Darsana Capital Opens New $189 Million Wingstop Position: Is the Stock a Buy?

Darsana Capital Partners LP disclosed a new position in Wingstop Inc. on Nov. 14, 2025, adding 750,000 shares for a stake valued at $188.76 million.

What happened

According to a filing with the Securities and Exchange Commission dated Nov. 14, 2025, Darsana Capital Partners initiated a new stake in Wingstop (NASDAQ:WING), acquiring 750,000 shares valued at $188.76 million.

The addition makes Wingstop the fund’s fourteenth disclosed position, with the trade accounting for 4.45% of the $4.25 billion in U.S. equity holdings reported as of Sept. 30, 2025.

What else to know

This is a new position for Darsana, now representing 4.45% of the fund’s 13F AUM.

Top holdings after the filing:

• EchoStar Corp (NASDAQ:SATS): $572.70 million (13.5% of AUM)
• Guidewire Software (NYSE:GWRE): $459.72 million (10.8% of AUM)
• New York Times (NYSE:NYT): $459.20 million (10.8% of AUM)
• HCA Healthcare (NYSE:HCA): $426.20 million (10% of AUM)
• Sotera Health (NASDAQ:SHC): $393.25 million (9.3% of AUM)

As of Nov. 14, 2025, Wingstop shares were priced at $232.89, down 29% over the past year, underperforming the S&P 500 by 44 percentage points.

Wingstop reported trailing twelve-month revenue of $682.98 million and net income of $174.26 million.

The company’s forward price-to-earnings ratio (P/E) is 58, and its enterprise value to EBITDA (EV/EBITDA) is 35.

Wingstop’s dividend yield stands at 0.48%, with shares 40% below their 52-week high.

Company Overview

Company Snapshot

Wingstop:

• Offers cooked-to-order classic wings, boneless wings, and tenders, hand-sauced in a variety of proprietary flavors.
• Operates primarily through a franchise model, generating revenue from franchise fees, royalties, and company-owned restaurant sales.
• Targets consumers seeking quick-service, flavorful chicken options in the U.S. and select international markets.

Wingstop is a leading fast-casual restaurant brand specializing in chicken wings, with a significant presence across the United States and internationally.

The company leverages a highly franchised business model, which supports scalable growth and robust margins.

Wingstop's focus on flavor innovation and operational consistency provides a competitive advantage in the quick-service restaurant segment.

Foolish take

Darsana Capital's purchase of Wingstop is notable to me as a stockholder of the company.

It appears that the firm views Wingstop as a "buy the dip" opportunity, following its stock's 47% drop from its all-time high.

Trading at an average price-to-sales (P/S) ratio of 14 across its publicly traded history, Wingstop now only trades at 9 times sales -- a healthy discount.

That said, this cheaper valuation isn't without merit. Wingstop just recorded two consecutive quarters of decline in same-store sales (SSS) after delivering 96 straight quarters of growth in this category previously.

Ultimately, I don't think this recent slowdown is an indictment of the company, though. Instead, it appears that consumer spending has struggled at the macroeconomic level, and many fast-casual restaurant chains have felt the impact.

From a Foolish perspective (thinking decades ahead), Wingstop still believes it can quadruple its store count. Furthermore, the company is yet to see its oldest stores (from its 2013 openings) reach peak sales.

This combination of store count expansion potential and a lengthy track record of steadily increasing sales at each store over time creates a powerful compounding machine at Wingstop.

While the company's valuation is relatively cheaper than its historical averages, Wingstop still trades at a lofty forward P/E of 58, so interested investors (myself included) might want to buy in smaller batches over time.

Glossary

13F reportable assets under management (AUM): The total U.S. equity holdings a fund must disclose quarterly to the SEC.
Position: The amount of a particular security or investment held by an investor or fund.
Stake: The ownership interest or share in a company or asset.
Top holdings: The largest investments in a fund's portfolio by value.
Trailing twelve-month (TTM): The 12 months ending with the most recent quarterly report.
Forward price-to-earnings ratio: A valuation metric comparing a company's current share price to its expected future earnings per share.
Enterprise value to EBITDA: A ratio comparing a company's total value to its earnings before interest, taxes, depreciation, and amortization.
Dividend yield: Annual dividends per share divided by the share price, expressed as a percentage.
Franchise model: A business structure where independent owners operate locations under a company's brand and system, paying fees and royalties.
Royalties: Ongoing payments made by franchisees to the franchisor based on sales or revenue.
Quick-service restaurant: A restaurant format focused on fast food, limited table service, and quick customer turnover.

Josh Kohn-Lindquist has positions in Wingstop. The Motley Fool has positions in and recommends The New York Times Co. The Motley Fool recommends HCA Healthcare and Wingstop. The Motley Fool has a disclosure policy.