Wingstop Inc "Expect 2Q Pressure; Will Trends Inflect in 2H?" (Neutral) Geiger

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Wingstop Inc "Expect 2Q Pressure; Will Trends Inflect in 2H?" (Neutral) Geiger

Global Research

13 July 2026ab

Wingstop Inc Equities

United StatesExpect 2Q Pressure; Will Trends Inflect in 2H?

Restaurants

12-month rating Neutral

Expect persisting pressure in 2Q, with potential for '26 guidance reduction

For WING's 2Q earnings (7/29), we expect sales trends remained pressured, with a likely 12m price target US$160.00

increasing strategic focus on promotions / value offerings in addition to key strategic top

line initiatives to support a better 2H trajectory. Key investor expectations we've heard

Price (13 Jul 2026) US$154.06

include a reasonably wide range of estimates for 2Q sss of down ~5.5-7.5% (Consensus

down 5.3%), with a more limited benefit from the world cup than many were hoping. RIC: WING.O BBG: WING US

Guidance for '26 is generally expected to be lowered from down LSD% sss (Cons. -

Trading data and key metrics

2.8%), with many anticipating a reduction to either down LSD-MSD% or down MSD%

52-wk range US$377.34-118.96

sss. We believe reduction to guidance is probably prudent for WING shares. Focus is now

on WING's traffic and sales recovery into 2H26 as comparisons ease, with an emphasis Market cap. US$4.27b

on progress against strategic initiatives including Smart Kitchen, loyalty rollout, Shares o/s 27.7m (COM)

marketing, and promotions / value efforts. Despite recent weakness, we believe WING Free float 99%

remains well positioned to grow AUVs (target $3MM) over the coming years given Avg. daily volume ('000) 1,298

strong brand positioning, sales initiatives, and operational improvements, with the LT Avg. daily value (m) US$203.1

growth outlook still compelling. WING's valuation is now closer to historical trough Common s/h equity (12/26E) US$-0.80b