Wingstop Earns Buy Rating as Analyst Cites Brand Strength and Big Growth Potential

Wingstop (WING, Financials) has received a fresh Buy rating from William Blair analyst Sharon Zackfia, who pointed to the fast-casual chicken chain's strong brand momentum, expanding footprint, and long-term revenue potential; the note highlights 21 consecutive years of same-store sales growtha rare feat in the restaurant industry.

Zackfia credited the company's menu affordability, digital ordering push, and operational simplicity as key drivers behind its average unit volume growth; she believes management's goal of reaching $3 million per store in AUVs within a decade is achievable, thanks to rising brand awareness, steady innovation, and disciplined execution.

Wingstop's lean business model also stood out; the company's low real estate costs and high returns per location make it a compelling expansion story, Zackfia said; domestically, Wingstop could more than double its current unit count, while international markets are largely untapped, offering additional upside.

Zackfia expects revenue to grow at a high-teens percentage annually over the next two years; she also projects strong EBITDA and free cash flow growth, supported by unit expansion. This outlook, combined with the chain's scalable model, underpins her Buy recommendation.

In a separate note dated July 1, BTIG also maintained a Buy rating on the stock, with a price target of $430.