Wingstop Inc. (NASDAQ:WING) to Issue Quarterly Dividend of $0.33

Key Points

• Wingstop declared a quarterly dividend of $0.33 per share, payable December 4 to shareholders of record on November 13. The dividend equates to $1.32 annually and a 1.0% yield.
• The dividend appears well covered, with a current payout ratio of 26.8% and an expected future payout ratio of about 25.0%; Wingstop has also increased its dividend for seven consecutive years.
• Recent quarterly earnings beat analyst expectations at $1.08 per share versus $1.02, while revenue rose 5.4% year over year but fell short of estimates. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $224.68.

Wingstop Inc. (NASDAQ:WING - Get Free Report) declared a quarterly dividend on Tuesday, October 27th. Stockholders of record on Friday, November 13th will be given a dividend of $0.33 per share by the restaurant operator on Friday, December 4th. This represents a $1.32 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Friday, November 13th.

Wingstop has decreased its dividend by an average of 0.3% annually over the last three years and has raised its dividend annually for the last 7 consecutive years. Wingstop has a payout ratio of 26.8% indicating that its dividend is sufficiently covered by earnings. Analysts expect Wingstop to earn $5.28 per share next year, which means the company should continue to be able to cover its $1.32 annual dividend with an expected future payout ratio of 25.0%.

Wingstop Stock Up 12.2%

Shares of NASDAQ:WING opened at $138.57 on Thursday. Wingstop has a fifty-two week low of $95.82 and a fifty-two week high of $302.80. The firm has a 50-day simple moving average of $113.87 and a 200 day simple moving average of $165.89. The company has a market cap of $3.77 billion, a PE ratio of 32.91, a P/E/G ratio of 1.44 and a beta of 1.81.

Wingstop (NASDAQ:WING - Get Free Report) last released its quarterly earnings data on Wednesday, October 28th. The restaurant operator reported $1.08 earnings per share for the quarter, topping the consensus estimate of $1.02 by $0.06. The firm had revenue of $185.13 million for the quarter, compared to analyst estimates of $192.89 million. Wingstop had a net margin of 16.15% and a negative return on equity of 16.31%. Wingstop's quarterly revenue was up 5.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.09 earnings per share. As a group, research analysts forecast that Wingstop will post 4.45 EPS for the current fiscal year.

Analysts Set New Price Targets

WING has been the topic of several recent research reports. Royal Bank Of Canada cut their price target on Wingstop from $200.00 to $150.00 and set an "outperform" rating on the stock in a report on Thursday, September 17th. Stephens restated an "overweight" rating and set a $200.00 price objective on shares of Wingstop in a research note on Thursday, July 30th. Robert W. Baird dropped their target price on Wingstop from $160.00 to $150.00 and set an "outperform" rating on the stock in a research report on Thursday, October 22nd. BTIG Research cut their target price on Wingstop from $305.00 to $265.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. Finally, UBS Group restated a "neutral" rating and set a $140.00 price target on shares of Wingstop in a research report on Thursday, October 15th. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Wingstop has a consensus rating of "Moderate Buy" and an average price target of $224.68.

Wingstop Company Profile

Wingstop Inc is a franchised restaurant company specializing in cooked-to-order chicken wings and related menu items. Its offerings include classic and boneless wings prepared with a range of flavors, along with chicken sandwiches, tenders, fries, seasoned fries, dips, sides and beverages. The company emphasizes made-to-order food, a digital ordering experience and a menu centered on customizable chicken meals.

Founded in 1994 in Garland, Texas, Wingstop has expanded from a single restaurant into a global brand operated primarily through franchised locations.

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