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Investing.com - UBS raised its price target on Wingstop (NASDAQ:WING) to $385.00 from $335.00 on Thursday, while maintaining a Neutral rating on the fast-casual restaurant chain. The stock, currently valued at $10.56 billion, has shown remarkable momentum with a 22.9% gain in the past week. According to InvestingPro analysis, the company maintains a GREAT financial health score, though current valuations suggest the stock is trading above its Fair Value.
The price target increase follows Wingstop’s second-quarter results, which showed softer same-store sales trends due to difficult comparisons and consumer weakness, according to UBS.
Wingstop management expects a meaningful improvement in sales trends moving through the second half of the year, with particular strengthening anticipated as comparisons ease in the back half of the third quarter and into the fourth quarter.
The company raised its 2025 global unit growth guidance to 17-18% from the previous 16-17%, and UBS noted positive observations regarding Wingstop’s Smart Kitchen initiative and its benefits.
UBS believes Wingstop remains well-positioned to grow average unit volumes faster than the industry over the coming years, citing strong brand positioning, contribution from multiple sales initiatives, and solid execution.
In other recent news, Wingstop reported its second-quarter earnings for 2025, surpassing expectations with an adjusted earnings per share of $1.00, compared to the forecasted $0.87. The company’s revenue also exceeded projections, reaching $174.3 million against a forecast of $173.41 million. Following these results, several analyst firms have adjusted their outlook on Wingstop. Guggenheim raised its price target for the company to $410, maintaining a Buy rating, citing improved same-store sales and better margins. Stifel also increased its price target to $405, while keeping a Buy rating, after updates on key initiatives from Wingstop’s earnings call. Meanwhile, BMO Capital raised its price target to $345, maintaining a Market Perform rating, noting the company’s better-than-expected restaurant margins. These developments reflect a strong growth outlook for Wingstop, as indicated by analyst firms’ revised estimates and ratings.
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