Wingstop Inc. (WING) AI Stock Analysis
WING AI stock analysis summary
AI ResearchWingstop Inc. (NASDAQ: WING) is a franchisor and operator of restaurants specializing in cooked-to-order chicken wings. Over the five years ending FY2025, revenue achieved a 22.9% CAGR, reaching $696.9M. However, the stock fell 46.1% over the past year and operates with negative shareholders' equity of -$773.0M.
- Market cap
- $3.59B
- Revenue (TTM)
- $720.7M
- P/E
- 31.2x fwd 18.2x
- 1Y return
- -46.1% S&P 500 16.8%
- Avg. target
- $192.69 46.3% vs last close
Bull case
- Operating margin reached 29.8% over the trailing twelve months, well above the US-listed Consumer Cyclical peer median of 8.8%.
- Consensus estimates from 26 analysts project next fiscal year EPS growth of 20.3% to $5.32 on revenue of $883.3M.
- Free cash flow stood at $105.6M in FY2025, supporting $221.9M in share buybacks during the year.
Bear case
- The company carries negative shareholders' equity of -$773.0M alongside total debt of $1.27B as of June 30, 2026.
- Shares declined 46.1% over the past year, compared to a 16.8% gain for the S&P 500.
- Valuation remains elevated at a trailing P/E of 31.2x, well above the US-listed Consumer Cyclical peer median of 18.0x.
What Wingstop does
Wingstop Inc. is a franchisor and operator of restaurants under the Wingstop brand, specializing in cooked-to-order classic wings, boneless wings, and tenders hand-sauced-and-tossed in a variety of flavors. Founded in 1994 and based in Addison, Texas, the company operates in the quick-service restaurant industry. As of December 25, 2021, its footprint included 1,695 franchised restaurants and 36 company-owned restaurants across 44 U.S. states and 7 countries globally. Wingstop relies on a franchise model to expand its presence while maintaining operational consistency, introducing new flavors and limited-time offerings to satisfy consumer demand.
Growth and profitability
Wingstop expanded revenue from $282.5M in FY2021 to $696.9M in FY2025, reflecting a 5-year revenue CAGR of 22.9%. Revenue grew 11.4% in FY2025, down from 36.0% in FY2024. Gross margin rose to 82.6% in FY2025 from 48.1% in FY2024, and operating margin improved to 27.6%. Net income reached $174.3M in FY2025, up from $42.7M in FY2021, while diluted EPS was $4.12. In the trailing twelve months ended June 30, 2026, revenue stood at $720.7M with an operating margin of 29.8% and EPS of $4.22. In the quarter ended June 30, 2026, quarterly revenue grew 6.4% year-over-year, and quarterly earnings grew 19.8%.
Balance sheet and cash flow
As of June 30, 2026, Wingstop held $127.5M in cash and short-term investments against $1.27B in total debt, creating net debt of $1.15B. Shareholders' equity was -$773.0M, reflecting negative equity, against total assets of $658.0M. The company's current ratio was 2.97. In FY2025, operating cash flow was $153.1M, supporting capital expenditures of $47.4M and generating $105.6M in free cash flow. Wingstop allocated $221.9M to share buybacks and $32.4M to dividends in FY2025, contributing to a 9.1% reduction in share count over 5 years.
Valuation and performance
At $131.72 per share, Wingstop has a market cap of $3.59B and an enterprise value of $3.81B. WING trades at a trailing P/E of 31.2x and a forward P/E of 18.2x, compared to the median of its US-listed Consumer Cyclical peers of 18.0x and 14.1x, respectively. Its price-to-sales multiple is 5.0x versus the peer median of 0.7x, and its EV/EBITDA is 16.8x compared to the peer median of 11.1x. Over the past year, WING fell 46.1%, while the S&P 500 (SPY) returned 16.8%.
WING dividend
Wingstop pays a quarterly dividend with a forward annual payout of $1.32, equating to a dividend yield of 1.00% as of October 16, 2026. The payout ratio stands at 27.6%, and the company has paid dividends for 11 consecutive years. Its 5-year annualized dividend growth is -26.6%, and the most recent ex-dividend date was August 14, 2026.
What analysts expect
Wall Street coverage includes 19 Strong Buy, 3 Buy, and 6 Hold ratings, with zero Sell or Strong Sell ratings. The mean price target is $192.69, which is 46.3% above the October 16, 2026 closing price of $131.72. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $763.4M and EPS of $4.42, representing 8.4% EPS growth. Wingstop has beaten EPS estimates in each of the last 4 quarters, and its next earnings date is October 28, 2026.
Key risks and what to watch
- Total debt of $1.27B heavily outweighs cash and short-term investments of $127.5M as of June 30, 2026.
- Short interest represents 18.5% of the float, pointing to substantial market skepticism.
- The stock has a beta of 1.81, indicating volatility significantly higher than the broader market.
- Revenue growth slowed to 6.4% year-over-year in the quarter ended June 30, 2026, below its 5-year CAGR of 22.9%.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this WING AI stock analysis
This page is an AI-written research summary of Wingstop Inc. (WING). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: WING income statement, WING balance sheet, WING key metrics, WING analyst forecast, WING chart. See the WING stock overview for the latest quote and news.
WING AI stock analysis FAQ
Does Wingstop pay a dividend?
Yes, Wingstop pays a quarterly dividend totaling $1.32 annually, which corresponds to a 1.00% yield as of October 16, 2026. The dividend has been paid for 11 consecutive years with a payout ratio of 27.6%.
What is Wingstop's debt position?
As of June 30, 2026, Wingstop had $1.27B in total debt and $127.5M in cash, resulting in net debt of $1.15B. The balance sheet reflects negative shareholders' equity of -$773.0M.
What are analysts forecasting for Wingstop?
Analysts have an average price target of $192.69, which is 46.3% above the close of $131.72 on October 16, 2026. For FY2026, consensus estimates call for revenue of $763.4M and EPS of $4.42.
When does Wingstop report its next earnings?
Wingstop's next earnings date is scheduled for October 28, 2026. The company has beaten EPS expectations in all 4 of the prior four quarters.