What Happened?
Shares of fast-food chain Wingstop (NASDAQ: WING) jumped 11.7% in the morning session after the company reported third-quarter results that beat profit expectations, driven by strong earnings and continued rapid expansion.
Wingstop's adjusted earnings per share came in at $1.09, surpassing analyst estimates of $0.92. This strong profit performance was also reflected in the company's operating margin, which increased to 27.9% from 24.5% in the same quarter last year. The company continued its aggressive growth, ending the quarter with 2,932 locations, an increase of 474 restaurants from the prior year. The positive results overshadowed some weaker spots in the report, as total revenue of $175.7 million missed Wall Street's expectations and same-store sales decreased by 5.6%. Despite these mixed signals, investors appeared to focus on the robust profitability and expansion efforts.
Is now the time to buy Wingstop? Access our full analysis report here.
What Is The Market Telling Us
Wingstop’s shares are very volatile and have had 21 moves greater than 5% over the last year. But moves this big are rare even for Wingstop and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 22 days ago when the stock gained 3.5% on the news that analysts at RBC Capital initiated coverage on the stock with a 'Buy' rating and a price target of $315. The move from the investment firm reflected a broader positive sentiment, as the consensus rating from 20 analysts covering the stock stood at 'Strong Buy.' This optimism was rooted in the company's solid business performance.
Wingstop is down 17.3% since the beginning of the year, and at $241.46 per share, it is trading 36.7% below its 52-week high of $381.46 from June 2025. Investors who bought $1,000 worth of Wingstop’s shares 5 years ago would now be looking at an investment worth $1,872.
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