Can Wingstop Stock Recover If Markets Fall?
Wingstop (WING) stock is down 6.8% in a day. The recent slide reflects renewed concerns around sluggish comparable sales and customer financial pressure, but sharp drops often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the WING story?
Before judging its downturn reslience, let’s look at where Wingstop stands today.
- Size: Wingstop is a $7.3 Bil company with $683 Mil in revenue currently trading at $259.99.
- Fundamentals: Last 12 month revenue growth of 15.6% and operating margin of 26.3%.
- Liquidity: Has Debt to Equity ratio of 0.18 and Cash to Assets ratio of 0.33
- Valuation: Wingstop stock is currently trading at P/E multiple of 41.6 and P/EBIT multiple of 26.9
- Has returned (median) 84.1% within a year following sharp dips since 2010. See WING Dip Buy Analysis.
These metrics point to a Strong operational performance, alongside Very High valuation – making the stock Relatively Expensive. For details, see Buy or Sell WING Stock
That brings us to the key consideration for investors worried about this fall: how resilient is WING stock if markets turn south? This is where our downturn resilience framework comes in. Suppose WING stock falls another 20-30% to $182 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
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2022 Inflation Shock
- WING stock fell 62.6% from a high of $184.75 on 16 September 2021 to $69.05 on 24 May 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 3 April 2023
- Since then, the stock increased to a high of $428.85 on 19 June 2024 , and currently trades at $259.99
| WING | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -62.6% | -25.4% |
| Time to Full Recovery | 314 days | 464 days |
2020 Covid Pandemic
- WING stock fell 51.1% from a high of $101.63 on 18 February 2020 to $49.72 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 14 April 2020
| WING | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -51.1% | -33.9% |
| Time to Full Recovery | 27 days | 148 days |
2018 Correction
- WING stock fell 31.9% from a high of $106.21 on 22 August 2019 to $72.33 on 19 November 2019 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 17 April 2020
| WING | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -31.9% | -19.8% |
| Time to Full Recovery | 150 days | 120 days |
Feeling jittery about WING stock? Consider portfolio approach.
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