There's been a major selloff in Wingstop Inc. (NASDAQ:WING) shares in the week since it released its full-year report, with the stock down 23% to US$234. Wingstop reported in line with analyst predictions, delivering revenues of US$626m and statutory earnings per share of US$3.70, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Wingstop

Taking into account the latest results, the consensus forecast from Wingstop's 24 analysts is for revenues of US$737.3m in 2025. This reflects a notable 18% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$3.74, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$749.8m and earnings per share (EPS) of US$4.47 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

It might be a surprise to learn that the consensus price target fell 8.2% to US$328, with the analysts clearly linking lower forecast earnings to the performance of the stock price. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Wingstop at US$468 per share, while the most bearish prices it at US$181. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Wingstop's revenue growth is expected to slow, with the forecast 18% annualised growth rate until the end of 2025 being well below the historical 22% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 9.7% per year. So it's pretty clear that, while Wingstop's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Wingstop. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Wingstop's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Wingstop going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Wingstop that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.