Palantir shares slip by 7% despite posting record revenue in third quarter
Investing.com - UBS has reduced its price target on Wingstop (NASDAQ:WING) to $295.00 from $385.00 while maintaining a Neutral rating ahead of the company’s third-quarter earnings report scheduled for November 4. The stock, currently trading at $254.32, shows significant volatility with a beta of 1.74. InvestingPro data reveals that 14 analysts have recently revised their earnings estimates downward for the upcoming period.
The firm expects Wingstop to report pressured same-store sales due to difficult comparisons and macroeconomic challenges, with underlying multi-year trends likely slowing. UBS notes that investor expectations generally anticipate third-quarter same-store sales to decline approximately 4-5%, compared to the consensus estimate of a 2.4% decrease. Despite these challenges, the company maintains strong fundamentals with revenue growth of 22.74% in the last twelve months. Get deeper insights into Wingstop’s performance metrics with a comprehensive Pro Research Report, available exclusively on InvestingPro.
UBS believes Wingstop may revise its 2025 same-store sales guidance of approximately 1% to a lower figure. The firm’s price target reduction reflects industry valuation pressure and weaker sales trends that have likely continued into the fourth quarter.
Despite near-term challenges, UBS expects sales trends could begin to improve later in the fourth quarter and into 2026, supported by easier comparisons and several growth initiatives including Smart Kitchen rollout, brand awareness opportunities, and a loyalty program launch.
UBS maintains that Wingstop remains well-positioned to grow average unit volumes faster than the industry over the coming years given its strong brand positioning and multiple sales initiatives, but seeks evidence of a positive inflection in same-store sales trends before becoming more constructive on the shares.
In other recent news, Wingstop Inc. reported its Q2 2025 earnings, revealing a 13.9% increase in system-wide sales, reaching $1.3 billion, and a 12% rise in total revenue to $174.3 million. Despite these positive figures, the company experienced a slight decline of 1.9% in same-store sales domestically. Additionally, Morgan Stanley adjusted its price target for Wingstop from $400 to $372, citing what it described as a "rather tough quarter" for the company. The investment firm, however, maintained its Overweight rating on the stock, suggesting continued confidence despite the challenges. These developments reflect the current market conditions and the company’s performance amid these circumstances.
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