revenue increased 36.0% over the prior fiscal year to $625.8 million;

•Net income increased 54.9% over the prior fiscal year to $108.7 million, or $3.70 per diluted share, compared to $70.2 million, or $2.35 per diluted share in the prior fiscal year; and

•Adjusted EBITDA, a non-GAAP measure, increased 44.8% to $212.1 million, compared to adjusted EBITDA of $146.5 million in the prior fiscal year.

Key Performance Indicators

Key measures that we use in evaluating our restaurants and assessing our business include the following:

Number of restaurants. Management reviews the number of new restaurants, the number of closed restaurants, and the number of acquisitions and divestitures of restaurants to assess net new restaurant growth, system-wide sales, royalty and franchise fee revenue, and company-owned restaurant sales.


	Domestic Company-owned	Domestic Franchised	International Franchised(1)	System-wide

Restaurant count at December 31, 2022	43	1,678	238	1,959
Openings	4	202	59	265
Closures	—	(1)	(9)	(10)
Net purchase from (sold by) franchisees	2	(2)	—	—
Restaurant count at December 30, 2023	49	1,877	288	2,214
Openings	4	274	77	355
Closures	—	—	(6)	(6)
Net purchased from (sold by) franchisees	(3)	3	—	—
Restaurant count at December 28, 2024	50	2,154	359	2,563

(1) Includes U.S. territories.

System-wide sales. System-wide sales represents net sales for all of our company-owned and franchised restaurants (as reported by franchisees). This measure allows management to better assess changes in our royalty revenue, our overall store performance, the health of our brand and the strength of our market position relative to competitors. Our system-wide sales growth is driven by new restaurant openings as well as increases in same store sales.

Domestic average unit volume (“AUV”). Domestic AUV consists of the average annual sales of all restaurants that have been open for a trailing 52-week period or longer. This measure is calculated by dividing sales during the applicable period for all restaurants being measured by the number of restaurants being measured. Domestic AUV includes revenue from both company-owned and franchised restaurants. Domestic AUV allows management to assess our domestic company-owned and franchised restaurant economics. Changes in domestic AUV are primarily driven by increases in same store sales and are also influenced by opening new restaurants.

Domestic same store sales. Domestic same store sales reflects the change in year-over-year sales for the same store base. We define the same store base to include those restaurants open for at least 52 full weeks. This measure highlights the performance of existing restaurants, while excluding the impact of new restaurant openings and permanent closures. We review same store sales for domestic company-owned restaurants as well as system-wide domestic restaurants. Domestic same store sales growth is driven by increases in transactions and average transaction size. Transaction size increases are driven by price increases or favorable mix shift from either an increase in items purchased or shifts into higher priced items.

EBITDA and Adjusted EBITDA. We define EBITDA as net income before interest expense, net, income tax expense (benefit), and depreciation and amortization. We define Adjusted EBITDA as net income before interest expense, net, income tax expense (benefit), and depreciation and amortization, with further adjustments for losses on debt extinguishment and financing transactions, transaction costs, costs and fees associated with investments in our strategic initiatives, system implementation costs, and stock-based compensation expense. For a reconciliation of net income to EBITDA and Adjusted EBITDA and for further discussion of EBITDA and Adjusted EBITDA as non-GAAP measures and how we utilize them, see footnote 2 below.

The following table sets forth our key performance indicators for the fiscal years ended December 28, 2024 and December 30, 2023 (in thousands, except unit data):


	Year ended
	December 28, 2024			December 30, 2023
Number of system-wide restaurants at period end	2,563			2,214
System-wide sales(1)	$	4,765,233		$	3,482,370
Domestic AUV	$	2,138		$	1,827
Domestic same store sales growth	19.9		%	18.3		%
Company-owned domestic same store sales growth	7.7		%	8.2		%
Total revenue	$	625,807		$	460,055
Net income	$	108,717		$	70,175
Adjusted EBITDA(2)	$	212,061		$	146,484

(1) The percentage of system-wide sales attributable to company-owned restaurants was 2.5% and 2.8% for the fiscal years ended December 28, 2024 and December 30, 2023, respectively. The remainder was generated by franchised restaurants, as reported by our franchisees.

(2) EBITDA and Adjusted EBITDA are supplemental measures of our performance that are not required by, or presented in accordance with, accounting principles generally accepted in the United States (“GAAP”). EBITDA and Adjusted EBITDA should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP. These should not be viewed as an alternative to cash flows from operating activities as a measure of our liquidity.

We caution investors that amounts presented in accordance with our definitions of EBITDA and Adjusted EBITDA may not be comparable to similar measures disclosed by our competitors, because not all companies and analysts calculate EBITDA and Adjusted EBITDA in the same manner. We present EBITDA and Adjusted EBITDA because we consider them to be important supplemental measures of our performance and believe they are frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. Management believes that investors’ understanding of our performance is enhanced by including these non-GAAP financial measures as a reasonable basis for comparing our ongoing results of operations. Many investors are interested in understanding the performance of our business by comparing our results from ongoing operations on a period-over-period basis and would ordinarily add back non-cash expenses such as depreciation and amortization, as well as items that are not part of normal day-to-day operations of our business.

Management uses EBITDA and Adjusted EBITDA:

•as a measurement of operating performance because they assist us in comparing the operating performance of our restaurants on a consistent basis, as they remove the impact of items not directly resulting from our core operations;

•for planning purposes, including the preparation of our internal annual operating budget and financial projections;

•to evaluate the performance and effectiveness of our operational strategies;

•to evaluate our capacity to fund capital expenditures and expand our business; and

•to calculate incentive compensation payments for our employees, including assessing performance under our annual incentive compensation plan and determining the vesting of performance-based equity awards.

By providing these non-GAAP financial measures, together with a reconciliation to the most comparable GAAP measure, we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation, or as an alternative to, or a substitute for net income or other financial statement data presented in our consolidated financial statements as indicators of financial performance. Some of the limitations are:

•such measures do not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;

•such measures do not reflect changes in, or cash requirements for, our working capital needs;

•such measures do not reflect the interest expense or the cash requirements necessary to service interest or principal payments on our debt;

•such measures do not reflect our tax expense or the cash requirements to pay our taxes;

•although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and such measures do not reflect any cash requirements for such replacements; and

•other companies in our industry may calculate such measures differently than we do, limiting their usefulness as comparative measures.

Due to these limitations, EBITDA and Adjusted EBITDA should not be considered as measures of discretionary cash available to us to invest in the growth of our business. We compensate for these limitations by relying primarily on our GAAP results and using these non-GAAP measures only as performance measures and only supplementally. As noted in the table below, Adjusted EBITDA includes adjustments for losses on debt extinguishment and financing transactions, transaction costs, costs and fees associated with investments in our strategic initiatives, system implementation costs, and stock-based compensation expense. We believe these adjustments are appropriate because the amounts recognized can vary significantly from period to period, do not directly relate to the ongoing operations of our restaurants, and complicate comparisons of our internal operating results and operating results of other restaurant companies over time. Each of the normal recurring adjustments and other adjustments described in this paragraph and in the reconciliation table below help management measure our core operating performance over time by removing items that are not related to day-to-day operations.

The following table reconciles net income to EBITDA and adjusted EBITDA for the fiscal years ended December 28, 2024 and December 30, 2023 (in thousands):


	Year ended
	December 28, 2024		December 30, 2023
Net income	$	108,717	$	70,175
Interest expense, net	21,292		18,227
Income tax expense	38,473		24,135
Depreciation and amortization	19,490		13,239
EBITDA	$	187,972	$	125,776
Additional adjustments:

Transaction costs (a)	316		—
Consulting fees (b)	—		5,150
System implementation costs (c)	1,713		—
Stock-based compensation expense (d)	22,060		15,558
Adjusted EBITDA	$	212,061	$	146,484

(a) Represents costs and expenses related to our 2024 securitized financing facility; all transaction costs are included in Selling, general and administrative on the Consolidated Statements of Comprehensive Income.

(b) Represents non-recurring consulting fees that are not part of our ongoing operations and are incurred to execute discrete, project-based strategic initiatives, which are included in Selling, general and administrative on the Consolidated Statements of Comprehensive Income. Fiscal year 2023 includes approximately $5.2 million in consulting fees relating to a comprehensive review of our long-term growth strategy for our domestic business to explore potential future initiatives, and which review was completed in fiscal year 2023. Given the magnitude and scope of this strategic review initiative that is not expected to recur in the foreseeable future, the Company considers the incremental consulting fees incurred with respect to the initiative not reflective of the ongoing costs to operate its business.

(c) System implementation costs represent non-recurring expenses incurred related to the development and implementation of new enterprise resource planning and human capital management technology, which are included in Selling, general and administrative on the Consolidated Statements of Comprehensive Income.

(d) Includes non-cash, stock-based compensation, net of forfeitures.

Results of Operations

Year ended December 28, 2024 compared to year ended December 30, 2023

The following table sets forth certain income and expense items included in the Consolidated Statements of Comprehensive Income for fiscal year 2024 and fiscal year 2023 (in thousands, except for percentages):


	Year ended				Increase / (Decrease)
	December 28, 2024		December 30, 2023		$		%
Revenue:
Royalty revenue, franchise fees and other	$	288,354	$	207,077	$	81,277	39.2	%
Advertising fees	217,630		157,138		60,492		38.5	%
Company-owned restaurant sales	119,823		95,840		23,983		25.0	%
Total revenue	625,807		460,055		165,752		36.0	%
Costs and expenses:
Cost of sales (1)	91,632		70,646		20,986		29.7	%
Advertising expenses	233,306		166,583		66,723		40.1	%
Selling, general and administrative	116,801		96,898		19,903		20.5	%
Depreciation and amortization	19,490		13,239		6,251		47.2	%
(Gain) loss on disposal of assets	(1,038)		95		(1,133)		NM*
Total costs and expenses	460,191		347,461		112,730		32.4	%
Operating income	165,616		112,594		53,022		47.1	%
Interest expense, net	21,292		18,227		3,065		16.8	%

Other (income) expense	(2,866)		57		(2,923)		NM*
Income before income tax expense	147,190		94,310		52,880		56.1	%
Income tax expense	38,473		24,135		14,338		59.4	%
Net income	$	108,717	$	70,175	$	38,542	54.9	%


*			Not meaningful.
(1)			Cost of sales includes all operating expenses of company-owned restaurants, including advertising expenses, but excludes depreciation and amortization, which are presented separately.

Revenue

During fiscal year 2024, total revenue was $625.8 million, an increase of $165.8 million, or 36.0%, compared to $460.1 million in the prior fiscal year.

Royalty revenue, franchise fees and other increased $81.3 million, of which $36.1 million was due to domestic same store sales growth of 19.9%, and $29.9 million was due to net new franchise development since December 30, 2023. Other revenue increased by $7.2 million primarily due to an increase in vendor rebates.

Advertising fees increased $60.5 million, of which $51.0 million was due to a 36.8% increase in system-wide sales during fiscal year 2024, and $9.5 million was due to an increase in the national advertising fund contribution rate to 5.3% from 5.0% effective the first day of the fiscal second quarter 2024.

Company-owned restaurant sales increased $24.0 million, of which $16.0 million was related to company-owned same store sales growth of 7.7%, driven primarily by an increase in transactions, and $8.0 million was primarily related to company-owned restaurants opened and acquired during fiscal year 2024.

Cost of sales


	Year ended		As a % of company-owned restaurant sales		Year ended		As a % of company-owned restaurant sales
	December 28, 2024				December 30, 2023

Food, beverage and packaging costs	$	43,371	36.2	%	$	31,697	33.1	%
Labor costs	28,317		23.6	%	22,963		24.0	%
Other restaurant operating expenses	23,025		19.2	%	18,314		19.1	%
Vendor rebates	(3,081)		(2.6)	%	(2,328)		(2.4)	%


Total cost of sales	$	91,632	76.5	%	$	70,646	73.7	%

Food, beverage and packaging costs as a percentage of company-owned restaurant sales were 36.2% in fiscal year 2024 compared to 33.1% in the prior fiscal year. The increase is primarily due to a 43.0% increase in the cost of bone-in chicken wings as compared to the prior year period. Our purchases in the prior fiscal year period were tied primarily to the spot market, which benefited from significant deflation in the cost of bone-in chicken wings. During fiscal year 2024, we were able to move the majority of our purchases of bone-in chicken wings away from the spot market to provide more predictable food cost.

Labor costs as a percentage of company-owned restaurant sales were 23.6% in fiscal year 2024 compared to 24.0% in the prior fiscal year. The decrease is primarily due to sales leverage related to the company-owned domestic same store sales increase of 7.7%, offset by an increase in company-owned restaurant wages.

Other restaurant operating expenses as a percentage of company-owned restaurant sales were 19.2% in fiscal year 2024 compared to 19.1% in the prior fiscal year. The increase as a percentage of company-owned restaurant sales was primarily due to an increase in the national advertising fund contribution rate to 5.3% from 5.0% effective the first day of the fiscal second quarter 2024, partially offset by sales leverage related to the company-owned domestic same store sales increase of 7.7%.

Advertising expenses

Advertising expenses were $233.3 million, an increase of $66.7 million, compared to $166.6 million in fiscal year 2023. Advertising expenses are recognized at the same time the related revenue is recognized, which does not necessarily correlate to the actual timing of the related advertising spend.

Selling, general and administrative (“SG&A”)

SG&A was $116.8 million in fiscal year 2024, an increase of $19.9 million, or 20.5%, compared to $96.9 million in the prior fiscal year. The increase in SG&A expense was driven by an increase in headcount-related expenses of $10.2 million to support the growth in our business, an increase in performance-based stock compensation and incentive compensation expense of $7.6 million related primarily to the Company’s performance, and an increase in professional and consulting fees of $1.2 million associated with the Company’s strategic initiatives, including system implementation costs.

Depreciation and amortization

Depreciation and amortization was $19.5 million in fiscal year 2024, an increase of $6.3 million, or 47.2%, compared to $13.2 million in the prior fiscal year. The increase in depreciation and amortization was primarily due to software assets placed into service during fiscal year 2024 that relate to the launch of our proprietary technology platform: MyWingstop.

Interest expense, net

Interest expense, net was $21.3 million in fiscal year 2024, an increase of $3.1 million, or 16.8%, compared to $18.2 million in the prior fiscal year. The increase was primarily driven by less interest income earned during fiscal year 2024 due to higher cash balances during fiscal year 2023.

Income tax expense

The effective tax rate in fiscal year 2024 was 26.1%, compared to an effective tax rate of 25.6% in the prior fiscal year. The increase in the effective tax rate was primarily due to an increase in non-deductible expenses.

Liquidity and Capital Resources

General. Our primary sources of liquidity and capital resources are cash provided from operating activities, cash and cash equivalents on hand, and borrowings available under our securitized financing facility. Our primary requirements for liquidity and capital are working capital, general corporate needs, capital expenditures, income tax payments, debt service requirements,

and dividend payments. Historically, we have operated with minimal positive working capital or with negative working capital. We generally utilize available cash flows from operations to invest in our business, service our debt obligations, and pay dividends. As of December 28, 2024, the Company had $359.6 million of cash and cash equivalents on its balance sheet, including advertising fund cash and cash equivalents.

Based upon current levels of operations and anticipated growth, we expect that cash flows from operations, combined with our securitized financing facility including our Variable Funding Notes, will be sufficient to meet our capital expenditure, working capital and debt service requirements for at least the next twelve months and the foreseeable future.

The following table shows summary cash flows information for fiscal years 2024 and 2023 (in thousands):


	Year ended
	December 28, 2024		December 30, 2023
Net cash provided by (used in):
Operating activities	$	157,610	$	121,601
Investing activities	(62,477)		(52,153)
Financing activities	144,765		(155,487)
Net change in cash, cash equivalents and restricted cash	$	239,898	$	(86,039)

Operating activities. Our cash flows from operating activities are principally driven by sales at both franchise restaurants and company-owned restaurants, as well as franchise fees. We collect franchise royalties from our franchise owners on a weekly basis. Restaurant-level operating costs at our company-owned restaurants, unearned franchise fees, and corporate overhead costs also impact our cash flows from operating activities.

Net cash provided by operating activities was $157.6 million in fiscal year 2024, an increase of $36.0 million from cash provided by operating activities of $121.6 million in the prior fiscal year. The increase is primarily due to an increase in operating income, as well as changes in Ad Fund cash and cash equivalents, directly related to the timing of payments for expenses incurred for national advertising.

Investing activities. Our net cash used in investing activities was $62.5 million in fiscal year 2024, an increase of $10.3 million, from $52.2 million in fiscal year 2023. The increase in cash used in investing activities was primarily due to an increase in capital expenditures related to our technology investments, as well as the impact of additional restaurants acquired from franchisees as compared to the prior fiscal year period, partially offset by the sale of seven company-owned restaurants to a franchisee in fiscal year 2024.

Financing activities. Our net cash provided by financing activities was $144.8 million in fiscal year 2024, a change of $300.3 million, from net cash used in financing activities of $155.5 million in fiscal year 2023. The change is primarily related to the net cash provided by additional borrowings under our 2024 Class A-2 Notes (as defined below) of $500 million in fiscal year 2024, partially offset by an increase of $189.3 million in common stock repurchased under our share repurchase program as compared to the prior fiscal year.

Securitized financing facility. On December 3, 2024, the Company completed a securitized financing transaction, in which Wingstop Funding LLC, a limited purpose, bankruptcy-remote, indirect wholly owned subsidiary of the Company (the “Issuer”), issued $500 million of its Series 2024-1 5.858% Fixed Rate Senior Secured Notes, Class A-2 (the “2024 Class A-2 Notes”). The Issuer also increased the capacity of its revolving financing facility of Series 2022-1 Variable Funding Senior Notes, Class A-1 (the “Variable Funding Notes”) from $200 million to $300 million. Following the increase, borrowing capacity under the Variable Funding Notes permits borrowings of up to a maximum principal amount of $300 million, a portion of which may be used to issue letters of credit. The 2024 Class A-2 Notes and the Variable Funding Notes are referred to collectively as the “2024 Notes.” The proceeds from the securitized financing transaction were used to pay related transaction fees and expenses, strengthen the Company's liquidity position and for general corporate purposes, including the repurchase of shares of the Company’s common stock.

In addition to the 2024 Notes, the Company’s outstanding debt consists of its existing Series 2022-1 3.734% Fixed Rate Senior Secured Notes, Class A-2 (the “2022 Notes”) and Series 2020-1 2.84% Fixed Rate Senior Secured Notes, Class A-2 (the “2020 Notes”). No borrowings were outstanding under the Variable Funding Notes as of December 28, 2024.

Dividends. We paid quarterly cash dividends of $0.22 per share of common stock in each of the first two quarters of 2024, and quarterly cash dividends of $0.27 per share of common stock in both the third and fourth quarters of 2024, resulting in aggregate quarterly dividend payments of $28.7 million in fiscal year 2024. On February 18, 2025, the Company’s board of directors approved a dividend of $0.27 per share, to be paid on March 28, 2025 to stockholders of record as of March 7, 2025, totaling approximately $7.7 million.

We do not currently expect the restrictions in our debt instruments to impact our ability to make regular quarterly dividends pursuant to our quarterly dividend program. However, any future declarations of dividends, as well as the amount and timing of such dividends, is subject to capital availability and the discretion of our board of directors, which must evaluate, among other things, whether cash dividends are in the best interest of our stockholders.

Share Repurchase Program. On August 17, 2023, the Company’s board of directors approved a new share repurchase program with authorization to repurchase up to $250.0 million of its outstanding shares of common stock (the “August 2023 Authorization”). On August 23, 2023, the Company entered into an accelerated share repurchase agreement (the “2023 ASR Agreement”) with a third-party financial institution to repurchase $125.0 million of the Company’s common stock as part of the August 2023 Authorization. Under the 2023 ASR Agreement, the Company paid the financial institution $125.0 million in cash and received and retired a total of 645,952 shares of common stock at an average share price of $193.51. Final settlement of the ASR Agreement occurred on December 21, 2023.

On December 5, 2024, the Company’s board of directors authorized the purchase of up to an additional $500.0 million of its outstanding shares of common stock under its existing share repurchase program (the “December 2024 Authorization” and together with the August 2023 Authorization, the “Share Repurchase Program”), following the substantial completion of purchases of common stock under the August 2023 Authorization.

On December 9, 2024, the Company entered into an accelerated share repurchase agreement (the “2024 ASR Agreement”) with a third-party financial institution to repurchase $250.0 million of the Company’s common stock under its Share Repurchase Program. Pursuant to the ASR Agreement, during the fiscal fourth quarter of 2024 the Company made an initial payment to the financial institution of $250.0 million in cash and received and retired an initial delivery of 551,325 shares of common stock, representing an estimated 75% of the total shares expected to be delivered under the ASR Agreement, based on the closing price on the date of initial delivery of $328.54. The delivery of any remaining shares will occur at the final settlement of the transactions under the ASR Agreement, which is scheduled to occur in the fiscal first quarter of 2025. The number of shares to be delivered upon final settlement is based on the daily volume-weighted average share prices during the valuation period specified in the ASR Agreement, less a discount and subject to adjustments.

During fiscal year 2024, the Company repurchased and retired 720,804 shares at an average share price of $339.95, inclusive of the shares repurchased under the 2024 ASR Agreement. During fiscal year 2023, the Company repurchased and retired 645,952 shares at an average share price of $193.51 under the 2023 ASR Agreement. As of December 28, 2024, $311.1 million remained available under the Share Repurchase Program. Since the inception of the Company’s share repurchase program in August 2023, the Company has repurchased and retired 1,366,756 shares of its common stock at an average price of $272.89 per share.

Contractual Obligations

Our cash requirements greater than twelve months from contractual obligations and commitments include:

Debt Obligations and Interest Payments. Refer to “Note 11 - Debt Obligations” of the Notes to the Consolidated Financial Statements for further information of our obligations and the timing of expected payments.

Operating Leases. Refer to “Note 12 - Leases” of the Notes to the Consolidated Financial Statements for further information of our obligations and the timing of expected payments.

Indemnifications. We are parties to certain indemnification obligations to third parties in the ordinary course of business. We believe the probability of incurring an actual liability under such indemnifications is sufficiently remote so that no liability has been recorded.

Critical Accounting Policies and Estimates

The preparation of financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. These estimates may require application of management’s most

difficult, subjective or complex judgments, often as a result of matters that are inherently uncertain and may change in subsequent periods. While we apply our judgment based on assumptions believed to be reasonable under the circumstances, actual results could vary from these assumptions. It is possible that materially different amounts would be reported using different assumptions. Our most significant accounting policies and estimates are more fully described in “Note 1 - Basis of Presentation and Summary of Significant Accounting Policies” of the Notes to the Consolidated Financial Statements. However, we believe the accounting policies described below are particularly important to the portrayal and understanding of our financial position and results of operations.

Revenue Recognition

Revenues consist primarily of royalties, national advertising fund contributions, initial and renewal franchise fees, and upfront fees from development agreements and international territory agreements. The Company's performance obligations under its franchise agreements consist of (a) a franchise license, (b) pre-opening services, such as training, and (c) ongoing services, such as management of Ad Fund contributions, development of training materials and menu items, and restaurant monitoring. These performance obligations are highly interrelated, so they are not considered to be individually distinct and therefore are accounted for as a single performance obligation, which is satisfied by providing a right to use the Company's intellectual property over the term of each franchise agreement. Franchise fee, development fee and international territory fee payments received by the Company before the restaurant opens are recorded as deferred revenue in the Consolidated Balance Sheets.

Royalties, including franchisee contributions to the Ad Fund, are calculated as a percentage of franchise restaurant sales over the term of the franchise agreement. Initial and renewal franchise fees are payable by the franchisee prior to the restaurant opening or at the time of a renewal of an existing franchise agreement. The Company's franchise agreement royalties, inclusive of Ad Fund contributions, represent sales-based royalties that are related entirely to the Company's performance obligation under the franchise agreement and are recognized as franchised restaurant sales occur, payable weekly. Additionally, initial and renewal franchise fees are recognized as revenue on a straight-line basis over the term of the respective agreement. The Company's performance obligation under development agreements and international territory agreements generally consists of an obligation to grant exclusive development rights over a stated term. These development rights are not distinct from franchise agreements, so upfront fees paid by franchisees for development rights are apportioned to each franchised restaurant opened and accounted for as an initial franchise fee.


Item 7A.			Quantitative and Qualitative Disclosures of Market Risks

Commodity Price Risk. We are exposed to market risks from changes in commodity prices. Many of the food products purchased by us are affected by weather, production, availability, and other factors outside our control. Although we enter into arrangements in an effort to mitigate the price volatility of food costs, there are no established fixed price markets for fresh bone-in chicken wings, so we may be subject to prevailing market conditions. Bone-in chicken wings accounted for approximately 19.8% and 16.8% of our company-owned restaurant costs of sales in fiscal years 2024 and 2023. A hypothetical 10.0% increase in the bone-in chicken wing costs in fiscal year 2024 would have increased company-owned restaurant costs of sales by approximately $1.8 million during the year. We do not engage in speculative financial transactions nor do we hold or issue financial instruments for trading purposes.

Interest Rate Risk. Our long-term debt, including current portion, consisted entirely of the $1,220.9 million incurred under the 2024 Notes, 2022 Notes and 2020 Notes as of December 28, 2024 (excluding unamortized debt issuance costs). The Company’s predominantly fixed-rate debt structure has reduced its exposure to interest rate increases that could adversely affect its earnings and cash flows, but the Company remains exposed to changes in market interest rates reflected in the fair value of the debt and to the risk that the Company may need to refinance maturing debt with new debt at a higher rate. The Company is exposed to interest rate increases under the Variable Funding Notes; however, the Company had no outstanding borrowings under its Variable Funding Notes as of December 28, 2024.


Item 8.			Financial Statements and Supplementary Data

Information with respect to this Item is set forth beginning on page F-1. See “Item 15. Exhibits and Financial Statement Schedules” below.


Item 9.			Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.


Item 9A.			Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures, pursuant to Rule 13a-15 under the Exchange Act, as of the end of the period covered by this Annual Report on Form 10-K. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of December 28, 2024 to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) that occurred during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Management’s Report on Internal Control over Financial Reporting

The management of Wingstop Inc. is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) under the Exchange Act. Internal control over financial reporting is a process to provide reasonable assurance regarding the reliability of our financial reporting for external purposes in accordance with accounting principles generally accepted in the United States. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Our management, including our Chief Executive Officer and Chief Financial Officer, assessed the effectiveness of our internal control over financial reporting as of December 28, 2024. In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control-Integrated Framework (2013). Based on such assessment our management has concluded that, as of December 28, 2024, our internal control over financial reporting is effective based on those criteria.

KPMG LLP, an independent registered public accounting firm, has issued an attestation report, included herein, on the effectiveness of our internal control over financial reporting as of December 28, 2024.

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors

Wingstop Inc.:

Opinion on Internal Control Over Financial Reporting

We have audited Wingstop Inc. and subsidiaries’ (the Company) internal control over financial reporting as of December 28, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 28, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 28, 2024 and December 30, 2023, the related consolidated statements of comprehensive income, stockholders’ deficit, and cash flows for each of the years in the three-year period ended December 28, 2024, and the related notes (collectively, the consolidated financial statements), and our report dated February 19, 2025 expressed an unqualified opinion on those consolidated financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ KPMG LLP

Dallas, Texas

February 19, 2025


Item 9B.			Other Information

During the quarter ended December 28, 2024, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.


Item 9C.			Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.

Not applicable.

PART III


Item 10.			Directors, Executive Officers and Corporate Governance

Information required by this Item 10 will be included in our definitive Proxy Statement for the 2025 Annual Meeting of Stockholders and such disclosure is incorporated herein by reference.


Item 11.			Executive Compensation

Information required by this Item 11 will be included in our definitive Proxy Statement for the 2025 Annual Meeting of Stockholders and such disclosure is incorporated herein by reference.


Item 12.			Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Information required by this Item 12 will be included in our definitive Proxy Statement for the 2025 Annual Meeting of Stockholders and such disclosure is incorporated herein by reference.


Item 13.			Certain Relationships and Related Transactions, and Director Independence

Information required by this Item 13 will be included in our definitive Proxy Statement for the 2025 Annual Meeting of Stockholders and such disclosure is incorporated herein by reference.


Item 14.			Principal Accounting Fees and Services

The Company’s independent registered public accounting firm is KPMG LLP. Information required by this Item 14 will be included in our definitive Proxy Statement for the 2025 Annual Meeting of Stockholders and such disclosure is incorporated herein by reference.

PART IV


Item 15.			Exhibits and Financial Statement Schedules

(a)			Financial Statements
			Refer to Index to Financial Statements appearing on Page F-1.
(b)			Financial Statement Schedules
			No financial statement schedules are provided because the information called for is not required or is shown in the financial statements or the notes thereto.
(c)			Exhibits
			The exhibits listed below are filed or incorporated by reference as a part of this report.


Exhibit No.			Description
3.1			Amended and Restated Certificate of Incorporation of Wingstop Inc., as amended through June 15, 2020, filed as Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 27, 2020 (File No. 001-37425) and incorporated herein by reference.
3.2			Amended and Restated Bylaws of Wingstop Inc., effective as of December 1, 2022, filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K (File No. 001-37425) on December 2, 2022 and incorporated herein by reference.
4.1			Form of Stock Certificate for Common Stock, filed as Exhibit 4.1 to the Company’s Registration Statement on Form S-1/A (Registration No. 333-203891) on June 2, 2015 and incorporated herein by reference.
4.2			Second Amended and Restated Base Indenture, dated as of March 9, 2022, by and between Wingstop Funding LLC, as Issuer, and Citibank, N.A., as Trustee and Securities Intermediary, filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K (File No. 001-37425) on March 10, 2022 and incorporated herein by reference.
4.3			Series 2020-1 Supplement to Base Indenture, dated as of October 30, 2020, by and between Wingstop Funding LLC, as Issuer of the Series 2020-1 fixed rate senior secured notes, Class A-2, and Series 2020-1 variable funding senior secured notes, Class A-1, and Citibank, N.A., as Trustee and Series 2020-1 Securities Intermediary, filed as Exhibit 4.2 to the Company's Current Report on Form 8-K (File No. 001-37425) on November 2, 2020 and incorporated herein by reference.
4.4			Series 2022-1 Supplement to Base Indenture, dated as of March 9, 2022, by and between Wingstop Funding LLC, as Issuer of the Series 2022-1 fixed rate senior secured notes, Class A-2, and Series 2022-1 variable funding senior secured notes, Class A-1, and Citibank, N.A., as Trustee and Series 2022-1 Securities Intermediary, filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K (File No. 001-37425) on March 10, 2022 and incorporated herein by reference.
4.5			First Amendment to the Second Amended and Restated Base Indenture, dated as of December 3, 2024, by and between Wingstop Funding LLC, as Issuer, and Citibank, N.A., as Trustee and Securities Intermediary, filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K (File No. 001-37425) on December 4, 2024 and incorporated herein by reference.
4.6			Series 2024-1 Supplement to Base Indenture, dated as of December 3, 2024, by and between Wingstop Funding LLC, as Issuer of the Series 2024-1 fixed rate senior secured notes, Class A-2, and Series 2022-1 variable funding senior secured notes, Class A-1, and Citibank, N.A., as Trustee and Series 2024-1 Securities Intermediary, filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K (File No. 001-37425) on December 4, 2024 and incorporated herein by reference.
4.7			First Supplement to Series 2022-1 Supplement, dated as of December 3, 2024, by and between Wingstop Funding LLC, as Issuer of the Series 2022-1 variable funding senior notes, Class A-1, and Citibank, N.A., as Trustee and Series 2022-1 Securities Intermediary, filed as Exhibit 4.3 to the Company’s Current Report on Form 8-K (File No. 001-37425) on December 4, 2024 and incorporated herein by reference.
4.8			Description of Wingstop Inc. Common Stock, filed as Exhibit 4.4 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 25, 2021 (File No. 001-37425) and incorporated herein by reference.


10.1			Amended and Restated Guarantee and Collateral Agreement, dated as of October 30, 2020, by and among Wingstop Guarantor LLC and Wingstop Franchising LLC, each as a Guarantor, in favor of Citibank, N.A., as Trustee, filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K (File No. 001-37425) on November 2, 2020 and incorporated herein by reference.


10.2			Amended and Restated Management Agreement, dated as of October 30, 2020, by and among Wingstop Funding LLC, Wingstop Franchising LLC, Wingstop Guarantor LLC, Wingstop Restaurants Inc., as Manager, and Citibank, N.A., as Trustee, filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K (File No. 001-37425) on November 2, 2020 and incorporated herein by reference.
10.3†			Wingstop Inc. 2015 Omnibus Incentive Compensation Plan, filed as Exhibit 10.18 to the Company’s Registration Statement on Form S-1/A (Registration No. 333-203891) on June 2, 2015 and incorporated herein by reference.
10.4†			Amendment One to the Wingstop Inc. 2015 Omnibus Incentive Compensation Plan, effective as of June 11, 2015, filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 27, 2015 (File No. 001-37425) and incorporated herein by reference.
10.5†			Amendment Two to the Wingstop Inc. 2015 Omnibus Incentive Compensation Plan, effective as of August 3, 2017, filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017 (File No. 001-37425) and incorporated herein by reference.
10.6†			Wingstop Inc. 2024 Omnibus Incentive Plan, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 001-37425) on May 23, 2024 and incorporated herein by reference.
10.7†			Form of Service-based Restricted Stock Unit Award Agreement under the Wingstop Inc. 2024 Omnibus Incentive Plan, filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K (File No. 001-37425) on May 23, 2024 and incorporated herein by reference.
10.8†			Form of Performance-based Restricted Stock Unit Award Agreement under the Wingstop Inc. 2024 Omnibus Incentive Plan, filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K (File No. 001-37425) on May 23, 2024 and incorporated herein by reference.
10.9†			Form of Stock Option Award Agreement under the Wingstop Inc. 2024 Omnibus Incentive Plan, filed as Exhibit 10.4 to the Company’s Current Report on Form 8-K (File No. 001-37425) on May 23, 2024 and incorporated herein by reference.
10.10†			Form of Restricted Stock Award Agreement under the Wingstop Inc. 2024 Omnibus Incentive Plan, filed as Exhibit 10.5 to the Company’s Current Report on Form 8-K (File No. 001-37425) on May 23, 2024 and incorporated herein by reference.
10.11†			Wingstop Inc. Amended and Restated Executive Severance Plan, effective May 26, 2022, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 001-37425) on May 27, 2022 and incorporated herein by reference.
10.12†			Form of Wingstop Inc. Executive Severance Plan Participation Agreement, filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K (File No. 001-37425) on May 27, 2022 and incorporated herein by reference.
10.13†			Form of Indemnification Agreement, filed as Exhibit 10.16 to the Company’s Registration Statement on Form S-1/A (Registration No. 333-203891) on June 2, 2015 and incorporated herein by reference.
10.14†			Wingstop Inc. Employee Stock Purchase Plan, filed as Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 30, 2019 (File No. 001-37425) and incorporated herein by reference.
10.15†			Offer Letter between Wingstop Inc. and Michael J. Skipworth, dated April 25, 2022, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 001-37425) on April 29, 2022 and incorporated herein by reference.
10.16			Purchase Agreement, dated as of November 19, 2024, by and among the Company, certain indirect subsidiaries of the Company party thereto, Morgan Stanley & Co. LLC and Barclays Capital Inc, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 001-37425) on November 20, 2024 and incorporated herein by reference.
10.17			Amended and Restated Class A-1 Note Purchase Agreement, dated as of December 3, 2024, by and among Wingstop Funding LLC, as Issuer, each of Wingstop Guarantor LLC and Wingstop Franchising LLC, each as a Guarantor, Wingstop Restaurants Inc., as Manager, the conduit investors party thereto, the financial institutions party thereto, certain funding agents, Morgan Stanley Asset Funding Inc., as Administrative Agent and Morgan Stanley Bank, N.A., as L/C Provider, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 001-37425) on December 4, 2024 and incorporated herein by reference.
19.1*			Wingstop Inc. Insider Trading Compliance Policy.
21.1*			List of Subsidiaries of Wingstop Inc.
23.1*			Consent of KPMG LLP, independent registered public accounting firm.

31.1*			Certification of Chief Executive Officer, pursuant to Rule 13a-14(a) or 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*			Certification of Chief Financial Officer, pursuant to Rule 13a-14(a) or 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**			Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.


32.2**			Certification of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
97.1†			Wingstop Inc. Clawback Policy , filed as Exhibit 97 .1 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 30 , 202 3 (File No. 001-37425) and incorporated herein by reference .
101.INS*			Inline XBRL Instance Document (XBRL tags are embedded within the Inline XBRL document).
101.SCH*			Inline XBRL Taxonomy Extension Schema Document.
101.CAL*			Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*			Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*			Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*			Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104*			Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).

__________________

*Filed herewith.

** The certifications attached as Exhibits 32.1 and 32.2 furnished herewith are not deemed “filed” with the SEC and are not to be incorporated by reference into any filing of Wingstop Inc. under the Securities Act or the Exchange Act, whether made before or after the date of this Annual Report on Form 10-K, irrespective of any general incorporation language contained in such filing except to the extent the registrant specifically incorporates it by reference.

†Indicates management contract or compensatory plan or arrangement.


Item 16.			Form 10-K Summary

None.

Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Wingstop Inc.
/s/ Michael J. Skipworth
Michael J. Skipworth
President and Chief Executive Officer (Principal Executive Officer)

February 19, 2025

Pursuant to the requirements of the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Name

Title

Date

/s/ Michael J. Skipworth

President and Chief Executive Officer, Director

February 19, 2025

Michael J. Skipworth

(Principal Executive Officer)

/s/ Alex R. Kaleida

Chief Financial Officer

February 19, 2025

Alex R. Kaleida

(Principal Financial and Accounting Officer)

/s/ Lynn Crump-Caine

Chair of the Board

February 19, 2025

Lynn Crump-Caine

/s/ Krishnan Anand

Director

February 19, 2025

Krishnan Anand

/s/ David L. Goebel

Director

February 19, 2025

David L. Goebel

/s/ Michael J. Hislop

Director

February 19, 2025

Michael J. Hislop

/s/ Kate S. Lavelle

Director

February 19, 2025

Kate S. Lavelle

/s/ Kilandigalu M. Madati

Director

February 19, 2025

Kilandigalu M. Madati

/s/ Wesley S. McDonald

Director

February 19, 2025

Wesley S. McDonald

/s/ Anna M. Smith

Director

February 19, 2025

Anna M. Smith

/s/ Thomas R. Greco

Director

February 19, 2025

Thomas R. Greco

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Financial Statements


Report of Independent Registered Public Accounting Firm (PCAOB ID 185)			2
Consolidated Balance Sheets as of December 28, 2024 and December 30, 2023			4
Consolidated Statements of Comprehensive Income for the fiscal years ended December 28, 2024, December 30, 2023, and December 31, 2022			5
Consolidated Statements of Stockholders’ Deficit for the fiscal years ended December 28, 2024, December 30, 2023, and December 31, 2022			6
Consolidated Statements of Cash Flows for the fiscal years ended December 28, 2024, December 30, 2023, and December 31, 2022			7
Notes to Consolidated Financial Statements for the fiscal years ended December 28, 2024, December 30, 2023, and December 31, 2022			8

F-1

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors

Wingstop Inc.:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Wingstop Inc. and subsidiaries (the Company) as of December 28, 2024 and December 30, 2023, the related consolidated statements of comprehensive income, stockholders’ deficit, and cash flows for each of the years in the three-year period ended December 28, 2024, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 28, 2024 and December 30, 2023, and the results of its operations and its cash flows for each of the years in the three-year period ended December 28, 2024, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 28, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 19, 2025 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Evaluation of the sufficiency of audit evidence obtained over royalty revenue and advertising fees

As discussed in Notes 1 and 17 to the consolidated financial statements, the Company recognized $259.6 million of royalty revenue and $217.6 million of advertising fees for the year ended December 28, 2024. Royalty revenue and advertising fees are calculated as a percentage of franchise restaurant sales over the term of the franchise agreement.

We identified the evaluation of the sufficiency of audit evidence obtained over royalty revenue and advertising fees as a critical audit matter. This evaluation required subjective auditor judgement due to the highly automated nature of certain processes to record revenue that involve interfacing data across multiple IT systems. The complexity of the IT environment required the involvement of IT professionals with specialized skills and knowledge.

The following are the primary procedures performed to address this critical audit matter. We applied auditor judgement to determine the nature and extent of procedures to be performed over the processing and recording of revenue, including the

F-2

determination of IT systems for which those procedures were performed. We evaluated the design and tested the operating effectiveness of certain internal controls related to the processing and recording of revenue. We involved IT professionals with specialized skills and knowledge who assisted in testing certain general IT and automated internal controls over IT systems used for the processing and recording of revenue. We compared revenue recognized to cash received for royalty revenue and advertising fees. We confirmed with a sample of franchisees regarding the amount of royalties and advertising fees that they owed to the Company. In addition, we evaluated the overall sufficiency of the audit evidence obtained over royalty revenue and advertising fees by assessing the results of procedures performed.

/s/ KPMG LLP

We have served as the Company’s auditor since 2019.

Dallas, Texas

February 19, 2025

F-3

WINGSTOP INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(amounts in thousands, except share and par value data)


	December 28, 2024		December 30, 2023

Assets
Current assets
Cash and cash equivalents	$	315,910	$	90,216
Restricted cash	20,868		11,444
Accounts receivable, net	19,661		12,408
Prepaid expenses and other current assets	6,520		4,948
Advertising fund assets, restricted	32,659		25,328
Total current assets	395,618		144,344
Property and equipment, net	125,953		91,292
Operating lease assets	49,046		19,092
Goodwill	74,718		67,708
Trademarks	32,700		32,700
Customer relationships, net	6,476		7,740
Other non-current assets	31,735		14,949
Total assets	$	716,246	$	377,825
Liabilities and stockholders' deficit
Current liabilities
Accounts payable	$	6,943	$	4,725
Current portion of operating lease liabilities	1,059		2,380
Other current liabilities	46,782		38,571

Advertising fund liabilities	32,659		25,328
Total current liabilities	87,443		71,004
Long-term debt, net	1,206,201		712,327
Operating lease liabilities	58,169		17,807
Deferred revenues, net of current	38,877		30,145
Deferred income tax liabilities, net	1,085		3,721
Other non-current liabilities	57		187
Total liabilities	1,391,832		835,191
Commitments and contingencies (see Note 13)
Stockholders' deficit
Common stock, $0.01 par value; 100,000,000 shares authorized; 28,662,614 and 29,337,920 shares issued and outstanding as of December 28, 2024 and December 30, 2023, respectively	287		293
Additional paid-in-capital	1,568		2,676
Retained deficit	(676,940)		(459,994)
Accumulated other comprehensive loss	(501)		(341)
Total stockholders' deficit	(675,586)		(457,366)
Total liabilities and stockholders' deficit	$	716,246	$	377,825

See accompanying notes to consolidated financial statements.

F-4

WINGSTOP INC. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

(amounts in thousands, except per share data)


	Fiscal Year Ended
	December 28, 2024		December 30, 2023		December 31, 2022

Revenue:
Royalty revenue, franchise fees and other	$	288,354	$	207,077	$	158,614
Advertising fees	217,630		157,138		119,011
Company-owned restaurant sales	119,823		95,840		79,896
Total revenue	625,807		460,055		357,521
Costs and expenses:
Cost of sales (1)	91,632		70,646		63,395
Advertising expenses	233,306		166,583		123,069
Selling, general and administrative	116,801		96,898		67,061
Depreciation and amortization	19,490		13,239		10,899
(Gain) loss on disposal of assets	(1,038)		95		1,164
Total costs and expenses	460,191		347,461		265,588
Operating income	165,616		112,594		91,933
Interest expense, net	21,292		18,227		21,230
Loss on debt extinguishment and financing transactions	—		—		814
Other (income) expense	(2,866)		57		573
Income before income tax expense	147,190		94,310		69,316
Income tax expense	38,473		24,135		16,369
Net income	$	108,717	$	70,175	$	52,947

Earnings per share
Basic	$	3.72	$	2.36	$	1.77
Diluted	$	3.70	$	2.35	$	1.77







Other comprehensive income (loss)
Currency translation adjustment	$	(160)	$	296	$	(381)
Other comprehensive income (loss)	(160)		296		(381)
Comprehensive income	$	108,557	$	70,471	$	52,566

(1) Cost of sales includes all operating expenses of company-owned restaurants, including advertising expenses, and excludes depreciation and amortization, which are presented separately.

See accompanying notes to consolidated financial statements.

F-5

WINGSTOP INC. AND SUBSIDIARIES

Consolidated Statements of Stockholders’ Deficit

(amounts in thousands, except share data)


	Common Stock
	Shares	Amount	Additional Paid-In Capital	Retained Deficit	Accumulated Other Comprehensive Loss	Total Stockholders’ Deficit
Balance at December 26, 2021	29,837,454	299	463	(310,031)	(256)	(309,525)
Net income	—	—	—	52,947	—	52,947
Shares issued under stock plans	97,281	1	3,314	—	—	3,315
Tax payments for restricted stock upon vesting	(2,067)	—	—	(315)	—	(315)
Stock-based compensation expense	—	—	4,200	—	—	4,200
Dividends declared on common stock and equivalents	—	—	(5,180)	(135,922)	—	(141,102)
Currency translation adjustment	—	—	—	—	(381)	(381)
Balance at December 31, 2022	29,932,668	300	2,797	(393,321)	(637)	(390,861)
Net income	—	—	—	70,175	—	70,175
Shares issued under stock plans	65,779	—	951	—	—	951
Tax payments for restricted stock upon vesting	(14,575)	—	—	(2,480)	—	(2,480)
Stock-based compensation expense	—	—	15,558	—	—	15,558
Dividends declared on common stock and equivalents	—	—	(16,239)	(8,490)	—	(24,729)
Purchases of common stock	(645,952)	(7)	(391)	(125,878)	—	(126,276)
Currency translation adjustment	—	—	—	—	296	296
Balance at December 30, 2023	29,337,920	293	2,676	(459,994)	(341)	(457,366)
Net income	—	—	—	108,717	—	108,717
Shares issued under stock plans	58,234	1	1,556	—	—	1,557
Tax payments for restricted stock upon vesting	(12,736)	—	—	(4,427)	—	(4,427)
Stock-based compensation expense	—	—	22,060	—	—	22,060
Dividends declared on common stock and equivalents	—	—	(11,524)	(17,376)	—	(28,900)
Purchases of common stock	(720,804)	(7)	(13,200)	(303,860)	—	(317,067)
Currency translation adjustment	—	—	—	—	(160)	(160)
Balance at December 28, 2024	28,662,614	287	1,568	(676,940)	(501)	(675,586)

See accompanying notes to consolidated financial statements.

F-6

WINGSTOP INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(amounts in thousands)


	Fiscal Year Ended
	December 28, 2024		December 30, 2023		December 31, 2022

Operating activities
Net income	$	108,717	$	70,175	$	52,947
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	19,490		13,239		10,899

Deferred income taxes	(1,809)		(1,551)		(3,252)
Stock-based compensation expense	22,060		15,558		4,200
(Gain) loss on disposal of assets	(1,038)		95		1,164
Loss on debt extinguishment	—		—		814
Amortization of debt issuance costs	2,150		2,043		1,939
Changes in operating assets and liabilities:
Accounts receivable	(7,253)		(2,947)		(2,468)
Prepaid expenses and other assets	(13,221)		599		584
Advertising fund assets and liabilities, net	4,778		10,093		5,048
Accounts payable and other current liabilities	2,928		10,634		5,102
Deferred revenue	9,249		3,593		(712)
Other non-current liabilities	11,559		70		(27)
Cash provided by operating activities	157,610		121,601		76,238

Investing activities
Purchases of property and equipment	(51,929)		(40,833)		(23,940)
Acquisition of restaurants from franchisee	(14,048)		(10,832)		(7,809)
Proceeds from sales of assets	4,000		320		4,063
Payments for investments	(500)		(808)		(997)
Cash used in investing activities	(62,477)		(52,153)		(28,683)

Financing activities
Proceeds from exercise of stock options	1,557		951		3,315
Purchases of common stock	(314,664)		(125,401)		—
Borrowings of long-term debt	500,000		—		250,000
Repayments of long-term debt	—		(3,650)		(3,025)
Payment of deferred financing costs and other debt-related costs	(8,832)		—		(5,442)
Tax payments for restricted stock upon vesting	(4,427)		(2,480)		(315)
Dividends paid	(28,869)		(24,907)		(141,279)
Cash provided by (used in) financing activities	144,765		(155,487)		103,254

Net increase in cash, cash equivalents, and restricted cash	239,898		(86,039)		150,809
Cash, cash equivalents, and restricted cash at beginning of period	119,676		205,715		54,906
Cash, cash equivalents, and restricted cash at end of period	$	359,574	$	119,676	$	205,715

Supplemental information:
Accrued capital expenditures	$	3,955	$	2,963	$	7,273
Cash paid for interest	$	22,697	$	22,740	$	20,480
Cash paid for taxes	$	38,842	$	27,918	$	13,584

See accompanying notes to consolidated financial statements.

F-7

WINGSTOP INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements


(1)			Basis of Presentation and Summary of Significant Accounting Policies

Overview

Wingstop Inc., together with its consolidated subsidiaries (collectively, “Wingstop” or the “Company”), is in the business of franchising and operating Wingstop restaurants. As of December 28, 2024, the Company had a total of 2,563 restaurants in its system. The Company's restaurant base is 98% franchised, with 2,513 franchised restaurants (including 359 international restaurants) and 50 company-owned restaurants as of December 28, 2024.

Summary of Significant Accounting Policies


(a)			Principles of Consolidation

The accompanying consolidated financial statements include the accounts of Wingstop Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.


(b)			Fiscal Year End

The Company uses a 52/53-week fiscal year that ends on the last Saturday of the calendar year. Fiscal years 2024, 2023, and 2022 included 52, 52, and 53 weeks, respectively. The 53rd week in fiscal 2022 fell in the fiscal fourth quarter.


(c)			Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions, primarily related to long-lived asset valuation, indefinite and finite lived intangible asset valuation, income taxes, investments, leases, stock-based compensation, contingencies, and common stock equity valuations. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the period. Although management bases its estimates on historical experience and assumptions that are believed to be reasonable under the circumstances, actual results could differ from those estimates.


(d)			Cash, Cash Equivalents, and Restricted Cash

The Company continually monitors its positions with, and the credit quality of, the financial institutions in which it maintains its deposits and investments. As of December 28, 2024 and December 30, 2023, the Company maintained balances in various cash accounts in excess of federally insured limits. All highly liquid instruments purchased with an original maturity of three months or less are considered cash equivalents.

Restricted cash includes cash and cash equivalents held for future principal and interest payments as required by the Company's debt agreements (see Note 11). The Company also has Advertising fund restricted cash, which can only be used for activities related to the promotion of the Wingstop brand.

F-8

Cash, cash equivalents, and restricted cash within the Consolidated Balance Sheets that are included in the Consolidated Statements of Cash Flows as of December 28, 2024 and December 30, 2023 were as follows (in thousands):


	December 28, 2024		December 30, 2023
Cash and cash equivalents	$	315,910	$	90,216
Restricted cash	20,868		11,444
Restricted cash, included in Advertising fund assets, restricted	22,796		18,016
Total cash, cash equivalents, and restricted cash	$	359,574	$	119,676


(e)			Accounts Receivable

Accounts receivable, net of allowance for doubtful accounts, consists primarily of accrued royalty fee receivables, collected weekly in arrears, and vendor rebates. Management determines the allowance for doubtful accounts based on historical losses and current economic conditions. On a continuing basis, management analyzes delinquent receivables, which are charged off against the existing allowance account when determined to be uncollectible.


(f)			Inventories

Inventories, which consist of food and beverage products, paper goods, and supplies, are valued at the lower of cost (first-in, first-out) or net realizable value.


(g)			Cloud Computing Arrangements

Cloud computing arrangements (“CCA”) are recorded at cost less accumulated amortization. The Company capitalizes implementation costs associated with its cloud computing arrangements, which are recorded net of amortization in “Prepaid expenses and other current assets” and “Other assets.” CCA implementation costs are amortized over the term of the related hosting agreement, including renewal periods that are reasonably certain to be exercised. CCA implementation costs are included within operating activities in the Company’s consolidated statements of cash flows.


(h)			Property and Equipment

Property and equipment is recorded at cost less accumulated depreciation. Cost includes all direct costs necessary to acquire and prepare assets for use or to develop or obtain internal-use software, including internal labor. Depreciation is recorded using the straight-line method over the following estimated useful lives:


Property and Equipment			Estimated Useful Lives
Building			40 years
Leasehold and other improvements			Lesser of 7 to 10 years or the expected lease term
Equipment, furniture and fixtures			3 to 7 years
Capitalized software			3 to 10 years

At the time property and equipment are retired, the asset and accumulated depreciation are removed from the accounts, and any resulting gain or loss is included in earnings. The Company expenses repair and maintenance costs that maintain the appearance and functionality of the restaurant but do not extend the useful life of any restaurant asset. Improvements to leased properties are depreciated over the shorter of their useful life or the lease term, which includes a fixed, non-cancelable lease term plus any reasonably assured renewal periods. See Note 6 for additional information.


(i)			Impairment or Disposal of Long-Lived Assets

Property and equipment and finite-life intangible assets are reviewed for impairment periodically and whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. The Company’s assessment of recoverability of property and equipment and finite-lived intangible assets is performed at the component level, which is generally an individual restaurant and requires judgment and an estimate of future restaurant generated cash flows. The Company’s estimates of fair values are based on the best information available and require the use of estimates, judgments, and projections. The Company did not record any impairment losses on long-lived assets in fiscal years 2024, 2023, or 2022.

F-9


(j)			Goodwill and Indefinite-Lived Intangible Assets

The Company’s indefinite-lived intangible assets consist of goodwill and trademarks, which are not subject to amortization. We generally record goodwill in connection with the acquisition of restaurants from franchisees. On an annual basis (October 1st of each fiscal year) and whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable, the Company reviews the recoverability of goodwill and indefinite-lived intangible assets. No indications of impairment were identified during fiscal years 2024, 2023, or 2022.

It is possible that changes in circumstances or changes in management’s judgments, assumptions, and estimates could result in an impairment charge of a portion or all of its goodwill or other intangible assets.


(k)			Foreign Currency Translation

The foreign currency translation adjustment included in the Consolidated Statements of Comprehensive Income represents the unrealized impact of translating our foreign investment. This amount is not included in Net income and would only be realized upon disposition of our investment. The related Accumulated other comprehensive loss is presented in the Consolidated Balance Sheets.


(l)			Revenue Recognition

Revenues consist primarily of royalties, national advertising fund (the "Ad Fund") contributions (advertising fees), initial and renewal franchise fees, and upfront fees from development agreements and international territory agreements. The Company's performance obligations under its franchise agreements consist of (a) a franchise license, (b) pre-opening services, such as training, and (c) ongoing services, such as management of the Ad Fund contributions, development of training materials and menu items, and restaurant monitoring. These performance obligations are highly interrelated, so they are not considered to be individually distinct and therefore are accounted for as a single performance obligation, which is satisfied by providing a right to use the Company's intellectual property over the term of each franchise agreement. Franchise fee, development fee and international territory fee payments received by the Company before the restaurant opens are recorded as deferred revenue in the Consolidated Balance Sheets.

The Company records food and beverage revenues from company-owned restaurants upon sale to the customer. The Company collects and remits sales, food and beverage, alcoholic beverage, and hospitality taxes on transactions with customers and reports such amounts under the net method in its Consolidated Statements of Comprehensive Income. Accordingly, these taxes are not included in gross revenue.

The Company records a liability in the period in which a gift card is sold. As gift cards are redeemed, the liability is reduced. When gift cards are redeemed at a franchisee-operated restaurant, the revenue and related administrative costs are recognized by the franchisee. The Company recognizes revenue and related administrative costs when gift cards are redeemed at company-owned restaurants.


(m)			Consideration from Vendors

The Company has entered into food and beverage supply agreements with certain major vendors. Pursuant to the terms of these arrangements, rebates are provided to the Company from the vendors based upon the dollar volume of purchases for company-owned restaurants and franchised restaurants. These incentives are recognized as earned throughout the year and are classified as a reduction in Cost of sales with any consideration received in excess of the total expense of the vendor’s products included within Royalty revenue, franchise fees and other within the Consolidated Statements of Comprehensive Income. The incentives recognized were approximately $25.3 million, $17.7 million, and $13.1 million, during fiscal years 2024, 2023, and 2022,

F-10

respectively, of which $3.1 million, $2.3 million, and $1.8 million was classified as a reduction in Cost of sales during fiscal years 2024, 2023, and 2022, respectively.


(n)			Advertising Expenses

The Company administers the Ad Fund, for which a percentage of gross sales is collected from domestic restaurant franchisees and company-owned restaurants to be used for various forms of advertising for the Wingstop brand. Effective the first day of the fiscal second quarter of 2024, domestic franchisees’ contribution rates to the national advertising fund increased to 5.3%, up from 5%, of gross sales. The national advertising fund contribution rate was 5% for fiscal year 2023.

The Company administers and directs the development of all advertising and promotion programs in the Ad Fund for which it collects advertising contributions in accordance with the provisions of its franchise agreements. The Company has a contractual obligation with regard to these advertising contributions. The Company consolidates and reports all assets and liabilities of the Ad Fund as restricted assets of the Ad Fund and liabilities of the Ad Fund within current assets and current liabilities, respectively, in the Consolidated Balance Sheets. As of December 28, 2024, the restricted assets and liabilities of the Ad Fund consisted of $23.7 million of cash and cash equivalents, $9.0 million of accounts receivable, $15.3 million of accrued expenses, and $17.3 million of accounts payable. As of December 30, 2023, the restricted assets and liabilities of the Ad Fund consisted of $18.8 million of cash and cash equivalents, $6.6 million of accounts receivable, $17.2 million of accrued expenses, and $8.1 million of accounts payable.

Pursuant to the Company’s franchise agreements, use of Ad Fund contributions is restricted to advertising, public relations, merchandising, similar activities, and administrative expenses to increase sales and further enhance the public reputation of the Wingstop brand. The aforementioned administrative expenses may also include personnel expenses and allocated costs incurred by the Company that are directly associated with administering the Ad Fund, as outlined in the provisions of the applicable franchise agreements.

The Company expenses the production costs of advertising in the period in which the advertising first occurs. All other advertising and promotional costs are expensed in the period incurred. When contributions to the Ad Fund exceed the related advertising expenses, advertising costs are accrued up to the amount of the related contributions. Ad Fund contributions and expenditures are reported on a gross basis on the Consolidated Statements of Comprehensive Income.

Advertising expenses incurred by company-owned restaurants are included within Cost of sales in the Consolidated Statements of Comprehensive Income. Company-owned restaurants incurred advertising expenses of $6.3 million, $4.9 million, and $3.6 million in fiscal years 2024, 2023, and 2022, respectively.


(o)			Leases

The Company determines whether an arrangement is a lease at inception and leases restaurants and office space under operating leases. Most lease agreements contain tenant improvement allowances, rent holidays, rent escalation clauses, and/or contingent rent provisions. For leases with renewal periods at the Company’s option, the Company determines the expected lease period based on whether the renewal of any options are reasonably certain at the inception of the lease. For purposes of measurement and amortization of the right-of-use asset and associated lease liability over the terms of the leases, the Company uses the date it takes possession of the leased space for construction purposes at the beginning of the lease term, which is generally two to three months prior to a restaurant’s opening date. As most leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available on the commencement date in determining the present value of lease payments. The Company has lease agreements that contain both lease and non-lease components which are not separated. Certain leases require the Company to pay a portion of real estate taxes, utilities, building operating expenses, insurance, and other charges in addition to rent.


(p)			Stock-Based Compensation

The Company measures stock-based compensation cost at fair value on the date of grant for all share-based awards and recognizes compensation expense over the service period that the awards are expected to vest. The Company has elected to recognize compensation cost for graded-vesting awards subject only to a service condition over the requisite service period of the entire award. For performance awards, the Company recognizes expense in the period in which vesting becomes probable. The Company accounts for forfeitures as they occur.

F-11

F-12


(q)			Income Taxes

Income taxes are accounted for under the asset and liability method. Under this method, a deferred tax asset or liability is recognized for the estimated future tax effects attributable to temporary differences between the financial statement basis and the tax basis of assets and liabilities as well as tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period of the change. The Company files a consolidated federal income tax return including all of its wholly-owned subsidiaries.

Judgment is required in evaluating the Company’s uncertain tax positions and determining the Company’s income tax expense. The Company assesses the income tax position and records the liabilities for all years subject to examination based upon management’s evaluation of the facts, circumstances, and information available at the reporting date.


(r)			Recent Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU includes amendments requiring enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and can be applied either prospectively or retrospectively. We are currently evaluating the impact of adopting this ASU on our disclosures.

In November 2024, Financial Accounting Standards Board (the “FASB”) issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires, for each relevant expense caption on the income statement, detailed disclosure amounts for purchases of inventory, employee compensation, depreciation, and intangible asset amortization. The amendment is effective for fiscal years beginning after December 15, 2026, with early adoption permitted, and can be applied either prospectively or retrospectively. We are currently evaluating the impact of adopting this ASU on our disclosures.

Recently adopted

In November 2023, the FASB issued Accounting Standard Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure (“Segment Reporting”). The ASU updates reportable segment disclosure requirements, primarily through requiring enhanced disclosures about significant segment expenses and information used to assess segment performance. The Company adopted this guidance for the fiscal year ending December 28, 2024. Refer to Note 18 for our disclosure related to business segments.

We reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact on our consolidated financial statements.


(2)			Earnings Per Share

Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of shares of common stock outstanding for the reporting period. Diluted earnings per share reflects the potential dilution that could occur if securities convertible into, or other contracts to issue, common stock were exercised or converted into common stock. For the calculation of diluted earnings per share, the basic weighted average number of shares is increased by the dilutive effect of the exercise and vesting of stock options and service-based and performance-based restricted stock units, respectively, determined using the treasury stock method.

F-13

Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands):


	Fiscal Year
	December 28, 2024	December 30, 2023	December 31, 2022
Basic weighted average shares outstanding	29,262	29,769	29,893
Dilutive shares	122	87	70
Diluted weighted average shares outstanding	29,384	29,856	29,963

We had approximately 1,000 and 19,000 equity awards outstanding at December 28, 2024 and December 31, 2022, respectively, that were excluded from the dilutive earnings per share calculation because the effect would have been anti-dilutive. No equity awards were excluded from the dilutive earnings per share calculation at December 30, 2023 because the effect would have been anti-dilutive.


(3)			Stockholders’ Deficit

Dividends

In connection with the Company's regular dividend program, the Company declared and paid dividends of $28.7 million, or $0.98 per common share, in fiscal year 2024, $24.4 million, or $0.82 per common share, in fiscal year 2023, and $21.5 million, or $0.72 per common share, in fiscal year 2022.

Subsequent to the end of fiscal year 2024, on February 18, 2025, the Company’s board of directors declared a quarterly dividend of $0.27 per share of common stock, to be paid on March 28, 2025 to stockholders of record as of March 7, 2025, totaling approximately $7.7 million.

Separate from the Company's regular dividend program, the Company declared and paid special dividends of $119.5 million, or $4.00 per share of common stock, in fiscal year 2022. No special dividends were declared or paid during fiscal years 2024 and 2023.

Share Repurchase Program

On August 17, 2023, the Company’s board of directors approved a share repurchase program with authorization to purchase up to $250.0 million of its outstanding shares of common stock (the “August 2023 Authorization”). On December 5, 2024, the board of directors authorized the purchase of an additional $500.0 million of its outstanding shares of common stock under the share repurchase program (the “December 2024 Authorization” and together with the August 2023 Authorization, the “Share Repurchase Program”), following the substantial completion of purchases of common stock under the August 2023 Authorization. As of December 28, 2024, the Company had $311.1 million of availability remaining under the Share Repurchase Program.

F-14

On December 9, 2024, the Company entered into an accelerated share repurchase agreement (the “2024 ASR Agreement”) with a third-party financial institution to repurchase $250.0 million of the Company’s common stock under its Share Repurchase Program. Pursuant to the ASR Agreement, during the fiscal fourth quarter of 2024 the Company made an initial payment to the financial institution of $250.0 million in cash and received and retired an initial delivery of 551,325 shares of common stock, representing an estimated 75% of the total shares expected to be delivered under the 2024 ASR Agreement, based on the closing price on the date of initial delivery of $328.54. The delivery of any remaining shares will occur at the final settlement of the transactions under the 2024 ASR Agreement, which is scheduled to occur in the fiscal first quarter of 2025. The number of shares to be delivered upon final settlement is based on the daily volume-weighted average share prices during the valuation period specified in the ASR Agreement, less a discount and subject to adjustments.

In addition to the shares repurchased in connection with the 2024 ASR Agreement, during fiscal year 2024, the Company repurchased 169,479 shares with an aggregate purchase price of $377.09, under the August 2023 Authorization. After taking into consideration these repurchases, with the initial delivery under the 2024 ASR Agreement in December 2024 described above, the Company completed the August 2023 Authorization.

In August 2023, the Company entered into an accelerated share repurchase agreement (the “2023 ASR Agreement”) with a third-party financial institution to repurchase $125.0 million of the Company’s common stock as part of the August 2023 Authorization. Under the 2023 ASR Agreement, the Company paid the financial institution $125.0 million in cash and received and retired a total of 645,952 shares of common stock at an average share price of $193.51. Final settlement of the ASR Agreement occurred in December 2023. The total number of shares repurchased under the ASR Agreement was based on a daily volume-weighted average share price during the valuation period specified in the ASR Agreement, less a discount.


(4)			Fair Value Measurements

Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. Assets and liabilities are classified using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value as follows:

Level 1 - Unadjusted quoted prices for identical instruments traded in active markets.

Level 2 - Observable market-based inputs or unobservable inputs corroborated by market data.

Level 3 - Unobservable inputs reflecting management’s estimates and assumptions.

The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to their short-term nature. Fair value of debt is determined on a non-recurring basis, which results are summarized as follows (in thousands):


	Fair Value Hierarchy	December 28, 2024				December 30, 2023
		Carrying Value		Fair Value		Carrying Value		Fair Value
Securitized Financing Facility:
2020-1 Class A-2 Senior Secured Notes (1)	Level 2	$	472,800	$	439,846	$	472,800	$	423,823
2022-1 Class A-2 Senior Secured Notes (1)	Level 2	$	248,125	$	230,905	$	248,125	$	222,370
2024-1 Class A-2 Senior Secured Notes (1)	Level 2	$	500,000	$	496,050	$	—	$	—
Investments in bonds of LPH (Note 10) (2)	Level 3	$	3,699	$	4,560	$	3,557	$	4,306

(1) The fair value of the 2020-1, 2022-1, and 2024-1 Class A-2 Senior Secured Notes was estimated using available market information.

(2) The fair value approximates discounted cash flows using current market rates for debt investments with similar maturities and credit risk.

F-15


(5)			Accounts Receivable, net

Accounts receivable, net, consist of the following (in thousands):


	December 28, 2024		December 30, 2023
Vendor rebates receivable	$	7,575	$	5,311
Royalties receivable	8,641		5,717
Other receivables, net	3,445		1,380
Accounts receivable, net	$	19,661	$	12,408


(6)			Property and Equipment

Property and equipment, net, consisted of the following (in thousands):


	December 28, 2024		December 30, 2023
Building	$	15,769	$	15,769
Construction in progress	15,088		46,675
Equipment, furniture and fixtures	21,900		41,268
Leasehold and other improvements	37,560		26,599
Capitalized software	79,186		—
Land	2,828		2,828
Property and equipment, gross	172,331		133,139
Less: accumulated depreciation	(46,378)		(41,847)
Property and equipment, net	$	125,953	$	91,292

Depreciation expense was $16.2 million, $10.6 million, and $8.7 million for the fiscal years ended December 28, 2024, December 30, 2023, and December 31, 2022, respectively.


(7)			Intangible Assets and Goodwill

The Company’s goodwill and other intangible assets arose from Wingstop’s acquisition of the equity interests of Wingstop Holdings, Inc. in April 2010, as well as the acquisition of restaurants from franchisees. Goodwill represents the excess of purchase consideration transferred for the respective reporting unit over the fair value of the business at the time of the acquisition.

The following is a summary of goodwill balances and activity (in thousands):


	December 28, 2024		December 30, 2023
Balance, beginning of period	$	67,708	$	62,514
Acquisition of restaurants, net	7,010		5,194
Balance, end of period	$	74,718	$	67,708

F-16

Intangible assets, excluding goodwill, consisted of the following (in thousands):


	December 28, 2024		December 30, 2023		Weighted Average Amortization Period (in years)
Intangible assets:
Trademarks	$	32,700	$	32,700
Indefinite-lived assets	32,700		32,700
Customer relationships	26,300		26,300		20.0
Franchise rights (1)	20,879		14,168		7.2


Less: accumulated amortization	(27,814)		(24,488)
Definite-lived assets	19,365		15,980		15.8
Intangible assets, net	$	52,065	$	48,680

(1)Included within Other non-current assets net of associated accumulated amortization within the Consolidated Balance Sheets.

Amortization expense for definite-lived intangibles was $3.3 million in fiscal year 2024, $2.7 million in fiscal year 2023, and $2.2 million in fiscal year 2022. Estimated amortization expense, for the five succeeding fiscal years and the aggregate thereafter is (in thousands):


Fiscal year 2025	$	3,613
Fiscal year 2026	3,368
Fiscal year 2027	3,230
Fiscal year 2028	3,041
Fiscal year 2029	2,834
Thereafter	3,279
Total	$	19,365


(8)			Other Current Liabilities

Other current liabilities consisted of the following (in thousands):


	December 28, 2024		December 30, 2023
Accrued payroll and incentive compensation	$	15,516	$	14,331
Current portion of deferred revenues	5,963		4,846



Other accrued liabilities	25,303		19,394
Total	$	46,782	$	38,571


(9)			Income Taxes

Income tax expense for the fiscal years 2024, 2023, and 2022 consisted of the following (in thousands):

F-17


	Fiscal Year
	December 28, 2024		December 30, 2023		December 31, 2022
Current expense
Federal	$	32,597	$	19,398	$	15,909
State	6,389		4,586		3,384
Foreign	1,296		610		328
Deferred expense (benefit)
Federal	(1,533)		(314)		(2,996)
State	(276)		(145)		(256)
Income tax expense	$	38,473	$	24,135	$	16,369

A reconciliation of income tax at the U.S. federal statutory tax rate (using a statutory tax rate of 21%) to income tax expense for fiscal years 2024, 2023, and 2022 in dollars is as follows (in thousands):


	Fiscal Year
	December 28, 2024		December 30, 2023		December 31, 2022
Expected income tax expense at statutory rate	$	30,910	$	19,777	$	14,556

Excess tax benefits from equity compensation	(2,404)		(1,275)		(522)
Non-deductible expenses	5,954		3,106		935
State tax expense, net of federal benefit	4,771		3,164		2,090
Foreign tax expense	1,296		610		328
Foreign tax and other tax credits	(2,708)		(1,760)		(1,001)
Increase in unrecognized tax benefit	672		398		337
Other	(18)		115		(354)
Income tax expense	$	38,473	$	24,135	$	16,369

The components of deferred tax assets (liabilities) were as follows (in thousands):


	December 28, 2024		December 30, 2023
Deferred tax assets:
Deferred revenue	$	6,671	$	6,067
Accrued incentive compensation	2,096		1,596
Stock based compensation	1,766		1,444
Lease liabilities	13,601		4,720
Intangible assets	294		196
Other	1,112		1,365
Net operating loss carry-forwards and credits	538		827
Valuation allowance	(577)		(577)
	25,501		15,638
Deferred tax liabilities:
Intangible assets	(11,008)		(10,397)
Right of use assets	(11,227)		(4,464)
Property and equipment	(4,351)		(4,498)
	(26,586)		(19,359)
Net deferred tax liability	$	(1,085)	$	(3,721)

The Company had a state net operating loss carry-forward of $23.3 million at December 28, 2024 and December 30, 2023. The state net operating loss carry forwards begin to expire in 2030.

F-18

The Company had a valuation allowance of $0.6 million against its deferred tax assets as of December 28, 2024 and December 30, 2023. In assessing whether a deferred tax asset will be realized, the Company considers whether it is more likely than not that either some portion or all of the deferred tax assets will not be realized. The Company considers the reversal of existing taxable temporary differences, projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, the Company believes it is more likely than not that it will realize a portion of the benefits of the federal and state deductible differences.

The Company files income tax returns, which are periodically audited by various federal and state jurisdictions. The Company's income tax returns prior to tax year 2018 are generally considered closed to examination by the applicable tax authorities. In fiscal year 2024, the Internal Revenue Service commenced an examination of the Company’s U.S. income tax return for fiscal year 2021.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):


Balance as of December 26, 2021	$	1,055
Additions for tax positions of prior years	—
Subtractions for tax positions of prior years	(27)
Additions for tax positions of current year	270
Subtractions for tax positions of current year	—
Balance as of December 31, 2022	1,298
Additions for tax positions of prior years	—
Subtractions for tax positions of prior years	(65)
Additions for tax positions of current year	468
Subtractions for tax positions of current year	—
Balance as of December 30, 2023	1,701
Additions for tax positions of prior years	—
Subtractions for tax positions of prior years	(118)
Additions for tax positions of current year	740
Subtractions for tax positions of current year	—
Balance as of December 28, 2024	$	2,323

As of December 28, 2024 and December 30, 2023, the accrued interest and penalties on the unrecognized tax benefits were $0.9 million and $0.7 million, respectively, excluding any related income tax benefits. The Company recorded accrued interest related to the unrecognized tax benefits and penalties as a component of the provision for income taxes recognized in the Consolidated Statement of Comprehensive Income.

At December 28, 2024 and December 30, 2023, the amount of unrecognized tax benefits was $2.3 million and $1.7 million, respectively, which, if ultimately recognized, would reduce the Company’s effective tax rate.


(10)			Investments

Subsequent to the end of fiscal year 2024, Lemon Pepper Holdings Ltd., the Company’s unconsolidated equity method investment, completed a transaction to sell all its outstanding equity to an affiliate of Sixth Street Partners, LLC. The Company received proceeds of $107 million in the fiscal first quarter 2025. The carrying value of the Company’s investment, recorded within Other assets on the Consolidated Balance Sheets, was $4.8 million as of December 28, 2024. The transaction is expected to result in a gain, which will be recorded in the fiscal first quarter 2025. The Company acquired a 15% non-controlling interest in the newly formed entity, for an aggregate amount of $76 million.

F-19


(11)			Debt Obligations

Long-term debt consisted of the following components (in thousands):


	December 28, 2024		December 30, 2023
2020-1 Class A-2 Senior Secured Notes	$	472,800	472,800
2022-1 Class A-2 Senior Secured Notes	248,125		248,125
2024-1 Class A-2 Senior Secured Notes	500,000		—
Debt issuance costs, net of amortization	(14,724)		(8,598)
Less: current portion of debt	—		—
Long-term debt, net	$	1,206,201	$	712,327

As of December 28, 2024, the scheduled principal payments on debt were as follows (in thousands):


Fiscal year 2025	$	—
Fiscal year 2026	—
Fiscal year 2027	472,800
Fiscal year 2028	—
Fiscal year 2029	248,125
Thereafter	500,000
Total	$	1,220,925

Securitized Financing Facility

On December 3, 2024, the Company completed a securitized financing transaction, in which Wingstop Funding LLC, a limited purpose, bankruptcy-remote, indirect wholly owned subsidiary of the Company (the “Issuer”), issued $500 million of its Series 2024-1 5.858% Fixed Rate Senior Secured Notes, Class A-2 (the “2024 Class A-2 Notes”). The Issuer also increased the capacity of its revolving financing facility of Series 2022-1 Variable Funding Senior Notes, Class A-1 (the “Variable Funding Notes”) from $200 million to $300 million. Following the increase, borrowing capacity under the Variable Funding Notes permits borrowings of up to a maximum principal amount of $300 million, a portion may be used to issue letters of credits. The 2024 Class A-2 Notes and the Variable Funding Notes are referred to collectively as the “2024 Notes.” The proceeds from the securitized financing transaction were used to pay related transaction fees and expenses, strengthen the Company's liquidity position and for general corporate purposes, including the repurchase of shares of the Company’s common stock.

In addition to the 2024 Notes, the Company’s outstanding debt consists of its existing Series 2022-1 3.734% Fixed Rate Senior Secured Notes, Class A-2 (the “2022 Notes”) and Series 2020-1 2.84% Fixed Rate Senior Secured Notes, Class A-2 (the “2020 Notes”), which have an anticipated repayment date of March 2029 and December 2027, respectively. No borrowings were outstanding under the Variable Funding Notes as of December 28, 2024.

The 2024 Notes were issued in a securitization transaction, which is guaranteed by certain limited-purpose, bankruptcy-remote, wholly owned indirect subsidiaries of the Company and secured by a security interest in substantially all of their assets, including certain domestic and foreign revenue-generating assets, consisting principally of franchise-related agreements, intellectual property, and vendor rebate contracts.

The 2024 Notes were issued pursuant to a second amended and restated base indenture and related supplemental indentures (collectively, the “Indenture”). Interest and principal payments on the 2024 Class A-2 Notes are payable on a quarterly basis. The requirement to make such quarterly principal payments on the 2024 Class A-2 Notes is subject to certain financial conditions set forth in the Indenture. The legal final maturity date of the 2024 Notes is in December of 2054, but, unless earlier prepaid to the extent permitted under the Indenture, the anticipated repayment date of the 2024 Class A-2 Notes is December 2031. If the Issuer has not repaid or refinanced the 2024 Class A-2 Notes prior to the anticipated repayment date, additional interest will accrue on the 2024 Notes.

The Variable Funding Notes accrue interest at a variable rate based on (i) the prime rate, (ii) the overnight federal funds rates, (iii) the secured overnight financing rate, or (iv) with respect to advances made by conduit investors, the weighted average cost of, or related to, the issuance of commercial paper allocated to fund or maintain such advances, in each case plus any applicable

F-20

margin, as more fully set forth in the 2024 Variable Funding Note Purchase Agreement, dated December 3, 2024, and the indenture supplement. Commitment fees and other usage fees apply to the Variable Funding Notes facility depending on the type of borrowing requested. There is a 60-basis points draw fee on borrowings requested pursuant to the terms of the Variable Fund Notes. Additionally, during a commitment availability period, there is a 30-basis point commitment fee on the committed portion of the Variable Funding Notes.

The 2020 Notes, 2022 Notes, and the 2024 Notes (together, the “Notes”) are subject to a series of covenants and restrictions customary for transactions of this type, including (i) that the Issuer maintains specified reserve accounts to be used to make required payments in respect of the Notes, (ii) provisions relating to optional and mandatory prepayments and the related payment of specified amounts, including specified make-whole payments in the case of the Notes under certain circumstances, (iii) certain indemnification payments in the event, among other things, that the assets pledged as collateral for the Notes are in stated ways defective or ineffective, and (iv) covenants relating to recordkeeping, access to information, and similar matters. The Notes are also subject to customary rapid amortization events provided for in the indenture, including events tied to failure to maintain stated debt service coverage ratios, the sum of global gross sales for specified restaurants being below certain levels on certain measurement dates, certain change of control and manager termination events, an event of default, and the failure to repay or refinance the Notes on the applicable scheduled maturity date. The Notes are also subject to certain customary events of default, including events relating to non-payment of required interest, principal or other amounts due on or with respect to the Notes, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties, failure of security interests to be effective, and certain judgments. As of December 28, 2024, the Company was in compliance with all financial covenants.

During the first quarter of 2022, as a result of the termination of the 2020 variable funding note facility, the Company recorded a loss on debt extinguishment of $0.8 million related to the write-off of previously capitalized financing costs. Total debt issuance costs incurred and capitalized in connection with the issuance of the 2022 Notes were $5.5 million.

As of December 28, 2024, the Company’s leverage ratio under the 2020 Class A-2 Notes, the 2022 Class A-2 Notes, and the 2024 Class A-2 Notes was less than 5.0x. Per the terms of the Company’s debt agreements, principal payments can be suspended at the borrower’s election until the repayment date as long as the Company maintains a leverage ratio of less than 5.0x. Accordingly, the Company elected to suspend payments following the principal payment made in the second quarter of 2023, and the entire outstanding balance of the 2020 Class A-2 Notes, the 2022 Class A-2 Notes, and the 2024 Class A-2 Notes has been classified as long-term debt due after fiscal year 2026. The 2020 Class A-2 Notes, the 2022 Class A-2 Notes, and the 2024 Class A-2 Notes are generally subject to 1% annual amortization.


(12)			Leases

The Company determines whether an arrangement is a lease at inception. The Company has operating leases for retail store locations, office space, and equipment. The Company's leases have remaining terms of 0.9 years to 13.2 years, some of which include options to extend the lease term for up to ten years. Lease terms may include options to renew when it is reasonably certain that the Company will exercise that option. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available on the commencement date in determining the present value of lease payments. The Company has lease agreements that contain both lease and non-lease components. For real estate leases, the Company accounts for lease components together with non-lease components (e.g., common-area maintenance).

During the fiscal first quarter 2024, the Company executed a lease for an office building, which commenced in May 2024. The operating lease has an initial lease term of 13.8 years with undiscounted fixed payments of $66.9 million in the aggregate over the initial term.

F-21

Components of lease expense were as follows (in thousands):


	Year Ended
	December 28, 2024		December 30, 2023		December 31, 2022
Operating lease cost (1)	$	6,813	$	3,523	$	3,244
Variable lease cost (2)	987		733		448
Total lease cost	$	7,800	$	4,256	$	3,692

(1) Includes short-term leases, which are immaterial.

(2) Primarily related to adjustments for inflation, common area maintenance, and property tax.

Supplemental cash flow information related to leases is as follows (in thousands):


	Year Ended
	December 28, 2024		December 30, 2023		December 31, 2022
Operating cash flow information:
Cash paid (received) for amounts included in the measurement of lease liabilities (1)	$	(3,658)	$	3,348	$	3,543
Non-cash activity:
Right-of-use assets obtained in exchange for new operating lease liabilities	$	43,101	$	6,346	$	3,923

(1) Includes tenant improvement reimbursements received.

Supplemental balance sheet information related to our operating leases is as follows (in thousands):


		Year Ended
	Balance Sheet Classification	December 28, 2024		December 30, 2023
Right-of-use assets	Other non-current assets	$	49,046	$	19,092
Current lease liabilities	Other current liabilities	1,059		2,380
Non-current lease liabilities	Other non-current liabilities	58,169		17,807

Weighted average lease term and discount rate information related to leases was as follows:


	Year Ended
	December 28, 2024		December 30, 2023		December 31, 2022
Weighted average remaining lease term of operating leases	11.3 years		7.1 years		7.5 years
Weighted average discount rate of operating leases	6.08	%	4.52	%	3.86	%

Maturities of lease liabilities by fiscal year are as follows (in thousands):


Fiscal year 2025	$	4,248
Fiscal year 2026	7,789
Fiscal year 2027	7,665
Fiscal year 2028	7,714
Fiscal year 2029	7,390
Thereafter	51,842
Total future minimum lease payments	86,648
Less: imputed interest	(27,420)
Total lease liabilities	$	59,228

F-22


(13)			Commitments and Contingencies

The Company is subject to legal proceedings, claims, and liabilities, such as employment-related claims and other cases, which arise in the ordinary course of business and are generally covered by insurance. In the opinion of management, the amount of ultimate liability with respect to those actions should not have a material adverse impact on financial position, results of operations, or cash flows.


(14)			Employee Benefit Plan

The Company sponsors a 401(k) profit sharing plan for all employees who are eligible based upon age and length of service. The Company made matching contributions of approximately $1.2 million, $1.1 million, and $0.9 million for fiscal years 2024, 2023, and 2022, respectively.


(15)			Stock-Based Compensation

In May 2024, the Company’s stockholders approved the adoption of the 2024 Omnibus Award Plan (the “2024 Plan”). All equity grants subject to FASB ASC Topic 718 after the date of approval are made under the 2024 Plan. No further equity grants after that date are permitted under the 2015 Omnibus Award Plan (as amended, the “2015 Plan”). The 2024 Plan is currently the only equity plan from which future equity awards may be granted, but outstanding awards granted under the 2015 Plan will continue to be governed by the terms of the 2015 Plan and the underlying award agreement. The 2024 Plan provides for the grant or award of stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance unit awards, performance share awards, cash-based awards and other stock-based awards to employees, directors, and other eligible persons. Stock options issued under the 2024 Plan expire ten years from the date of the grant. As of December 28, 2024, there were approximately 1.8 million shares available for future grants under the 2024 Plan.

In the event of a change in control of the Company (as defined in the 2024 Plan) in connection with which the board of directors or the Compensation Committee of the board of directors determines prior to such change in control that outstanding awards will be honored or assumed or new rights substituted therefore (as required by the Plan), each outstanding award will continue to vest in accordance with its terms. In the event the outstanding awards are not assumed or new rights substituted therefore in connection with the transaction, the awards will become fully vested and, to the extent applicable, exercisable immediately prior to the change in control and shall be exchanged for cash.

Stock-based compensation is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the requisite employee service period. The Company recognized approximately $22.1 million, $15.6 million, and $4.2 million in stock compensation expense, net of forfeitures, for fiscal years 2024, 2023, and 2022, respectively, with a corresponding increase to additional paid-in-capital. The Company recognized forfeitures of $0.8 million and $1.3 million for fiscal years 2024 and 2023, respectively. Stock compensation expense is included in Selling, general and administrative in the Consolidated Statements of Comprehensive Income. Assumptions made regarding forfeitures in determining the remaining unamortized share-based compensation are re-evaluated periodically.

F-23

Stock Options

The following table summarizes stock option activity:


	Number of Shares (in thousands)	Weighted Average Exercise Price		Aggregate Intrinsic Value (in thousands)		Weighted Average Remaining Term (in years)
Stock options outstanding at December 30, 2023	28	$	117.77	$	3,940	7.4
Options granted	—	$	—
Options exercised	(8)	$	98.88
Options forfeited	—	$	—
Stock options outstanding at December 28, 2024	20	$	125.17	$	3,266	6.6
Stock options exercisable at December 28, 2024	16	$	120.97	$	2,646	6.4

The total intrinsic value of stock options exercised was $2.0 million, $0.4 million, and $1.1 million for fiscal years 2024, 2023, and 2022, respectively. As of December 28, 2024, there was $40,000 of total unrecognized stock compensation expense related to non-vested stock options, which will be recognized over a weighted average period of approximately 0.2 years.

Restricted Stock Units

Restricted stock units are granted to employees and generally vest in equal annual amounts over a three year period. The fair value of restricted stock units is based on the closing price on the date of grant.

The following table summarizes activity related to restricted stock units:


	Number of Shares (in thousands)	Weighted Average Grant Date Fair Value
Nonvested restricted stock units at December 30, 2023	79	$	146.03
Units granted	29	362.70
Units vested	(25)	158.76
Units forfeited	(8)	208.15
Nonvested restricted stock units at December 28, 2024	75	$	220.38

As of December 28, 2024, total unrecognized compensation expense related to unvested restricted stock units was $10.9 million, which is expected to be recognized over a weighted-average period of 1.4 years. The weighted-average grant date fair value of restricted stock units granted was $362.70, $174.57, and $116.30 in fiscal years 2024, 2023, and 2022, respectively. The total fair value of restricted stock units that vested in fiscal years 2024, 2023, and 2022 was $4.0 million, $2.1 million, and $2.0 million, respectively.

Performance Stock Units

Performance stock units (“PSUs”) represent a right to receive a certain number of shares of common stock based on the achievement of company performance goals and continued employment during the vesting period. Performance stock units cliff-vest at the end of a three year service period or vest in equal annual amounts over a three year period. Vested amounts may range from 0% to a maximum of 250% of targeted amounts depending on the achievement of performance measures at the end of each vesting period. Such performance measures are based on the Company meeting net new restaurant targets, return on incremental investment targets, or sales targets for the vesting period. The fair value of PSUs is based on the closing price on the date of grant. The compensation expense related to these PSUs is recognized over the vesting period when the achievement of the performance conditions becomes probable. The total compensation cost for the PSUs is determined based on the most likely outcome of the performance condition and the number of awards expected to vest.

F-24

The following table summarizes activity related to performance stock units:


	Number of Shares (in thousands)	Weighted Average Grant Date Fair Value
Nonvested performance stock units at December 30, 2023	81	$	151.03
Units granted (a)	33	$	306.61
Units vested	(19)	$	132.92
Units forfeited	(4)	$	210.22
Nonvested performance stock units at December 28, 2024	91	$	208.62

(a) Includes 9,000 incremental PSUs earned with respect to the PSUs granted in fiscal year 2021 and vested in fiscal year 2024 at greater than 100% of target based on performance.

As of December 28, 2024, total unrecognized compensation expense related to unvested PSUs was $18.7 million, which is expected to be recognized over a weighted average period of 0.9 years. The weighted-average grant date fair value of performance stock units granted was $306.61, $145.15, and $127.20 in fiscal years 2024, 2023, and 2022, respectively. The total fair value of performance stock units that vested in fiscal years 2024, 2023, and 2022 was $2.5 million, $3.1 million, and $1.7 million, respectively.


(16)			Restaurant Transactions

During fiscal year 2024, the Company completed the sale of seven company-owned restaurants in the New York market to a franchisee for aggregate proceeds of $4.0 million. In connection with the sale of the restaurants, the Company recorded a $1.0 million pre-tax gain on the sale of the related assets and liabilities, which was net of $31,000 reduction in goodwill. The net gain on these restaurant sales was recorded in Gain on sale of restaurants and other expense, net in the Consolidated Statements of Comprehensive Income as of December 28, 2024.

The Company acquired four restaurants from franchisees during the fiscal year ended December 28, 2024, and three restaurants from franchisees during each of the fiscal years ended December 30, 2023 and December 31, 2022. The total purchase prices are reflected in the table below and were all funded by cash flows from operations.

The following table summarizes the allocations of the purchase prices to the estimated fair values of assets acquired and liabilities assumed as a result of these acquisitions (in thousands):


	Fiscal Year
	December 28, 2024		December 30, 2023		December 31, 2022
Working capital	$	44	$	—	$	17
Property and equipment	253		217		155
Reacquired franchise rights	6,710		5,330		2,000
Goodwill	7,041		5,285		5,637


Total purchase price	$	14,048	$	10,832	$	7,809

The results of operations of these restaurants are included in the Consolidated Statements of Comprehensive Income since the date of acquisition. The acquisitions were accounted for as business combinations.

The excess of the purchase price over the aggregate fair value of assets acquired was allocated to goodwill and is attributable to the benefits expected as a result of the acquisition, including sales and growth opportunities. All of the goodwill from the acquisitions is expected to be deductible for federal income tax purposes.

Pro-forma financial information of the combined entities is not presented due to the immaterial impact of the financial results of the acquired restaurants on our consolidated financial statements.

The fair value measurement of tangible and intangible assets and liabilities as of the acquisition date is based on significant inputs not observed in the market and thus represents a Level 3 fair value measurement. Fair value measurements for reacquired

F-25

franchise rights were determined using the income approach. Fair value measurements for property and equipment were determined using the cost approach.


(17)			Revenue from Contracts with Customers

The following table represents a disaggregation of revenue from contracts with customers for the fiscal years 2024, 2023, and 2022 (in thousands):


	Fiscal Year
	December 28, 2024		December 30, 2023		December 31, 2022

Royalty revenue	$	259,632	$	186,455	$	142,900
Advertising fees	217,630		157,138		119,011
Franchise fees	6,080		5,064		4,357

Franchise fee, development fee, and international territory fee payments received by the Company are recorded as deferred revenue on the Consolidated Balance Sheets, which represents a contract liability. Deferred revenue is reduced as fees are recognized in revenue over the term of the franchise license for the respective restaurant. As the term of the franchise license is typically ten years, substantially all of the franchise fee revenue recognized in the current fiscal year was included in the deferred revenue balance as of December 30, 2023. Approximately $13.5 million and $9.3 million of deferred revenue as of December 28, 2024 and December 30, 2023, respectively, relates to restaurants that were not yet opened, so the fees are not yet being amortized. The weighted average remaining amortization period for deferred franchise and renewal fees related to open restaurants is 7.2 years. The Company did not have any material contract assets as of December 28, 2024.


(18)			Segment Information

In accordance with Segment Reporting, the Company uses the management approach for determining its reportable segments. The management approach is based upon the way that management reviews performance and allocates resources.

The Company has one reportable segment: restaurants. The restaurant segment sells food and beverage through its company-owned restaurants as well as collects royalties, franchise fees, and Ad Fund contributions from franchised restaurants. The restaurant segment derives revenue from both company-owned and franchised restaurants domestically and from franchised restaurants across 11 international countries and territories. The Company manages the business activities on a consolidated basis, as Wingstop restaurants all have similar customers, sell similar products, and have a similar process to sell those products. The measure of restaurant segment assets is reported as Total assets on the Consolidated Balance Sheets. The accounting policies of the restaurant segment are the same as those described in Note 1.

The Company’s chief operating decision-maker (the “CODM”) is its Chief Executive Officer. The Company measures segment profit using consolidated net income. The CODM uses consolidated net income in deciding whether to reinvest profits into the restaurant segment or into other parts of the Company, such as for acquisitions, share repurchases or to pay dividends. Components of consolidated net income, including SG&A, are used to monitor budget versus actual results in assessing performance of the segment.

F-26

Financial information for the Company’s reportable segment is as follows (in thousands):


	Fiscal Year
	December 28, 2024		December 30, 2023		December 31, 2022
Revenue:
Royalty revenue, franchise fees and other	$	288,354	$	207,077	$	158,614
Advertising fees	217,630		157,138		119,011
Company-owned restaurant sales	119,823		95,840		79,896
Total revenue	625,807		460,055		357,521
Cost of sales:
Food, beverage and packaging costs	43,371		31,697		30,579
Labor	28,317		22,963		19,234
Other operating costs	23,025		18,314		15,380
Vendor rebates	(3,081)		(2,328)		(1,798)
Total cost of sales	91,632		70,646		63,395
Advertising expenses	233,306		166,583		123,069
Selling, general & administrative:
Transaction costs	316		—		310
Consulting fees	—		5,150		875
System implementation costs	1,713		—		—
Stock-based compensation expense	22,060		15,558		4,200
Other segment expense (1)	92,712		76,190		61,676
Total selling, general and administrative	116,801		96,898		67,061
Depreciation and amortization	19,490		13,239		10,899
(Gain) loss on disposal of assets	(1,038)		95		1,164
Interest expense, net	21,292		18,227		21,230
Loss on debt extinguishment and financing transactions	—		—		814
Other (income) expense	(2,866)		57		573
Income tax expense	38,473		24,135		16,369
Net income	$	108,717	$	70,175	$	52,947

(1) Other segment expense consists primarily of corporate related items such as headcount-related expenses, office rent expense, and other overhead costs.

Exhibit 19.1

Wingstop Inc.

Insider Trading Compliance Policy

(Revised as of December 4, 2024)

This Insider Trading Compliance Policy (“Policy”) provides guidelines with respect to transactions in the securities of, and the handling of material nonpublic information about, Wingstop Inc. (“Wingstop”, the “Company”, or “we”), its subsidiaries and other companies with which Wingstop does business.

I.Employee Groups; Summary of Restrictions

For purposes of this Policy, each Wingstop employee, officer and director will be categorized into one of three groups as further described below. Different restrictions contained in this Policy apply to each group. The Company’s General Counsel (the “General Counsel”) will work with the Company’s management team to determine the appropriate group for each employee, and the General Counsel will notify each employee, officer, and director if he or she has been initially placed into Group Two or Group Three and any employee, officer or director if at any time he or she is placed into a different group.

You should read this entire Policy. However, for your convenience, the following is a summary of the restrictions that apply to each group under this Policy:

Group One – The majority of employees are in Group One. Members of Group One are required to comply with the restrictions on (1) trading in securities while in possession of material nonpublic information (“insider trading”), as described in Section II, and (2) disclosing material nonpublic information to others (“tipping”), as described in Section III.

Group Two – Certain officers and other employees with regular access to material nonpublic information are in Group Two. In addition to the general prohibitions against insider trading and tipping, members of Group Two may only purchase or sell Wingstop securities during the trading windows described in Section IV and are required to pre-clear most transactions with the General Counsel, as described in Section V.

Group Three – Members of the Company’s Board of Directors (“Board”) and certain senior officers are in Group Three, whose members are subject to the same restrictions as apply to Group Two. In addition, members of Group Three will be notified separately of certain other trading restrictions and reporting requirements imposed on them by the federal securities laws of the United States (“U.S.”) and the rules and regulations of the Securities and Exchange Commission (“SEC”).

In addition, regardless of group affiliation, any employee, officer or director of Wingstop may be temporarily prohibited from buying or selling Wingstop securities during special blackout periods. These special blackout periods are described in Section IV.

II.Insider Trading Prohibited

General Rule. No Wingstop employee, officer or director—including “Other Persons” as described below—may purchase or sell Wingstop securities while he or she is in possession of material nonpublic information relating to Wingstop. This restriction does not apply to certain “Permitted Transfers,” which are discussed in Section VI of this Policy.

Employees, Officers and Directors. This Policy applies to all employees, officers and directors of Wingstop and its subsidiaries. Each provision of this Policy that applies to an employee, officer and director also applies to:

family members or other persons with whom they share a household;

family members or other persons who principally rely on the employee, officer or director for their financial support, regardless of where those persons reside; and

any entity (a) over which they have control or influence with respect to a transaction in securities (e.g., a trustee of a trust, an executor of an estate or an investment club in which the employee participates) or (b) in which they have a material financial interest (for example, a trust of which the employee is a beneficiary).

Likewise, references to “you” in this Policy also mean each of the people and entities listed above with respect to you. Because the people and entities listed above are covered by this Policy, you will be responsible for their transactions in Wingstop securities and, in order to maintain your compliance with this Policy, you should ensure that they do not purchase or sell Wingstop securities without your clearance.

Other Persons. The General Counsel may determine that non-employees, such as consultants, advisors, contractors and other individuals not employed by Wingstop, may be subject to the provisions of this Policy. If you are aware of a situation in which a consultant, advisor, contractor or other person not employed by Wingstop will have access to material nonpublic information about the Company, you should bring this situation to the attention of the General Counsel, who will make appropriate arrangements to protect the Company, including, if deemed necessary by the General Counsel, subjecting such individuals to the restrictions set forth in this Policy.

Material Nonpublic Information.

Material. Information is considered “material” if:

a reasonable investor would consider it important in making a decision on whether to buy, sell or hold the security;

a reasonable investor would view the information as significantly altering the total mix of information in the marketplace about the company that issued the security; or

the information could reasonably be expected to have a substantial effect on the price of the security.

Nonpublic. Information is nonpublic until it has been “publicly disclosed,” meaning that it:

is published in such a way as to provide broad, non-exclusionary distribution of the information to the public; and

has been in the public domain for a sufficient period of time to be absorbed by the market and reflected in the price of the related securities.

Examples of public disclosure include the issuance of a press release or the filing of an appropriate report with the SEC. Information is generally considered to be “nonpublic” until the expiration of a period of two full trading days after the information is released to the general public. However, this period varies depending on the type of information released, the market’s expectations relating to the subject matter of the release, and the market’s reaction after the information is released.

Examples of material nonpublic information might include information about:

the Company’s financial or operating results, whether for completed periods or relating to expectations for future periods;

any significant change in the relationship with franchisees;

a material impairment or change in the value of the Company’s assets;

the filing of significant litigation or significant claims against the Company, developments in significant pending litigation, or other significant contingent liabilities affecting the Company;

negotiation of a significant joint venture, merger or acquisition;

news of a significant sale of assets (which could include sales of company-owned restaurants to a franchisee);

news of a significant purchase of assets (which could include a purchase of franchised restaurants from a franchisee)

changes in senior management;

significant labor negotiations or disputes;

significant accounting developments;

changes in dividend or return of capital policies;

the Company entering into or the termination of any significant contract;

the declaration of a stock split;

the Company’s plans relating to its capital structure or outstanding securities, including issuances or repurchases of common stock or debt securities, and information about possible changes in the Company’s credit ratings;

the occurrence of a significant cybersecurity incident, such as a potential or actual unauthorized access of the Company’s data, property or assets (whether at the Company’s facilities or through its information technology infrastructure) or a significant disruption in the Company’s operations; and

any other events that will require the filing of a Current Report on Form 8-K with the SEC.

Information may be material whether it is favorable or unfavorable to the Company. The list of examples provided above is merely illustrative, and there are many other types of information and events that may be material at any particular time, depending on the circumstances. Where there is any possibility that an item may be considered “material,” you should treat it as such and you should confer with the General Counsel if you would like to review any specific situation.

Other Companies. While this Policy prohibits trading in Wingstop securities while you are in possession of material nonpublic information about Wingstop, it also prohibits trading in securities of any other company about which you learn material nonpublic information in the course of performing your duties for Wingstop. For example, you may be involved in a transaction in which Wingstop expects to enter into (or terminate) a substantial business relationship with another company, or acquire another company, buy a substantial amount of its stock or enter into a joint venture with a company. Even though the size of the transaction may be immaterial to Wingstop, it may be material to the other company. This Policy prohibits you from trading in the securities of that company while aware of this nonpublic information or from tipping others regarding the information. In addition, please remember that the Wingstop Code of Business Conduct and Ethics prohibits you from engaging in outside interests that represent a conflict of interest with your obligations to Wingstop.

Securities; All Transactions. This Policy prohibits certain transactions in the “securities” of Wingstop. Although it is usually the case that the information you gain will be material with respect to Wingstop common stock, any securities that Wingstop issues—such as debt securities or preferred stock—are also subject to this Policy. This Policy also applies to stock options and other derivatives related to Wingstop securities, as discussed below. Purchases and sales of Wingstop securities are subject to the insider trading laws of the U.S. and the provisions of this Policy, whether they are executed in the public markets or in private transactions, and whether you execute the transaction directly or indirectly through another person or entity.

Investments. The Company expects its employees, officers and directors not to engage in speculative transactions that are designed to result in profit based on short-term fluctuations in the price of Company securities. If you do purchase Wingstop securities, you are strongly encouraged to do so with the expectation of owning those securities for an extended period of time—at a minimum, for six months.

Short Sales. A “short sale” is a transaction involving securities which the seller does not own at the time of sale or, if the securities are owned by the seller, where they will be delivered on a delayed basis (meaning that the securities are not delivered within 20 days after the sale or deposited in the mail or other usual channels of transportation within five days after the sale). Selling securities “short” is consistent with an expectation that the price of the securities will decline in the near future and is often speculative in nature. Short selling may arouse suspicion from the SEC that the person was trading on the basis of inside information, particularly when the trading occurs before a major company announcement or event. Accordingly, employees, officers, and directors are prohibited from engaging in “short sales” of Wingstop securities or in any transaction in Wingstop securities which is entered into with the expectation of, or that will benefit from, a decline in the price of Wingstop’s securities.

Options and Derivative Securities. Derivative securities are securities contracts or arrangements whose value varies in relation to the price of Wingstop securities. For example, derivative securities would include exchange-traded put or call options, as well as individually arranged derivative transactions, such as prepaid forwards. Many forms of derivatives are speculative in nature (meaning that their value fluctuates based on short-term changes in the price of Wingstop shares), and the purchase or sale of such derivatives by Wingstop employees could motivate them to take actions that are in conflict with the long-term interests of other stockholders and could also cause the appearance of misuse of inside information. Accordingly, employees, officers and directors are prohibited from purchasing or selling derivative securities or entering into derivatives contracts relating to Wingstop stock. The prohibition on transactions in derivatives does not apply to stock options and other interests issued under Wingstop employee benefit plans. If you have any question as to whether a particular type of arrangement or derivative transaction is permitted under this Policy, you should contact the General Counsel.

Hedging Transactions. Hedging or monetization transactions are transactions that permit an individual to own Wingstop securities without the full set of risks and rewards of such ownership. These arrangements can be accomplished through a number of mechanisms, including through the use of financial instruments such as prepaid variable forwards, equity swaps, collars and exchange funds. When these arrangements take place, a director, officer or employee may no longer have the same objectives with respect to Wingstop securities as the Company’s other stockholders and could also cause the appearance of misuse of inside information. Accordingly, employees, officers and directors are prohibited from engaging in hedging or monetization transactions relating to Wingstop securities.

Pledged Securities; Margin Loans. Under typical pledge or margin arrangements, a lender or broker is entitled to sell securities which you have deposited as collateral for loans if the value of your securities falls below a specified level or in certain other circumstances. Even though you did not initiate the sale or control its timing, because it is still a sale for your benefit, you may be subject to liability under insider trading laws if such a sale is made at a time when the “window” is closed (as described below) or you are in possession of material nonpublic information at the time of such a sale. If such a sale involves a member of Group Three, it can bring unwanted negative publicity. In addition, pledging may be used as a part of hedging

strategy that would remove the full risk and rewards of stock ownership and sever your alignment with that of the Wingstop’s other security holders.

Group Three

Because of the concerns about pledging Wingstop securities, members of Group Three are prohibited from pledging Wingstop’s securities as collateral for a loan. This Policy does not prohibit members of Group Three from holding Wingstop securities in brokerage accounts, so long as any Wingstop securities held in such account are explicitly excluded from any margin or pledge arrangements. Sales of Wingstop securities which are held in a margin account are not exempt from insider trading laws or this Policy. Accordingly, even though utilizing such accounts that exclude Wingstop securities would not be subject to restrictions under this Policy, you should be extremely careful when utilizing a margin loan in a brokerage account that contains your Wingstop securities.

Groups One and Two

While persons that are not in Group Three are not prohibited from pledging Wingstop stock, sales of Wingstop securities that you have pledged as security for a loan or which are held in a margin account are not exempt from insider trading laws or this Policy. Accordingly, even though entering into such arrangements would not be considered a sale and would not be subject to restrictions under this Policy, members of Groups One and Two should be extremely careful when pledging Wingstop securities, utilizing a margin loan in a brokerage account or otherwise using Wingstop securities as collateral for a loan.

Any sale must be made in compliance with the restrictions under this Policy that apply to you, such as trading windows and pre-clearance requirements. As a result, if you pledge your Wingstop securities or use Wingstop securities to secure a margin loan, you may be forced to take actions (for instance, depositing additional money or selling other securities) in order to avoid your lender or broker selling your Wingstop securities at a time that would result in a violation of insider trading laws or this Policy. Similar cautions apply to any other arrangements under which you have used Wingstop securities as collateral.

Members of Groups One and Two must receive pre-clearance prior to entering into any pledge or margin arrangement involving Wingstop securities to avoid an inadvertent violation of this Policy.

Safest Time for Transactions. All employees, whether or not subject to the trading windows or pre-clearance procedures described in this Policy, are reminded that the safest time for transactions in Wingstop securities will generally be just after the trading window opens after the release by the Company of financial information relating to a completed quarter, as described in Section IV below. The appearance of improper trading may increase as the Company approaches the end of the next fiscal quarter.

III.Unauthorized Disclosure of Material Nonpublic Information Prohibited

General Rule. No employee, officer or director, including “Other Persons” as described in Section II (as applicable), may disclose material nonpublic information about Wingstop or any company with which Wingstop deals to anyone outside of Wingstop, unless authorized to do so.

Tipping. Under the federal securities laws of the U.S., you can be held responsible not only for your own insider trading, but also for securities transactions by anyone to whom you disclose material nonpublic information. Even if those to whom you disclose such information do not trade while aware of the information, you can be responsible for the trades of persons who received material nonpublic information indirectly from you, if you are the ultimate source of their information.

Discussing or Recommending Wingstop Securities. Employee enthusiasm for Wingstop and its business prospects is a vital element of the Company’s success. You should, however, use extreme caution when discussing Wingstop or Company securities with anyone outside of Wingstop. In the course of discussing Wingstop or Company securities, accidental disclosure of material nonpublic information can occur and can be viewed as “tipping.” Likewise, recommendations of Company securities can also result in embarrassing situations for you or the Company if you make a recommendation at a time when there is a pending announcement of material nonpublic information by the Company, even if you are unaware of that information.

Internet and Social Media. Consumer engagement though social media is an important part of the Company’s business. The provisions described in this Policy about the unauthorized disclosure of material nonpublic information and “tipping” apply equally to any statements that are made on the Internet and through social media outlets, including on the Company’s website and on Facebook, Twitter, Instagram, Pinterest and YouTube, by employees, officers and directors.

Authorization to Disclose Material Nonpublic Information. Only certain employees, officers and directors are authorized to make public disclosures of material nonpublic information or to confer with persons outside of the Company regarding such information (for example, external auditors, outside counsel and other advisors). Unless you are authorized to do so by the Company’s Chief Executive Officer, Chief Financial Officer or the General Counsel, you should not discuss material nonpublic information with anyone not in the Company. Even in discussions with other Wingstop employees, you should consider the consequences of disclosing material nonpublic information to them. For example, by doing so, you would preclude those persons from trading in Wingstop’s securities until the information is publicly disclosed. Accordingly, you should restrict the communication of material nonpublic information to those employees, officers, and directors having a need to know in order to serve Wingstop’s interests.

Regulation FD (Fair Disclosure). There are SEC rules and regulations banning selective disclosure of information relating to public companies. Generally, these regulations provide that when a public company (such as Wingstop) discloses material nonpublic information, it must provide broad, non-exclusionary public access to the information (for example, through press

releases, conference calls or webcasts). Violations of these regulations can result in SEC enforcement actions, resulting in injunctions and severe monetary penalties. Regulation FD applies largely to a limited group of senior officers and the investor relations personnel who regularly communicate with securities market professionals and shareholders. Remember that no other Wingstop employees, officers or directors are authorized to communicate information regarding the Company with securities market professionals, shareholders or members of the media. You should refer to Wingstop’s Disclosure Policy for further information about these regulations and requirements.

Non-Disclosure Agreements. Employees, officers and directors involved in transactions or other negotiations that require disclosure of material nonpublic information with parties outside of Wingstop should generally have those to whom such information is being disclosed sign a non-disclosure agreement in a form approved by the General Counsel. The non-disclosure agreement will require that the recipient of information not disclose the information to others and require the recipient not to trade in Wingstop securities while in possession of such information. You should confer with the General Counsel whenever a non-disclosure agreement may be needed.

IV.Trading Windows

Standard Trading Windows. Members of Groups Two and Three (consisting of officers and directors) may only purchase or sell Wingstop’s securities:

during the designated trading windows described below, and

when the individual is not otherwise in possession of material nonpublic information.

Outside of the trading windows, members of Groups Two and Three may not purchase or sell Wingstop securities, even if they are not personally aware of any material nonpublic information. However, members of Groups Two and Three may engage in Permitted Transactions (described in Section VI below) outside of the trading windows.

The Company will communicate to each member of Groups Two and Three when each trading window will open and close. It is expected that the trading window generally will open two full trading days after the Company’s quarterly release of earnings and will close 15 calendar days prior to the end of the following quarter. However, you should not expect that the window will open on any particular date or remain open for any minimum period of time. Significant corporate developments or operational updates may require changes to the schedule or who may be subject to the restrictions of this Section IV, including closing the window at the Company’s option at any time. If you are subject to a trading window under this Section IV, the Company will communicate when the restrictions begin and when they end.

Do not confuse the applicability of the trading windows with the broader prohibition on trading when you are in possession of material nonpublic information described in Section II. Regardless of whether the trading window is open or closed, you

may not trade in Wingstop securities if you are in actual possession of material nonpublic information about Wingstop.

Special Blackouts. The Company reserves the right to impose a trading blackout from time to time on all or any group of employees, officers or directors when, in the judgment of the General Counsel and other senior officers, a blackout is warranted. During a special blackout, you will not be permitted to purchase or sell Wingstop securities and you may or may not be allowed to execute Permitted Transactions (as defined below). A special blackout may also prohibit you from trading in the securities of other companies. If the General Counsel imposes a blackout to which you are subject, the Company will notify you when the blackout begins and when it ends and the securities and transactions to which it applies.

Standing Orders; Limit Orders. Purchases or sales resulting from standing orders or limit orders may result in the execution of orders without your control over the transaction or your awareness of the timing of the transaction. Even though you placed the order at a time when you were permitted to enter into transactions, you must be certain that this type of order will not be executed when you are in possession of material nonpublic information about the Company or during a blackout period. Accordingly, any standing orders should be used only for a very brief period and with detailed instructions to the broker who will execute the transaction. Standing orders under an approved Rule 10b5-1 Trading Plan, described below, will not be subject to these limitations.

V.Pre-Clearance of Transactions

General. Before purchasing or selling Wingstop securities, members of Groups Two and Three must obtain clearance of the transaction from the General Counsel. This clearance must be obtained before you place the order for, or otherwise initiate, any transaction in Wingstop securities. Any pre-clearance that you obtain will be valid for a transaction executed within two business days, unless either the pre-clearance is granted for a shorter or longer period, or you learn of material nonpublic information during that time. Whether or not your request for pre-clearance is granted, you must not inform anyone else of the results of your request.

Do not confuse pre-clearance of transactions with the broader prohibition on trading when you are in possession of material nonpublic information described in Section II. Regardless of whether you have received pre-clearance for a transaction or whether a trading window is open or closed, you may not trade in Wingstop securities if you are in actual possession of material nonpublic information about Wingstop. In all cases, the responsibility for determining whether you are in possession of material nonpublic information about Wingstop rests with you, and any action on the part of the Company or the General Counsel pursuant to this Policy, including granting pre-clearance for a transaction, does not in any way constitute legal advice or insulate you from liability under applicable securities laws.

Permitted Transactions. Members of Groups Two and Three are not required to receive pre-clearance prior to entering into any Permitted Transaction, except they are required to do so before exercising any stock options or making any gifts of Wingstop securities.

VI.Permitted Transactions

The following are “Permitted Transactions”:

acceptance or receipt of a stock option, shares of restricted stock or similar grants of securities under one of Wingstop’s employee benefit plans (including elections to acquire stock options or securities in lieu of other compensation) or the cancellation or forfeiture of options, restricted shares or securities pursuant to Wingstop’s employee benefit plans;

election to participate in, cease participation in or purchase securities under a Wingstop employee stock purchase plan, if such a plan is in effect (see further discussion which follows);

earning or vesting of stock options or shares of restricted stock and any related stock withholding;

exercise of stock options issued under Wingstop’s stock option plans in a cash exercise, a stock-for-stock exercise or a net share exercise, payment of the exercise price in shares of already-owned stock and any related stock withholding transactions, but not (1) the sale of any stock acquired in the option exercise, (2) a “cashless exercise” in which shares are sold in the market, or (3) the use of proceeds from the sale of any such shares to exercise additional options (see further discussion which follows);

transferring shares to an entity that does not involve a change in the beneficial ownership of the shares, for example, to an inter vivos trust of which you are the sole beneficiary during your lifetime (see further discussion which follows);

making payroll contributions to a Wingstop 401(k) plan, deferred compensation plan or any similar plan, but not (1) intraplan transfers involving any Wingstop securities nor (2) a change in “investment direction” under such plan to increase or decrease your percentage investment contribution allocated to Wingstop securities (see further discussion which follows);

bona fide gifts of stock, but not where you are delivering the Wingstop stock in payment of a previous commitment to make a cash gift or where the Wingstop shares are being delivered in payment of any other obligations (see further discussion which follows);

execution of a transaction pursuant to a contract, instruction, or plan described in Securities Exchange Act Rule 10b5-1 (called a “Trading Plan”), as discussed below (see further discussion which follows); or

any other transaction designated by the Board or any Board committee or senior management, with reference to this Policy, as a Permitted Transaction.

Pre-Disclosure of Undisclosed Material Nonpublic Information. You may not enter into any Permitted Transaction unless you have disclosed any material nonpublic information of which you are aware to the General Counsel or his or her designee. If you are a director or a member of senior management, the information must be disclosed to the General Counsel, and the General Counsel must disclose any such information to the Chief Executive Officer before any transaction listed qualifies as a Permitted Transaction. This ensures that Wingstop is fully aware of any material information affecting any security before you enter into a transaction involving Wingstop securities.

Employee Benefit Plan Transactions. Included in the definition of Permitted Transactions are most of the ongoing transactions you might enter into under Wingstop’s equity-based benefit plans. For example, although your ongoing participation in a plan may involve the regular purchase of Wingstop’s common stock, either directly pursuant to an investment election or indirectly through an employer matching contribution, those purchases are Permitted Transactions. Note, however, that the movement of balances in those plans into or out of Wingstop securities or changes in your investment direction under those plans are not Permitted Transactions. This means that you may not make such transfers or elections while you are in possession of material nonpublic information and that such transfers or elections must be made in compliance with any other restrictions under this Policy that apply to you (for instance, such transfers or elections could only be made during an open trading window and with pre-clearance if you are in Group Two or Three).

Transactions in employee stock options are also considered Permitted Transactions if there is no related sale on the market or to a person other than Wingstop. Note, however, that a sale of stock following or in connection with an option exercise is not a transaction with Wingstop and is, therefore, not a Permitted Transaction. Thus, you may engage in a cash exercise of an option as long as you retain the stock you buy in the exercise. You can also engage in stock-for-stock exercises or elect stock withholding without violating the Policy. However, it would not be a Permitted Transaction for you to exercise a stock option, sell the resulting shares and then use the proceeds from that sale to pay for the exercise of additional stock options in a same day sale. Although exercises of Wingstop stock options are Permitted Transactions, members of Groups Two and Three must pre-clear all stock option exercises.

Transactions in Which There is No Change in Beneficial Ownership. Certain transactions involve merely a change in the form in which you own securities. For example, you may transfer shares of stock to a trust if you are the only beneficiary of the trust during your lifetime. Likewise, changing the form of ownership to include a member of your household as a joint owner or as a sole owner is a Permitted Transaction since members of your household are considered the same as you for purposes of this Policy (and the shares will remain subject to the terms of this Policy).

Gifts of Wingstop Securities. Bona fide gifts of Wingstop securities, whether to charitable institutions or to friends and family members, are generally considered to be Permitted Transactions. However, if you are making the gift to satisfy a previous commitment to make a

cash gift or in payment of another obligation, then the gift would not be a Permitted Transaction and the normal restrictions would be applicable. This policy is designed to avoid employees making gifts of stock when the gift will satisfy a previous pledge of cash or not be considered a “bona fide” gift. Although bona fide gifts of stock are Permitted Transfers, members of Groups Two and Three must pre-clear all gifts of shares.

Trading Plans. The SEC has enacted a rule (Rule 10b5-1 under the Securities Exchange Act) that provides an affirmative defense against violations of the insider trading laws of the U.S. if you enter into a contract, provide instructions, or adopt a written plan for a transaction in securities when you are not in possession of material nonpublic information, even if it turns out that you had such information when the transaction is actually completed. The contract, instructions, or plan must:

specify the amount, price and date of the transaction,

specify an objective method for determining the amount, price and date of the transaction, or

place the discretion for determining amount, price, and date of the transaction in another person who is not, at the time of the transaction, in possession of material nonpublic information.

You may not exercise discretion or influence over the amount, price, and date of the transaction after entering into the arrangement. In this Policy, these arrangements are referred to as “Trading Plans.” The rules regarding Trading Plans are extremely complex and must be complied with completely to be effective. You should consider consultation with your own legal advisor before entering into any Trading Plan.

Any restrictions under this Policy that apply to you when purchasing or selling Wingstop securities also apply to you when establishing a Trading Plan. Therefore, you may not establish a Trading Plan when you are in possession of material nonpublic information about Wingstop and, to the extent trading windows and special blackout periods apply to you, those restrictions must be complied with in connection with establishing a Trading Plan. The Company may from time to time adopt additional rules for the establishment and operation of Trading Plans, and you will need to comply with these rules in order to utilize a Trading Plan.

In establishing any Trading Plan, you should carefully consider the timing of your transactions under the Trading Plan. Even though transactions executed in accordance with a Trading Plan are exempt from the insider trading rules, the trades may nonetheless occur at times shortly before Wingstop announces material news, and the media may not understand the nuances of trading pursuant to a Trading Plan.

Groups Two and Three

Members of Groups Two and Three are required to receive pre-clearance before entering into any Trading Plan. Once a Trading Plan for a member of Group Two or Three has been pre-

cleared by the General Counsel, transactions executed pursuant to that Trading Plan do not require approval.

Group One

Members of Group One are not required to pre-clear Trading Plans, but they are required to provide copies of their Trading Plans to the General Counsel.

VII.Sanctions for Violations of this Policy

The SEC, the stock exchanges and plaintiffs’ lawyers focus on uncovering insider trading, and use sophisticated technologies to investigate suspicious activity.

A breach of the insider trading laws of the U.S. could expose the insider to criminal fines of up to $5,000,000 and imprisonment of up to 20 years, in addition to civil penalties (up to three times the profits earned), and injunctive actions. In addition, punitive damages may be imposed under applicable state laws. Securities laws of the U.S. also subject controlling persons to civil penalties for illegal insider trading by employees. Controlling persons include directors, officers and supervisors. These persons may be subject to fines of up to the greater of $1,000,000 or three times the profit realized or loss avoided by the insider. Accordingly, all Wingstop employees must comply with this Policy and applicable securities laws and to ensure that those employees who they supervise also comply.

Inside information does not belong to any of Wingstop’s individual employees, officers or directors. This information is an asset of the Company. For any person to use such information for personal benefit or to disclose it to others outside of the Company violates Wingstop’s Code of Business Conduct and Ethics, this Policy and federal securities laws. More particularly, insider trading is a fraud against members of the investing public and against the Company. Whether or not there is any actual trading of Wingstop securities, any violation of this Policy will be grounds for discipline, up to termination of employment for cause.

VIII.Administration of this Policy

Administration by the General Counsel. The day-to-day administration of this Policy will be carried out by the General Counsel. If you have any questions concerning the interpretation of this Policy, you should direct your questions to the General Counsel.

Reporting Violations. If you become aware of any violation of this Policy, you should report it immediately to the General Counsel.

Exceptions. An individual subject to the trading windows or special blackout periods described in this Section IV may request the General Counsel to grant him or her an exception from those restrictions if he or she is not otherwise prohibited from trading under Section II.

Post-Termination Transactions. With the exception of the pre-clearance procedures described in Section V, this Policy continues to apply to transactions in Wingstop securities even after termination of service to the Company. If an individual is in possession of material nonpublic information when his or her service terminates, that individual may not engage in transactions involving Wingstop securities until that information has become public or is no longer material.

Amendment of the Policy. The Board or the Nominating and Corporate Governance Committee of the Board may amend this Policy from time to time, in their discretion as they deem necessary; provided, that Wingstop’s senior officers shall have the authority to make immaterial administrative amendments to this Policy. If this Policy is amended, the Company will communicate to you through normal communications channels the substance of any such changes.

The ultimate responsibility for complying with this Policy and applicable laws and regulations rests with you. You should use your best judgment and consult with the General Counsel, and your legal and financial advisors, as needed.

Exhibit 21.1

List of Subsidiaries of

Wingstop Inc.




Subsidiary						Jurisdiction of Incorporation or Organization
Wingstop Holdings, Inc.						Delaware
Wingstop Restaurants Inc.						Texas
Wingstop Guarantor LLC						Delaware
Wingstop Funding LLC						Delaware
Wingstop Franchising LLC						Delaware
Wingstop Restaurants LLC						Nevada
Wingstop Beverages, Inc.						Texas
Wingstop Beverages II, Inc.						Texas
Wingstop Beverages III, Inc.						Texas
Wingstop GCM, LLC						Florida
Wingstop (UK) Ltd.						United Kingdom
Wingstop (Singapore) Pte. Ltd.						Singapore
Wingstop (Canada) Inc.						Canada
Wingstop (Netherlands) B.V.						Netherlands
Wingstop (India) Private Limited						India
Wingstop France SAS						France
Wingstop Australia Pty Ltd.						Australia
Wingstop (Middle East) Managing Office Ltd.						United Arab Emirates
Wingstop Restaurant Management (Shanghai) Company Limited						China

Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the registration statements (Nos. 333-231353, 333-205143, and 333-279649) on Form S-8 of our reports dated February 19, 2025, with respect to the consolidated financial statements of Wingstop Inc. and the effectiveness of internal control over financial reporting.

/s/ KPMG LLP

Dallas, Texas

February 19, 2025

Exhibit 31.1

CERTIFICATION PURSUANT TO EXCHANGE ACT RULE 13a-14(a)/15d-14(a) AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael J. Skipworth, certify that:

1.I have reviewed this Annual Report on Form 10-K of Wingstop Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date:			February 19, 2025

By:			/s/ Michael J. Skipworth
			President and Chief Executive Officer
			(Principal Executive Officer)

Exhibit 31.2

CERTIFICATION PURSUANT TO EXCHANGE ACT RULE 13a-14(a)/15d-14(a) AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Alex R. Kaleida, certify that:

1.I have reviewed this Annual Report on Form 10-K of Wingstop Inc.;

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date:			February 19, 2025

By:			/s/ Alex R. Kaleida
			Chief Financial Officer
			(Principal Financial and Accounting Officer)

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report on Form 10-K for the period ended December 28, 2024 of Wingstop Inc. (the “Company”), as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael J. Skipworth, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


Date:			February 19, 2025

By:			/s/ Michael J. Skipworth
			President and Chief Executive Officer
			(Principal Executive Officer)

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report on Form 10-K for the period ended December 28, 2024 of Wingstop Inc. (the “Company”), as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Alex R. Kaleida, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


Date:			February 19, 2025

By:			/s/ Alex R. Kaleida
			Chief Financial Officer
			(Principal Financial and Accounting Officer)

Cover - USD ($) $ in Billions	12 Months Ended
Cover - USD ($) $ in Billions	Dec. 28, 2024	Feb. 18, 2025	Jun. 28, 2024
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 28, 2024
Current Fiscal Year End Date	--12-28
Document Transition Report	false
Entity File Number	001-37425
Entity Registrant Name	WINGSTOP INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-3494862
Entity Address, Address Line One	2801 N Central Expressway
Entity Address, Address Line Two	Suite 1600
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75204
City Area Code	972
Local Phone Number	686-6500
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	WING
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Public Float			$ 12.4
Entity Common Stock, Shares Outstanding		28,662,645
Documents Incorporated by Reference	Portions of the proxy statement for the registrant’s 2025 annual meeting of stockholders, which will be filed no later than 120 days after the end of the registrant’s fiscal year ended December 28, 2024, are incorporated by reference into Part III of this report.
Entity Central Index Key	0001636222
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	FY
Amendment Flag	false

Audit Information	12 Months Ended
Audit Information	Dec. 28, 2024
Audit Information [Abstract]
Auditor Firm ID	185
Auditor Name	KPMG LLP
Auditor Location	Dallas, Texas

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 28, 2024	Dec. 30, 2023
Current assets
Cash and cash equivalents	$ 315,910	$ 90,216
Restricted cash	20,868	11,444
Accounts receivable, net	19,661	12,408
Prepaid expenses and other current assets	6,520	4,948
Advertising fund assets, restricted	32,659	25,328
Total current assets	395,618	144,344
Property and equipment, net	125,953	91,292
Operating lease assets	49,046	19,092
Goodwill	74,718	67,708
Trademarks	32,700	32,700
Other non-current assets	31,735	14,949
Total assets	716,246	377,825
Current liabilities
Accounts payable	6,943	4,725
Current portion of operating lease liabilities	1,059	2,380
Other current liabilities	46,782	38,571
Advertising fund liabilities	32,659	25,328
Total current liabilities	87,443	71,004
Long-term debt, net	1,206,201	712,327
Non-current lease liabilities	58,169	17,807
Deferred revenues, net of current	38,877	30,145
Deferred income tax liabilities, net	1,085	3,721
Other non-current liabilities	57	187
Total liabilities	1,391,832	835,191
Commitments and contingencies (see Note 13)
Stockholders' deficit
Common stock, $0.01 par value; 100,000,000 shares authorized; 28,662,614 and 29,337,920 shares issued and outstanding as of December 28, 2024 and December 30, 2023, respectively	287	293
Additional paid-in-capital	1,568	2,676
Retained deficit	(676,940)	(459,994)
Accumulated other comprehensive loss	(501)	(341)
Total stockholders' deficit	(675,586)	(457,366)
Total liabilities and stockholders' deficit	716,246	377,825
Customer relationships
Current assets
Customer relationships, net	$ 6,476	$ 7,740

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 28, 2024	Dec. 30, 2023
Statement of Financial Position [Abstract]
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	28,662,614	29,337,920
Common stock, shares outstanding (in shares)	28,662,614	29,337,920

Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands

12 Months Ended

Dec. 28, 2024

Dec. 30, 2023

Dec. 31, 2022

Revenue:

Total revenue

$ 625,807

$ 460,055

$ 357,521

Costs and expenses:

Total cost of sales

^[1]

91,632

70,646

63,395

Advertising expenses

233,306

166,583

123,069

Selling, general and administrative

116,801

96,898

67,061

Depreciation and amortization

19,490

13,239

10,899

(Gain) loss on disposal of assets

(1,038)

1,164

Total costs and expenses

460,191

347,461

265,588

Operating income

165,616

112,594

91,933

Interest expense, net

21,292

18,227

21,230

Loss on debt extinguishment and financing transactions

814

Other (income) expense

(2,866)

573

Income before income tax expense

147,190

94,310

69,316

Income tax expense

38,473

24,135

16,369

Net income

$ 108,717

$ 70,175

$ 52,947

Earnings per share

Basic (in usd per share)

$ 3.72

$ 2.36

$ 1.77

Diluted (in usd per share)

$ 3.70

$ 2.35

$ 1.77

Other comprehensive income (loss)

Currency translation adjustment

$ (160)

$ 296

$ (381)

Other comprehensive income (loss)

(160)

296

(381)

Comprehensive income

108,557

70,471

52,566

Royalty revenue, franchise fees and other

Revenue:

Total revenue

288,354

207,077

158,614

Advertising fees

Revenue:

Total revenue

217,630

157,138

119,011

Company-owned restaurant sales

Revenue:

Total revenue

$ 119,823

$ 95,840

$ 79,896

[1]	Cost of sales includes all operating expenses of company-owned restaurants, including advertising expenses, and excludes depreciation and amortization, which are presented separately.

Consolidated Statements of Stockholders' Deficit - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Deficit	Accumulated Other Comprehensive Loss
Balance at beginning of period (in shares) at Dec. 25, 2021		29,837,454
Balance at beginning of period at Dec. 25, 2021	$ (309,525)	$ 299	$ 463	$ (310,031)	$ (256)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	52,947			52,947
Shares issued under stock plans (in shares)		97,281
Shares issued under stock plans	3,315	$ 1	3,314
Tax payments for restricted stock upon vesting (in shares)		(2,067)
Tax payments for restricted stock upon vesting	(315)			(315)
Stock-based compensation expense	4,200		4,200
Dividends declared on common stock and equivalents	(141,102)		(5,180)	(135,922)
Currency translation adjustment	(381)				(381)
Balance at end of period (in shares) at Dec. 31, 2022		29,932,668
Balance at end of period at Dec. 31, 2022	(390,861)	$ 300	2,797	(393,321)	(637)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	70,175			70,175
Shares issued under stock plans (in shares)		65,779
Shares issued under stock plans	951		951
Tax payments for restricted stock upon vesting (in shares)		(14,575)
Tax payments for restricted stock upon vesting	(2,480)			(2,480)
Stock-based compensation expense	15,558		15,558
Dividends declared on common stock and equivalents	$ (24,729)		(16,239)	(8,490)
Purchases of common stock (in shares)	(645,952)
Purchases of common stock	$ (126,276)	$ (7)	(391)	(125,878)
Currency translation adjustment	$ 296				296
Balance at end of period (in shares) at Dec. 30, 2023	29,337,920	29,337,920
Balance at end of period at Dec. 30, 2023	$ (457,366)	$ 293	2,676	(459,994)	(341)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	108,717			108,717
Shares issued under stock plans (in shares)		58,234
Shares issued under stock plans	1,557	$ 1	1,556
Tax payments for restricted stock upon vesting (in shares)		(12,736)
Tax payments for restricted stock upon vesting	(4,427)			(4,427)
Stock-based compensation expense	22,060		22,060
Dividends declared on common stock and equivalents	$ (28,900)		(11,524)	(17,376)
Purchases of common stock (in shares)	(720,804)
Purchases of common stock	$ (317,067)	$ (7)	(13,200)	(303,860)
Currency translation adjustment	$ (160)				(160)
Balance at end of period (in shares) at Dec. 28, 2024	28,662,614	28,662,614
Balance at end of period at Dec. 28, 2024	$ (675,586)	$ 287	$ 1,568	$ (676,940)	$ (501)

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2024	Dec. 30, 2023	Dec. 31, 2022
Operating activities
Net income	$ 108,717	$ 70,175	$ 52,947
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	19,490	13,239	10,899
Deferred income taxes	(1,809)	(1,551)	(3,252)
Stock-based compensation expense	22,060	15,558	4,200
(Gain) loss on disposal of assets	(1,038)	95	1,164
Loss on debt extinguishment	0	0	814
Amortization of debt issuance costs	2,150	2,043	1,939
Changes in operating assets and liabilities:
Accounts receivable	(7,253)	(2,947)	(2,468)
Prepaid expenses and other assets	(13,221)	599	584
Advertising fund assets and liabilities, net	4,778	10,093	5,048
Accounts payable and other current liabilities	2,928	10,634	5,102
Deferred revenue	9,249	3,593	(712)
Other non-current liabilities	11,559	70	(27)
Cash provided by operating activities	157,610	121,601	76,238
Investing activities
Purchases of property and equipment	(51,929)	(40,833)	(23,940)
Acquisition of restaurants from franchisee	(14,048)	(10,832)	(7,809)
Proceeds from sales of assets	4,000	320	4,063
Payments for investments	(500)	(808)	(997)
Cash used in investing activities	(62,477)	(52,153)	(28,683)
Financing activities
Proceeds from exercise of stock options	1,557	951	3,315
Purchases of common stock	(314,664)	(125,401)	0
Borrowings of long-term debt	500,000	0	250,000
Repayments of long-term debt	0	(3,650)	(3,025)
Payment of deferred financing costs and other debt-related costs	(8,832)	0	(5,442)
Tax payments for restricted stock upon vesting	(4,427)	(2,480)	(315)
Dividends paid	(28,869)	(24,907)	(141,279)
Cash provided by (used in) financing activities	144,765	(155,487)	103,254
Net increase in cash, cash equivalents, and restricted cash	239,898	(86,039)	150,809
Cash, cash equivalents, and restricted cash at beginning of period	119,676	205,715	54,906
Cash, cash equivalents, and restricted cash at end of period	359,574	119,676	205,715
Supplemental information:
Accrued capital expenditures	3,955	2,963	7,273
Cash paid for interest	22,697	22,740	20,480
Cash paid for taxes	$ 38,842	$ 27,918	$ 13,584

Basis of Presentation and Summary of Significant Accounting Policies

12 Months Ended

Dec. 28, 2024

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies


(1)			Basis of Presentation and Summary of Significant Accounting Policies

Overview

Summary of Significant Accounting Policies


(a)			Principles of Consolidation


(b)			Fiscal Year End


(c)			Use of Estimates


(d)			Cash, Cash Equivalents, and Restricted Cash


	December 28, 2024		December 30, 2023
Cash and cash equivalents	$	315,910	$	90,216
Restricted cash	20,868		11,444
Restricted cash, included in Advertising fund assets, restricted	22,796		18,016
Total cash, cash equivalents, and restricted cash	$	359,574	$	119,676


(e)			Accounts Receivable


(f)			Inventories

Inventories, which consist of food and beverage products, paper goods, and supplies, are valued at the lower of cost (first-in, first-out) or net realizable value.


(g)			Cloud Computing Arrangements


(h)			Property and Equipment


Property and Equipment			Estimated Useful Lives
Building			40 years
Leasehold and other improvements			Lesser of 7 to 10 years or the expected lease term
Equipment, furniture and fixtures			3 to 7 years
Capitalized software			3 to 10 years


(i)			Impairment or Disposal of Long-Lived Assets


(j)			Goodwill and Indefinite-Lived Intangible Assets


(k)			Foreign Currency Translation


(l)			Revenue Recognition


(m)			Consideration from Vendors

respectively, of which $3.1 million, $2.3 million, and $1.8 million was classified as a reduction in Cost of sales during fiscal years 2024, 2023, and 2022, respectively.


(n)			Advertising Expenses


(o)			Leases


(p)			Stock-Based Compensation


(q)			Income Taxes


(r)			Recent Accounting Pronouncements

Recently adopted

Earnings Per Share

12 Months Ended

Dec. 28, 2024

Earnings Per Share [Abstract]

Earnings Per Share


(2)			Earnings Per Share

Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands):


	Fiscal Year
	December 28, 2024	December 30, 2023	December 31, 2022
Basic weighted average shares outstanding	29,262	29,769	29,893
Dilutive shares	122	87	70
Diluted weighted average shares outstanding	29,384	29,856	29,963

Stockholders' Deficit

12 Months Ended

Dec. 28, 2024

Dividends [Abstract]

Stockholders’ Deficit


(3)			Stockholders’ Deficit

Dividends

Share Repurchase Program

On December 9, 2024, the Company entered into an accelerated share repurchase agreement (the “2024 ASR Agreement”) with a third-party financial institution to repurchase $250.0 million of the Company’s common stock under its Share Repurchase Program. Pursuant to the ASR Agreement, during the fiscal fourth quarter of 2024 the Company made an initial payment to the financial institution of $250.0 million in cash and received and retired an initial delivery of 551,325 shares of common stock, representing an estimated 75% of the total shares expected to be delivered under the 2024 ASR Agreement, based on the closing price on the date of initial delivery of $328.54. The delivery of any remaining shares will occur at the final settlement of the transactions under the 2024 ASR Agreement, which is scheduled to occur in the fiscal first quarter of 2025. The number of shares to be delivered upon final settlement is based on the daily volume-weighted average share prices during the valuation period specified in the ASR Agreement, less a discount and subject to adjustments.

Fair Value Measurements

12 Months Ended

Dec. 28, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements


(4)			Fair Value Measurements

Level 1 - Unadjusted quoted prices for identical instruments traded in active markets.

Level 2 - Observable market-based inputs or unobservable inputs corroborated by market data.

Level 3 - Unobservable inputs reflecting management’s estimates and assumptions.


	Fair Value Hierarchy	December 28, 2024				December 30, 2023
		Carrying Value		Fair Value		Carrying Value		Fair Value
Securitized Financing Facility:
2020-1 Class A-2 Senior Secured Notes (1)	Level 2	$	472,800	$	439,846	$	472,800	$	423,823
2022-1 Class A-2 Senior Secured Notes (1)	Level 2	$	248,125	$	230,905	$	248,125	$	222,370
2024-1 Class A-2 Senior Secured Notes (1)	Level 2	$	500,000	$	496,050	$	—	$	—
Investments in bonds of LPH (Note 10) (2)	Level 3	$	3,699	$	4,560	$	3,557	$	4,306

(1) The fair value of the 2020-1, 2022-1, and 2024-1 Class A-2 Senior Secured Notes was estimated using available market information.

(2) The fair value approximates discounted cash flows using current market rates for debt investments with similar maturities and credit risk.

Accounts Receivable, net

12 Months Ended

Dec. 28, 2024

Receivables [Abstract]

Accounts Receivable, net


(5)			Accounts Receivable, net

Accounts receivable, net, consist of the following (in thousands):


	December 28, 2024		December 30, 2023
Vendor rebates receivable	$	7,575	$	5,311
Royalties receivable	8,641		5,717
Other receivables, net	3,445		1,380
Accounts receivable, net	$	19,661	$	12,408

Property and Equipment

12 Months Ended

Dec. 28, 2024

Property, Plant and Equipment [Abstract]

Property and Equipment


(6)			Property and Equipment

Property and equipment, net, consisted of the following (in thousands):


	December 28, 2024		December 30, 2023
Building	$	15,769	$	15,769
Construction in progress	15,088		46,675
Equipment, furniture and fixtures	21,900		41,268
Leasehold and other improvements	37,560		26,599
Capitalized software	79,186		—
Land	2,828		2,828
Property and equipment, gross	172,331		133,139
Less: accumulated depreciation	(46,378)		(41,847)
Property and equipment, net	$	125,953	$	91,292

Depreciation expense was $16.2 million, $10.6 million, and $8.7 million for the fiscal years ended December 28, 2024, December 30, 2023, and December 31, 2022, respectively.

Intangible Assets and Goodwill

12 Months Ended

Dec. 28, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill


(7)			Intangible Assets and Goodwill

The following is a summary of goodwill balances and activity (in thousands):


	December 28, 2024		December 30, 2023
Balance, beginning of period	$	67,708	$	62,514
Acquisition of restaurants, net	7,010		5,194
Balance, end of period	$	74,718	$	67,708

Intangible assets, excluding goodwill, consisted of the following (in thousands):


	December 28, 2024		December 30, 2023		Weighted Average Amortization Period (in years)
Intangible assets:
Trademarks	$	32,700	$	32,700
Indefinite-lived assets	32,700		32,700
Customer relationships	26,300		26,300		20.0
Franchise rights (1)	20,879		14,168		7.2


Less: accumulated amortization	(27,814)		(24,488)
Definite-lived assets	19,365		15,980		15.8
Intangible assets, net	$	52,065	$	48,680

(1)Included within Other non-current assets net of associated accumulated amortization within the Consolidated Balance Sheets.


Fiscal year 2025	$	3,613
Fiscal year 2026	3,368
Fiscal year 2027	3,230
Fiscal year 2028	3,041
Fiscal year 2029	2,834
Thereafter	3,279
Total	$	19,365

Other Current Liabilities

12 Months Ended

Dec. 28, 2024

Balance Sheet Related Disclosures [Abstract]

Other Current Liabilities


(8)			Other Current Liabilities

Other current liabilities consisted of the following (in thousands):


	December 28, 2024		December 30, 2023
Accrued payroll and incentive compensation	$	15,516	$	14,331
Current portion of deferred revenues	5,963		4,846



Other accrued liabilities	25,303		19,394
Total	$	46,782	$	38,571

Income Taxes

12 Months Ended

Dec. 28, 2024

Income Tax Disclosure [Abstract]

Income Taxes


(9)			Income Taxes

Income tax expense for the fiscal years 2024, 2023, and 2022 consisted of the following (in thousands):


	Fiscal Year
	December 28, 2024		December 30, 2023		December 31, 2022
Current expense
Federal	$	32,597	$	19,398	$	15,909
State	6,389		4,586		3,384
Foreign	1,296		610		328
Deferred expense (benefit)
Federal	(1,533)		(314)		(2,996)
State	(276)		(145)		(256)
Income tax expense	$	38,473	$	24,135	$	16,369


	Fiscal Year
	December 28, 2024		December 30, 2023		December 31, 2022
Expected income tax expense at statutory rate	$	30,910	$	19,777	$	14,556

Excess tax benefits from equity compensation	(2,404)		(1,275)		(522)
Non-deductible expenses	5,954		3,106		935
State tax expense, net of federal benefit	4,771		3,164		2,090
Foreign tax expense	1,296		610		328
Foreign tax and other tax credits	(2,708)		(1,760)		(1,001)
Increase in unrecognized tax benefit	672		398		337
Other	(18)		115		(354)
Income tax expense	$	38,473	$	24,135	$	16,369

The components of deferred tax assets (liabilities) were as follows (in thousands):


	December 28, 2024		December 30, 2023
Deferred tax assets:
Deferred revenue	$	6,671	$	6,067
Accrued incentive compensation	2,096		1,596
Stock based compensation	1,766		1,444
Lease liabilities	13,601		4,720
Intangible assets	294		196
Other	1,112		1,365
Net operating loss carry-forwards and credits	538		827
Valuation allowance	(577)		(577)
	25,501		15,638
Deferred tax liabilities:
Intangible assets	(11,008)		(10,397)
Right of use assets	(11,227)		(4,464)
Property and equipment	(4,351)		(4,498)
	(26,586)		(19,359)
Net deferred tax liability	$	(1,085)	$	(3,721)

The Company had a state net operating loss carry-forward of $23.3 million at December 28, 2024 and December 30, 2023. The state net operating loss carry forwards begin to expire in 2030.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):


Balance as of December 26, 2021	$	1,055
Additions for tax positions of prior years	—
Subtractions for tax positions of prior years	(27)
Additions for tax positions of current year	270
Subtractions for tax positions of current year	—
Balance as of December 31, 2022	1,298
Additions for tax positions of prior years	—
Subtractions for tax positions of prior years	(65)
Additions for tax positions of current year	468
Subtractions for tax positions of current year	—
Balance as of December 30, 2023	1,701
Additions for tax positions of prior years	—
Subtractions for tax positions of prior years	(118)
Additions for tax positions of current year	740
Subtractions for tax positions of current year	—
Balance as of December 28, 2024	$	2,323

Investments

12 Months Ended

Dec. 28, 2024

Equity Method Investments and Joint Ventures [Abstract]

Investments


(10)			Investments

Debt Obligations

12 Months Ended

Dec. 28, 2024

Debt Disclosure [Abstract]

Debt Obligations


(11)			Debt Obligations

Long-term debt consisted of the following components (in thousands):


	December 28, 2024		December 30, 2023
2020-1 Class A-2 Senior Secured Notes	$	472,800	472,800
2022-1 Class A-2 Senior Secured Notes	248,125		248,125
2024-1 Class A-2 Senior Secured Notes	500,000		—
Debt issuance costs, net of amortization	(14,724)		(8,598)
Less: current portion of debt	—		—
Long-term debt, net	$	1,206,201	$	712,327

As of December 28, 2024, the scheduled principal payments on debt were as follows (in thousands):


Fiscal year 2025	$	—
Fiscal year 2026	—
Fiscal year 2027	472,800
Fiscal year 2028	—
Fiscal year 2029	248,125
Thereafter	500,000
Total	$	1,220,925

Securitized Financing Facility

In addition to the 2024 Notes, the Company’s outstanding debt consists of its existing Series 2022-1 3.734% Fixed Rate Senior Secured Notes, Class A-2 (the “2022 Notes”) and Series 2020-1 2.84% Fixed Rate Senior Secured Notes, Class A-2 (the “2020 Notes”), which have an anticipated repayment date of March 2029 and December 2027, respectively. No borrowings were outstanding under the Variable Funding Notes as of December 28, 2024.

Leases

12 Months Ended

Dec. 28, 2024

Leases [Abstract]

Leases


(12)			Leases

Components of lease expense were as follows (in thousands):


	Year Ended
	December 28, 2024		December 30, 2023		December 31, 2022
Operating lease cost (1)	$	6,813	$	3,523	$	3,244
Variable lease cost (2)	987		733		448
Total lease cost	$	7,800	$	4,256	$	3,692

(1) Includes short-term leases, which are immaterial.

(2) Primarily related to adjustments for inflation, common area maintenance, and property tax.

Supplemental cash flow information related to leases is as follows (in thousands):


	Year Ended
	December 28, 2024		December 30, 2023		December 31, 2022
Operating cash flow information:
Cash paid (received) for amounts included in the measurement of lease liabilities (1)	$	(3,658)	$	3,348	$	3,543
Non-cash activity:
Right-of-use assets obtained in exchange for new operating lease liabilities	$	43,101	$	6,346	$	3,923

(1) Includes tenant improvement reimbursements received.

Supplemental balance sheet information related to our operating leases is as follows (in thousands):


		Year Ended
	Balance Sheet Classification	December 28, 2024		December 30, 2023
Right-of-use assets	Other non-current assets	$	49,046	$	19,092
Current lease liabilities	Other current liabilities	1,059		2,380
Non-current lease liabilities	Other non-current liabilities	58,169		17,807

Weighted average lease term and discount rate information related to leases was as follows:


	Year Ended
	December 28, 2024		December 30, 2023		December 31, 2022
Weighted average remaining lease term of operating leases	11.3 years		7.1 years		7.5 years
Weighted average discount rate of operating leases	6.08	%	4.52	%	3.86	%

Maturities of lease liabilities by fiscal year are as follows (in thousands):


Fiscal year 2025	$	4,248
Fiscal year 2026	7,789
Fiscal year 2027	7,665
Fiscal year 2028	7,714
Fiscal year 2029	7,390
Thereafter	51,842
Total future minimum lease payments	86,648
Less: imputed interest	(27,420)
Total lease liabilities	$	59,228

Commitments and Contingencies

12 Months Ended

Dec. 28, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies


(13)			Commitments and Contingencies

Employee Benefit Plan

12 Months Ended

Dec. 28, 2024

Retirement Benefits [Abstract]

Employee Benefit Plan


(14)			Employee Benefit Plan

Stock-Based Compensation

12 Months Ended

Dec. 28, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation


(15)			Stock-Based Compensation

Stock Options

The following table summarizes stock option activity:


	Number of Shares (in thousands)	Weighted Average Exercise Price		Aggregate Intrinsic Value (in thousands)		Weighted Average Remaining Term (in years)
Stock options outstanding at December 30, 2023	28	$	117.77	$	3,940	7.4
Options granted	—	$	—
Options exercised	(8)	$	98.88
Options forfeited	—	$	—
Stock options outstanding at December 28, 2024	20	$	125.17	$	3,266	6.6
Stock options exercisable at December 28, 2024	16	$	120.97	$	2,646	6.4

Restricted Stock Units

The following table summarizes activity related to restricted stock units:


	Number of Shares (in thousands)	Weighted Average Grant Date Fair Value
Nonvested restricted stock units at December 30, 2023	79	$	146.03
Units granted	29	362.70
Units vested	(25)	158.76
Units forfeited	(8)	208.15
Nonvested restricted stock units at December 28, 2024	75	$	220.38

Performance Stock Units

The following table summarizes activity related to performance stock units:


	Number of Shares (in thousands)	Weighted Average Grant Date Fair Value
Nonvested performance stock units at December 30, 2023	81	$	151.03
Units granted (a)	33	$	306.61
Units vested	(19)	$	132.92
Units forfeited	(4)	$	210.22
Nonvested performance stock units at December 28, 2024	91	$	208.62

(a) Includes 9,000 incremental PSUs earned with respect to the PSUs granted in fiscal year 2021 and vested in fiscal year 2024 at greater than 100% of target based on performance.

Restaurant Transactions

12 Months Ended

Dec. 28, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Restaurant Transactions


(16)			Restaurant Transactions

The following table summarizes the allocations of the purchase prices to the estimated fair values of assets acquired and liabilities assumed as a result of these acquisitions (in thousands):


	Fiscal Year
	December 28, 2024		December 30, 2023		December 31, 2022
Working capital	$	44	$	—	$	17
Property and equipment	253		217		155
Reacquired franchise rights	6,710		5,330		2,000
Goodwill	7,041		5,285		5,637


Total purchase price	$	14,048	$	10,832	$	7,809

Pro-forma financial information of the combined entities is not presented due to the immaterial impact of the financial results of the acquired restaurants on our consolidated financial statements.

franchise rights were determined using the income approach. Fair value measurements for property and equipment were determined using the cost approach.

Revenue from Contracts with Customers

12 Months Ended

Dec. 28, 2024

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers


(17)			Revenue from Contracts with Customers

The following table represents a disaggregation of revenue from contracts with customers for the fiscal years 2024, 2023, and 2022 (in thousands):


	Fiscal Year
	December 28, 2024		December 30, 2023		December 31, 2022

Royalty revenue	$	259,632	$	186,455	$	142,900
Advertising fees	217,630		157,138		119,011
Franchise fees	6,080		5,064		4,357

Segment Information

12 Months Ended

Dec. 28, 2024

Segment Reporting [Abstract]

Segment Information


(18)			Segment Information

Financial information for the Company’s reportable segment is as follows (in thousands):


	Fiscal Year
	December 28, 2024		December 30, 2023		December 31, 2022
Revenue:
Royalty revenue, franchise fees and other	$	288,354	$	207,077	$	158,614
Advertising fees	217,630		157,138		119,011
Company-owned restaurant sales	119,823		95,840		79,896
Total revenue	625,807		460,055		357,521
Cost of sales:
Food, beverage and packaging costs	43,371		31,697		30,579
Labor	28,317		22,963		19,234
Other operating costs	23,025		18,314		15,380
Vendor rebates	(3,081)		(2,328)		(1,798)
Total cost of sales	91,632		70,646		63,395
Advertising expenses	233,306		166,583		123,069
Selling, general & administrative:
Transaction costs	316		—		310
Consulting fees	—		5,150		875
System implementation costs	1,713		—		—
Stock-based compensation expense	22,060		15,558		4,200
Other segment expense (1)	92,712		76,190		61,676
Total selling, general and administrative	116,801		96,898		67,061
Depreciation and amortization	19,490		13,239		10,899
(Gain) loss on disposal of assets	(1,038)		95		1,164
Interest expense, net	21,292		18,227		21,230
Loss on debt extinguishment and financing transactions	—		—		814
Other (income) expense	(2,866)		57		573
Income tax expense	38,473		24,135		16,369
Net income	$	108,717	$	70,175	$	52,947

(1) Other segment expense consists primarily of corporate related items such as headcount-related expenses, office rent expense, and other overhead costs.

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 28, 2024	Dec. 30, 2023	Dec. 31, 2022
Pay vs Performance Disclosure
Net income	$ 108,717	$ 70,175	$ 52,947

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 28, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Insider Trading Policies and Procedures	12 Months Ended
Insider Trading Policies and Procedures	Dec. 28, 2024
Insider Trading Policies and Procedures [Line Items]
Insider Trading Policies and Procedures Adopted	true

Cybersecurity Risk Management and Strategy Disclosure	12 Months Ended
Cybersecurity Risk Management and Strategy Disclosure	Dec. 28, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]	As part of the Company’s enterprise risk management program, the Company maintains a comprehensive information security program that is designed to identify, protect against, detect and respond to, and manage cybersecurity threats. The program contains security measures that include, but are not limited to, the following: security policies and procedures; physical and environmental protections; monitoring processes and systems; asset management; risk assessments; a vulnerability management and remediation program; and maintenance of a third-party risk management program. We consult the National Institute of Standards and Technology Cyber Security Framework for guidance and leverage internal and external resources to design and execute our cybersecurity program. The Company also trains employees to understand their role in attempting to protect the Company from cybersecurity attacks. Our information security training program for employees includes computer-based training at hire, annual follow-up training and acknowledgement of our information security policies, regular internal communications, and testing to measure the effectiveness of our information security program. For example, we conduct regular phishing awareness campaigns designed to emulate current threats and provide immediate feedback and, as necessary, additional training or remedial action. In addition, the Company engages third parties to assist in assessing, identifying, and remediating material risks from cybersecurity threats. Our key cybersecurity controls are regularly tested and audited by third-party service providers, which we retain to help identify vulnerabilities in our systems and to help maintain compliance to standards and regulatory requirements. Other third-party service providers are enlisted by the Company for security operations center services to augment our teams’ monitoring capabilities and to assist with our investigation and response to alerts on emerging and ongoing threats. We also maintain a third-party risk management program that includes policies and procedures designed to oversee and manage the cybersecurity risks associated with our third-party service providers. The Company conducts risk assessments at the initial onboarding of vendors or service providers who have access to Company systems or data and, subsequently, at regular intervals in an effort to help determine the severity and scope of risks to Company systems, data and operations. In addition to implementing safeguards that attempt to minimize risks associated with a cybersecurity incident, the Company maintains disaster recovery and business continuity plans that include data backup capabilities. We also have incident response procedures designed to address cybersecurity events that may occur despite the safeguards we have put in place. Further, our incident response procedures and business continuity plans are also designed to assist in responding to breaches of any of our third-party service providers. As of the date of this report, we are not aware of any cybersecurity incidents that have materially affected or are reasonably likely to materially affect the Company, including our business strategy, results of operations, or financial condition. In 2024, the Company has continued to make strategic investments in both its technical and organizational measures to further enhance its security capabilities and planning for detecting, preventing, and responding to cybersecurity attacks. Risks from cybersecurity threats that are reasonably likely to materially affect the Company, its business strategy and results of operations or financial condition, include (but are not limited to): data loss; a disruption to our operations; a compromise or corruption of confidential or proprietary information; damage to our employee and business relationships and reputation; increased burden of regulatory compliance; and/or litigation and liability. See our related risk factors in “Item 1A. Risk Factors” for more information about the Company’s risks from cybersecurity threats and how such threats may impact the Company’s business, operations, and financial results.
Cybersecurity Risk Management Processes Integrated [Flag]	true
Cybersecurity Risk Management Processes Integrated [Text Block]	As part of the Company’s enterprise risk management program, the Company maintains a comprehensive information security program that is designed to identify, protect against, detect and respond to, and manage cybersecurity threats. The program contains security measures that include, but are not limited to, the following: security policies and procedures; physical and environmental protections; monitoring processes and systems; asset management; risk assessments; a vulnerability management and remediation program; and maintenance of a third-party risk management program. We consult the National Institute of Standards and Technology Cyber Security Framework for guidance and leverage internal and external resources to design and execute our cybersecurity program.
Cybersecurity Risk Management Third Party Engaged [Flag]	true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag]	true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag]	false
Cybersecurity Risk Board of Directors Oversight [Text Block]	Our Board classifies cybersecurity and information technology infrastructure among the most significant potential risks to our business in the Company’s enterprise risk management program. The Technology Committee, which consists of five independent directors, is responsible for the oversight of the Company’s cybersecurity and technology-related risks and management’s efforts to monitor and oversee those risks. The Technology Committee oversees these risks in conjunction with the Audit Committee, which also consists entirely of independent directors, and, as necessary, participates in joint meetings with the Audit Committee to discuss these matters. Our Vice President of Information Security and Enterprise Information Technology (“CISO”), who reports to our Senior Vice President, Chief Information Officer (“CIO”), oversees our information security program and matters of risk relating to cybersecurity. Our CISO possesses more than 20 years of experience in information technology-related roles, including engineering, governance, and security, undergraduate and post-graduate degrees in information technology and security, and industry-recognized cybersecurity certifications. Our CISO and members of our Information Technology team, including our CIO, periodically provide risk reports to the Board and its committees, including assessments of the Company’s cybersecurity risks, their potential impact on our business operations, and management’s strategies to monitor and mitigate those risks. The committee chairs, in turn, report to the full Board as part of our general risk management process.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block]	Our Board classifies cybersecurity and information technology infrastructure among the most significant potential risks to our business in the Company’s enterprise risk management program. The Technology Committee, which consists of five independent directors, is responsible for the oversight of the Company’s cybersecurity and technology-related risks and management’s efforts to monitor and oversee those risks. The Technology Committee oversees these risks in conjunction with the Audit Committee, which also consists entirely of independent directors, and, as necessary, participates in joint meetings with the Audit Committee to discuss these matters.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]	The Technology Committee, which consists of five independent directors, is responsible for the oversight of the Company’s cybersecurity and technology-related risks and management’s efforts to monitor and oversee those risks.
Cybersecurity Risk Role of Management [Text Block]	Our Board classifies cybersecurity and information technology infrastructure among the most significant potential risks to our business in the Company’s enterprise risk management program. The Technology Committee, which consists of five independent directors, is responsible for the oversight of the Company’s cybersecurity and technology-related risks and management’s efforts to monitor and oversee those risks. The Technology Committee oversees these risks in conjunction with the Audit Committee, which also consists entirely of independent directors, and, as necessary, participates in joint meetings with the Audit Committee to discuss these matters. Our Vice President of Information Security and Enterprise Information Technology (“CISO”), who reports to our Senior Vice President, Chief Information Officer (“CIO”), oversees our information security program and matters of risk relating to cybersecurity. Our CISO possesses more than 20 years of experience in information technology-related roles, including engineering, governance, and security, undergraduate and post-graduate degrees in information technology and security, and industry-recognized cybersecurity certifications. Our CISO and members of our Information Technology team, including our CIO, periodically provide risk reports to the Board and its committees, including assessments of the Company’s cybersecurity risks, their potential impact on our business operations, and management’s strategies to monitor and mitigate those risks. The committee chairs, in turn, report to the full Board as part of our general risk management process.
Cybersecurity Risk Management Positions or Committees Responsible [Flag]	true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]	Our Vice President of Information Security and Enterprise Information Technology (“CISO”), who reports to our Senior Vice President, Chief Information Officer (“CIO”), oversees our information security program and matters of risk relating to cybersecurity.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block]	Our CISO possesses more than 20 years of experience in information technology-related roles, including engineering, governance, and security, undergraduate and post-graduate degrees in information technology and security, and industry-recognized cybersecurity certifications.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]	Our CISO and members of our Information Technology team, including our CIO, periodically provide risk reports to the Board and its committees, including assessments of the Company’s cybersecurity risks, their potential impact on our business operations, and management’s strategies to monitor and mitigate those risks. The committee chairs, in turn, report to the full Board as part of our general risk management process.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag]	true

Basis of Presentation and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 28, 2024

Accounting Policies [Abstract]

Principles of Consolidation


(a)			Principles of Consolidation

Fiscal Year End


(b)			Fiscal Year End

Use of Estimates


(c)			Use of Estimates

Cash, Cash Equivalents, and Restricted Cash


(d)			Cash, Cash Equivalents, and Restricted Cash

Accounts Receivable


(e)			Accounts Receivable

Inventories


(f)			Inventories

Inventories, which consist of food and beverage products, paper goods, and supplies, are valued at the lower of cost (first-in, first-out) or net realizable value.

Cloud Computing Arrangements


(g)			Cloud Computing Arrangements

Property and Equipment

Impairment or Disposal of Long-Lived Assets


(i)			Impairment or Disposal of Long-Lived Assets

Goodwill and Indefinite-Lived Intangible Assets


(j)			Goodwill and Indefinite-Lived Intangible Assets

Foreign Currency Translation


(k)			Foreign Currency Translation

Revenue Recognition


(l)			Revenue Recognition

Consideration from Vendors


(m)			Consideration from Vendors

Advertising Expenses


(n)			Advertising Expenses

Leases


(o)			Leases

Stock-Based Compensation


(p)			Stock-Based Compensation

Income Taxes


(q)			Income Taxes

Recent Accounting Pronouncements


(r)			Recent Accounting Pronouncements

Recently adopted

Basis of Presentation and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 28, 2024

Accounting Policies [Abstract]

Schedule of Cash and Cash Equivalents


	December 28, 2024		December 30, 2023
Cash and cash equivalents	$	315,910	$	90,216
Restricted cash	20,868		11,444
Restricted cash, included in Advertising fund assets, restricted	22,796		18,016
Total cash, cash equivalents, and restricted cash	$	359,574	$	119,676

Schedule of Restricted Cash


	December 28, 2024		December 30, 2023
Cash and cash equivalents	$	315,910	$	90,216
Restricted cash	20,868		11,444
Restricted cash, included in Advertising fund assets, restricted	22,796		18,016
Total cash, cash equivalents, and restricted cash	$	359,574	$	119,676

Schedule of Property and Equipment Estimated Useful Lives

Depreciation is recorded using the straight-line method over the following estimated useful lives:


Property and Equipment			Estimated Useful Lives
Building			40 years
Leasehold and other improvements			Lesser of 7 to 10 years or the expected lease term
Equipment, furniture and fixtures			3 to 7 years
Capitalized software			3 to 10 years

Property and equipment, net, consisted of the following (in thousands):


	December 28, 2024		December 30, 2023
Building	$	15,769	$	15,769
Construction in progress	15,088		46,675
Equipment, furniture and fixtures	21,900		41,268
Leasehold and other improvements	37,560		26,599
Capitalized software	79,186		—
Land	2,828		2,828
Property and equipment, gross	172,331		133,139
Less: accumulated depreciation	(46,378)		(41,847)
Property and equipment, net	$	125,953	$	91,292

Earnings Per Share (Tables)

12 Months Ended

Dec. 28, 2024

Earnings Per Share [Abstract]

Schedule of Reconciliation of Basic Shares Outstanding to Diluted Shares Outstanding

Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands):


	Fiscal Year
	December 28, 2024	December 30, 2023	December 31, 2022
Basic weighted average shares outstanding	29,262	29,769	29,893
Dilutive shares	122	87	70
Diluted weighted average shares outstanding	29,384	29,856	29,963

Fair Value Measurements (Tables)

12 Months Ended

Dec. 28, 2024

Fair Value Disclosures [Abstract]

Schedule of Fair Value Measurements

Fair value of debt is determined on a non-recurring basis, which results are summarized as follows (in thousands):


	Fair Value Hierarchy	December 28, 2024				December 30, 2023
		Carrying Value		Fair Value		Carrying Value		Fair Value
Securitized Financing Facility:
2020-1 Class A-2 Senior Secured Notes (1)	Level 2	$	472,800	$	439,846	$	472,800	$	423,823
2022-1 Class A-2 Senior Secured Notes (1)	Level 2	$	248,125	$	230,905	$	248,125	$	222,370
2024-1 Class A-2 Senior Secured Notes (1)	Level 2	$	500,000	$	496,050	$	—	$	—
Investments in bonds of LPH (Note 10) (2)	Level 3	$	3,699	$	4,560	$	3,557	$	4,306

(1) The fair value of the 2020-1, 2022-1, and 2024-1 Class A-2 Senior Secured Notes was estimated using available market information.

(2) The fair value approximates discounted cash flows using current market rates for debt investments with similar maturities and credit risk.

Accounts Receivable, net (Tables)

12 Months Ended

Dec. 28, 2024

Receivables [Abstract]

Schedule of Accounts Receivable, Net

Accounts receivable, net, consist of the following (in thousands):


	December 28, 2024		December 30, 2023
Vendor rebates receivable	$	7,575	$	5,311
Royalties receivable	8,641		5,717
Other receivables, net	3,445		1,380
Accounts receivable, net	$	19,661	$	12,408

Property and Equipment (Tables)

12 Months Ended

Dec. 28, 2024

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Depreciation is recorded using the straight-line method over the following estimated useful lives:


Property and Equipment			Estimated Useful Lives
Building			40 years
Leasehold and other improvements			Lesser of 7 to 10 years or the expected lease term
Equipment, furniture and fixtures			3 to 7 years
Capitalized software			3 to 10 years

Property and equipment, net, consisted of the following (in thousands):


	December 28, 2024		December 30, 2023
Building	$	15,769	$	15,769
Construction in progress	15,088		46,675
Equipment, furniture and fixtures	21,900		41,268
Leasehold and other improvements	37,560		26,599
Capitalized software	79,186		—
Land	2,828		2,828
Property and equipment, gross	172,331		133,139
Less: accumulated depreciation	(46,378)		(41,847)
Property and equipment, net	$	125,953	$	91,292

Intangible Assets and Goodwill (Tables)

12 Months Ended

Dec. 28, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The following is a summary of goodwill balances and activity (in thousands):


	December 28, 2024		December 30, 2023
Balance, beginning of period	$	67,708	$	62,514
Acquisition of restaurants, net	7,010		5,194
Balance, end of period	$	74,718	$	67,708

Schedule of Intangible Assets, Excluding Goodwill

Intangible assets, excluding goodwill, consisted of the following (in thousands):


	December 28, 2024		December 30, 2023		Weighted Average Amortization Period (in years)
Intangible assets:
Trademarks	$	32,700	$	32,700
Indefinite-lived assets	32,700		32,700
Customer relationships	26,300		26,300		20.0
Franchise rights (1)	20,879		14,168		7.2


Less: accumulated amortization	(27,814)		(24,488)
Definite-lived assets	19,365		15,980		15.8
Intangible assets, net	$	52,065	$	48,680

(1)Included within Other non-current assets net of associated accumulated amortization within the Consolidated Balance Sheets.

Schedule of Intangible Assets, Future Amortization Expense

Estimated amortization expense, for the five succeeding fiscal years and the aggregate thereafter is (in thousands):


Fiscal year 2025	$	3,613
Fiscal year 2026	3,368
Fiscal year 2027	3,230
Fiscal year 2028	3,041
Fiscal year 2029	2,834
Thereafter	3,279
Total	$	19,365

Other Current Liabilities (Tables)

12 Months Ended

Dec. 28, 2024

Balance Sheet Related Disclosures [Abstract]

Schedule of Other Current Liabilities

Other current liabilities consisted of the following (in thousands):


	December 28, 2024		December 30, 2023
Accrued payroll and incentive compensation	$	15,516	$	14,331
Current portion of deferred revenues	5,963		4,846



Other accrued liabilities	25,303		19,394
Total	$	46,782	$	38,571

Income Taxes (Tables)

12 Months Ended

Dec. 28, 2024

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense

Income tax expense for the fiscal years 2024, 2023, and 2022 consisted of the following (in thousands):


	Fiscal Year
	December 28, 2024		December 30, 2023		December 31, 2022
Current expense
Federal	$	32,597	$	19,398	$	15,909
State	6,389		4,586		3,384
Foreign	1,296		610		328
Deferred expense (benefit)
Federal	(1,533)		(314)		(2,996)
State	(276)		(145)		(256)
Income tax expense	$	38,473	$	24,135	$	16,369

Schedule of US Federal Income Tax Rate Reconciliation


	Fiscal Year
	December 28, 2024		December 30, 2023		December 31, 2022
Expected income tax expense at statutory rate	$	30,910	$	19,777	$	14,556

Excess tax benefits from equity compensation	(2,404)		(1,275)		(522)
Non-deductible expenses	5,954		3,106		935
State tax expense, net of federal benefit	4,771		3,164		2,090
Foreign tax expense	1,296		610		328
Foreign tax and other tax credits	(2,708)		(1,760)		(1,001)
Increase in unrecognized tax benefit	672		398		337
Other	(18)		115		(354)
Income tax expense	$	38,473	$	24,135	$	16,369

Schedule of Deferred Tax Assets (Liabilities)

The components of deferred tax assets (liabilities) were as follows (in thousands):


	December 28, 2024		December 30, 2023
Deferred tax assets:
Deferred revenue	$	6,671	$	6,067
Accrued incentive compensation	2,096		1,596
Stock based compensation	1,766		1,444
Lease liabilities	13,601		4,720
Intangible assets	294		196
Other	1,112		1,365
Net operating loss carry-forwards and credits	538		827
Valuation allowance	(577)		(577)
	25,501		15,638
Deferred tax liabilities:
Intangible assets	(11,008)		(10,397)
Right of use assets	(11,227)		(4,464)
Property and equipment	(4,351)		(4,498)
	(26,586)		(19,359)
Net deferred tax liability	$	(1,085)	$	(3,721)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):


Balance as of December 26, 2021	$	1,055
Additions for tax positions of prior years	—
Subtractions for tax positions of prior years	(27)
Additions for tax positions of current year	270
Subtractions for tax positions of current year	—
Balance as of December 31, 2022	1,298
Additions for tax positions of prior years	—
Subtractions for tax positions of prior years	(65)
Additions for tax positions of current year	468
Subtractions for tax positions of current year	—
Balance as of December 30, 2023	1,701
Additions for tax positions of prior years	—
Subtractions for tax positions of prior years	(118)
Additions for tax positions of current year	740
Subtractions for tax positions of current year	—
Balance as of December 28, 2024	$	2,323

Debt Obligations (Tables)

12 Months Ended

Dec. 28, 2024

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

Long-term debt consisted of the following components (in thousands):


	December 28, 2024		December 30, 2023
2020-1 Class A-2 Senior Secured Notes	$	472,800	472,800
2022-1 Class A-2 Senior Secured Notes	248,125		248,125
2024-1 Class A-2 Senior Secured Notes	500,000		—
Debt issuance costs, net of amortization	(14,724)		(8,598)
Less: current portion of debt	—		—
Long-term debt, net	$	1,206,201	$	712,327

Schedule of Maturities of Long-term Debt

As of December 28, 2024, the scheduled principal payments on debt were as follows (in thousands):


Fiscal year 2025	$	—
Fiscal year 2026	—
Fiscal year 2027	472,800
Fiscal year 2028	—
Fiscal year 2029	248,125
Thereafter	500,000
Total	$	1,220,925

Leases (Tables)

12 Months Ended

Dec. 28, 2024

Leases [Abstract]

Schedule of Lease Expense

Components of lease expense were as follows (in thousands):


	Year Ended
	December 28, 2024		December 30, 2023		December 31, 2022
Operating lease cost (1)	$	6,813	$	3,523	$	3,244
Variable lease cost (2)	987		733		448
Total lease cost	$	7,800	$	4,256	$	3,692

(1) Includes short-term leases, which are immaterial.

(2) Primarily related to adjustments for inflation, common area maintenance, and property tax.

Supplemental cash flow information related to leases is as follows (in thousands):


	Year Ended
	December 28, 2024		December 30, 2023		December 31, 2022
Operating cash flow information:
Cash paid (received) for amounts included in the measurement of lease liabilities (1)	$	(3,658)	$	3,348	$	3,543
Non-cash activity:
Right-of-use assets obtained in exchange for new operating lease liabilities	$	43,101	$	6,346	$	3,923

(1) Includes tenant improvement reimbursements received.

Schedule of Supplemental Balance Sheet Information Related to Operating Leases

Supplemental balance sheet information related to our operating leases is as follows (in thousands):


		Year Ended
	Balance Sheet Classification	December 28, 2024		December 30, 2023
Right-of-use assets	Other non-current assets	$	49,046	$	19,092
Current lease liabilities	Other current liabilities	1,059		2,380
Non-current lease liabilities	Other non-current liabilities	58,169		17,807

Schedule of Weighted Average Lease Term and Discount Rate Information

Weighted average lease term and discount rate information related to leases was as follows:


	Year Ended
	December 28, 2024		December 30, 2023		December 31, 2022
Weighted average remaining lease term of operating leases	11.3 years		7.1 years		7.5 years
Weighted average discount rate of operating leases	6.08	%	4.52	%	3.86	%

Schedule of Future Maturities of Lease Liabilities

Maturities of lease liabilities by fiscal year are as follows (in thousands):


Fiscal year 2025	$	4,248
Fiscal year 2026	7,789
Fiscal year 2027	7,665
Fiscal year 2028	7,714
Fiscal year 2029	7,390
Thereafter	51,842
Total future minimum lease payments	86,648
Less: imputed interest	(27,420)
Total lease liabilities	$	59,228

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 28, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Stock Option Activity

The following table summarizes stock option activity:


	Number of Shares (in thousands)	Weighted Average Exercise Price		Aggregate Intrinsic Value (in thousands)		Weighted Average Remaining Term (in years)
Stock options outstanding at December 30, 2023	28	$	117.77	$	3,940	7.4
Options granted	—	$	—
Options exercised	(8)	$	98.88
Options forfeited	—	$	—
Stock options outstanding at December 28, 2024	20	$	125.17	$	3,266	6.6
Stock options exercisable at December 28, 2024	16	$	120.97	$	2,646	6.4

Schedule of Restricted and Performance Stock Unit Activity

The following table summarizes activity related to restricted stock units:


	Number of Shares (in thousands)	Weighted Average Grant Date Fair Value
Nonvested restricted stock units at December 30, 2023	79	$	146.03
Units granted	29	362.70
Units vested	(25)	158.76
Units forfeited	(8)	208.15
Nonvested restricted stock units at December 28, 2024	75	$	220.38

Schedule of Non-vested Options Activity

The following table summarizes activity related to performance stock units:


	Number of Shares (in thousands)	Weighted Average Grant Date Fair Value
Nonvested performance stock units at December 30, 2023	81	$	151.03
Units granted (a)	33	$	306.61
Units vested	(19)	$	132.92
Units forfeited	(4)	$	210.22
Nonvested performance stock units at December 28, 2024	91	$	208.62

(a) Includes 9,000 incremental PSUs earned with respect to the PSUs granted in fiscal year 2021 and vested in fiscal year 2024 at greater than 100% of target based on performance.

Restaurant Transactions (Tables)

12 Months Ended

Dec. 28, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Schedule of Purchase Price Allocation for Acquisitions

The following table summarizes the allocations of the purchase prices to the estimated fair values of assets acquired and liabilities assumed as a result of these acquisitions (in thousands):


	Fiscal Year
	December 28, 2024		December 30, 2023		December 31, 2022
Working capital	$	44	$	—	$	17
Property and equipment	253		217		155
Reacquired franchise rights	6,710		5,330		2,000
Goodwill	7,041		5,285		5,637


Total purchase price	$	14,048	$	10,832	$	7,809

Revenue from Contracts with Customers (Tables)

12 Months Ended

Dec. 28, 2024

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

The following table represents a disaggregation of revenue from contracts with customers for the fiscal years 2024, 2023, and 2022 (in thousands):


	Fiscal Year
	December 28, 2024		December 30, 2023		December 31, 2022

Royalty revenue	$	259,632	$	186,455	$	142,900
Advertising fees	217,630		157,138		119,011
Franchise fees	6,080		5,064		4,357

Segment Information (Tables)

12 Months Ended

Dec. 28, 2024

Segment Reporting [Abstract]

Schedule to Financial Information for the Company’s Reportable Segment

Financial information for the Company’s reportable segment is as follows (in thousands):


	Fiscal Year
	December 28, 2024		December 30, 2023		December 31, 2022
Revenue:
Royalty revenue, franchise fees and other	$	288,354	$	207,077	$	158,614
Advertising fees	217,630		157,138		119,011
Company-owned restaurant sales	119,823		95,840		79,896
Total revenue	625,807		460,055		357,521
Cost of sales:
Food, beverage and packaging costs	43,371		31,697		30,579
Labor	28,317		22,963		19,234
Other operating costs	23,025		18,314		15,380
Vendor rebates	(3,081)		(2,328)		(1,798)
Total cost of sales	91,632		70,646		63,395
Advertising expenses	233,306		166,583		123,069
Selling, general & administrative:
Transaction costs	316		—		310
Consulting fees	—		5,150		875
System implementation costs	1,713		—		—
Stock-based compensation expense	22,060		15,558		4,200
Other segment expense (1)	92,712		76,190		61,676
Total selling, general and administrative	116,801		96,898		67,061
Depreciation and amortization	19,490		13,239		10,899
(Gain) loss on disposal of assets	(1,038)		95		1,164
Interest expense, net	21,292		18,227		21,230
Loss on debt extinguishment and financing transactions	—		—		814
Other (income) expense	(2,866)		57		573
Income tax expense	38,473		24,135		16,369
Net income	$	108,717	$	70,175	$	52,947

(1) Other segment expense consists primarily of corporate related items such as headcount-related expenses, office rent expense, and other overhead costs.

Basis of Presentation and Summary of Significant Accounting Policies - Overview (Details)	12 Months Ended
	Dec. 28, 2024 restaurant
Franchisor Disclosure [Line Items]
Number of restaurants (in restaurants)	2,563
Franchised Units
Franchisor Disclosure [Line Items]
Number of restaurants (in restaurants)	2,513
Proportion of restaurants that are franchised (as a percent)	98.00%
Franchised Units \| Non-US
Franchisor Disclosure [Line Items]
Number of restaurants (in restaurants)	359
Entity Operated Units
Franchisor Disclosure [Line Items]
Number of restaurants (in restaurants)	50

Basis of Presentation and Summary of Significant Accounting Policies - Cash and Restricted Cash (Details) - USD ($) $ in Thousands	Dec. 28, 2024	Dec. 30, 2023	Dec. 31, 2022	Dec. 25, 2021
Accounting Policies [Abstract]
Cash and cash equivalents	$ 315,910	$ 90,216
Restricted cash	20,868	11,444
Restricted cash, included in Advertising fund assets, restricted	22,796	18,016
Total cash, cash equivalents, and restricted cash	$ 359,574	$ 119,676	$ 205,715	$ 54,906

Basis of Presentation and Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($)	12 Months Ended
	Dec. 28, 2024	Dec. 30, 2023	Dec. 31, 2022
Property and Equipment [Line Items]
Impairment of long-lived assets	$ 0	$ 0	$ 0
Goodwill and indefinite-lived intangible asset impairment	$ 0	$ 0	$ 0
Building
Property and Equipment [Line Items]
Building, equipment, furniture and fixtures useful life (in years)	40 years
Leasehold and other improvements \| Minimum
Property and Equipment [Line Items]
Building, equipment, furniture and fixtures useful life (in years)	7 years
Leasehold and other improvements \| Maximum
Property and Equipment [Line Items]
Building, equipment, furniture and fixtures useful life (in years)	10 years
Equipment, furniture and fixtures \| Minimum
Property and Equipment [Line Items]
Building, equipment, furniture and fixtures useful life (in years)	3 years
Equipment, furniture and fixtures \| Maximum
Property and Equipment [Line Items]
Building, equipment, furniture and fixtures useful life (in years)	7 years
Capitalized software \| Minimum
Property and Equipment [Line Items]
Computer software useful life (in years)	3 years
Capitalized software \| Maximum
Property and Equipment [Line Items]
Computer software useful life (in years)	10 years

Basis of Presentation and Summary of Significant Accounting Policies - Consideration from Vendors (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 28, 2024	Dec. 30, 2023	Dec. 31, 2022
Franchisor Disclosure [Line Items]
Incentives from vendors recognized	$ 25.3	$ 17.7	$ 13.1
Cost of Sales
Franchisor Disclosure [Line Items]
Incentives from vendors recognized	$ 3.1	$ 2.3	$ 1.8

Basis of Presentation and Summary of Significant Accounting Policies - Advertising Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Jul. 01, 2023	Apr. 01, 2023	Dec. 28, 2024	Dec. 30, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Revenue collected for advertising fund (as a percent)	5.30%	5.00%
Franchisor Disclosure [Line Items]
Cash and cash equivalents			$ 315,910	$ 90,216
Accounts receivable, net			19,661	12,408
Accounts payable			6,943	4,725
Cost of Sales
Franchisor Disclosure [Line Items]
Advertising expenses			6,300	4,900	$ 3,600
Ad Funds
Franchisor Disclosure [Line Items]
Cash and cash equivalents			23,700	18,800
Accounts receivable, net			9,000	6,600
Accrued expenses			15,300	17,200
Accounts payable			$ 17,300	$ 8,100

Basis of Presentation and Summary of Significant Accounting Policies - Leases (Details)	12 Months Ended
	Dec. 28, 2024
Minimum
Operating Leased Assets [Line Items]
Lease possession period before restaurant's opening date (in months)	2 months
Maximum
Operating Leased Assets [Line Items]
Lease possession period before restaurant's opening date (in months)	3 months

Earnings Per Share - Summary (Details) - shares shares in Thousands	12 Months Ended
	Dec. 28, 2024	Dec. 30, 2023	Dec. 31, 2022
Earnings Per Share [Abstract]
Basic weighted average shares outstanding (in shares)	29,262	29,769	29,893
Dilutive shares (in shares)	122	87	70
Diluted weighted average shares outstanding (in shares)	29,384	29,856	29,963

Earnings Per Share - Narrative (Details) - shares	12 Months Ended
Earnings Per Share - Narrative (Details) - shares	Dec. 28, 2024	Dec. 30, 2023	Dec. 31, 2022
Earnings Per Share [Abstract]
Equity awards outstanding (in shares)	1,000	0	19,000

Stockholders' Deficit (Details) - USD ($)				12 Months Ended
Stockholders' Deficit (Details) - USD ($)	Feb. 18, 2025	Dec. 09, 2024	Aug. 23, 2023	Dec. 28, 2024	Dec. 30, 2023	Dec. 31, 2022	Dec. 05, 2024	Aug. 17, 2023
Dividends Payable [Line Items]
Dividends, common stock				$ 28,700,000	$ 24,400,000	$ 21,500,000
Dividends payable per share (in usd per share)					$ 0.82	$ 0.72
Purchases of common stock				$ 317,067,000	$ 126,276,000
Stock repurchased (in shares)				720,804	645,952
Share Repurchase Authorization
Dividends Payable [Line Items]
Stock repurchase, authorized amount							$ 500,000,000	$ 250,000,000
Share repurchase program, remaining authorized, amount				$ 311,100,000
ASR Agreement
Dividends Payable [Line Items]
Stock repurchase, authorized amount		$ 250,000,000	$ 125,000,000.0
Purchases of common stock		$ 250,000,000	$ 125,000,000.0
Stock repurchased (in shares)		551,325	645,952	169,479
Percentage of total shares expected to be delivered		75.00%
Stock repurchased average share price (in usd per share)		$ 328.54	$ 193.51	$ 377.09
Ordinary Dividends 2024
Dividends Payable [Line Items]
Dividends payable per share (in usd per share)				$ 0.98
Special Dividends 2024
Dividends Payable [Line Items]
Dividends, common stock						$ 119,500,000
Special Dividends 2023
Dividends Payable [Line Items]
Dividends, common stock					$ 0
Special Dividends 2022
Dividends Payable [Line Items]
Dividends payable per share (in usd per share)						$ 4.00
Subsequent event
Dividends Payable [Line Items]
Dividends payable per share (in usd per share)	$ 0.27
Dividends payable	$ 7,700,000

Fair Value Measurements (Details) - Nonrecurring - USD ($) $ in Thousands	Dec. 28, 2024	Dec. 30, 2023
Level 2 \| Carrying Value \| 2020-1 Class A-2 Senior Secured Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt instrument at fair value	$ 472,800	$ 472,800
Level 2 \| Carrying Value \| 2022-1 Class A-2 Senior Secured Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt instrument at fair value	248,125	248,125
Level 2 \| Carrying Value \| 2024-1 Class A-2 Senior Secured Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt instrument at fair value	500,000	0
Level 2 \| Fair Value \| 2020-1 Class A-2 Senior Secured Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt instrument at fair value	439,846	423,823
Level 2 \| Fair Value \| 2022-1 Class A-2 Senior Secured Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt instrument at fair value	230,905	222,370
Level 2 \| Fair Value \| 2024-1 Class A-2 Senior Secured Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt instrument at fair value	496,050	0
Level 3 \| Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	3,699	3,557
Level 3 \| Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	$ 4,560	$ 4,306

Accounts Receivable, net (Details) - USD ($) $ in Thousands	Dec. 28, 2024	Dec. 30, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net	$ 19,661	$ 12,408
Vendor rebates receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net	7,575	5,311
Royalties receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net	8,641	5,717
Other receivables, net
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net	$ 3,445	$ 1,380

Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 28, 2024	Dec. 30, 2023
Property and Equipment [Line Items]
Property and equipment, gross	$ 172,331	$ 133,139
Less: accumulated depreciation	(46,378)	(41,847)
Property and equipment, net	125,953	91,292
Building
Property and Equipment [Line Items]
Property and equipment, gross	15,769	15,769
Construction in progress
Property and Equipment [Line Items]
Property and equipment, gross	15,088	46,675
Equipment, furniture and fixtures
Property and Equipment [Line Items]
Property and equipment, gross	21,900	41,268
Leasehold and other improvements
Property and Equipment [Line Items]
Property and equipment, gross	37,560	26,599
Capitalized software
Property and Equipment [Line Items]
Property and equipment, gross	79,186	0
Land
Property and Equipment [Line Items]
Property and equipment, gross	$ 2,828	$ 2,828

Property and Equipment - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 28, 2024	Dec. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 16.2	$ 10.6	$ 8.7

Intangible Assets and Goodwill - Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2024	Dec. 30, 2023
Goodwill [Roll Forward]
Goodwill balance, beginning of period	$ 67,708	$ 62,514
Acquisition of restaurants, net	7,010	5,194
Goodwill balance, end of period	$ 74,718	$ 67,708

Intangible Assets and Goodwill - Intangible Assets Excluding Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2024	Dec. 30, 2023
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived assets	$ 32,700	$ 32,700
Finite-Lived Intangible Assets [Line Items]
Less: accumulated amortization	(27,814)	(24,488)
Intangible assets, net	52,065	48,680
Trademarks
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived assets	32,700	32,700
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Definite-lived assets, gross	26,300	26,300
Definite-lived assets	$ 6,476	7,740
Weighted Average Amortization Period (in years)	20 years
Franchise rights
Finite-Lived Intangible Assets [Line Items]
Definite-lived assets, gross	$ 20,879	14,168
Weighted Average Amortization Period (in years)	7 years 2 months 12 days
Customer relationships and franchise rights
Finite-Lived Intangible Assets [Line Items]
Definite-lived assets	$ 19,365	$ 15,980
Weighted Average Amortization Period (in years)	15 years 9 months 18 days

Intangible Assets and Goodwill - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 28, 2024	Dec. 30, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense of intangible assets	$ 3.3	$ 2.7	$ 2.2

Intangible Assets and Goodwill - Amortization (Details) - Customer relationships and franchise rights - USD ($) $ in Thousands	Dec. 28, 2024	Dec. 30, 2023
Finite-Lived Intangible Assets [Line Items]
Fiscal year 2025	$ 3,613
Fiscal year 2026	3,368
Fiscal year 2027	3,230
Fiscal year 2028	3,041
Fiscal year 2029	2,834
Thereafter	3,279
Total	$ 19,365	$ 15,980

Other Current Liabilities - Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 28, 2024	Dec. 30, 2023
Balance Sheet Related Disclosures [Abstract]
Accrued payroll and incentive compensation	$ 15,516	$ 14,331
Current portion of deferred revenues	5,963	4,846
Other accrued liabilities	25,303	19,394
Total	$ 46,782	$ 38,571

Income Taxes - Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2024	Dec. 30, 2023	Dec. 31, 2022
Current expense
Federal	$ 32,597	$ 19,398	$ 15,909
State	6,389	4,586	3,384
Foreign	1,296	610	328
Deferred expense (benefit)
Federal	(1,533)	(314)	(2,996)
State	(276)	(145)	(256)
Income tax expense	$ 38,473	$ 24,135	$ 16,369

Income Taxes - Reconciliation of Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2024	Dec. 30, 2023	Dec. 31, 2022
Effective Income Tax Rate Reconciliation, Amount [Abstract]
US federal statutory tax rate	21.00%	21.00%	21.00%
Expected income tax expense at statutory rate	$ 30,910	$ 19,777	$ 14,556
Excess tax benefits from equity compensation	(2,404)	(1,275)	(522)
Non-deductible expenses	5,954	3,106	935
State tax expense, net of federal benefit	4,771	3,164	2,090
Foreign tax expense	1,296	610	328
Foreign tax and other tax credits	(2,708)	(1,760)	(1,001)
Increase in unrecognized tax benefit	672	398	337
Other	(18)	115	(354)
Income tax expense	$ 38,473	$ 24,135	$ 16,369

Income Taxes - Deferred Tax Asset and Liabilities (Details) - USD ($) $ in Thousands	Dec. 28, 2024	Dec. 30, 2023
Deferred tax assets:
Deferred revenue	$ 6,671	$ 6,067
Accrued incentive compensation	2,096	1,596
Stock based compensation	1,766	1,444
Lease liabilities	13,601	4,720
Intangible assets	294	196
Other	1,112	1,365
Net operating loss carry-forwards and credits	538	827
Valuation allowance	(577)	(577)
Deferred tax assets, net of valuation allowance	25,501	15,638
Deferred tax liabilities:
Intangible assets	(11,008)	(10,397)
Right of use assets	(11,227)	(4,464)
Property and equipment	(4,351)	(4,498)
Deferred tax liabilities	(26,586)	(19,359)
Net deferred tax liability	$ (1,085)	$ (3,721)

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Dec. 28, 2024	Dec. 30, 2023	Dec. 31, 2022	Dec. 25, 2021
Tax Credit Carryforward [Line Items]
Valuation allowance	$ 577	$ 577
Accrued interest and penalties on unrecognized tax benefits	900	700
Unrecognized tax benefits	2,323	1,701	$ 1,298	$ 1,055
State and Local Jurisdiction
Tax Credit Carryforward [Line Items]
Operating loss carryforward	$ 23,300	$ 23,300

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2024	Dec. 30, 2023	Dec. 31, 2022
Unrecognized Tax Benefits [Roll Forward]
Unrecognized tax benefits, beginning of period	$ 1,701	$ 1,298	$ 1,055
Additions for tax positions of prior years	0	0	0
Subtractions for tax positions of prior years	(118)	(65)	(27)
Additions for tax positions of current year	740	468	270
Subtractions for tax positions of current year	0	0	0
Unrecognized tax benefits, end of period	$ 2,323	$ 1,701	$ 1,298

Investments (Details) - Lemmon Pepper Holdings Ltd - USD ($) $ in Millions	2 Months Ended
	Feb. 19, 2025	Dec. 28, 2024
Schedule of Equity Method Investments [Line Items]
Equity method investments		$ 4.8
Additional ownership percentage acquired		15.00%
Aggregate amount of equity method investments		$ 76.0
Subsequent event
Schedule of Equity Method Investments [Line Items]
Proceeds from Sale of Equity Method Investments	$ 107.0

Debt Obligations - Components of Long-term Debt (Details) - USD ($) $ in Thousands	Dec. 28, 2024	Dec. 30, 2023	Mar. 26, 2022
Debt Instrument [Line Items]
Debt issuance costs, net of amortization	$ (14,724)	$ (8,598)
Less: current portion of debt	0	0
Long-term debt, net	1,206,201	712,327
2020-1 Class A-2 Senior Secured Notes
Debt Instrument [Line Items]
Gross debt	472,800	472,800
2022-1 Class A-2 Senior Secured Notes
Debt Instrument [Line Items]
Gross debt	248,125	248,125
Debt issuance costs, net of amortization			$ (5,500)
2024-1 Class A-2 Senior Secured Notes
Debt Instrument [Line Items]
Gross debt	$ 500,000	$ 0

Debt Obligations - Schedule of Maturities (Details) $ in Thousands	Dec. 28, 2024 USD ($)
Debt Disclosure [Abstract]
Fiscal year 2025	$ 0
Fiscal year 2026	0
Fiscal year 2027	472,800
Fiscal year 2028	0
Fiscal year 2029	248,125
Thereafter	500,000
Total	$ 1,220,925

Debt Obligations - Narrative (Details) - USD ($)	3 Months Ended	12 Months Ended
Debt Obligations - Narrative (Details) - USD ($)	Mar. 26, 2022	Dec. 28, 2024	Dec. 30, 2023	Dec. 31, 2022	Dec. 03, 2024	Dec. 02, 2024
Debt Instrument [Line Items]
Loss on debt extinguishment		$ 0	$ 0	$ 814,000
Debt issuance costs incurred		$ 14,724,000	$ 8,598,000
2022-1 Class A-2 Senior Secured Notes
Debt Instrument [Line Items]
Senior secured note fixed interest rate (as a percent)		3.734%
Debt issuance costs incurred	$ 5,500,000
Debt instrument, annual amortization, percentage		1.00%
2020-1 Class A-2 Senior Secured Notes
Debt Instrument [Line Items]
Senior secured note fixed interest rate (as a percent)		2.84%
Covenant, leverage ratio		5.0
Debt instrument, annual amortization, percentage		1.00%
2022 Variable Funding Notes
Debt Instrument [Line Items]
Line of credit facility, unused capacity, draw fee percentage		0.60%
Commitment fee on unused portion of note facility (in basis points)		0.30%
2022 Variable Funding Notes \| Line of credit
Debt Instrument [Line Items]
Line of credit		$ 0
2020 Variable Funding Notes
Debt Instrument [Line Items]
Loss on debt extinguishment	$ 800,000
2020 Variable Funding Notes \| Line of credit
Debt Instrument [Line Items]
Line of credit		$ 0
Line of credit \| Secured Debt
Debt Instrument [Line Items]
Maximum borrowing capacity for line of credit					$ 300,000,000
Line of credit \| 2024-1 Class A-2 Senior Secured Notes \| Secured Debt
Debt Instrument [Line Items]
Debt face amount					$ 500,000,000
Senior secured note fixed interest rate (as a percent)					5.858%
Line of credit \| 2022-1 Class A-2 Senior Secured Notes \| Secured Debt
Debt Instrument [Line Items]
Maximum borrowing capacity for line of credit					$ 300,000,000	$ 200,000,000

Leases - Narrative (Details) - USD ($) $ in Thousands	Dec. 28, 2024	Mar. 30, 2024
Lessee, Lease, Description [Line Items]
Operating lease term of contract (in years)		13 years 9 months 18 days
Total future minimum lease payments	$ 86,648	$ 66,900
Minimum
Lessee, Lease, Description [Line Items]
Operating lease term of contract (in years)	10 months 24 days
Maximum
Lessee, Lease, Description [Line Items]
Operating lease term of contract (in years)	13 years 2 months 12 days
Operating lease renewal term (in years)	10 years

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2024	Dec. 30, 2023	Dec. 31, 2022
Leases [Abstract]
Operating lease cost	$ 6,813	$ 3,523	$ 3,244
Variable lease cost	987	733	448
Total lease cost	7,800	4,256	3,692
Operating cash flow information:
Cash paid (received) for amounts included in the measurement of lease liabilities	(3,658)	3,348	3,543
Non-cash activity:
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 43,101	$ 6,346	$ 3,923

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Dec. 28, 2024	Dec. 30, 2023
Leases [Abstract]
Right-of-use assets	$ 49,046	$ 19,092
Current lease liabilities	1,059	2,380
Non-current lease liabilities	$ 58,169	$ 17,807

Leases - Weighted Average Information (Details)	Dec. 28, 2024	Dec. 30, 2023	Dec. 31, 2022
Leases [Abstract]
Weighted average remaining lease term of operating leases (in years)	11 years 3 months 18 days	7 years 1 month 6 days	7 years 6 months
Weighted average discount rate of operating leases (as a percent)	6.08%	4.52%	3.86%

Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Dec. 28, 2024	Mar. 30, 2024
Leases [Abstract]
Fiscal year 2025	$ 4,248
Fiscal year 2026	7,789
Fiscal year 2027	7,665
Fiscal year 2028	7,714
Fiscal year 2029	7,390
Thereafter	51,842
Total future minimum lease payments	86,648	$ 66,900
Less: imputed interest	(27,420)
Total lease liabilities	$ 59,228

Employee Benefit Plan (Details) - USD ($) $ in Millions	12 Months Ended
Employee Benefit Plan (Details) - USD ($) $ in Millions	Dec. 28, 2024	Dec. 30, 2023	Dec. 31, 2022
Retirement Benefits [Abstract]
Matching contributions	$ 1.2	$ 1.1	$ 0.9

Stock-Based Compensation - Stock Option Plan (Details) - USD ($) $ in Thousands, shares in Millions	12 Months Ended
	Dec. 28, 2024	Dec. 30, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 22,100	$ 15,600	$ 4,200
Share-based payment arrangement, forfeited	800	1,300
Intrinsic value of stock options	2,000	$ 400	$ 1,100
Stock-based compensation expense, unrecognized	$ 40
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense, recognition period (in years)	2 months 12 days
2015 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Plan expiration period (in years)	10 years
Shares available for future grants (in shares)	1.8

Stock-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 28, 2024	Dec. 30, 2023
Number of Shares (in thousands)
Options outstanding at beginning of period (in shares)	28
Options granted (in shares)	0
Options exercised (in shares)	(8)
Options forfeited (in shares)	0
Options outstanding at end of period (in shares)	20	28
Options exercisable (in shares)	16
Weighted Average Exercise Price
Weighted average exercise price of options outstanding at beginning of period (in usd per share)	$ 117.77
Weighted average exercise price of options granted (in usd per share)	0
Weighted average exercise price of options exercised (in usd per share)	98.88
Weighted average exercise price of options forfeited (in usd per share)	0
Weighted average exercise price of options outstanding at end of period (in usd per share)	125.17	$ 117.77
Weighted average exercise price of options exercisable (in usd per share)	$ 120.97
Aggregate Intrinsic Value (in thousands)
Aggregate intrinsic value of options outstanding	$ 3,266	$ 3,940
Aggregate intrinsic value of options exercisable	$ 2,646
Weighted Average Remaining Term (in years)
Weighted average remaining term of options outstanding (in years)	6 years 7 months 6 days	7 years 4 months 24 days
Weighted average remaining term of options exercisable (in years)	6 years 4 months 24 days

Stock-Based Compensation - Schedule of Restricted Stock Units (Details) - Restricted Stock Units - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Dec. 28, 2024	Dec. 30, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Award vesting period (in years)	3 years
Unrecognized compensation expense related to unvested RSUs	$ 10.9
Stock-based compensation expense, recognition period (in years)	1 year 4 months 24 days
Weighted average fair value at grant date, granted (in usd per share)	$ 362.70	$ 174.57	$ 116.30
Fair value of restricted stock units, vested	$ 4.0	$ 2.1	$ 2.0
Number of Shares (in thousands)
Outstanding at beginning of period (in shares)	79
Units granted (in shares)	29
Units vested (in shares)	(25)
Units forfeited (in shares)	(8)
Outstanding at end of period (in shares)	75	79
Weighted Average Grant Date Fair Value
Weighted average fair value at grant date at beginning of period (in usd per share)	$ 146.03
Weighted average fair value at grant date, granted (in usd per share)	362.70	$ 174.57	$ 116.30
Weighted average fair value at grant date, vested (in usd per share)	158.76
Weighted average fair value at grant date, forfeited (in usd per share)	208.15
Weighted average fair value at grant date at end of period (in usd per share)	$ 220.38	$ 146.03

Stock-Based Compensation - Schedule of Performance Stock Units (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Dec. 28, 2024	Dec. 30, 2023	Dec. 31, 2022
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Performance units, service period (in years)	3 years
Unrecognized compensation expense related to unvested RSUs	$ 18.7
Stock-based compensation expense, recognition period (in years)	10 months 24 days
Weighted average fair value at grant date, granted (in usd per share)	$ 306.61	$ 145.15	$ 127.20
Fair value of performance stock units, vested	$ 2.5	$ 3.1	$ 1.7
Number of Shares (in thousands)
Outstanding at beginning of period (in shares)	81
Units granted (in shares)	33
Units vested (in shares)	(19)
Units forfeited (in shares)	(4)
Outstanding at end of period (in shares)	91	81
Weighted Average Grant Date Fair Value
Weighted average fair value at grant date at beginning of period (in usd per share)	$ 151.03
Weighted average fair value at grant date, granted (in usd per share)	306.61	$ 145.15	$ 127.20
Weighted average fair value at grant date, vested (in usd per share)	132.92
Weighted average fair value at grant date, forfeited (in usd per share)	210.22
Weighted average fair value at grant date at end of period (in usd per share)	$ 208.62	$ 151.03
Performance Stock Units \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
PSU vesting percentage (as a percent)	0.00%
Performance Stock Units \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
PSU vesting percentage (as a percent)	250.00%
Incremental Performance Stock Units
Number of Shares (in thousands)
Units vested (in shares)	(9)

Restaurant Transactions - Narrative (Details) $ in Thousands	12 Months Ended
	Dec. 28, 2024 USD ($) restaurant	Dec. 30, 2023 restaurant	Dec. 31, 2022 restaurant
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Number of restaurants sold to existing franchisees \| restaurant	7
Proceeds from sale of restaurants	$ 4,000
Pre-tax gain on sale	1,000
Reduction in goodwill related to sale of restaurants	$ 31
Number of restaurants acquired from franchisees \| restaurant	4	3	3

Restaurant Transactions - Allocation of Acquisition Purchase Price (Details) - USD ($) $ in Thousands	Dec. 28, 2024	Dec. 30, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Goodwill	$ 74,718	$ 67,708	$ 62,514
Restaurant Transactions
Business Acquisition [Line Items]
Working capital	44	0	17
Property and equipment	253	217	155
Reacquired franchise rights	6,710	5,330	2,000
Goodwill	7,041	5,285	5,637
Total purchase price	$ 14,048	$ 10,832	$ 7,809

Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2024	Dec. 30, 2023	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Revenues	$ 625,807	$ 460,055	$ 357,521
Average franchise license term (in years)	10 years
Deferred revenue not yet being amortized	$ 13,500	9,300
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-12-29
Disaggregation of Revenue [Line Items]
Remaining amortization period for deferred revenue related to open restaurants (in years)	7 years 2 months 12 days
Royalty revenue
Disaggregation of Revenue [Line Items]
Revenues	$ 259,632	186,455	142,900
Advertising fees
Disaggregation of Revenue [Line Items]
Revenues	217,630	157,138	119,011
Franchise fees
Disaggregation of Revenue [Line Items]
Revenues	$ 6,080	$ 5,064	$ 4,357

Segment Information - Narrative (Details)	12 Months Ended
Segment Information - Narrative (Details)	Dec. 28, 2024 segment territory
Segment Reporting [Abstract]
Number of reportable segments \| segment	1
Number of countries and territories \| territory	11

Segment Information - Financial Information for the Company’s Reportable Segment (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 28, 2024

Dec. 30, 2023

Dec. 31, 2022

Segment Reporting Information [Line Items]

Total revenue

$ 625,807

$ 460,055

$ 357,521

Cost of sales:

Total cost of sales

^[1]

91,632

70,646

63,395

Advertising expenses

233,306

166,583

123,069

Selling, general & administrative:

Stock-based compensation expense

22,100

15,600

4,200

Total selling, general and administrative

116,801

96,898

67,061

Depreciation and amortization

19,490

13,239

10,899

(Gain) loss on disposal of assets

(1,038)

1,164

Interest expense, net

21,292

18,227

21,230

Loss on debt extinguishment and financing transactions

814

Other (income) expense

(2,866)

573

Income tax expense

38,473

24,135

16,369

Restaurants Segment

Segment Reporting Information [Line Items]

Total revenue

625,807

460,055

357,521

Cost of sales:

Food, beverage and packaging costs

43,371

31,697

30,579

Labor

28,317

22,963

19,234

Other operating costs

23,025

18,314

15,380

Vendor rebates

(3,081)

(2,328)

(1,798)

Total cost of sales

91,632

70,646

63,395

Advertising expenses

233,306

166,583

123,069

Selling, general & administrative:

Transaction costs

316

310

Consulting fees

5,150

875

System implementation costs

1,713

Stock-based compensation expense

22,060

15,558

4,200

Other segment expense

92,712

76,190

61,676

Total selling, general and administrative

116,801

96,898

67,061

Depreciation and amortization

19,490

13,239

10,899

(Gain) loss on disposal of assets

(1,038)

1,164

Interest expense, net

21,292

18,227

21,230

Loss on debt extinguishment and financing transactions

814

Other (income) expense

(2,866)

573

Income tax expense

38,473

24,135

16,369

Net income

108,717

70,175

52,947

Royalty revenue, franchise fees and other

Segment Reporting Information [Line Items]

Total revenue

288,354

207,077

158,614

Royalty revenue, franchise fees and other | Restaurants Segment

Segment Reporting Information [Line Items]

Total revenue

288,354

207,077

158,614

Advertising fees

Segment Reporting Information [Line Items]

Total revenue

217,630

157,138

119,011

Advertising fees | Restaurants Segment

Segment Reporting Information [Line Items]

Total revenue

217,630

157,138

119,011

Company-owned restaurant sales

Segment Reporting Information [Line Items]

Total revenue

119,823

95,840

79,896

Company-owned restaurant sales | Restaurants Segment

Segment Reporting Information [Line Items]

Total revenue

$ 119,823

$ 95,840

$ 79,896

[1]	Cost of sales includes all operating expenses of company-owned restaurants, including advertising expenses, and excludes depreciation and amortization, which are presented separately.

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