Wingstop (WING) AI Stock Analysis

• Market Cap: $10.63B
• Dividend Yield: 0.3%
• Average Volume (3M): 760.06K
• Price to Earnings (P/E): 63.9
• Beta (1Y): 1.38
• Revenue Growth: 30.98%
• EPS Growth: 112.65%
• Country: US
• Employees: 325
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Restaurants
• EPS (TTM): 0.99
• Shares Outstanding: 27,902,887
• 10 Day Avg. Volume: 673,022
• 30 Day Avg. Volume: 760,057
• PEG Ratio: 3.27
• Price to Book (P/B): -10.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 78.66
• Enterprise Value/Market Cap: 0.44
• Enterprise Value/Revenue: 1.92
• Enterprise Value/Gross Profit: 12.71
• Enterprise Value/Ebitda: 5.79
• 1Y Price Target: $342.62
• Price Target Upside: -3.23% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 22

• Rating: 71 Outperform
• Price Target: $404.00 ▲(14.10%Upside)

Wingstop's strong revenue growth and digital strategy are major positives, bolstering its financial performance. However, overvaluation and financial risks due to high leverage and macroeconomic challenges weigh down the score. Positive earnings call outcomes and governance improvements provide some optimism.

Positive Factors

Customer Experience

The use of AI-driven demand forecasting is anticipated to significantly decrease wait times and enhance customer experience.

Market Competitiveness

The new system is expected to enhance Wingstop's market share in third-party delivery services by significantly reducing quoted order times, making the brand more competitive in delivery speed.

Technology and Innovation

The introduction of the Smart Kitchen operating platform is expected to improve efficiency and support a return to medium to long term sales growth.

Negative Factors

Short-term Risks

There is maybe still some near-term top-line risk, acknowledged as a cyclical issue, but without medium/long-term concerns about the growth profile.

Wingstop Business Overview & Revenue Model

Company Description

Wingstop 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 Money

Wingstop primarily generates revenue through the sale of chicken wings and related food items at its restaurant locations. The company's revenue model is heavily reliant on franchising, with a significant portion of income derived from franchise fees and royalties. Franchisees pay an initial franchise fee, ongoing royalties based on a percentage of their sales, and contribute to a marketing fund. Additionally, Wingstop benefits from sales of proprietary sauces and seasonings, enhancing its profitability. The company's growth strategy includes expanding its global footprint through new franchised locations, thus increasing its revenue streams. Partnerships with delivery services also contribute to Wingstop's earnings by facilitating off-premise sales, which have become increasingly important in recent years.

Wingstop Financial Statement Overview

Summary

Wingstop exhibits strong revenue growth and efficient cash management, but is hindered by negative equity and high leverage, posing financial risks. Continued focus on profitability and reducing leverage is essential for 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.

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.

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.

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
365.39M	300.87M	222.83M	170.12M	141.10M	130.80M
	EBIT
161.14M	165.62M	112.59M	91.93M	73.76M	57.39M
	EBITDA
279.85M	187.97M	125.78M	101.44M	81.83M	51.24M
	Net Income Common Stockholders
172.24M	108.72M	70.17M	52.95M	42.66M	23.31M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
251.38M	315.91M	90.22M	184.50M	48.58M	40.86M
	Total Assets
696.80M	716.25M	377.82M	424.19M	249.20M	211.56M
	Total Debt
1.27B	1.27B	732.51M	716.43M	471.84M	472.92M
	Net Debt
1.02B	949.52M	642.30M	531.93M	423.25M	432.06M
	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

• Technical Analysis Sentiment: Positive
• Last Price: 354.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WING, the sentiment is Positive. The current price of 354.06 is above the 20-day moving average (MA) of 348.38, above the 50-day MA of 287.30, and above the 200-day MA of 308.41, indicating a bullish trend. The MACD of 23.56 indicates Positive momentum. The RSI at 61.58 is Neutral, neither overbought nor oversold. The STOCH value of 51.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WING.

Wingstop Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAKE	74 Outperform	$2.85B	18.09	46.60%	1.84%	4.42%	48.23%
SHAK	73 Outperform	$5.47B	430.60	2.70%	―	14.07%	-47.47%
WING	71 Outperform	$10.63B	63.92	-16.09%	0.30%	30.98%	112.65%
WEN	66 Neutral	$2.20B	12.25	90.40%	4.90%	2.18%	-5.15%
CAVA	66 Neutral	$8.89B	65.27	21.73%	―	32.11%	378.62%
Sector *	62 Neutral	$6.90B	11.05	2.80%	4.27%	2.67%	-24.92%
JACK	50 Neutral	$374.76M	―	4.15%	9.03%	-6.02%	-136.86%

Wingstop Corporate Events

Wingstop Approves Key Governance Changes at Annual Meeting

On May 22, 2025, Wingstop held its 2025 Annual Meeting where several key proposals were voted upon. The election of directors for a three-year term was confirmed, with all nominees receiving the necessary votes. Additionally, the appointment of KPMG LLP as the independent registered public accounting firm for fiscal year 2025 was ratified. The advisory vote on executive compensation was approved, and amendments to the Company’s Certificate of Incorporation were passed to declassify the Board and eliminate supermajority voting provisions. These changes are expected to impact the company’s governance structure positively.

The most recent analyst rating on (WING) stock is a Hold with a $280.00 price target. To see the full list of analyst forecasts on Wingstop stock, see the WING Stock Forecast page.