Jefferies reiterated its Buy rating on Wingstop Inc WING with a $30 price target, mentioning that the differentiated franchise growth model prevails in tough environment.
The company's reported EPS of $0.15 beat both the Jefferies' and consensus estimates by $0.01 driven by same-store sales of +3.1 percent compared to the analysts' estimate of 2.0 percent offset by lower than expected RLM into higher wing costs and labor investments.
Management raised its revenue guide to $90-91 million, reflecting Q2's beat and slightly higher new unit openings of 130-140 (up from 125-135) as expectations for LSD domestic same-store sales was maintained.
"Our 2H domestic SSS estimates are unchanged at +3.1 percent, but we believe there could be upside as brand awareness and online sales continue to grow. National cable ads to start in early '17," wrote Jefferies.
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