- Wingstop's chicken sandwich is attracting Gen Z and millennial diners who are wealthier and less likely to have children.
- Execs say its chicken sandwich customers generally visit more often and spend more per order.
Wingstop execs say that the chain's chicken sandwich is attracting new diners who are wealthier, younger, and less likely to have children than its usual customers.
They also come back to Wingstop more often and spend more per order.
CEO Michael Skipworth told investors at the company's earnings call on Wednesday that the diners who come in for Wingstop's chicken sandwiches "look a little bit different" to its core customers, without specifying who its core customers are.
"They are a little bit higher income, they are less likely to have children at home, they're demonstrating a higher frequency, coming back a little bit quicker after that initial visit," Skipworth said.
He added that they are also more likely to engage with the brand digitally, place bigger average orders, and order boneless wings, which now make up nearly half of Wingstop's sales.
Skipworth told investors at the company's previous earnings call in November that these customers tend to be Gen Zers or millennials. Fast-food execs previously told Business Insider that Gen Z diners generally crave chicken more than older customers.
Skipworth told investors Wednesday that the last three months of 2023 were one of Wingstop's higher-ever periods for acquiring new customers. "A lot of these new guests that are coming in are coming in through the chicken sandwich occasion initially," he said.
About half of the new customers who come to Wingstop for a chicken sandwich only purchase the sandwich on their first visit, but the "majority" try other dishes on their second visit to the chain, Skipworth said in November.
Wingstop debuted its chicken sandwich in August 2022.
Prices vary by location. BI searched various US locations on its website and found that a sandwich generally cost between $5.79 and $5.99. It can also be made into a combo deal by adding fries and a drink.
Wingstop was late to join the so-called chicken sandwich wars, which kicked off when Popeyes launched its spicy chicken sandwich in 2019 to compete with Chick-fil-A.
Popeyes' sandwich generated a huge social-media buzz and sold out just two weeks after launch. The chain sold 250 million of the sandwiches within its first year of launch, it told BI.
Rivals including McDonald's and Wendy's have also been bolstering up their chicken sandwich offerings in response.
Boneless wing sales are soaring at Wingstop
Wingstop execs didn't say what proportion of its sales came from the chicken sandwiches. But the chain did say that sales of boneless wings — actually made from chicken breasts — hit a record high of 47% of its sales mix in the fourth quarter.
Skipworth said that when other fast-food chains promote chicken wings, it boosts sales for Wingstop.
"If consumers are aware of Wingstop and someone makes wings top of mind, there is really not a decision tree, they go to Wingstop versus that other brand," he said.
Chicken tender sales were much lower, making up just a low-single-digit percent of sales, CFO Alex Kaleida said. "Even our core guests aren't even aware at times that chicken tenders is a menu option," he said.
Chains including McDonald's, Shake Shack, and Taco Bell have told customers to expect modest menu price increases in 2024 as inflation cools.
Wingstop also told investors that it was only planning small price increases of around 1% or 2%, though it warned diners in California to expect bigger price hikes under new legislation that will put the state's minimum wage for fast-food workers up to $20 an hour from April.