Domino's Pizza is among the leading candidates to acquire Wingstop's UK franchise, a deal valued at around £400 million, the Financial Times reports. In addition to the pizza chain, investment group Sixth Street, which already owns a Wingstop franchisee in the US, and private equity funds KKR and TSG Consumer Partners have also expressed interest.
Wingstop, based in Texas, is currently operated in the UK by Lemon Pepper Holdings, which has been expanding since 2018. With 17 new openings in 2023, the chain has reached 56 stores spread across high streets, retail parks and shopping centres. The American group, listed in New York since 2015, has over 2.000 branches in the United States and holds a minority stake in Lemon Pepper. The brand's marketing strategy focuses on collaborations with fashion and sports companies, such as JD Sports and Gymshark, and on the use of social media, particularly TikTok, to attract Generation Z.
The Wingstop acquisition would be the second brand for Domino's UK, which is looking to diversify beyond pizza by targeting brands with high growth potential and synergies with its existing operations. Wingstop has engaged Goldman Sachs to manage the sale process.
