UPDATE: Loop Capital Starts Wingstop (WING) at Hold, 'Lofty Valuation'

Loop Capital analyst Alton Stump initiates coverage on Wingstop (NASDAQ: WING) with a Hold rating and a price target of $165.00.

The analyst comments "WING’s comps showed no signs of slowing down even as it lapped last year’s pandemic-driven sales boost. WING’s domestic 2-year stacks were up 30.6% in 1Q21, in line with reported results in 4Q20, and more impressively accelerated to 34.0% growth in 2Q despite lapping a full quarter of the pandemic and the fact that most markets did in fact reopen by the end of June. While consumers did start to eat out more often as markets began to re-open, eating out vs. delivery/take-out trends did not return anywhere close to pre-pandemic levels, due in part to a significantly higher percentage of consumers still working from home. Second, a significant portion of new customers captured by Wingstop following the COVID-19 outbreak likely remained with the brand even as markets reopened. Finally, a significant portion of independent competitors were forced to close permanently during 1H21 due to the pandemic."

For an analyst ratings summary and ratings history on Wingstop click here. For more ratings news on Wingstop click here.

Shares of Wingstop closed at $168.84 yesterday.

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