The restaurant industry is brutally competitive, but there are examples of big winners over the years, such as Starbucks or Domino's. Investors could be seeing the same story play out with chicken wing restaurant chain Wingstop (NASDAQ: WING). The stock's become a multi-bagger since going public in 2016, but the company's growth story might not be finished yet despite its success.
Wingstop seems to have found its rhythm and is popping up all over the United States and abroad. Here's what makes Wingstop a great business, and why the stock can continue producing sizzling total returns for long-term investors.
Wingstop is a quick-service food chain that focuses on bone-in and boneless chicken wings, complemented by french fries and other sides. It operates primarily as a franchise model. Restaurant operators pay a one-time fee to open a location, then pay ongoing royalties and advertising fees to Wingstop on the sales it generates. Wingstop currently has more than 1,700 locations with the vast majority in the United States.
Source Fool.com