Wingstop Inc. (NASDAQ:WING) to Issue Dividend Increase - $0.33 Per Share

Key Points

• Wingstop raised its quarterly dividend 10% to $0.33 per share, payable September 5 to shareholders of record August 15. The annualized dividend is $1.32, yielding approximately 0.9%.
• The company reported quarterly EPS of $1.18, exceeding analysts’ $1.02 estimate, while revenue of $185.56 million fell short of the $190.25 million consensus but increased 6.5% year over year.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $255.19, despite several recent target reductions. Wingstop shares rose 3.4% to $139.45.

Wingstop Inc. (NASDAQ:WING - Get Free Report) announced a quarterly dividend on Wednesday, July 29th. Investors of record on Saturday, August 15th will be given a dividend of 0.33 per share by the restaurant operator on Saturday, September 5th. This represents a c) dividend on an annualized basis and a yield of 0.9%. The ex-dividend date is Friday, August 14th. This is a 10.0% increase from Wingstop's previous quarterly dividend of $0.30.

Wingstop has decreased its dividend payment by an average of 0.3%annually over the last three years and has increased its dividend every year for the last 7 years. Wingstop has a payout ratio of 24.4% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Wingstop to earn $5.52 per share next year, which means the company should continue to be able to cover its $1.20 annual dividend with an expected future payout ratio of 21.7%.

Wingstop Stock Up 3.4%

NASDAQ WING traded up $4.58 on Wednesday, reaching $139.45. The company had a trading volume of 2,648,479 shares, compared to its average volume of 1,158,243. Wingstop has a 52 week low of $116.35 and a 52 week high of $381.45. The stock's 50 day moving average is $152.07 and its 200-day moving average is $190.57. The stock has a market cap of $3.80 billion, a price-to-earnings ratio of 34.69, a PEG ratio of 1.64 and a beta of 1.79.

Wingstop (NASDAQ:WING - Get Free Report) last issued its earnings results on Wednesday, July 29th. The restaurant operator reported $1.18 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.02 by $0.16. The firm had revenue of $185.56 million for the quarter, compared to analysts' expectations of $190.25 million. Wingstop had a negative return on equity of 16.22% and a net margin of 15.77%.The company's revenue was up 6.5% compared to the same quarter last year. During the same quarter last year, the business earned $1.00 earnings per share. As a group, analysts forecast that Wingstop will post 4.55 EPS for the current year.

Analysts Set New Price Targets

A number of brokerages recently weighed in on WING. Stephens set a $200.00 price target on shares of Wingstop in a research report on Tuesday, July 21st. Mizuho decreased their price objective on shares of Wingstop from $280.00 to $240.00 and set an "outperform" rating for the company in a report on Friday, July 24th. Wells Fargo & Company decreased their price objective on shares of Wingstop from $200.00 to $170.00 and set an "overweight" rating for the company in a report on Thursday, July 16th. The Goldman Sachs Group downgraded shares of Wingstop from a "buy" rating to a "neutral" rating and lowered their target price for the company from $290.00 to $190.00 in a research note on Thursday, April 30th. Finally, Citigroup increased their target price on shares of Wingstop from $229.00 to $237.00 and gave the stock a "buy" rating in a report on Wednesday, July 8th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $255.19.

About Wingstop

Wingstop Inc NASDAQ: WING is a fast-casual restaurant chain specializing in chicken wings and related menu items. Founded in 1994 in Garland, Texas, the company has built its brand around bold, chef-inspired wing flavors and a streamlined service model that caters to dine-in, takeout, delivery and catering orders.

The company's core offerings include both bone-in and boneless chicken wings tossed in a variety of proprietary rubs and sauces, such as Original Hot, Lemon Pepper, and Mango Habanero.

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