Analysts expect Wingstop to report $1.02 EPS and $190.2 million in sales, but weak guidance could pressure shares further.
Wingstop (NASDAQ: WING) shares have fallen 43.5% year-to-date as of July 23, reflecting broader pressure on consumer discretionary stocks amid elevated inflation. The company is set to report second-quarter earnings on July 29, with analysts forecasting $1.02 in earnings per share and $190.2 million in sales.
DA Davidson recently cut its price target on Wingstop to $200 from $230, citing a revised same-store sales forecast of a 6% decline, worse than the previously expected 4% drop. The firm attributed the downgrade to stress on lower-income and younger customers. Despite the bearish outlook, Piper Sandler and Guggenheim see potential upside in the stock’s prolonged decline.
The stock, currently trading well below its all-time high, faces significant downside risk if earnings or guidance disappoint. Expansion plans and Wall Street support may offer some relief, but the company has little margin for error in a challenging consumer environment.