Wingstop's (WING) new AI-powered Smart Kitchen is proving to be a "game changer" for both kitchen operations and customer service as it has led to faster speed of service, improved efficiency, and higher sales, BofA Securities said in a note Wednesday.

The Smart Kitchen system replaces the brand's traditional paper-based operations with a digital interface and touchscreens at each station, supported by artificial intelligence-driven predictive analytics, BofA said.

The system, in development for two years, analyzes hundreds of data points - from sales trends to external factors like weather and sports schedules - to optimize kitchen operations, according to the note.

"The result is not just more efficient operations - quote times average 10 minutes, vs 20 minutes historically - but also improved employee engagement and leading indicators that point to a decline in turnover," BofA said.

Wingstop locations equipped with the Smart Kitchen outperformed others in early 2025, with an 8% rise in customer satisfaction, a 5% increase in order conversion rates, and greater competitiveness on third-party delivery platforms due to faster service, the note said.

BofA raised its price objective for the stock to $360 from $319, and reiterated a buy rating.

Shares of Wingstop were up more than 7% in recent Wednesday trading.

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