Morgan Stanley analyst Brian Harbour maintains $Wingstop (WING.US)$ with a hold rating, and adjusts the target price from $415 to $385.
According to TipRanks data, the analyst has a success rate of 51.5% and a total average return of -0.7% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Wingstop (WING.US)$'s main analysts recently are as follows:
Wingstop's Q3 performance, while not meeting the heightened anticipations, remained robust with a 21% increase driven by customer traffic. Furthermore, the company's upward revision of its 2024 unit guidance is a testament to ongoing franchisee interest. Post-earnings, the opportunity to invest is seen as favorable due to Wingstop's sustained 40%-plus three-year cumulative comparable sales growth.
Wingstop's third-quarter earnings per share fell short due to somewhat weaker comparable sales, softer restaurant margins, and increased general and administrative expenses, coupled with taxes. Despite this, the company's overall business momentum continues robust, and its long-term prospects remain solid. However, the observable deceleration in comparable sales could cap the stock's performance until signs of stabilization align with valuation metrics.
The perceived post-Q3 downturn in Wingstop's performance is seen as exaggerated. Analysts maintain that the company stands out in the industry with the potential to surpass transaction growth expectations in various economic conditions. It is anticipated that their continued outperformance in same-store sales will fuel superior unit economics, which could lead to an increased pace in unit expansion and an annual EBITDA growth surpassing the company's existing long-term projections.
Note:
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