Wingstop is Friday's IBD Stock Of The Day. It is setting up once again, rebounding from key support and closing in an early entry. Earnings and revenue growth have been picking up in recent quarters.
Meanwhile, several other restaurant chains are in or near buy points, including Chipotle Mexican Grill and McDonald's.
Dallas-based Wingstop has 1,959 locations as of the end of last year, including 1,721 in the U.S. Nearly all are franchised. In Q4, Wingstop opened a net 61 locations.
The wings specialist, focusing on takeout and delivery, has boomed since its 2015 IPO.
In the fourth quarter, Wingstop earnings per share swelled 150% as revenue spiked 46%, both accelerating for a third straight quarter. Analysts expect EPS growth to slow to 3% in 2023 with a 21% gain in 2023.
Wingstop Stock
WING stock rose nearly 3% on Friday to 185.39, rebounding from the 21-day moving average. Shares are in a flat base, part of a base-on-base formation. The official buy point is 193.84. However, investors could use 187.89, just above the April 3 high, as an early entry.
Wingstop stock skyrocketed 186% from its May 2022 low to its Feb. 22 peak. Even from early January, shares vaulted 50%.
WING stock is on the IBD 50.
Other Restaurant Stocks
Chipotle stock rose 1.2% to 1738.30 on Friday. CMG stock has retaken a 124.81 buy point.
Yum Brands, which owns Taco Bell, KFC and Pizza Hut, edged up 0.2% to 134.88. On Thursday, YUM stock rose 2%, clearing a 133.87 flat-base buy point.
Yum China sank 1.1% to 62.98, just dipping back below the 63.16 buy point. It held support at the 21-day line.
MCD stock dipped 9 cents to 288.98 on Friday. Shares rose 2.15% for the week, their fifth straight weekly gain. McDonald's stock is in range of a 281.77 buy point, but is looking a little extended from the 50-day line.
Restaurant Brands International which owns Burger King, Popeye's and Tim Hortons, climbed 0.6% to 67.50, capping a 2.3% weekly gain. Intraday, QSR stock briefly topped a 67.95 cup-with-handle buy point. However, the relative strength line for QSR stock has been lagging since mid-December.
WING stock is ranked No. 2 in the Retail-Restaurants group, behind only Chipotle.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
