Investing.com -- William Blair began coverage of Wingstop (NASDAQ:WING) with an Outperform rating, driven by the chain’s consistent sales record, disciplined store model, and room to grow in the U.S. and abroad.
The firm noted Wingstop has reported 21 straight years of same-store sales growth, supported by a menu focused on value and a rising share of digital orders, which reached 69% of total sales in 2024.
Average revenue per restaurant has increased steadily over the past decade, reaching $2.1 million.
Wingstop has kept its store format simple, avoiding costly kitchen equipment and targeting lower-rent real estate.
According to William Blair, these choices have helped new locations break even quickly and generate solid returns for franchise operators.
The company has about 2,400 restaurants in the U.S., but the firm sees capacity for more than 5,000 based on current performance in mature markets like Texas.
Internationally, Wingstop has fewer than 400 restaurants but is aiming for 4,000 in the long term. William Blair believes the company could eventually exceed that goal.
Looking ahead, the firm expects Wingstop to grow revenue in the high teens annually over the next two years and to expand its restaurant base by about 17% each year.
Profit growth is also expected to pick up in the second half of 2025 as comparisons ease.
While the stock trades above its long-term average valuation, William Blair believes earnings expectations could rise further. It cautioned that concentration in key states like Texas and California and rising competition are ongoing risks.
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