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Wingstop

Nasdaq:WING
Snowflake Description

Moderate growth potential with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WING
Nasdaq
$2B
Market Cap
  1. Home
  2. US
  3. Consumer Services
Company description

Wingstop Inc., together with its subsidiaries, franchises and operates restaurants under the Wingstop brand name. The last earnings update was 27 days ago. More info.


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WING Share Price and Events
7 Day Returns
1.8%
NasdaqGS:WING
0.1%
US Hospitality
-1.1%
US Market
1 Year Returns
52.1%
NasdaqGS:WING
-5%
US Hospitality
5.8%
US Market
WING Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Wingstop (WING) 1.8% 5.6% 18.7% 52.1% 210.9% -
US Hospitality 0.1% -2.6% 24.2% -5% 36.5% 17.8%
US Market -1.1% -0.2% 19.7% 5.8% 37.9% 41.7%
1 Year Return vs Industry and Market
  • WING outperformed the Hospitality industry which returned -5% over the past year.
  • WING outperformed the Market in United States of America which returned 5.8% over the past year.
Price Volatility
WING
Industry
5yr Volatility vs Market

Value

 Is Wingstop undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Wingstop to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Wingstop.

NasdaqGS:WING Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:WING
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.96
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.96 (1 + (1- 21%) (14.73%))
1.048
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.05
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.048 * 5.96%)
8.98%

Discounted Cash Flow Calculation for NasdaqGS:WING using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Wingstop is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:WING DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.98%)
2019 34.01 Analyst x2 31.21
2020 36.96 Analyst x3 31.12
2021 41.00 Analyst x1 31.68
2022 51.00 Analyst x1 36.16
2023 65.00 Analyst x1 42.29
2024 74.37 Est @ 14.41% 44.40
2025 82.48 Est @ 10.91% 45.19
2026 89.46 Est @ 8.46% 44.97
2027 95.48 Est @ 6.74% 44.05
2028 100.77 Est @ 5.54% 42.65
Present value of next 10 years cash flows $393.71
NasdaqGS:WING DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $100.77 × (1 + 2.73%) ÷ (8.98% – 2.73%)
$1,656.97
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,656.97 ÷ (1 + 8.98%)10
$701.36
NasdaqGS:WING Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $393.71 + $701.36
$1,095.07
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,095.07 / 29.33
$37.33
NasdaqGS:WING Discount to Share Price
Calculation Result
Value per share (USD) From above. $37.33
Current discount Discount to share price of $72.16
= -1 x ($72.16 - $37.33) / $37.33
-93.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Wingstop is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Wingstop's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Wingstop's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:WING PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-29) in USD $0.74
NasdaqGS:WING Share Price ** NasdaqGS (2019-03-25) in USD $72.16
United States of America Hospitality Industry PE Ratio Median Figure of 73 Publicly-Listed Hospitality Companies 21.19x
United States of America Market PE Ratio Median Figure of 3,061 Publicly-Listed Companies 17.17x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Wingstop.

NasdaqGS:WING PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:WING Share Price ÷ EPS (both in USD)

= 72.16 ÷ 0.74

97.12x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wingstop is overvalued based on earnings compared to the US Hospitality industry average.
  • Wingstop is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Wingstop's expected growth come at a high price?
Raw Data
NasdaqGS:WING PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 97.12x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
14.5%per year
United States of America Hospitality Industry PEG Ratio Median Figure of 53 Publicly-Listed Hospitality Companies 1.46x
United States of America Market PEG Ratio Median Figure of 2,104 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

NasdaqGS:WING PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 97.12x ÷ 14.5%

6.71x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wingstop is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Wingstop's assets?
Raw Data
NasdaqGS:WING PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-29) in USD $-7.67
NasdaqGS:WING Share Price * NasdaqGS (2019-03-25) in USD $72.16
United States of America Hospitality Industry PB Ratio Median Figure of 107 Publicly-Listed Hospitality Companies 2.14x
United States of America Market PB Ratio Median Figure of 5,166 Publicly-Listed Companies 1.85x
NasdaqGS:WING PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:WING Share Price ÷ Book Value per Share (both in USD)

= 72.16 ÷ -7.67

-9.4x

* Primary Listing of Wingstop.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wingstop has negative assets, we can't compare the value of its assets to the US Hospitality industry average.
X
Value checks
We assess Wingstop's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Wingstop has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Wingstop expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
14.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Wingstop expected to grow at an attractive rate?
  • Wingstop's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Wingstop's earnings growth is expected to exceed the United States of America market average.
  • Wingstop's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:WING Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:WING Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 14.5%
NasdaqGS:WING Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 12.8%
United States of America Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 11%
United States of America Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 9.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:WING Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:WING Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 318 51 1
2022-12-31 286 40 1
2021-12-31 237 34 5
2020-12-31 211 42 29 14
2019-12-31 188 36 23 14
2018-12-31 153 38 25 11
NasdaqGS:WING Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-29 153 39 22
2018-09-29 120 38 31
2018-06-30 115 34 29
2018-03-31 110 29 27
2017-12-30 133 27 24
2017-09-30 123 27 20
2017-07-01 112 24 18
2017-04-01 103 23 17
2016-12-31 103 22 14
2016-09-24 87 21 15
2016-06-25 85 22 15
2016-03-26 81 18 12

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Wingstop's earnings are expected to grow by 14.5% yearly, however this is not considered high growth (20% yearly).
  • Wingstop's revenue is expected to grow by 12.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:WING Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from Wingstop Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:WING Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1.73 1.73 1.73 1.00
2022-12-31 1.34 1.34 1.34 1.00
2021-12-31 1.13 1.28 1.02 3.00
2020-12-31 0.97 1.14 0.84 11.00
2019-12-31 0.77 0.85 0.68 11.00
2018-12-31 0.82 0.83 0.81 8.00
NasdaqGS:WING Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-29 0.74
2018-09-29 1.05
2018-06-30 1.00
2018-03-31 0.94
2017-12-30 0.82
2017-09-30 0.70
2017-07-01 0.63
2017-04-01 0.61
2016-12-31 0.48
2016-09-24 0.52
2016-06-25 0.54
2016-03-26 0.42

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Wingstop will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Wingstop's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Wingstop has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Wingstop performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Wingstop's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Wingstop has delivered over 20% year on year earnings growth in the past 5 years.
  • Wingstop's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Wingstop's 1-year earnings growth is negative, it can't be compared to the US Hospitality industry average.
Earnings and Revenue History
Wingstop's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Wingstop Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:WING Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-29 153.18 21.72 42.18
2018-09-29 120.11 30.74 42.40
2018-06-30 114.99 29.15 40.17
2018-03-31 109.53 27.22 38.28
2017-12-30 133.32 23.94 34.90
2017-09-30 122.86 20.18 35.26
2017-07-01 111.55 18.23 34.04
2017-04-01 102.70 17.40 34.43
2016-12-31 103.32 13.77 34.55
2016-09-24 87.18 14.92 33.01
2016-06-25 84.51 15.34 33.49
2016-03-26 81.02 11.84 31.34
2015-12-26 77.97 10.11 30.05
2015-09-26 75.45 7.81 29.94
2015-06-27 72.73 6.63 28.48
2015-03-28 69.80 8.56 27.62
2014-12-27 67.45 8.99 26.01
2013-12-28 59.00 7.53 18.91
2012-12-29 51.59 3.58 15.90

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Wingstop has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • Wingstop used its assets more efficiently than the US Hospitality industry average last year based on Return on Assets.
  • Wingstop has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Wingstop's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Wingstop has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Wingstop's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Wingstop's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Wingstop is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Wingstop's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Wingstop's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Wingstop has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Wingstop Company Filings, last reported 2 months ago.

NasdaqGS:WING Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-29 -224.83 311.77 12.49
2018-09-29 -136.26 214.85 3.02
2018-06-30 -140.70 219.57 3.15
2018-03-31 -146.51 222.79 3.85
2017-12-30 -58.42 133.34 4.06
2017-09-30 -57.67 140.19 4.59
2017-07-01 -61.23 141.03 4.45
2017-04-01 -67.26 144.87 3.44
2016-12-31 -74.63 150.72 3.75
2016-09-24 -79.95 157.43 3.83
2016-06-25 -0.10 85.07 10.01
2016-03-26 -4.77 85.04 8.32
2015-12-26 -9.67 95.01 10.69
2015-09-26 -14.30 95.50 5.72
2015-06-27 -17.45 100.50 4.88
2015-03-28 -54.05 132.50 2.90
2014-12-27 -8.99 93.72 9.72
2013-12-28 -20.26 102.50 3.17
2012-12-29
  • Wingstop has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if Wingstop's debt level has increased considering it has negative shareholder equity.
  • Debt is not well covered by operating cash flow (12.4%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4x coverage).
X
Financial health checks
We assess Wingstop's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Wingstop has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.73%
Current annual income from Wingstop dividends. Estimated to be 0.52% next year.
If you bought $2,000 of Wingstop shares you are expected to receive $95 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Wingstop's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).
  • Wingstop's dividend is above the markets top 25% of dividend payers in United States of America (3.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:WING Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
United States of America Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 46 Stocks 2.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2003 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.9%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:WING Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.38 1.00
2020-12-31 0.37 2.00
2019-12-31 0.37 2.00
2018-12-31 3.51 2.00
NasdaqGS:WING Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-10-29 3.410 5.180
2018-08-02 3.530 5.362
2018-05-04 3.450 6.650
2018-05-03 3.450 6.733
2018-01-30 3.450 7.264
2017-11-03 0.280 0.686
2017-11-02 0.280 0.819
2017-08-04 0.280 0.841
2017-08-03 0.280 0.899
2015-06-12 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Wingstop has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Wingstop only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of Wingstop's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.3x coverage).
Future Payout to shareholders
  • No need to calculate the sustainability of Wingstop's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Wingstop's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Wingstop afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Wingstop has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Wingstop's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Charlie Morrison
COMPENSATION $2,761,084
AGE 50
TENURE AS CEO 6.8 years
CEO Bio

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 of financial and leadership (restaurant) experience. He served as the Chief Executive Officer of Pizza Inn Holdings, Inc. (also known as Pizza Inn Inc.), from December 14, 2007 to June 6, 2012 and served as its President from December 2007 to June 6, 2012. He served as Chief Financial Officer of Pizza Inn Holdings, Inc. since January 2007. He served as Interim Chief Executive Officer of RAVE Restaurant Group, Inc. (alternative name Pizza Inn Holdings, Inc.) since August 2007. His primary responsibility for leading Pizza Inn's financial planning and accounting activities. He oversaw the chain's ongoing strategic planning efforts and also budgeting and accounting reporting requirements of Pizza Inn. Mr. Morrison served as President of Steak and Ale(R) and The Tavern Restaurants for Metromedia Restaurant Group as well as holding management positions at Kinko's, Boston Market and Pizza Hut for two consecutive years by improving operating profits. He served as the Chief Financial Officer of Steak and Ale(R) and Ponderosa(R) Restaurants since 2004. He served as Vice President of Finance of Kinko's, Inc., Director for Strategic Planning of Boston Market(R) and Director for Strategic Planning of Pizza Hut(R). Mr. Morrison has been the Chairman of Wingstop Inc. and Wingstop Restaurants, Inc. since March 13, 2017 and its Director since September 2012.

CEO Compensation
  • Charlie's compensation has increased by more than 20% in the past year.
  • Charlie's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Wingstop management team in years:

2.7
Average Tenure
52
Average Age
  • The tenure for the Wingstop management team is about average.
Management Team

Charlie Morrison

TITLE
Chairman
COMPENSATION
$3M
AGE
50
TENURE
6.8 yrs

Michael Skipworth

TITLE
Executive VP & CFO
COMPENSATION
$776K
AGE
40
TENURE
1.8 yrs

Larry Kruguer

TITLE
Executive VP & Chief Operating Officer
COMPENSATION
$765K
AGE
53
TENURE
3.8 yrs

Darryl Marsch

TITLE
Senior VP
AGE
52
TENURE
2.7 yrs

Madison Jobe

TITLE
Chief Development Officer
AGE
63
TENURE
2 yrs

Scott McLeod

TITLE
Senior Vice President of Operations

Maurice Cooper

TITLE
Executive VP and Chief Growth & Experience Officer

Kevin Fish

TITLE
Senior Vice President of Digital
Board of Directors Tenure

Average tenure and age of the Wingstop board of directors in years:

2
Average Tenure
57.5
Average Age
  • The average tenure for the Wingstop board of directors is less than 3 years, this suggests a new board.
Board of Directors

Charlie Morrison

TITLE
Chairman
COMPENSATION
$3M
AGE
50
TENURE
2 yrs

Mike Hislop

TITLE
Independent Director
COMPENSATION
$111K
AGE
63
TENURE
7.4 yrs

Wes McDonald

TITLE
Independent Director
COMPENSATION
$119K
AGE
55
TENURE
2.8 yrs

Lynn Crump-Caine

TITLE
Lead Independent Director
COMPENSATION
$126K
AGE
62
TENURE
2 yrs

Kay Madati

TITLE
Independent Director
COMPENSATION
$89K
AGE
45
TENURE
2 yrs

David Goebel

TITLE
Independent Director
COMPENSATION
$55K
AGE
67
TENURE
1.3 yrs

Kandy Anand

TITLE
Independent Director
AGE
60
TENURE
0.6 yrs

Kate Lavelle

TITLE
Independent Director
AGE
53
Who owns this company?
Recent Insider Trading
  • Wingstop insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
09. Mar 19 Sell Darryl Marsch Individual 07. Mar 19 07. Mar 19 -769 $65.60 $-50,450
09. Mar 19 Sell Madison Jobe Individual 07. Mar 19 07. Mar 19 -747 $65.60 $-49,007
09. Mar 19 Sell Maurice Cooper Individual 07. Mar 19 07. Mar 19 -322 $65.60 $-21,125
09. Mar 19 Sell Michael Skipworth Individual 07. Mar 19 07. Mar 19 -823 $65.60 $-53,993
09. Aug 18 Sell Charles Morrison Individual 08. Aug 18 08. Aug 18 -17,000 $60.13 $-1,022,179
22. May 18 Sell Lawrence Kruguer Individual 18. May 18 18. May 18 -353 $52.67 $-18,593
21. May 18 Sell Charles Morrison Individual 17. May 18 17. May 18 -10,000 $51.83 $-518,300
16. May 18 Sell Lawrence Kruguer Individual 14. May 18 14. May 18 -1,064 $51.45 $-54,743
10. May 18 Sell Stacy Peterson Individual 09. May 18 09. May 18 -8,000 $53.21 $-425,680
10. May 18 Sell Lawrence Kruguer Individual 08. May 18 08. May 18 -2,808 $54.37 $-152,671
X
Management checks
We assess Wingstop's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Wingstop has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Wingstop Inc. (NASDAQ:WING): Will The Growth Last?

(NASDAQ:WING) released its earnings update. … analyst consensus outlook appear cautiously subdued, … with earnings expected to grow by 5.3% in the upcoming year

Simply Wall St -

Our Take On Wingstop Inc.'s (NASDAQ:WING) CEO Salary

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Charlie Morrison's Compensation Compare With Similar Sized Companies. … is worth US$2.0b, and total annual CEO compensation is US$2.8m.

Simply Wall St -

Did You Miss Wingstop's Impressive 155% Share Price Gain?

(NASDAQ:WING) share price is 155% higher than it was three years ago. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Wingstop was able to grow its EPS at 26% per year over three years, sending the share price higher.

Simply Wall St -

What Is Wingstop Inc.'s (NASDAQ:WING) Share Price Doing?

saw a decent share price growth in the teens level on the NASDAQGS over the last few months. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … However, could the stock still be trading at a relatively cheap price

Simply Wall St -

Is Wingstop Inc.'s (NASDAQ:WING) High P/E Ratio A Problem For Investors?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll look at Wingstop Inc.'s (NASDAQ:WING) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Why Wingstop Inc.’s (NASDAQ:WING) Return On Capital Employed Is Impressive

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Brief Commentary On Wingstop Inc.'s (NASDAQ:WING) Fundamentals

I've been keeping an eye on Wingstop Inc. … Looking at the company as a whole, as a potential stock investment, I believe WING has a lot to offer. … dividend-paying company

Simply Wall St -

Is Wingstop Inc's (NASDAQ:WING) Stock Available For A Good Price After Accounting For Growth?

Wingstop Inc (NASDAQ:WING) is considered a high-growth stock, but its last closing price of $65.62 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … See our latest analysis for Wingstop? … Analysts are predicting good growth prospects for Wingstop over the next couple of years

Simply Wall St -

Does Market Volatility Impact Wingstop Inc's (NASDAQ:WING) Share Price?

If you're interested in Wingstop Inc (NASDAQ:WING), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

Is Now The Time To Look At Buying Wingstop Inc (NASDAQ:WING)?

led the NasdaqGS gainers with a relatively large price hike in the past couple of weeks. … As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … However, could the stock still be trading at a relatively cheap price.

Simply Wall St -

Company Info

Description

Wingstop Inc., together with its subsidiaries, franchises and operates restaurants under the Wingstop brand name. Its restaurants offer cooked-to-order, hand-sauced, and tossed chicken wings. As of December 29, 2018, the company operated approximately 1,252 restaurants in the United States, Mexico, Panama, Singapore, Indonesia, the United Arab Emirates, the United Kingdom, Malaysia, Saudi Arabia, and Colombia. Wingstop Inc. was founded in 1994 and is headquartered in Dallas, Texas.

Details
Name: Wingstop Inc.
WING
Exchange: NasdaqGS
Founded: 1994
$2,116,731,914
29,333,868
Website: http://www.wingstop.com
Address: Wingstop Inc.
5501 LBJ Freeway,
5th Floor,
Dallas,
Texas, 75240,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS WING New Common Stock Nasdaq Global Select US USD 12. Jun 2015
DB EWG New Common Stock Deutsche Boerse AG DE EUR 12. Jun 2015
Number of employees
Current staff
Staff numbers
416
Wingstop employees.
Industry
Restaurants
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/26 00:44
End of day share price update: 2019/03/25 00:00
Last estimates confirmation: 2019/03/13
Last earnings filing: 2019/02/27
Last earnings reported: 2018/12/29
Last annual earnings reported: 2018/12/29


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.