Bank of America Securities analyst Sara Senatore has reiterated their bullish stance on WING stock, giving a Buy rating today.
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Sara Senatore’s rating is based on Wingstop’s strong performance in several key areas. The company reported better-than-expected same-store sales growth (SSSG) and unit expansion, which outpaced market expectations. This growth was partly driven by the successful implementation of Smart Kitchens, which have enhanced throughput and sales growth.
Additionally, Wingstop’s cost control measures contributed to a healthy adjusted EBITDA, surpassing consensus estimates. Despite slightly higher costs of goods sold, the company managed to keep other operating expenses and labor costs below expectations. The positive outlook is further supported by Wingstop’s record new store openings and an increase in the unit growth guidance, indicating attractive returns and robust unit economics. These factors underpin the Buy rating, with an anticipated positive market response.
Senatore covers the Consumer Cyclical sector, focusing on stocks such as Wingstop, Domino’s Pizza, and Restaurant Brands International. According to TipRanks, Senatore has an average return of 5.1% and a 55.16% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $440.00 price target.