I've never eaten at a Wingstop. There is one near my office but I never thought it was a $10> billion company. But PER is at 150x. Chicken wings better than AI chips.
But the company has negative equity and it pays dividends and does buybacks by raising debt. Wingstop has a steadily growing cash flow from franchises and can meet the interest payments. But the stock price is supported by creditors who wouldn't be paid in full if Wingstop can't refinance.
Should I be worried or is Wingstop the next Chipotle success story?
$WING Wingstop negative equity
byu/youraccountingprof inwallstreetbets
Posted by youraccountingprof
24 Comments
I’ve only left one google review in my life and it was about how small Wingstops wings are.
Wingstop is pretty great. Wingstop is like Sonny’s BBQ. Perfectly acceptable quality with McDonald’s like consistency. If you can’t make a better Wing than Wingstop, you don’t deserve to be in business.
Buy puts.
Is wingstop the next success story? Brother, wingstop has crushed bdubs and has double the locations. I’m guessing you must not follow any American sports either because if you know sports , then you know wingstop has taken over.
When do they need to refinance? Will rate cuts from the fed bail them out?
Tried wingstop once. It felt like I was eating bones and skin, absolutely no meat on there whatsoever. I don’t understand why people are willing to pay so much for bones, skin, and flavour… overhyped imo
Wingstop has been making money because of avian flu scare causing chicken wings to rise a few years ago, and they never reduced their prices as their supply equalized.
HOWEVER H5N1 is right around the corner and will have a negative effect on the company (hopefully).
Tyson is fucked too. The stock price is really held up by the amount of institutional ownership causing a bit of a supply side price increase, however I believe it is a total bubble that needs to pop. It will be a long squeeze down back to a respectable PE.
(I’m guessing here)The stock price is also somehow justified because technically Wingstop is listed as a tech company because they have an app and algorithms have a much lower risk tolerance exchanging tech stocks at these levels of PE.
There ya go. Quick and dirty DD and you can fill in the hard numbers for me if you actually give a shit about having a decent post.
Anyone else notice a significant food price increase since Wingstop switched from Olo to their in-house platform?
Looked through some old order confirmation emails at my local Wingstop. Price of 10 wings (traditional, no extra options) increased $2.50 from Sep 2019 to Dec 2023, and $1.80 from Dec 2023 to July 2024.
At least previously, you had significant price increases in cost of chicken wings and labor. But inflation hasn’t been quite as hot recently. The new platform seems to be something that adds value more for them than for me as a customer, so idk why it justifies a big price increase.
Plus some of their stores seem to be in areas that a lot of fast-casual chains wouldn’t locate in. Maybe their customers might be more sensitive to price increases than (say) Chipotle or Cava.
I used to eat wingstop all the time. Then I got food poisoning from a wingstop.
TL;DR: puts
Just tell me when to short it
The most trash fast food I’ve ever ate in my life. They should go bankrupt.
I don’t know what it is but the Hawaiian flavor gives me instant, painful cramp inducing diarrhea and to my knowledge I don’t have any food allergies and nothing else does it to me like that.
I don’t get it either. Have eaten there a few times and it’s always mid at best.
You folks are trying to justify a $10B 150x earnings chicken spot with sales already slowing. But the time you go to short it will be too late
You know how Popeye strategically places their locations in lower income areas? Well Wingstop franchisee owners love to put them in the cheapest location possible. Usually some hole in the wall shopping center extremely out of the way
Wingstop is delicious and the fries have crack in the seasoning there is a reason everyone that works there is like 300lbs
It’s all about the boneless wings.
Calls
Haven’t looked at their fundamentals. But their prices are high, their portions are small and their flavor is meh. And plenty of other places do wings as good or better for the same or cheaper.
Name any other company that debt financed their stock price and had a success story.
I got the shits after eating there. But that happens to me with every meal. So I’m on the fence about investing.
Their wings are vaguely shit but their sides are the bomb. When I die, bury me in cajun corn. If they were closer to my house I’d pay Uber Eats to bring me side dishes from Wingstop when I smoke my own wings.
Wingstop has that free fries deal only bc their fries are literally so overcooked they have the texture of wood
Wingstop is mid
Wingstop is definitely not Chipotle
I went to a wing stop the other day it was 1pm they told me they would be cooking soon….
No insider or hedge fund purchases recently… so not really a bullish signal for me.
Also their wings suck, tbh (Maybe just me)!! I’m just surprised that their market cap is 11B lol
Bullish because Louisiana Rub 8 pc. bone in with a side of fries and ranch just cannot be beaten. Also maybe unpopular opinion but, Wingstop is better than Buffalo Wild Wings in quality by a long shot. Strictly talking wings though