This 1 Stock Is the Real MVP of The Big Game
With Americans set to consume over 1.42 billion wings on Super Bowl Sunday, there's no better time to take a look at Wingstop (NASDAQ: WING) -- the industry leader in chicken wings.
Wingstop went public in 2015, and its stock has gone up about 400% since -- outperforming the S&P 500 by more than 270 percentage points. The company operates under a franchise business model, which generates the majority of its revenue. First, each franchisee must pay a one-time $20,000 franchise fee to open a Wingstop. Then the franchisee is expected to pay ongoing royalty and advertising fees that equate to 5% to 6% of gross sales net of discounts and 5% of gross sales, respectively. With that in mind, it greatly benefits Wingstop to rapidly expand its footprint. Over the past two years, Wingstop has opened a net 288 stores, representing 20% growth.
Better yet, Wingstop has been able to avoid growing pains. The company has an envious 18-year streak of same-store sales growth. Same-store sales are a key stat for restaurants to determine how well their existing locations are performing. And chicken wings are more popular than ever -- a good sign for the wing chain's staying power.
Source Fool.com
