Analyst Calls Wingstop Attractive, Sees Multi-Year Opportunity Ahead Of Earnings

Wingstop Can Grow Faster Than Peers

The analyst also noted that a relatively low initial investment for franchised units (around $300,000) along with improving average unit volumes (AUV) and a proven profitability model contributes to the growth story.

While Wingstop is projected to grow its franchise store base by 12 to 15 percent throughout fiscal 2017, the analyst believes this rate is in fact likely conservative. But even at 12 to 15 percent, this represents three times the growth rate of its peers.

In fact, the analyst believes Wingstop has "significant opportunity" to expand in the United States and the company is on track to hit its long-term target of increasing its store count from around 900 today to 2,500.

Outside of the United States, Wingstop faces "significant" potential given its strong performance to date and the acceptance of chicken and sauce/flavor based concepts.