Benchmark lowers Wingstop stock price target to $320 on traffic slowdown

Investing.com - Benchmark has reduced its price target on Wingstop (NASDAQ:WING) to $320.00 from $340.00 while maintaining a Buy rating on the restaurant chain’s stock. The new target still represents significant upside from the current price of $248.63, with InvestingPro data showing the stock has fallen 16.24% year-to-date.

The adjustment follows Wingstop’s third-quarter 2025 operating results released Tuesday, which revealed the company is experiencing the industry-wide slowdown in customer traffic, particularly among lower-income, Hispanic, and increasingly middle-income consumers. InvestingPro data shows 17 analysts have revised their earnings downwards for the upcoming period, reflecting these industry challenges.

Wingstop reported domestic same-store sales declined 5.6%, falling short of the consensus estimate of a 3.2% decrease. This resulted in revenue of $175 million, which was $10 million below market expectations. Despite this quarterly setback, the company’s overall revenue growth remains strong at 15.56% for the last twelve months.

Despite the sales shortfall, the company’s restaurant level operating margin of 25.2% exceeded consensus by 170 basis points. Combined with general and administrative spending approximately $7 million lower than anticipated, Wingstop delivered adjusted earnings per share of $1.09 and adjusted EBITDA of $64 million, surpassing consensus estimates of $0.92 and $60 million respectively. InvestingPro analysis indicates the stock is trading at a low PEG ratio of 0.48, suggesting potential undervaluation relative to its growth prospects despite a high P/E of 40.22.

Benchmark remains constructive on Wingstop’s outlook, citing "a litany of company specific sales drivers that the brand will bring to bear in FY26" as the basis for maintaining its Buy rating despite the price target reduction. This aligns with the broader analyst consensus of 1.72 (Buy), with price targets ranging from $185 to $430. For deeper insights and more ProTips on Wingstop’s financial health and growth prospects, check out the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Wingstop Inc . reported its third-quarter 2025 earnings, with an earnings per share (EPS) of $1.09, surpassing the analyst forecast of $0.93. Despite this earnings beat, the company’s revenue slightly missed expectations, totaling $175.5 million compared to the projected $187.37 million. Analysts from several firms have adjusted their price targets for Wingstop following these results. Truist Securities lowered its price target to $365 while maintaining a Buy rating, citing macroeconomic pressures. Similarly, Bernstein reduced its price target to $350 but kept an Outperform rating, highlighting record adjusted EBITDA growth of 18.6% and unit growth of 19.3%, despite a 5.6% decline in same-store sales. Raymond James also lowered its target to $325, maintaining a Strong Buy rating and attributing the adjustment to softer third-quarter results and fourth-quarter guidance. BMO Capital decreased its price target to $280, maintaining a Market Perform rating, noting that the earnings beat was driven by general and administrative favorability and exceptional unit growth, which offset softer comparable sales.

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