Wingstop Is Down 68% From Its All-Time High. Should You Buy Before July 29?
Key Points
Wingstop needs to more than triple to return to its all-time high.
With the stock off 43.5% year to date, it’s a risky pre-earnings bet.
- 10 stocks we like better than Wingstop ›
Inflation remains uncomfortably elevated, and that's a drag on an array of consumer discretionary stocks, including Wingstop (NASDAQ: WING).
Ahead of its July 29 earnings report, shares of the fast-casual wing chain are off 43.5% year to date (as of July 23) and would need to more than triple to reclaim the record high. Analysts expect the Texas-based eatery to post earnings per share (EPS) of $1.02 on sales of $190.2 million. Given the stock's weak state, if those estimates are missed or the company offers guidance that's not to investors' satisfaction, more declines could be in store.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
A lot has to go right for Wingstop to rebound. Image source: Getty Images.
This fast-food stock has no margin for error, and a lot needs to go right against a challenging consumer backdrop. That's not lost on Wall Street. On July 23, DA Davidson cut its price target on Wingstop to $200 from $230 while keeping a buy rating.
The new target implies upside of about 48% from the stock's close on that day, but there's some bad news. The research firm pared its second-quarter same-store sales forecast to a decline of 6% from a drop of 4%, citing stress on Wingstop's core lower-income and younger customer base.
For risk-tolerant investors, there may be something to see here. Looking ahead, Wingstop is expanding rapidly, adding new locations across the U.S. Additionally, the stock has some support on Wall Street. Piper Sandler says the stock's now lengthy decline has created a potentially favorable risk/reward scenario. At the same time, Guggenheim believes the shares can nearly double if the company returns to steady same-store sales growth.
Investors willing to take a flier on earnings may want to evaluate Wingstop's commentary around its Smart Kitchens and its Club Wingstop loyalty program. Strength in those areas could contribute to a rebound down the road.
Should you buy stock in Wingstop right now?
Before you buy stock in Wingstop, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Wingstop wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $377,990!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,269,518!*
Now, it’s worth noting Stock Advisor’s total average return is 896% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of July 26, 2026.
Todd Shriber has no position in any of the stocks mentioned. The Motley Fool recommends Wingstop. The Motley Fool has a disclosure policy.
Recommended Articles
