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Wingstop initiated with an Outperform at RBC Capital

RBC Capital analyst Logan Reich initiated coverage of Wingstop (WING) with an Outperform rating and $315 price target The company is a strong competitor in the growing chicken market which has a well-defined niche in wings that differentiates it from competitors, and with shares down 34% since Q2 earnings, this presents an opportunity where franchisee ROIC of about 70% is best-in-class, the analyst tells investors in a research note. While SSS growth has decelerated materially from the high-teens growth in FY23/FY24, this is well-appreciated by investors, the firm added.

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