Wingstop (WING 3.72%) is riding the popularity of chicken wings as it aggressively expands its restaurant concept. While growth is the name of the game for the company, there's a subtle, but important, trend that's also helping to propel its success. Here's why opening 349 new locations in 2024 was big and, at the same time, not nearly as notable as how 70% of the company's sales originated in the fourth quarter.Wingstop's growth has been incredibleBefore getting to the 70% figure, it is important to highli ...

Core Viewpoint - Wingstop's stock has declined 52% from its peak due to weakening consumer sentiment, disappointing 2025 guidance, and missed top-line estimates, but it presents an attractive buying opportunity after the price reset [2][4]. Group 1: Growth Track Record - Wingstop has achieved 20 consecutive years of same-store sales growth, a record that includes challenging periods like the financial crisis and the pandemic [4]. - The company reported 10.1% domestic same-store sales growth in Q4 and 19.9% for the full year, with a two-year comparable sales growth exceeding 40% [4][5]. - Wingstop's ability to grow same-store sales while opening new locations indicates strong brand resonance and minimal cannibalization [5]. Group 2: 2025 Guidance - The stock fell 13% following the Q4 earnings report, which missed top-line estimates and provided conservative guidance for 2025 [7][8]. - Management anticipates low-to-mid-single-digit same-store sales growth in 2025, a significant decrease from 19.9% in 2024, attributed to strong growth comparisons [8][9]. - Historically, Wingstop has provided conservative guidance, often exceeding initial forecasts, as seen in its Q4 2023 guidance [9][10]. Group 3: Growth Potential - Wingstop is expanding rapidly in domestic and international markets, leveraging its franchise model to open stores in new and small-footprint locations [11]. - The company opened 349 net new restaurants in 2024, totaling 2,563 locations, with plans for 14%-15% growth in 2025 [12]. - Wingstop aims for 7,000 global locations, tripling its current footprint, with potential for further increases if demand remains strong [13]. Group 4: Valuation and Investment Opportunity - Following the recent stock pullback, Wingstop's valuation appears more reasonable, trading at a price-to-earnings ratio of 56, which aligns with its growth potential [14]. - Despite potential market headwinds in 2025, Wingstop could outperform if it exceeds its same-store sales guidance, positioning itself for long-term growth [14].

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Let's take a look at what these Wall Street heavyweights have to say about Wingstop (WING) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Wingstop currently has an average brokerag ...

Core Viewpoint - The current economic climate is causing consumer financial strain, leading to a predicted slowdown in spending, which negatively impacts restaurant companies like Chipotle, Wingstop, and Cava [1][2][3] Company Performance - Chipotle's same-store sales increased by 7.4% in 2024, but only 5.4% in Q4, with expectations for 2025 to be in the low- to mid-single-digit range [5] - Wingstop reported a 19.9% increase in same-store sales for 2024 but anticipates low to mid-single-digit growth for 2025 [6] - Cava's same-store sales rose 13.4% in 2024, with expectations of a decline between 6% and 8% in 2025 [6] Growth Drivers - Despite the anticipated slowdown in same-store sales, these companies are expected to continue growing due to new store openings [7][8] - Chipotle's overall sales grew by 14.6% in 2024, driven by the opening of 304 new locations [9][10] - Wingstop's sales surged by 36.8%, with 349 new restaurants opened, while Cava's top line grew by 33.1% with 58 new shops [9][10] Future Outlook - Chipotle plans to open 315 to 345 new locations, Wingstop aims for a 14% to 15% increase in store count, and Cava is looking to open 62 to 66 new restaurants [10] - If these companies achieve their opening targets, they are likely to report solid top-line growth in 2025 despite consumer pullback [11]

Wingstop's (WING 2.81%) name is absolutely accurate. It's a place where you can stop to buy chicken wings. However, this fast-growing restaurant chain has seen its shares go from loved to seemingly unloved in a very short period of time. Wingstop's shares have declined nearly 50% from their 52-week highs.And yet the business is still executing quite well. Is the stock drop here an opportunity to buy Wingstop?What does Wingstop do?Wings are very popular, and that's been good for the company's business. Which ...

Wingstop ranch delivers a flavorful punch to every chicken wing, tender, sandwich or fry it touches. Made fresh in restaurants everyday, Wingstop's ranch is a true fan favorite. "Wingstop ranch isn't just any dip – it's legendary. We've seen ranch fountains go viral and people cater Wingstop ranch at their weddings. But one of the biggest trends we see is fans begging us to bottle and sell our house made ranch. Now, for the first time ever, we're answering that call," said Wingstop's Chief Revenue Officer, ...

As Wingstop (WING 0.47%) nears the 10th anniversary of its June 2015 IPO, longtime shareholders of the restaurant chain have plenty to celebrate, as the stock has returned a fantastic 972%. On the other hand, the stock's prolific flight has faced some turbulence, with shares down about 46% from their 52-week high.The good news is that the sell-off may have helped bring the stock's previously lofty valuation down to a more palatable level. There are several reasons to believe the company's long-term growth t ...

Shares of restaurant company Wingstop (WING 0.47%) dropped 21.2% in February, according to data provided by S&P Global Market Intelligence. On Feb. 19, the company reported its financial results for the fourth quarter of 2024, capping off its 21st consecutive year of same-store sales growth, which is a spectacular achievement. It expects to report its 22nd consecutive year of gains in 2025.However, Wingstop's accomplishment is clouded by a clear deceleration trend in its growth rate. In 2023, the company's ...

Two stocks that have been hit hard this earnings season could be big winners in the final 10 months of this year.It's been a rocky run for the market in recent days, but some stocks are trading well below their recent highs. Shares of Wingstop (WING -0.83%) and Duolingo (DUOL -2.68%) are trading 47% and 33% lower, respectively, since their earlier high-water marks. They seem like interesting buying opportunities here.Let's take a closer look at what has tripped up these two former market darlings, and why t ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Let's take a look at what these Wall Street heavyweights have to say about Wingstop (WING) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Wingstop currently has an average brokerage recommendation (ABR ...