Citi raises PT on Wingstop on positive customer acquisition trends

Wingstop

04/10/2024 15:28

** Brokerage Citi raises PT of restaurant chain Wingstop
 WING.O  to $440 from $417 on steadily increasing brand
awareness, ahead of co's Q3 results on Oct. 30
    ** Notes growth in digital platform engagements and slightly
slower footfall growth, and suggests co is on the right track
with the "brand funnel" - a model that shows a customer's
journey to brand loyalty
    ** Brokerage Guggenheim forecasts WING's system-wide sales
to grow 35% to 40% in 2024 - fastest pace among peers in its
coverage; maintains "neutral" rating
    ** Guggenheim sees brand continue to post robust comps
driven by new products, tech investments, value price points,
and a rapidly growing marketing fund
    ** Notes WING has coupled low price points with high traffic
in a model that will increasingly be difficult for regional and
independent peers to replicate
    ** 11 of 25 brokerages rate the stock "buy" or higher and 14
   "hold", with a median PT of $425
    ** Up to Thursday's close, stock had risen 61.4% YTD

 (Reporting by Neil J Kanatt in Bengaluru)
 ((Neil.JKanatt@thomsonreuters.com;))