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

Wingstop Inc. (NASDAQ:WING)’s share price gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. 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 trading hands.

The restaurant operator reported $1.00 earnings per share for the quarter, topping analysts’ consensus estimates of $0.84 by $0.16. Wingstop had a net margin of 25.01% and a negative return on equity of 16.12%. The business had revenue of $175.69 million during the quarter, compared to the consensus estimate of $177.74 million. During the same period in the previous year, the firm posted $0.92 earnings per share. Wingstop’s revenue for the quarter was up 8.6% compared to the same quarter last year.

Wingstop Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, March 27th. Stockholders of record on Friday, March 6th will be given a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 0.5%. The ex-dividend date is Friday, March 6th. Wingstop’s dividend payout ratio (DPR) is currently 19.54%.

Trending Headlines about Wingstop

Here are the key news stories impacting Wingstop this week:

• Positive Sentiment: Q4 earnings beat and margin improvement — Wingstop delivered $1.00 EPS vs. $0.84 consensus and reported stronger adjusted EBITDA and margin outcomes that relieved investor fears about profitability. PR Newswire: Q4 Results
• Positive Sentiment: Aggressive unit expansion and international growth — 493 net new openings in 2025 (20% YoY unit growth) and new international markets support long‑term revenue leverage and offset weaker domestic comps. PR Newswire: Openings/Expansion
• Positive Sentiment: Guidance and capital returns underpin outlook — Management gave 2026 targets (low‑single‑digit domestic comps, continued strong unit growth) while maintaining buybacks/dividend, which supports shareholder returns. MarketBeat: Guidance & Capital Return
• Neutral Sentiment: Digital/AI initiatives could help margins but are early — Wingstop highlighted Smart Kitchen and AI tools to speed off‑premise orders and boost digital sales; promising but execution and scale matter. QSR: AI Kitchens & Loyalty
• Negative Sentiment: Domestic same‑store sales weakness — Wingstop reported its first full‑year decline in comps in 22 years and flagged Hispanic and lower‑income customer weakness, a core demand concern for near‑term growth. Barron’s: Comps Decline
• Negative Sentiment: Franchisee performance concerns and a downgrade narrative — Coverage pointed to franchisee execution issues that could pressure operations and margins if not resolved. Seeking Alpha: Franchisee Performance
• Negative Sentiment: Analyst price‑target trims — RBC and Barclays cut targets (RBC 350→340, Barclays 335→330) despite keeping bullish ratings, adding short‑term downward pressure alongside mixed analyst actions; other firms reaffirmed higher targets. The Fly: RBC PT Cut

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on WING shares. BTIG Research reissued a “buy” rating and issued a $400.00 target price on shares of Wingstop in a research note on Thursday. UBS Group reiterated a “neutral” rating and issued a $295.00 price target on shares of Wingstop in a research report on Tuesday, October 28th. Citigroup lifted their price objective on shares of Wingstop from $267.00 to $286.00 and gave the stock a “neutral” rating in a research note on Wednesday, February 4th. Loop Capital began coverage on shares of Wingstop in a report on Friday, January 9th. They set a “buy” rating and a $317.00 price objective for the company. Finally, Wells Fargo & Company lowered their target price on shares of Wingstop from $365.00 to $330.00 and set an “overweight” rating for the company in a research note on Wednesday, November 5th. Four investment analysts have rated the stock with a Strong Buy rating, twenty-three have given a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Wingstop presently has an average rating of “Moderate Buy” and an average price target of $336.07.

Insiders Place Their Bets

In other Wingstop news, Director Kilandigalu Madati sold 269 shares of Wingstop stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $259.97, for a total value of $69,931.93. Following the sale, the director owned 5,283 shares of the company’s stock, valued at $1,373,421.51. This trade represents a 4.85% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Insiders own 0.72% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Mcguire Capital Advisors Inc. acquired a new stake in Wingstop in the 4th quarter valued at approximately $63,000. T. Rowe Price Investment Management Inc. raised its holdings in shares of Wingstop by 6.4% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 1,173,613 shares of the restaurant operator’s stock valued at $279,895,000 after purchasing an additional 70,224 shares during the last quarter. Corient Private Wealth LLC boosted its holdings in Wingstop by 30.5% during the fourth quarter. Corient Private Wealth LLC now owns 2,180 shares of the restaurant operator’s stock worth $520,000 after purchasing an additional 509 shares during the last quarter. Vident Advisory LLC boosted its holdings in Wingstop by 3.9% during the fourth quarter. Vident Advisory LLC now owns 959 shares of the restaurant operator’s stock worth $229,000 after purchasing an additional 36 shares during the last quarter. Finally, Empowered Funds LLC acquired a new position in Wingstop during the fourth quarter worth $76,000.

Wingstop Price Performance

The business’s 50-day moving average is $259.76 and its two-hundred day moving average is $267.94. The firm has a market cap of $7.23 billion, a P/E ratio of 42.07, a P/E/G ratio of 3.51 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.