NasdaqGS:WING

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Moderate growth potential with acceptable track record.


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


Market Performance


7 Day Return

-7.4%

WING

0.8%

US Hospitality

0.4%

US Market


1 Year Return

27.4%

WING

10.9%

US Hospitality

11.4%

US Market

Return vs Industry: WING exceeded the US Hospitality industry which returned 10.9% over the past year.

Return vs Market: WING exceeded the US Market which returned 11.4% over the past year.


Shareholder returns

WINGIndustryMarket
7 Day-7.4%0.8%0.4%
30 Day-2.6%-1.3%0.3%
90 Day-13.0%-5.2%-1.2%
1 Year34.4%27.4%13.6%10.9%13.9%11.4%
3 Year259.5%215.8%45.2%35.5%47.2%37.6%
5 Yearn/a39.2%23.9%62.4%44.6%

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?

122.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WING ($84.32) is trading above our estimate of fair value ($35.44)

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 (122.2x) compared to the Hospitality industry average (21.9x).

PE vs Market: WING is poor value based on its PE Ratio (122.2x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: WING is poor value based on its PEG Ratio (6.2x)


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 20 analysts?

19.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WING's forecast earnings growth (19.8% per year) is above the savings rate (2.7%).

Earnings vs Market: WING's earnings (19.8% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: WING's revenue (12% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: WING's revenue (12% 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?

25.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WING's earnings have grown significantly by 25.6% 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 (-21.4%) over the past year, making it difficult to compare to the Hospitality industry average (-13.9%).


Return on Equity

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


Return on Assets

ROA vs Industry: WING has a higher Return on Assets than the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: WING has significantly improved its Return on Capital Employed over the past 3 years.


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 (10.2%).

Interest Coverage: WING's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet

Inventory Level: WING has a low level of unsold assets or inventory.

Debt Coverage by Assets: WING has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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

4.14%

Current Dividend Yield


Dividend Yield vs Market

company4.1%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years0.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WING's dividend (4.14%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: WING's dividend (4.14%) is in the top 25% of dividend payers in the US market (3.68%)

Stable Dividend: Whilst dividend payments have been stable, WING has been paying a dividend for less than 10 years.

Growing Dividend: WING's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.2%), WING's dividend payments are covered by earnings.


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

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

2.5yrs

Average management tenure


CEO

Charlie Morrison (51yo)

7.3yrs

Tenure

US$4,463,539

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 ($USD4.46M) is about average for companies of similar size in the US market ($USD5.12M).

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


Management Age and Tenure

2.5yrs

Average Tenure

52.5yo

Average Age

Experienced Management: WING's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

58.5yo

Average Age

Experienced Board: WING's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: WING insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$111,17103 Sep 19
Charles Morrison
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,100
Max PriceUS$101.06
SellUS$30,00204 Jun 19
Maurice Cooper
EntityIndividual
Shares380
Max PriceUS$78.95
SellUS$220,14114 May 19
Madison Jobe
EntityIndividual
Role
Senior Key Executive
Chief Development Officer
Shares2,823
Max PriceUS$77.98
SellUS$50,45009 Mar 19
Darryl Marsch
EntityIndividual
Shares769
Max PriceUS$65.60
SellUS$21,12509 Mar 19
Maurice Cooper
EntityIndividual
Shares322
Max PriceUS$65.60
SellUS$49,00709 Mar 19
Madison Jobe
EntityIndividual
Role
Senior Key Executive
Chief Development Officer
Shares747
Max PriceUS$65.60
SellUS$53,99309 Mar 19
Michael Skipworth
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares823
Max PriceUS$65.60

Ownership Breakdown


Management Team

  • Charlie Morrison (51yo)

    Chairman

    • Tenure: 7.3yrs
    • Compensation: US$4.46m
  • Madison Jobe (64yo)

    Chief Development Officer

    • Tenure: 2.6yrs
  • Michael Skipworth (41yo)

    Executive VP & CFO

    • Tenure: 2.3yrs
    • Compensation: US$1.59m
  • Larry Kruguer (54yo)

    Executive VP & COO

    • Tenure: 4.3yrs
    • Compensation: US$1.26m
  • Kevin Fish

    Senior Vice President of Digital

    • Tenure: 0.6yrs
  • Christina Clarke

    Interim Chief Marketing Officer

    • Tenure: 0.08yrs

Board Members

  • Mike Hislop (64yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: US$159.58k
  • Wes McDonald (56yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$121.63k
  • David Goebel (68yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$105.82k
  • Kate Lavelle (54yo)

    Independent Director

    • Tenure: 0.6yrs
  • Charlie Morrison (51yo)

    Chairman

    • Tenure: 7.3yrs
    • Compensation: US$4.46m
  • Lynn Crump-Caine (63yo)

    Lead Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$126.93k
  • Kandy Anand (61yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$69.45k
  • Kay Madati (46yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$105.06k

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$2.483b
  • Shares outstanding: 29.44m
  • 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 cooked-to-order, hand-sauced, and tossed chicken wings. As of May 07, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/24 00:16
End of Day Share Price2019/10/23 00:00
Earnings2019/06/29
Annual Earnings2018/12/29


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.