Wingstop upgraded to outperform from neutral at Wedbush

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Wingstop shares jump 8.4% after same-store sales blow past expectations

Wingstop Inc. shares are up 8.4% after the chicken-wing chain reported fiscal first-quarter domestic same-store sales that far exceeded consensus. Net income totaled $6.17 million, or 21 cents per share, compared with $6.3 million, or 21 cents per share, for the same period last year. Adjusted EPS was 25 cents. Revenue totaled $37.4 million, up from $33.4 million last year. The FactSet consensus was for EPS of 20 cents and revenue of $35.6 million. Domestic same-store sales rose 9.5%, blowing past the FactSet consensus 4.8% growth. Chief Executive Charles Morrison said the domestic same-store sales increase was due to transaction growth. “With franchise same-store sales also driven by menu pricing (not quantified), we expect solid same-store sales to continue,” wrote SunTrust Robinson Humphrey analysts. SunTrust rates Wingstop shares buy with a price target of $57, up from $54. Wingstop shares are up 37% for the year so far while the S&P 500 index has fallen 0.3% for the period.

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