Wingstop (WING) AI Stock Analysis

• Market Cap: $6.74B
• Dividend Yield: 0.46%
• Average Volume (3M): 900.85K
• Price to Earnings (P/E): 40.3
• Beta (1Y): 1.21
• Revenue Growth: 22.74%
• EPS Growth: 87.07%
• Country: US
• Employees: 325
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 1.00
• Shares Outstanding: 27,923,754
• 10 Day Avg. Volume: 867,875
• 30 Day Avg. Volume: 900,853
• PEG Ratio: 1.33
• Price to Book (P/B): -12.36
• Price to Sales (P/S): 13.34
• P/FCF Ratio: 79.02
• Enterprise Value/Market Cap: 1.59
• Enterprise Value/Revenue: 16.02
• Enterprise Value/Gross Profit: 33.32
• Enterprise Value/Ebitda: 37.71
• 1Y Price Target: $386.81
• Price Target Upside: 60.34% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 22

• Rating: 61 Neutral
• Price Target: $322.00 ▲(33.47% Upside)

Wingstop's overall stock score reflects a balance of strong growth initiatives and financial risks. The company's aggressive expansion and technological advancements are positive, but high leverage and valuation concerns weigh on the score. The optimistic earnings call sentiment supports future growth potential, but financial stability remains a key concern.

Positive Factors

Global Expansion

The record number of new restaurant openings demonstrates Wingstop's aggressive global expansion strategy, enhancing its market presence and long-term growth potential.

Technological Advancements

The implementation of Smart Kitchen technology boosts operational efficiency and customer satisfaction, providing a competitive edge and supporting sustainable growth.

Revenue Growth

Strong system-wide sales growth reflects Wingstop's successful expansion and marketing strategies, indicating robust demand and potential for continued revenue increases.

Negative Factors

High Leverage

High leverage and negative equity position pose financial risks, potentially limiting Wingstop's ability to invest in growth and manage economic downturns.

Decline in Same-Store Sales

A decline in same-store sales suggests challenges in maintaining customer traffic and sales growth at existing locations, impacting overall revenue stability.

Consumer Uncertainty

Consumer uncertainty and spending concerns could lead to reduced demand for Wingstop's offerings, affecting sales and profitability in the medium term.

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 shows strong revenue growth and profitability, but its high leverage and negative equity position pose significant financial risks. While cash flow from operations is stable, declining free cash flow could constrain future financial flexibility. The company needs to address its balance sheet weaknesses to sustain long-term growth.

Income Statement

Wingstop has demonstrated consistent revenue growth, with a TTM revenue growth rate of 2.86%. The company maintains strong profitability with a TTM net profit margin of 25.61% and an EBIT margin of 38.98%. However, the gross profit margin has slightly decreased over time, indicating potential cost pressures.

Balance Sheet

The balance sheet shows high leverage with a negative debt-to-equity ratio of -1.85, indicating significant financial risk. The negative stockholders' equity suggests potential solvency issues. Return on equity is negative, reflecting challenges in generating returns for shareholders.

Cash Flow

Operating cash flow remains positive, with a healthy operating cash flow to net income ratio of 1.52. However, free cash flow has declined by 37.62% in the TTM period, which may impact future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2019	Dec 2018
Income Statement
Total Revenue	669.74M	625.81M	460.06M	357.52M	199.68M	153.18M
Gross Profit	321.92M	300.87M	222.83M	171.06M	98.56M	87.42M
EBITDA	284.45M	187.97M	125.78M	101.44M	48.38M	41.36M
Net Income	171.51M	108.72M	70.17M	52.95M	20.48M	21.72M
Balance Sheet
Total Assets	708.29M	716.25M	377.82M	424.19M	166.11M	139.75M
Cash, Cash Equivalents and Short-Term Investments	227.94M	315.91M	90.22M	184.50M	12.85M	12.49M
Total Debt	1.27B	1.27B	732.51M	716.43M	312.68M	311.77M
Total Liabilities	1.39B	1.39B	835.19M	815.05M	375.54M	364.58M
Stockholders Equity	-686.00M	-675.59M	-457.37M	-390.86M	-209.43M	-224.83M
Cash Flow
Free Cash Flow	55.80M	105.68M	80.77M	52.30M	16.10M	34.79M
Operating Cash Flow	108.65M	157.61M	121.60M	76.24M	38.58M	38.77M
Investing Cash Flow	-20.31M	-62.48M	-52.15M	-28.68M	-23.73M	-10.50M
Financing Cash Flow	40.77M	144.76M	-155.49M	103.25M	-14.62M	-13.72M

Wingstop Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 241.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 241.25 is below the 20-day moving average (MA) of 253.34, below the 50-day MA of 294.94, and below the 200-day MA of 287.48, indicating a bearish trend. The MACD of -13.11 indicates Negative momentum. The RSI at 32.72 is Neutral, neither overbought nor oversold. The STOCH value of 21.98 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
TXRH	74 Outperform	$10.85B	24.91	32.28%	1.62%	14.59%	18.98%
DPZ	71 Outperform	$13.80B	23.59	-14.74%	1.66%	3.65%	5.71%
WEN	63 Neutral	$1.66B	9.09	99.35%	8.96%	1.31%	-1.46%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WING	61 Neutral	$6.74B	40.32	-16.09%	0.46%	22.74%	87.07%
SHAK	57 Neutral	$3.70B	186.86	4.16%	―	13.13%	-25.05%
PZZA	54 Neutral	$1.36B	18.33	-20.16%	4.42%	-1.46%	8.10%

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.