The acquisition of the British Wingstop franchise is imminent: Domino’s Pizza and several notable private equity groups, including KKR and TSG Consumer Partners, have expressed interest in the deal, which could value Wingstop at around 400 million pounds. The US investment group Sixth Street, which already owns the American Wingstop franchise Far West Services, is also among the potential buyers, according to insiders.

For Domino's Pizza, the UK franchise partner of the US pizza chain, Wingstop would only be the second brand in the portfolio. Already a year ago, the company listed on the FTSE-250 announced its intention to seek a brand, in addition to growth in the pizza business, that offers synergies with existing assets and potential for further growth.

Goldman Sachs has been tasked with conducting the sales process by Wingstop UK. Wingstop, known for its Buffalo Wings, has been rapidly expanding in the UK since 2018. The master franchisee Lemon Pepper Holdings, founded by entrepreneurs Tom Grogan, Saul Lewin, and Herman Sahota, currently operates 56 locations and plans further openings. The US parent company Wingstop, listed on the New York Stock Exchange since 2015, holds a minority stake in Lemon Pepper.

The attractiveness of the British fast-food market is increasing as consumer demand rebounds post-pandemic. Private equity investors are increasingly focusing on the segment, as recent transactions show: Apollo Global Management acquired the Restaurant Group, which includes Wagamama, for £506 million in October 2023. TDR Capital acquired a majority stake in Popeyes UK earlier this year.

Wingstop also benefits from clever marketing targeting GenZ, such as collaborations with JD Sports and Gymshark and a strong presence on TikTok. The popularity of shows like Hot Ones, where celebrities eat spicy chicken wings, has further fueled the boom around chicken wings.

Domino's, KKR, Sixth Street, TSG and Wingstop declined to comment. According to industry observers, a decision could be made shortly.