NasdaqGS:WING

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Wingstop Inc., together with its subsidiaries, franchises and operates restaurants under the Wingstop brand name. More Details


Snowflake Analysis

Solid track record with limited growth.


Similar Companies

Share Price & News

How has Wingstop's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WING is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: WING's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-1.2%

WING

3.5%

US Hospitality

1.5%

US Market


1 Year Return

55.2%

WING

-3.7%

US Hospitality

22.3%

US Market

Return vs Industry: WING exceeded the US Hospitality industry which returned -5% over the past year.

Return vs Market: WING exceeded the US Market which returned 22.1% over the past year.


Shareholder returns

WINGIndustryMarket
7 Day-1.2%3.5%1.5%
30 Day-3.5%25.2%8.8%
90 Day-12.8%18.3%10.8%
1 Year61.9%55.2%-2.4%-3.7%25.1%22.3%
3 Year262.6%206.0%3.9%-2.5%49.5%39.6%
5 Year634.0%453.3%47.9%33.3%105.8%83.3%

Long-Term Price Volatility Vs. Market

How volatile is Wingstop's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Wingstop undervalued compared to its fair value and its price relative to the market?

112.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WING ($124.54) is trading above our estimate of fair value ($41.72)

Significantly Below Fair Value: WING is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WING is poor value based on its PE Ratio (112.3x) compared to the US Hospitality industry average (35.3x).

PE vs Market: WING is poor value based on its PE Ratio (112.3x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: WING is poor value based on its PEG Ratio (5.8x)


Price to Book Ratio

PB vs Industry: WING has negative assets, so we can't compare its PB Ratio to the US Hospitality industry average.


Next Steps

Future Growth

How is Wingstop forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

19.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WING's forecast earnings growth (19.2% per year) is above the savings rate (2.2%).

Earnings vs Market: WING's earnings (19.2% per year) are forecast to grow slower than the US market (21.9% per year).

High Growth Earnings: WING's earnings are forecast to grow, but not significantly.

Revenue vs Market: WING's revenue (12.2% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: WING's revenue (12.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if WING's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Wingstop performed over the past 5 years?

16.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WING has high quality earnings.

Growing Profit Margin: WING's current net profit margins (13.7%) are higher than last year (10.6%).


Past Earnings Growth Analysis

Earnings Trend: WING's earnings have grown by 16.7% per year over the past 5 years.

Accelerating Growth: WING's earnings growth over the past year (65%) exceeds its 5-year average (16.7% per year).

Earnings vs Industry: WING earnings growth over the past year (65%) exceeded the Hospitality industry -52.1%.


Return on Equity

High ROE: WING's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Wingstop's financial position?


Financial Position Analysis

Short Term Liabilities: WING has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: WING has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: WING has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: WING's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: WING's debt is not well covered by operating cash flow (17.4%).

Interest Coverage: WING's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Wingstop current dividend yield, its reliability and sustainability?

0.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WING's dividend (0.45%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.49%).

High Dividend: WING's dividend (0.45%) is low compared to the top 25% of dividend payers in the US market (4.1%).


Stability and Growth of Payments

Stable Dividend: WING is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: WING is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: WING is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WING's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Charlie Morrison (52 yo)

8.5yrs

Tenure

US$6,462,605

Compensation

Mr. Charles R. Morrison, also known as Charlie, has been the Chief Executive Officer and President at Wingstop Restaurants, Inc. and Wingstop Inc. since June 12, 2012. Mr. Morrison has more than 20 years o...


CEO Compensation Analysis

Compensation vs Market: Charlie's total compensation ($USD6.46M) is about average for companies of similar size in the US market ($USD5.19M).

Compensation vs Earnings: Charlie's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Charles Morrison
Chairman8.5yrsUS$6.46m0.26%
$ 9.4m
Michael Skipworth
Executive VP & CFO3.5yrsUS$1.19m0.038%
$ 1.4m
Christina Clarke
Senior VP & Chief Marketing Officer1.25yrsUS$562.51k0.0045%
$ 167.8k
Madison Jobe
Senior VP & Chief Development Officer3.75yrsUS$853.92k0.020%
$ 741.9k
Mahesh Sadarangani
Senior VP & COO0.92yrno data0.0012%
$ 45.5k
Stacy Androes
Executive VP & Chief Technology Officer0.58yrUS$1.19m0.023%
$ 861.3k
Albert McGrath
Senio VP0.75yrno datano data
Donnie Upshaw
Senior Vice President of People1.08yrsno datano data
Kevin Fish
Senior Vice President of Digital1.75yrsno datano data
Nicolas Boudet
Senior VP & President of Internationalno datano data0.0015%
$ 57.3k
Marisa J. Carona
Chief of Staff & VP of Strategy1.42yrsno datano data

1.3yrs

Average Tenure

46.5yo

Average Age

Experienced Management: WING's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Charles Morrison
Chairman8.5yrsUS$6.46m0.26%
$ 9.4m
Michael Hislop
Independent Director9.17yrsUS$107.50k0.036%
$ 1.3m
Wesley McDonald
Independent Director4.58yrsUS$117.50k0.015%
$ 571.9k
David Goebel
Independent Director3.08yrsUS$105.00k0.012%
$ 455.1k
Kate Lavelle
Independent Director1.75yrsUS$97.88k0.0052%
$ 190.8k
Lynn Crump-Caine
Lead Independent Director3.75yrsUS$125.00k0.016%
$ 597.4k
Krishnan Anand
Independent Director2.33yrsUS$102.50k0.0077%
$ 284.3k
Kilandigalu Madati
Independent Director3.75yrsUS$105.00k0.014%
$ 515.3k

3.8yrs

Average Tenure

59.5yo

Average Age

Experienced Board: WING's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Wingstop Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wingstop Inc.
  • Ticker: WING
  • Exchange: NasdaqGS
  • Founded: 1994
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$3.697b
  • Shares outstanding: 29.68m
  • Website: https://www.wingstop.com

Number of Employees


Location

  • Wingstop Inc.
  • 5501 LBJ Freeway
  • 5th Floor
  • Dallas
  • Texas
  • 75240
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WINGNasdaqGS (Nasdaq Global Select)YesNew Common StockUSUSDJun 2015
EWGDB (Deutsche Boerse AG)YesNew Common StockDEEURJun 2015

Biography

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, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/04 23:46
End of Day Share Price2020/12/04 00:00
Earnings2020/09/26
Annual Earnings2019/12/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.