Core Insights - Wingstop Inc. reported a record 126 net new openings in the first quarter of fiscal 2025, achieving an 18% net new unit growth compared to the same period in fiscal 2024 [1][3] - The company demonstrated resilience in its business model despite macroeconomic challenges, with a strong pipeline of franchise development and industry-leading returns for brand partners [3][4] Financial Performance - Total revenue for the first quarter of fiscal 2025 increased to $171.1 million, up from $145.8 million in the prior year, representing a 17.4% growth [5][8] - System-wide sales rose by 15.7% to $1.3 billion, driven by new restaurant openings and same-store sales growth [8][22] - Net income surged 221% to $92.3 million, or $3.24 per diluted share, compared to $28.7 million in the same quarter last year [8][38] Operational Metrics - The number of system-wide restaurants increased to 2,689, with 2,250 domestic franchise restaurants and 388 international franchise restaurants [4][14] - Domestic average unit volume (AUV) rose to $2.1 million, reflecting strong sales performance [8][18] - Digital sales accounted for 72% of system-wide sales, indicating a significant shift towards online ordering [8] Cost and Expenses - Cost of sales increased to $22.8 million, with a margin of 76.0% of company-owned restaurant sales, up from 74.5% in the prior year [6][40] - Selling, general, and administrative (SG&A) expenses rose to $31.4 million, driven by increased headcount and system implementation costs [7][8] Shareholder Returns - The board of directors declared a quarterly dividend of $0.27 per share, totaling approximately $7.5 million, to be paid on June 6, 2025 [15] - The company repurchased a total of 868,527 shares under an accelerated share repurchase agreement at an average price of $287.84 per share [16][17] Future Outlook - The company provided updated guidance for fiscal 2025, indicating expectations for continued growth in same-store sales and unit expansion, while acknowledging the unpredictable macro-environment [13][19]

Analysts on Wall Street project that Wingstop (WING) will announce quarterly earnings of $0.84 per share in its forthcoming report, representing a decline of 14.3% year over year. Revenues are projected to reach $170.46 million, increasing 16.9% from the same quarter last year. The consensus EPS estimate for the quarter has been revised 1.8% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this ti ...

Core Viewpoint - The current market correction presents a potential buying opportunity for stocks, particularly those trading at historically low valuations, with three specific companies highlighted as attractive investments [2]. Group 1: Zoetis - Zoetis is a leading animal healthcare company with over 300 products for companion animals and livestock [3]. - Since its spin-off from Pfizer in 2013, Zoetis has achieved an annualized total return of 15%, despite a recent stock decline of 39% [4]. - The company reported revenue and adjusted earnings per share growth of 11% and 17%, respectively, in 2024, with significant sales growth in its osteoarthritis pain management products for pets [5]. - Zoetis's dividend yield is currently at 1.2%, the highest in its history, with an 18% increase in dividend payments over the last decade [6]. Group 2: Yeti - Yeti is a lifestyle brand known for premium outdoor products, with a loyal customer base among outdoor enthusiasts [8]. - Despite a 75% decline from its all-time highs due to a product recall and tariff concerns, Yeti has more than doubled its sales, net income, and free cash flow since its IPO [9]. - The company is expanding internationally, with 30% international sales growth in 2024, and is currently trading at its lowest-ever P/E ratio of 13 [12]. - Yeti plans to produce 80% of its drinkware outside of China by the end of the year, supported by a $300 million net cash balance [13]. Group 3: Wingstop - Wingstop operates 2,154 locations in the U.S. and 359 internationally, achieving 21 consecutive years of same-store sales growth [14]. - In 2024, Wingstop increased sales, net income, and store count by 16%, 36%, and 55%, respectively, yet its stock price is 49% below its 52-week highs [14]. - The company is currently trading at 59 times earnings, significantly lower than its historical average of 100, presenting a potential investment opportunity [15]. - Wingstop has a pipeline of over 2,000 restaurant commitments, which is the highest in its history, indicating strong growth potential [16].

In the latest trading session, Wingstop (WING) closed at $237.29, marking a -1.25% move from the previous day. This change lagged the S&P 500's 1.81% gain on the day. On the other hand, the Dow registered a gain of 1.56%, and the technology-centric Nasdaq increased by 2.06%.Coming into today, shares of the restaurant chain had gained 13.23% in the past month. In that same time, the Retail-Wholesale sector lost 5.27%, while the S&P 500 lost 6.14%.The upcoming earnings release of Wingstop will be of great int ...

"We all know the feeling of rolling into our favorite bar with friends and ordering the bartender's specialty," said Wingstop's Chief Revenue Officer, Mark Christenson. "With Bar Tender by Wingstop, we're shaking things up – literally – serving all 12 bold flavors for a one-of-a-kind experience. And the best part? Fans can bring the Bar Tender energy home by tasting every signature flavor for themselves." Whether fans prefer their crispy tenders served neat – like Wingstop's house favorite Hot Honey Rub – o ...

Wingstop Inc. (WING) is likely to benefit from digital efforts, unit expansion and strategic partnerships. Also, the emphasis on AI-powered kitchen technology bodes well. However, an uncertain macroeconomic environment is a concern.Let us discuss the factors that highlight why investors should retain the stock for now.Factors Driving WING StockDigital remains a cornerstone of Wingstop’s growth engine. In 2024, the digital sales mix rose to 70%, underpinned by the launch of the company’s proprietary tech sta ...

DALLAS, April 3, 2025 /PRNewswire/ -- Wingstop Inc. (NASDAQ: WING) today announced that it will host a conference call and webcast to discuss its fiscal first quarter 2025 financial results on Wednesday, April 30, 2025 at 10:00 a.m. ET. A press release with fiscal first quarter 2025 financial results will be issued before the market opens that morning. The conference call can be joined telephonically by dialing 1-877-259-5243 or 1-412-317-5176 (international) and asking for the Wingstop conference call.  A ...

Wingstop (WING 0.24%) locations sell chicken wings, as its name implies. It has been a very strong growth story, noting that revenue rose a massive 36% in 2024. However, a key driver of that growth was the opening of 349 restaurants during the year. That's nearly one new restaurant every day. And this is where Wingstop's story gets interesting.What does Wingstop do?The Wingstop food concept is chicken wings. That's a trendy dining option right now, and the company has clearly managed to catch the wave of po ...

Company Performance - Wingstop's stock closed at $220.08, reflecting a -1.14% change from the previous day's closing price, underperforming the S&P 500's daily gain of 0.16% [1] - The stock has decreased by 5.87% over the past month, which is worse than the Retail-Wholesale sector's loss of 5.51% and the S&P 500's loss of 3.59% [1] Upcoming Earnings - The upcoming EPS for Wingstop is projected at $0.84, indicating a 14.29% decline compared to the same quarter last year [2] - Revenue is estimated to be $171.46 million, representing a 17.61% increase compared to the same quarter last year [2] Annual Forecast - Zacks Consensus Estimates predict earnings of $3.66 per share and revenue of $732.76 million for the year, showing no change in earnings and a 17.09% increase in revenue compared to the previous year [3] Analyst Projections - Recent shifts in analyst projections for Wingstop are important as they reflect changes in near-term business trends, with positive estimate revisions indicating a favorable business outlook [4] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a history of outperforming, with 1 stocks averaging a +25% annual gain since 1988 [6] - Wingstop currently holds a Zacks Rank of 4 (Sell), with a recent downward shift of 1.98% in the EPS estimate [6] Valuation Metrics - Wingstop has a Forward P/E ratio of 60.84, significantly higher than the industry's average Forward P/E of 22.91 [7] - The company has a PEG ratio of 3.55, compared to the Retail - Restaurants industry's average PEG ratio of 2.23 [7] Industry Context - The Retail - Restaurants industry is part of the Retail-Wholesale sector and currently holds a Zacks Industry Rank of 174, placing it in the bottom 31% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Insights - The retail sector is characterized by both rising and falling companies, with examples including Wingstop, Walgreens, and Dollar General, highlighting the preference for retail-focused REITs like Realty Income [1][6][10] Retail Sector Dynamics - The retail sector's performance is heavily influenced by consumer demand, leading to volatility in stock prices and dividend reliability [2] - Walgreens, once a reliable dividend payer, cut its dividend due to a slowdown in its pharmacy business and is now transitioning to a private entity [3] - Wingstop experienced a 36% revenue growth in 2024 due to the opening of 349 new locations, yet its stock has lost over a third of its value in the past year [4] - Dollar General opened 608 new stores in 2024 and plans to open another 575 in 2025, but its earnings fell nearly 33% year over year, resulting in poor stock performance [5] Investment Strategy - Selecting winners in the retail sector is challenging due to the unpredictable nature of retail concepts and the performance of companies [6] - Realty Income, a REIT with over 15,600 properties, focuses on well-located retail properties, with 73% being single-tenant locations, utilizing a net lease approach to reduce risk [7][8] - Realty Income has a history of three decades of annual dividend increases and currently offers a dividend yield of 5.7%, making it attractive to income investors [7] - The REIT's strategy of acquiring well-located properties allows it to maintain asset value even if tenants struggle, providing a safety net for investors [9] Conclusion - The recommendation is to consider retail-focused REITs like Realty Income instead of trying to pick individual retail winners, as this approach may yield more stable investment outcomes [10][11]