Benchmark reiterates Wingstop stock buy rating, $325 target

Published 14/05/2025, 15:34
Benchmark reiterates Wingstop stock buy rating, $325 target

On Wednesday, Benchmark analyst Todd Brooks maintained a Buy rating on Wingstop shares (NASDAQ:WING) with a price target of $325.00. Currently trading at $299.40, the stock has shown strong momentum with a nearly 6% gain in the past week, despite trading at premium multiples with a P/E ratio of 50. According to InvestingPro data, the company maintains a "GREAT" financial health score, supported by strong revenue growth of 31% over the last twelve months. Brooks’ stance comes in the wake of AMC’s first-quarter results for 2025, which surpassed market expectations in terms of revenue and Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (AEBITDA). Despite a weaker-than-usual box office affecting the overall results, AMC’s management described the quarter as an outlier rather than a sign of enduring issues. They cited a significant recovery in box office figures during April and the start of May. Discover 15 additional valuable insights about Wingstop with an InvestingPro subscription, including detailed analysis of the company’s valuation metrics and growth potential.

AMC’s leadership expressed confidence in a robust rebound for the remainder of 2025 and into 2026. This optimism is underpinned by a strong lineup of upcoming releases and early indicators of a resurgence in consumer interest. Although concerns about liquidity persist, AMC is focusing on enhancing its premium offerings, loyalty programs, and experiential improvements to increase the value gained from each customer. With analyst targets ranging from $181 to $385, Wingstop’s market positioning remains a topic of interest for investors seeking comprehensive analysis through InvestingPro’s detailed research reports.

According to Brooks, investor confidence will likely depend on how quickly the box office returns to normal levels and whether AMC can maintain the positive trends observed in the early second quarter. The company’s strategic emphasis on premium formats and customer engagement initiatives are key factors in its anticipated recovery and long-term growth prospects.

In other recent news, Wingstop has been the focus of multiple analyst reports, highlighting its strategic initiatives and financial outlook. Stifel, BTIG, Jefferies, Truist, and Bernstein have all reiterated their ratings on the company, with price targets ranging from $274 to $350. A significant emphasis has been placed on Wingstop’s Smart Kitchen technology, which is expected to enhance operational efficiency and improve customer experience. This technology aims to reduce order times and boost sales, particularly through delivery and digital orders. Analysts from Stifel and BTIG are optimistic that these innovations will drive same-store sales growth and increase delivery sales, which currently make up 30% of Wingstop’s business. Jefferies has noted strong underlying demand and expects mid-single-digit percentage growth in same-store sales over the next three to five years. Bernstein has highlighted the Smart Kitchen’s role in transaction frequency and repeat business, projecting its full implementation by the end of fiscal year 2025. Truist remains cautious with a Hold rating, acknowledging the technology’s potential to counterbalance economic pressures without altering its current estimates.

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