Wingstop Is Down 60% in a Year With Negative Equity.
These 3 Boring Asset Heavy Stocks Are Up and Paying You to Wait Quick Read – Investors are shifting from unprofitable growth stocks like Wingstop, which face negative shareholder equity and accelerating same-store sales declines, to asset-heavy infrastructure plays with tangible assets, strong cash generation, and secular tailwinds in refining, freight, and grid power. – The analyst who called NVIDIA in 2010 just named his top 10 stocks and American Electric Power wasn’t one of them
Get them here FREE. Every retail trader on FinTwit is still arguing about Wingstop (NASDAQ:WING) after another headline-grabbing earnings beat and a fresh debate over whether the selloff is finally a buying opportunity. The Wingstop Story Has Cracked Strip away the unit-growth marketing and the picture is grim.
Domestic same-store sales fell 8.7% in Q1, and that decline has gotten worse every quarter for a year: -1.9% to -5.6% to -5.8% to -8.7%. Management just cut full-year guidance to a low-single-digit decline in domestic comps, citing “sustained consumer spending pressure.” The balance sheet tells the rest of the story. Total liabilities of $1.45 billion sit against total assets of $648.89 million, leaving shareholders’ equity at negative $799.17 million.