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Investing.com - BMO Capital raised its price target on Wingstop (NASDAQ:WING) to $345 from $275 on Thursday, while maintaining a Market Perform rating on the stock. The stock has shown remarkable momentum, surging 22.9% in the past week alone, though InvestingPro analysis suggests the stock is currently trading above its Fair Value.
The price target increase follows Wingstop’s second-quarter earnings report, which showed earnings per share of $1.00, exceeding consensus estimates by $0.13. The company’s performance reflected a smaller-than-expected comparable sales decline and restaurant margins that were 180 basis points above expectations. With revenue growth of 31% over the last twelve months and a robust financial health score of "GREAT" according to InvestingPro, the company continues to demonstrate operational strength despite trading at a relatively high P/E ratio of 61.6x.
Wingstop maintained its 2025 comparable sales outlook of approximately 1% and raised its unit growth guidance to 17-18%. The company anticipates positive comparable sales by late in the third quarter, around September.
BMO Capital cited stronger comparable sales and unit growth trajectories as warranting a higher multiple, noting they remain constructive on Wingstop’s long-term fundamentals.
Despite the price target increase, BMO maintained its Market Perform rating, indicating they would seek a more attractive entry point with improving visibility to mid-single-digit percentage comparable sales growth.
In other recent news, Wingstop Inc . reported its second-quarter earnings for 2025, surpassing analyst expectations. The company achieved an adjusted earnings per share (EPS) of $1.00, exceeding the anticipated $0.87. Revenue also outperformed forecasts, reaching $174.3 million compared to the expected $173.41 million. Following these positive results, Stifel adjusted its price target for Wingstop’s stock from $350 to $405, while maintaining a Buy rating. This adjustment comes after Wingstop’s earnings call, where management highlighted several key initiatives contributing to the company’s performance. These developments have been well-received by investors and analysts alike.
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