Wingstop, the quick-service chicken chain that is Britain’s fastest-growing restaurant operator, is putting up a “for sale” sign at its UK business.
Sky News understands that the company, majority-owned by the trio of businessmen who brought it to Britain in 2018, has hired Goldman Sachs to find new owners.
City sources said the sale was initiated in response to unsolicited expressions of interest from potential buyers.
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It is understood that Goldman began disclosing information about Wingstop UK – whose parent company is called Lemon Pepper Holdings – to third parties in recent weeks.
The likely valuation of the deal was unclear this weekend.
The sale is being launched as Wingstop prepares to launch its 50th UK outlet.
The aim is to have 57 locations open by the end of the year, with substantial room for further growth, even in a market saturated by competitors.
Sources said the company believes it could reach between 400 and 500 sites in Britain.
Wingstop has also become one of the largest employers in the sector in the UK, with a workforce of around 2,200 people.
The chain has gained a cult following for its variety of flavors, which include Louisiana Rub and Mango Habanero.
Celebrity fans include rappers Central Cee and Stormzy.
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It is positioned as a premium alternative to KFC and competes with the likes of Nando’s and Popeyes, which has also been accelerating rapidly in recent years.
Chick-fil-A, the third-largest quick-service restaurant (QSR) chain in the US, has also announced plans to enter the British market, saying last year that it would open its first UK site in early 2025.
This announcement may explain the timing of the decision by the owners of Wingstop UK to launch a sale process now, with greater competition likely to maintain pressure on prices at chicken chains.
Celebrity fans include rapper Central Cee. Photo: Wingstop
Wingstop’s first UK site opened in Cambridge Circus in central London in 2018 after Tom Grogan, Saul Lewin and Herman Sahota persuaded the brand’s American owner to sign a deal with them despite their lack of experience in the restaurant industry.
Wingstop’s US-based business is listed in New York and has a market capitalization of around $11 billion (£8.6 billion).
Its shares have more than doubled in the past year.
The American company also owns 20% of the UK operation, having acquired it in 2021, reflecting its belief in its growth prospects.
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Wingstop’s trajectory in Britain belies that of a casual dining sector that has been under pressure since the start of the crisis COVID pandemic.
Chains like Carluccio’s, Prezzo and Pizza Hut have been forced into insolvency or wild restructurings that have resulted in hundreds of facility closures and thousands of layoffs.
Wingstop’s UK operation is also partly owned by an unnamed external investor.
A spokesperson for Wingstop UK declined to comment on Saturday.
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