Wingstop (WING 3.72%) is riding the popularity of chicken wings as it aggressively expands its restaurant concept. While growth is the name of the game for the company, there's a subtle, but important, trend that's also helping to propel its success.
The stock market correction hasn't gone on very long, but there are more than a few growth stocks that are well off their highs.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
With both the Nasdaq Composite (^IXIC 2.61%) and the S&P 500 index (^GSPC 2.13%) having fallen into correction territory, there is clearly a lot of fear on Wall Street.
Wingstop's (WING 2.81%) name is absolutely accurate. It's a place where you can stop to buy chicken wings.
As Wingstop (WING 0.47%) nears the 10th anniversary of its June 2015 IPO, longtime shareholders of the restaurant chain have plenty to celebrate, as the stock has returned a fantastic 972%. On the other hand, the stock's prolific flight has faced some turbulence, with shares down about 46% from their 52-week high.
Shares of restaurant company Wingstop (WING 0.47%) dropped 21.2% in February, according to data provided by S&P Global Market Intelligence. On Feb. 19, the company reported its financial results for the fourth quarter of 2024, capping off its 21st consecutive year of same-store sales growth, which is a spectacular achievement.
It's been a rocky run for the market in recent days, but some stocks are trading well below their recent highs. Shares of Wingstop (WING -0.68%) and Duolingo (DUOL -2.48%) are trading 47% and 33% lower, respectively, since their earlier high-water marks.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
I am upgrading Wingstop stock to a "buy" with a $396 price target, representing a 70% upside potential after the stock has retracted from its highs from revenue deceleration. Despite tougher comps, the management is confident in achieving $3M AUV and expanding to 10,000 locations globally as it invests in digital transformation, brand awareness, and menu innovation. Meanwhile, the company has seen its digital sales grow to 70% of system-wide sales, as they drive personalized offers to drive higher volume and purchase frequency.
Shares of Wingstop slid ~15% after reporting a rare Q4 earnings miss. Same-store sales growth decelerated sharply to 10% y/y (from 21% in the previous quarter), and is expected to decline to the low/mid-single digits in FY25. Macro conditions and price increases risk alienating customers, while secular trends towards healthier eating challenge Wingstop's market position.
Shares of quickly growing chicken wing franchisor Wingstop (WING -6.77%) were down by 19% as of 1:50 p.m. ET Thursday, according to data provided by S&P Global Market Intelligence.