Company: Wingstop, Inc.
Current Rating: Outperform
Price Target: $105
We are upgrading shares of Wingstop to OUTPERFORM from NEUTRAL based on our belief that drivers exist to deliver outperformance relative to current expectations in 2020 and beyond. We expect WING’s January 16th Investor Day to bring many of these drivers, including non-delivery drivers, into focus. Moreover, we view yesterday’s share price weakness due to the announcement of the resignation of COO Kruguer as unwarranted.
- Checks suggest Q4 SSS growth above consensus
- Expect continued growth in delivery/digital to drive mid- to high-single-digit SSS growth in 2020.
- Importantly, structural and company-specific tailwinds exist to sustain multiyear industry leading SSS growth beyond 2020.
- Expect both UL margin and SG&A leverage in 2020.
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This is an excerpt from a research report which was original published on 1/03/2020. Applicable disclosure information is available upon request by contacting the Research Department at (212) 833-1375.