Looking For Sequential Improvement in 2H With SSS Inflection Not Too Far Out

Research evidence excerpt

Looking For Sequential Improvement in 2H With SSS Inflection Not Too Far Out

n. Lower-end consumer weakness has also

been exacerbated by elevated energy/gas prices, which have recently moderated (albeit muddied Multiple drivers/opptys to return SSS to LSD%

by ongoing conflict in the Middle East). Dynamics around trade-down including into grocery have Timeframe

also weighed and likely more so for WING given chicken feature/promo activity relative to beef, LoyaltySmart Kitchenprogram NearNear // mediummedium termterm

although this gap has narrowed more recently. Page 6 3P delivery order times Near / medium term

Menu innovation & bundled value Near / medium term

Chicken sandwich occasions Medium / longer term

Skepticism around development somewhat overblown. Investor debate around Chicken category Tenders occasions Medium / longer term

saturation, cannibalization, and demand for Fast Casual brands have prompted the question about LunchMarketingdaypart& social MediumMedium // longerlonger termterm

whether development at WING needs to moderate to a 'healthier' level to support the near term Core/heavy QSR guest acquisition Medium / longer term

traffic recovery. We think these concerns are somewhat overblown considering franchisee store . & frequency

App downloads improved for the first time

level profitability, the existing pipeline of commitments, in the context of the domestic white space since '24 following the launch of loyalty

opportunity still. Page 7 100%90%

80%

60%Risk/reward increasingly skewed to the upside. While near-term SSS and traffic trends have 70% 50%

lagged, we think underlying fundamentals over the medium to longer term warrant a premium 40%30%

10%valuation closer in line to the historical average given low to mid-teens% unit growth (2.6x asset- 20% 0%