Private Equity, Hip Hop And Sports All Bet Big On Wingstop
By Tiyana Jordan
- Minority owned private equity firm Corlex Capital is acquiring 10 Wingstop locations
- In 2019, Wingstop system wide sales increased 21.9% to $372M
If there is anything synonymous with making “bread” it is investments made by Black celebrities across sports and music, into very popular food franchises like Wingstop (WING +0.68%). So much so that minority owned private equity and consulting firm, Corlex Capital is partnering with Prospect Capital Restaurants to acquire 10 Wingstop locations. These poultry profits are far from paltry, with the average Wingstop location bringing in $1.2 million annually, according to Forbes.
Why This Matters: We all know the hip hop mogul Rick Ross loves his lemon pepper wings and is an owner of at least 10 Wingstop locations. Also, NFL All-Pro cornerback Richard Sherman is a chicken boss, with two Wingstop franchises that he opened in Seattle. Even former NBA player, Trevor Ariza opened a Buffalo Wild Wings restaurant in Los Angeles.
A major reason for the success of restaurant chains like Wingstop have to do with the experiences offered that fall between a traditional full-service restaurant, and a familiar fast food establishment that appeals to everyday people, hip-hop artists and athletes alike. Not to mention, this is not a “chicken” move, either by Corlex Capital because sales of the fast casual chain have been skyrocketing. Wingstop reported that system wide sales increased 21.9% to $372 million in 2019. Additionally, total revenue increased by $48.6 million during the company’s fiscal Q2.
If you can prove liquid assets of at least $600,000, you too could own a Wingstop
Perhaps this is why PE firms are so eager to spread their wings and invest in such a lucrative and appealing restaurant system. Corlex Capital and Prospect Capital Restaurants acquisition will help to scale profits and improve health and safety concerns, especially since the onset COVID.
What’s Next: If you can prove liquid assets of at least $600,000, you too could own a Wingstop. So, the next time you’re enjoying a plate full of wings, be reminded it’s worth millions and some of your favorite Black celebrities are helping these brands soar!
CBx Vibe: “Blk & Wht” Rick Ross
Tiyana Jordan is an author and coworking space business owner in New Orleans, who strategically reads from the bottom to the top (to intake the main points first) and really enjoys business development and branding.