RBC Cuts Wingstop Target to $340, Flags Softer Q1 After 5.8% Same-Store Sales Drop
RBC Capital trimmed Wingstop’s price target by 3% to $340 from $350 and maintained an Outperform rating, citing weaker-than-expected Q1 2026 trends after a 5.8% domestic same-store sales decline in Q4. Wingstop posted $1.3 billion in system-wide sales and 8.6% revenue growth to $175.7 million in Q4 2025.
1. RBC Lowers Price Target
RBC Capital reduced its price target on Wingstop from $350 to $340 while retaining an Outperform rating, highlighting that first-quarter 2026 trends are tracking below initial expectations after underperformance in domestic same-store sales.
2. Q4 2025 Performance Review
In the fourth quarter of 2025, Wingstop generated $1.3 billion in system-wide sales, driving an 8.6% year-over-year revenue increase to $175.7 million, despite a 5.8% decline in U.S. same-store sales partially offset by higher franchise fees and royalties.
3. FY2026 Outlook
Wingstop’s guidance for fiscal 2026 forecasts modest positive same-store sales growth, 15–16% global unit expansion and controlled expenses, underscoring management’s focus on balancing growth with profitability amid evolving consumer trends.