First Brands Group debt targeted by Apollo Global Management - report
Investing.com-- Truist cut its price target on Wingstop Inc (NASDAQ:WING) on Wednesday after the restaurant operator’s fourth-quarter revenue and 2025 guidance for same-store sales disappointed.
Truist cut WING’s PT to $290 from $330 and maintained the stock at Hold.
WING clocked weaker-than-expected revenue of $161.8 million for Q4, which was weaker than expectations of $165.1 million.
Same-store sales growth decelerated sharply to 10.1% in Q4 from 20.9% in Q3, while WING also forecast low-to-mid single-digit growth in its domestic same-store sales for 2025- much weaker than the growth trends seen in 2024.
Management highlighted growing challenges for the company in the coming year, including unfavorable weather in the Southeast, the California fires, and a post-election fall in demand in key border markets. Truist said that this kept the near-term outlook largely negative for WING.
“We expect WING’s stock to be range bound until the trajectory of its same-store sales deceleration becomes more clear,” Truist analysts wrote in a note.
But they noted that beyond neater-term trends, there were reasons to be optimistic on the stock, such as the potential for a strong sales recovery later in 2025.
WING- which specializes in buffalo wings- has also benefited from its forays into improved operational efficiency, as well as a growing push into digital marketing over the past year, Truist said.
Still, the brokerage recommended sticking to the sidelines in the near-term to gauge whether the company’s prospects will improve.