In a report released today, Todd Brooks from Benchmark Co. maintained a Buy rating on Wingstop (WING – Research Report), with a price target of $325.00.
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Todd Brooks has given his Buy rating due to a combination of factors that demonstrate Wingstop’s strong positioning and potential for growth. Despite some near-term concerns about same-store sales (SSS) deceleration, the company has shown resilience with its impressive financial performance in the fourth quarter of 2024. Revenue increased by 27% year-over-year, and both earnings per share and adjusted EBITDA exceeded market expectations.
Wingstop’s strategic investments in technology and infrastructure are key drivers for Brooks’s optimism. The company is expanding its proprietary technologies, with a new AI-enabled kitchen operating platform set to roll out in 2025. Additionally, Wingstop’s successful Whole Bird sourcing strategy significantly cuts food costs, enhancing franchisee profitability and driving unit growth. Furthermore, the company’s robust advertising and franchise development plans underscore its strong competitive edge and potential for continued scale advantages.
In another report released today, Wedbush also maintained a Buy rating on the stock with a $355.00 price target.
Based on the recent corporate insider activity of 48 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.