WING - Citi calls a top on Wingstop stock after long rally

2023-05-04 13:27:10 ET

Citi downgraded Wingstop ( NASDAQ: WING ) to a Neutral rating from Buy on Thursday.

Analyst Jon Tower noted a trio of sales drivers continued to win sales and traffic market share for the Wingstop ( WING ) brand throughout Q1 and into Q2 with higher numbers now expected for 2023. The firm continues to have confidence in WING’s ability to win share going forward, although cracks are said to be forming in the U.S. macro backdrop including softer industry sales trends. In addition, Wingstop ( WING ) will face challenging compares starting in late August and low visibility is seen with how the restaurant operator's large cash position may be deployed.

"When married with a valuation (absolute/relative) approaching multi-year highs, we find it difficult to argue for much greater upside in shares over the NTM and therefore move to the sideline."

Shares of Wingstop are up 115% over the last 52 weeks and hit a new 52-week high of $223.77 before tracking back down 4.55% . Wingstop is the 2nd biggest gainer in the restaurant sector after Carrols Restaurant Group ( TAST ) over the last year.

More on Wingstop:

• Check out the earnings report highlights
• Read the latest breakdowns on Wingstop from Seeking Alpha analysts
• View the growth metrics
• See the financial and valuation comparisons to sector peers
• Dig into the Seeking Alpha Quant Rating

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