Wingstop (WING) AI Stock Analysis

• Market Cap: $8.91B
• Dividend Yield: 0.34%
• Average Volume (3M): 625.10K
• Price to Earnings (P/E): 53.6
• Beta (1Y): 1.32
• Revenue Growth: 30.98%
• EPS Growth: 112.65%
• Country: US
• Employees: 325
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Restaurants
• EPS (TTM): 0.99
• Shares Outstanding: 27,902,887
• 10 Day Avg. Volume: 543,709
• 30 Day Avg. Volume: 625,102
• PEG Ratio: 0.83
• Price to Book (P/B): -12.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 96.11
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 29.40
• Enterprise Value/Gross Profit: 175.08
• Enterprise Value/Ebitda: 96.68
• 1Y Price Target: $360.75
• Price Target Upside: 20.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 22

• Rating: 66 Neutral
• Price Target: $348.00 ▲(16.14%Upside)

Wingstop's overall score is driven by robust growth in revenue and digital sales, supported by strategic expansion efforts. While financial risks due to high leverage and negative equity are concerning, the company's successful digital transformation and expansion strategy provide a strong growth outlook. However, the high P/E ratio suggests caution due to potential overvaluation.

Positive Factors

Brand awareness

A growing national ad fund has increased fourfold since 2019, supporting rising brand awareness.

Operational efficiency

Smart kitchens are enhancing operational efficiency, reducing quote times significantly compared to historical models.

Same-store sales

Wingstop has achieved a remarkable 21 straight years of positive same-store sales.

Negative Factors

International business

Wingstop’s international business is nascent with a virtually open-ended growth runway.

Management decisions

Management was asked about an increase, and indicated it was periodically evaluated and to-date decided against.

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.

Wingstop Business Overview & Revenue Model

Company Description

Wingstop Inc. (WING) is a leading American multinational chain of aviation-themed restaurants specializing in chicken wings. Founded in 1994 and headquartered in Addison, Texas, Wingstop has established itself as a prominent player in the fast-casual dining sector. The company is known for its signature menu centered around a variety of flavored chicken wings, along with complementary offerings such as fries, sides, and beverages. Wingstop operates a mix of company-owned and franchised locations, with a substantial presence in both domestic and international markets.

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 shows strong revenue growth and excellent cash flow management but has financial risks due to negative equity and high leverage, which need to be addressed for long-term 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	625.81M	460.06M	357.52M	282.50M	248.81M
Gross Profit	300.87M	222.83M	170.12M	141.10M	130.80M
EBITDA	187.97M	125.78M	101.44M	81.83M	51.24M
Net Income	108.72M	70.17M	52.95M	42.66M	23.31M
Balance Sheet
Total Assets	716.25M	377.82M	424.19M	249.20M	211.56M
Cash, Cash Equivalents and Short-Term Investments	315.91M	90.22M	184.50M	48.58M	40.86M
Total Debt	1.27B	732.51M	716.43M	471.84M	472.92M
Total Liabilities	1.39B	835.19M	815.05M	558.73M	552.88M
Stockholders Equity	-675.59M	-457.37M	-390.86M	-309.52M	-341.31M
Cash Flow
Free Cash Flow	105.68M	80.77M	52.30M	20.86M	59.48M
Operating Cash Flow	157.61M	121.60M	76.24M	48.88M	65.53M
Investing Cash Flow	-62.48M	-52.15M	-28.68M	-29.85M	-7.99M
Financing Cash Flow	144.76M	-155.49M	103.25M	-23.39M	-19.45M

Wingstop Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 299.63
• 50DMA: Negative
• 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 Negative. The current price of 299.63 is below the 20-day moving average (MA) of 327.18, below the 50-day MA of 337.76, and above the 200-day MA of 299.41, indicating a neutral trend. The MACD of -6.14 indicates Positive momentum. The RSI at 30.74 is Neutral, neither overbought nor oversold. The STOCH value of 29.12 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
CAVA	75 Outperform	$9.98B	71.96	21.73%	―	32.11%	378.62%
CAKE	74 Outperform	$3.39B	21.51	46.60%	1.58%	4.42%	48.23%
SHAK	70 Outperform	$5.88B	479.53	2.70%	―	14.07%	-47.47%
WEN	68 Neutral	$2.17B	12.08	90.40%	8.34%	2.18%	-5.15%
WING	66 Neutral	$8.91B	53.56	-16.09%	0.34%	30.98%	112.65%
Sector *	63 Neutral	$17.10B	10.79	-8.01%	2.94%	1.62%	-25.73%
JACK	55 Neutral	$469.72M	―	4.15%	7.43%	-6.02%	-289.54%

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.