Wingstop (WING) AI Stock Analysis

• Market Cap: $9.09B
• Dividend Yield: 0.34%
• Average Volume (3M): 752.16K
• Price to Earnings (P/E): 54.4
• Beta (1Y): 1.14
• Revenue Growth: 22.74%
• EPS Growth: 87.07%
• Country: US
• Employees: 325
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Restaurants
• EPS (TTM): 1.00
• Shares Outstanding: 27,923,754
• 10 Day Avg. Volume: 802,053
• 30 Day Avg. Volume: 752,158
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 16.47
• Enterprise Value/Gross Profit: 29.35
• Enterprise Value/Ebitda: 38.33
• 1Y Price Target: $399.76
• Price Target Upside: 22.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 22

• Rating: 69 Neutral
• Price Target: $357.00 ▲(9.65% Upside)

Wingstop's overall stock score reflects strong growth prospects and operational efficiencies, particularly through international expansion and technological innovations like the Smart Kitchen. However, financial risks due to high leverage and negative equity, along with a high valuation, temper the outlook.

Positive Factors

Loyalty Platform Launch

The launch of the first-ever loyalty platform is expected to strengthen customer connections and increase visit frequency.

Smart Kitchen Impact

Smart Kitchen implementations generated a +5% lift in sales in the stores that have rolled it out, with no advertising support.

Unit Growth

Wingstop increased the NUG guidance for the second consecutive quarter due to strong demand for units.

Negative Factors

Consumer Headwinds

There remain near-term headwinds from the low income consumer and management noted trends in July are similar to 2Q.

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 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 Financial Statement Overview

Summary

Wingstop demonstrates strong revenue growth and efficient cash flow management, underlying operational success. However, financial risks are posed by negative equity and high leverage. Improving profitability and reducing leverage could 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.

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
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

• Technical Analysis Sentiment: Negative
• Last Price: 325.59
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Negative. The current price of 325.59 is below the 20-day moving average (MA) of 329.49, below the 50-day MA of 339.63, and above the 200-day MA of 295.53, indicating a neutral trend. The MACD of 1.07 indicates Negative momentum. The RSI at 47.60 is Neutral, neither overbought nor oversold. The STOCH value of 41.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WING.

Wingstop Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAKE	77 Outperform	$3.11B	19.19	41.01%	1.70%	4.77%	38.24%
CAVA	73 Outperform	$9.77B	59.34	20.90%	―	28.21%	227.11%
WING	69 Neutral	$9.09B	54.41	-16.09%	0.34%	22.74%	87.07%
Sector *	67 Neutral	¥277.37B	14.70	6.81%	2.50%	5.06%	-23.65%
SHAK	66 Neutral	$4.71B	232.85	4.16%	―	13.13%	-25.05%
WEN	60 Neutral	$1.93B	10.55	99.35%	8.44%	1.31%	-1.46%
JACK	46 Neutral	$389.92M	―	4.15%	8.52%	-6.66%	-71.87%

Wingstop Corporate Events

Wingstop Reports Strong Q2 2025 Financial Results

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.

The most recent analyst rating on (WING) stock is a Buy with a $420.00 price target. To see the full list of analyst forecasts on Wingstop stock, see the WING Stock Forecast page.

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.