BMO Capital lowers Wingstop stock price target on softer comp outlook

Investing.com - BMO Capital has lowered its price target on Wingstop (NASDAQ:WING) to $280.00 from $345.00 while maintaining a Market Perform rating on the stock. The shares currently trade at $237.32, having fallen over 22% in the past year according to InvestingPro data.

The price target reduction follows Wingstop’s third-quarter 2025 earnings report, which showed earnings per share of $1.09, exceeding the consensus estimate of $0.92. The company’s earnings beat was driven by general and administrative (G&A) favorability and exceptional unit growth, which more than offset softer comparable sales.

Wingstop has revised its 2025 comparable sales outlook downward to a decline of 3-4%, compared to its previous guidance of 1% growth. The company simultaneously raised its unit growth guidance and reduced G&A expense expectations.

BMO Capital noted that Wingstop has visibility into mid-teens unit growth for 2026 based on its current pipeline. The firm lowered its estimates to reflect the softer comparable sales trajectory, which it believes warrants a tempered multiple.

Despite acknowledging Wingstop’s strong long-term fundamentals and several upcoming growth drivers, BMO Capital remains sidelined due to uncertainty surrounding comparable sales performance.

In other recent news, Wingstop Inc . reported strong financial results for the third quarter of 2025, with earnings per share (EPS) surpassing analyst expectations. The company posted an EPS of $1.09, which exceeded the forecasted $0.93, representing a 17.2% surprise. However, the revenue for the quarter was slightly below expectations, coming in at $175.5 million compared to the anticipated $187.37 million. Despite the revenue miss, the company’s shares reacted positively, driven by the better-than-expected earnings and strategic growth initiatives. Analysts had projected different outcomes, but the actual results highlighted the company’s ability to perform above expectations in terms of profitability. Investors are keenly observing these developments as they reflect Wingstop’s financial health and strategic direction. These recent updates provide crucial insights into the company’s quarterly performance and future growth prospects.

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