UBS analyst Dennis Geiger maintained a Hold rating on Wingstop today and set a price target of $295.00.
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Dennis Geiger has given his Hold rating due to a combination of factors impacting Wingstop’s current and future performance. Despite the company’s strong brand positioning and promising long-term growth outlook, near-term sales pressures are anticipated to persist. The third quarter results revealed sluggish same-store sales trends, which are expected to continue into the fourth quarter due to challenging macroeconomic conditions and a competitive promotional environment.
However, Wingstop is implementing several initiatives aimed at restoring positive sales growth by 2026. These include a new marketing campaign, the rollout of the Smart Kitchen concept, a loyalty program launch, and bundled value promotions. While these initiatives are promising, Geiger is looking for concrete evidence of a positive inflection in same-store sales trends before adopting a more optimistic stance on the stock. The company’s updated guidance for unit growth and its efforts to enhance average unit volume are positive signs, but the current sales environment warrants a cautious approach.
According to TipRanks, Geiger is a 3-star analyst with an average return of 1.7% and a 50.49% success rate. Geiger covers the Consumer Cyclical sector, focusing on stocks such as Domino’s Pizza, Yum! Brands, and McDonald’s.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $223.00 price target.