By Kit Norton

Wingstop shares have been on a downward trajectory to begin the year, sinking 30%. On Tuesday, however, Citi handed the fast-casual chicken-wing company a bullish upgrade.

The firm upgraded Wingstop to a Buy rating from Neutral and reduced its price target to $230, from $286. Citi said it expects Wingstop's "value-creating engine" and "new store growth" to remain on track and pace well ahead of other global franchise models despite weakness in same-store sales over the last 12 months.

"Shares have been in a tailspin," the firm wrote.

Citi noted that Wingstop stock's 30% decline on the year as of Monday's closing bell has come as investors digest data that suggest another soft top-line earnings report, a potential cut to comparable sales guidance, and "ultimately risk to out-year new store development targets."

However, the firm believes "there's an opportunity over the next several months" for same-store sales to improve, and that the FIFA World Cup could serve as a possible boost.

Wingstop shares fell 0.2% to $164.50 on Tuesday after rising 8% on Monday. The stock is trading around its lowest levels since September 2023.

Wingstop reports first-quarter earnings on April 29. Wall Street expects earnings of $1.05 per share, compared with 99 cents per share a year ago, with revenue growing 11% to $190.4 million, according to FactSet.

Write to Kit Norton at kit.norton@barrons.com

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April 07, 2026 11:25 ET (15:25 GMT)

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