Wingstop (WING) stock suffered a huge fall following the release of the restaurant company’s Q4 2024 earnings. Revenue of $161.82 million missed Wall Street’s estimate of $164.84 million despite earnings per share of 93 cents easily beating an 86-cent estimate.
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Wingstop’s biggest problem is its 2025 guidance. The restaurant chain expects domestic same-store sales growth in the low to mid-single digits, global unit growth of 14% to 15%, SG&A of approximately $140 million, $26 million in stock-based compensation, interest expenses of $46 million, and depreciation and amortization of $29 million to $30 million.
How Wingstop’s Outlook Affects WING Stock
Wingstop’s guidance failed to impress investors, resulting in its stock dropping 13.4% during normal trading hours yesterday. That’s bad news for investors as the shares are now down 6.75% year-to-date and 14.37% over the past 52 weeks.
Not helping matters were several analysts updating their coverage of WING stock following its earnings report. Looking at TipRanks five-star analysts, Piper Sandler’s Brian Mullan decreased his price target from $300 to $271, TD Cowen’s Andrew Charles reduced the stock from $365 to $305, Stifel Nicolaus’ Chris O`Cull lowered it from $400 to $375, and Wedbush’s Nick Setyan cut the stock from $390 to $355.
Despite the price target drops, each of these analysts maintained their ratings for the stock, with all but Mullan having a bullish outlook. O’Cull believes WING stock dropped on elevated expectations and that “patient investors should take advantage of any continued weakness in the shares to build positions.”
Is WING Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Wingstop is Strong Buy based on 11 Buy and two Hold ratings over the last three months. With that comes an average price target of $367.00 with a high forecast of $468.00 and a low forecast of $271. This represents a potential 38.48% upside for WING stock.
