Benzinga - by Priya Nigam, Benzinga Staff Writer.
Shares of Wingstop Inc (NASDAQ: 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.
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“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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