Wingstop's (WING) "Overweight" Rating Reiterated at Stephens

Key Points

• Stephens reaffirmed its “Overweight” rating on Wingstop and set a $200 price target, implying approximately 43% upside from the prior close. Analysts overall rate the stock a “Moderate Buy,” with a consensus target of $253.70.
• Wingstop reported quarterly adjusted EPS of $1.18, beating the $1.02 consensus estimate and rising from $1.00 a year earlier. Revenue increased 6.5% year over year to $185.56 million but fell short of expectations.
• The stock opened at $139.45, while the company continued expanding its restaurant base and reported strong unit growth. Analysts expect Wingstop to generate $4.55 in EPS for the current fiscal year.

Wingstop (NASDAQ:WING - Get Free Report)'s stock had its "overweight" rating reaffirmed by analysts at Stephens in a report released on Thursday,Benzinga reports. They currently have a $200.00 target price on the restaurant operator's stock. Stephens' price objective points to a potential upside of 43.42% from the company's previous close.

A number of other equities research analysts also recently issued reports on the company. Raymond James Financial raised Wingstop from an "outperform" rating to a "strong-buy" rating and reduced their price target for the stock from $325.00 to $240.00 in a research report on Thursday, April 2nd. Morgan Stanley reiterated an "overweight" rating and set a $255.00 target price on shares of Wingstop in a research report on Thursday, April 30th. Benchmark reduced their target price on Wingstop from $320.00 to $285.00 and set a "buy" rating on the stock in a report on Monday, April 20th. Wall Street Zen upgraded Wingstop from a "sell" rating to a "hold" rating in a research report on Tuesday, July 14th. Finally, UBS Group reaffirmed a "neutral" rating on shares of Wingstop in a research note on Tuesday, July 14th. One investment analyst has rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Wingstop presently has an average rating of "Moderate Buy" and a consensus price target of $253.70.

Wingstop Stock Up 3.4%

Shares of Wingstop stock opened at $139.45 on Thursday. The stock has a market capitalization of $3.80 billion, a price-to-earnings ratio of 34.69, a price-to-earnings-growth ratio of 1.62 and a beta of 1.79. Wingstop has a twelve month low of $116.35 and a twelve month high of $381.45. The company has a 50-day simple moving average of $152.29 and a two-hundred day simple moving average of $189.66.

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

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Vident Advisory LLC lifted its holdings in shares of Wingstop by 3.9% in the fourth quarter. Vident Advisory LLC now owns 959 shares of the restaurant operator's stock worth $229,000 after acquiring an additional 36 shares during the last quarter. YANKCOM Partnership increased its position in Wingstop by 10.1% during the 4th quarter. YANKCOM Partnership now owns 426 shares of the restaurant operator's stock worth $102,000 after purchasing an additional 39 shares in the last quarter. Quadrant Capital Group LLC increased its position in Wingstop by 1.7% during the 4th quarter. Quadrant Capital Group LLC now owns 2,628 shares of the restaurant operator's stock worth $627,000 after purchasing an additional 45 shares in the last quarter. Oregon Public Employees Retirement Fund lifted its stake in Wingstop by 1.1% in the 1st quarter. Oregon Public Employees Retirement Fund now owns 5,672 shares of the restaurant operator's stock valued at $879,000 after purchasing an additional 59 shares during the last quarter. Finally, SBI Securities Co. Ltd. lifted its stake in Wingstop by 76.9% in the 4th quarter. SBI Securities Co. Ltd. now owns 138 shares of the restaurant operator's stock valued at $33,000 after purchasing an additional 60 shares during the last quarter.

Wingstop News Summary

Here are the key news stories impacting Wingstop this week:

• Positive Sentiment: Earnings exceeded expectations: Wingstop reported fiscal second-quarter adjusted earnings of $1.18 per share, up from $1.00 a year earlier and above the $1.02 analyst consensus. Wingstop Tops Q2 Earnings Estimates
• Positive Sentiment: Expansion remained strong: The company opened 102 net new restaurants during the quarter, driving 16% unit growth. System-wide sales reached approximately $1.4 billion, supporting Wingstop’s long-term growth strategy. Wingstop Fiscal Second-Quarter Financial Results
• Positive Sentiment: Dividend increased: Wingstop declared a quarterly dividend of $0.33 per share, a 10% increase from $0.30. Investors of record on August 15 will receive the payment on September 5, providing a modestly stronger shareholder return.
• Positive Sentiment: Promotional visibility may support traffic: National Chicken Wing Day promotions, including free wings and a $1 million prize campaign, are increasing consumer awareness and could help attract customers to Wingstop restaurants and its digital channels. Wingstop National Wing Day Promotion

Wingstop Company Profile

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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