Market Overview - U.S. equity markets experienced an upward trend in Q3 2025, with the S&P 500 Index rising by 8.12% due to improving economic conditions, solid corporate earnings, and expectations for monetary easing [1] - The Alger Small Cap Focus Fund's class A shares underperformed compared to the Russell 2000 Growth Index during the same period [1] Company Focus: Wingstop Inc. - Wingstop Inc. (NASDAQ:WING) is a global restaurant brand known for its hand-sauced chicken wings, operating over 2,000 locations, primarily in the U.S. [3] - The stock of Wingstop Inc. had a one-month return of 6.80% but saw a decline of 21.79% over the last 52 weeks, closing at $259.08 per share with a market capitalization of $7.234 billion as of November 27, 2025 [2] - In Q3 2025, Wingstop's total revenue increased by 8.1% year-over-year to $175.7 million, indicating strong fiscal performance despite facing tough comparisons from previous years [4] Performance Analysis - Wingstop's sales momentum was driven by new menu offerings, increased marketing efforts, and growth in digital ordering, which enhanced brand awareness and profitability [3] - Despite the positive long-term growth outlook, Wingstop's shares declined later in the quarter due to reports of softer sales trends, attributed to a slowdown in the restaurant industry and consumer price aversion [3] - The company is viewed favorably for its long-term growth potential, with upcoming catalysts such as the rollout of Smart Kitchen initiatives and an enhanced loyalty program [3] Hedge Fund Interest - Wingstop Inc. was held by 39 hedge fund portfolios at the end of Q3 2025, a decrease from 47 in the previous quarter, indicating a decline in popularity among hedge funds [4]

Core Insights - Wingstop has achieved a significant milestone by opening its 3,000th restaurant globally, aiming to become a top 10 global restaurant brand with a long-term goal of over 10,000 locations [1][2] Expansion and Growth - The company has scaled from 2,000 to 3,000 restaurants in just over two years, with nearly 800 new locations opened since 2023 and a 50% increase in international presence [2] - Wingstop is now operating in 47 US states and 15 international markets, with plans for openings in Thailand, Italy, and Ireland [3] - The growth has been primarily driven by existing franchise operators, with over 70 brand partners expanding their number of outlets in Q3 2025 [3] Menu and Financial Performance - Wingstop's menu includes cooked-to-order classic and boneless wings, tenders, chicken sandwiches, sides, and housemade dips [4] - For fiscal 2024, the company reported system-wide sales of $5 billion [4] Future Plans - The company plans to expand its presence in Canada with three new restaurants in Calgary by 2026, following its entry into Ontario in 2022 [5] - Wingstop is testing an AI-driven kitchen operations platform to enhance service efficiency and simplify tasks for back-of-house staff [5]

Core Insights - Wingstop is on track to become a top 10 global restaurant brand, having opened its 3,000th location and aiming for over 10,000 restaurants worldwide [1][3] - The company has experienced significant growth, opening nearly 800 restaurants and expanding its global footprint by 50% in the last two years [1][3] - In the most recent quarter, Wingstop opened 114 restaurants, indicating a strong growth trajectory [1][3] Expansion and Market Presence - Wingstop has entered six new markets, including Australia, Bahrain, Kuwait, Puerto Rico, Saudi Arabia, and The Netherlands, now operating in 47 U.S. states and 15 countries [2] - The company plans to expand into Thailand, Italy, and Ireland soon, further enhancing its international presence [2] Financial Performance and Unit Economics - The company reported average unit volumes of $2.1 million domestically, with unlevered cash-on-cash returns exceeding 70% on an average upfront investment of $500,000 [4] - Over 70 unique brand partners opened Wingstop locations in over 100 different markets across the U.S. in the most recent quarter, showcasing strong demand for unit growth [4][5] - The attractiveness of Wingstop's unit economic model is reflected in the continued commitment from brand partners [5]

Core Insights - Wingstop has achieved a significant milestone by opening its 3,000th restaurant globally, marking a step towards its goal of becoming a Top 10 Global Restaurant Brand with over 10,000 locations worldwide [1][4]. Expansion and Growth - The company opened nearly 800 restaurants and expanded its global footprint by 50% in just two years, entering six new markets: Australia, Bahrain, Kuwait, Puerto Rico, Saudi Arabia, and The Netherlands [2]. - Wingstop operates in 47 U.S. states and 15 countries, with plans to open in Thailand, Italy, and Ireland soon [2]. Business Performance - Wingstop's President & CEO, Michael Skipworth, highlighted the company's rapid growth from 2,000 to 3,000 restaurants in just over two years, indicating strong domestic and international business potential [3]. - The company has a record pipeline of sold restaurant commitments and has seen strong interest from existing franchisees, with over 70 brand partners expanding their footprint in the last quarter [3]. Financial Overview - Wingstop reported approximately $5 billion in system-wide sales for fiscal 2024 and has achieved 21 consecutive years of same-store sales growth [4].

Core Insights - Carillon Tower Advisers released its third-quarter 2025 investor letter for the Carillon Eagle Mid Cap Growth Fund, highlighting a continued rally in equity markets driven by enthusiasm for AI, limited inflationary effects from tariffs, and expectations for interest rate cuts from the U.S. Federal Reserve [1] - The Russell Midcap Growth Index increased by 2.78%, but underperformed the Russell Midcap® Value Index, which rose by 6.16% during the same quarter [1] Company Insights - Wingstop Inc. (NASDAQ:WING) is a restaurant company specializing in cooked-to-order chicken wings, but its stock has faced challenges, with a one-month return of -1.87% and a 52-week loss of 28.35% [2][3] - As of November 24, 2025, Wingstop's stock closed at $242.73 per share, with a market capitalization of $6.778 billion [2] - The company’s total revenue for the third quarter increased by 8.1% year-over-year to $175.7 million, but there are concerns regarding its core lower-income consumer base, which is under pressure [4] Sector Insights - The investor letter provided detailed views on various sectors, including Cyclicals, Healthcare, Information Technology, Financials, and Consumer sectors, indicating a broad analysis of market trends [1] - Despite acknowledging Wingstop's potential, the letter suggests that certain AI stocks may offer greater upside potential and carry less downside risk compared to Wingstop [4]

Core Insights - Darsana Capital Partners LP disclosed a new position in Wingstop Inc., acquiring 750,000 shares valued at $188.76 million, making it the fund's fourteenth disclosed position [2][3] - Wingstop shares were priced at $232.89 as of November 14, 2025, reflecting a 29% decline over the past year, underperforming the S&P 500 by 44 percentage points [4] - The company's trailing twelve-month revenue is $682.98 million, with a net income of $174.26 million, and it has a forward price-to-earnings ratio of 58 [4][9] Company Overview - Wingstop is a leading fast-casual restaurant brand specializing in chicken wings, operating primarily through a franchise model [10][11] - The market capitalization of Wingstop is $6.47 billion as of November 14, 2025 [6] - The company's dividend yield stands at 0.48%, with shares currently 40% below their 52-week high [5]

Core Insights - Artisan Partners' "Artisan Small Cap Fund" reported strong performance in Q3 2025, with major US indices reaching record highs and the fund's Investor Class returning 8.69% [1] - Wingstop Inc. (NASDAQ:WING) was highlighted as a detractor in the fund's performance, with a one-month return of -8.55% and a 52-week decline of 28.93% [2][3] - Despite challenges, Wingstop's quarterly results exceeded expectations, and the company is optimistic about growth initiatives, including smart kitchen technology and a loyalty program set to launch in 2026 [3] Fund Performance - The Artisan Small Cap Fund's Investor Class fund ARTSX returned 8.69%, Advisor Class fund APDSX returned 8.75%, and Institutional Class fund APHSX returned 8.73% in Q3 2025 [1] - The Russell 2000 Growth Index outperformed the fund with a return of 12.19% during the same period [1] Wingstop Inc. Overview - Wingstop's stock closed at $232.89 on November 14, 2025, with a market capitalization of $6.482 billion [2] - The company's total revenue in Q3 increased by 8.1% year-over-year to $175.7 million [4] - Wingstop is not among the top 30 most popular stocks among hedge funds, with 47 hedge fund portfolios holding its stock at the end of Q2 2025, up from 39 in the previous quarter [4] Growth Initiatives - Wingstop is implementing smart kitchen technology that has reportedly reduced customer service wait times by 40%, enhancing operational efficiency [3] - The planned loyalty program for 2026 aims to improve customer engagement and encourage repeat business [3]

Group 1: Rubrik - Rubrik achieved a sales growth of 55% in the last quarter and is currently trading at 79 times free cash flow (FCF) [1] - The company is recognized as the No. 1 player in its niche, holding a "leader" designation from Gartner and has an impressive +80 Net Promoter Score, ranking it among the top 1% of enterprise software companies [1] Group 2: Rocket Lab - Rocket Lab's sales grew by 48% in the last quarter, and its next-generation Neutron rocket is expected to launch in the first quarter of 2026 [4] - The company holds a market cap of approximately $25 billion and is positioned as the No. 2 player in a space industry projected to exceed $1 trillion by 2035 [2] Group 3: Dutch Bros - Dutch Bros reported a 25% sales growth in the last quarter, but its stock has dropped by 33% from its all-time high due to decelerating revenue growth [7] - The company aims to expand to 2,029 total shops by 2029, doubling its current total, and is now funding store construction through its own cash flow [8] Group 4: Halozyme Therapeutics - Halozyme Therapeutics holds a near monopoly on subcutaneous drug deliveries, significantly reducing the time required for drug administration [9] - The company has increased sales by 38% annually over the last decade and is trading at 15 times FCF, indicating strong growth potential [10] Group 5: Global-e Online - Global-e Online facilitates international sales for brands, with its technology being utilized by major e-commerce platforms like Shopify [11] - Despite a 28% sales growth in the last quarter and a 40% drop in share price from its peak, the company remains a dominant player in its niche, trading at 42 times FCF [12] Group 6: Wingstop - Wingstop has experienced a decline in same-store sales for two consecutive quarters, leading to a 37% drop in its stock price [13] - Management believes the company can quadruple its store count, indicating potential for future growth despite recent challenges [15] Group 7: The Trade Desk - The Trade Desk's stock has fallen by 69%, but it still managed a 26% sales growth over the past year [16] - The company is trading at 25 times forward earnings, with improving adoption rates for its new AI-powered platform, Kokai [17] Group 8: Kinsale Capital - Kinsale Capital specializes in excess and surplus insurance lines, achieving 45% annualized net income growth over the last decade [18] - The company is currently trading at its lowest-ever P/E ratio of 19, making it an attractive investment opportunity [20] Group 9: SPS Commerce - SPS Commerce has delivered 99 consecutive quarters of sales growth but has guided for only 8% growth in 2026, resulting in a 59% drop in stock price [21] - The company trades at 21 times free cash flow, significantly below its five-year average, suggesting a potential buying opportunity [22] Group 10: MercadoLibre - MercadoLibre has shown a 39% sales increase in its last quarter and has become a core player in the Latin American economy with 77 million active e-commerce buyers [23] - The company is trading at 52 times forward earnings, which is considered reasonable given its strong growth trajectory [24]

Core Insights - Dividend stocks can provide both income and growth potential, making them attractive for long-term investors [2][12] - Wingstop and Universal Display are highlighted as two dividend growth stocks worth considering for investment [3][12] Wingstop - Wingstop operates in the fast-food sector, specifically focusing on chicken wings, and is currently experiencing a downturn in stock performance, down over 40% from last year's highs [4][7] - The company has a market capitalization of $6 billion, with a current stock price of $232.89 and a gross margin of 82.51% [5][6] - Wingstop's locations average annual sales of $2.1 million, primarily through digital orders, leading to high profitability [6][7] - The company is expanding aggressively with a pipeline of over 1,000 new locations, aiming for a long-term goal of 10,000 locations worldwide [10] - Despite a projected decline in U.S. same-store sales by 3% to 4% in 2025, the company has a strong historical performance with 21 consecutive years of sales growth [9][10] - Wingstop has increased its quarterly dividend for eight consecutive years, currently paying out less than 20% of its earnings, indicating potential for future increases [11] Universal Display - Universal Display specializes in organic light-emitting diode (OLED) technology, holding over 6,500 patents, which provides a competitive advantage in the market [14][15] - The company has a market capitalization of $6 billion, with a current stock price of $116.83 and a gross margin of 73.61% [14] - Universal Display reported a gross margin of 75% and an operating margin of 31% in Q3 2025, with a strong balance sheet featuring zero debt and approximately $1 billion in cash [15] - Revenue for Universal Display is down nearly 2% year-over-year, but the OLED market is expected to grow significantly due to advancements in technology, such as foldable screens [16] - The company has also increased its quarterly dividend for eight consecutive years, with a current payout ratio of 38% of earnings and a dividend yield of 1.5% [17]

Core Insights - Steadfast Capital Management LP has significantly increased its stake in Wingstop, making it the fourth-largest holding in their portfolio, with a total investment value of $239.23 million as of September 30, 2025 [1][2][3] Company Overview - Wingstop operates over 1,700 restaurants across 44 states and 7 countries, utilizing a scalable, asset-light business model that focuses on franchise operations [5][7] - The company reported a market capitalization of $6.47 billion, with a trailing twelve months (TTM) revenue of $682.98 million and a net income of $174.26 million [4] Financial Performance - As of November 14, 2025, Wingstop's stock price was $232.89, reflecting a 29% decline over the past year, underperforming the S&P 500 by 44 percentage points [3][4] - The company has a forward P/E ratio of 59, which is lower than its historical average of 96, indicating potential for future growth despite current valuation concerns [12] Growth Potential - Wingstop has a strong growth trajectory, aiming to quadruple its store count from the current 2,500 locations, indicating a long runway for expansion [10] - Despite recent declines in same-store sales, the company previously achieved 96 consecutive quarters of growth, showcasing its robust operational performance [11] Investment Thesis - Steadfast's recent investment in Wingstop follows a significant price drawdown, suggesting confidence in the company's long-term prospects [9] - The company's disciplined expansion strategy and consistent profitability position it favorably within the consumer cyclical sector [8]