Stifel analyst Chris O`Cull maintains $Wingstop (WING.US)$ with a buy rating, and adjusts the target price from $460 to $400.
According to TipRanks data, the analyst has a success rate of 58.6% and a total average return of 12.1% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Wingstop (WING.US)$'s main analysts recently are as follows:
The company's Q3 results did not meet the high expectations yet still displayed significant strength with a 21% increase in comparable store sales led by traffic, and the guidance for 2024 units was enhanced, indicating strong franchisee demand. Analysts recommend purchasing shares following the post-earnings decline, citing Wingstop's consistent 40%-plus three-year compounded comparable store sales.
Wingstop's third-quarter earnings per share fell short, owing to somewhat weaker comparable store sales, softer restaurant margins, and increased general and administrative expenses coupled with higher taxes. Despite this, the robust momentum of Wingstop's overall business persists, with its long-term potential remaining intact. However, a current slowdown in comparable store sales growth may restrain the stock until a more evident stabilization in light of the comp and valuation dynamics.
The recent post-quarterly results decline in Wingstop's valuation is perceived as excessive. The view is that the company stands out in the industry with its ability to drive transaction growth in various economic conditions over short, medium, and long-term periods. It's anticipated that the company's continued outperformance in same-store sales will propel superior unit economics, which could, in turn, lead to an increase in unit growth and annual long-term EBITDA growth surpassing the current expectations set by the company's management.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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