DALLAS, July 24, 2025 /PRNewswire/ -- The Flavor Experts at Wingstop (NASDAQ: WING) filed an application to register National Chicken Tender Day. The move sets out to make official what fans already know: Wingstop's crispy tenders don't just compete – they dominate.But what really hits different about Wingstop's crispy tenders in a crowd of bland fingers and strips? Wingstop filed an application to register National Chicken Tender Day. Tenderloin – one of the most premium and craveable parts of the c ...

Industry Overview - U.S. fast food chain sales increased by only 3.1% last year, lagging behind the 4.01% menu-price inflation rate and the 1.2% growth in food-at-home sales [3] - The fast food industry is facing challenges as chain sales have not kept pace with economic growth, indicating potential issues for the sector [2] Company Performance - Yum! Brands, the parent company of KFC, Pizza Hut, and Taco Bell, reported a 3% sales decline in Q1 2025 [4] - Chipotle experienced its worst quarterly numbers since the pandemic in the first three months of 2025 [4] - Krispy Kreme shares have dropped over 68% year-to-date due to losing its McDonald's distribution deal [10] - Cava Group shares were down 37% earlier in the year but have recovered to a negative 21% year-to-date [10] - Chipotle shares are down over 9% year-to-date, primarily due to weaker sales and profit growth [10] - Wendy's shares have slipped over 33% year-to-date, reflecting ongoing same-store sales weakness [10] Investment Opportunities - McDonald's is trading around $300 per share, with a target price of $345, supported by new value deals [11] - Shake Shack has gained 69.3% over the past three months, reporting $320.9 million for its most recent quarter, up 10.5% year-over-year [15][16] - Wingstop has seen its share price rise by 10% year-to-date and nearly 40% over the past three months, with 21 consecutive years of same-store sales growth [18][19] Consumer Sentiment - 78% of U.S. consumers view fast food as a "luxury," and about 50% consider it a budget buster due to lower household savings [5]

Core Insights - Wingstop has partnered with 2025's 1 basketball draft pick, Paige Bueckers, to launch the Rookie Draft Class campaign, allowing fans to order her exclusive meal lineup [1][2][4] - The collaboration highlights Wingstop's commitment to engaging with rising sports stars and enhancing brand visibility through celebrity endorsements [1][4] Company Overview - Wingstop, founded in 1994 and headquartered in Dallas, TX, operates over 2,650 restaurants globally, with 98% owned by brand partners [6] - The company reported approximately $5 billion in system-wide sales for fiscal 2024 and has achieved 21 consecutive years of same-store sales growth [6] - Wingstop aims to become a Top 10 Global Restaurant Brand and has been named the Official Chicken Partner of the NBA [6] Product Offering - The Paige Bueckers' Flavor Lineup includes her favorite items, such as classic wings, boneless wings, crispy tenders, seasoned fries, and ranch dips [8] - The exclusive meal can be ordered through Wingstop's website or app for a limited time [4][5]

Group 1 - Wingstop Inc. is expanding its support for communities affected by natural disasters in Texas, matching contributions up to $1 million for the American Red Cross Disaster Relief Fund [1][2] - The company will launch Family Flavor Day on July 15, donating 15% of sales from all Texas locations to the American Red Cross, and will match donations made through the Round-Up campaign and Family Flavor Day, up to $500,000 [2] - Wingstop's President & CEO, Michael Skipworth, expressed the company's commitment to supporting Texas communities and first responders during these challenging times [3] Group 2 - In fiscal year 2024, Wingstop's system-wide sales increased by 36.8% to approximately $4.8 billion, marking the 21st consecutive year of same-store sales growth [5] - The company aims to become a Top 10 Global Restaurant Brand and operates over 2,650 locations worldwide, with independent franchisees accounting for approximately 98% of its total restaurant count [5] - Wingstop has received multiple accolades, including a spot on Ad Age's 'Hottest Brands' list and recognition as one of QSR Magazine's "Best Brands to Work For" [6]

Meta Platforms - Meta Platforms is focusing on artificial intelligence (AI) to drive revenue growth and internal efficiency, establishing a "superintelligence" division and recruiting talent from companies like Apple and OpenAI [1][2] - The stock has seen a significant price target increase, with a rise of over 40% in the first half of the year, and recent revisions suggest a potential price near $900, indicating a 25% gain from early July levels [3] - Technical signals indicate a strong uptrend, with the potential for the stock to reach near $950, supported by cash flow from AI investments, allowing for dividends and share buybacks [4] Dollar General - Dollar General's turnaround efforts and rationalization strategy are positively impacting its performance, leading to increased analyst coverage and a shift in sentiment to Moderate Buy [6][7] - The company is expected to report Q2 earnings soon, with analysts forecasting mid-single-digit revenue growth, although they may be underestimating the company's potential [7][8] - The focus on digitization and improved store experiences is anticipated to enhance store traffic and revenue, leading to substantial guidance improvements [8] Wingstop - Wingstop is experiencing challenges in comparable store sales for 2025 but is maintaining growth through unit expansion and international market penetration [10] - Analysts have increased coverage by 25% and upgraded the stock to Moderate Buy, with a consensus forecast suggesting a 10% upside, potentially reaching a new all-time high [11] - The company's capital return program, including aggressive share buybacks, supports the stock price rebound, despite a low dividend yield [12]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Wingstop (WING), and emphasizes the importance of using these recommendations in conjunction with other analytical tools like the Zacks Rank for making informed investment decisions [1][5][10]. Brokerage Recommendations - Wingstop has an average brokerage recommendation (ABR) of 1.59, indicating a consensus between Strong Buy and Buy, based on recommendations from 23 brokerage firms [2]. - Out of the 23 recommendations, 15 are classified as Strong Buy and 2 as Buy, which represent 65.2% and 8.7% of all recommendations respectively [2]. Limitations of Brokerage Recommendations - Studies indicate that brokerage recommendations have limited success in guiding investors towards stocks with the highest price increase potential [5]. - Brokerage firms often exhibit a positive bias in their ratings due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell [6][10]. Zacks Rank vs. ABR - The Zacks Rank is a proprietary tool that classifies stocks based on earnings estimate revisions, providing a more reliable indicator of near-term price performance compared to ABR [8][11]. - The Zacks Rank is updated more frequently and reflects timely changes in earnings estimates, while ABR may not always be current [12]. Current Earnings Estimates for Wingstop - The Zacks Consensus Estimate for Wingstop's earnings for the current year remains unchanged at $3.9, suggesting stable analyst views on the company's earnings prospects [13]. - Due to the unchanged consensus estimate and other factors, Wingstop holds a Zacks Rank of 3 (Hold), indicating a cautious approach despite the Buy-equivalent ABR [14].

Company Overview - Wingstop Inc. operates and franchises over 2,650 locations globally, focusing on providing a unique guest experience with a technology-driven platform and a diverse menu featuring wings, tenders, and chicken sandwiches [4] - The company aims to become a Top 10 Global Restaurant Brand, with approximately 98% of its restaurants being operated by independent franchisees [5] Financial Performance - In fiscal year 2024, Wingstop's system-wide sales rose by 36.8% to around $4.8 billion, marking the 21st consecutive year of same-store sales growth [5] Recognition and Awards - Wingstop was listed on Ad Age's 'Hottest Brands' list in 2024 and recognized by QSR Magazine as one of the "Best Brands to Work For" [6] - The company was also acknowledged by Fast Company as one of the "Most Innovative Companies" and ranked 14 on Entrepreneur Magazine's 'Franchise 500' [6]

Company Performance - Wingstop's stock closed at $364.11, reflecting a +1.09% increase from the previous day, underperforming compared to the S&P 500's gain of 1.11% [1] - Over the past month, Wingstop shares have increased by 11.7%, outperforming the Retail-Wholesale sector's gain of 0.9% and the S&P 500's gain of 3.92% [1] Earnings Expectations - Analysts expect Wingstop to report earnings of $0.87 per share, indicating a year-over-year decline of 6.45% [2] - Revenue is anticipated to be $173.63 million, representing an 11.52% increase from the same quarter last year [2] Full Year Projections - For the full year, earnings are projected at $3.9 per share and revenue at $730.74 million, reflecting increases of +6.56% and +16.77% respectively from the prior year [3] Analyst Sentiment - Recent changes to analyst estimates for Wingstop suggest a positive outlook, with upward revisions indicating optimism about the business [3][4] - The Zacks Rank system, which incorporates estimate changes, currently rates Wingstop as 2 (Buy) [5] Valuation Metrics - Wingstop has a Forward P/E ratio of 92.41, significantly higher than the industry average of 22.53 [6] - The company has a PEG ratio of 5.04, compared to the Retail-Restaurants industry's average PEG ratio of 2.6 [7] Industry Context - The Retail-Restaurants industry is ranked 150 in the Zacks Industry Rank, placing it in the bottom 40% of over 250 industries [7][8] - The Zacks Industry Rank indicates that top-rated industries outperform the bottom half by a factor of 2 to 1 [8]

Industry Overview - The restaurant industry has faced disappointment over the past three months, with industry stocks collectively slipping 2%, while the S&P 500 advanced 5.5% [1] - High costs and sluggish foot traffic continue to pressure margins and momentum within the industry [1] Traffic and Pricing Challenges - A rapid increase in menu prices is the primary reason behind the erosion of customer traffic, leading to challenges in maintaining customer counts as consumers express frustration with rising prices [2] Standout Performers - Despite the overall industry decline, Cracker Barrel Old Country Store, Inc. (CBRL) has increased by 46.2%, Shake Shack Inc. (SHAK) by 41.7%, and Wingstop Inc. (WING) by 62.6% over the same period, driven by brand loyalty, strategic innovation, and investor optimism [3] Company-Specific Insights Cracker Barrel - Cracker Barrel is benefiting from menu innovation, digital initiatives, and strategic remodels, with a 1% increase in comparable-store restaurant sales in the fiscal third quarter, marking the fourth consecutive quarter of positive growth [8] - Earnings estimates for fiscal 2025 and 2026 have risen by 9.9% and 8.4% to $3.10 and $3.48 per share, respectively, indicating strong momentum [9] Shake Shack - Shake Shack's growth is driven by enhanced operations, menu innovation, and store openings, with plans to open 45-50 company-operated Shacks this year [11] - Earnings estimates for 2025 and 2026 have been revised upward by 6.3% and 9.6% to $1.34 and $1.71 per share, respectively [12] Wingstop - Wingstop is experiencing growth from expansion efforts and a new kitchen operating platform, with international expansion becoming a significant growth driver [14] - Earnings estimates for 2025 and 2026 have seen upward revisions of 6.8% and 5% to $3.90 and $5.03 per share, respectively [16] Summary of Opportunities - Cracker Barrel, Shake Shack, and Wingstop are demonstrating strong brand execution and strategic innovation, trading above their 50-day moving averages, indicating solid technical strength [17] - Rising earnings estimates and clear growth strategies position these stocks as compelling opportunities despite a challenging macroeconomic backdrop [18]

Core Insights - Dutch Bros Inc. and Wingstop Inc. are rapidly expanding in the quick-service restaurant industry with distinct growth strategies [1][2] - Both companies are enhancing their market presence while facing challenges such as inflation and cautious consumer spending [3] Dutch Bros Inc. (BROS) - Dutch Bros is focused on disciplined expansion, aiming to reach 2,029 shops by 2029, supported by a total addressable market of 7,000 shops [5] - In Q1 2025, total revenues increased by 29% year-over-year to $355.2 million, driven by shop openings and improved productivity [6] - The company opened 30 shops in the quarter and plans to accelerate openings, targeting at least 160 system shop openings in 2025 [7] - Initiatives like order-ahead and loyalty programs are being implemented to enhance same-shop sales performance and customer convenience [8] Wingstop Inc. (WING) - Wingstop's system-wide sales rose by 15.7% to $1.3 billion in Q1 2025, marking the highest quarterly sales in the company's history [9] - The company opened a record 126 net new restaurants in the quarter and raised its 2025 unit growth guidance to 16-17%, indicating 410-435 net new openings [11] - International expansion is a key growth driver, with new markets like Kuwait and Australia showing strong demand [12] - Wingstop is utilizing AI-powered solutions to improve order consistency and enhance guest experience [13] Financial Performance & Valuations - Dutch Bros' stock has gained 5.3% over the past three months, while Wingstop's shares have surged by 63.2% [15] - Dutch Bros is trading below Wingstop on a forward 12-month price-to-sales ratio [16] - EPS estimates for Wingstop have trended upward, while those for Dutch Bros remain unchanged, with BROS projected to improve by 24.5% and WING by 6.6% in 2025 [20] Conclusion - Wingstop is better positioned for growth due to its faster global expansion, strong brand partner confidence, and ability to open higher-performing restaurants [24] - Dutch Bros is building a steady growth story with a focus on customer experience and operational improvements, but Wingstop's superior performance and growth momentum provide it with a competitive edge [25]