Steadfast Capital Management Adds $148 Million to its Wingstop Stake: Why the Growth Stock's a Buy

On Nov. 14, 2025, Steadfast Capital Management LP disclosed a substantial buy in Wingstop (NASDAQ:WING), increasing its position by 710,621 shares, a net value addition of $158.44 million.

What happened

According to a filing with the Securities and Exchange Commission dated Nov. 14, 2025, Steadfast Capital Management LP increased its stake in Wingstop by 710,621 shares.

The stake’s value rose by $158.44 million over the quarter, bringing the total holding to 950,521 shares valued at $239.23 million as of Sept. 30, 2025.

What else to know

Steadfast executed a buy, bringing its Wingstop stake to 4.2% of its reportable U.S. equity assets

Top holdings after the filing:

1. Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG): $380 million (6.9% of AUM)
2. Amazon (NASDAQ:AMZN): $310 million (5.6% of AUM)
3. TJX Companies(NYSE:TJX): $297 million (5.4% of AUM)
4. Wingstop (NASDAQ:WING): $239 million (4.3% of AUM)
5. Gap, Inc. (NYSE:GAP): $213 million (3.9% of AUM)

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

Company overview

Company snapshot

Wingstop:

• Offers made-to-order classic wings, boneless wings, and tenders, hand-sauced in a variety of proprietary flavors; primary revenue is generated through franchise royalties and company-operated restaurant sales.
• Operates a predominantly franchised business model, earning income from franchise fees, royalties, and direct restaurant operations.
• Targets consumers seeking quick-service, flavorful chicken offerings, with a focus on both domestic and international markets.

Wingstop operates a scalable, asset-light model with a strong franchise base, supporting over 1,700 restaurants across 44 states and 7 countries as of Dec. 25, 2021.

The company leverages a differentiated menu and brand recognition to drive growth in the highly competitive quick-service restaurant sector.

Consistent profitability and a disciplined expansion strategy underpin its competitive positioning within the consumer cyclical space.

Foolish take

After selling roughly half of its Wingstop stake at a profit in Q2, Steadfast made a big bet on the company following its recent 40% drawdown.

Going from 240,000 shares to nearly one million, Wingstop is now Steadfast's fourth-largest position, equaling 4.2% of the firm's portfolio.

While I don't know how long Steadfast will hold their new shares, I really like this investment in Wingstop -- particularly if they hold it for a few years.

Since going public in 2015, Wingstop has been a 10-bagger, even after its recent decline.

The company believes it can still roughly quadruple its store count from 2,500 locations today, so despite these impressive returns, a long growth runway remains ahead.

Furthermore, while same-store sales (SSS) have declined in the last two quarters as the fast casual restaurant industry faced a slowdown in consumer confidence, Wingstop had previously achieved 96 consecutive quarters of SSS growth before its recent declines, demonstrating a strong track record of success.

With numerous new stores set to open and existing stores consistently growing their sales and profitability over time, Wingstop is a powerful growth stock in my opinion.

That said, the stock trades at 59 times forward earnings, so investors may want to consider adding to the stock over time, in small increments.

However, don't let that price tag scare you away. On its way to becoming a 10-bagger over the last decade, Wingstop has averaged a P/E ratio of 96 -- yet delivered market-stomping returns.

Glossary

13F reportable assets: The U.S. equity holdings that institutional investment managers must disclose quarterly to the SEC.

Assets under management (AUM): The total market value of investments managed by a fund or investment firm.

Net position value: The current dollar value of a fund's holdings in a particular security after recent transactions.

Franchise royalties: Ongoing fees paid by franchisees to the parent company, usually based on a percentage of sales.

Franchise fees: Initial or recurring payments made by franchisees for the right to operate under a company's brand.

Asset-light model: A business approach that relies on owning fewer physical assets, reducing capital requirements and risk.

Consumer cyclical: An industry sector whose companies' performance is closely tied to economic cycles and consumer spending.

Quick-service restaurant: A restaurant format emphasizing fast food, limited table service, and quick customer turnover.

Holding: An investment position in a specific security or asset within a portfolio.

TTM: The 12 months ending with the most recent quarterly report.

Market capitalization: The total value of a company's outstanding shares, calculated as share price times shares outstanding.

Reportable U.S. equity assets: U.S. stock holdings that an institutional manager must disclose in regulatory filings.

Josh Kohn-Lindquist has positions in Alphabet and Wingstop. The Motley Fool has positions in and recommends Alphabet, Amazon, and TJX Companies. The Motley Fool recommends Wingstop. The Motley Fool has a disclosure policy.