What Happened?
Shares of fast-food chain Wingstop (NASDAQ: WING) jumped 5.1% in the morning session after Truist analyst Jake Bartlett upgraded the stock from Hold to Buy and raised the price target to $400. The analyst noted that consumer spending seemed to be improving.
After the initial pop the shares cooled down to $337.95, up 4.8% from previous close.
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What The Market Is Telling Us
Wingstop’s shares are quite volatile and have had 15 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 7 months ago when the stock dropped 20.5% on the news that the company reported weak third-quarter 2024 earnings: Its EPS missed, and its full-year same-store sales guidance of 20% fell slightly short of Wall Street's projections.
On the other hand, revenue and EBITDA exceeded expectations. Overall, this was a weaker quarter.
Wingstop is up 15.7% since the beginning of the year, but at $337.95 per share, it is still trading 21.2% below its 52-week high of $428.85 from June 2024. Investors who bought $1,000 worth of Wingstop’s shares 5 years ago would now be looking at an investment worth $2,820.
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