By Christiana Sciaudone
Investing.com -- Record-high wing prices won't stop Wingstop (NASDAQ:WING).
BTIG upgraded the specialty restaurant group to buy from neutral and set a price target of $175 after a series of calls with franchisees. The firm is confident that domestic development is accelerating despite the cost of chicken and labor shortages striking many industries.
Shares are up 1%.
"While we recognize that same-store sales will moderate over the coming quarters, we believe the brand is retaining much of the average weekly sales gains achieved during the pandemic, generating best in class cash-on-cash returns," said analyst Peter Saleh, according to StreetInsider. We believe sentiment is overly concerned about sales comparisons and near-term commodity challenges, neglecting the company's long-term sales and unit opportunity and the competitive advantages it is establishing on technology, digital ordering, and development."
BTIG's Saleh said the stock is likely poised to breakout to new highs after nearly a year of flat performance despite solid top- and bottom-line performance, StreetInsider reported.
Wingstop saw its best profit and sales ever for the quarter ended in March, according to data compiled by Investing.com.
The stock is up about 85% since the start of the pandemic in March 2020.