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WING

WingstopNasdaqGS:WING Stock Report

Last Price

US$139.86

Market Cap

US$4.2b

7D

-9.8%

1Y

-9.2%

Updated

21 Jan, 2022

Data

Company Financials +
WING fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance1/6
Financial Health1/6
Dividends0/6

WING Stock Overview

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

Wingstop Competitors

Domino's Pizza

NYSE:DPZ

US$16.5b

Texas Roadhouse

NasdaqGS:TXRH

US$5.7b

Wendy's

NasdaqGS:WEN

US$4.9b

Papa John's International

NasdaqGS:PZZA

US$4.2b

Price History & Performance

Summary of all time highs, changes and price drops for Wingstop
Historical stock prices
Current Share PriceUS$139.86
52 Week HighUS$187.35
52 Week LowUS$112.49
Beta1.27
1 Month Change-17.80%
3 Month Change-18.94%
1 Year Change-9.23%
3 Year Change106.34%
5 Year Change397.90%
Change since IPO357.21%

Recent News & Updates

Jan 05
Investors Shouldn't Overlook Wingstop's (NASDAQ:WING) Impressive Returns On Capital

Investors Shouldn't Overlook Wingstop's (NASDAQ:WING) Impressive Returns On Capital

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Firstly...

Nov 22

Wingstop: No Meat Left On The Bone At These Prices

Wingstop released its Q3 results earlier this month, reporting system-wide sales of ~$594 million, a 15% increase from the year-ago period. The strong performance was driven by industry-leading unit growth rates and another quarter of positive comp sales, despite lapping extremely difficult comps on a year-over-year basis. However, while this was another solid quarter for Wingstop and the future looks very bright, I continue to see no margin of safety baked in at current levels. Based on a share price of $174.00 and the stock trading at 94x FY2022 earnings estimates, I continue to believe there are much better ways to play the market currently.

Shareholder Returns

WINGUS HospitalityUS Market
7D-9.8%-5.0%-4.6%
1Y-9.2%-4.9%7.7%

Return vs Industry: WING matched the US Hospitality industry which returned -4.5% over the past year.

Return vs Market: WING underperformed the US Market which returned 10.2% over the past year.

Price Volatility

Is WING's price volatile compared to industry and market?
WING volatility
WING Average Weekly Movement6.2%
Hospitality Industry Average Movement7.8%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

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.

About the Company

FoundedEmployeesCEOWebsite
1994529Charlie Morrisonhttps://www.wingstop.com

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 26, 2020, the company had 1,506 franchised restaurants and 32 company-owned restaurants in 44 states and 10 countries worldwide.

Wingstop Fundamentals Summary

How do Wingstop's earnings and revenue compare to its market cap?
WING fundamental statistics
Market CapUS$4.17b
Earnings (TTM)US$29.35m
Revenue (TTM)US$273.76m

142.1x

P/E Ratio

15.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WING income statement (TTM)
RevenueUS$273.76m
Cost of RevenueUS$128.24m
Gross ProfitUS$145.52m
ExpensesUS$116.17m
EarningsUS$29.35m

Last Reported Earnings

Sep 25, 2021

Next Earnings Date

Feb 16, 2022

Earnings per share (EPS)0.98
Gross Margin53.16%
Net Profit Margin10.72%
Debt/Equity Ratio-149.3%

How did WING perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

60%

Payout Ratio

Valuation

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

142.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WING ($145.23) is trading above our estimate of fair value ($90)

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 (147.6x) compared to the US Hospitality industry average (26.6x).

PE vs Market: WING is poor value based on its PE Ratio (147.6x) compared to the US market (17x).


Price to Earnings Growth Ratio

PEG Ratio: WING is poor value based on its PEG Ratio (6.6x)


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.


Future Growth

How is Wingstop forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

22.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WING's forecast earnings growth (22.3% per year) is above the savings rate (2%).

Earnings vs Market: WING's earnings (22.3% per year) are forecast to grow faster than the US market (13% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WING's revenue (15.2% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: WING's revenue (15.2% 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


Past Performance

How has Wingstop performed over the past 5 years?

10.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WING has a large one-off loss of $13.1M impacting its September 25 2021 financial results.

Growing Profit Margin: WING's current net profit margins (10.7%) are lower than last year (13.7%).


Past Earnings Growth Analysis

Earnings Trend: WING's earnings have grown by 10.3% per year over the past 5 years.

Accelerating Growth: WING's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WING had negative earnings growth (-10.3%) over the past year, making it difficult to compare to the Hospitality industry average (79.7%).


Return on Equity

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


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 (15.5%).

Interest Coverage: WING's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet


Dividend

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

0.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WING's dividend (0.47%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: WING's dividend (0.47%) is low compared to the top 25% of dividend payers in the US market (3.48%).


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?

2.2yrs

Average management tenure


CEO

Charlie Morrison (53 yo)

9.58yrs

Tenure

US$6,010,462

Compensation

Mr. Charles R. Morrison, also known as Charlie, has been the Chief Executive Officer of Wingstop Restaurants, Inc. and Wingstop Inc. since June 12, 2012. Mr. Morrison has been the Chairman of Wingstop Inc....


CEO Compensation Analysis

Compensation vs Market: Charlie's total compensation ($USD6.01M) is about average for companies of similar size in the US market ($USD5.14M).

Compensation vs Earnings: Charlie's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: WING's management team is considered experienced (2.2 years average tenure).


Board Members

Experienced Board: WING's board of directors are considered experienced (4.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: WING insiders have only sold shares 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 employee growth, exchange listings and data sources


Key Information

  • Name: Wingstop Inc.
  • Ticker: WING
  • Exchange: NasdaqGS
  • Founded: 1994
  • Industry: Restaurants
  • Sector: Consumer Services
  • Implied Market Cap: US$4.171b
  • Shares outstanding: 29.83m
  • Website: https://www.wingstop.com

Number of Employees


Location

  • Wingstop Inc.
  • 15505 Wright Brothers Drive
  • Addison
  • Texas
  • 75001
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 00:12
End of Day Share Price2022/01/20 00:00
Earnings2021/09/25
Annual Earnings2020/12/26


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.