This Wingstop Analyst Is Turning Bullish: Net Unit Expansion Has 'Plenty Of Runway'

Zinger Key Points
  • Stifel's Chris O'Cull upgraded Wingstop from Hold to Buy, while raising the price target from $180 to $200.
  • Under Michael Skipworth’s leadership, the company is focusing on menu and promotional innovation.

Shares of Wingstop Inc WING have been on an uptrend since the beginning of September.

The Addison, Texas-based company appears poised to “successfully lap difficult comp comparisons” in the back half of 2023, as menu innovation, delivery channel growth, and marketing fund growth fuel incremental usage, according to Stifel.

The Wingstop Analyst: Chris O'Cull upgraded the rating for Wingstop from Hold to Buy, while raising the price target from $180 to $200.

The Wingstop Thesis: Under Michael Skipworth’s leadership, the company is focusing on menu and promotional innovation that can boost guest frequency, O'Cull said in the upgrade note.

Check out other analyst stock ratings.

“The addition of durable incremental sales layers from the launch of the chicken sandwich and the partnership with Uber Eats has only improved the company's already-compelling unit economics,” the analyst wrote. He added that Wingstop’s net unit expansion “has plenty of runway.”

“Increasing scale and rising boneless mix improve long-term food cost visibility,” O'Cull further stated.

WING Price Action: Shares of Wingstop had risen by 2.11% to $177.18 at the time of publication Tuesday.

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Posted In: Analyst ColorNewsUpgradesPrice TargetTop StoriesAnalyst RatingsMoversTrading IdeasChris O'CullExpert IdeasStifel
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