Industry Overview - U.S. retail sales have experienced fluctuations due to tariff fears and high inflation, yet spending at restaurants and bars remains strong [1] - Sales at U.S. restaurants reached $99.4 billion in April, reflecting a 1.2% month-over-month increase after a 3% rise in March, indicating consumer willingness to dine out [3][4] - Inflation is showing signs of cooling, with the consumer price index (CPI) rising 0.2% in April and a year-over-year increase of 2.3%, the smallest since February 2021 [5] Economic Factors - Easing trade war tensions and a temporary pause on tariffs announced by President Trump have contributed to a more favorable outlook for the restaurant industry [6] - The Federal Reserve's potential resumption of rate cuts could further benefit the restaurant sector [6] Investment Opportunities - Recommended restaurant stocks include BJ's Restaurants, Inc. (BJRI), Wingstop (WING), and CAVA Group, Inc. (CAVA), all of which have seen positive earnings estimate revisions in the last 60 days and carry a Zacks Rank 2 (Buy) [2] - BJRI has an expected earnings growth rate of 23.8% for the current year, with a 9% improvement in earnings estimates over the past 60 days [7] - WING's expected earnings growth rate is 6.3%, with a 6.3% improvement in earnings estimates over the past 60 days [8] - CAVA's expected earnings growth rate is 38.1%, with a 5.5% improvement in earnings estimates over the past 60 days [10]

Core Insights - Wingstop introduces a new limited-time flavor, Mexican Street Spice, inspired by Mexican street corn, available through a 20 for $20 deal featuring classic wings [1][2][4] - The new flavor combines spices, parmesan cheese, and lime, and can be applied to classic wings, crispy tenders, and chicken sandwiches, enhancing the overall customer experience [3][4] - Wingstop's system-wide sales for fiscal year 2024 reached approximately $4.8 billion, reflecting a 36.8% increase and marking the 21st consecutive year of same-store sales growth [7] Company Overview - Wingstop, founded in 1994 and headquartered in Dallas, operates over 2,650 locations globally, focusing on providing a unique guest experience with a variety of chicken wing flavors and sides [6] - The company aims to become a Top 10 Global Restaurant Brand, with independent franchisees accounting for about 98% of its total restaurant count [7] Recognition and Achievements - In 2024, Wingstop was featured on Ad Age's 'Hottest Brands' list and recognized by QSR Magazine as one of the "Best Brands to Work For" [8] - The company was also acknowledged by Fast Company as one of the "Most Innovative Companies" and ranked 14 on Entrepreneur Magazine's 'Franchise 500' [8]