Wingstop (WING) has embarked on an accelerated share repurchase agreement in conjunction with Morgan Stanley and Company. The intent is to repurchase $125 million of common stock in accordance with a $250 million share repurchase program.
On July 1st Wingstop posted $451 million in total assets of which $135 million was represented by intangibles and goodwill. Long-term debt increased to $711 million with the company accumulating a stockholder deficit of $365 million.
WING had a market capitalization of $5,050 million on August 2nd. The 50-day moving average share price is $189 and WING trades with a forward P/E of 85.
On the basis of a same store sales growth of 16.8 percent for Q2 2023 an increase in gross margin to 26.3 percent and an operating margin of 24.0 percent, Benchmark upgraded WING citing “solid” results and setting a target of $200 compared to the August 7th close of $164. We shall see!
Commentary and results for Q2 can be retrieved by entering “wingstop” in the SEARCH block.