0.68%
7.59%
6.28%
-18.22%
8.77%
99.52%
229.59%

Company Description

Wingstop Inc., together with its subsidiaries, franchises and operates restaurants under the Wingstop brand name.Its restaurants offer classic wings, boneless wings, and tenders that are cooked-to-order, and hand-sauced-and-tossed in various flavors.As of December 25, 2021, the company had 1,695 franchised restaurants and 36 company-owned restaurants in 44 states and 7 countries worldwide.


Wingstop Inc.was founded in 1994 and is headquartered in Addison, Texas.

Market Data

Last Price 305.76
Change Percentage 0.68%
Open 303.47
Previous Close 303.7
Market Cap ( Millions) 8932
Volume 498322
Year High 433.86
Year Low 266.44
M A 50 304.62
M A 200 363.5

Financial Ratios

FCF Yield 1.56%
Dividend Yield 0.32%
ROE -22.69%
Debt / Equity -173.80%
Net Debt / EBIDTA 402.15%
Price To Book -20.0
Price Earnings Ratio 88.79
Price To FCF 63.98
Price To sales 15.11
EV / EBITDA 55.8

News

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Royalty, Franchise Fees and Other

Expected Growth : 12 %

What the company do ?

Royalty fees are paid by franchisees to Wingstop Inc. for use of the brand, Franchise fees are initial fees paid by franchisees to acquire the franchise, and Other includes advertising fees and vendor rebates.

Why we expect these perspectives ?

Wingstop's 12% growth in Royalty, Franchise Fees, and Other is driven by increasing same-store sales, unit expansion, and higher average royalty rates. Additionally, the company's strategic initiatives, such as digital transformation and menu innovation, contribute to the growth. Furthermore, the rise of delivery and online ordering also boosts royalty income, while franchisees' investments in restaurant remodels and technology upgrades support franchise fee growth.

Segment nΒ°2 -> Advertising Fees

Expected Growth : 10 %

What the company do ?

Advertising Fees from Wingstop Inc. refers to the costs incurred by the company to promote its brand and products through various advertising channels, including digital, print, and broadcast media.

Why we expect these perspectives ?

Wingstop Inc.'s 10% growth in Advertising Fees is driven by increasing brand awareness, expansion into new markets, and a shift towards digital advertising. Additionally, the company's focus on loyalty programs, online ordering, and delivery services has led to higher advertising spend. Furthermore, Wingstop's franchise model allows for collective advertising efforts, resulting in increased advertising fees.

Segment nΒ°3 -> Company-owned Restaurant

Expected Growth : 18 %

What the company do ?

A company-owned restaurant from Wingstop Inc. is a Wingstop location owned and operated directly by the company, rather than a franchisee.

Why we expect these perspectives ?

Wingstop Inc.'s company-owned restaurant segment growth of 18% is driven by increasing same-store sales, expansion of digital capabilities, and strategic menu pricing. Additionally, the company's focus on operational efficiency, marketing initiatives, and unit growth in high-demand markets contribute to the segment's growth.

Wingstop Inc. Products

Product Range What is it ?
Wings Wingstop's signature product, offering a variety of flavors and sauces to choose from, including Atomic, Mango Habanero, and Lemon Pepper.
Tenders Breaded and cooked to a crispy perfection, our tenders are a great alternative to wings, with the same great flavors and sauces.
Fries Thick-cut and cooked to a crispy perfection, our fries are the perfect side dish to complement our wings and tenders.
Veggie Sticks A healthier alternative to fries, our veggie sticks are a crispy and tasty snack option.
Desserts A sweet treat to finish off your meal, our desserts include options like chocolate chip cookies and brownies.
Combo Meals A convenient and affordable way to get a complete meal, our combo meals include a combination of wings, tenders, fries, and a drink.
Catering Wingstop's catering service offers a variety of options for events and parties, including wings, tenders, and sides.

Wingstop Inc.'s Porter Forces

Wingstop's menu items are highly differentiated, and customers are loyal to the brand. The threat of substitutes is low.

Wingstop's customers have some bargaining power due to the presence of competitors, but the brand's loyalty program and customer retention strategies mitigate this power.

Wingstop has a diversified supplier base, and the company's scale of operations gives it bargaining power over suppliers.

While there are barriers to entry in the fast-casual restaurant industry, new entrants can still pose a threat to Wingstop. However, the company's strong brand recognition and operational efficiency provide a competitive advantage.

The fast-casual restaurant industry is highly competitive, with many established players competing for market share. Wingstop must continually innovate and improve its offerings to maintain its market position.

Capital Structure

Value
Debt Weight 277.73%
Debt Cost 3.95%
Equity Weight -177.73%
Equity Cost 12.10%
WACC -10.54%
Leverage -156.27%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
DRI Darden Restaurants, Inc., through its subsidiaries, owns and operates full-service restaurants in the United States and Canada. As of May 29, 2022, it owned and operated 1,867 restaurants, which included …
EAT Brinker International, Inc., together with its subsidiaries, engages in the ownership, development, operation, and franchising of casual dining restaurants in the United States and internationally. The company operates in two …
WEN The Wendy's Company, together with its subsidiaries, operates as a quick-service restaurant company. It operates through three segments: Wendy's U.S., Wendy's International, and Global Real Estate & Development. The company …
DPZ Domino's Pizza, Inc., through its subsidiaries, operates as a pizza company in the United States and internationally. It operates through three segments: U.S. Stores, International Franchise, and Supply Chain. The …
TXRH Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. The company operates and franchises restaurants under the Texas Roadhouse, Bubba's 33, and …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
47.22$
Current Price
305.76$
Potential
-84.56%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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