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Wingstop (WING)
NASDAQ:WING
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Wingstop
(NASDAQ:WING)
Rating:69Neutral
Price Target:
$372.00
▲(20.08% Upside)
Positive Factors
International Business
Newer international markets are posting higher AUV than the US, leading to increased confidence in unit growth for the coming years.
Operational Efficiency
Operating margins were better than consensus, helping Wingstop deliver strong earnings.
Sales Growth
Smart Kitchen implementations generated a +5% lift in sales in the stores that have rolled it out, with no advertising support.
Negative Factors
Consumer Trends
There remain near-term headwinds from the low income consumer and management noted trends in July are similar to 2Q.
Wingstop (WING) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.62B
Dividend Yield0.36%
Average Volume (3M)866.20K
Price to Earnings (P/E)53.9
Beta (1Y)1.20
Revenue Growth22.74%
EPS Growth87.07%
CountryUS
Employees325
SectorConsumer Cyclical
Sector Strength83
IndustryRestaurants
Share Statistics
EPS (TTM)1.00
Shares Outstanding27,923,754
10 Day Avg. Volume740,688
30 Day Avg. Volume866,204
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.24
Enterprise Value/Revenue16.47
Enterprise Value/Gross Profit34.38
Enterprise Value/Ebitda38.33
Forecast
1Y Price Target
$405.50Price Target Upside30.90% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering21
Wingstop Business Overview & Revenue Model
Company DescriptionWingstop Inc., together with its subsidiaries, franchises and operates restaurants under the Wingstop brand name. Its restaurants offer classic wings, boneless wings, and tenders that are cooked-to-order, and hand-sauced-and-tossed in various flavors. As of December 25, 2021, the company had 1,695 franchised restaurants and 36 company-owned restaurants in 44 states and 7 countries worldwide. Wingstop Inc. was founded in 1994 and is headquartered in Addison, Texas.
How the Company Makes MoneyWingstop generates revenue primarily through the sale of food and beverages at its restaurants. The company operates on a franchise model, where a significant portion of its income comes from franchise fees and ongoing royalties paid by franchisees, typically calculated as a percentage of their sales. Wingstop also benefits from company-owned restaurant sales. Additionally, the company engages in partnerships with third-party delivery services to expand its reach, which contributes to sales growth. Wingstop's focus on marketing initiatives, including promotional deals and limited-time offers, further drives customer traffic and increases revenue across its locations.
Wingstop Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue by different business segments, highlighting which areas drive sales and where there might be room for expansion or improvement.
Breaks down revenue by different business segments, highlighting which areas drive sales and where there might be room for expansion or improvement.
Data provided by:
Main Street Data
Main Street DataWingstop Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements, particularly in global expansion and technological advancements with the Smart Kitchen, which are expected to drive future growth. However, challenges such as a decline in same-store sales and consumer uncertainty present hurdles. Despite these challenges, the overall sentiment is optimistic given the strong strategic initiatives and growth potential.Q2-2025 Updates
Positive Updates
Record-Breaking Restaurant Openings
Wingstop opened 129 net new restaurants globally in the second quarter, marking the highest number of restaurant openings in a single quarter in their history, representing a nearly 20% growth rate.
System-Wide Sales Growth
System-wide sales increased by 13.9% to $1.3 billion for the quarter, pushing Wingstop past $5 billion in system-wide sales over the last 12 months.
Wingstop Smart Kitchen Success
The Wingstop Smart Kitchen, implemented in 1,000 restaurants, has resulted in a 40% reduction in average ticket times and increased guest satisfaction scores by 8 points compared to traditional kitchens.
International Expansion
Wingstop continues to expand internationally with successful openings in new markets like Sydney, Australia, and Paris, France, and plans to enter Italy and the Netherlands.
Negative Updates
Decline in Same-Store Sales
Domestic same-store sales declined by 1.9% for the quarter, although this follows significant growth in previous years.
Consumer Uncertainty
There remains uncertainty with consumer behaviors, with concerns about elevated prices and future job prospects affecting spending habits.
Performance in Specific Consumer Segments
Softness was observed in consumer segments that over-index to lower income or Hispanic consumers, which has not shown improvement.
Company Guidance
In Wingstop Inc.'s fiscal second quarter 2025 earnings call, the company provided optimistic guidance for the remainder of the year, highlighting significant growth metrics and strategic initiatives. System-wide sales increased by 13.9% to $1.3 billion, despite a 1.9% decline in same-store sales. The company opened 129 net new restaurants globally in Q2, marking the highest number of new openings in a single quarter, and increased its global unit growth guidance to 17-18% for 2025. The Wingstop Smart Kitchen, now implemented in 1,000 U.S. locations, has been delivering a 40% reduction in average ticket times and improving guest satisfaction scores by 8 points compared to non-implemented kitchens. Furthermore, Wingstop plans to pilot a new loyalty program in Q4 2025, leveraging its digital database, which has grown by 30% to nearly 60 million guests. The company reiterated its full-year guidance for a 1% growth in domestic same-store sales and SG&A expenses of approximately $140 million, while forecasting adjusted EBITDA growth to exceed 15% year-over-year.Wingstop Financial Statement Overview
Summary
Wingstop exhibits strong revenue growth and efficient cash flow management, but negative equity and high leverage pose financial risks. The company needs to focus on improving profitability and reducing leverage to enhance financial stability.Income Statement
Wingstop has shown impressive revenue growth over the years, with a notable increase in total revenue from the previous periods. The company maintains strong profitability, demonstrated by a high gross profit margin and a solid net profit margin. The EBIT and EBITDA margins indicate efficient operational management. However, the slight decrease in EBIT compared to the prior annual report suggests potential pressure on operating efficiency.85
Very Positive
Balance Sheet
The balance sheet reveals a significant concern with negative stockholders' equity, indicating potential financial instability. The high debt-to-equity ratio suggests over-leverage, which could pose risks in a volatile market. Nonetheless, the company has maintained a solid cash position with cash and short-term investments exceeding total debt. Equity ratio shows negative equity, indicating liabilities exceed assets, which needs careful monitoring.60
Neutral
Cash Flow
Wingstop demonstrates robust cash flow management with consistent operating cash flow generation and positive free cash flow. The company has managed to convert a significant portion of its net income into free cash flow, reflecting efficient cash management. However, the free cash flow growth rate has slowed, indicating potential challenges in further cash flow expansion.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 651.11M | 625.81M | 460.06M | 357.52M | 282.50M | 248.81M |
| Gross Profit | 312.01M | 300.87M | 222.83M | 171.06M | 141.10M | 122.90M |
| EBITDA | 279.85M | 187.97M | 125.78M | 101.44M | 81.83M | 51.24M |
| Net Income | 172.24M | 108.72M | 70.17M | 52.95M | 42.66M | 23.31M |
Balance Sheet | ||||||
| Total Assets | 696.80M | 716.25M | 377.82M | 424.19M | 249.20M | 211.56M |
| Cash, Cash Equivalents and Short-Term Investments | 251.38M | 315.91M | 90.22M | 184.50M | 48.58M | 40.86M |
| Total Debt | 1.27B | 1.27B | 732.51M | 716.43M | 471.84M | 472.92M |
| Total Liabilities | 1.41B | 1.39B | 835.19M | 815.05M | 558.73M | 552.88M |
| Stockholders Equity | -714.98M | -675.59M | -457.37M | -390.86M | -309.52M | -341.31M |
Cash Flow | ||||||
| Free Cash Flow | 89.45M | 105.68M | 80.77M | 52.30M | 20.86M | 59.48M |
| Operating Cash Flow | 138.25M | 157.61M | 121.60M | 76.24M | 48.88M | 65.53M |
| Investing Cash Flow | -10.32M | -62.48M | -52.15M | -28.68M | -29.85M | -7.99M |
| Financing Cash Flow | 13.96M | 144.76M | -155.49M | 103.25M | -23.39M | -19.45M |
Wingstop Technical Analysis
Negative
309.79
Price Trends
328.60
Negative
316.18
Negative
295.26
Positive
Market Momentum
-3.97
Positive
42.45
Neutral
28.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WING, the sentiment is Negative. The current price of 309.79 is below the 20-day moving average (MA) of 327.60, below the 50-day MA of 328.60, and above the 200-day MA of 295.26, indicating a neutral trend. The MACD of -3.97 indicates Positive momentum. The RSI at 42.45 is Neutral, neither overbought nor oversold. The STOCH value of 28.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WING.
Wingstop Risk Analysis
Wingstop disclosed 36 risk factors in its most recent earnings report. Wingstop reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Wingstop Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $11.25B | 25.83 | 32.28% | 1.57% | 14.59% | 18.98% | |
73 Outperform | $15.71B | 27.09 | -14.74% | 1.40% | 3.65% | 5.71% | |
69 Neutral | $8.62B | 53.95 | -16.09% | 0.36% | 22.74% | 87.07% | |
66 Neutral | $4.35B | 219.41 | 4.16% | ― | 13.13% | -25.05% | |
63 Neutral | $1.94B | 10.61 | 99.35% | 7.55% | 1.31% | -1.46% | |
61 Neutral | $17.97B | 12.87 | -5.30% | 2.97% | 1.26% | -14.45% | |
60 Neutral | $1.55B | 21.25 | -20.16% | 3.81% | -1.46% | 8.10% |
* Consumer Cyclical Sector Average
Performance Comparison
WING
Wingstop
309.79
-53.72
-14.78%
DPZ
Domino's Pizza
463.83
49.89
12.05%
PZZA
Papa John's International
48.24
2.83
6.23%
TXRH
Texas Roadhouse
168.85
9.93
6.25%
WEN
Wendy's
10.33
-5.89
-36.31%
SHAK
Shake Shack
100.18
4.60
4.81%
Wingstop Corporate Events
DividendsFinancial Disclosures
Wingstop Reports Strong Q2 2025 Financial Results
Positive
Jul 30, 2025
Wingstop Inc. reported its fiscal second quarter 2025 results, highlighting a 13.9% increase in system-wide sales to $1.3 billion and a record 129 net new openings, marking a 19.8% net new unit growth. Despite a decrease in domestic same store sales by 1.9%, the company saw a 12% increase in total revenue to $174.3 million and a slight increase in adjusted net income. The company also announced an increase in its quarterly dividend to $0.30 per share, reflecting its strong cash flow and commitment to returning value to stockholders.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.