Truist Securities increased its price target on Wingstop Inc. to $375 from $365 while maintaining a Buy recommendation, citing the quick-service chicken chain's stronger-than-expected fourth-quarter 2025 performance and constructive forward guidance.
The newly announced target sits well above the prevailing market price of $279.44, implying substantial upside from current levels, even as fair-value metrics mark the shares as overvalued. The firm raised its internal estimates after reviewing results that outperformed expectations for same-store sales and adjusted EBITDA and after management issued optimistic guidance for 2026.
Truist's revised outlook follows a set of company metrics that show an uneven recent trend in comparable-store growth. The chain produced five-year stacked same-store sales growth of 92% through 2024, according to company-provided figures, before posting a 3.3% decline in 2025. Over the trailing twelve months, Wingstop sustained revenue growth of 15.56%, and available financial metrics classify the company's financial score as GOOD.
In response to the quarter, the analyst team increased their estimates. They pointed to specific operational initiatives as drivers of future performance - notably the Smart Kitchen program and a planned Club Wingstop loyalty offering. Truist described the 2026 development guidance as conservative and said that a growing pipeline of restaurant development supports mid-teens percentage growth in unit development for the next few years.
These analyst moves come amid significant recent volatility in the stock. Wingstop shares have declined 25.77% over the last six months despite the quarter's positive surprises. The fourth-quarter earnings release itself outpaced consensus on earnings, even though revenue slightly missed analyst projections. The disparity between stronger earnings and softer revenue drew investor attention and was characterized by the brokerage as evidence of the company's ability to exceed expectations on profitability.
Analysts had expected a range of outcomes heading into the report; actual results tilted toward a positive surprise on earnings while falling short on top-line figures. That mixed result left the company in a favourable light for some investors focused on profitability, while valuation metrics and recent price weakness remain considerations for others.
Contextual note - The reporting and adjustments cited above reflect the statements and metrics disclosed in the company's fourth-quarter 2025 reporting and the subsequent analyst commentary from Truist Securities. The article does not introduce additional external data or projections beyond those disclosed in those releases.