On Nov 01, major Wall Street analysts update their ratings for $Wingstop (WING.US)$, with price targets ranging from $315 to $400.
Morgan Stanley analyst Brian Harbour maintains with a hold rating, and adjusts the target price from $415 to $385.
Citi analyst Jon Tower maintains with a hold rating, and adjusts the target price from $440 to $315.
Barclays analyst Jeff Bernstein maintains with a buy rating, and maintains the target price at $380.
BMO Capital analyst Andrew Strelzik maintains with a hold rating, and adjusts the target price from $275 to $335.
Oppenheimer analyst Michael Tamas maintains with a hold rating.
Furthermore, according to the comprehensive report, the opinions of $Wingstop (WING.US)$'s main analysts recently are as follows:
The recent quarterly performance of Wingstop didn't meet the high expectations, but exhibited robust strength with a 21% comp driven by traffic. Additionally, the increase in the 2024 unit guide reflects the strong demand from franchisees. The company is perceived positively despite the post-earnings sell-off, attributed to Wingstop's sustained compounding growth over the past three years.
Wingstop's Q3 earnings per share fell short due to somewhat weaker comparable sales, softer restaurant margins, and increased general and administrative expenses alongside higher taxes. Despite this, the company's overall business momentum continues to be robust, and its long-term prospects remain constant. Nevertheless, a deceleration in comparable sales could temper the stock's performance until there is clearer evidence of stabilization, considering the relationship between comparable sales and valuation.
The recent decline in Wingstop's stock price following the quarterly results is viewed by analysts as excessive. Wingstop is considered to be in a unique position within the industry to achieve transaction growth outperformance in any economic environment, both in the near and long term. Analysts maintain that the company's expected same-store sales growth outperformance will fuel industry-leading unit economics, which could lead to an uptick in unit growth and annual long-term EBITDA growth surpassing the company's own long-term projections.
The post-earnings decline in Wingstop's shares has presented an attractive entry point for investors capable of looking beyond the intense scrutiny of quarter-over-quarter comparisons. Wingstop's robust brand identity, coupled with substantial resources, positions it well to reinvigorate same-store sales. This potential growth could be supported by augmented advertising efforts, menu diversification including options like chicken sandwiches or tenders, and promotional activities such as the boneless bundle offering. Additionally, there exists an opportunity for the management to enhance earnings prospects by potentially raising the royalty rate on new units.
Here are the latest investment ratings and price targets for $Wingstop (WING.US)$ from 11 analysts:
Note:
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