This struggling chicken chain is due for a bounce, Citi says
Wingstop is setting stage for a bounce after a recent slump, according to Citi. The bank upgraded the fast food chain to buy from neutral. It also lowered its price target on shares to $230 from $286, though that still implies 39.5% upside from Monday’s close. “WING’s comp flight path … has been turbulent, causing investors to question the brand’s positioning with consumers and ultimately franchisee appetite for new stores,” analyst Jon Tower wrote. “We don’t see an immediate solution for a [same-store sales] rebound, but self-help (e.g., better Smart Kitchen integration) & potential self-help (e.g., product innovation, more call-to-action marketing, greater value messaging) against easing compares is a fairly compelling argument for a [same-store sales] inflection in [the second half of 2026].” Over the past year, Wingstop has seen weaker demand as consumers tighten their purse strings, casting a shadow on its business and stock. The chicken chain in February reported a 5.8% decline in same-store sales for 2025 compared to the year prior. It also forecast flat to low-single-digit sales growth in fiscal 2026, underwhelming investors. Shares have plunged 25% over the past 12 months and 30% in 2026. WING 1Y mountain Wingstop shares have plunged over the past year. However, Wingstop has notched encouraging increases in guest conversions and brand awareness over the same period, while its new store returns remain robust, according to Citi. “New store returns remain near best-in-class (70%+ in ’25) and franchisee profitability remains healthy, supporting the idea that franchisee appetite for new stores … remains high despite the recent [same-store sales] pull-back,” Tower wrote. He added that restaurant-level operating profits and new store openings have jumped roughly 200% over the past 10 years. And while competition among chicken chains has intensified, Wingstop has made strides in growing its footprint and brand awareness across the U.S. “Guest conversion metrics continue to trend in the proper direction through 4Q25 across all major markets, and the brand awareness gap to near-in national chicken competitors [continues] to narrow,” Tower wrote. Citi’s call falls in line with consensus on Wall Street. Of the 31 analysts covering Wingstop, 25 have a buy or strong buy on the stock, per LSEG. Earlier this month, Raymond James and Piper Sandler also upgraded Wingstop.