Wingstop Inc. Common Stock (WING)

FairStock Score: 55/100 — STEADY

Key Financials

Strengths

• Generates $87 million in annual free cash flow (1.8% yield on market cap)

Concerns

• Altman Z-Score of 1.4 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Wingstop Inc. Common Stock is a small-cap consumer cyclical company valued at $5.0 billion. The business generates $709 million in annual revenue with a 3.8% net margin and $87 million in free cash flow. From a quality standpoint, Wingstop shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 1.4 warrants caution. On valuation, the stock is trading at a premium 32.0x earnings, with PEG of 1066.00 implies growth is already in the price. Growth dynamics show revenue growing at 8.6% and profit growth of 0.0%. The 1.0% dividend yield adds an income component for patient holders. Our composite FairStock Score of 55/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $87 million in annual free cash flow (1.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 32x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer