Wingstop (WING) Guidance Overestimates Inflation, Upside Possible - BMO Capital

BMO Capital analyst Andrew Strelzik reiterated an Outperform rating and $108.00 price target on Wingstop (NASDAQ: WING) noting that chicken wing inflation has "meaningfully subsided" in recent weeks which supports the company's expectations for its unit growth outlook and suggests guidance may be conservative.

The analyst stated "After hovering around 30% underlying inflation for most of 3Q, chicken wing inflation has nearly been cut in half as inflation has subsided to 16% most recently. Less wing inflation reflects a combination of moving past peak period of wing deflation realized in 2018, and greater availability of chicken wings, which has kept wing prices sequentially flat during the typically
stronger seasonal pricing period of football season".

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 $89.04 yesterday.

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