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1. Company Snapshot

1.a. Company Description

Wingstop Inc., together with its subsidiaries, franchises and operates restaurants under the Wingstop brand name.Its restaurants offer classic wings, boneless wings, and tenders that are cooked-to-order, and hand-sauced-and-tossed in various flavors.As of December 25, 2021, the company had 1,695 franchised restaurants and 36 company-owned restaurants in 44 states and 7 countries worldwide.


Wingstop Inc.was founded in 1994 and is headquartered in Addison, Texas.

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1.b. Last Insights on WING

Breaking News: Wingstop Inc recently made headlines with its stock closing at $168.53, up 1.5% from the previous trading session. Despite recent same-store sales declines, the company is rated a Buy due to expected operational recovery, digital demand monetization, and robust unit growth. The declines are attributed to delivery bottlenecks, not demand weakness. Wingstop's rollout of smart kitchen tech is expected to restore same-store sales growth. Analysts recommend a Buy, citing leverage from an existing 60M digital user base through Club Wingstop.

1.c. Company Highlights

2. Wingstop's Strong 2025 Results Showcase Resiliency and Growth

Wingstop's 2025 results demonstrated the company's resiliency and growth, with system-wide sales reaching over $5 billion, marking a significant achievement. The company's adjusted EBITDA growth of 15% in 2025 highlights the durability and consistency of its asset-light, capital-efficient model. Earnings per share (EPS) came in at $0.963, beating estimates of $0.84. Revenue growth was driven by the opening of 493 new restaurants globally, resulting in a significant increase in system-wide sales. The company's royalty revenue, franchise fees, and other revenue increased by 8% to $81.9 million in the fourth quarter.

Publication Date: Feb -19

📋 Highlights
  • System-wide sales growth: reached 12% in 2025 ($5 billion+), despite a 3% domestic same-store sales decline.
  • Restaurant expansion: achieved 3,000 total units, with 493 new openings (95% increase from 2023) and 6 new international markets launched.
  • Adjusted EBITDA growth: surged 15% to $61.9 million, driven by the asset-light model and strong franchise fee revenue ($81.9 million in Q4).
  • Loyalty program success: saw 50% of active guests enrolled in Club Wingstop, boosting transaction frequency by 7% among participants.
  • Smart Kitchen impact: improved lunchday transactions and delivery times, with 50% of restaurants meeting the 10-minute ticket speed target.

Operational Highlights

The rollout of the Wingstop Smart Kitchen has been a key focus for the company, and it has shown encouraging results, including improved customer frequency and reduced delivery times. The company is now measuring the new Wingstop standard, with the Wingstop Smart Kitchen installed in all domestic restaurants. The data is very encouraging, and the company is working to ensure consistent execution at every moment it interacts with guests. As Michael Skipworth, President and Chief Executive Officer, noted, "We're seeing early proof points, including improved customer frequency, increased transactions at the lunch daypart, and a reduction in delivery times."

Growth Prospects

Wingstop is well-positioned for growth, with a committed pipeline that provides line of sight into delivering mid-teens unit growth in 2026. The company expects global unit development to be between 15% and 16% in 2026, with a focus on executing its strategies to expand awareness and consideration, bring in new guests, and increase frequency among current guests. The company's international business is also expected to drive growth, with unit growth expected to be around 30% again in 2026.

Valuation

Wingstop's valuation metrics indicate a premium rating, with a P/E Ratio of 44.36 and an EV/EBITDA of 25.57. The company's P/S Ratio is 11.13, indicating a high revenue multiple. Analysts estimate next year's revenue growth at 17.0%, which may justify the premium valuation. However, investors should consider the company's ROE of -24.54% and Net Debt / EBITDA of -0.45 when evaluating the stock's attractiveness.

Loyalty Program and Marketing Initiatives

The company's new loyalty program, Club Wingstop, has shown encouraging results, with nearly 50% of active guests enrolling and a 7% increase in frequency among guests in the program. The company is also investing in marketing initiatives, including the "Wingstop is Here" campaign, which has performed well, with the highest brand call on record and a 20% growth in the digital database.

3. NewsRoom

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Wingstop (WING) Increases Yet Falls Behind Market: What Investors Need to Know

Apr -08

Source:

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Wingstop: The Same-Store Sales Decline Is Priced In, The Recovery Catalysts Are Not

Apr -08

Source: seekingalpha.com

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Wingstop Upgraded to Buy by Citi With $230 Target as Second-Half Recovery Comes Into View

Apr -07

Source: 247wallst.com

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Top 25 High-Growth Dividend Stocks For April 2026

Apr -07

Source: seekingalpha.com

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Here Are Tuesday’s Top Wall Street Analyst Research Calls: Ameriprise Financial, Arista Networks, Arm Holdings, Lennar, Morgan Stanley, Rocket Lab, Tractor Supply, Wingstop, Wix.com and More

Apr -07

Source: 247wallst.com

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The Flavor Experts Bring a Burst of Fresh, Bold Flavor with Citrus Mojo

Apr -06

Source: prnewswire.com

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Allspring Global Investments Holdings LLC Has $31.56 Million Stock Holdings in Wingstop Inc. $WING

Apr -03

Source: defenseworld.net

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Wingstop (NASDAQ:WING) Trading 6.2% Higher Following Analyst Upgrade

Apr -03

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.57%)

6. Segments

Royalty, Franchise Fees and Other

Expected Growth: 12%

Wingstop's 12% growth in Royalty, Franchise Fees, and Other is driven by increasing same-store sales, unit expansion, and higher average royalty rates. Additionally, the company's strategic initiatives, such as digital transformation and menu innovation, contribute to the growth. Furthermore, the rise of delivery and online ordering also boosts royalty income, while franchisees' investments in restaurant remodels and technology upgrades support franchise fee growth.

Advertising Fees

Expected Growth: 10%

Wingstop Inc.'s 10% growth in Advertising Fees is driven by increasing brand awareness, expansion into new markets, and a shift towards digital advertising. Additionally, the company's focus on loyalty programs, online ordering, and delivery services has led to higher advertising spend. Furthermore, Wingstop's franchise model allows for collective advertising efforts, resulting in increased advertising fees.

Company-owned Restaurant

Expected Growth: 18%

Wingstop Inc.'s company-owned restaurant segment growth of 18% is driven by increasing same-store sales, expansion of digital capabilities, and strategic menu pricing. Additionally, the company's focus on operational efficiency, marketing initiatives, and unit growth in high-demand markets contribute to the segment's growth.

7. Detailed Products

Wings

Wingstop's signature product, offering a variety of flavors and sauces to choose from, including Atomic, Mango Habanero, and Lemon Pepper.

Tenders

Breaded and cooked to a crispy perfection, our tenders are a great alternative to wings, with the same great flavors and sauces.

Fries

Thick-cut and cooked to a crispy perfection, our fries are the perfect side dish to complement our wings and tenders.

Veggie Sticks

A healthier alternative to fries, our veggie sticks are a crispy and tasty snack option.

Desserts

A sweet treat to finish off your meal, our desserts include options like chocolate chip cookies and brownies.

Combo Meals

A convenient and affordable way to get a complete meal, our combo meals include a combination of wings, tenders, fries, and a drink.

Catering

Wingstop's catering service offers a variety of options for events and parties, including wings, tenders, and sides.

8. Wingstop Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Wingstop's menu items are highly differentiated, and customers are loyal to the brand. The threat of substitutes is low.

Bargaining Power Of Customers

Wingstop's customers have some bargaining power due to the presence of competitors, but the brand's loyalty program and customer retention strategies mitigate this power.

Bargaining Power Of Suppliers

Wingstop has a diversified supplier base, and the company's scale of operations gives it bargaining power over suppliers.

Threat Of New Entrants

While there are barriers to entry in the fast-casual restaurant industry, new entrants can still pose a threat to Wingstop. However, the company's strong brand recognition and operational efficiency provide a competitive advantage.

Intensity Of Rivalry

The fast-casual restaurant industry is highly competitive, with many established players competing for market share. Wingstop must continually innovate and improve its offerings to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 277.73%
Debt Cost 3.95%
Equity Weight -177.73%
Equity Cost 12.10%
WACC -10.54%
Leverage -156.27%

11. Quality Control: Wingstop Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Darden

A-Score: 6.1/10

Value: 4.0

Growth: 6.0

Quality: 5.4

Yield: 6.0

Momentum: 6.0

Volatility: 9.0

1-Year Total Return ->

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Wendy's

A-Score: 5.6/10

Value: 6.3

Growth: 5.9

Quality: 4.8

Yield: 9.0

Momentum: 0.0

Volatility: 7.3

1-Year Total Return ->

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Texas Roadhouse

A-Score: 5.4/10

Value: 2.6

Growth: 8.2

Quality: 5.5

Yield: 4.0

Momentum: 4.0

Volatility: 8.3

1-Year Total Return ->

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Domino's Pizza

A-Score: 5.4/10

Value: 4.2

Growth: 6.4

Quality: 6.0

Yield: 3.0

Momentum: 4.0

Volatility: 8.7

1-Year Total Return ->

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Brinker

A-Score: 4.7/10

Value: 4.7

Growth: 8.0

Quality: 5.4

Yield: 0.0

Momentum: 6.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Wingstop

A-Score: 4.4/10

Value: 2.5

Growth: 9.4

Quality: 6.9

Yield: 1.0

Momentum: 3.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.03$

Current Price

179.89$

Potential

-99.43%

Expected Cash-Flows