These Analysts Boost Their Forecasts On Wingstop After Upbeat Q4 Results

Wingstop Inc. WING reported better-than-expected results for its fourth quarter on Wednesday.

The company reported fourth-quarter fiscal 2023 adjusted earnings per share of 64 cents, beating the Wall Street estimate of 57 cents, according to data from Benzinga Pro. Quarterly revenues increased 21.2% to $127.05 million, beating the street view of $119.89 million. System-wide sales increased 24.5% to $965.9 million in the quarter under review.

The company approved a quarterly dividend payable to Wingstop stockholders of 22 cents per share of common stock, resulting in a total dividend of approximately $6.5 million.

"2023 marked the strongest year on record for Wingstop where we achieved 18.3% domestic same store sales growth, driven primarily by transactions, and we delivered an unprecedented 20 consecutive years of domestic same store sales growth," said Michael Skipworth, President and Chief Executive Officer. "The strength of our unit economics were showcased with 255 net new units in 2023, a 13% unit growth rate, and a record level of restaurant development commitments as we enter 2024. We have a proven playbook and I couldn't be more excited by our opportunity to scale Wingstop to more than 7,000 restaurants."

The company expects fiscal 2024 mid-single-digit domestic same-store sales growth, with approximately 270 global net new units. Wingstop projects stock-based compensation expense of approximately $19 million and depreciation and amortization of between $18 million- $19 million.

Wingstop shares fell 4.4% to close at $310.32 on Wednesday.

These analysts made changes to their price targets on Wingstop after the company reported quarterly results.

• TD Cowen raised the price target on Wingstop from $295 to $355. TD Cowen analyst Andrew Charles maintained an Outperform rating.
• Wedbush increased the price target on Wingstop from $330 to $340. Wedbush analyst Nick Setyan maintained an Outperform rating.

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