Education
About Us
Working with TipRanks
Follow Us
Wingstop Inc. (WING)
:WING
Top Page
Wingstop
(NASDAQ:WING)61Neutral
Positive Factors
Customer Acquisition and Retention
Record new guest acquisition and highest retention rate were supported by effective advertising and multi-year drivers.
Technological Advancements
The launch of a proprietary AI-enabled kitchen operating platform is expected to drive company-specific sales growth.
Negative Factors
Guidance and Estimates
2025 guidance implies further comp slowdown and higher G&A, likely pressuring consensus estimates.
Sales and Margins
Comps and restaurant margins fell short despite exceeding EPS expectations.
Wingstop (WING) vs. S&P 500 (SPY)
Market Cap
$6.58B
Dividend Yield0.43%
Average Volume (3M)943.42K
Price to Earnings (P/E)62.0
Beta (1Y)1.56
Revenue Growth36.03%
EPS Growth57.51%
CountryUS
Employees1,335
SectorConsumer Cyclical
Sector Strength53
IndustryRestaurants & Bars
Share Statistics
EPS (TTM)3.70
Shares Outstanding28,662,645
10 Day Avg. Volume1,295,186
30 Day Avg. Volume943,425
Financial Highlights & Ratios
PEG Ratio1.08
Price to Book (P/B)N/A
Price to Sales (P/S)10.51
Price to Cash Flow (P/CF)212.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$331.05Price Target Upside43.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering20
Wingstop Business Overview & Revenue Model
Company DescriptionWingstop Inc. is a leading restaurant chain specializing in cooked-to-order chicken wings. Founded in 1994 and headquartered in Addison, Texas, Wingstop has grown to become a prominent player in the fast-casual dining sector. The company is renowned for its variety of flavors and sauces, offering a unique dining experience focused on quality and flavor. Wingstop operates a mix of company-owned and franchised locations, with a significant presence in both domestic and international markets.
How the Company Makes MoneyWingstop generates revenue primarily through its franchising model. The company earns money from franchise fees, royalty fees, and advertising fees from its franchisees. Franchisees pay an initial franchise fee to open a location and ongoing royalty fees, which are typically a percentage of their sales. Wingstop also benefits from company-owned restaurant sales, although these make up a smaller portion of the overall revenue compared to franchise operations. Additionally, Wingstop's revenue is augmented by its partnerships with beverage and food suppliers, which can provide incentives and rebates based on sales volumes. The company's strategic expansion into international markets further contributes to its revenue growth, leveraging its brand and operational model to capture new customer bases.
Wingstop Financial Statement Overview
Summary
Wingstop exhibits strong growth in revenue and profitability, with impressive margins indicating operational efficiency. However, the company's negative equity and high leverage pose potential financial risks. Despite these concerns, the robust cash flow generation and growth suggest a well-managed cash flow position, but the financial stability needs close monitoring.Income Statement
Wingstop has demonstrated strong revenue growth, with a substantial increase from $199.7M in 2019 to $625.8M in 2024. The gross profit margin remained high, reaching 100% in 2024 due to the classification of cost items, while the net profit margin improved significantly to 17.4% in 2024. The EBIT and EBITDA margins also show robust performance, with margins of 26.5% and 30.0%, respectively, indicating strong operational efficiency.85
Very Positive
Balance Sheet
The balance sheet shows a negative stockholders' equity of $675.6M in 2024, indicating financial instability. The debt-to-equity ratio is not calculable due to negative equity, but the high total liabilities suggest significant leverage. The equity ratio is also negative, reflecting a reliance on debt financing, which could pose risks in an economic downturn.40
Negative
Cash Flow
Wingstop's cash flow statements reveal a healthy free cash flow growth, with free cash flow increasing from $16.1M in 2019 to $105.7M in 2024. The operating cash flow to net income ratio is approximately 1.45, indicating strong cash generation relative to profits. However, the free cash flow to net income ratio of about 0.97 suggests near-full conversion of profits into free cash flow, highlighting efficient cash management.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 625.81M | 460.06M | 357.52M | 282.50M | 248.81M | Gross Profit |
| 300.87M | 222.83M | 170.12M | 141.10M | 130.80M | EBIT |
| 165.62M | 112.59M | 91.93M | 73.76M | 57.39M | EBITDA |
| 187.97M | 125.78M | 101.44M | 81.83M | 51.24M | Net Income Common Stockholders |
| 108.72M | 70.17M | 52.95M | 42.66M | 23.31M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 315.91M | 90.22M | 184.50M | 48.58M | 40.86M | Total Assets |
| 716.25M | 377.82M | 424.19M | 249.20M | 211.56M | Total Debt |
| 59.23M | 714.71M | 714.15M | 469.39M | 470.53M | Net Debt |
| -256.68M | 624.49M | 529.65M | 420.81M | 429.68M | Total Liabilities |
| 1.39B | 835.19M | 815.05M | 558.73M | 552.88M | Stockholders Equity |
| -675.59M | -457.37M | -390.86M | -309.52M | -341.31M |
| Cash Flow | Free Cash Flow | |||
| 105.68M | 80.77M | 52.30M | 20.86M | 59.48M | Operating Cash Flow |
| 157.61M | 121.60M | 76.24M | 48.88M | 65.53M | Investing Cash Flow |
| -62.48M | -52.15M | -28.68M | -29.85M | -7.99M | Financing Cash Flow |
| 144.76M | -155.49M | 103.25M | -23.39M | -19.45M |
Wingstop Technical Analysis
Negative
230.60
Price Trends
279.73
Negative
309.52
Negative
350.82
Negative
Market Momentum
-18.60
Positive
31.89
Neutral
26.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WING, the sentiment is Negative. The current price of 230.6 is below the 20-day moving average (MA) of 267.54, below the 50-day MA of 279.73, and below the 200-day MA of 350.82, indicating a bearish trend. The MACD of -18.60 indicates Positive momentum. The RSI at 31.89 is Neutral, neither overbought nor oversold. The STOCH value of 26.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WING.
Wingstop Risk Analysis
Wingstop disclosed 36 risk factors in its most recent earnings report. Wingstop reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Wingstop Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $44.21B | 30.38 | -19.43% | 1.72% | 6.68% | -7.09% | |
72 Outperform | C$42.81B | 21.76 | 32.83% | 3.57% | 21.63% | -14.75% | |
71 Outperform | $16.52B | 28.86 | -14.74% | 1.25% | 5.07% | 13.74% | |
67 Neutral | $1.52B | 18.37 | -20.16% | 3.94% | -3.57% | 2.31% | |
66 Neutral | $2.99B | 15.79 | 68.30% | 6.70% | 2.98% | -2.58% | |
61 Neutral | $6.58B | 62.03 | -16.09% | 0.43% | 36.03% | 57.51% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% |
* Consumer Cyclical Sector Average
Performance Comparison
WING
Wingstop
230.60
-137.80
-37.40%
DPZ
Domino's Pizza
476.18
34.80
7.88%
PZZA
Papa John's International
44.79
-23.57
-34.48%
WEN
Wendy's
14.95
-2.62
-14.91%
YUM
Yum! Brands
159.37
22.51
16.45%
TSE:QSR
Restaurant Brnd International
95.60
-10.68
-10.05%
Wingstop Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -24.65% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
Wingstop reported strong financial and operational performance in 2024, achieving record growth in sales and restaurant expansion. The introduction of new technology and a focus on digital transformation have positioned the company for future success. While there are challenges related to cost increases and macroeconomic pressures, the overall sentiment is positive due to the significant highlights outweighing the lowlights.Highlights
Record Year Achievements
Wingstop achieved record top and bottom line results in 2024, with 21 consecutive years of same-store sales growth. Domestic same-store sales grew by 19.9%, and system-wide sales increased by 36.8% to $4.8 billion.
Significant Restaurant Expansion
Opened a record 349 net new restaurants, delivering a 15.8% unit growth. The development pipeline is strong with nearly 2,000 restaurant commitments.
Digital and Technological Advancements
Digital sales mix increased to 70%, and the My Wingstop platform was launched, leading to a 30% growth in the digital database to over 50 million customers.
International Growth
Ended the year with 359 international locations and successfully added the eleventh market in the fourth quarter.
Strong Financial Performance
Adjusted EBITDA increased 44.8% to $212 million for the year, with a fourth-quarter increase of 44% to $56.3 million.
Shareholder Returns
Returned nearly $1 billion of capital to shareholders over the past decade, with a total shareholder return of nearly 2,000%.
Lowlights
Increased Cost of Sales
Overall cost of sales as a percentage of company-owned restaurant sales rose by 250 basis points in Q4 compared to the prior year.
Macroeconomic Pressures
Acknowledged consumer anxiety about the future and macroeconomic uncertainty, particularly in markets like California.
Impact of Wildfires
Noted the impact of wildfires in Southern California, which affected operations and consumer behavior.
Company Guidance
During the Wingstop fiscal fourth quarter and full year 2024 earnings call, key metrics highlighted included a domestic same-store sales growth of 19.9% for the year, driven primarily by transactions, leading to a two-year stacked comp of 38%. The company achieved system-wide sales growth of 36.8% to $4.8 billion and adjusted EBITDA increased by 44.8% to $212 million. Wingstop opened a record 349 net new restaurants, marking a 15.8% unit growth. In the fourth quarter alone, 105 net new restaurants were opened, contributing to a 10.1% same-store sales growth, with a digital sales mix reaching 70%. Looking ahead to 2025, Wingstop anticipates a global unit growth rate of 14% to 15% and provides guidance for low to mid-single-digit same-store sales growth. The company also outlined its strategic focus on scaling brand awareness, menu innovation, and leveraging digital transformation, aiming to grow average unit volumes (AUVs) to $3 million and expand global units to over 10,000 restaurants.Wingstop Corporate Events
Executive/Board Changes
Wingstop Appoints Thomas R. Greco to Board
Neutral
Dec 18, 2024
Wingstop Inc. has expanded its Board of Directors from nine to ten members, appointing Thomas R. Greco as a new independent Class I director. Greco’s extensive experience, including leadership roles at Advance Auto Parts and PepsiCo, is expected to strengthen Wingstop’s board, potentially impacting its strategic direction and governance.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.