Wingstop franchises and operates restaurants under the Wingstop name that specialize in cooked-to-order, hand-sauced, and tossed chicken wings. The company was founded in 1994 and is based in Dallas, Texas.
WING Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Wingstop Inc. To summarize, we found that Wingstop Inc ranked in the 14th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Wingstop Inc ended up being:
The compound growth rate in the free cash flow of Wingstop Inc over the past 5.14 years is 0.18%; that's higher than 63.89% of free cash flow generating stocks in the Consumer Cyclical sector.
94% of the company's capital comes from equity, which is greater than 83.24% of stocks in our cash flow based forecasting set.
The business' balance sheet reveals debt to be 6% of the company's capital (with equity being the remaining amount). Approximately merely 16.71% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Wingstop Inc? See CHUY, DIN, ALV, CIDM, and LEVI.
Wingstop, Inc. (WING) Q2 2020 Earnings Conference Call July 29, 2020, 10:00 ET Company Participants Michael Skipworth - EVP & CFO Charles Morrison - Chairman, President & CEO Conference Call Participants David Tarantino - Robert W. Baird & Co. John Glass - Morgan Stanley Jeffrey Farmer - Gordon Haskett Andrew...
Shares of chicken wing restaurant chain Wingstop (NASDAQ: WING) flew higher on Wednesday after the company released results for the second quarter of 2020. Not too surprisingly, Wingstop stock is up 14% as of 2 p.m. EDT, touching all-time highs during the session. Because it franchises a large percentage of restaurants, what it records as revenue greatly differs from systemwide sales.