Wells Fargo starts coverage on Wingstop with 'overweight' rating

Brokerage Wells Fargo starts coverage on restaurant chain Wingstop WING.O with "overweight" and PT of $270, citing it as a "best-in-class consumer growth story"

PT represents a 22.7% upside to the stock's last close

Brokerage says WING has a "rare combo" of rapid location growth, a low-risk business model, and high cash flow generation, which makes it an attractive investment opportunity

Expects WING to have a "sharp re-rate potential" as comparables recover, driven by its strong marketing track record and achievable growth targets

Brokerage says it sees "ample reasons for same-store sales to re-accelerate" due to increased brand awareness, more advertising, limited-time offers, and digital growth

Stock fell 39% in the last 12 months