Chicken chain Wingstop, which has been recognized as Britain’s fastest-growing restaurant operator, has put its UK business up for sale. According to sources familiar with the matter, the majority owners of Wingstop UK, a group of entrepreneurs who brought the brand to Britain in 2018, have hired investment bank Goldman Sachs to facilitate the sale process.
The decision to sell comes as a response to unsolicited expressions of interest from potential buyers. Goldman Sachs has already begun to distribute information about Wingstop UK, which is owned by parent company Lemon Pepper Holdings, to interested parties. The valuation of the business is currently unknown.
The sale process is being launched as Wingstop prepares to open its 50th outlet in the UK. The company plans to have 57 sites in operation by the end of the year and believes there is still significant room for growth in the crowded market of fast-food chicken chains. Sources indicate that Wingstop has its sights set on reaching between 400 and 500 locations in Britain.
Aside from its impressive growth, Wingstop has also become one of the largest employers in the UK’s restaurant industry, with a workforce of approximately 2,200 people. The chain’s diverse menu of flavors, including popular options like Louisiana Rub and Mango Habanero, has gained a cult following. Even celebrities like rappers Central Cee and Stormzy have expressed their love for the brand.
Wingstop positions itself as a premium alternative to fast-food giant KFC and competes with other popular chicken chains such as Nando’s and Popeyes. The latter has also experienced rapid expansion in recent years. Additionally, Chick-fil-A, the third-largest quick-service restaurant chain in the US, has announced plans to enter the British market in early 2025.
The entrance of new competitors into the market may have influenced the decision of Wingstop UK’s owners to sell at this time. The increased competition is expected to maintain pricing pressure on chicken chains. Wingstop’s US-based parent company, which is listed on the New York Stock Exchange, has a market capitalization of close to $11 billion (£8.6 billion) and owns 20% of the UK operation.
Wingstop’s success in Britain is in stark contrast to the struggles of the casual dining sector since the onset of the COVID-19 pandemic. Many chains, such as Carluccio’s, Prezzo, and Pizza Hut, have either been forced into insolvency or undergone significant restructurings, resulting in hundreds of site closures and thousands of job losses.
In addition to the majority owners and the US-based parent company, Wingstop UK also has an unidentified outside investor. When contacted for comment, a spokesperson for Wingstop UK declined to provide a statement.
