Wingstop Inc. (WING) experienced a 5.29% drop in its stock price during pre-market trading on Thursday, February 20th, 2025. The plummet came despite the company reporting strong fourth-quarter 2024 earnings, with same-store sales growth of 10.1% and a 44% increase in adjusted EBITDA.
However, Wingstop's lower-than-expected guidance for 2025 same-store sales growth, projecting low to mid-single-digit growth, appears to have dampened investor sentiment. Additionally, Barclays lowered its price target on the company to $315 from $359, while maintaining an Overweight rating.
Despite the Q4 performance showcasing the effectiveness of Wingstop's strategies, the combination of the more modest 2025 sales guidance and the analyst's price target revision appears to have contributed to the stock's pre-market plummet. Investors may have reacted negatively to the potential slowdown in growth compared to the robust performance seen in recent years.