Wingstop Inc.WING
NASDAQ • Consumer Cyclical
$119.21
P/E
29.51
PEG
—
FCF Yield
—
Rev Growth YoY
+7.4% YoY
Gross Margin
82.8%
Health Score
7/10
D/E Ratio
-1.80
Confidence
MEDIUM
Business Snapshot
Wingstop operates in the fast-casual restaurant industry with a nearly 100% franchise business model, generating revenue primarily through royalty fees, advertising contributions, and franchise fees. The company competes in the highly fragmented chicken wing segment as a dominant category-specialist, benefiting from strong brand recognition and a loyal customer base. With trailing twelve-month revenue of $709.48M, Wingstop fits within the mid-cap tier of publicly traded restaurant chains. Its most defining characteristic is a franchise-centric model that supports high gross margins (82.8%) and predictable cash flow from franchise royalties.
Financial Health
Gross margin of 82.8% improved slightly from 82.4% in the prior year, while net margin of 15.8% reflects favourable operating leverage from the royalty-heavy revenue stream. Debt/Equity of -1.8x signals negative shareholders' equity, likely driven by aggressive share buybacks or accumulated deficits, but this is partially offset by a strong current ratio of 3.26x, indicating ample short-term liquidity...
Risk Assessment
- VALUATION — P/E of 29.51x exceeds the sector average of 24x, implying a 23% premium that may not be justified given modest revenue growth and declining earnings.
- DEBT / LIQUIDITY — Debt/Equity of -1.8x indicates negative shareholder equity, a potential red flag despite a healthy current ratio of 3.26x.
- 52-WEEK POSITION — The current price of $119.21 is just 0.02% above the 52-week low of $119.01 and 69.3% below the high of $388.14, reflecting severe downward price momentum.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....