Wingstop (WING) Stock Forecast & Price Target

Wingstop is experiencing robust growth, evidenced by a projected net unit increase of 482 stores in 2025, representing an 18.8% growth rate, alongside maintained development guidance for future years. The company's ability to consistently raise its development guidance demonstrates strong franchisee demand and confidence in unit economics, contributing to an anticipated mid-teens percentage growth in advertising funds for 2026. Furthermore, the franchise model's success, highlighted by industry-leading returns of 70%, underpins a sustainable revenue generation strategy primarily from franchise royalties and advertising fees.

Wingstop has reported its weakest same-store sales in history, with domestic same-store sales declining by 5.6%, which is significantly worse than both estimates and consensus expectations. The brand's revenue outlook is negatively impacted by macroeconomic pressures affecting lower-income consumers, particularly within Hispanic demographics, and increased competition within the fried chicken market. Additionally, the company has revised its growth projections downward for both 2025 and 2026, indicating a challenging path ahead, with same-store sales estimates adjusted to -3.5% and 1.0%, respectively.