Steadfast Capital Management Adds $148 Million to its Wingstop Stake: Why the Growth Stock's a Buy

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]