Melius initiates coverage on Wingstop stock with Hold rating

Investing.com - Melius Research initiated coverage on Wingstop (NASDAQ:WING), currently valued at $9.16 billion, with a Hold rating and a $350.00 price target on Monday. According to InvestingPro analysis, the stock is trading slightly above its Fair Value.

The research firm cited Wingstop’s position as "one of the restaurant industry’s most consistent performers" with "best-in-class unit economics, a streamlined menu, and a highly efficient supply chain." This assessment is supported by the company’s impressive 31% revenue growth over the last twelve months and a "GREAT" financial health score from InvestingPro, which offers 12 additional valuable insights about the stock.

Melius noted that while growth remains strong for the chicken wing chain, the current stock price "fairly reflects the brand’s proven algorithm and long-term EPS trajectory."

The firm identified international expansion and smart kitchen adoption as potential catalysts for future growth and the "next leg of upside" for Wingstop.

Melius concluded that the "risk/reward looks balanced after a period of strong outperformance" for the restaurant chain’s stock.

In other recent news, Wingstop’s financial and strategic developments have drawn attention from several analyst firms. BTIG reiterated its Buy rating and maintained a price target of $430, highlighting Wingstop’s technological investments and international expansion as key growth drivers. Similarly, TD Cowen expressed confidence in Wingstop’s smart kitchen technology, predicting it could boost same-store sales growth to 6% by the end of 2025 and throughout 2026, leading to an increased price target of $440. The firm also revised its same-store sales projections upwards, exceeding previous expectations.

TD Cowen further adjusted Wingstop’s stock price target to $400 from $330, citing strong cash returns and technological advancements as factors supporting the company’s growth. Meanwhile, Wingstop announced changes to its corporate governance structure, including declassifying its Board of Directors and eliminating supermajority voting provisions, effective immediately. These governance amendments were ratified at the 2025 Annual Meeting, where stockholders also approved KPMG LLP as the independent auditor for fiscal year 2025.

Benchmark analyst Todd Brooks maintained a Buy rating on Wingstop with a $325 price target, following positive first-quarter results from another company, AMC. The ongoing developments and strategic focus on technology and governance are seen as pivotal in Wingstop’s growth trajectory.

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