Analyst Andrew Charles from TD Cowen maintained a Buy rating on Wingstop (WING – Research Report) and increased the price target to $310.00 from $265.00.
Andrew Charles has given his Buy rating due to a combination of factors that suggest a positive outlook for Wingstop. The management has set more realistic goals for 2025 same-store sales and provided detailed expectations for the second quarter, which helps mitigate the risks associated with a bearish perspective. This strategic move is expected to shift the focus towards achieving the implied guidance for the second half of 2025, which does not rely on macroeconomic improvements or the impact of smart kitchens, but does require a seasonal increase beyond pre-COVID-19 trends.
Furthermore, the management has adjusted their 2025 same-store sales expectations to align with their guidance, showing a proactive approach to market conditions. Despite some softness in areas with a high concentration of Hispanic consumers, this trend has historically been temporary, as seen in previous years. Additionally, the management has reported no significant increase in the cannibalization impact on same-store sales, maintaining a stable performance metric. These factors collectively contribute to a positive outlook for Wingstop, justifying the Buy rating.
In another report released today, Stephens also maintained a Buy rating on the stock with a $385.00 price target.