Wingstop (WING) AI Stock Analysis

• Market Cap: $7.63B
• Dividend Yield: 0.45%
• Average Volume (3M): 652.12K
• Price to Earnings (P/E): 44.8
• Beta (1Y): 1.04
• Revenue Growth: 15.56%
• EPS Growth: 79.02%
• Country: US
• Employees: 325
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 1.09
• Shares Outstanding: 27,786,854
• 10 Day Avg. Volume: 569,804
• 30 Day Avg. Volume: 652,117
• PEG Ratio: 1.33
• Price to Book (P/B): -12.36
• Price to Sales (P/S): 13.34
• P/FCF Ratio: 79.02
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 11.58
• Enterprise Value/Gross Profit: 23.92
• Enterprise Value/Ebitda: 26.92
• 1Y Price Target: $327.25
• Price Target Upside: 20.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20
• EPS Forecast (FY): 4.73
• Revenue Forecast (FY): $819.45M

• Rating: 65 Neutral
• Price Target: $296.00 ▲(9.33% Upside)

The score is driven by strong profitability and growth initiatives (unit expansion, Smart Kitchen, loyalty program) but is meaningfully offset by balance-sheet risk (negative equity/high leverage) and an expensive valuation (P/E 45). Technicals are supportive near-term, though momentum looks somewhat stretched and price remains below the 200-day average.

Positive Factors

High Profitability Margins

Sustained high gross and operating margins indicate durable unit economics across company and franchised stores. Strong margins provide capacity to fund marketing, tech rollouts and franchise support, insulating cash generation and reinvestment potential during multi‑quarter cycles.

Asset-light franchised unit growth

Rapid, franchised-led unit expansion scales revenue and royalty streams with limited capital intensity. System-wide growth increases brand presence and royalties, lowering incremental capital needs and enhancing long-term cash flow visibility if franchise pipeline remains productive.

Operational tech & loyalty initiatives

Smart Kitchen and a national loyalty program are structural improvements to throughput, unit economics and customer retention. Faster service cuts labor/overhead per order; loyalty can lift frequency and digital sales, supporting sustainable same-store sales recovery over multiple quarters.

Negative Factors

Negative shareholders' equity and leverage

Negative equity and elevated leverage create persistent financial risk: higher refinancing costs, covenant sensitivity, and constrained strategic flexibility. In downturns, capital access and investment pacing could be impaired, pressuring long‑term resilience and partner confidence.

Weak cash conversion to free cash flow

Low conversion of net income into free cash flow limits capacity to deleverage, return capital, or accelerate store investment without outside funding. Even with FCF growth, poor conversion signals operating working capital or capex timing issues that can persistently constrain flexibility.

Declining same-store sales and guidance revision

Material comps decline and lowered guidance reflect structural softness in key consumer segments. Prolonged demand weakness could slow franchise economics, pressure royalty growth and compress unit-level margins, making recovery reliant on execution of operational and marketing initiatives.

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 generates revenue primarily through the sale of food and beverages at its restaurants. The company operates a dual revenue model that includes company-operated locations and franchised restaurants. Revenue from company-owned stores contributes directly to its earnings, while franchise fees and ongoing royalties from franchisees provide a significant revenue stream. Key revenue sources include sales of chicken wings, sides, and drinks, while franchisees pay an initial franchise fee and ongoing royalties based on their gross sales. Additionally, Wingstop has expanded its digital ordering and delivery services, enhancing customer convenience and driving sales growth. The company's strategic partnerships with delivery platforms also contribute to its revenue by increasing accessibility for customers.

Wingstop Financial Statement Overview

Summary

Wingstop shows strong revenue growth and profitability, but its high leverage and negative equity position pose significant financial risks. While cash flow from operations is stable, declining free cash flow could constrain future financial flexibility. The company needs to address its balance sheet weaknesses to sustain long-term growth.

Income Statement

Wingstop has demonstrated consistent revenue growth, with a TTM revenue growth rate of 2.86%. The company maintains strong profitability with a TTM net profit margin of 25.61% and an EBIT margin of 38.98%. However, the gross profit margin has slightly decreased over time, indicating potential cost pressures.

Balance Sheet

The balance sheet shows high leverage with a negative debt-to-equity ratio of -1.85, indicating significant financial risk. The negative stockholders' equity suggests potential solvency issues. Return on equity is negative, reflecting challenges in generating returns for shareholders.

Cash Flow

Operating cash flow remains positive, with a healthy operating cash flow to net income ratio of 1.52. However, free cash flow has declined by 37.62% in the TTM period, which may impact future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	682.98M	625.81M	460.06M	357.52M	282.50M	248.81M
Gross Profit	330.61M	300.87M	222.83M	171.06M	141.10M	122.90M
EBITDA	293.85M	187.97M	125.78M	101.44M	81.83M	51.24M
Net Income	174.26M	108.72M	70.17M	52.95M	42.66M	23.31M
Balance Sheet
Total Assets	721.03M	716.25M	377.82M	424.19M	249.20M	211.56M
Cash, Cash Equivalents and Short-Term Investments	286.11M	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	1.42B	1.39B	835.19M	815.05M	558.73M	552.88M
Stockholders Equity	-702.62M	-675.59M	-457.37M	-390.86M	-309.52M	-341.31M
Cash Flow
Free Cash Flow	62.54M	105.68M	80.77M	52.30M	20.86M	59.48M
Operating Cash Flow	103.49M	157.61M	121.60M	76.24M	48.88M	65.53M
Investing Cash Flow	2.34M	-62.48M	-52.15M	-28.68M	-29.85M	-7.99M
Financing Cash Flow	35.65M	144.76M	-155.49M	103.25M	-23.39M	-19.45M

Wingstop Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 270.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 270.73 is above the 20-day moving average (MA) of 259.50, above the 50-day MA of 251.41, and below the 200-day MA of 283.39, indicating a neutral trend. The MACD of 6.84 indicates Negative momentum. The RSI at 56.52 is Neutral, neither overbought nor oversold. The STOCH value of 68.57 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
TXRH	70 Outperform	$12.51B	28.88	31.55%	1.63%	14.40%	12.45%
DPZ	68 Neutral	$13.77B	23.81	―	1.63%	3.92%	4.98%
WING	65 Neutral	$7.63B	44.83	―	0.45%	15.56%	79.02%
WEN	65 Neutral	$1.61B	8.99	100.85%	8.15%	-0.21%	0.16%
SHAK	62 Neutral	$4.27B	98.99	8.83%	―	13.49%	402.23%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PZZA	57 Neutral	$1.23B	33.14	―	4.72%	-0.64%	-60.71%

Wingstop Corporate Events

Wingstop Reinstates COO Role to Drive Global Growth

On January 7, 2026, Wingstop Inc. reinstated the role of Chief Operating Officer and appointed Rajneesh (Raj) Kapoor, formerly President of International, to the position to oversee domestic and international franchise development and operations as well as company-owned restaurants. Kapoor’s appointment, which includes a $625,000 base salary and a $450,000 target annual bonus for fiscal 2026, together with the reassignment of duties for Senior Vice President Marisa J. Carona and Senior Vice President and General Counsel Albert McGrath, signals an organizational realignment aimed at strengthening operational oversight and supporting the company’s expansion across its global footprint.

The most recent analyst rating on (WING) stock is a Hold with a $292.00 price target. To see the full list of analyst forecasts on Wingstop stock, see the WING Stock Forecast page.

Wingstop Reports Strong Q3 2025 Financial Results

Wingstop Inc. reported its fiscal third quarter 2025 financial results, highlighting a record 114 net new openings and an 18.6% increase in adjusted EBITDA to $63.7 million. Despite a 5.6% decline in domestic same store sales, system-wide sales rose by 10% to $1.4 billion, driven by digital sales and strategic investments. The company declared a quarterly dividend of $0.30 per share, reflecting its strong cash flow and commitment to returning value to shareholders. Wingstop’s continued expansion and robust financial performance reinforce its vision to become a top 10 global restaurant brand.

The most recent analyst rating on (WING) stock is a Buy with a $330.00 price target. To see the full list of analyst forecasts on Wingstop stock, see the WING Stock Forecast page.