Wingstop (WING) has received a new Buy rating, initiated by William Blair analyst, Sharon Zackfia.
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Sharon Zackfia has given her Buy rating due to a combination of factors that highlight Wingstop’s strong brand momentum and growth potential. The company has demonstrated impressive same-store sales growth for 21 consecutive years, driven by a value-centric menu and expanding digital presence. The average unit volumes have increased significantly, and management aims to reach $3 million in AUVs within a decade, supported by rising brand awareness, digital transformation, menu innovation, and operational improvements.
Wingstop’s attractive unit economics and expansion potential further justify the Buy rating. The company’s streamlined operations and low-cost real estate strategy result in high cash-on-cash returns. With a domestic opportunity to more than double its current locations and a nascent international presence poised for significant growth, Wingstop is well-positioned for continued success. Zackfia projects high-teens annual revenue growth and substantial EBITDA growth over the next two years, with strong unit expansion and free cash flow contributing to the positive outlook.
Zackfia covers the Consumer Cyclical sector, focusing on stocks such as CarMax, Carvana Co, and OneSpaWorld Holdings. According to TipRanks, Zackfia has an average return of 13.8% and a 55.19% success rate on recommended stocks.
In another report released on July 1, BTIG also maintained a Buy rating on the stock with a $430.00 price target.