2024-05-13 15:21:08 ET
Summary
- Higher-end fast food and fast-casual restaurant stocks have performed well in the past year, outperforming the market considerably.
- Wingstop is one such stock. The company has produced impressive results as of late and has a strong competitive proposition with its focused menu and delivery market potential.
- That said, the stock appears to be trading at an extremely high valuation, which could cause materially negative returns to current investors, if the multiple contracts.
- We advocate selling now and coming back to the stock once the valuation risks have softened considerably.
- We rate WING a 'Sell'.
In case you haven't been paying attention, it has been a pretty solid 12 months for higher end fast food and fast-casual restaurant stocks.
Whether it's Chipotle ( CMG ), Sweetgreen ( SG ), Cava ( CAVA ), Shake Shack ( SHAK ) or Wingstop ( WING ), the sector has been on fire, and shares in many of these companies have considerably outperformed the market, rallying upwards of 50% over the last four quarters:
...
Read the full article on Seeking Alpha
For further details see:
Wingstop: Sell Today And Walk Away