Wingstop Inc. (NASDAQ: WING) shares plummeted by 5% in Friday's intraday trading session, as the fast-casual restaurant chain grapples with slowing growth and an analyst downgrade.
The stock's decline comes after Northcoast Securities downgraded Wingstop to a "neutral" rating from "buy", citing concerns over the company's recent performance and growth prospects. According to the analyst firm, Wingstop's revenue in the latest quarter missed estimates, indicating a slowdown in its business momentum.
Adding to the company's woes, CNBC's Jim Cramer criticized Wingstop's management for not providing sufficient information on the factors behind the slowdown. Cramer, who had previously expressed skepticism about the company's performance, reiterated his concerns, stating, "I think Wingstop is struggling right now... until they give us an explanation about why there's a slowdown, even though they make a lot of money per store, I remain a skeptic."
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