US investment firm Sixth Street has acquired the UK Wingstop franchise, aiming to further expand the brand.
Lemon Pepper Holdings, Wingstop’s master franchisee in the UK and Ireland, has reportedly sold the business for more than £400m, beating previous estimates.
Wingstop debuted in the UK with its first London location in 2018 and has since expanded to 57 locations, creating over 2,500 jobs. This growth is in line with the rise in popularity of fried chicken, with other US chains including Popeyes and Dave’s Hot Chicken also planning major expansions in the UK.
Wingstop aims to expand its presence in the UK to 200 restaurants over the next five years, with turnover forecast to exceed £150m by the end of this year. The chain reported a significant financial turnaround, making a pre-tax profit of £3.5m for the year ending March 2024, compared to a loss of £2m the previous year.
Chris Sherriff, Managing Director of Wingstop UK: “This is an important step in our journey to build the leading fast casual restaurant brand in the UK and Ireland. 2025 is set to be another landmark year and we remain focused on sustainable growth and the agility to seize the right opportunities as they arise.
Sixth Street, which now owns the UK Wingstop franchise, also owns the Wingstop franchise Far West Services in the US. The investment company has an extensive portfolio and has backed well-known brands such as Airbnb, Spotify and the football club Real Madrid.
Kayvan Heravi, Sixth Street’s Chief Consumer Officer: “We believe the opportunity for the brand globally, and particularly in the UK and Ireland, is just beginning.”
According to the Sunday Times, the founders of Lemon Pepper Holdings – Tom Grogan, Herman Sahota and Saul Lewin – will retain a minority stake in the company following the sale to Sixth Street.
Founded in Dallas, Texas in 1994, Wingstop has grown into a global brand that operates and franchises more than 1,500 locations worldwide.
Goldman Sachs International acted as sole financial advisor to Wingstop UK, with additional support from DLA Piper, KPMG, Jamieson, OC&C and HNH.
Sixth Street was advised by North Point, Lazard & Co., Cleary Gottlieb Steen & Hamilton LLP and PwC.
