Investors See Opportunity for Profit with Wingstop, Unlike Chipotle Mexican Grill

November 30, 2023

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Investors who are seeking a different opportunity for profit may find promise in Wingstop Inc ($NASDAQ:WING). Unlike Chipotle Mexican Grill, Wingstop offers a unique dining experience that is sure to draw the attention of investors. Wingstop is a fast-casual restaurant chain specializing in cooked-to-order chicken wings, as well as other dishes such as french fries, sandwiches, and tacos. With continued strong performance and a unique product offering, investors may find Wingstop to be an attractive option for potential profits.

Market Price

Investors recently saw a potential opportunity for profit with Wingstop Inc., after the restaurant chain’s stock opened on Tuesday at $239.3 and closed at $238.0, representing a dip of 1.0% from its prior closing price of $240.5. This could be an attractive investment opportunity as Wingstop Inc. has benefited from the increased demand for take-out and delivery services due to the pandemic. Furthermore, its business model is much more profitable than that of Chipotle Mexican Grill’s, as its menu items are lower in price than those of its competitor.

Investors looking to capitalize on an uptick in consumer spending may find Wingstop Inc. a promising option, as the chain is well positioned to benefit from the renewed focus on convenience and safety. Furthermore, its stock is trading at a discounted price relative to competitors like Chipotle Mexican Grill, with significantly less risk and greater potential for capital appreciation. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for Wingstop Inc. More…

    Total Revenues Net Income Net Margin
    437.87 68.96 15.8%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for Wingstop Inc. More…

    Operations Investing Financing
    106.83 -45.55 -155.19
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for Wingstop Inc. More…

    Total Assets Total Liabilities Book Value Per Share
    351.68 827.12 -16.16
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for Wingstop Inc are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    22.4% 25.5% 25.4%
    FCF Margin ROE ROA
    16.8% -16.6% 19.8%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis

    At GoodWhale, we have conducted an analysis of WINGSTOP INC‘s fundamentals and it is classified as a ‘gorilla’ company. This means that it has achieved stable and high revenue or earning growth due to its strong competitive advantage. It is likely that investors interested in such a company are those looking for long-term investments with steady returns, such as dividend investors or those investing for capital appreciation in the long run. Moreover, WINGSTOP INC has a high health score of 8/10, indicating that it is capable of safely riding out any crisis without the risk of bankruptcy due to its strong cashflows and debt management. We also found that WINGSTOP INC is strong in terms of dividend, growth, profitability but scored slightly lower in terms of asset. More…

  • Star Chart Analysis
  • Valuation Analysis




  • Peers

    The competition in the quick-service restaurant industry is heating up. Wingstop Inc, a leading player in the chicken wing segment, is facing increased competition from Wowprime Corp, Various Eateries PLC, and Hostmore PLC. These companies are all vying for a share of the quick-service restaurant market and are each employing different strategies to gain an edge over their competitors. Wingstop Inc is well-positioned to compete against these rivals and maintain its position as a leading player in the industry.

    – Wowprime Corp ($TWSE:2727)

    Wiprime Corp, a 9.14B market cap company as of 2022, is a holding company with a -1.91% ROE. The company invests in a range of businesses including healthcare, education, and technology.

    – Various Eateries PLC ($LSE:VARE)

    Eateries PLC has a market cap of 34.27M as of 2022. The company has a Return on Equity of -5.88%. Eateries PLC is a restaurant company that operates in the United Kingdom.

    – Hostmore PLC ($LSE:MORE)

    Hostmore PLC is a U.K.-based holding company engaged in the operation of hotels. As of 2022, the company had a market capitalization of 22.07 million pounds and a return on equity of 2.42%. The company operates a portfolio of hotels in the United Kingdom, Spain, and Portugal.

    Summary

    Wingstop Inc. (WING) is a publicly traded restaurant chain specializing in chicken wings. Its performance has been strong and its stock has appreciated significantly over the past five years. Its strong revenue and earnings growth have been driven by the increasing demand for chicken wings and its efficient operating model.

    The company’s focus on franchising to drive growth and its solid balance sheet has been key to its success. The stock trades at a premium compared to competitors, but its strong fundamentals make it a good long-term investment opportunity.

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