Wingstop’s stock price has dropped to 52-week lows after reporting fourth-quarter financial results that fell short of investor expectations. Despite a strong year for growth, including 21 consecutive years of same-store sales increases and significant revenue and net income growth, the company’s domestic comps came in lower than anticipated.
The chain opened 349 new restaurants in 2024, boosting its total by nearly 16%, with revenue reaching $626 million and net income rising 55%. These numbers demonstrate the company’s strengths and rising popularity. However, investors had high hopes for a stronger performance, particularly given the stock’s high valuation of over 20 times sales last year.
This pullback provides an opportunity for long-term shareholders to re-evaluate their investment and consider buying back in. Wingstop’s consistent growth track record, including its impressive streak of 21 consecutive years of comps gains, suggests that this is a special company with a strong potential for future growth.
Source: https://www.fool.com/investing/2025/02/19/why-wingstop-stock-plunged-to-a-52-week-low-today