Wingstop Stock Soars 49% in a Month: Stay Invested or Cash Out?

Wingstop Inc.’s WING shares have soared 49% in a month compared with the industry and the S&P 500’s growth of 3.3% and 10.2%, respectively.As of Wednesday, Wingstop closed at $322.48, standing strong above its 52-week low of $204, though still trailing 52-week high of $433.86. Notably, WING has outshone key industry rivals, including CAVA Group, Inc. CAVA, Brinker International, Inc. EAT and Dutch Bros Inc. BROS.WING Stock’s Price Performance Image Source: Zacks Investment Research Technical indicators suggest a continued strong performance for WING. The stock is trading above its 50-day moving average, signaling robust upward momentum and price stability. This technical strength underscores positive market sentiment and confidence in Wingstop's financial health and prospects.Wingstop’s 50-Day Moving Average Image Source: Zacks Investment Research Factors Favoring WING StockThe company is benefiting from robust expansion efforts. Wingstop is aggressively expanding its global footprint, marked by a record-setting opening of 126 net new restaurants in the first quarter alone. The company has also raised its 2025-unit growth guidance to a range of 16% to 17%, which translates to the addition of approximately 410-435 new locations worldwide over the year.Wingstop’s development momentum is backed by a robust pipeline of more than 2,000 committed restaurant agreements globally, highlighting sustained demand from both domestic and international partners. International markets, in particular, are becoming an increasingly significant growth engine for the brand.A standout example of this global demand was the recent opening of a flagship restaurant in Kuwait. The location quickly set a new benchmark by recording the highest global weekly sales in the company’s history during its first week of operations. This achievement underscores the strong brand resonance and growing appetite for Wingstop's offerings outside the United States.Overall, Wingstop is not just opening more restaurants, it is opening stronger-performing ones, fueled by high levels of pent-up demand. The well-capitalized growth pipeline positions the company for continued global expansion.Wingstop is leveraging AI-powered kitchen technology to modernize its back-of-house operations. This initiative aims to significantly reduce quote times, improve consistency and unlock additional demand, especially during high-traffic periods such as lunch. More than 10% of the company’s system is already operating above its new $3 million average unit volume (“AUV”) target, reinforcing the scalability of this model.On the other hand, management remains focused on achieving $3 million in AUVs and expanding to 10,000 restaurants globally. Current strategies, menu innovation, digital engagement, delivery growth and operational enhancements are tightly aligned with this vision.WING’s Estimate MovementEstimates for WING’s 2025 earnings per share have moved up from $3.66 to $3.89 in the past 30 days. The company’s earnings and sales in 2025 are expected to witness growth of 6.3% and 16.6%, respectively, year over year. Other industry players like CAVA, Brinker and Dutch Bros earnings for the current year are likely to witness growth of 38.1%,113.7% and 24.5%, respectively, year over year.ValuationWING’s forward 12-month price-to-earnings ratio is 74.34, which is significantly higher than the industry’s ratio of 25.88 and the S&P 500's ratio of 21.50. This suggests that investors may be paying a high price relative to the company's expected earnings growth. Image Source: Zacks Investment Research End NotesWingstop's recent surge in share price reflects strong investor confidence driven by its impressive global expansion, operational innovation and consistent execution of the long-term strategy. The brand is not only rapidly increasing its restaurant count but doing so with high-performing locations that resonate deeply with both domestic and international consumers. Wingstop’s use of AI-powered kitchen technology to streamline operations and enhance customer experience signals its readiness to scale efficiently.With solid momentum in digital engagement, delivery and menu innovation, the company is well-positioned to achieve its ambitious growth goals. Despite a premium valuation, Wingstop’s strong fundamentals and strategic vision make it a compelling buy for investors seeking exposure to a high-growth restaurant brand with global ambitions. WING currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Brinker International, Inc. (EAT): Free Stock Analysis Report Wingstop Inc. (WING): Free Stock Analysis Report Dutch Bros Inc. (BROS): Free Stock Analysis Report CAVA Group, Inc. (CAVA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks