UK- Wingstop UK, the fastest-growing QSR chain in the UK, has hired banking and asset management firm Goldman Sachs to exacerbate a sale after six years of rapid growth.
The QSR chicken chain’s sale was initiated following expressions of interest from several potential buyers to its parent company, Lemon Pepper.
Goldman Sachs has already begun issuing information about the company and the sale to potential buyers. However, the value of the chain and the desired terms of the potential sale have not been made public.
The sale is considered at a time when Wingstop UK is set to open its 50th outlet. Earlier in the year, the company revealed it aims to open 57 outlets across the UK by the end of 2024, citing substantial growth potential in a market filled with new entrants and competitors.
According to an article published in Sky News, the sale was inspired by a need to achieve significant growth through a high capitalization-yielding purchase. The company also seeks a buyer with an expansive and efficient logistical and supply chain network that would enhance operations at a larger scale.
Wingstop’s owners have expressed a desire to ultimately open between 400 and 500 outlets across the UK within the next 5 years.
Market analysts have praised the decision to pursue the sale, saying such investments and acquisitions are necessary in a highly competitive market.
Wingstop has gained a significant customer base in the UK, positioning itself as a premium alternative to KFC. The company also actively competes with Popeyes and Nando’s, which have also rapidly accelerated their operations in the UK in recent months.
Chick-fil-A, another QSR chain and alternative to KFC, has also announced plans to enter the UK market, revealing plans to enter the UK market in 2025 with its first store.
Established in the UK in 2018, Wingstop is the fastest-growing QSR chain in Britain, with a market capitalization of £8.6 billion (US$11 billion) as of August 2024. The company’s share price has more than doubled within the past year.
The decision to pursue the sale is a reflection of a very active QSR market in the UK. Analysts expect a continuation of mergers, acquisitions and new entrants into the market.
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