Darsana Capital Partners LP Has $260.12 Million Stake in Wingstop Inc. $WING

Darsana Capital Partners LP raised its stake in Wingstop Inc. (NASDAQ:WING) by 20.0% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 1,500,000 shares of the restaurant operator’s stock after acquiring an additional 250,000 shares during the period. Wingstop comprises about 1.2% of Darsana Capital Partners LP’s investment portfolio, making the stock its 11th largest position. Darsana Capital Partners LP owned 0.06% of Wingstop worth $260,115,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds have also recently bought and sold shares of WING. California State Teachers Retirement System boosted its stake in shares of Wingstop by 16,825.6% in the 2nd quarter. California State Teachers Retirement System now owns 5,475,941 shares of the restaurant operator’s stock valued at $949,583,000 after purchasing an additional 5,443,588 shares in the last quarter. BlackRock Inc. acquired a new stake in shares of Wingstop during the 2nd quarter worth about $481,314,000. Jupiter Topco LLC bought a new position in Wingstop during the 2nd quarter valued at about $147,440,000. Steadfast Capital Management LP lifted its holdings in Wingstop by 296.2% during the 3rd quarter. Steadfast Capital Management LP now owns 950,521 shares of the restaurant operator’s stock valued at $239,227,000 after purchasing an additional 710,621 shares during the last quarter. Finally, Bank of New York Mellon Corp acquired a new position in Wingstop in the second quarter valued at about $80,456,000.

Analyst Ratings Changes

WING has been the topic of several research analyst reports. Morgan Stanley decreased their price objective on shares of Wingstop from $255.00 to $238.00 and set an “overweight” rating on the stock in a research note on Thursday, July 30th. Stephens reissued an “overweight” rating and issued a $200.00 target price on shares of Wingstop in a report on Thursday, July 30th. Mizuho decreased their price target on Wingstop from $280.00 to $240.00 and set an “outperform” rating on the stock in a research report on Friday, July 24th. Citigroup dropped their price target on Wingstop from $237.00 to $208.00 and set a “buy” rating for the company in a report on Thursday, July 30th. Finally, Sanford C. Bernstein downgraded Wingstop from an “outperform” rating to a “market perform” rating and cut their price objective for the company from $220.00 to $155.00 in a research report on Monday, August 3rd. Two research analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $241.81.

Wingstop Trading Up 1.0%

Shares of NASDAQ WING opened at $110.58 on Thursday. Wingstop Inc. has a 1-year low of $105.43 and a 1-year high of $302.80. The company has a 50-day moving average of $129.50 and a two-hundred day moving average of $158.09. The company has a market cap of $3.01 billion, a PE ratio of 26.27, a P/E/G ratio of 1.30 and a beta of 1.79.

Wingstop (NASDAQ:WING) last released its quarterly earnings results on Wednesday, July 29th. The restaurant operator reported $1.18 EPS for the quarter, beating the consensus estimate of $1.02 by $0.16. The business had revenue of $185.56 million for the quarter, compared to analysts’ expectations of $190.25 million. Wingstop had a net margin of 16.15% and a negative return on equity of 16.31%. Wingstop’s revenue was up 6.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.00 earnings per share. As a group, equities research analysts forecast that Wingstop Inc. will post 4.5 earnings per share for the current year.

Wingstop Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Saturday, September 5th. Shareholders of record on Saturday, August 15th were given a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date was Friday, August 14th. This is a positive change from Wingstop’s previous quarterly dividend of $0.30. Wingstop’s dividend payout ratio is 31.35%.

Key Wingstop News

Here are the key news stories impacting Wingstop this week:

• Positive Sentiment: New Wing Pass targets recurring customer visits. Wingstop is launching its first-ever Wing Pass on September 15, offering 18 weekly watch-party bundles for $27.99 to a limited group of 100 members. The promotion could increase order frequency, digital engagement and brand visibility during football season, although its initial financial contribution is likely to be limited. Wingstop Kicks Off Football Season with New Lemon Pepper Trio and Its First-Ever Wing Pass
• Positive Sentiment: New menu products support seasonal traffic. The company is introducing a Lemon Pepper Trio nationwide, adding Lemon Pepper Chili Crunch and Lemon Pepper Chili Glaze to its Original Lemon Pepper offering. Limited-time products and football-focused marketing may help drive comparable sales and customer trial. Wingstop Debuts Lemon Pepper Trio and Season-Long Wing Pass
• Neutral Sentiment: Market-relative performance was favorable, but no new financial data was provided. A Zacks report noted that WING finished the latest session higher even as the overall market weakened. The move appears sentiment-driven rather than tied to new earnings guidance or a material change in fundamentals. Wingstop Rises As Market Takes a Dip: Key Facts
• Negative Sentiment: The promotions do not eliminate valuation and execution risks. WING remains well below its 50-day and 200-day moving averages and close to its 1-year low. Investors will need evidence that the new offerings translate into sustained same-store sales growth; the company’s latest quarter showed revenue growth but revenue below analysts’ expectations.

About Wingstop

Wingstop Inc (NASDAQ: WING) is a fast-casual restaurant chain specializing in chicken wings and related menu items. Founded in 1994 in Garland, Texas, the company has built its brand around bold, chef-inspired wing flavors and a streamlined service model that caters to dine-in, takeout, delivery and catering orders.

The company’s core offerings include both bone-in and boneless chicken wings tossed in a variety of proprietary rubs and sauces, such as Original Hot, Lemon Pepper, and Mango Habanero.