Wingstop price target raised to $400 from $330 at Bernstein

Bernstein raised the firm’s price target on Wingstop (WING) to $400 from $330 and keeps an Outperform rating on the shares. The firm notes Wingstop’s Q2 earnings beat consensus on SSSG, EBITDA and unit growth. On the back of the strong demand for units, Wingstop increased the NUG guidance for the second consecutive quarter. Despite the continued consumer uncertainty and no changes in the demand compression from Hispanic consumers, Bernstein views the implied guidance of moderately negative Q3 comparable sales as prudent in light of the success of the Smart Kitchen implementations that generated a +5% lift in sales in the stores that have rolled it out, with no advertising support.