Editor's Note: Below is a brief flashback on our long Wingstop (WING) research calls from our Consuambles team, led by Howard Penney. WING was added as a Best Idea Long on 7/6/22 at $84.38 a share. Today it is at $128.76.

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FLASHBACK | $WING Surges After Earnings  - 2022 07 28 12 03 31

HERE'S WHAT OUR Consumables TEAM WROTE ON (7/6/22)

Wingstop, Inc., with an enterprise value of $2.9 Billion, is a franchisor and operator of restaurants, which engages in cooked-to-order, hand-sauced, and tossed chicken wings. It operates primarily through 1,754 Franchise stores, or 97% of the total store base. The Franchise segment consists of both domestic and international franchise restaurants. The company was founded in 1994 and is headquartered in Addison, TX. We like the setup for WING as a strong Quad 4 name.


WING DEFLATION: The pandemic drove a significant increase in the number of restaurants selling chicken wings driving down supply and driving up the price of wings. Those dynamics are reversing in 2022, and WING should be able to recapture lost margin thru lower food costs in 2H22 and into 2023. In addition, the company is in a unique spot and can lean into value to drive incremental traffic, while others in the industry are taking more price.