- Wedbush analyst Nick Setyan reiterated Outperform rating on the shares of Wingstop Inc (NASDAQ:WING) with a price target of $177.00.
- The analyst continues to view Wingstop’s business model as among the best positioned to sustain market share gains post-COVID on top of what were outsized gains during COVID.
- Despite traffic declines across the industry, WING’s Q3 comp of 6.9% was driven largely by transaction growth, he added.
- Annual pricing is expected to be no more than 1-1.5% going forward as peers raise prices by high-single-digit to low-double-digit.
- He specified that continued growth in digital/ loyalty, the introduction of the chicken sandwich, and outsized YoY growth in national advertising remain transaction drivers through 2023 as well.
- Setyan said food cost deflation remained a meaningful tailwind, as is increasing levels of boneless mix.
- He added that perhaps no metric underlines Wingstop’s uniquely favorable position better than 13% net unit growth in 2022 (surpassing street expectations), even as almost every other restaurant concept lowered unit growth expectations.
- Price Action: WING shares are trading lower by 1.63% at $161.46 on the last check Thursday.
- Photo Via Company
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