Shares of Wingstop Inc (NASDAQ:WING) tanked in early trading on Thursday, after the company reported downbeat first-quarter (Q1) results.

Here are some key analyst insights for the Dallas-based restaurant chain:

  • Stephens analyst Jim Salera maintained an Overweight rating, while slashing the price target from $300 to $225.
  • BTIG analyst Peter Saleh reaffirmed a Buy rating, while cutting the price target from $400 to $305.

Check out other analyst stock ratings.

Stephens: Wingstop's same-store sales declined by 8.7%. That’s much worse than Street expectations of a 5.7% contraction. The company's total revenue of $183.7 million missed the estimate of $188.6 million. Its adjusted earnings of $1.18 per share came in higher than the consensus of $1.03 per share.

Wingstop's adjusted EBITDA grew 9.9% year-on-year to $65.4 million, topping Street expectations of $63.2 million, the analyst stated. "Based on current trends, the company lowered its FY26 domestic comp outlook, which we expect creates near-term hesitancy with investors until WING gets visibility to Smart Kitchen, loyalty, and marketing efforts translating into better traffic," he further wrote.

BTIG: Wingstop reported disappointing sales. The company experienced a significantly higher decline in same-store sales due to poor weather and higher gas prices.

Lower-income consumers are anxious, Saleh said. "While the benefits of Smart Kitchen are starting to emerge across the system, it’s been slower and less meaningful than we had anticipated," he wrote.

Despite these concerns, the analyst highlighted some positives in the quarter, including:

  • Continued mid-teens unit growth
  • Strong pipeline
  • Resilient economic model "that can still deliver 10% adjusted EBITDA growth despite weaker sales"

But the recent quarter could be the trough, he further stated. Benefits include faster menu innovation, order-ready tracker, rewards, and the World Cup provide "some confidence.”

WING Price Action: Shares of Wingstop had declined by 3.45% to $165.30 at the time of publication on Thursday.

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