Wingstop's (WING) plans going forward have clarity, but questions remain about their effectiveness, Morgan Stanley analysts said in a Thursday note.

Analysts said that while the company's domestic same store sales decline of 8.7% was understood, it was lower than expectations.

Morgan Stanley said that Wingstop's Smart Kitchen system "is working but rather slowly and clearly not stemming customer pullback."

Morgan Stanley said, however, that the stock is around a level where the risk/reward skew is still "compelling."

Analysts retained an overweight rating on the stock, but lowered its price target to $255 from $265.

Shares of the company were down 3.2% in Thursday's trading.

Price: 165.59, Change: -5.63, Percent Change: -3.29