Analyst Todd Brooks of Benchmark Co. maintained a Buy rating on Wingstop (WING – Research Report), retaining the price target of $325.00.
Todd Brooks has given his Buy rating due to a combination of factors that highlight Wingstop’s potential for growth and operational improvements. The company reported a solid first quarter with revenue increasing by 17% year-over-year, and despite a slight shortfall in same-store sales, Wingstop exceeded expectations in adjusted earnings per share and adjusted EBITDA. These financial results, combined with management’s decision to raise the unit growth outlook to 16%-17% for the year, underscore the company’s robust expansion strategy.
Additionally, the introduction of the Wingstop Smart Kitchen is expected to significantly enhance operational efficiency by reducing ticket times, which should improve customer satisfaction and drive demand. The successful relaunch of the chicken tender platform has also been positively received by consumers, further strengthening Wingstop’s market position. With these strategic initiatives and the upcoming loyalty program, Todd Brooks believes Wingstop is well-positioned to leverage its scale for future growth, justifying the Buy rating and the $325 price target.
In another report released yesterday, Jefferies also reiterated a Buy rating on the stock with a $300.00 price target.