Wingstop should be bought amid post-earnings weakness, says Stephens

After Wingstop (WING) reported Q3 domestic comp growth of 20.9%, which came in modestly below consensus expectations of 21.6% and flowed through to “modest misses” on restaurant-level margins and adjusted EPS, Stephens said the firm believes shares will see pressure today given the elevated valuation and modest comp miss. However, it would continue to be buyers on weakness as the firm calls Wingstop “a truly idiosyncratic name in the restaurant segment given the relatively low awareness and traffic momentum.” Ahead of the company’s earnings call, the firm keeps an Overweight rating on Wingstop shares, which are down 13% to $321.50 in pre-market trading.