Wingstop Acquired for $400M by Sixth Street

Wingstop UK, the British franchise of the popular American chicken wing chain, has been acquired by private equity firm Sixth Street in a deal reportedly worth £400 million. Sixth Street’s investment marks a significant milestone for the brand, which has grown rapidly in the UK since its 2018 launch. The acquisition aims to fuel further expansion across the UK and Europe.

Wingstop UK operates under Lemon Pepper Holdings, which opened its first UK restaurant in London's Shaftesbury Avenue and has since expanded to multiple locations. The chain gained popularity for its bold flavors and commitment to high-quality ingredients. Wingstop UK’s sales soared by 70% in 2023, demonstrating its strong market position in the fast-casual dining sector. This growth aligns with global trends, as Wingstop has consistently proven its appeal in international markets.

Sixth Street’s acquisition underscores its confidence in the scalability of Wingstop's UK operations. With deep experience in consumer-focused investments, Sixth Street plans to enhance the chain’s operational capabilities and support its ambitious growth strategy. Commenting on the acquisition, the firm's spokesperson highlighted Wingstop's ability to deliver both "outstanding customer experiences" and impressive financial performance.

The deal also signals a broader trend of private equity interest in the thriving fast-casual dining industry, especially brands with proven scalability. Sixth Street's move reflects its strategy to capitalise on the growing consumer demand for premium, quick-service dining options.

Co-founder Herman Sahota shared that the team approached Wingstop's American division through a cold email, despite having no prior experience running a restaurant. “We identified a gap for a fast-casual player in the UK, similar to Five Guys in the burger space,” he explained. Wingstop opened 42 locations in the financial year ending March 31 and is on track to operate 57 UK sites by year-end, solidifying its position as the country's fastest-growing restaurant brand.

Wingstop UK’s management, under Lemon Pepper Holdings, has been instrumental in establishing the brand as a household name in the UK. The acquisition by Sixth Street is expected to strengthen its leadership position, enabling further investments in technology, marketing, and operational excellence.

‍