BTIG analyst Peter Saleh has reiterated their bullish stance on WING stock, giving a Buy rating yesterday.
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Peter Saleh’s rating is based on several key factors that highlight Wingstop’s potential for growth and profitability. One of the primary reasons is the company’s impressive unit growth, which has reached nearly 20%, marking the fastest development pace on record. This expansion is seen as a strong foundation for future system sales and earnings growth, which are crucial for long-term shareholder value.
Additionally, the implementation of the Smart Kitchen initiative is already showing positive results, particularly in company-owned units in the Dallas/Fort Worth area. This innovation is expected to drive significant sales growth as it becomes more widely deployed. Despite some short-term volatility in same-store sales, the long-term outlook remains positive, with easing comparisons and accelerated Smart Kitchen deployment expected to boost performance. These factors, combined with a maintained sales outlook and a robust valuation, underpin Saleh’s Buy rating for Wingstop.
According to TipRanks, Saleh is a 5-star analyst with an average return of 11.5% and a 63.43% success rate. Saleh covers the Consumer Cyclical sector, focusing on stocks such as Wingstop, Darden Restaurants, and McDonald’s.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $440.00 price target.