Wingstop (NASDAQ:WING) Shares Gap Up After Strong Earnings

Wingstop Inc. (NASDAQ:WING) gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $251.78, but opened at $281.00. Wingstop shares last traded at $284.5540, with a volume of 1,272,249 shares changing hands.

The restaurant operator reported $1.00 EPS for the quarter, beating analysts’ consensus estimates of $0.84 by $0.16. Wingstop had a negative return on equity of 16.17% and a net margin of 25.51%.The business had revenue of $175.69 million for the quarter, compared to analysts’ expectations of $177.74 million. During the same quarter in the prior year, the firm earned $0.92 earnings per share. The firm’s revenue was up 8.6% on a year-over-year basis.

Wingstop Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, March 27th. Investors of record on Friday, March 6th will be given a $0.30 dividend. The ex-dividend date is Friday, March 6th. This represents a $1.20 dividend on an annualized basis and a yield of 0.4%. Wingstop’s payout ratio is presently 19.54%.

Wingstop News Roundup

Here are the key news stories impacting Wingstop this week:

• Positive Sentiment: Q4 EPS beat and margin strength — Wingstop reported $1.00 EPS vs. $0.84 expected and showed healthy adjusted EBITDA and margin upside, a primary driver of the rally. Wingstop Inc. Reports Fourth Quarter and Fiscal Year 2025 Financial Results
• Positive Sentiment: Heavy unit growth and international expansion — Wingstop opened 493 net new restaurants in 2025 (roughly 19% unit growth) and plans continued store growth, which management says will help drive systemwide sales and future operating leverage. Wingstop Inc. Reports Fourth Quarter and Fiscal Year 2025 Financial Results
• Positive Sentiment: Shareholder returns and buybacks — Company is returning capital (quarterly dividend announcement and meaningful buybacks that trimmed share count), supporting EPS per share over time.
• Neutral Sentiment: Analyst posture mixed but constructive — Some firms reaffirmed cautious ratings (TD Cowen hold with $285 PT) even as the broader analyst base remains bullish and median targets sit well above current levels. TD Cowen comment / The Fly
• Negative Sentiment: Domestic comps fell — U.S. same-store sales declined (management cited weakness among certain consumer segments), and the company posted its first full-year comp decline in decades — a clear near-term headwind. Wingstop Comparable Sales Fall Amid Consumer Weakness
• Negative Sentiment: Revenue missed estimates modestly and structural risks remain — Q4 revenue was slightly below consensus; financial metrics (negative ROE, leverage/negative equity noted by some analysts) and elevated short interest could cap near-term upside. Investors have WING. Do They Need a Prayer? (MarketBeat)
• Negative Sentiment: Management tone cautious on call — Management acknowledged comp pressure and a cautious consumer environment, tempering the upside case until comps stabilize. Wingstop Earnings Call: Growth Ambition Amid Comp Pressure

Analysts Set New Price Targets

Several analysts have weighed in on WING shares. Benchmark lowered their price target on shares of Wingstop from $340.00 to $320.00 and set a “buy” rating for the company in a research note on Wednesday, November 5th. Citigroup raised their target price on Wingstop from $267.00 to $286.00 and gave the stock a “neutral” rating in a research note on Wednesday, February 4th. Mizuho reduced their price target on Wingstop from $320.00 to $310.00 and set an “outperform” rating on the stock in a report on Friday, January 9th. TD Cowen reaffirmed a “hold” rating and set a $285.00 price target on shares of Wingstop in a research report on Wednesday. Finally, Barclays lifted their price objective on Wingstop from $295.00 to $335.00 and gave the stock an “overweight” rating in a research report on Wednesday, January 7th. Four investment analysts have rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $339.46.

Insider Buying and Selling at Wingstop

In other Wingstop news, Director Kilandigalu Madati sold 269 shares of the firm’s stock in a transaction on Tuesday, November 25th. The stock was sold at an average price of $259.97, for a total transaction of $69,931.93. Following the completion of the transaction, the director owned 5,283 shares of the company’s stock, valued at approximately $1,373,421.51. This trade represents a 4.85% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. 0.72% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the business. Lone Pine Capital LLC bought a new stake in shares of Wingstop in the 3rd quarter worth approximately $375,317,000. Steadfast Capital Management LP raised its stake in Wingstop by 296.2% during the third quarter. Steadfast Capital Management LP now owns 950,521 shares of the restaurant operator’s stock valued at $239,227,000 after buying an additional 710,621 shares during the last quarter. Massachusetts Financial Services Co. MA boosted its holdings in Wingstop by 48.1% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 1,405,894 shares of the restaurant operator’s stock worth $335,292,000 after acquiring an additional 456,861 shares in the last quarter. Capital World Investors grew its stake in shares of Wingstop by 160.6% in the third quarter. Capital World Investors now owns 740,896 shares of the restaurant operator’s stock worth $186,469,000 after acquiring an additional 456,637 shares during the last quarter. Finally, Atreides Management LP purchased a new stake in shares of Wingstop in the fourth quarter worth $93,012,000.

Wingstop Stock Up 10.8%

The firm has a fifty day moving average price of $259.27 and a two-hundred day moving average price of $268.00. The stock has a market capitalization of $7.76 billion, a P/E ratio of 45.45, a P/E/G ratio of 3.16 and a beta of 1.80.

About Wingstop

Wingstop Inc (NASDAQ: WING) is a fast-casual restaurant chain specializing in chicken wings and related menu items. Founded in 1994 in Garland, Texas, the company has built its brand around bold, chef-inspired wing flavors and a streamlined service model that caters to dine-in, takeout, delivery and catering orders.

The company’s core offerings include both bone-in and boneless chicken wings tossed in a variety of proprietary rubs and sauces, such as Original Hot, Lemon Pepper, and Mango Habanero.