Wingstop (WING) IPO Prices at $19, Above Range

Wingstop (NASDAQ: WING) priced its initial public offering of 5,800,000 shares of its common stock at a price to the public of $19 per share, above the $16-$18 range which was recently raised. Shares are expected to begin trading today on The Nasdaq Global Select Market under the symbol "WING". The initial opening time is expected at approximately 10:25AM ET, with quotations starting at at 10:10AM ET.

Wingstop is offering 2,150,000 shares of common stock and selling stockholders are offering 3,650,000 shares of common stock. The underwriters for the offering will also have a 30-day option to purchase up to an additional 870,000 shares of Wingstop common stock from one of the selling stockholders at the initial public offering price, less the underwriting discount.

Morgan Stanley, Jefferies, and Baird are acting as lead joint book-running managers for the proposed offering. Barclays, Goldman, Sachs & Co., and Wells Fargo Securities are acting as book-running managers for the proposed offering.

Founded in 1994 and headquartered in Dallas, Texas, Wingstop has more than 745 restaurants open across the United States, Mexico, Russia, Singapore, the Philippines, Indonesia and United Arab Emirates. Wingstop specializes in cooked-to-order, hand-sauced and tossed chicken wings offered in 11 proprietary flavors, which range from extremely hot to mild: Atomic, Mango Habanero, Cajun, Original Hot, Louisiana Rub, Mild, Hickory Smoked BBQ, Lemon Pepper, Garlic Parmesan Hawaiian and Teriyaki. Wingstop's bone-in and boneless chicken wings can be paired with a variety of house-made sides including Wingstop's hand-cut, freshly-prepared seasoned fries.

Financial highlights: Domestic same store sales increased 13.8% in 2012, 9.9% in 2013 and 12.5% in 2014, representing three year cumulative domestic same store sales growth of 36.2%, driven primarily by an increase in transactions, which demonstrates the growing awareness and popularity of our brand; Our domestic same store sales growth is even more meaningful given that we have had 11 consecutive years of positive same store sales; From 2012 to 2014, our system-wide sales increased from $457 million to $679 million, which represents growth of 48.4% over the period; Total revenue increased from $51.6 million in 2012, to $59.0 million in 2013, to $67.4 million in 2014, our Adjusted EBITDA increased from $15.6 million, to $19.5 million, to $24.4 million, respectively, and our net income grew from $3.6 million, to $7.5 million, to $9.0 million, respectively; and From 2012 to 2014, our Adjusted EBITDA margin increased from 30.3% in 2012, to 33.0% in 2013, to 36.1% in 2014, while our capital expenditures were 3.1%, 3.6% and 2.2% of revenue, respectively, leading to high cash flow conversion.

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