Last Updated: 16 Sep 2024
Executive Summary
Wingstop Inc. (WING) is a leading franchisor and operator of restaurants under the Wingstop brand. The company's strong financial performance and positive analyst outlook suggest potential for continued growth and investor returns.
Company Overview
Wingstop is headquartered in Dallas, Texas, and operates over 1,600 restaurants in the United States and internationally. The company's menu features a variety of chicken wings, tenders, and sides. Wingstop has a strong brand presence and a loyal customer base.
Fundamental Analysis
Revenue: Wingstop's revenue for the trailing twelve months (TTM) is $545.6 million, representing a 0.453% increase year-over-year (YOY).
Earnings: Diluted EPS for the TTM is $3.20, with a quarterly earnings growth of 0.723% YOY.
Profitability: The company's profit margin is 0.173, and its operating margin is 0.265.
Valuation: Wingstop has a market capitalization of $11.57 billion, a trailing PE ratio of 123.38, and a forward PE ratio of 86.21.
Technical Analysis
Price Action: Wingstop's stock price has been trending upwards over the past year, with a 52-week high of $430.73 and a 52-week low of $166.18.
Moving Averages: The stock is currently trading above its 50-day moving average of $379.84 and its 200-day moving average of $345.88.
Support and Resistance: Key support levels include $380 and $360, while key resistance levels include $400 and $420.
Short Term Outlook
In the short term, Wingstop's stock price is likely to continue to fluctuate within its current range. The company's strong fundamentals and positive analyst outlook suggest that the stock has the potential to move higher, but it may face some resistance at the $400 level.
Long Term Outlook
In the long term, Wingstop has the potential to continue to grow its business and deliver strong returns to investors. The company's strong brand presence, loyal customer base, and international expansion plans position it well for continued success.
Analyst Recommendations
Analysts are generally bullish on Wingstop's stock. Of the 25 analysts covering the stock, 8 have a "Strong Buy" rating, 3 have a "Buy" rating, 14 have a "Hold" rating, and none have a "Sell" or "Strong Sell" rating. The average analyst target price is $423.67, implying a potential upside of approximately 7.3% from the current price.
