William Blair analyst Sharon Zackfia has reiterated their bullish stance on WING stock, giving a Buy rating today.
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Sharon Zackfia’s rating is based on Wingstop’s strong financial performance and growth prospects. The company reported second-quarter results that exceeded expectations in several key areas, including revenue, comparable sales, adjusted EBITDA, and earnings per share. This performance was bolstered by a significant number of new store openings, which contributed to a robust systemwide unit growth.
Additionally, Wingstop’s ability to maintain a positive outlook for domestic comparable sales for the full year, along with an increase in expected global unit growth, underscores the brand’s momentum. The expansion of high-margin franchised revenue and improved company-owned unit-level margins also played a crucial role in enhancing profitability, leading to a notable increase in adjusted EBITDA margin. These factors collectively support the Buy rating, as they indicate a strong potential for continued growth and financial stability.
In another report released today, Barclays also maintained a Buy rating on the stock with a $410.00 price target.
Based on the recent corporate insider activity of 50 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of WING in relation to earlier this year.