What Happened?

Shares of fast-food chain Wingstop (NASDAQ:WING) fell 20.5% in the afternoon session after the company reported third-quarter earnings: Its EPS missed, and its full-year same-store sales guidance of 20% fell slightly short of Wall Street's projections. 

On the other hand, revenue and EBITDA exceeded expectations. Overall, this was a weaker quarter, and with the stock trading north of 80x P/E, the stock was priced for perfection (the market was likely pricing in a "beat and raise" quarter).

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Wingstop? Access our full analysis report here, it’s free.

What The Market Is Telling Us

Wingstop’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. Moves this big are rare for Wingstop and indicate this news significantly impacted the market’s perception of the business.

Wingstop is up 17.2% since the beginning of the year, but at $295.52 per share, it is still trading 31.1% below its 52-week high of $428.85 from June 2024. Investors who bought $1,000 worth of Wingstop’s shares 5 years ago would now be looking at an investment worth $3,478.

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