Investors In Wingstop Might Look Forward To More Special Dividends

Wedbush believes the initiation of recurring special dividends will drive growing awareness about Wingstop Inc's WING unique business model and its growing premium to peers. The firm sees continued upside relative to current expectations, thanks to same-store sales growth and margin outperformance.

Specifically, Wedbush expects third quarter earnings per share of $0.12 per share on revenues of $22.1 million, with the consensus at $0.12 in earnings per share and $21.8 million in revenues. Based on checks, the firm said the company's comp is tracking in line to above the 4.2 percent consensus on increasing brand awareness.

The firm is also of the view that drivers exist for sustaining the current same-store sales growth momentum. While noting the recent recapitalization and payment of a special dividend, the firm said it expects it to become a recurring event. Accordingly, the firm estimates a special dividend payout as high as $4.50 per share by the end of 2018.

The company is due to release its third quarter results after the markets close on November 1.

At last check, shares of Wingstop were up 1.25 percent at $28.46.