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Actionable news in WING: Wingstop Inc,

Wingstop Seems Able To Fly Through Industry Headwinds

Jefferies reiterated its Buy rating on Wingstop Inc WING 12.36% with a $30 price target, mentioning that the differentiated franchise growth model prevails in tough environment.

The company's reported EPS of $0.15 beat both the Jefferies' and consensus estimates by $0.01 driven by same-store sales of +3.1 percent compared to the analysts' estimate of 2.0 percent offset by lower than expected RLM into higher wing costs and labor investments.

Management raised its revenue guide to $90-91 million, reflecting Q2's beat and slightly higher new unit openings of 130-140 (up from 125-135) as expectations for LSD domestic same-store sales was maintained.

"Our 2H domestic SSS estimates are unchanged at +3.1 percent, but we believe there could be upside as brand awareness and online sales continue to grow. National cable ads to start in early '17," wrote Jefferies.

Jul 2016WedbushInitiates Coverage onOutperform
Apr 2016Cowen & CompanyInitiates Coverage onOutperform
Apr 2016Goldman SachsUpgradesNeutralBuy

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