Wingstop's (WING) Hold Rating Reiterated at TD Cowen

Key Points

• TD Cowen reiterated a Hold rating on Wingstop with a $175 price target (about a 4.3% upside), while the Street consensus is a "Moderate Buy" with an average target of $302.62.
• Wingstop beat Q1 estimates with $1.18 EPS (vs. $1.04) and revenue up ~7.4% year-over-year, announced a dividend and expanded buybacks, and added 97 net new restaurants (~17% unit growth).
• Despite the beat, the stock was down ~3% to $167.74, trading below its 50- and 200-day moving averages after management flagged softer comparable-sales trends and investors noted valuation/ROE concerns.

Wingstop (NASDAQ:WING - Get Free Report)'s stock had its "hold" rating reiterated by analysts at TD Cowen in a research note issued on Wednesday,Benzinga reports. They presently have a $175.00 price target on the restaurant operator's stock. TD Cowen's price objective would indicate a potential upside of 4.33% from the company's current price.

WING has been the topic of a number of other research reports. The Goldman Sachs Group reissued a "buy" rating and set a $335.00 price objective on shares of Wingstop in a report on Wednesday, February 18th. Stephens reissued an "overweight" rating and set a $375.00 price objective on shares of Wingstop in a report on Thursday, February 19th. Mizuho reduced their target price on shares of Wingstop from $320.00 to $310.00 and set an "outperform" rating on the stock in a research note on Friday, January 9th. Wolfe Research began coverage on shares of Wingstop in a research note on Monday, March 9th. They issued an "outperform" rating and a $320.00 target price on the stock. Finally, Raymond James Financial raised shares of Wingstop from an "outperform" rating to a "strong-buy" rating and reduced their target price for the company from $325.00 to $240.00 in a research note on Thursday, April 2nd. Three investment analysts have rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Wingstop currently has an average rating of "Moderate Buy" and a consensus price target of $302.62.

Wingstop Stock Down 3.0%

NASDAQ:WING traded down $5.23 during mid-day trading on Wednesday, reaching $167.74. 3,216,109 shares of the company were exchanged, compared to its average volume of 1,063,842. Wingstop has a 12 month low of $142.24 and a 12 month high of $388.14. The company has a fifty day moving average of $199.93 and a 200 day moving average of $234.69. The stock has a market cap of $4.58 billion, a PE ratio of 26.92, a PEG ratio of 1.98 and a beta of 2.03.

Wingstop (NASDAQ:WING - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The restaurant operator reported $1.18 EPS for the quarter, topping analysts' consensus estimates of $1.04 by $0.14. Wingstop had a net margin of 25.01% and a negative return on equity of 16.12%. During the same quarter last year, the company posted $0.99 EPS. The company's revenue was up 7.4% compared to the same quarter last year. On average, equities research analysts anticipate that Wingstop will post 4.52 EPS for the current fiscal year.

Insider Buying and Selling

In other Wingstop news, Director Kilandigalu Madati sold 2,700 shares of the firm's stock in a transaction that occurred on Wednesday, February 25th. The shares were sold at an average price of $260.73, for a total transaction of $703,971.00. Following the sale, the director directly owned 2,583 shares in the company, valued at approximately $673,465.59. This trade represents a 51.11% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Wesley S. Mcdonald sold 566 shares of Wingstop stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $250.00, for a total transaction of $141,500.00. Following the completion of the transaction, the director directly owned 4,375 shares in the company, valued at approximately $1,093,750. The trade was a 11.46% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 0.53% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the stock. Vident Advisory LLC lifted its stake in Wingstop by 3.9% in the fourth quarter. Vident Advisory LLC now owns 959 shares of the restaurant operator's stock valued at $229,000 after buying an additional 36 shares in the last quarter. Allworth Financial LP lifted its stake in Wingstop by 17.3% in the third quarter. Allworth Financial LP now owns 265 shares of the restaurant operator's stock valued at $67,000 after buying an additional 39 shares in the last quarter. YANKCOM Partnership lifted its stake in Wingstop by 10.1% in the fourth quarter. YANKCOM Partnership now owns 426 shares of the restaurant operator's stock valued at $102,000 after buying an additional 39 shares in the last quarter. Quadrant Capital Group LLC lifted its stake in Wingstop by 1.7% in the fourth quarter. Quadrant Capital Group LLC now owns 2,628 shares of the restaurant operator's stock valued at $627,000 after buying an additional 45 shares in the last quarter. Finally, Ballentine Partners LLC lifted its stake in Wingstop by 5.0% in the third quarter. Ballentine Partners LLC now owns 985 shares of the restaurant operator's stock valued at $248,000 after buying an additional 47 shares in the last quarter.

Key Wingstop News

Here are the key news stories impacting Wingstop this week:

• Positive Sentiment: Q1 earnings beat and margin strength — Wingstop reported EPS of $1.18, topping consensus, with revenue up ~7.4% year-over-year and double-digit adjusted EBITDA growth, showing profitability resilience. Press Release
• Positive Sentiment: Shareholder returns boosted — the company declared a dividend and expanded its share repurchase program, which supports cash-return expectations for investors. TipRanks Article
• Positive Sentiment: Strong unit expansion and system-wide sales — 97 net new openings in Q1 (≈17% unit growth) and $1.4B in system-wide sales underpin longer-term growth runway from new restaurants. Press Release
• Neutral Sentiment: Notable investor interest — hedge fund Lone Pine (Stephen Mandel) remains bullish/positioned in Wingstop, which may provide a vote of confidence but doesn’t guarantee near-term price support. InsiderMonkey Article
• Neutral Sentiment: Brand initiatives (new flavors/marketing) continue to engage customers — positive for unit-level traffic but impact on comps and margins is incremental. MSN Article
• Negative Sentiment: Same-store sales weakness and cautious outlook — management flagged softer comparable-sales trends and gave guidance that investors interpreted as conservative, which was the main driver of the intra-day sell-off. Benzinga Article
• Negative Sentiment: Technical/valuation and some metric caution — the stock is trading well below its 50- and 200-day moving averages and the company shows a negative ROE noted by some reports, which can amplify downside in a risk-off reaction. MarketBeat Snapshot

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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